Concrete Pumping Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Segment Reporting

Note 17 - Segment Reporting

3 Months Ended

Jan. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

17.

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 tradenames.
	●	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 tradenames. In addition to concrete pumping, we recently started operations of waste management services in the U.K. under the Eco-Pan tradename 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 tradename.

Any differences between segment reporting and consolidated results are reflected in Corporate and/or Intersegment below.

The accounting policies of the reportable segments are the same as those described in Note

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:

	Successor						Predecessor
(in thousands)	Three Months Ended January 31, 2020			December 6, 2018 through January 31, 2019			November 1, 2018 through December 5, 2018
Revenue
U.S. Concrete Pumping	$	55,105		$	24,067		$	16,659
U.K. Operations		10,685			5,815			5,143
U.S. Concrete Waste Management Services		8,283			4,088			2,628
Corporate		625			-			242
Intersegment		(759	)		-			(276	)
	$	73,939		$	33,970		$	24,396

Income (loss) before income taxes
U.S. Concrete Pumping	$	(3,874	)	$	(4,424	)	$	(27,354	)
U.K. Operations		(1,008	)		(1,963	)		207
U.S. Concrete Waste Management Services		571			(291	)		225
Corporate		418			283			155
	$	(3,893	)	$	(6,395	)	$	(26,767	)

	Successor						Predecessor
(in thousands)	Three Months Ended January 31, 2020			December 6, 2018 through January 31, 2019			November 1, 2018 through December 5, 2018
EBITDA
U.S. Concrete Pumping	$	14,862		$	5,536		$	(24,565	)
U.K. Operations		1,958			133			1,587
U.S. Concrete Waste Management Services		3,250			1,581			388
Corporate		625			321			180
	$	20,695		$	7,571		$	(22,410	)

Consolidated EBITDA reconciliation
Net loss	$	(2,746	)	$	(3,630	)	$	(22,575	)
Interest expense, net		9,503			5,592			1,644
Income tax benefit		(1,147	)		(2,765	)		(4,192	)
Depreciation and amortization		15,085			8,374			2,713
EBITDA	$	20,695		$	7,571		$	(22,410	)

	Successor						Predecessor
(in thousands)	Three Months Ended January 31, 2020			December 6, 2018 through January 31, 2019			November 1, 2018 through December 5, 2018
Depreciation and amortization
U.S. Concrete Pumping	$	10,004		$	4,826		$	1,635
U.K. Operations		2,195			1,638			890
U.S. Concrete Waste Management Services		2,679			1,872			163
Corporate		207			38			25
	$	15,085		$	8,374		$	2,713

Interest expense, net
U.S. Concrete Pumping	$	(8,732	)	$	(5,134	)	$	(1,154	)
U.K. Operations		(771	)		(458	)		(490	)
U.S. Concrete Waste Management Services		-			-			-
Corporate		-			-			-
	$	(9,503	)	$	(5,592	)	$	(1,644	)

Transaction costs including transaction-related debt extinguishment
Corporate	$	-		$	-		$	30,562
	$	-		$	-		$	30,562

Total assets by segment for the periods presented are as follows:

	January 31,			October 31,
(in thousands)	2020			2019
Total Assets
U.S. Concrete Pumping	$	637,189		$	637,384
U.K. Operations		145,148			138,435
U.S. Concrete Waste Management Services		137,525			137,646
Corporate		24,483			24,223
Intersegment		(80,333	)		(66,323	)
	$	864,012		$	871,365

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

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

January 31, 2020

and

October 31, 2019

are as follows:

	Successor				Predecessor
(in thousands)	Three Months Ended January 31, 2020		December 6, 2018 through January 31, 2019		November 1, 2018 through December 5, 2018
Revenues
U.S.	$	63,254	$	28,155	$	19,253
U.K.		10,685		5,815		5,143
	$	73,939	$	33,970	$	24,396

	January 31,		October 31,
(in thousands)	2020		2019
Long Lived Assets
U.S.	$	266,245	$	263,363
U.K.		44,731		44,052
	$	310,976	$	307,415