Annual report [Section 13 and 15(d), not S-K Item 405]

Note 19 - Segment Reporting

v3.25.4
Note 19 - Segment Reporting
 12 Months Ended
Oct. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 19. Segment Reporting

 

The Company conducts business through the three reportable segments based on geography and the nature of services sold that include U.S. Concrete Pumping, U.S. Concrete Waste Management Services and U.K. Operations. Any differences between segment reporting and consolidated results are reflected in Other/Eliminations below or noted as intersegment amounts. All other non-segmented assets primarily include cash and cash equivalents and intercompany eliminations. The accounting policies of the segment reporting are the same as those described in Note 2.

 

The Company’s chief operating decision maker ("CODM"), who is the CEO of the Company, makes decisions and evaluates the performance of each segment based on segment adjusted EBITDA. This measure is reviewed in monthly performance reports and is used to assess operating results, compare profitability across segments, and support resource allocation decisions such as budgeting and long-term planning. Results are compared to both budgeted amounts and prior year amounts to provide context and evaluate performance trends. Segment adjusted EBITDA includes direct operating expenses that are attributable to each segment and are regularly reviewed by the CODM. These direct operating expenses include employee cost of operations expenses, repairs and maintenance, fuel, and employee general and administrative ("G&A") expenses. Prior to the fourth quarter of 2025, the CODM evaluated segment performance using segment EBITDA, which included results after allocated corporate expenses, loss on extinguishment of debt, stock-based compensation, other expense (income), net, and other adjustments. Beginning in the fourth quarter of 2025, the CODM transitioned to using segment adjusted EBITDA as the measure of profit and loss. Segment adjusted EBITDA excludes the above allocations and adjustments, consistent with how the CODM now evaluates performance and allocates resources.

 

The following items are excluded from our segment adjusted EBITDA results as they are managed centrally, not regularly provided to our CODM by segment and are not used in evaluating segment performance or resource allocation decisions:

 

 

●

Depreciation and amortization
 

●

Interest expense and amortization of deferred financing costs, net of interest income
 

●

Unallocated corporate expenses – These are central shared costs managed separately and included in "unallocated corporate expenses" in the tables below.
 

●

Loss on debt extinguishment
 

●

Stock-based compensation
 

●

Change in fair value of warrant liabilities
 

●

Other expense (income), net
 

●

Other adjustments

 

 

The following tables summarize the Company’s segment results, provide a reconciliation of total segment adjusted EBITDA to income before taxes and discloses other segmented balances or expenditures for the years ending 2025 and 2024:

 

 

   

Twelve Months Ended October 31, 2025

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other /

Eliminations

    

Total

  

Segment Revenue: (1)

   $ 260,454     $ 75,416     $ 56,997           $ 392,867  
                                         

Segment expenses:

                                        

Segment employee cost of operations expenses (2)(3)

     88,073       13,193       18,142             119,408  

Repairs & maintenance (2)

     20,014       3,908       3,352             27,274  

Fuel (2)

     13,988       3,062       4,948             21,998  

Segment employee G&A expenses (2)(4)

     28,981       9,463       5,930             44,374  

Other segment items (5)

     33,307       9,030       7,366             49,703  

Total segment adjusted EBITDA

   $ 76,091     $ 36,760     $ 17,259           $ 130,110  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                           $ 53,543  

Interest expense and amortization of deferred financing costs, net of interest income

                             30,422  

Unallocated corporate expenses

                             33,093  

Loss on debt extinguishment

                             1,392  

Stock-based compensation

                             2,048  

Other expense (income), net

                             (335 )

Other adjustments

                             (105 )

Income before taxes

                           $ 10,052  
                                         

Other segment disclosures:

                                        

Total assets (at year end)

   $ 697,270     $ 200,729     $ 122,360     $ (140,817 )   $ 879,542  

Capital expenditures

   $ 23,526     $ 13,196     $ 9,975     $ 90     $ 46,787  

 

  (1) For the twelve months ended October 31, 2025, intersegment revenue of $0.6 million is excluded from US Concrete Waste Management Services.
  (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
  (3) Employee cost of operations expenses include salaries, benefits and bonuses.
  (4) Employee G&A expenses include salaries, benefits and bonuses.
  (5) Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.
  (6) Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.

 

 

   

Twelve Months Ended October 31, 2024

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other /

Eliminations

    

Total

  

Segment Revenue: (1)

   $ 291,017     $ 70,900     $ 63,955           $ 425,872  
                                         

Segment expenses:

                                        

Segment employee cost of operations expenses (2)(3)

     96,180       12,035       18,971             127,186  

Repairs & maintenance (2)

     20,875       3,309       4,173             28,357  

Fuel (2)

     16,991       2,838       5,793             25,622  

Segment employee G&A expenses (2)(4)

     32,530       9,579       6,060             48,169  

Other segment items (5)

     36,086       11,937       9,144             57,167  

Total segment adjusted EBITDA

   $ 88,355     $ 31,202     $ 19,814           $ 139,371  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                           $ 57,110  

Interest expense and amortization of deferred financing costs, net of interest income

                             25,572  

Unallocated corporate expense

                             27,225  

Stock-based compensation

                             2,394  

Change in fair value of warrant liabilities

                             (130 )

Other expense (income), net

                             (406 )

Other adjustments

                             3,295  

Income before taxes

                           $ 24,311  
                                         

Other segment disclosures:

                                        

Total assets (at year end)

   $ 718,218     $ 192,747     $ 117,418     $ (130,393 )   $ 897,990  

Capital expenditures

   $ 15,274     $ 13,665     $ 12,181     $ 2,690     $ 43,810  

 

  (1) For the twelve months ended October 31, 2024, intersegment revenue of $0.4 million is excluded from US Concrete Waste Management Services.
  (2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
  (3) Employee cost of operations expenses include salaries, benefits and bonuses.
  (4) Employee G&A expenses include salaries, benefits and bonuses.
  (5) Other segment items primarily include expenses that are included in segment adjusted EBITDA but are not individually significant and regularly provided to the CODM, such as insurance, facilities costs, professional fees and subscriptions, and other minor operational costs.
  (6) Depreciation expense is regularly provided to the CODM; however, only an immaterial portion of depreciation is directly expensed to the operating segments and included in the information regularly provided to the CODM. The remaining depreciation is excluded from the segment results and allocated along with other overhead costs, as it is not used by the CODM in assessing segment performance or allocating resources.

 

 

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. Revenues are attributable to countries based on the location of the customer.

 

The total assets by geographic location is provided to the CODM and is presented below. Revenue, total assets, property, plant and equipment, net, intangible assets, net and goodwill by geographic location for the periods presented are as follows: 

 

(in thousands)

  

US

    

UK

    

Total

  

2025

                          
 

Revenue

   $ 335,870     $ 56,997     $ 392,867  
 

Total assets

     757,182       122,360       879,542  
 

Property, plant and equipment, net

     350,468       62,048       412,516  
 

Intangible assets, net

     88,138       5,795       93,933  
 

Goodwill

     196,615       26,966       223,581  

2024

                          
 

Revenue

   $ 361,917     $ 63,955     $ 425,872  
 

Total assets

     780,572       117,418       897,990  
 

Property, plant and equipment, net

     353,895       61,831       415,726  
 

Intangible assets, net

     98,251       7,361       105,612  
 

Goodwill

     196,615       26,381       222,996