Operating Segments

9 Months Ended

Mar. 28, 2014

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 March 28, 2014:
Gross revenue	$	44,480	$	60,750	$	14,223	$	119,453
Net service revenue	34,632		41,939		10,403		86,974
Segment profit	7,908		7,787		1,413		17,108
Depreciation and amortization	835		633		106		1,574
Three months ended March 29, 2013:
Gross revenue	$	34,505	$	59,664	$	14,794	$	108,963
Net service revenue	29,145		41,423		11,604		82,172
Segment profit	5,185		7,253		2,788		15,226
Depreciation and amortization	564		651		95		1,310

	Energy		Environmental		Infrastructure		Total
Nine months ended March 28, 2014:
Gross revenue	$	118,050	$	182,692	$	46,692	$	347,434
Net service revenue	98,339		124,860		34,430		257,629
Segment profit	19,313		25,898		6,238		51,449
Depreciation and amortization	2,385		2,039		318		4,742
Nine months ended March 29, 2013:
Gross revenue	$	98,297	$	177,203	$	45,021	$	320,521
Net service revenue	80,660		118,292		32,549		231,501
Segment profit	16,831		21,987		6,206		45,024
Depreciation and amortization	1,257		1,729		344		3,330

	Three Months Ended						Nine Months Ended
Gross revenue	March 28, 2014			March 29, 2013			March 28, 2014			March 29, 2013
Gross revenue from reportable operating segments	$	119,453		$	108,963		$	347,434		$	320,521
Reconciling items (1)	1,383			843			2,568			2,041
Total consolidated gross revenue	$	120,836		$	109,806		$	350,002		$	322,562
Net service revenue
Net service revenue from reportable operating segments	$	86,974		$	82,172		$	257,629		$	231,501
Reconciling items (1)	1,107			872			2,835			2,013
Total consolidated net service revenue	$	88,081		$	83,044		$	260,464		$	233,514
Income from operations before taxes
Segment profit from reportable operating segments	$	17,108		$	15,226		$	51,449		$	45,024
Corporate shared services (2)	(12,895		)	(10,424		)	(34,131		)	(28,213		)
Stock-based compensation expense	(1,115		)	(892		)	(3,513		)	(2,785		)
Unallocated depreciation and amortization	(587		)	(518		)	(1,845		)	(1,629		)
Interest expense	(22		)	(78		)	(152		)	(270		)
Total consolidated income from operations before taxes	$	2,489		$	3,314		$	11,808		$	12,127
Depreciation and amortization
Depreciation and amortization from reportable operating segments	$	1,574		$	1,310		$	4,742		$	3,330
Unallocated depreciation and amortization	587			518			1,845			1,629
Total consolidated depreciation and amortization	$	2,161		$	1,828		$	6,587		$	4,959

(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.