Annual report pursuant to section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Components of current and deferred federal and state income tax for continuing operations

The components of current and deferred federal and state income tax (benefit) expense for continuing operations for the years ended December 31, consisted of the following (in thousands):

	2013			2012
Federal income tax benefit - current	$	(144	)	$	(2,107	)
Federal income tax (benefit) expense - deferred		(1,989	)		11
State income tax expense - current		158			191
State income tax expense (benefit) - deferred		1,350			(246	)
Total income tax benefit	$	(625	)	$	(2,151	)

Schedule of deferred tax assets and liabilities

We had temporary differences and net operating loss carry forwards from both our continuing and discontinued operations, which gave rise to deferred tax assets and liabilities at December 31, as follows (in thousands):

Deferred tax assets:	2013			2012
Net operating losses	$	6,001		$	4,612
Environmental and closure reserves		2,387			4,740
Impairment of assets		―			505
Investment		(50	)		(59	)
Other		3,626			3,798
Deferred tax liabilities:
Depreciation and amortization		(3,762	)		(6,973	)
Goodwill and indefinite lived intangible assets		(1,012	)		(902	)
Prepaid expenses		(20	)		(16	)
		7,170			5,705
Valuation allowance		(8,182	)		(5,729	)
Net deferred income tax liabilities		(1,012	)		(24	)

Overall reconciliation between the expected tax benefit and the provision for income taxes

An overall reconciliation between the expected tax benefit using the federal statutory rate of 34% and the benefit for income taxes from continuing operations as reported in the accompanying consolidated statement of operations is provided below (in thousands).

	2013			2012
Tax benefit at statutory rate	$	(11,880	)	$	(1,847	)
State tax benefit, net of federal benefit		(102	)		(131	)
Permanent items		166			110
Non-deductible Goodwill		9,471			―
Other		125			(100	)
Reserve for uncertain tax positions		180			―
Increase (decrease) in valuation allowance		1,415			(183	)
Income tax benefit	$	(625	)	$	(2,151	)

Rollforward of unrecognized tax expense

The Company accounts for uncertainties in income taxes pursuant to ASC 740 (formerly FASB interpretation No. 48, “Accounting for Uncertainties in Income Taxes – an Interpretation of FASB Statement No, 109”) (“FIN 48”). A reconciliation of the beginning and ending amount of our unrecognized tax expense is summarized as follows (in thousands):

	2013		2012
Balances at beginning of year	$	―	$	―
Addition related to prior year tax position		180		―
Balances at end of the year	$	180	$	―