Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.10.0.1
Operating Segments
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 13 – Operating Segments
 
The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company manages and measures the performance of its business in two distinct operating segments: Construction and Service. These segments are reflective of how the Company’s Chief Operating Decision Maker (“CODM”) reviews operating results for the purposes of allocating resources and assessing performance. The Company's CODM is comprised of its Chief Executive Officer, Chief Financial Officer and Chief Operating Officer.
 
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on income from operations of the respective segments after the allocation of Corporate office operating expenses. In accordance with ASC Topic 280 – Segment Reporting, the Company has elected to aggregate all of the construction branches into one Construction reportable segment and all of the service branches into one Service reportable segment. All transactions between segments are eliminated in consolidation. Our Corporate department provides general and administrative support services to our two operating segments. The CODM allocates costs between segments for selling, general and administrative expenses and depreciation expense.
  
All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside the United States. The Company does not identify capital expenditures and total assets by segment in its internal financial reports due in part to the shared use of a centralized fleet of vehicles and specialized equipment. Interest expense is not allocated to segments because of the corporate management of debt service including interest.
 
Condensed consolidated segment information for the periods presented is as follows:
  
 
 
Three months ended September 30,
 
(in thousands)
 
2018
 
 
2017
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
Construction
 
$
109,389
 
 
$
95,779
 
Service
 
 
25,673
 
 
 
25,520
 
Total revenue
 
 
135,062
 
 
 
121,299
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
Construction
 
 
4,967
 
 
 
10,068
 
Service
 
 
5,723
 
 
 
5,342
 
Total gross profit
 
 
10,690
 
 
 
15,410
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
Construction
 
 
7,770
 
 
 
6,394
 
Service
 
 
3,680
 
 
 
3,545
 
Corporate
 
 
1,875
 
 
 
3,670
 
Total selling, general and administrative expenses
 
 
13,325
 
 
 
13,609
 
Amortization of intangibles
 
 
304
 
 
 
807
 
Operating income (loss)
 
$
(2,939
)
 
$
994
 
 
 
 
 
 
 
 
 
 
Operating income (loss) for reportable segments
 
$
(2,939
)
 
$
994
 
Less unallocated amounts:
 
 
 
 
 
 
 
 
Interest expense, net
 
 
(787
)
 
 
(545
)
Gain (loss) on sale of property and equipment
 
 
36
 
 
 
7
 
Total unallocated amounts
 
 
(751
)
 
 
(538
)
Total consolidated income (loss) before income taxes
 
$
(3,690
)
 
$
456
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
Construction
 
$
710
 
 
$
715
 
Service
 
 
185
 
 
 
317
 
Corporate
 
 
523
 
 
 
993
 
Total other data
 
$
1,418
 
 
$
2,025
 
 
 
 
Nine months ended September 30,
 
(in thousands)
 
2018
 
 
2017
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
Construction
 
$
319,934
 
 
$
283,465
 
Service
 
 
75,208
 
 
 
70,862
 
Total revenue
 
 
395,142
 
 
 
354,327
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
Construction
 
 
23,738
 
 
 
29,997
 
Service
 
 
16,037
 
 
 
14,720
 
Total gross profit
 
 
39,775
 
 
 
44,717
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
Construction
 
 
22,780
 
 
 
18,848
 
Service
 
 
11,516
 
 
 
10,547
 
Corporate
 
 
8,380
 
 
 
11,568
 
Total selling, general and administrative expenses
 
 
42,676
 
 
 
40,963
 
Amortization of intangibles
 
 
975
 
 
 
2,831
 
Operating loss
 
$
(3,876
)
 
$
923
 
 
 
 
 
 
 
 
 
 
Operating loss for reportable segments
 
$
(3,876
)
 
$
923
 
Less unallocated amounts:
 
 
 
 
 
 
 
 
Interest expense, net
 
 
(2,355
)
 
 
(1,562
)
Gain (loss) on sale of property and equipment
 
 
76
 
 
 
(130
)
Total unallocated amounts
 
 
(2,279
)
 
 
(1,692
)
Total consolidated loss before income taxes
 
$
(6,155
)
 
$
(769
)
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
Construction
 
$
2,080
 
 
$
2,694
 
Service
 
 
557
 
 
 
1,309
 
Corporate
 
 
1,579
 
 
 
3,380
 
Total other data
 
$
4,216
 
 
$
7,383