Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Segment Reporting

v3.20.2
Note 17 - Segment Reporting
 9 Months Ended
Jul. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 17. Segment Reporting

 

The Company conducts business through the following reportable segments based on geography and the nature of services sold:

 

 

●

U.S. Concrete Pumping – Consists of concrete pumping services sold to customers in the U.S. Business in this segment is primarily performed under the Brundage-Bone and Capital Pumping trade names.
 

●

U.K. Operations – Consists of concrete pumping services and leasing of concrete pumping equipment to customers in the U.K. Business in this segment is primarily performed under the Camfaud Concrete Pumps and Premier Concrete Pumping trade names. In addition to concrete pumping, we recently started operations of waste management services in the U.K. under the Eco-Pan trade name and the results of this business are included in this segment. This represents the Company’s foreign operations.
 

●

U.S. Concrete Waste Management Services – Consists of pans and containers rented to customers in the U.S. and the disposal of the concrete waste material services sold to customers in the U.S. Business in this segment is performed under the Eco-Pan trade name.

 

Any differences between segment reporting and consolidated results are reflected in Corporate and/or Intersegment below.

 

The accounting policies of the reportable segments are the same as those described in Note 2. The Company’s Chief Operating Decision Maker (“CODM”) evaluates the performance of each segment based on revenue, and measures segment performance based upon EBITDA (earnings before interest, taxes, depreciation and amortization). Non-allocated interest expense and various other administrative costs are reflected in Corporate. Corporate assets primarily include cash and cash equivalents, prepaid expenses and other current assets, and real property. The following provides operating information about the Company’s reportable segments for the periods presented:

 

   

Successor

    

Predecessor

  

(in thousands)

  

Three Months Ended July 31, 2020

    

Three Months Ended July 31, 2019

    

Nine Months Ended July 31, 2020

    

December 6, 2018 through July 31, 2019

    

November 1, 2018 through December 5, 2018

  

Revenue

                                        

U.S. Concrete Pumping

   $ 58,644     $ 58,354     $ 171,209     $ 124,969     $ 16,659  

U.K. Operations

     9,208       12,492       28,294       30,996       5,143  

U.S. Concrete Waste Management Services

     9,390       7,967       25,978       18,806       2,628  

Corporate

     625       626       1,875       1,634       242  

Intersegment

     (736 )     (784 )     (2,245 )     (1,792 )     (276 )
    $ 77,131     $ 78,655     $ 225,111     $ 174,613     $ 24,396  
                                         

Income (loss) before income taxes

                                        

U.S. Concrete Pumping

   $ 497     $ (1,050 )   $ (50,430 )   $ (14,946 )   $ (27,354 )

U.K. Operations

     (81 )     1,353       (16,535 )     290       207  

U.S. Concrete Waste Management Services

     1,685       329       3,149       (85 )     225  

Corporate

     418       208       1,254       1,113       155  
    $ 2,519     $ 840     $ (62,562 )   $ (13,628 )   $ (26,767 )

 

   

Successor

    

Predecessor

  

(in thousands)

  

Three Months Ended July 31, 2020

    

Three Months Ended July 31, 2019

    

Nine Months Ended July 31, 2020

    

December 6, 2018 through July 31, 2019

    

November 1, 2018 through December 5, 2018

  

EBITDA

                                        

U.S. Concrete Pumping

   $ 17,862     $ 17,934     $ 3,911     $ 29,283     $ (24,565 )

U.K. Operations

     2,715       5,013       (8,038 )     9,445       1,587  

U.S. Concrete Waste Management Services

     4,346       3,587       11,149       7,748       388  

Corporate

     625       626       1,875       1,633       180  
    $ 25,548     $ 27,160     $ 8,897     $ 48,109     $ (22,410 )
                                         

Consolidated EBITDA reconciliation

                                        

Net income (loss)

   $ 2,981     $ 2,762     $ (58,733 )   $ (10,513 )   $ (22,575 )

Interest expense, net

     8,364       9,843       26,632       24,753       1,644  

Income tax benefit

     (462 )     (1,922 )     (3,829 )     (3,115 )     (4,192 )

Depreciation and amortization

     14,665       16,477       44,827       36,984       2,713  

EBITDA

   $ 25,548     $ 27,160     $ 8,897     $ 48,109     $ (22,410 )

 

   

Successor

    

Predecessor

  

(in thousands)

  

Three Months Ended July 31, 2020

    

Three Months Ended July 31, 2019

    

Nine Months Ended July 31, 2020

    

December 6, 2018 through July 31, 2019

    

November 1, 2018 through December 5, 2018

  

Depreciation and amortization

                                        

U.S. Concrete Pumping

   $ 9,745     $ 9,938     $ 29,893     $ 21,471     $ 1,635  

U.K. Operations

     2,052       2,864       6,313       7,161       890  

U.S. Concrete Waste Management Services

     2,661       3,257       8,000       7,832       163  

Corporate

     207       418       621       520       25  
    $ 14,665     $ 16,477     $ 44,827     $ 36,984     $ 2,713  
                                         

Interest expense, net

                                        

U.S. Concrete Pumping

   $ (7,620 )   $ (9,046 )   $ (24,448 )   $ (22,758 )   $ (1,154 )

U.K. Operations

     (744 )     (796 )     (2,184 )     (1,994 )     (490 )

U.S. Concrete Waste Management Services

     -       (1 )     -       (1 )     -  

Corporate

     -       -       -       -       -  
    $ (8,364 )   $ (9,843 )   $ (26,632 )   $ (24,753 )   $ (1,644 )
                                         

Transaction costs including transaction-related debt extinguishment

                                        

U.S. Concrete Pumping

   $ -     $ 1,458     $ -     $ 1,458     $ -  

Corporate

     -       (1,282 )     -       -       30,562  
    $ -     $ 176     $ -     $ 1,458     $ 30,562  

 

Total assets by segment for the periods presented are as follows:

 

   

July 31,

    

October 31,

  

(in thousands)

  

2020

    

2019

  

Total Assets

                

U.S. Concrete Pumping

   $ 583,810     $ 637,384  

U.K. Operations

     122,986       138,435  

U.S. Concrete Waste Management Services

     138,718       137,646  

Corporate

     25,139       24,223  

Intersegment

     (83,136 )     (66,323 )
    $ 787,517     $ 871,365  

 

The U.S. and U.K. were the only regions that accounted for more than 10% of the Company’s revenue for the periods presented. There was no single customer that accounted for more than 10% of revenue for the periods presented. Revenue for the periods presented and long lived assets as of July 31, 2020 and October 31, 2019 are as follows:

 

   

Successor

    

Predecessor

  

(in thousands)

  

Three Months Ended July 31, 2020

    

Three Months Ended July 31, 2019

    

Nine Months Ended July 31, 2020

    

December 6, 2018 through July 31, 2019

    

November 1, 2018 through December 5, 2018

  

Revenues

                                        

U.S.

   $ 67,923     $ 66,163     $ 196,817     $ 143,617     $ 19,253  

U.K.

     9,208       12,492       28,294       30,996       5,143  
    $ 77,131     $ 78,655     $ 225,111     $ 174,613     $ 24,396  

 

   

July 31,

    

October 31,

  

(in thousands)

  

2020

    

2019

  

Long Lived Assets

                

U.S.

   $ 262,419     $ 263,363  

U.K.

     43,477       44,052  
    $ 305,896     $ 307,415