| SEGMENT REPORTING |
NOTE 16
SEGMENT REPORTING
In accordance with 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 (our Chief Operating Decision Maker) 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 7 – Discontinued Operations and Divestitures.”
The table below shows certain financial information of our reporting segments for 2013 and 2012 (in thousands).
Segment Reporting as of and for the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
Treatment |
|
|
|
|
Services |
|
|
|
|
Segments
Total
|
|
|
|
|
Corporate
And Other
|
|
|
(2) |
|
Consolidated
Total
|
|
Revenue from external customers |
|
$ |
35,540 |
|
|
|
|
$ |
38,873 |
|
|
|
|
$ |
74,413 |
|
|
(3) |
|
$ |
— |
|
|
|
|
$ |
74,413 |
|
Intercompany revenues |
|
|
1,179 |
|
|
|
|
|
77 |
|
|
|
|
|
1,256 |
|
|
|
|
|
¾ |
|
|
|
|
|
¾ |
|
Gross profit |
|
|
5,574 |
|
|
|
|
|
4,242 |
|
|
|
|
|
9,816 |
|
|
|
|
|
¾ |
|
|
|
|
|
9,816 |
|
Interest income |
|
|
¾ |
|
|
|
|
|
¾ |
|
|
|
|
|
¾ |
|
|
|
|
|
35 |
|
|
|
|
|
35 |
|
Interest expense |
|
|
42 |
|
|
|
|
|
(3 |
) |
|
|
|
|
39 |
|
|
|
|
|
723 |
|
|
|
|
|
762 |
|
Interest expense-financing fees |
|
|
¾ |
|
|
|
|
|
¾ |
|
|
|
|
|
¾ |
|
|
|
|
|
132 |
|
|
|
|
|
132 |
|
Depreciation and amortization |
|
|
3,045 |
|
|
|
|
|
990 |
|
|
|
|
|
4,035 |
|
|
|
|
|
91 |
|
|
|
|
|
4,126 |
|
Segment loss |
|
|
(8,198 |
) |
|
(6) |
|
|
(20,042 |
) |
|
(6) |
|
|
|
(28,240 |
) |
|
|
|
|
(6,231 |
) |
|
|
|
|
(34,471 |
) |
Segment assets(1)
|
|
|
49,978 |
|
|
|
|
|
11,951 |
|
|
|
|
|
|
61,929 |
|
|
|
|
|
29,671 |
|
|
(4) |
|
|
91,600 |
|
Expenditures for segment assets |
|
|
477 |
|
|
|
|
|
466 |
|
|
|
|
|
|
943 |
|
|
|
|
|
1 |
|
|
|
|
|
944 |
|
Total debt |
|
|
106 |
|
|
|
|
|
¾ |
|
|
|
|
|
|
106 |
|
|
|
|
|
14,142 |
|
|
(5) |
|
|
14,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 profit (loss) |
|
|
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 |
|
|
|
|
|
14,196 |
|
| |
(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 $19,922,000 or 26.8% and $24,652,000 or 19.3%, for 2013 and 2012, respectively, of our total consolidated revenue from continuing operations. |
| |
(4) |
Amount includes assets from our discontinued operations of $4,481,000 and $2,113,000, as of December 31, 2013 and 2012, respectively. |
| |
(5) |
Net of debt discount of ($223,000) based on the estimated fair value at issuance of two Warrants and 90,000 shares of the Company’s Common Stock issued on August 2, 2013 in connection with a $3,000,000 promissory note entered into by the Company and Messrs. William Lampson and Robert L. Ferguson. See Note 8 – “Long-Term Debt – Promissory Note and Installment Agreement” for additional information.” |
| |
(6) |
Includes goodwill impairment charge of $13,691,000 for the Treatment Segment and $14,165,000 for the Services Segment. |
|