| Segment Reporting Disclosure [Text Block] |
Note 16. 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 tradenames. |
| |
● |
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 tradenames. In addition to concrete pumping, we recently started operations of waste management services in the U.K. under the Eco-Pan tradename 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 tradename. |
| |
● |
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 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:
| |
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
58,025 |
|
|
$ |
58,644 |
|
|
$ |
166,509 |
|
|
$ |
171,209 |
|
| U.K. Operations |
|
|
12,652 |
|
|
|
9,208 |
|
|
|
34,285 |
|
|
|
28,294 |
|
| U.S. Concrete Waste Management Services |
|
|
10,122 |
|
|
|
9,390 |
|
|
|
27,552 |
|
|
|
25,978 |
|
| Corporate |
|
|
625 |
|
|
|
625 |
|
|
|
1,875 |
|
|
|
1,875 |
|
| Intersegment |
|
|
(663 |
) |
|
|
(736 |
) |
|
|
(2,167 |
) |
|
|
(2,245 |
) |
| Total revenue |
|
$ |
80,761 |
|
|
$ |
77,131 |
|
|
$ |
228,054 |
|
|
$ |
225,111 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
2,625 |
|
|
$ |
497 |
|
|
$ |
(14,183 |
) |
|
$ |
(50,430 |
) |
| U.K. Operations |
|
|
533 |
|
|
|
(81 |
) |
|
|
305 |
|
|
|
(16,535 |
) |
| U.S. Concrete Waste Management Services |
|
|
2,458 |
|
|
|
1,685 |
|
|
|
4,492 |
|
|
|
3,149 |
|
| Corporate |
|
|
674 |
|
|
|
(2,316 |
) |
|
|
(9,945 |
) |
|
|
1,384 |
|
| Total income (loss) before income taxes |
|
$ |
6,290 |
|
|
$ |
(215 |
) |
|
$ |
(19,331 |
) |
|
$ |
(62,432 |
) |
| |
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
17,178 |
|
|
$ |
17,862 |
|
|
$ |
30,419 |
|
|
$ |
3,911 |
|
| U.K. Operations |
|
|
3,381 |
|
|
|
2,715 |
|
|
|
8,794 |
|
|
|
(8,038 |
) |
| U.S. Concrete Waste Management Services |
|
|
4,837 |
|
|
|
4,346 |
|
|
|
11,542 |
|
|
|
11,149 |
|
| Corporate |
|
|
885 |
|
|
|
(2,109 |
) |
|
|
(9,318 |
) |
|
|
2,005 |
|
| Total EBITDA |
|
$ |
26,281 |
|
|
$ |
22,814 |
|
|
$ |
41,437 |
|
|
$ |
9,027 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated EBITDA reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
4,638 |
|
|
$ |
247 |
|
|
$ |
(18,505 |
) |
|
$ |
(58,603 |
) |
| Interest expense, net |
|
|
6,153 |
|
|
|
8,364 |
|
|
|
19,082 |
|
|
|
26,632 |
|
| Income tax expense (benefit) |
|
|
1,652 |
|
|
|
(462 |
) |
|
|
(826 |
) |
|
|
(3,829 |
) |
| Depreciation and amortization |
|
|
13,838 |
|
|
|
14,665 |
|
|
|
41,686 |
|
|
|
44,827 |
|
| Total EBITDA |
|
$ |
26,281 |
|
|
$ |
22,814 |
|
|
$ |
41,437 |
|
|
$ |
9,027 |
|
| |
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
9,206 |
|
|
$ |
9,745 |
|
|
$ |
27,885 |
|
|
$ |
29,893 |
|
| U.K. Operations |
|
|
2,042 |
|
|
|
2,052 |
|
|
|
6,124 |
|
|
|
6,313 |
|
| U.S. Concrete Waste Management Services |
|
|
2,379 |
|
|
|
2,661 |
|
|
|
7,050 |
|
|
|
8,000 |
|
| Corporate |
|
|
211 |
|
|
|
207 |
|
|
|
627 |
|
|
|
621 |
|
| Total depreciation and amortization |
|
$ |
13,838 |
|
|
$ |
14,665 |
|
|
$ |
41,686 |
|
|
$ |
44,827 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
(5,347 |
) |
|
$ |
(7,620 |
) |
|
$ |
(16,717 |
) |
|
$ |
(24,448 |
) |
| U.K. Operations |
|
|
(806 |
) |
|
|
(744 |
) |
|
|
(2,365 |
) |
|
|
(2,184 |
) |
| U.S. Concrete Waste Management Services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Corporate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Total interest expense, net |
|
$ |
(6,153 |
) |
|
$ |
(8,364 |
) |
|
$ |
(19,082 |
) |
|
$ |
(26,632 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transaction and debt extinguishment costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
111 |
|
|
$ |
- |
|
|
$ |
15,705 |
|
|
$ |
- |
|
| Total transaction costs including transaction-related debt extinguishment |
|
$ |
111 |
|
|
$ |
- |
|
|
$ |
15,705 |
|
|
$ |
- |
|
Total assets by segment for the periods presented are as follows:
| |
|
July 31, |
|
|
October 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
| Total Assets |
|
|
|
|
|
|
|
|
| U.S. Concrete Pumping |
|
$ |
577,398 |
|
|
$ |
570,536 |
|
| U.K. Operations |
|
|
104,641 |
|
|
|
109,726 |
|
| U.S. Concrete Waste Management Services |
|
|
143,797 |
|
|
|
140,209 |
|
| Corporate |
|
|
26,454 |
|
|
|
25,517 |
|
| Intersegment |
|
|
(70,324 |
) |
|
|
(72,230 |
) |
| Total assets |
|
$ |
781,966 |
|
|
$ |
773,758 |
|
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, 2021 and October 31, 2020 are as follows:
| |
|
Three Months Ended July 31, |
|
|
Nine Months Ended July 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Revenue by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
68,109 |
|
|
$ |
67,923 |
|
|
$ |
193,769 |
|
|
$ |
196,817 |
|
| U.K. |
|
|
12,652 |
|
|
|
9,208 |
|
|
|
34,285 |
|
|
|
28,294 |
|
| Total revenue |
|
$ |
80,761 |
|
|
$ |
77,131 |
|
|
$ |
228,054 |
|
|
$ |
225,111 |
|
| |
|
July 31, |
|
|
October 31, |
|
| (in thousands) |
|
2021 |
|
|
2020 |
|
| Long Lived Assets |
|
|
|
|
|
|
|
|
| U.S. |
|
$ |
267,129 |
|
|
$ |
260,693 |
|
| U.K. |
|
|
47,461 |
|
|
|
43,561 |
|
| Total long lived assets |
|
$ |
314,590 |
|
|
$ |
304,254 |
|
|