Annual report pursuant to Section 13 and 15(d)

Note 18 - Segment Reporting

v3.21.1
Note 18 - Segment Reporting
12 Months Ended
Oct. 31, 2020
Notes to Financial Statements  
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