Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Segment Reporting

v3.20.1
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
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:
 
   
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
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
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