Annual report pursuant to section 13 and 15(d)

SEGMENT REPORTING

v2.4.0.8
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2012
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
NOTE 16
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, Treatment and Services 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 8 – Discontinued Operations and Divestitures."

The table below shows certain financial information of our reporting segments for 2012, 2011, and 2010 (in thousands).

Segment Reporting as of and for the year ended December 31, 2012

 
  
Treatment
    
Services
    
Segments Total
    
Corporate And Other
  
(2)
  
Consolidated Total
  
Revenue from external customers
  
$
45,882
    
$
81,627
    
$
127,509
(3)
  
$
—
      
$
127,509
  
Intercompany revenues
    
1,785
      
845
      
2,630
      
¾
        
¾
  
Gross profit
    
9,268
      
6,536
      
15,804
      
¾
        
15,804
  
Interest income
    
¾
      
¾
      
¾
      
41
        
41
  
Interest expense
    
9
      
12
      
21
      
797
        
818
  
Interest expense-financing fees
    
¾
      
¾
      
¾
      
107
        
107
  
Depreciation and amortization
    
4,448
      
949
      
5,397
      
73
        
5,470
  
Segment (loss) profit
    
2,951
      
1,474
      
4,425
      
(7,574
)
      
(3,149
)
Segment assets(1)
   
75,405
      
36,120
      
111,525
      
28,166
  
(4)
    
139,691
  
Expenditures for segment assets
    
263
      
145
      
408
      
4
        
412
  
Total debt
    
85
      
5
      
90
      
14,106
  
(5)
    
14,196
  

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
    
$
52,261
    
$
118,097
(3)
  
$
—
      
$
118,097
  
Intercompany revenues
    
1,928
      
585
      
2,513
      
¾
        
¾
  
Gross profit
    
21,299
      
7,121
      
28,420
      
¾
        
28,420
  
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
      
192
      
4,727
      
89
        
4,816
  
Segment profit (loss)
    
10,226
      
3,983
      
14,209
      
(7,810
)
      
6,399
  
Segment assets(1)
   
81,197
      
43,293
      
124,490
      
39,164
  
(4)
    
163,654
  
Expenditures for segment assets
    
2,278
      
4
      
2,282
      
21
        
2,303
  
Total debt
    
142
      
12
      
154
      
17,562
  
(5)
    
17,716
  

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
    
$
44,427
    
$
97,790
(3)
  
$
—
      
$
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)
    
7,715
      
4,508
      
12,223
      
(7,341
)
      
4,882
  
Segment assets(1)
   
91,881
      
2,570
      
94,451
      
31,286
  
(4)
    
125,737
  
Expenditures for segment assets
    
1,601
      
19
      
1,620
      
22
        
1,642
  
Total debt
    
1,105
      
18
      
1,123
      
9,126
  
(5)
    
10,249
  

(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 included the CH Plateau Remediation Company ("CHPRC") revenue of $24,652,000 or 19.3%, $59,136,000 or 50.1%, and $51,929,000 or 53.1%, for 2012, 2011, and 2010, respectively, of our total consolidated revenue from continuing operations. Also, the consolidated revenues included revenues generated directly from the U.S. Department of Energy ("DOE") of $26,265,000 or 20.6%, $4,136,000 or 3.5%, and $0 or 0%, for 2012, 2011, and 2010, respectively, of our total consolidated revenue from continuing operations. The increase in revenues generated directly from the DOE was attributed to the acquisition of SEC on October 31, 2011.

(4)  Amount includes assets from our discontinued operations of $2,113,000, $2,343,000, and $7,433,000, as of December 31, 2012, 2011, and 2010, respectively.

(5)  Net of debt discount of ($0), ($12,000), and (117,000) for 2012, 2011, and 2010, respectively, based on the estimated fair value at issuance of two Warrants and 40,000 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 9 – "Long-Term Debt – Promissory Note and Installment Agreement" for additional information."