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Segments
6 Months Ended
Jun. 30, 2014
Segments

Note 14. Segments

Prior to the merger with Multiband, the Company operated its business in two segments: Professional Services (PS) and Infrastructure Services (IS). Subsequent to the merger with Multiband, the Company began operating its business in two additional segments: Field Services (FS) and Other Services (Other). The Professional Services segment provides customers with highly technical services primarily related to installing, testing, and commissioning and decommissioning of core, or central office, equipment of wireless carrier networks from a variety of vendors. The Infrastructure Services segment provides program management services of field projects necessary for deploying, upgrading, and maintaining wireless networks. The Field Services segment generates revenue from the installation, upgrade and maintenance of DIRECTV satellite television systems. The Other Services segment was comprised of the Company’s multi-dwelling unit and energy, engineering and construction (“EE&C”) services lines of business.

On December 31, 2013, the Company sold certain assets to DIRECTV MDU, and DIRECTV MDU assumed certain liabilities of the Company, related to the division of the Company’s business involved with the ownership and operation of subscription based video, high-speed internet and voice services and related call center functions to multiple dwelling unit customers, lodging and institution customers and commercial establishments (such assets are collectively referred to as the “MDU Assets”). The operations of the MDU Assets were previously reported in the Company’s Other Services segment. In addition, in the first quarter of 2014, the Company integrated the EE&C line of business with the Infrastructure Services and Professional Services segments, and as a result the Company no longer has an Other Services segment.

There were no material intersegment transfers or sales during the periods presented. Selected segment financial information for the three and six months ended June 30, 2013 and 2014 are presented below (in thousands):

 

 

 

Three Months Ended June 30, 2013

 

 

 

PS

 

 

IS

 

 

FS

 

 

Corporate

 

 

Total

 

Revenues

 

$

29,215

 

 

$

157,617

 

 

$

—

 

 

$

—

 

 

$

186,832

 

Cost of revenues

 

 

22,741

 

 

 

139,210

 

 

 

—

 

 

 

—

 

 

 

161,951

 

Gross profit

 

$

6,474

 

 

$

18,407

 

 

$

—

 

 

 

—

 

 

 

24,881

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,550

 

 

 

25,550

 

Operating loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(669

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,233

 

 

 

9,233

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,902

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,665

)

 

 

(3,665

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(6,237

)

 

 

 

Three Months Ended June 30, 2014

 

 

 

PS

 

 

IS

 

 

FS

 

 

Corporate

 

 

Total

 

Revenues

 

$

24,415

 

 

$

182,409

 

 

$

63,740

 

 

$

—

 

 

$

270,564

 

Cost of revenues

 

 

23,758

 

 

 

153,113

 

 

 

57,459

 

 

 

—

 

 

 

234,330

 

Gross profit

 

$

657

 

 

$

29,296

 

 

$

6,281

 

 

 

—

 

 

 

36,234

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,392

 

 

 

28,392

 

Restructuring expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,726

 

 

 

2,726

 

Other operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,569

)

 

 

(1,569

)

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,685

 

Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

 

 

(15

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,467

 

 

 

11,467

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,767

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116

 

 

 

116

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(4,883

)

 

 

 

Six Months Ended June 30, 2013

 

 

 

PS

 

 

IS

 

 

FS

 

 

Corporate

 

 

Total

 

Revenues

 

$

49,300

 

 

$

288,732

 

 

$

—

 

 

$

—

 

 

$

338,032

 

Cost of revenues

 

 

39,730

 

 

 

248,182

 

 

 

—

 

 

 

—

 

 

 

287,912

 

Gross profit

 

$

9,570

 

 

$

40,550

 

 

$

—

 

 

 

—

 

 

 

50,120

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,404

 

 

 

50,404

 

Operating loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(284

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,144

 

 

 

17,144

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,428

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,389

)

 

 

(6,389

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(11,039

)

 

 

 

 

Six Months Ended June 30, 2014

 

 

 

PS

 

 

IS

 

 

FS

 

 

Corporate

 

 

Total

 

Revenues

 

$

46,612

 

 

$

357,035

 

 

$

123,508

 

 

$

—

 

 

$

527,155

 

Cost of revenues

 

 

44,973

 

 

 

299,347

 

 

 

113,214

 

 

 

—

 

 

 

457,534

 

Gross profit

 

$

1,639

 

 

$

57,688

 

 

$

10,294

 

 

 

—

 

 

 

69,621

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60,462

 

 

 

60,462

 

Restructuring expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,726

 

 

 

2,726

 

Other operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,569

)

 

 

(1,569

)

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,002

 

Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(46

)

 

 

(46

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,154

 

 

 

23,154

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,106

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65

 

 

 

65

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(15,171

)

 

Asset information is evaluated by management at the corporate level and is not available by reportable segment.