Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Operating Segments

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Note 10 - Operating Segments
 9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
10
.
Operating Segments
 
In accordance with ASC 280, “Segment Reporting,” we define an operating segment as a business activity: (a) from which we may earn revenue and incur expenses; (2) whose operating results are regularly reviewed by the Chief Operating Officer (our Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance; and (3) 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 do not generate revenue, our discontinued operations (see Note 9 – “Discontinued Operations”), and PF Medical, a developmental entity whose primary purpose at this time is the R&D and marketing of medical isotope technology used in the medical diagnostic testing and is not generating any revenues (see Note 7 –
“
Perma-Fix Medical S.A. (“PF Medical”)” for further information of this entity).
 
Our reporting segments are defined as below:
 
TREATMENT SEGMENT reporting includes:
 
-
nuclear, low-level radioactive, mixed, hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and
 
-
R&D activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.
 
SERVICES SEGMENT, which includes:
 
-
On-site waste management services to commercial and government customers;
 
-
Technical services, which include:
 
o
professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
 
o
integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos
management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance;
 
o
global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers;
 
-
Nuclear services, which include:
 
o
technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
 
o
remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; site construction; logistics; transportation; and emergency response; and
 
-
A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) of health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation.
 
The table below presents certain financial information of our operating segments as of and for the three and nine months ended September 30, 2015 and 2014 (in thousands).
 
Segment Reporting for the Quarter Ended September 30, 2015
                              
   
Treatment
    
Services
    
Segments
Total
    
Corporate And
Others
(1)
    
Consolidated
Total
  
Revenue from external customers
   $ 10,866     $ 6,443     $ 17,309     $ —     $ 17,309  
Intercompany revenues
     32       7       39       —       —  
Gross profit
    3,696       1,250       4,946       —       4,946  
Interest income
     4       —       4       12       16  
Interest expense
     (1 )     —       (1 )     (123 )     (124 )
Interest expense-financing fees
     —       —       —       (56 )     (56 )
Depreciation and amortization
     729       172       901       11       912  
Segment profit (loss)
     2,681       507       3,188       (1,904 )     1,284  
Expenditures for segment assets
     58       15       73       —       73  
 
Segment Reporting for the Quarter Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Treatment
    
Services
    
Segments
Total
    
Corporate And
Others
(1)
    
Consolidated
Total
  
Revenue from external customers
   $ 12,705     $ 4,200     $ 16,905     $ —     $ 16,905  
Intercompany revenues
     —       19       19       —       —  
Gross profit
    4,943       638       5,581       —       5,581  
Interest income
     —       —       —       7       7  
Interest expense
     (10 )     —       (10 )     (128 )     (138 )
Interest expense-financing fees
     —       —       —       (52 )     (52 )
Depreciation and amortization
     748       213       961       12       973  
Segment profit (loss)
     3,985       10       3,995       (1,651 )     2,344  
Expenditures for segment assets
     3       39       42       —       42  
 
Segment Reporting for the Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Treatment
    
Services
    
Segments
Total
    
Corporate And
Others
(1)
    
Consolidated
Total
  
Revenue from external customers
   $ 31,702     $ 15,562     $ 47,264     $ —     $ 47,264  
Intercompany revenues
     34       22       56       —       —  
Gross profit
     8,265       2,190       10,455       —       10,455  
Interest income
     6       —       6       30       36  
Interest expense
     (34 )     —       (34 )     (356 )     (390 )
Interest expense-financing fees
     —       (2 )     (2 )     (169 )     (171 )
Depreciation and amortization
     2,236       552       2,788       33       2,821  
Segment profit (loss)
     5,124       265       5,389       (5,711 )     (322 )
Expenditures for segment assets
     303       27       330       8       338  
 
Segment Reporting for the Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Treatment
    
Services
    
Segments
Total
    
Corporate And
Others
(1)
    
Consolidated
Total
  
Revenue from external customers
   $ 29,773     $ 10,333     $ 40,106     $ —     $ 40,106  
Intercompany revenues
     —       64       64       —       —  
Gross profit
     6,379       853       7,232       —       7,232  
Interest income
     —       —       —       20       20  
Interest expense
     (35 )     (1 )     (36 )     (469 )     (505 )
Interest expense-financing fees
     —       2       2       (135 )     (133 )
Depreciation and amortization
     2,535       709       3,244       38       3,282  
Segment profit (loss)
     2,977       (1,981 )     996       (4,716 )     (3,720 )
Expenditures for segment assets
     334       41       375       —       375  
 
(
1
)
Amounts reflect the activity for corporate headquarters and PF Medical not included in the segment information.