Quarterly report pursuant to Section 13 or 15(d)

Note 16 - Segment Reporting

v3.21.1
Note 16 - Segment Reporting
6 Months Ended
Apr. 30, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 16. 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.

 

Corporate - Is primarily related to the intercompany leasing of real estate to certain of the U.S Concrete Pumping branches.

 

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:

 

   

Three Months Ended April 30,

   

Six Months Ended April 30,

 

(in thousands)

 

2021

   

2020

   

2021

   

2020

 

Revenue

                               

U.S. Concrete Pumping

  $ 56,168     $ 57,459     $ 108,484     $ 112,564  

U.K. Operations

    11,853       8,401       21,633       19,086  

U.S. Concrete Waste Management Services

    9,008       8,306       17,430       16,589  

Corporate

    625       625       1,250       1,250  

Intersegment

    (781 )     (750 )     (1,503 )     (1,509 )

Total revenue

  $ 76,873     $ 74,041     $ 147,294     $ 147,980  
                                 

Income (loss) before income taxes

                               

U.S. Concrete Pumping

  $ (1,306 )   $ (47,054 )   $ (16,806 )   $ (50,928 )

U.K. Operations

    481       (15,446 )     (227 )     (16,454 )

U.S. Concrete Waste Management Services

    1,181       893       2,034       1,464  

Corporate

    (11,039 )     3,672       (10,622 )     3,700  

Total income (loss) before income taxes

  $ (10,683 )   $ (57,935 )   $ (25,621 )   $ (62,218 )

 

   

Three Months Ended April 30,

   

Six Months Ended April 30,

 

(in thousands)

 

2021

   

2020

   

2021

   

2020

 

EBITDA

                               

U.S. Concrete Pumping

  $ 13,346     $ (28,814 )   $ 13,241     $ (13,952 )

U.K. Operations

    3,334       (12,712 )     5,413       (10,753 )

U.S. Concrete Waste Management Services

    3,504       3,553       6,704       6,803  

Corporate

    (10,831 )     3,879       (10,206 )     4,114  

Total EBITDA

  $ 9,353     $ (34,094 )   $ 15,152     $ (13,788 )
                                 

Consolidated EBITDA reconciliation

                               

Net loss

  $ (10,853 )   $ (55,714 )   $ (23,143 )   $ (58,850 )

Interest expense, net

    6,029       8,765       12,929       18,268  

Income tax expense (benefit)

    170       (2,221 )     (2,478 )     (3,368 )

Depreciation and amortization

    14,007       15,076       27,844       30,162  

Total EBITDA

  $ 9,353     $ (34,094 )   $ 15,152     $ (13,788 )

 

   

Three Months Ended April 30,

   

Six Months Ended April 30,

 

(in thousands)

 

2021

   

2020

   

2021

   

2020

 

Depreciation and amortization

                               

U.S. Concrete Pumping

  $ 9,405     $ 10,144     $ 18,677     $ 20,148  

U.K. Operations

    2,071       2,065       4,081       4,261  

U.S. Concrete Waste Management Services

    2,323       2,660       4,670       5,339  

Corporate

    208       207       416       414  

Total depreciation and amortization

  $ 14,007     $ 15,076     $ 27,844     $ 30,162  
                                 

Interest expense, net

                               

U.S. Concrete Pumping

  $ (5,247 )   $ (8,096 )   $ (11,370 )   $ (16,828 )

U.K. Operations

    (782 )     (669 )     (1,559 )     (1,440 )

U.S. Concrete Waste Management Services

    -       -       -       -  

Corporate

    -       -       -       -  

Total interest expense, net

  $ (6,029 )   $ (8,765 )   $ (12,929 )   $ (18,268 )
                                 

Transaction costs including transaction-related debt extinguishment

                               

U.S. Concrete Pumping

  $ 55     $ -     $ 84     $ -  

Corporate

    -       -       -       -  

Total transaction costs including transaction-related debt extinguishment

  $ 55     $ -     $ 84     $ -  

 

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

 

   

April 30,

   

October 31,

 

(in thousands)

 

2021

   

2020

 

Total Assets

               

U.S. Concrete Pumping

  $ 567,635     $ 570,536  

U.K. Operations

    105,393       109,726  

U.S. Concrete Waste Management Services

    141,723       140,209  

Corporate

    26,029       25,517  

Intersegment

    (69,265 )     (72,230 )

Total assets

  $ 771,515     $ 773,758  

 

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 April 30, 2021 and October 31, 2020 are as follows:

 

    Three Months Ended April 30,     Six Months Ended April 30,  

(in thousands)

 

2021

   

2020

   

2021

   

2020

 

Revenue by Geography

                               

U.S.

  $ 65,020     $ 65,640     $ 125,661     $ 128,894  

U.K.

    11,853       8,401       21,633       19,086  

Total revenue

  $ 76,873     $ 74,041     $ 147,294     $ 147,980  

 

 

 

   

April 30,

   

October 31,

 

(in thousands)

 

2021

   

2020

 

Long Lived Assets

               

U.S.

  $ 257,764     $ 260,693  

U.K.

    47,101       43,561  

Total long lived assets

  $ 304,865     $ 304,254