Quarterly report [Sections 13 or 15(d)]

Note 17 - Segment Reporting

v3.26.1
Note 17 - Segment Reporting
 6 Months Ended
Apr. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 17. Segment Reporting

 

The Company conducts business through three reportable segments based on geography and the nature of services sold, 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 of our Annual Report.

 

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
 

●

Other expense (income), net
 

●

Other adjustments

 

 

 

The following tables summarize the Company’s segment results, provide a reconciliation of total segment adjusted EBITDA to loss before income taxes and discloses other segmented balances or expenditures for the three and six months ending April 30, 2026 and 2025:

 

   

Three Months Ended April 30, 2026

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 71,530     $ 20,344     $ 14,922             $ 106,796  
                                         

Segment expenses:

                                        

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

     23,433       3,558       5,221               32,212  

Repairs & maintenance (2)

     6,211       1,027       1,000               8,238  

Fuel (2)

     4,422       990       1,502               6,914  

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

     8,012       2,637       1,416               12,065  

Other segment items (5)

     8,463       2,317       1,951               12,731  

Total segment adjusted EBITDA

   $ 20,989     $ 9,815     $ 3,832             $ 34,636  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 12,880  

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

                                     8,209  

Unallocated corporate expenses

                                     8,233  

Stock-based compensation

                                     1,022  

Other income, net

                                     (36 )

Other adjustments

                                     443  

Income before taxes

                                   $ 3,885  
                                         

Other segment disclosures:

                                        

Capital expenditures

   $ 4,162     $ 3,448     $ 13,633     $ -     $ 21,243  

 

 

(1)

For the three months ended April 30, 2026, intersegment revenue of approximately $30,000 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.

 

 

   

Three Months Ended April 30, 2025

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 62,109     $ 18,057     $ 13,792             $ 93,958  
                                         

Segment expenses:

                                        

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

     20,901       3,243       4,408               28,552  

Repairs & maintenance (2)

     4,174       1,126       717               6,017  

Fuel (2)

     3,385       741       1,251               5,377  

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

     7,637       2,359       1,492               11,488  

Other segment items (5)

     7,557       2,087       1,875               11,519  

Total segment adjusted EBITDA

   $ 18,455     $ 8,501     $ 4,049             $ 31,005  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 13,584  

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

                                     8,294  

Unallocated corporate expenses

                                     8,508  

Stock-based compensation

                                     538  

Other income, net

                                     (28 )

Other adjustments

                                     115  

Loss before taxes

                                   $ (6 )
                                         

Other segment disclosures:

                                        

Capital expenditures

   $ 4,527     $ 4,262     $ 4,827     $ 34     $ 13,650  

 

 

(1)

For the three months ended April 30, 2025, intersegment revenue of $0.1 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.

 

 

 

   

Six Months Ended April 30, 2026

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 131,471     $ 38,416     $ 27,470             $ 197,357  
                                         

Segment expenses:

                                        

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

     44,441       6,836       9,361               60,638  

Repairs & maintenance (2)

     11,485       1,913       1,885               15,283  

Fuel (2)

     7,513       1,700       2,566               11,779  

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

     15,068       5,050       2,906               23,024  

Other segment items (5)

     17,111       4,727       3,845               25,683  

Total segment adjusted EBITDA

   $ 35,853     $ 18,190     $ 6,907             $ 60,950  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 25,808  

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

                                     16,291  

Unallocated corporate expenses

                                     16,520  

Stock-based compensation

                                     1,640  

Other income, net

                                     (69 )

Other adjustments

                                     419  

Income before taxes

                                   $ 341  
                                         

Other segment disclosures:

                                        

Total assets (at period end)

   $ 713,377     $ 204,934     $ 141,501     $ (161,770 )   $ 898,042  

Capital expenditures

   $ 10,517     $ 4,700     $ 15,542     $ -     $ 30,759  

 

 

(1)

For the six months ended April 30, 2026, intersegment revenue of $0.1 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.

 

 

 

 

   

Six Months Ended April 30, 2025

  

(in thousands)

  

US Concrete Pumping

    

US Concrete Waste Management Services

    

UK Operations

    

Other / Eliminations

    

Total

  

Segment Revenue: (1)

   $ 119,022     $ 34,750     $ 26,632             $ 180,404  
                                         

Segment expenses:

                                        

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

     41,399       6,388       8,306               56,093  

Repairs & maintenance (2)

     8,538       1,828       1,616               11,982  

Fuel (2)

     6,343       1,388       2,435               10,166  

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

     15,102       4,811       2,884               22,797  

Other segment items (5)

     14,535       4,389       3,695               22,619  

Total segment adjusted EBITDA

   $ 33,105     $ 15,946     $ 7,696             $ 56,747  
                                         

Reconciliation of segment adjusted EBITDA to income before taxes:

                                        

Depreciation and amortization (6)

                                   $ 26,784  

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

                                     14,096  

Unallocated corporate expenses

                                     17,239  
Loss on debt extinguishment                                     1,392  

Stock-based compensation

                                     905  

Other income, net

                                     (62 )

Other adjustments

                                     74  

Loss before taxes

                                   $ (3,681 )
                                         

Other segment disclosures:

                                        

Total assets (at period end)

   $ 704,851     $ 195,133     $ 122,063     $ (143,257 )   $ 878,790  

Capital expenditures

   $ 6,712     $ 6,229     $ 6,505     $ 45     $ 19,491  

 

 

(1)

For the six months ended April 30, 2025, intersegment revenue of $0.2 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.