Segment Reporting Disclosure [Text Block] |
Note 19. Segment Reporting
The Company conducts business through the following reportable segments based on geography and the nature of services sold:
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● |
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 trade names. |
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● |
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 Intersegment or Other below. All Other non-segmented revenues and costs that are not allocated to other reportable segments include intercompany eliminations, non-allocated depreciation, and the change in the fair value of the warrant liability. All Other non-segmented assets primarily include cash and cash equivalents, intercompany eliminations and real property.
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:
|
|
Year Ended October 31, |
|
(in thousands) |
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
U.S. Concrete Pumping |
|
$ |
317,877 |
|
|
$ |
296,506 |
|
U.K. Operations |
|
|
62,588 |
|
|
|
54,926 |
|
U.S. Concrete Waste Management Services(1) |
|
|
62,405 |
|
|
|
50,191 |
|
Reportable segment revenue |
|
|
442,870 |
|
|
|
401,623 |
|
Other |
|
|
2,500 |
|
|
|
2,500 |
|
Intersegment eliminations(1) |
|
|
(3,129 |
) |
|
|
(2,831 |
) |
Total revenue |
|
$ |
442,241 |
|
|
$ |
401,292 |
|
|
|
|
|
|
|
|
|
|
(1) For years ended October 31, 2023 and 2022, there were $0.6 million and $0.3 million, respectively, included in revenue in the U.S. Concrete Waste Management Services segment and eliminated in the intersegment eliminations. The remaining $2.5 million relates to the revenue as disclosed in Other. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
U.S. Concrete Pumping |
|
$ |
75,587 |
|
|
$ |
72,278 |
|
U.K. Operations |
|
|
15,272 |
|
|
|
12,582 |
|
U.S. Concrete Waste Management Services |
|
|
27,088 |
|
|
|
20,302 |
|
Reportable segment EBITDA |
|
|
117,947 |
|
|
|
105,162 |
|
Interest expense, net |
|
|
(28,119 |
) |
|
|
(25,891 |
) |
Reportable segment depreciation and amortization |
|
|
(57,806 |
) |
|
|
(56,614 |
) |
Other |
|
|
8,540 |
|
|
|
11,545 |
|
Total income before income taxes |
|
$ |
40,562 |
|
|
$ |
34,202 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
U.S. Concrete Pumping |
|
$ |
41,870 |
|
|
$ |
40,304 |
|
U.K. Operations |
|
|
7,535 |
|
|
|
7,709 |
|
U.S. Concrete Waste Management Services |
|
|
8,401 |
|
|
|
8,601 |
|
Reportable segment depreciation and amortization |
|
|
57,806 |
|
|
|
56,614 |
|
Other |
|
|
860 |
|
|
|
848 |
|
Total depreciation and amortization |
|
$ |
58,666 |
|
|
$ |
57,462 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
U.S. Concrete Pumping |
|
$ |
(25,294 |
) |
|
$ |
(22,968 |
) |
U.K. Operations |
|
|
(2,825 |
) |
|
|
(2,923 |
) |
Total interest expense, net |
|
$ |
(28,119 |
) |
|
$ |
(25,891 |
) |
Total assets by segment for the periods presented are as follows:
|
|
As of October 31, |
|
|
As of October 31, |
|
(in thousands) |
|
2023 |
|
|
2022 |
|
Total assets |
|
|
|
|
|
|
|
|
U.S. Concrete Pumping |
|
$ |
698,905 |
|
|
$ |
693,048 |
|
U.K. Operations |
|
|
119,123 |
|
|
|
103,255 |
|
U.S. Concrete Waste Management Services |
|
|
181,382 |
|
|
|
157,370 |
|
Reportable segment assets |
|
|
999,410 |
|
|
|
953,673 |
|
Other |
|
|
(94,885 |
) |
|
|
(66,184 |
) |
Total assets |
|
$ |
904,525 |
|
|
$ |
887,489 |
|
Total capital expenditures by segment for the periods presented are as follows:
|
|
Year Ended October 31, |
|
(in thousands) |
|
2023 |
|
|
2022 |
|
Total capital expenditures |
|
|
|
|
|
|
|
|
U.S. Concrete Pumping |
|
$ |
30,263 |
|
|
$ |
78,453 |
|
U.K. Operations |
|
|
12,405 |
|
|
|
13,385 |
|
U.S. Concrete Waste Management Services |
|
|
11,837 |
|
|
|
10,077 |
|
Reportable segment capital expenditures |
|
|
54,505 |
|
|
|
101,915 |
|
Other |
|
|
- |
|
|
|
18 |
|
Total capital expenditures |
|
$ |
54,505 |
|
|
$ |
101,933 |
|
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, 2023 and 2022 are as follows:
|
|
Year Ended October 31, |
|
(in thousands) |
|
2023 |
|
|
2022 |
|
Revenue by geography |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
379,653 |
|
|
$ |
346,366 |
|
U.K. |
|
|
62,588 |
|
|
|
54,926 |
|
Total revenue |
|
$ |
442,241 |
|
|
$ |
401,292 |
|
Long-lived tangible assets |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
371,689 |
|
|
$ |
366,814 |
|
U.K. |
|
|
55,959 |
|
|
|
52,563 |
|
Total long lived assets |
|
$ |
427,648 |
|
|
$ |
419,377 |
|
|