Quarterly report pursuant to sections 13 or 15(d)

Operating Segments

v2.4.0.8
Operating Segments
 6 Months Ended
Jun. 30, 2013
Operating Segments [Abstract]  
Operating Segments
10. 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 9 – “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 asbestosmanagement/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 and 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 and 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 six months ended June 30, 2013 and 2012 (in thousands).

Segment Reporting for the Quarter Ended June 30, 2013
  
 
  
Treatment
    
Services
    
Segments Total
      
Corporate (2)
     
Consolidated Total
  
Revenue from external customers
  
$
10,108
    
$
12,676
    
$
22,784
  
(3)
  
$
¾
      
$
22,784
  
Intercompany revenues
    
407
      
16
      
423
        
¾
        
¾
  
Gross profit
    
2,312
      
1,711
      
4,023
        
¾
        
4,023
  
Interest income
    
¾
      
¾
      
¾
        
9
        
9
  
Interest expense
    
22
      
1
      
23
        
177
        
200
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
24
        
24
  
Depreciation and amortization
    
1,024
      
238
      
1,262
        
27
        
1,289
  
Segment profit (loss)
    
795
      
(619
)
    
176
        
(1,156
)
      
(980
)
Segment assets(1)
   
72,422
      
31,810
      
104,232
        
28,330
  
(4)
    
132,562
  
Expenditures for segment assets
    
59
      
¾
      
59
        
¾
        
59
  
Total long-term debt, net of current portion
    
14
      
¾
      
14
        
11,836
        
11,850
  
 
                                            
Segment Reporting for the Quarter Ended June 30, 2012              
  
 
  
Treatment
    
Services
    
Segments Total
      
Corporate (2)
     
Consolidated Total
  
Revenue from external customers
  
$
10,037
    
$
23,661
    
$
33,698
  
(3)
  
$
¾
      
$
33,698
  
Intercompany revenues
    
549
      
49
      
598
        
¾
        
¾
  
Gross profit
    
1,087
      
2,843
      
3,930
        
¾
        
3,930
  
Interest income
    
¾
      
¾
      
¾
        
7
        
7
  
Interest expense
    
3
      
¾
      
3
        
196
        
199
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
26
        
26
  
Depreciation and amortization
    
1,125
      
218
      
1,343
        
18
        
1,361
  
Segment profit (loss)
    
72
      
989
      
1,061
        
(2,070
)
      
(1,009
)
Segment assets(1)
   
78,982
      
43,568
      
122,550
        
31,231
  
(4)
    
153,781
  
Expenditures for segment assets
    
74
      
103
      
177
        
2
        
179
  
Total long-term debt, net of current portion
    
60
      
2
      
62
        
12,940
        
13,002
  
 
                                            
Segment Reporting for the Six Months Ended June 30, 2013               
  
 
  
Treatment
    
Services
    
Segments Total
      
Corporate (2)
     
Consolidated Total
  
Revenue from external customers
  
$
17,450
    
$
25,163
    
$
42,613
  
(3)
  
$
¾
      
$
42,613
  
Intercompany revenues
    
1,075
      
55
      
1,130
        
¾
        
¾
  
Gross profit
    
2,167
      
2,393
      
4,560
        
¾
        
4,560
  
Interest income
    
¾
      
¾
      
¾
        
18
        
18
  
Interest expense
    
27
      
(4
)
    
23
        
321
        
344
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
47
        
47
  
Depreciation and amortization
    
2,063
      
460
      
2,523
        
53
        
2,576
  
Segment loss
    
(93
)
    
(819
)
    
(912
        
(2,956
)
      
(3,868
)
Segment assets(1)
   
72,422
      
31,810
      
104,232
        
28,330
  
(4)
    
132,562
  
Expenditures for segment assets
    
175
      
¾
      
175
        
¾
        
175
  
Total long-term debt, net of current portion
    
14
      
¾
      
14
        
11,836
        
11,850
  
 
                                            
Segment Reporting for the Six Months Ended June 30, 2012               
  
 
  
Treatment
    
Services
      
Segments Total
      
Corporate (2)
     
Consolidated Total
  
Revenue from external customers
  
$
22,879
    
$
48,755
    
$
71,634
  
(3)
  
$
¾
      
$
71,634
  
Intercompany revenues
    
1,158
      
117
      
1,275
        
¾
        
¾
  
Gross profit
    
3,808
      
4,491
      
8,299
        
¾
        
8,299
  
Interest income
    
¾
      
¾
      
¾
        
21
        
21
  
Interest expense
    
5
      
6
      
11
        
409
        
420
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
60
        
60
  
Depreciation and amortization
    
2,255
      
462
      
2,717
        
36
        
2,753
  
Segment profit (loss)
    
1,164
      
1,094
      
2,258
        
(4,074
)
      
(1,816
)
Segment assets(1)
   
78,982
      
43,568
      
122,550
        
31,231
  
(4)
    
153,781
  
Expenditures for segment assets
    
242
      
141
      
383
        
4
        
387
  
Total long-term debt, net of current portion
    
60
      
2
      
62
        
12,940
        
13,002
  

(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) Includes revenues generated from CH Plateau Remediation Company (“CHPRC”) of $6,419,000 or 28.2% and $12,440,000 or 29.2% for the three and six months ended June 30, 2013, respectively and $6,323,000 or 18.8% and $12,633,000 or 17.6% for the corresponding period of 2012, respectively.

(4) Amount includes assets from discontinued operations of $2,302,000 and $2,381,000 as of June 30, 2013 and 2012, respectively.