Quarterly report pursuant to sections 13 or 15(d)

Operating Segments

v2.4.0.8
Operating Segments
 9 Months Ended
Sep. 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 governmental 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 and nine months ended September 30, 2013 and 2012 (in thousands).

Segment Reporting for the Quarter Ended September 30, 2013
    
     
   
 
 
  
Treatment
    
Services
    
Segments
Total
      
Corporate (1)
   
Consolidated
Total
  
Revenue from external customers
  
$
8,929
    
$
10,143
    
$
19,072
  
(2) 
  
$
¾
    
$
19,072
  
Intercompany revenues
    
82
      
11
      
93
        
¾
      
¾
  
Gross profit
    
1,801
      
1,328
      
3,129
        
¾
      
3,129
  
Interest income
    
¾
      
¾
      
¾
        
8
      
8
  
Interest expense
    
10
      
1
      
11
        
176
      
187
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
40
      
40
  
Depreciation and amortization
    
999
      
248
      
1,247
        
20
      
1,267
  
Segment profit (loss)
    
616
      
387
      
1,003
        
(1,571
)
    
(568
)
Expenditures for segment assets
    
192
      
6
      
198
        
¾
      
198
  
 
                                          
Segment Reporting for the Quarter Ended September 30, 2012
                            
 
  
Treatment
    
Services
    
Segments
Total
      
Corporate (1)
   
Consolidated
Total
  
Revenue from external customers
  
$
11,405
    
$
17,785
    
$
29,190
  
(2) 
  
$
¾
    
$
29,190
  
Intercompany revenues
    
265
      
50
      
315
        
¾
      
¾
  
Gross profit
    
3,097
      
1,129
      
4,226
        
¾
      
4,226
  
Interest income
    
¾
      
¾
      
¾
        
10
      
10
  
Interest expense
    
2
      
4
      
6
        
217
      
223
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
23
      
23
  
Depreciation and amortization
    
1,104
      
226
      
1,330
        
19
      
1,349
  
Segment profit (loss)
    
1,352
      
(47
)
    
1,305
        
(1,777
)
    
(472
)
Expenditures for segment assets
    
24
      
1
      
25
        
¾
      
25
  
 
                                          
Segment Reporting for the Nine Months Ended September 30, 2013
                            
 
  
Treatment
    
Services
    
Segments
Total
      
Corporate (1)
   
Consolidated
Total
  
Revenue from external customers
  
$
26,379
    
$
35,306
    
$
61,685
  
(2) 
  
$
¾
    
$
61,685
  
Intercompany revenues
    
1,149
      
66
      
1,215
        
¾
      
¾
  
Gross profit
    
3,968
      
3,722
      
7,690
        
¾
      
7,690
  
Interest income
    
¾
      
¾
      
¾
        
27
      
27
  
Interest expense
    
38
      
(3
)
    
35
        
497
      
532
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
87
      
87
  
Depreciation and amortization
    
3,063
      
708
      
3,771
        
72
      
3,843
  
Segment profit (loss)
    
524
      
(432
)
    
92
        
(4,528
)
    
(4,436
)
Expenditures for segment assets
    
367
      
6
      
373
        
¾
      
373
  
 
                                          
Segment Reporting for the Nine Months Ended September 30, 2012
                            
 
  
Treatment
    
Services
    
Segments
Total
      
Corporate (1)
   
Consolidated
Total
  
Revenue from external customers
  
$
34,284
    
$
66,540
    
$
100,824
  
(2) 
  
$
¾
    
$
100,824
  
Intercompany revenues
    
1,423
      
167
      
1,590
        
¾
      
¾
  
Gross profit
    
6,904
      
5,621
      
12,525
        
¾
      
12,525
  
Interest income
    
¾
      
¾
      
¾
        
31
      
31
  
Interest expense
    
7
      
9
      
16
        
626
      
642
  
Interest expense-financing fees
    
¾
      
¾
      
¾
        
84
      
84
  
Depreciation and amortization
    
3,359
      
688
      
4,047
        
55
      
4,102
  
Segment profit (loss)
    
2,517
      
1,047
      
3,564
        
(5,852
)
    
(2,288
)
Expenditures for segment assets
    
266
      
142
      
408
        
4
      
412
  

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

(2) Includes revenues generated from CH Plateau Remediation Company (“CHPRC”) of $6,082,000 or 31.9% and $18,522,000 or 30.0% for the three and nine months ended September 30, 2013, respectively and $6,036,000 or 20.7% and $18,669,000 or 18.6% for the corresponding period of 2012, respectively.