Quarterly report pursuant to sections 13 or 15(d)

Operating Segments

v2.4.0.6
Operating Segments
 3 Months Ended
Mar. 31, 2013
Operating Segments [Abstract]  
Operating Segments
12. Operating Segments
 
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 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, 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 11 – Discontinued Operations and Divestitures."

Our reporting segments are defined as follows:

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 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 advance 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; and
o
augmented engineering services (through our Schreiber, Yonley & Associates subsidiary – "SYA") providing consulting environmental services to industrial and government customers:
§
including air, water, and hazardous waste permitting, air, soil and water sampling, compliance reporting, emission reduction strategies, compliance auditing, and various compliance and training activities; and
§
engineering and compliance support to other segments;
-
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 months ended March 31, 2013 and 2012 (in thousands).
 
Segment Reporting as of and for the Quarter Ended March 31, 2013
 
 
 
 
 
 
 
 
 
Treatment
 
Services
 
 
  Segments Total
Corporate And Other
  (2)
Consolidated Total
Revenue from external customers
   (3)
 $      7,341
 
 $    12,488
 
 
 $    19,829
 
 $         —
 
 $       19,829
Intercompany revenues
 
            672
 
              39
 
 
            711
 
¾
 
¾
Gross (loss) profit
 
           (145)
 
            682
 
 
            537
 
¾
 
               537
Interest income
 
¾
 
¾
 
 
¾
 
                9
 
                   9
Interest expense
 
                5
 
               (5)
 
 
¾
 
            145
 
               145
Interest expense-financing fees
 
¾
 
¾
 
 
¾
 
             (23)
 
                (23)
Depreciation and amortization
 
         1,039
 
            222
 
 
         1,261
 
              26
 
            1,287
Segment loss, net of taxes
 
           (888)
 
           (200)
 
 
        (1,088)
 
        (1,800)
 
           (2,888)
Segment assets(1)
 
       72,861
 
       34,227
 
 
     107,088
 
       28,677
  (4)
        135,765
Expenditures for segment assets
 
            116
 
¾
 
 
            116
 
¾
 
               116
Total long-term debt, net of current portion
 
              25
 
      -- 
 
 
              25
 
       11,754
 
          11,779
 
Segment Reporting as of and for the Quarter Ended March 31, 2012
 
 
 
 
 
 
 
 
 
Treatment
 
Services
 
 
  Segments Total
Corporate And Other
  (2)
Consolidated Total
Revenue from external customers
   (3)
 $    12,842
 
 $    25,094
 
 
 $    37,936
 
 $         —
 
 $       37,936
Intercompany revenues
 
            609
 
              68
 
 
            677
 
¾
 
¾
Gross profit
 
         2,721
 
         1,648
 
 
         4,369
 
¾
 
            4,369
Interest income
 
¾
 
¾
 
 
¾
 
              15
 
                 15
Interest expense
 
                2
 
                5
 
 
                7
 
            214
 
               221
Interest expense-financing fees
 
¾
 
¾
 
 
¾
 
              34
 
                 34
Depreciation and amortization
 
         1,130
 
            244
 
 
         1,374
 
              18
 
            1,392
Segment profit (loss), net of taxes
 
         1,093
 
            105
 
 
         1,198
 
        (2,005)
 
              (807)
Segment assets(1)
 
       79,171
 
       46,687
 
 
     125,858
 
       32,741
  (4)
        158,599
Expenditures for segment assets
 
            166
 
              38
 
 
            204
 
                2
 
               206
Total long-term debt, net of current portion
 
            72
 
              4
 
 
            76
 
       13,204
 
          13,280
 
 (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 following customers accounted for 10% or more of the total revenues generated from continuing operations for the three months ended March 31, 2013 and the corresponding period of 2012: (1) Revenues from CH Plateau Remediation Company ("CHPRC") totaled $6,021,000 or 30.4% and $6,311,000 or 16.6% for the three months ended March 31, 2013 and 2012, respectively; and (2) Revenues generated directly from the U.S. Department of Energy ("DOE") accounted for $3,258,000 or 16.4% and $8,567,000 and 22.6% for the three months ended March 31, 2013 and 2012, respectively.

(4)
Amount includes assets from our discontinued operations of $2,216,000 and $2,358,000 as of March 31, 2013 and 2012, respectively.