Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (Unaudited)
23. Selected Quarterly Financial Data (Unaudited)

In management’s opinion, the summarized quarterly financial data below (in thousands, except per share amounts) contains all appropriate adjustments, all of which are normally recurring adjustments, considered necessary to present fairly our financial position and results of operations for the respective periods.
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Year Ended December 31, 2016:
 
 
 
 
 
 
 
Revenue
$
306,630

 
$
262,147

 
$
229,158

 
$
231,318

Gross profit (1)
35,634

 
54,647

 
44,886

 
32,059

Loss from continuing operations
(28,830
)
 
(106,582
)
 
(32,312
)
 
(26,642
)
Income (loss) from discontinued operations, net of tax
(64,127
)
 
11,036

 
19,652

 
(132
)
Net loss
(92,957
)
 
(95,546
)
 
(12,660
)
 
(26,774
)
Net loss per common share:
 
 
 
 
 
 
 
Basic (2)
$
(2.70
)
 
$
(2.76
)
 
$
(0.37
)
 
$
(0.77
)
Diluted (2)
(2.70
)
 
(2.76
)
 
(0.37
)
 
(0.77
)

 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Year Ended December 31, 2015:
 
 
 
 
 
 
 
Revenue
$
519,820

 
$
460,781

 
$
411,173

 
$
398,711

Gross profit (1)
97,839

 
45,960

 
58,578

 
47,006

Income (loss) from continuing operations
18,545

 
(14,630
)
 
(9,598
)
 
(22,443
)
Income from discontinued operations, net of tax
17,932

 
207

 
18,275

 
18,360

Net income (loss)
36,477

 
(14,423
)
 
8,677

 
(4,083
)
Net income (loss) per common share:
 
 
 
 
 
 
 
Basic (2)
$
1.06

 
$
(0.42
)
 
$
0.25

 
$
(0.12
)
Diluted (2)
1.06

 
(0.42
)
 
0.25

 
(0.12
)
 
(1)
Gross profit is defined as revenue less cost of sales, direct depreciation and amortization expense and direct long-lived asset impairment charges.
(2)
For the periods prior to November 3, 2015, the average number of common shares outstanding used to calculate basic and diluted net income (loss) per common share was based on 34,286,267 shares of our common stock that were distributed by Archrock in the Spin-off on November 3, 2015.

Additional Notes:
•
In conjunction with the planned disposition of Belleli CPE, we recorded impairments of long-lived assets and current assets that totaled $61.6 million and $7.1 million during the first quarter of 2016 and second quarter of 2016, respectively. We completed the sale of Belleli CPE in August 2016 for cash proceeds of $5.5 million. Belleli CPE is reflected as discontinued operations in our financial statements for all periods presented (see Note 3).
•
Due to significant negative evidence of cumulative losses in the U.S., we are no longer able to support that it is more-likely-than-not that we will have sufficient taxable income of the appropriate character in the future that will allow us to realize our U.S. deferred tax assets. As a result, we recorded a full valuation allowance against our U.S. deferred tax assets resulting in additional charges of $88.0 million, $13.6 million and $18.2 million during the second quarter of 2016, third quarter of 2016 and fourth quarter of 2016, respectively (see Note 15).
•
During the second quarter of 2016, third quarter of 2016 and fourth quarter of 2016, we incurred costs of $7.9 million, $12.3 million and $9.9 million, respectively, associated with the restatement of our financial statements and current SEC investigation, of which $11.2 million of cash was recovered from Archrock in the fourth quarter of 2016 pursuant to the separation and distribution agreement (see Note 13).
•
Our Spin-off from Archrock was completed on November 3, 2015. In conjunction with the Spin-off, we incurred approximately $300.0 million of indebtedness under the revolving credit facility and $245.0 million of indebtedness under the term loan facility. Pursuant to the separation and distribution agreement with Archrock and certain of our and Archrock’s respective affiliates, on November 3, 2015, we transferred cash of $532.6 million to Archrock. Prior to the Spin-off, third party debt of Archrock, other than debt attributable to capital leases, was not allocated to us as we were not the legal obligor of the debt and Archrock’s borrowings were not directly attributable to our business (see Note 10).