Operating Segments

6 Months Ended

Dec. 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 electric 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, industrial infrastructure, 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 ("CODM") is its Chief Executive Officer (“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 December 30, 2011:
Gross revenue	$	30,790	$	60,229	$	13,964	$	104,983
Net service revenue	23,836		38,577		10,550		72,963
Segment profit	6,548		7,266		1,803		15,617
Depreciation and amortization	289		505		126		920
Three months ended December 24, 2010:
Gross revenue	$	22,566	$	45,928	$	14,601	$	83,095
Net service revenue	17,804		31,665		10,219		59,688
Segment profit	4,582		7,725		1,173		13,480
Depreciation and amortization	238		453		160		851

	Energy		Environmental		Infrastructure		Total
Six months ended December 30, 2011:
Gross revenue	$	56,914	$	121,655	$	29,301	$	207,870
Net service revenue	44,433		78,498		22,536		145,467
Segment profit	10,787		16,101		4,383		31,271
Depreciation and amortization	582		983		251		1,816
Six months ended December 24, 2010:
Gross revenue	$	39,691	$	92,708	$	29,271	$	161,670
Net service revenue	32,738		62,839		21,028		116,605
Segment profit	6,851		15,269		2,802		24,922
Depreciation and amortization	478		902		310		1,690

	Three Months Ended						Six Months Ended
Gross revenue	December 30, 2011			December 24, 2010			December 30, 2011			December 24, 2010
Gross revenue from reportable operating segments	$	104,983		$	83,095		$	207,870		$	161,670
Reconciling items (1)	395			1,196			1,243			1,439
Total consolidated gross revenue	$	105,378		$	84,291		$	209,113		$	163,109
Net service revenue
Net service revenue from reportable operating segments	$	72,963		$	59,688		$	145,467		$	116,605
Reconciling items (1)	933			635			1,884			1,308
Total consolidated net service revenue	$	73,896		$	60,323		$	147,351		$	117,913
Income from operations before taxes and equity in earnings
Segment profit	$	15,617		$	13,480		$	31,271		$	24,922
Corporate shared services (2)	(9,142		)	(9,534		)	(18,515		)	(16,509		)
Arena Towers litigation	(163		)	—			11,061			—
Stock-based compensation expense	(906		)	(658		)	(2,405		)	(1,379		)
Unallocated depreciation and amortization	(514		)	(382		)	(980		)	(771		)
Interest expense	(175		)	(218		)	(356		)	(415		)
Total consolidated income from operations before taxes and equity in earnings	$	4,717		$	2,688		$	20,076		$	5,848
Depreciation and amortization
Depreciation and amortization from reportable operating segments	$	920		$	851		$	1,816		$	1,690
Unallocated depreciation and amortization	514			382			980			771
Total consolidated depreciation and amortization	$	1,434		$	1,233		$	2,796		$	2,461

(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.