Segment Information and Geographical Data

3 Months Ended

Mar. 28, 2025

Segment Reporting [Abstract]

Segment Information and Geographical Data

11. Segment Information and Geographical Data

The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, the Company determined it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and AI Enablement practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. The SAP Solutions reportable segment is the only segment that contains software-related revenue.

The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer (CEO), reviews the financial information presented for purposes of allocating resources and evaluating segment financial performance. The CODM primarily uses revenue before reimbursement generated by the segment, cost of sales, gross margin, selling, general and administrative costs and contribution margin as a measure of profitability for each of its segments as these measures provide a comprehensive view of the segments’ financial performance. The measurement criteria for segment profit or loss are substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Unallocated costs include corporate costs related to the administrative functions that are performed in a centralized manner and that are not attributable to a particular segment, depreciation and amortization expense, interest expense, non-cash compensation expense and any non-recurring transactions. Segment information related to assets has been omitted as the chief operating decision maker does not receive discrete financial information regarding assets at the segment level. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

11. Segment Information and Geographical Data (continued)

The tables below set forth information about the Company’s operating segments for the three months ended March 28, 2025 and March 29, 2024, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

	Quarter Ended
	March 28,		March 29,
	2025		2024
Global S&BT:
Revenue before reimbursements*	$	42,642	$	40,254
Cost of sales		22,325		23,284
Gross margin		20,317		16,970
Selling, general and administrative costs		7,531		6,917
Contribution margin		12,786		10,053
Oracle Solutions:
Revenue before reimbursements*	$	20,396	$	21,068
Cost of sales		13,695		13,998
Gross margin		6,701		7,070
Selling, general and administrative costs		2,334		1,809
Contribution margin		4,367		5,261
SAP Solutions:
Revenue before reimbursements*	$	13,193	$	14,406
Cost of sales		7,139		7,074
Gross margin		6,054		7,332
Selling, general and administrative costs		1,804		2,450
Contribution margin		4,250		4,882
Total Company:
Total segment contribution margin		21,403		20,196
Items not allocated to segment level:
Corporate general and administrative expenses**		5,656		5,028
Non-cash stock based compensation expense		2,765		2,599
Stock price award program compensation expense***		5,142		-
Acquisition-related cash compensation expense		308		-
Acquisition-related non-cash stock based compensation expense		1,765		-
Acquisition-related costs		194		-
Legal settlement and related costs		-		102
Depreciation expense		1,025		942
Amortization expense		145		-
Interest expense, net		202		472
Income before taxes	$	4,201	$	11,053

*Total revenue includes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin.

**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration, as well as any foreign currency gains and losses. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits, which are disaggregated in the above table.

***See Note 7.

11. Segment Information and Geographical Data (continued)

The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):

	Quarter Ended
	March 28,		March 29,
	2025		2024
United States	$	64,011	$	64,751
Europe		8,355		7,993
Other (Australia, Canada, India and Uruguay)		5,499		4,443
Total revenue	$	77,865	$	77,187

Long-lived assets are attributable to the following geographic areas (in thousands):

	March 28,		December 27,
	2025		2024
Long-lived assets:
United States	$	101,110	$	100,676
Europe (U.K., Germany and Netherlands)		14,787		14,247
Other (Australia, Canada, India and Uruguay)		862		608
Total long-lived assets	$	116,759	$	115,531

The domestic long-lived assets above include the provisional LeewayHertz allocation of goodwill of $5.1 million and intangible assets of $2.2 million. See Note 1 for additional information. As of March 28, 2025 and December 27, 2024, foreign assets included $14.4 million and $14.0 million, respectively, of goodwill related to acquisitions, of $13.5 million and $13.1 million, respectively, were attributed to the U.K. Provisional goodwill of $5.8 million related to the Company's acquisition of LeewayHertz, is included in the United States and was allocated to the Global S&BT segment.