Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Operating Segments

v2.4.0.8
Note 11 - Operating Segments
6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

11.

Operating Segments


In accordance with ASC 280, “Segment Reporting”, the Company defines 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.


The Company currently has 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 10 – 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, Inc. 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 six months ended June 30, 2014 and 2013 (in thousands).


Segment Reporting for the Quarter Ended June 30, 2014

                                       
   

Treatment

   

Services

   

Segments Total

   

Corporate (1)

   

Consolidated Total

 

Revenue from external customers

  $ 9,396     $ 3,261     $ 12,657     $     $ 12,657  

Intercompany revenues

          33       33              

Gross profit

    1,325       232       1,557             1,557  

Interest income

                      6       6  

Interest expense

    15       1       16       198       214  

Interest expense-financing fees

          (2 )     (2 )     38       36  

Depreciation and amortization

    837       248       1,085       13       1,098  

Segment profit (loss)

    45       (1,007 )     (962 )     (1,399 )     (2,361 )

Expenditures for segment assets

    120             120             120  

                                         

Segment Reporting for the Quarter Ended June 30, 2013

                                       
   

Treatment

   

Services

   

Segments Total

   

Corporate (1)

   

Consolidated Total

 

Revenue from external customers

  $ 10,108     $ 12,676     $ 22,784     $     $ 22,784  

Intercompany revenues

    407       16       423              

Gross profit

    2,312       1,711       4,023             4,023  

Interest income

                      9       9  

Interest expense

    22       1       23       177       200  

Interest expense-financing fees

                      24       24  

Depreciation and amortization

    1,024       238       1,262       27       1,289  

Segment profit (loss)

    795       (619 )     176       (1,156 )     (980 )

Expenditures for segment assets

    59             59             59  

                                         

Segment Reporting for the Six Months Ended June 30, 2014

                                       
   

Treatment

   

Services

   

Segments Total

   

Corporate (1)

   

Consolidated Total

 

Revenue from external customers

  $ 17,068     $ 6,133     $ 23,201     $     $ 23,201  

Intercompany revenues

          44       44              

Gross profit

    1,435       215       1,650             1,650  

Interest income

                      14       14  

Interest expense

    25       1       26       341       367  

Interest expense-financing fees

          (2 )     (2 )     83       81  

Depreciation and amortization

    1,787       496       2,283       26       2,309  

Segment loss

    (1,128 )     (2,055 )     (3,183 )     (2,880 )     (6,063 )

Expenditures for segment assets

    331       2       333             333  

                                         

Segment Reporting for the Six Months Ended June 30, 2013

                                       
   

Treatment

   

Services

   

Segments Total

   

Corporate (1)

   

Consolidated Total

 

Revenue from external customers

  $ 17,450     $ 25,163     $ 42,613     $     $ 42,613  

Intercompany revenues

    1,075       55       1,130              

Gross profit

    2,167       2,393       4,560             4,560  

Interest income

                      18       18  

Interest expense

    27       (4 )     23       321       344  

Interest expense-financing fees

                      47       47  

Depreciation and amortization

    2,063       460       2,523       53       2,576  

Segment loss

    (93 )     (819 )     (912 )     (2,956 )     (3,868 )

Expenditures for segment assets

    175             175             175  

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