NOTE 14 — SEGMENT REPORTING

The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker. The Company’s segments and their product and service offerings are summarized below:

Towers and Heavy Fabrications

The Company manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for multiple megawatt (“MW”) wind turbines, as well as heavy fabrications for mining and other industrial customers. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of up to approximately 550 towers, sufficient to support turbines generating more than 1,100 MW of power.

Gearing

The Company engineers, builds and remanufactures precision gears and gearing systems for O&G, wind, mining, steel and other industrial applications. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment processes in Neville Island, Pennsylvania.

Process Systems

The Company acquired Red Wolf on February 1, 2017 and as a result, aggregated its Abilene compressed natural gas (“CNG”) and heavy fabrication business with Red Wolf to form the Process Systems reportable segment. This segment provides contract manufacturing services that include build-to-spec, kitting, fabrication and inventory management for customers throughout the U.S. and in foreign countries, primarily supporting the natural gas electrical generation market.

Corporate

“Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results.

Summary financial information by reportable segment for the three and six months ended June 30, 2018 and 2017 is as follows:



	Towers and				Process
	Heavy Fabrications		Gearing		Systems		Corporate		Eliminations		Consolidated
For the Three Months Ended June 30, 2018
Revenues from external customers	$	24,001	$	8,632	$	4,148	$	—	$	—	$	36,781
Intersegment revenues		23		—		—		—		(23)		—
Net revenues		24,024		8,632		4,148		—		(23)		36,781
Operating profit (loss)		724		(662)		(5,772)		(26)		—		(5,736)
Depreciation and amortization		1,280		586		423		60		—		2,349
Capital expenditures		1,198		247		—		2		—		1,447



	Towers and				Process
	Heavy Fabrications		Gearing		Systems		Corporate		Eliminations		Consolidated
For the Three Months Ended June 30, 2017
Revenues from external customers	$	34,327	$	6,071	$	2,964	$	—	$	—	$	43,362
Operating profit (loss)		2,801		(634)		(1,099)		(1,584)		—		(516)
Depreciation and amortization		1,070		612		468		53		—		2,203
Capital expenditures		729		132		138		44		—		1,043


	Towers and				Process
	Heavy Fabrications		Gearing		Systems		Corporate		Eliminations		Consolidated
For the Six Months Ended June 30, 2018
Revenues from external customers	$	40,785	$	17,438	$	8,525	$	—	$	—	$	66,748
Intersegment revenues		23		—		—		—		(23)		—
Net revenues		40,808		17,438		8,525		—		(23)		66,748
Operating (loss)		(780)		(1,288)		(6,664)		(1,541)		—		(10,273)
Depreciation and amortization		2,537		1,176		874		119		—		4,706
Capital expenditures		1,198		467		—		11		—		1,676


	Towers and				Process
	Heavy Fabrications		Gearing		Systems		Corporate		Eliminations		Consolidated
For the Six Months Ended June 30, 2017
Revenues from external customers	$	83,222	$	9,942	$	6,258	$	—	$	—	$	99,422
Operating profit (loss)		8,649		(2,165)		(1,921)		(3,476)		—		1,087
Depreciation and amortization		2,161		1,238		801		104		—		4,304
Capital expenditures		3,389		332		410		173		—		4,304


	Total Assets as of
	June 30,		December 31,
Segments:	2018		2017
Towers and Heavy Fabrications	$	34,717	$	27,958
Gearing		34,870		37,456
Process Systems		21,201		26,442
Assets held for sale		579		580
Corporate		251,370		249,326
Eliminations		(234,084)		(229,412)
	$	108,653	$	112,350