Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

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Operating Segments
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Operating Segments

11. Operating Segments

 

In accordance with ASC 280, “Segment Reporting”, the Company defines 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 decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (3) for which discrete financial information is available.

 

Our reporting segments are defined as below:

 

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 three uniquely licensed and permitted treatment and storage facilities; and
     
  - research and development (“R&D”) activities to identify, develop and implement innovative waste processing techniques for problematic waste streams. 

 

 

SERVICES SEGMENT, which includes:

 

  - Technical services, which include:

 

  professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
  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;
  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; and
  on-site waste management services to commercial and governmental customers.

 

  - Nuclear services, which include:

 

  technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
  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; logistics; transportation; and emergency response; and

 

  - A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation.

 

MEDICAL SEGMENT reporting includes: R&D costs for the new medical isotope production technology from our majority-owned Polish subsidiary, PF Medical. The Medical Segment has not generated any revenue as it continues to be primarily in the R&D stage. All costs incurred for the Medical Segment are reflected within R&D in the accompanying Consolidated Statements of Operations.

 

Our reporting segments exclude our corporate headquarters and our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.

 

The table below presents certain financial information of our operating segments for the three months ended March 31, 2018 and 2017 (in thousands).

 

Segment Reporting for the Quarter Ended March 31, 2018

 

    Treatment     Services     Medical     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 8,959     $ 3,699           $ 12,658     $     $ 12,658  
Intercompany revenues     213       14             227              
Gross profit     2,780       541             3,321             3,321  
Research and development     114             100       214       18       232  
Interest income                             49       49  
Interest expense           (1 )           (1 )     (52 )     (53 )
Interest expense-financing fees                             (9 )     (9 )
Depreciation and amortization     240       123             363       9       372  
Segment income (loss) before income taxes     1,744       (86 )     (100     1,558       (1,254 )     304  
Income tax expense     (51 )                 (51 )           (51 )
Segment income (loss)     1,693       (86 )     (100 )     1,507       (1,254 )     253  
Expenditures for segment assets     220       25             245       3       248  

 

Segment Reporting for the Quarter Ended March 31, 2017

 

    Treatment     Services     Medical     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 10,034     $ 2,673           $ 12,707     $     $ 12,707  
Intercompany revenues     16       3             19              
Gross profit     2,687       32             2,719             2,719  
Research and development     181             200       381       8       389  
Interest income                             35       35  
Interest expense     (8 )     (1 )           (9 )     (91 )     (100 )
Interest expense-financing fees                             (9 )     (9 )
Depreciation and amortization     1,009       136             1,145       10       1,155  
Segment income (loss) before income taxes     1,602       (707 )     (200 )     695       (1,289 )     (594 )
Income tax expense     (80 )                 (80 )     (1 )     (81 )
Segment income (loss)     1,522       (707 )     (200 )     615       (1,290 )     (675 )
Expenditures for segment assets     15       7             22             22  

 

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