Annual report pursuant to Section 13 and 15(d)

Operating Segments

v3.19.1
Operating Segments
12 Months Ended
Dec. 31, 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 Officers.
 
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 18% of consolidated total revenues for the year ended December 31, 2018 and another single Construction segment customer that accounted for approximately 15% of consolidated total revenues for the year ended December 31, 2017.
 
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.
  
Segment information for the periods presented is as follows: 
 
 
 
For the Years Ended
 
 
 
December 31, 2018
 
 
December 31, 2017
 
(in thousands)
 
 
 
 
 
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
Construction
 
$
438,229
 
 
$
391,364
 
Service
 
 
108,297
 
 
 
94,375
 
Total revenue
 
 
546,526
 
 
 
485,739
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
Construction
 
 
36,721
 
 
 
44,790
 
Service
 
 
22,710
 
 
 
20,833
 
Total gross profit
 
 
59,431
 
 
 
65,623
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
Construction
 
 
27,307
 
 
 
25,764
 
Service
 
 
15,003
 
 
 
13,888
 
Corporate
 
 
14,779
 
 
 
16,371
 
Total selling, general and administrative expenses
 
 
57,089
 
 
 
56,023
 
Amortization of intangibles
 
 
1,272
 
 
 
3,582
 
Operating income
 
$
1,070
 
 
$
6,018
 
 
 
 
 
 
 
 
 
 
Operating income for reportable segments
 
$
1,070
 
 
$
6,018
 
Less Unallocated amounts:
 
 
 
 
 
 
 
 
Interest expense
 
 
(3,305
)
 
 
(2,034
)
Loss on debt modification
 
 
(335
)
 
 
-
 
Gain (loss) on sale of property and equipment
 
 
90
 
 
 
(121
)
Total unallocated amounts
 
 
(3,550
)
 
 
(2,155
)
Total consolidated income (loss) before income taxes
 
$
(2,480
)
 
$
3,863
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
Construction
 
$
2,812
 
 
$
3,304
 
Service
 
 
749
 
 
 
1,496
 
Corporate
 
 
2,122
 
 
 
4,318
 
Total other data
 
$
5,683
 
 
$
9,118