Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.10.0.1
Operating Segments
6 Months Ended
Jun. 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, 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.
 
Condensed consolidated segment information for the periods presented is as follows:
 
 
 
Three months ended June 30,
 
(in thousands)
 
2018
 
 
2017
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
Construction
 
$
113,735
 
 
$
96,221
 
Service
 
 
25,796
 
 
 
21,617
 
Total revenue
 
 
139,531
 
 
 
117,838
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
Construction
 
 
9,501
 
 
 
10,979
 
Service
 
 
6,297
 
 
 
4,559
 
Total gross profit
 
 
15,798
 
 
 
15,538
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
Construction
 
 
6,696
 
 
 
5,172
 
Service
 
 
3,345
 
 
 
3,551
 
Corporate
 
 
3,644
 
 
 
4,064
 
Total selling, general and administrative expenses
 
 
13,685
 
 
 
12,787
 
Amortization of intangibles
 
 
336
 
 
 
1,016
 
Operating income
 
$
1,777
 
 
$
1,735
 
 
 
 
 
 
 
 
 
 
Operating income for reportable segments
 
$
1,777
 
 
$
1,735
 
Less unallocated amounts:
 
 
 
 
 
 
 
 
Interest expense, net
 
 
(799
)
 
 
(563
)
Gain (loss) on sale of property and equipment
 
 
24
 
 
 
(99
)
Total unallocated amounts
 
 
(775
)
 
 
(662
)
Total consolidated income before income taxes
 
$
1,002
 
 
$
1,073
 
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
Construction
 
$
704
 
 
$
1,001
 
Service
 
 
192
 
 
 
503
 
Corporate
 
 
531
 
 
 
1,208
 
Total other data
 
$
1,427
 
 
$
2,712
 
   
 
 
Six months ended June 30,
 
(in thousands)
 
2018
 
 
2017
 
Statement of Operations Data:
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
Construction
 
$
210,545
 
 
$
187,686
 
Service
 
 
49,535
 
 
 
45,342
 
Total revenue
 
 
260,080
 
 
 
233,028
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
Construction
 
 
18,772
 
 
 
19,928
 
Service
 
 
10,313
 
 
 
9,378
 
Total gross profit
 
 
29,085
 
 
 
29,306
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
 
Construction
 
 
14,455
 
 
 
12,453
 
Service
 
 
7,471
 
 
 
7,002
 
Corporate
 
 
7,425
 
 
 
7,898
 
Total selling, general and administrative expenses
 
 
29,351
 
 
 
27,353
 
Amortization of intangibles
 
 
671
 
 
 
2,024
 
Operating loss
 
$
(937
)
 
$
(71
)
 
 
 
 
 
 
 
 
 
Operating loss for reportable segments
 
$
(937
)
 
$
(71
)
Less unallocated amounts:
 
 
 
 
 
 
 
 
Interest expense, net
 
 
(1,568
)
 
 
(1,017
)
Gain (loss) on sale of property and equipment
 
 
40
 
 
 
(136
)
Total unallocated amounts
 
 
(1,528
)
 
 
(1,153
)
Total consolidated loss before income taxes
 
$
(2,465
)
 
$
(1,224
)
 
 
 
 
 
 
 
 
 
Other Data:
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
Construction
 
$
1,370
 
 
$
1,979
 
Service
 
 
372
 
 
 
992
 
Corporate
 
 
1,056
 
 
 
2,388
 
Total other data
 
$
2,798
 
 
$
5,359