General form of registration statement for all companies including face-amount certificate companies

Note 17 - Segments Reporting

v3.19.1
Note 17 - Segments Reporting
 3 Months Ended 12 Months Ended
Jan. 31, 2019
Oct. 31, 2018
Notes to Financial Statements    
Segment Reporting Disclosure [Text Block]
Note
17.
Segment Reporting
 
The Company conducts the business through the following reportable segments based on geography and the nature of services sold: U.S Concrete pumping – Brundage-Bone, U.K. Concrete Pumping – Camfaud, Concrete Waste Management Services – Eco-Pan. The classifications are defined as follows:
 
 
●
U.S. Concrete Pumping – Brundage-Bone – consists of concrete pumping services sold to customers in the U.S.
 
●
U.K. Concrete Pumping – Camfaud – consists of concrete pumping services sold to customers in the U.K, which represents the Company’s foreign operations.
 
●
Concrete Waste Management Services – Eco-Pan – 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.
 
The accounting policies of the reportable segments are the same as those described in Note
2.
The Chief Operating Decision Maker (CODM) evaluates the performance of its segments based on revenue, and measure 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 include cash and cash equivalents, prepaid expenses and other current assets, property and equipment. The following provides operating information about the Company’s reportable segments for the periods presented:
 
 
 
Successor
 
 
Predecessor
 
(in thousands)
 
December 6,
2018
through
January 31,
2019
 
 
November 1,
2018
through
December 5,
2018
 
 
November 1,
2017
through
January 31,
2018
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
24,067
 
 
$
16,624
 
 
$
35,419
 
Camfaud
 
 
5,815
 
 
 
5,143
 
 
 
10,728
 
Eco-Pan
 
 
4,088
 
 
 
2,629
 
 
 
6,655
 
 
 
$
33,970
 
 
$
24,396
 
 
$
52,802
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
5,536
 
 
$
(24,565
)
 
$
8,623
 
Camfaud
 
 
133
 
 
 
1,587
 
 
 
2,849
 
Eco-Pan
 
 
1,581
 
 
 
388
 
 
 
2,954
 
Corporate
 
 
321
 
 
 
180
 
 
 
625
 
 
 
$
7,571
 
 
$
(22,410
)
 
$
15,051
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
(5,134
)
 
$
(1,154
)
 
$
(4,017
)
Camfaud
 
 
(458
)
 
 
(490
)
 
 
(1,070
)
Eco-Pan
 
 
-
 
 
 
-
 
 
 
-
 
Corporate
 
 
-
 
 
 
-
 
 
 
-
 
 
 
$
(5,592
)
 
$
(1,644
)
 
$
(5,087
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
(4,424
)
 
$
(27,354
)
 
$
1,223
 
Camfaud
 
 
(1,963
)
 
 
207
 
 
 
(222
)
Eco-Pan
 
 
(291
)
 
 
225
 
 
 
2,449
 
Corporate
 
 
283
 
 
 
155
 
 
 
564
 
 
 
$
(6,395
)
 
$
(26,767
)
 
$
4,014
 
 
 
 
 
 
Successor
 
 
Predecessor
 
(in thousands)
 
December 6,
2018
through
January 31,
2019
 
 
November 1,
2018
through
December 5,
2018
 
 
November 1,
2017
through
January 31,
2018
 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
4,826
 
 
$
1,635
 
 
$
3,383
 
Camfaud
 
 
1,638
 
 
 
890
 
 
 
2,001
 
Eco-Pan
 
 
1,872
 
 
 
163
 
 
 
505
 
Corporate
 
 
38
 
 
 
25
 
 
 
61
 
 
 
$
8,374
 
 
$
2,713
 
 
$
5,950
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction costs including debt extinguishment
 
 
 
 
 
 
 
 
 
      
Corporate
 
$
-
 
 
$
30,562
 
 
$
8
 
 
 
$
-
 
 
$
30,562
 
 
$
8
 
 
Total assets by segment for the periods presented are as follows:
 
 
 
Successor
 
 
Predecessor
 
 
 
January 31,
 
 
October 31,
 
(in thousands)
 
2019
 
 
2018
 
Total Assets
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
501,010
 
 
$
277,937
 
Camfaud
 
 
67,770
 
 
 
39,167
 
Eco-Pan
 
 
142,240
 
 
 
32,781
 
Corporate
 
 
24,428
 
 
 
20,259
 
 
 
$
735,448
 
 
$
370,144
 
 
The U.S. and U.K. were the only regions that accounted for more than
10%
of the Company’s revenues for the periods presented. There was
no
single customer that accounted for more than
10%
of revenues for the periods presented. Revenues for the periods presented and long lived assets as of
January 31, 2019
and
October 31, 2018
are as follows:
 
   
Successor
    
Predecessor
  
(in thousands)
  
December 6,
2018
through
January 31,
2019
    
November 1,
2018
through
December 5,
2018
    
November 1,
2017
through
January 31,
2018
  
Revenues
                        
U.S.
   $
28,155
     $
19,253
     $
42,074
  
U.K.
    
5,815
      
5,143
      
10,728
  
    $
33,970
     $
24,396
     $
52,802
  
 
   
Successor
    
Predecessor
  
   
January 31,
   
October 31,
  
(in thousands)
  
2019
    
2018
  
Long Lived Assets
                
U.S.
   $
188,290
     $
167,368
  
U.K.
    
39,850
      
34,547
  
    $
228,140
     $
201,915
  
Note
17.
Segment Reporting
 
The Company conducts its business through the following reportable segments based on geography and the nature of services sold: U.S Concrete pumping – Brundage-Bone, U.K. Concrete Pumping – Camfaud, Concrete Waste Management Services – Eco-Pan. The classifications are defined as follows:
 
●
U.S. Concrete Pumping – Brundage-Bone (Brundage-Bone) – consists of concrete pumping services sold to customers in the U.S.
 
●
U.K. Concrete Pumping – Camfaud (Camfaud) – consists of concrete pumping services sold to customers in the U.K, which represents foreign operations.
 
●
Concrete Waste Management Services – Eco-Pan (Eco-Pan) – 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.
 
The accounting policies of the reportable segments are the same as those described in Note
2.
The Chief Operating Decision Maker (CODM) evaluates the performance of its segments based on revenue, and measures segment performance based upon segment EBITDA (earnings before income, taxes, depreciation and amortization).
 
Non-allocated interest expense and various other administrative costs are reflected in Corporate. Corporate assets include cash, prepaid expenses and other current assets, property and equipment.
 
The following provides operating information about the Company’s reportable segments for the years ended
October 31, 2018,
2017
and
2016:
 
   
2018
    
2017
    
2016
  
Revenue:
  
 
 
 
  
 
 
 
  
 
 
 
Brundage-Bone
  
$
164,305,836
     $
151,194,931
     $
153,488,134
  
Camfaud
  
 
50,448,085
      
36,433,763
      
-
  
Eco-Pan
  
 
28,469,346
      
23,581,905
      
18,937,413
  
   
 
243,223,267
      
211,210,599
      
172,425,547
  
 
EBITDA
 
2018
 
 
2017
 
 
2016
 
Brundage-Bone
 
$
34,966,513
 
 
$
36,925,969
 
 
$
43,763,760
 
Camfaud
 
 
15,753,598
 
 
 
10,827,292
 
 
 
-
 
Eco-Pan
 
 
12,558,725
 
 
 
9,912,446
 
 
 
7,560,512
 
Corporate
 
 
2,366,179
 
 
 
(3,093,897
)
 
 
1,188,480
 
 
 
$
65,645,015
 
 
$
54,571,810
 
 
$
52,512,752
 
 
Interest income (expense)
 
2018
 
 
2017
 
 
2016
 
Brundage-Bone
 
$
(17,247,250
)
 
$
(15,389,779
)
 
$
(15,156,744
)
Camfaud
 
 
(4,172,959
)
 
 
(3,634,811
)
 
 
-
 
Eco-Pan
 
 
(980
)
 
 
870
 
 
 
-
 
Corporate
 
 
(3,558
)
 
 
(3,724,128
)
 
 
(4,359,333
)
 
 
$
(21,424,747
)
 
$
(22,747,848
)
 
$
(19,516,077
)
 
Depreciation and amortization
 
2018
 
 
2017
 
 
2016
 
Brundage-Bone
 
$
15,237,041
 
 
$
18,275,871
 
 
$
19,420,137
 
Camfaud
 
 
8,059,512
 
 
 
6,336,369
 
 
 
-
 
Eco-Pan
 
 
2,078,137
 
 
 
2,315,298
 
 
 
2,675,954
 
Corporate
 
 
247,856
 
 
 
226,487
 
 
 
213,452
 
 
 
$
25,622,546
 
 
$
27,154,025
 
 
$
22,309,543
 
 
Income tax (benefit) expense
 
2018
 
 
2017
 
 
2016
 
Brundage-Bone
 
$
(11,472,368
)
 
$
3,109,635
 
 
$
4,603,472
 
Camfaud
 
 
502,974
 
 
 
245,424
 
 
 
-
 
Eco-Pan
 
 
845,572
 
 
 
2,791,138
 
 
 
703,733
 
Corporate
 
 
339,702
 
 
 
(2,389,539
)
 
 
(853,664
)
 
 
$
(9,784,120
)
 
$
3,756,658
 
 
$
4,453,541
 
 
Transaction costs
 
2018
 
 
2017
 
 
2016
 
Brundage-Bone
 
$
7,589,825
 
 
$
4,489,517
 
 
$
3,691,466
 
 
 
$
7,589,825
 
 
$
4,489,517
 
 
$
3,691,466
 
 
Net income (loss)
 
2018
 
 
2017
 
 
2016
 
Brundage-Bone
 
$
13,954,590
 
 
$
150,684
 
 
$
4,583,407
 
Camfaud
 
 
3,018,153
 
 
 
610,688
 
 
 
-
 
Eco-Pan
 
 
9,634,036
 
 
 
4,806,880
 
 
 
4,180,825
 
Corporate
 
 
1,775,063
 
 
 
(4,654,973
)
 
 
(2,530,641
)
 
 
$
28,381,842
 
 
$
913,279
 
 
$
6,233,591
 
 
 
 
2018
 
 
2017
 
 
2016
 
Total Assets
 
 
 
 
 
 
 
 
 
 
 
 
Brundage-Bone
 
$
277,935,739
 
 
$
244,553,325
 
 
$
209,074,489
 
Camfaud
 
 
39,167,461
 
 
 
44,866,267
 
 
 
-
 
Eco-Pan
 
 
32,781,488
 
 
 
28,961,354
 
 
 
26,738,362
 
Corporate
 
 
20,259,056
 
 
 
20,465,681
 
 
 
19,116,618
 
 
 
$
370,143,744
 
 
$
338,846,627
 
 
$
254,929,469
 
 
The following provides a reconciliation from the Company’s measure of segment performance, EBITDA, to income before taxes for the years ended
October 31, 2018
and
2017:
 
Income Before Taxes to EBITDA Reconciliation
 
2018
 
 
2017
 
 
2016
 
Income before taxes
 
$
18,597,722
 
 
$
4,669,937
 
 
$
10,687,132
 
Depreciation and amortization
 
 
25,622,546
 
 
 
27,154,025
 
 
 
22,309,543
 
Interest expense
 
 
21,424,747
 
 
 
22,747,848
 
 
 
19,516,077
 
EBITDA
 
$
65,645,015
 
 
$
54,571,810
 
 
$
52,512,752
 
 
The U.S. and U.K. were the only regions that accounted for more than
10
 percent of the Company’s revenues in
2018,
2017
and
2016.
There was
no
single customer that accounted for more than
10
 percent of revenues in
2018,
2017
and
2016.
Revenues for
2018,
2017
and
2016
and long-lived assets as of
October 31, 2018
and
2017
were as follows:
 
Revenues
 
2018
 
 
2017
 
 
2016
 
    U.S.
 
$
192,775,182
 
 
$
174,776,836
 
 
$
172,425,547
 
    U.K.
 
 
50,448,085
 
 
 
36,433,763
 
 
 
-
 
 
 
$
243,223,267
 
 
$
211,210,599
 
 
$
172,425,547
 
 
Long Lived Assets
 
2018
 
 
2017
 
 
2016
 
    U.S.
 
$
167,368,850
 
 
$
138,012,093
 
 
$
138,686,332
 
    U.K.
 
 
34,546,590
 
 
 
37,530,042
 
 
 
-
 
 
 
$
201,915,440
 
 
$
175,542,135
 
 
$
138,686,332