Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Segment Reporting

v3.22.2.2
Note 17 - Segment Reporting
9 Months Ended
Jul. 31, 2022
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 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 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)

 

2022

   

2021

   

2022

   

2021

 

Revenue

                               

U.S. Concrete Pumping

  $ 77,352     $ 58,025     $ 212,189     $ 166,509  

U.K. Operations

    14,417       12,652       39,980       34,285  

U.S. Concrete Waste Management Services

    12,813       10,122       34,551       27,552  

Corporate

    625       625       1,875       1,875  

Intersegment

    (738 )     (663 )     (2,197 )     (2,167 )

Total revenue

  $ 104,469     $ 80,761     $ 286,398     $ 228,054  

 

   

Three Months Ended July 31,

   

Nine Months Ended July 31,

 

(in thousands)

 

2022

   

2021

   

2022

   

2021

 

EBITDA

                               

U.S. Concrete Pumping

  $ 21,495     $ 17,178     $ 52,524     $ 30,419  

U.K. Operations

    3,197       3,381       8,619       8,794  

U.S. Concrete Waste Management Services

    4,976       4,837       13,398       11,542  

Corporate

    8,045       885       11,769       (9,318 )

Total EBITDA

  $ 37,713     $ 26,281     $ 86,310     $ 41,437  
                                 

Consolidated EBITDA reconciliation

                               

Net income (loss)

  $ 14,496     $ 4,638     $ 21,664     $ (18,505 )

Interest expense, net

    6,517       6,153       19,126       19,082  

Income tax expense (benefit)

    2,510       1,652       3,015       (826 )

Depreciation and amortization

    14,190       13,838       42,505       41,686  

Total EBITDA

  $ 37,713     $ 26,281     $ 86,310     $ 41,437  

 

   

Three Months Ended July 31,

   

Nine Months Ended July 31,

 

(in thousands)

 

2022

   

2021

   

2022

   

2021

 

Depreciation and amortization

                               

U.S. Concrete Pumping

  $ 9,927     $ 9,206     $ 29,615     $ 27,885  

U.K. Operations

    1,881       2,042       5,892       6,124  

U.S. Concrete Waste Management Services

    2,170       2,379       6,361       7,050  

Corporate

    212       211       637       627  

Total depreciation and amortization

  $ 14,190     $ 13,838     $ 42,505     $ 41,686  
                                 

Interest expense, net

                               

U.S. Concrete Pumping

  $ (5,795 )   $ (5,347 )   $ (16,879 )   $ (16,717 )

U.K. Operations

    (722 )     (806 )     (2,247 )     (2,365 )

Total interest expense, net

  $ (6,517 )   $ (6,153 )   $ (19,126 )   $ (19,082 )
                                 

Transaction costs and debt extinguishment costs

                               

U.S. Concrete Pumping

  $ 20     $ 111     $ 59     $ 15,705  

Total transaction costs including transaction-related debt extinguishment

  $ 20     $ 111     $ 59     $ 15,705  

 

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

 

   

July 31,

   

October 31,

 

(in thousands)

 

2022

   

2021

 

Total assets

               

U.S. Concrete Pumping

  $ 628,504     $ 591,820  

U.K. Operations

    103,481       109,631  

U.S. Concrete Waste Management Services

    153,092       145,199  

Corporate

    28,004       26,648  

Intersegment

    (88,613 )     (80,633 )

Total assets

  $ 824,468     $ 792,665  

 

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 tangible assets as of  July 31, 2022 and  October 31, 2021 are as follows:

 

   

Three Months Ended July 31,

   

Nine Months Ended July 31,

 

(in thousands)

 

2022

   

2021

   

2022

   

2021

 

Revenue by geography

                               

U.S.

  $ 90,052     $ 68,109     $ 246,418     $ 193,769  

U.K.

    14,417       12,652       39,980       34,285  

Total revenue

  $ 104,469     $ 80,761     $ 286,398     $ 228,054  

 

   

July 31,

   

October 31,

 

(in thousands)

 

2022

   

2021

 

Long-lived tangible assets

               

U.S.

  $ 332,236     $ 285,307  

U.K.

    53,011       52,464  

Total long lived assets

  $ 385,247     $ 337,771