Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.23.2
Operating Segments
 6 Months Ended
Jun. 30, 2023
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: (1) 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 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 four 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.

 

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 and six months ended June 30, 2023 and 2022 (in thousands):

 

Segment Reporting for the Quarter Ended June 30, 2023

 

                              (1)          
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 12,834     $ 12,198     $ 25,032     $ —     $ 25,032  
Intercompany revenues     26       17       43       —       —  
Gross profit     2,491       2,025       4,516       —       4,516  
Research and development     91       7       98       23       121  
Interest income     —       —       —       172       172  
Interest expense     (23 )     —       (23 )     (24 )     (47 )
Interest expense-financing fees     —       —       —       (24 )     (24 )
Depreciation and amortization     589       89       678       14       692  
Segment income (loss) before income taxes     1,356       1,189       2,545       (1,594 )     951  
Income tax expense     83       349       432       —       432  
Segment income (loss)     1,273       840       2,113       (1,594 )     519  
Expenditures for segment assets     293       5       298       —       298 (2)

 

Segment Reporting for the Six Months Ended June 30, 2023

 

                              (1)          
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 22,428     $ 22,711     $ 45,139     $ —     $ 45,139  
Intercompany revenues     230       36       266       —       —  
Gross profit     3,743       3,782       7,525       —       7,525  
Research and development     158       10       168       52       220  
Interest income     —       —       —       298       298  
Interest expense     (45 )     (1 )     (46 )     (54 )     (100 )
Interest expense-financing fees     —       —       —       (44 )     (44 )
Depreciation and amortization     1,162       249       1,411       28       1,439  
Segment income (loss) before income taxes     1,514       2,132       3,646       (3,216 )     430  
Income tax (benefit) expense     (91 )     319       228       —       228  
Segment income (loss)     1,605       1,813       3,418       (3,216 )     202  
Expenditures for segment assets     1,043       4       1,047       —       1,047 (2)

 

Segment Reporting for the Quarter Ended June 30, 2022

 

                              (1)          
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 8,393     $ 11,062     $ 19,455     $ —     $ 19,455  
Intercompany revenues     —       17       17       —       —  
Gross profit     1,563       1,321       2,884       —       2,884  
Research and development     59       8       67       13       80  
Interest income     —       —       —       29       29  
Interest expense     (19 )     3       (16 )     (25 )     (41 )
Interest expense-financing fees     —       —       —       (15 )     (15 )
Depreciation and amortization     381       86       467       13       480  
Segment income (loss) before income taxes     364       515       879       (1,789 )     (910 )
Income tax expense     304       43       347       —       347  
Segment income (loss)     60       472       532       (1,789 )     (1,257 )
Expenditures for segment assets     373       39       412       —       412 (3)

 

Segment Reporting for the Six Months Ended June 30, 2022

 

                              (1)          
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 15,872     $ 19,498     $ 35,370     $ —     $ 35,370  
Intercompany revenues     —       27       27       —       —  
Gross profit     2,201       2,319       4,520       —       4,520  
Research and development     124       23       147       29       176  
Interest income     —       —       —       40       40  
Interest expense     (33 )     2       (31 )     (45 )     (76 )
Interest expense-financing fees     —       —       —       (28 )     (28 )
Depreciation and amortization     752       157       909       27       936  
Segment (loss) income before income taxes     (117 )     799       682       (3,514 )     (2,832 )
Income tax benefit     (254 )     (72 )     (326 )     —       (326 )
Segment income (loss)     137       871       1,008       (3,514 )     (2,506 )
Expenditures for segment assets     670       88       758       —       758 (3)

 

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

 

(2) Net of financed amount of $107,000 and $157,000 for the three and six months ended June 30, 2023, respectively.

 

(3) Net of financed amount of $0 and $114,000 for the three and six months ended June 30, 2022, respectively.