| Segment Reporting Disclosure [Text Block] |
Note 18. 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. |
| |
● |
Corporate - Is primarily related to the intercompany leasing of real estate to certain of the U.S Concrete Pumping branches. |
Any differences between segment reporting and consolidated results are reflected in 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:
| |
|
|
(As Restated) |
|
|
|
|
| |
|
Successor |
|
|
Predecessor |
|
| (in thousands) |
|
Year Ended October 31, 2020 |
|
|
December 6, 2018 through October 31, 2019 |
|
|
November 1, 2018 through December 5, 2018 |
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
229,740 |
|
|
$ |
187,031 |
|
|
$ |
16,659 |
|
| U.K. Operations |
|
|
39,145 |
|
|
|
44,021 |
|
|
|
5,143 |
|
| U.S. Concrete Waste Management Services |
|
|
35,890 |
|
|
|
27,779 |
|
|
|
2,628 |
|
| Corporate |
|
|
2,500 |
|
|
|
2,258 |
|
|
|
242 |
|
| Intersegment |
|
|
(2,974 |
) |
|
|
(2,524 |
) |
|
|
(276 |
) |
| |
|
$ |
304,301 |
|
|
$ |
258,565 |
|
|
$ |
24,396 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
(56,095 |
) |
|
$ |
(17,689 |
) |
|
$ |
(27,354 |
) |
| U.K. Operations |
|
|
(16,540 |
) |
|
|
1,661 |
|
|
|
207 |
|
| U.S. Concrete Waste Management Services |
|
|
4,997 |
|
|
|
965 |
|
|
|
225 |
|
| Corporate |
|
|
1,410 |
|
|
|
(4,643 |
) |
|
|
155 |
|
| |
|
$ |
(66,228 |
) |
|
$ |
(19,706 |
) |
|
$ |
(26,767 |
) |
| |
|
|
(As Restated) |
|
|
|
|
| |
|
Successor |
|
|
Predecessor |
|
| (in thousands) |
|
Year Ended October 31, 2020 |
|
|
December 6, 2018 through October 31, 2019 |
|
|
November 1, 2018 through December 5, 2018 |
|
| EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
17,074 |
|
1 |
$ |
46,729 |
|
|
$ |
(24,565 |
) |
| U.K. Operations |
|
|
(5,163 |
) |
1 |
|
13,173 |
|
|
|
1,587 |
|
| U.S. Concrete Waste Management Services |
|
|
15,684 |
|
|
|
11,838 |
|
|
|
388 |
|
| Corporate |
|
|
2,240 |
|
|
|
(3,914 |
) |
|
|
180 |
|
| |
|
$ |
29,835 |
|
|
$ |
67,826 |
|
|
$ |
(22,410 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated EBITDA reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(61,251 |
) |
|
$ |
(16,403 |
) |
|
$ |
(22,575 |
) |
| Interest expense, net |
|
|
34,408 |
|
|
|
34,880 |
|
|
|
1,644 |
|
| Income tax benefit |
|
|
(4,977 |
) |
|
|
(3,303 |
) |
|
|
(4,192 |
) |
| Depreciation and amortization |
|
|
61,655 |
|
|
|
52,652 |
|
|
|
2,713 |
|
| EBITDA |
|
$ |
29,835 |
|
|
$ |
67,826 |
|
|
$ |
(22,410 |
) |
1 The U.S. Concrete Pumping segment’s EBITDA for the year ended October 31, 2020 includes the impact of $43.5 million in goodwill and intangibles impairment while the U.K. Concrete Pumping segment’s EBITDA for the year ended October 31, 2020 includes the impact of $14.4 million in goodwill and intangibles impairment.
| |
|
Successor |
|
|
Predecessor |
|
| (in thousands) |
|
Year Ended October 31, 2020 |
|
|
December 6, 2018 through October 31, 2019 |
|
|
November 1, 2018 through December 5, 2018 |
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
41,717 |
|
|
$ |
32,245 |
|
|
$ |
1,635 |
|
| U.K. Operations |
|
|
8,422 |
|
|
|
8,807 |
|
|
|
890 |
|
| U.S. Concrete Waste Management Services |
|
|
10,687 |
|
|
|
10,871 |
|
|
|
163 |
|
| Corporate |
|
|
829 |
|
|
|
729 |
|
|
|
25 |
|
| |
|
$ |
61,655 |
|
|
$ |
52,652 |
|
|
$ |
2,713 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
(31,452 |
) |
|
$ |
(32,173 |
) |
|
$ |
(1,154 |
) |
| U.K. Operations |
|
|
(2,955 |
) |
|
|
(2,705 |
) |
|
|
(490 |
) |
| U.S. Concrete Waste Management Services |
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
| Corporate |
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
| |
|
$ |
(34,408 |
) |
|
$ |
(34,880 |
) |
|
$ |
(1,644 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Transaction costs including transaction-related debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
- |
|
|
$ |
1,521 |
|
|
$ |
- |
|
| Corporate |
|
|
- |
|
|
|
- |
|
|
|
30,562 |
|
| |
|
$ |
- |
|
|
$ |
1,521 |
|
|
$ |
30,562 |
|
Total assets by segment for the periods presented are as follows:
| |
|
October 31, |
|
|
October 31, |
|
| (in thousands) |
|
2020 |
|
|
2019 |
|
| Total Assets |
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
570,536 |
|
|
$ |
637,384 |
|
| U.K. Operations |
|
|
109,726 |
|
|
|
138,435 |
|
| U.S. Concrete Waste Management Services |
|
|
140,209 |
|
|
|
137,646 |
|
| Corporate |
|
|
25,517 |
|
|
|
24,223 |
|
| Intersegment |
|
|
(72,230 |
) |
|
|
(66,323 |
) |
| |
|
$ |
773,758 |
|
|
$ |
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 October 31, 2020 and 2019 are as follows:
| |
|
Successor |
|
|
Predecessor |
|
| (in thousands) |
|
Year Ended October 31, 2020 |
|
|
December 6, 2018 through October 31, 2019 |
|
|
November 1, 2018 through December 5, 2018 |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
265,156 |
|
|
$ |
214,544 |
|
|
$ |
19,253 |
|
| U.K. |
|
|
39,145 |
|
|
|
44,021 |
|
|
|
5,143 |
|
| |
|
$ |
304,301 |
|
|
$ |
258,565 |
|
|
$ |
24,396 |
|
| |
|
October 31, |
|
|
October 31, |
|
| (in thousands) |
|
2020 |
|
|
2019 |
|
| Long Lived Assets |
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
260,693 |
|
|
$ |
263,363 |
|
| U.K. |
|
|
43,561 |
|
|
|
44,052 |
|
| |
|
$ |
304,254 |
|
|
$ |
307,415 |
|
|