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

9 Months Ended

Jul. 31, 2019

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. Concrete Pumping – 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. This represents the Company’s foreign operations.
	●	Concrete Waste Management Services ("Eco-Pan") – 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.

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			Successor			Predecessor
(in thousands)	Three Months Ended July 31, 2019			Three Months Ended July 31, 2018			December 6, 2018 through July 31, 2019			November 1, 2018 through December 5, 2018			Nine Months Ended July 31, 2018
Revenue
U.S. Concrete Pumping	$	58,354		$	45,288		$	124,969		$	16,659		$	118,424
U.K. Concrete Pumping		12,492			13,877			30,996			5,143			36,705
Eco-Pan		7,967			7,548			18,806			2,628			20,885
Corporate		626			625			1,634			242			1,875
Intersegment		(784	)		(689	)		(1,792	)		(276	)		(2,035	)
	$	78,655		$	66,649		$	174,613		$	24,396		$	175,854

(Loss) income before income taxes
U.S. Concrete Pumping	$	(1,050	)	$	2,287		$	(14,946	)	$	(27,354	)	$	5,268
U.K. Concrete Pumping		1,353			959			290			207			1,808
Eco-Pan		329			2,826			(85	)		225			7,665
Corporate		208			454			1,113			155			1,620
	$	840		$	6,526		$	(13,628	)	$	(26,767	)	$	16,361

EBITDA
U.S. Concrete Pumping	$	17,934		$	7,851		$	29,283		$	(24,565	)	$	28,699
U.K. Concrete Pumping		5,013			3,482			9,445			1,587			11,009
Eco-Pan		3,587			3,117			7,748			388			9,209
Corporate		626			520			1,633			180			1,809
	$	27,160		$	14,969		$	48,109		$	(22,410	)	$	50,726

	Successor			Predecessor			Successor			Predecessor
(in thousands)	Three Months Ended July 31, 2019			Three Months Ended July 31, 2018			December 6, 2018 through July 31, 2019			November 1, 2018 through December 5, 2018			Nine Months Ended July 31, 2018
Depreciation and amortization
U.S. Concrete Pumping	$	9,938		$	1,115		$	21,471		$	1,635		$	10,904
U.K. Concrete Pumping		2,864			1,498			7,161			890			6,042
Eco-Pan		3,257			291			7,832			163			1,544
Corporate		418			62			520			25			185
	$	16,477		$	2,967		$	36,984		$	2,713		$	18,675

Interest expense, net
U.S. Concrete Pumping	$	(9,046	)	$	(4,449	)	$	(22,758	)	$	(1,154	)	$	(12,527	)
U.K. Concrete Pumping		(796	)		(1,024	)		(1,994	)		(490	)		(3,159	)
Eco-Pan		(1	)		(0	)		(1	)		-			-
Corporate		-			(4	)		-			-			(4	)
	$	(9,843	)	$	(5,477	)	$	(24,753	)	$	(1,644	)	$	(15,690	)

Transaction costs including debt extinguishment
U.S. Concrete Pumping	$	1,458		$	1,395		$	1,458		$	-		$	-
Corporate		(1,282	)		-			-			30,562			2,520
	$	176		$	1,395		$	1,458		$	30,562		$	2,520

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

	Successor			Predecessor
	July 31,			October 31,
(in thousands)	2019			2018
Total Assets
U.S. Concrete Pumping	$	633,934		$	278,027
U.K. Concrete Pumping		130,936			79,832
Eco-Pan		135,018			32,781
Corporate		25,494			20,260
Intersegment		(60,020	)		(40,756	)
	$	865,361		$	370,144

The U.S. and U.K. were the only regions that accounted for more than

10%

of the Company’s revenues for the periods presented. There was

single customer that accounted for more than

10%

of revenues for the periods presented. Revenues for the periods presented and long lived assets as of

July 31, 2019

and

October 31, 2018

are as follows:

	Successor		Predecessor		Successor		Predecessor
(in thousands)	Three Months Ended July 31, 2019		Three Months Ended July, 2018		December 6, 2018 through July 31, 2019		November 1, 2018 through December 5, 2018		Nine Months Ended July 31, 2018
Revenues
U.S.	$	66,163	$	52,771	$	143,617	$	19,253	$	139,149
U.K.		12,492		13,877		30,996		5,143		36,705
	$	78,655	$	66,649	$	174,613	$	24,396	$	175,854

	Successor		Predecessor
	July 31,		October 31,
(in thousands)	2019		2018
Property, plant and equipment, net
U.S.	$	256,964	$	167,368
U.K.		40,121		34,547
	$	297,085	$	201,915