Annual report pursuant to Section 13 and 15(d)

Note 19 - Segment Reporting

v3.23.4
Note 19 - Segment Reporting
 12 Months Ended
Oct. 31, 2023
Notes to Financial Statements  
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:

 

 

●

 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.

 

●

 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