Annual report pursuant to section 13 and 15(d)

SEGMENT REPORTING

v2.3.0.11
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2011
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
NOTE 17
SEGMENT REPORTING

In accordance to ASC 280, “Segment Reporting”, we define an operating segment as a business activity:

 
·
from which we may earn revenue and incur expenses;
 
·
whose operating results are regularly reviewed by the Chief Operating Officer to make decisions about resources to be allocated to the segment and assess its performance; and
 
·
for which discrete financial information is available.

We currently have two reporting segments, which are based on a service offering approach.  This however, excludes corporate headquarters, which does not generate revenue, and our discontinued operations, which includes all facilities as discussed in “Note 9 – Discontinued Operations and Divestitures”.

Our reporting segments are defined as follows:

TREATMENT SEGMENT which includes:
 
-
nuclear, low-level radioactive, mixed (waste containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and
 
-
research and development activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

SERVICE SEGMENT which includes:
 
-
On-site waste management services to commercial and government customers;
 
-
Technical services which include:
 
o
health physic and radiological control technician services providing both field support as well as professional technical support to commercial and government customers;
 
o
safety and industrial hygiene services providing field support and professional technical support to commercial and government customers;
 
o
staff augmentation services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field personnel, technical personnel, management and services to commercial and government customers; and
 
o
consulting engineering services (through our Schreiber, Yonley & Associates subsidiary – “SYA”) providing consulting environmental services to industrial and government customers:
 
§
including air, water, and hazardous waste permitting, air, soil and water sampling, compliance reporting, emission reduction strategies, compliance auditing, and various compliance and training activities; and
 
§
engineering and compliance support to other segments.
 
-
A company owned equipment calibration and maintenance laboratory that services, maintains and calibrates health physics and industrial hygiene instrumentation.

The table below shows certain financial information of our reporting segments for 2011, 2010, and 2009 (in thousands).

Segment Reporting as of and for the year ended December 31, 2011

   
Treatment
  
Services
  
Segments Total
  
Corporate And
 Other (2)
  
Consolidated Total
 
Revenue from external customers
 $65,836 (3) $52,774  $118,610  $-  $118,610 
Intercompany revenues
  1,928   585   2,513   ¾   ¾ 
Gross profit
  21,299   7,489   28,788   ¾   28,788 
Interest income
  ¾   ¾   ¾   58   58 
Interest expense
  72   7   79   578   657 
Interest expense-financing fees
  ¾   ¾   ¾   207   207 
Depreciation and amortization
  4,535   337   4,872   89   4,961 
Segment profit (loss)
  13,725   5,885   19,610   (7,810)  11,800 
Segment assets(1)
  81,197   41,819   123,016   41,087 (4)  164,103 
Expenditures for segment assets
  2,278   4   2,282   21   2,303 
Total debt
  142   12   154   18,789 (5)  18,943 

Segment Reporting as of and for the year ended December 31, 2010

   
Treatment
  
Services
  
Segments Total
  Corporate And Other (2)  
Consolidated Total
 
Revenue from external customers
 $53,363 (3) $44,427  $97,790  $-  $97,790 
Intercompany revenues
  2,962   502   3,464   ¾   ¾ 
Gross profit
  12,733   7,882   20,615   ¾   20,615 
Interest income
  ¾   ¾   ¾   65   65 
Interest expense
  138   3   141   614   755 
Interest expense-financing fees
  3   ¾   3   409   412 
Depreciation and amortization
  4,469   39   4,508   22   4,530 
Segment profit (loss)
  4,481   6,131   10,612   (7,341)  3,271 
Segment assets(1)
  91,881   2,570   94,451   30,864 (4)  125,315 
Expenditures for segment assets
  1,601   19   1,620   22   1,642 
Total debt
  1,105   18   1,123   9,126 (5)  10,249 

Segment Reporting as of and for the year ended December 31, 2009

   
Treatment
  
Services
  
Segments Total
  Corporate And Other (2)  
Consolidated Total
 
Revenue from external customers
 $54,785 (3) $37,608  $92,393  $-  $92,393 
Intercompany revenues
  2,349   446   2,795   ¾   ¾ 
Gross profit
  16,670   7,811   24,481   ¾   24,481 
Interest income
  1   ¾   1   144   145 
Interest expense
  640   4   644   995   1,639 
Interest expense-financing fees
  ¾   ¾   ¾   283   283 
Depreciation and amortization
  4,241   40   4,281   40   4,321 
Segment profit (loss)
  7,640   6,911   14,551   (4,864)  9,687 
Segment assets(1)
  93,831   3,612   97,443   28,557 (4)  126,000 
Expenditures for segment assets
  1,421   4   1,425   8   1,433 
Total debt
  1,993   23   2,016   10,264 (5)  12,280 

(1)
Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment.

(2)
Amounts reflect the activity for corporate headquarters, not included in the segment information.

(3)
The consolidated revenues within our Nuclear Treatment and Services Segments include the CH Plateau Remediation Company (“CHPRC”) revenue of $51,136,000 or 49.9%, $51,929,000 or 53.1%, and $45,169,000 or 48.8%, for 2011, 2010, and 2009, respectively, of our total consolidated revenue from continuing operations.  Our M&EC facility was awarded a subcontract by CHPRC, a general contractor to the DOE in the second quarter of 2008.  Operations of this subcontract officially commenced at the DOE Hanford Site on October 1, 2008.  We also have three waste processing contracts with CHPRC.

(4)
Amount includes assets from our discontinued operations of $2,343,000, $7,433,000, and $6,352,000, as of December 31, 2011, 2010, and 2009, respectively.

(5)
Net of debt discount of ($12,000), ($117,000), and (450,000) for 2011 2010, and 2009, respectively, based on the estimated fair value at issuance of two Warrants and 200,000 shares of the Company's Common Stock issued on May 8, 2009 in connection with a $3,000,000 promissory note entered into by the Company and Mr. William Lampson and Mr. Diehl Rettig.  The promissory note and the Warrants were modified on April 18, 2011.  See “Note 10 – Long-Term Debt – Promissory Note and Installment Agreement” for additional information.