Annual report pursuant to Section 13 and 15(d)

Operating Segments

v3.8.0.1
Operating Segments
12 Months Ended
Dec. 31, 2017
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. 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 departments provide 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 of the United States. The Company had a single construction segment customer that accounted for approximately 15% of consolidated total revenues for the year ended December 31, 2017. 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, this same construction segment customer represented approximately 24% and 11%, respectively, of the Company’s consolidated total revenues. This resulted from a construction project which commenced in early 2016, of which the majority of the construction work was completed by the fourth quarter of 2017 with the contract to be closed out by the second quarter of 2018.    
 
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
 
Successor
 
 
Predecessor
 
 
 
January 1, 2017
 
July 20, 2016
 
 
January 1, 2016
 
 
 
through
 
through
 
 
through
 
 
 
December 31,
 
December 31,
 
 
July 19,
 
 
 
2017
 
2016
 
 
2016
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
$
391,364
 
$
181,663
 
 
$
183,100
 
Service
 
 
94,375
 
 
43,941
 
 
 
38,291
 
Total revenue
 
 
485,739
 
 
225,604
 
 
 
221,391
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
 
44,790
 
 
17,821
 
 
 
20,300
 
Service
 
 
20,833
 
 
9,356
 
 
 
8,180
 
Total gross profit
 
 
65,623
 
 
27,177
 
 
 
28,480
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
 
25,764
 
 
10,628
 
 
 
11,680
 
Service
 
 
13,888
 
 
5,460
 
 
 
6,302
 
Corporate
 
 
16,371
 
 
8,337
 
 
 
6,033
 
Total selling, general and administrative expenses
 
 
56,023
 
 
24,425
 
 
 
24,015
 
Amortization of intangibles
 
 
3,582
 
 
3,103
 
 
 
 
Operating income (loss)
 
$
6,018
 
 
(351)
 
 
$
4,465
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) for reportable segments
 
$
6,018
 
$
(351)
 
 
$
4,465
 
Less Unallocated amounts:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
2,034
 
 
1,796
 
 
 
1,898
 
Loss from early extinguishment of debt
 
 
-
 
 
2,172
 
 
 
-
 
(Gain) loss on sale of property and equipment
 
 
121
 
 
250
 
 
 
(1)
 
Total unallocated amounts
 
 
2,155
 
 
4,218
 
 
 
1,897
 
Total consolidated income (loss) before income taxes
 
$
3,863
 
$
(4,569)
 
 
$
2,568
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
 
 
Construction
 
 
3,304
 
 
1,724
 
 
 
953
 
Service
 
 
1,496
 
 
693
 
 
 
333
 
Corporate
 
 
4,318
 
 
3,339
 
 
 
296
 
Total other data
 
$
9,118
 
 
5,756
 
 
$
1,582