Operating Segments

3 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Operating Segments

Operating Segments

The Company manages its business under the following three operating segments:

Energy: The Energy operating segment provides services to a range of clients including energy companies, utilities, other commercial entities, and state and federal governments. The Company's services include program management, engineer/procure/construct projects, design, and consulting. The Company's typical projects involve upgrades and new construction for electrical transmission and distribution systems, energy efficiency program design and management, and alternative energy development. This operating segment also provides services to support energy savings projects for state government entities and end users.

Environmental: The Environmental operating segment provides services to a wide range of clients, including industrial, transportation, energy and natural resource companies, as well as federal, state and municipal agencies. The Environmental operating segment is organized to focus on key areas of demand including: environmental management of buildings, air quality measurements and modeling of potential air pollution impacts, assessment and remediation of contaminated sites and buildings, solid waste management, environmental compliance auditing and strategic due diligence, environmental licensing and permitting of a wide variety of projects, and natural and cultural resource assessment and management.

Infrastructure: The Infrastructure operating segment provides services related to the expansion of infrastructure capacity, the rehabilitation of overburdened and deteriorating infrastructure systems, and the management of risks related to security of public and private facilities. The Company's client base is predominantly state and municipal governments as well as selected commercial developers. Primary services include: roadway, bridge and related surface transportation design; structural design of bridges; construction engineering inspection and construction management for roads and bridges; civil engineering for municipalities and public works departments; geotechnical engineering services; and security services including assessments, design and construction management on projects including ports, bridges, airports and correctional facilities. Major markets include the northeast United States, Texas, Louisiana and California.

The Company's chief operating decision maker is its CEO. The Company's CEO manages the business by evaluating the financial results of the three operating segments focusing primarily on segment revenue and segment profit. The Company utilizes segment revenue and segment profit because it believes they provide useful information for effectively allocating resources among operating segments; evaluating the health of its operating segments based on metrics that management can actively influence; and gauging its investments and its ability to service, incur or pay down debt. Specifically, the Company's CEO evaluates segment revenue and segment profit and assesses the performance of each operating segment based on these measures, as well as, among other things, the prospects of each of the operating segments and how they fit into the Company's overall strategy. The Company's CEO then decides how resources should be allocated among its operating segments. The Company does not track its assets by operating segment, and consequently, it is not practical to show assets by operating segment. Segment profit includes all operating expenses except the following: costs associated with providing corporate shared services (including certain depreciation and amortization), goodwill and intangible asset write-offs, stock-based compensation expense and amortization of intangible assets. Depreciation expense is primarily allocated to operating segments based upon their respective use of total operating segment office space. Assets solely used by Corporate are not allocated to the operating segments. Inter-segment balances and transactions are not material. The accounting policies of the operating segments are the same as those for the Company as a whole, except as discussed herein.

The following tables present summarized financial information for the Company's operating segments (as of and for the periods noted below): 

	Energy		Environmental		Infrastructure		Total
Three months ended September 30, 2011:
Gross revenue	$	26,124	$	61,426	$	15,337	$	102,887
Net service revenue	20,597		39,921		11,986		72,504
Segment profit	4,239		8,835		2,580		15,654
Depreciation and amortization	293		478		125		896
Three months ended September 24, 2010:
Gross revenue	$	17,125	$	46,780	$	14,670	$	78,575
Net service revenue	14,934		31,174		10,809		56,917
Segment profit	2,269		7,544		1,629		11,442
Depreciation and amortization	240		449		150		839

	Three Months Ended
Gross revenue	September 30, 2011			September 24, 2010
Gross revenue from reportable operating segments	$	102,887		$	78,575
Reconciling items (1)	848			243
Total consolidated gross revenue	$	103,735		$	78,818
Net service revenue
Net service revenue from reportable operating segments	$	72,504		$	56,917
Reconciling items (1)	951			673
Total consolidated net service revenue	$	73,455		$	57,590
Income from operations before taxes and equity in losses
Segment profit	$	15,654		$	11,442
Corporate shared services (2)	(9,373		)	(6,975		)
Arena Towers litigation reserve	11,224			—
Stock-based compensation expense	(1,499		)	(721		)
Unallocated depreciation and amortization	(466		)	(389		)
Interest expense	(181		)	(197		)
Total consolidated income from operations before taxes and equity in losses	$	15,359		$	3,160
Depreciation and amortization
Depreciation and amortization from reportable operating segments	$	896		$	839
Unallocated depreciation and amortization	466			389
Total consolidated depreciation and amortization	$	1,362		$	1,228

(1) Amounts represent certain unallocated corporate amounts not considered in the CODM's evaluation of operating segment performance.

(2) Corporate shared services consist of centrally managed functions in the following areas: accounting, treasury, information technology, legal, human resources, marketing, internal audit and executive management such as the CEO and various executives. These costs and other items of a general corporate nature are not allocated to the Company’s three operating segments.