Concrete Pumping Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 18 - Segment Reporting

Note 18 - Segment Reporting

12 Months Ended

Oct. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

18.

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. At this time, 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)	December 6, 2018 through October 31, 2019			November 1, 2018 through December 5, 2018			Year Ended October 31, 2018
Revenue
U.S. Concrete Pumping	$	187,031		$	16,659		$	164,306
U.K. Operations		44,021			5,143			50,448
U.S. Concrete Waste Management Services		27,779			2,628			28,469
Corporate		2,258			242			-
Intersegment		(2,524	)		(276	)		-
	$	258,565		$	24,396		$	243,223

(Loss) income before income taxes
U.S. Concrete Pumping	$	(17,689	)	$	(27,354	)	$	2,482
U.K. Operations		1,661			207			3,521
U.S. Concrete Waste Management Services		965			225			10,480
Corporate		1,848			155			2,114
	$	(13,215	)	$	(26,767	)	$	18,597

	Successor			Predecessor
(in thousands)	December 6, 2018 through October 31, 2019			November 1, 2018 through December 5, 2018			Year Ended October 31, 2018
EBITDA
U.S. Concrete Pumping	$	46,729		$	(24,565	)	$	34,966
U.K. Operations		13,173			1,587			15,754
U.S. Concrete Waste Management Services		11,838			388			12,559
Corporate		2,577			180			2,366
	$	74,317		$	(22,410	)	$	65,645

Consolidated EBITDA reconciliation
Net income (loss)	$	(9,912	)	$	(22,575	)	$	28,381
Interest expense, net		34,880			1,644			21,425
Income tax expense (benefit)		(3,303	)		(4,192	)		(9,784	)
Depreciation and amortization		52,652			2,713			25,623
EBITDA	$	74,317		$	(22,410	)	$	65,645

	Successor			Predecessor
(in thousands)	December 6, 2018 through October 31, 2019			November 1, 2018 through December 5, 2018			Year Ended October 31, 2018
Depreciation and amortization
U.S. Concrete Pumping	$	32,245		$	1,635		$	15,237
U.K. Operations		8,807			890			8,060
U.S. Concrete Waste Management Services		10,871			163			2,078
Corporate		729			25			248
	$	52,652		$	2,713		$	25,623

Interest expense, net
U.S. Concrete Pumping	$	(32,173	)	$	(1,154	)	$	(17,247	)
U.K. Operations		(2,705	)		(490	)		(4,173	)
U.S. Concrete Waste Management Services		(2	)		-			(1	)
Corporate		-			-			(4	)
	$	(34,880	)	$	(1,644	)	$	(21,425	)

Transaction costs including transaction-related debt extinguishment
U.S. Concrete Pumping	$	1,521		$	-		$	7,590
Corporate		-			30,562			-
	$	1,521		$	30,562		$	7,590

For the Successor period from

December 6, 2018

through

October 31, 2019,

capital expenditures for the U.S. Concrete Pumping, U.K. Operations and U.S Concrete Waste Management Services segments were

$22.4

million,

$4.8

million and

$5.6

million, respectively.

For the fiscal year ended

October 31, 2018,

capital expenditures for the U.S. Concrete Pumping, U.K. Operations and U.S Concrete Waste Management Services segments were

$22.7

million,

$2.3

million and

$3.5

million, respectively.

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

	Successor			Predecessor
	October 31,			October 31,
(in thousands)	2019			2018
Total Assets
U.S. Concrete Pumping	$	637,384		$	277,936
U.K. Operations		138,435			39,167
U.S. Concrete Waste Management Services		137,646			32,782
Corporate		24,223			20,259
Intersegment		(66,323	)		-
	$	871,365		$	370,144

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

October 31, 2019

and

October 31, 2018

are as follows:

	Successor		Predecessor
(in thousands)	December 6, 2018 through October 31, 2019		November 1, 2018 through December 5, 2018		Year Ended October 31, 2018
Revenues
U.S.	$	214,544	$	19,253	$	192,775
U.K.		44,021		5,143		50,448
	$	258,565	$	24,396	$	243,223

	Successor		Predecessor
	October 31,		October 31,
(in thousands)	2019		2018
Long Lived Assets
U.S.	$	263,363	$	167,369
U.K.		44,052		34,546
	$	307,415	$	201,915