Annual report pursuant to Section 13 and 15(d)

Operating Segments

v3.7.0.1
Operating Segments
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 14 – 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 branches after the allocation of Corporate office operating expenses. 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. For the Successor period from July 20, 2016 through December 31, 2016 and for the Predecessor period from January 1, 2016 through July 19, 2016, the Company had a customer which represented approximately 24% and 11%, respectively, of the Company’s consolidated total revenues. This resulted from a construction project which commenced in early 2016, on which significant activity  began during August 2016. No single customer accounted for more than 10% of total revenues for the Predecessor period from January 1, 2015 through December 31, 2015.
 
The Company does not identify capital expenditures and total assets, including goodwill, 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.
 
Segment information for the periods presented is as follows:
 
 
 
Successor
 
 
Predecessor
 
Predecessor
 
 
 
July 20, 2016
 
 
January 1, 2016
 
January 1, 2015
 
 
 
through
 
 
through
 
through
 
 
 
December 31,
 
 
July 19,
 
December 31,
 
 
 
2016
 
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
$
181,663
 
 
$
183,100
 
$
273,563
 
Service
 
 
43,941
 
 
 
38,291
 
 
57,787
 
Total revenue
 
 
225,604
 
 
 
221,391
 
 
331,350
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
 
17,821
 
 
 
20,300
 
 
32,136
 
Service
 
 
9,356
 
 
 
8,180
 
 
13,276
 
Total gross profit
 
 
27,177
 
 
 
28,480
 
 
45,412
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
 
10,628
 
 
 
11,680
 
 
19,278
 
Service
 
 
5,460
 
 
 
6,302
 
 
9,855
 
Corporate
 
 
8,337
 
 
 
6,033
 
 
8,634
 
Total selling, general and administrative expenses
 
 
24,425
 
 
 
24,015
 
 
37,767
 
Amortization of intangibles
 
 
3,103
 
 
 
 
 
 
Operating income (loss)
 
$
(351)
 
 
 
4,465
 
$
7,645
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income for reportable segments
 
$
(351)
 
 
$
4,465
 
$
7,645
 
Less Unallocated amounts:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
1,796
 
 
 
1,898
 
 
3,200
 
Loss from early extinguishment of debt
 
 
2,172
 
 
 
-
 
 
-
 
(Gain) loss on sale of property and equipment
 
 
250
 
 
 
(1)
 
 
73
 
Total unallocated amounts
 
 
4,218
 
 
 
1,897
 
 
3,273
 
Total consolidated income (loss) before income taxes
 
$
(4,569)
 
 
$
2,568
 
$
4,372
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
 
1,724
 
 
 
953
 
 
1,523
 
Service
 
 
693
 
 
 
333
 
 
572
 
Corporate
 
 
3,339
 
 
 
296
 
 
535
 
Total other data
 
$
5,756
 
 
 
1,582
 
$
2,630