Operating Segments

6 Months Ended

Dec. 27, 2013

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 government entities. The Company's services include program management, engineer/procure/construct projects, design, and consulting. The Company's typical projects involve upgrades, design and new construction for electric transmission and distribution systems and substations; energy efficiency program design and management; and renewable energy development and power generation.

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 and facilities; air quality measurements and modeling of potential air pollution impacts; water quality and water resource management; assessment and remediation of contaminated sites and buildings; hazardous waste management; construction monitoring, inspection and management; environmental, health and safety management and sustainability advisory services; compliance auditing and strategic due diligence; environmental licensing and permitting of a wide variety of projects; and natural and cultural resource assessment, protection 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 select commercial developers. In addition, the Company provides infrastructure services on projects originating in its Energy and Environmental operating segments. Primary services include: roadway, bridge and related surface transportation design; structural design and inspection of bridges; program management; construction engineering inspection and construction management for roads and bridges; civil engineering for municipalities and public works departments; geotechnical engineering services; and security assessments, design and construction management.

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 (for the periods noted below): 

	Energy		Environmental		Infrastructure		Total
Three months ended December 27, 2013:
Gross revenue	$	40,106	$	66,420	$	16,081	$	122,607
Net service revenue	34,893		44,560		11,449		90,902
Segment profit	7,301		8,764		2,018		18,083
Depreciation and amortization	792		726		108		1,626
Three months ended December 28, 2012:
Gross revenue	$	31,618	$	58,940	$	14,142	$	104,700
Net service revenue	25,872		39,493		9,699		75,064
Segment profit	5,646		7,819		1,351		14,816
Depreciation and amortization	360		537		127		1,024

	Energy		Environmental		Infrastructure		Total
Six months ended December 27, 2013:
Gross revenue	$	73,570	$	121,942	$	32,469	$	227,981
Net service revenue	63,707		82,921		24,027		170,655
Segment profit	11,405		18,111		4,825		34,341
Depreciation and amortization	1,550		1,406		212		3,168
Six months ended December 28, 2012:
Gross revenue	$	63,792	$	117,539	$	30,227	$	211,558
Net service revenue	51,515		76,869		20,945		149,329
Segment profit	11,646		14,734		3,418		29,798
Depreciation and amortization	693		1,078		249		2,020

	Three Months Ended						Six Months Ended
Gross revenue	December 27, 2013			December 28, 2012			December 27, 2013			December 28, 2012
Gross revenue from reportable operating segments	$	122,607		$	104,700		$	227,981		$	211,558
Reconciling items (1)	(15		)	(230		)	1,185			1,198
Total consolidated gross revenue	$	122,592		$	104,470		$	229,166		$	212,756
Net service revenue
Net service revenue from reportable operating segments	$	90,902		$	75,064		$	170,655		$	149,329
Reconciling items (1)	229			190			1,728			1,141
Total consolidated net service revenue	$	91,131		$	75,254		$	172,383		$	150,470
Income from operations before taxes
Segment profit from reportable operating segments	$	18,083		$	14,816		$	34,341		$	29,798
Corporate shared services (2)	(11,021		)	(8,864		)	(21,236		)	(17,789		)
Stock-based compensation expense	(1,243		)	(984		)	(2,398		)	(1,893		)
Unallocated depreciation and amortization	(624		)	(569		)	(1,258		)	(1,111		)
Interest expense	(38		)	(80		)	(130		)	(192		)
Total consolidated income from operations before taxes	$	5,157		$	4,319		$	9,319		$	8,813
Depreciation and amortization
Depreciation and amortization from reportable operating segments	$	1,626		$	1,024		$	3,168		$	2,020
Unallocated depreciation and amortization	624			569			1,258			1,111
Total consolidated depreciation and amortization	$	2,250		$	1,593		$	4,426		$	3,131

(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.