Segment Reporting

3 Months Ended

Sep. 30, 2020

Segment Reporting

Segment Reporting

Note 11. Segment Reporting

We have two geographic areas that include four operating segments; the Asia-Pacific area, consisting of the leasing operations of Royal Wolf, and North America, consisting of the combined leasing operations of Pac-Van and Lone Star, and the manufacturing operations of Southern Frac. Discrete financial data on each of the Company’s products is not available and it would be impractical to collect and maintain financial data in such a manner. In managing the Company’s business, senior management focuses on primarily growing its leasing revenues and operating cash flow (EBITDA), and investing in its lease fleet through capital purchases and acquisitions. Transactions between reportable segments included in the tables below are recorded on an arms-length basis at market in conformity with U.S. GAAP and the Company’s significant accounting policies (see Note 2).

The tables below represent the Company’s revenues from external customers, share-based compensation expense, impairment of goodwill, depreciation and amortization, operating income, interest income and expense, expenditures for additions to long-lived assets (consisting of lease fleet and property, plant and equipment), long-lived assets, operating lease assets and goodwill; as attributed to its geographic and operating segments (in thousands):

	Quarter Ended September 30, 2020
	North America
	Leasing
									Corporate
									and
									Intercompany				Asia – Pacific
	Pac-Van		Lone Star		Combined		Manufacturing		Adjustments		Total		Leasing		Consolidated
Revenues:
Sales	$	16,834	$	20	$	16,854	$	1,625	$	(1,268)	$	17,211	$	12,811	$	30,022
Leasing		34,419		2,321		36,740		—		(83)		36,657		15,681		52,338
	$	51,253	$	2,341	$	53,594	$	1,625	$	(1,351)	$	53,868	$	28,492	$	82,360
Share-based compensation	$	119	$	15	$	134	$	12	$	330	$	476	$	48	$	524
Depreciation and amortization	$	4,038	$	2,178	$	6,216	$	99	$	(179)	$	6,136	$	3,029	$	9,165
Operating income	$	10,354	$	(1,909)	$	8,445	$	(217)	$	(1,198)	$	7,030	$	4,275	$	11,305
Interest income	$	—	$	—	$	—	$	—	$	—	$	—	$	151	$	151
Interest expense	$	1,461	$	21	$	1,482	$	12	$	1,716	$	3,210	$	2,487	$	5,697
Additions to long-lived assets	$	8,783	$	36	$	8,819	$	2	$	(218)	$	8,603	$	2,742	$	11,345
	At September 30, 2020
Long-lived assets	$	321,987	$	38,447	$	360,434	$	1,264	$	(9,185)	$	352,513	$	130,658	$	483,171
Operating lease assets	$	25,245	$	2,377	$	27,622	$	214	$	243	$	28,079	$	48,644	$	76,723
Goodwill	$	65,149	$	6,622	$	71,771	$	—	$	—	$	71,771	$	26,463	$	98,234
	At June 30, 2020
Long-lived assets	$	320,956	$	40,234	$	361,190	$	1,361	$	(9,145)	$	353,406	$	129,717	$	483,123
Operating lease assets	$	25,602	$	2,441	$	28,043	$	244	$	267	$	28,554	$	37,671	$	66,225
Goodwill	$	65,123	$	6,622	$	71,745	$	—	$	—	$	71,745	$	25,479	$	97,224

	Quarter Ended September 30, 2019
	North America
	Leasing
									Corporate
									and
									Intercompany				Asia – Pacific
	Pac-Van		Lone Star		Combined		Manufacturing		Adjustments		Total		Leasing		Consolidated
Revenues:
Sales	$	16,918	$	—	$	16,918	$	3,506	$	(1,333)	$	19,091	$	11,873	$	30,964
Leasing		35,602		8,383		43,985		—		(318)		43,667		15,266		58,933
	$	52,520	$	8,383	$	60,903	$	3,506	$	(1,651)	$	62,758	$	27,139	$	89,897
Share-based compensation	$	105	$	12	$	117	$	9	$	374	$	500	$	183	$	683
Depreciation and amortization	$	4,020	$	1,617	$	5,637	$	101	$	(179)	$	5,559	$	3,953	$	9,512
Operating income	$	11,778	$	1,891	$	13,669	$	176	$	(1,618)	$	12,227	$	2,703	$	14,930
Interest income	$	—	$	—	$	—	$	—	$	1	$	1	$	185	$	186
Interest expense	$	2,629	$	127	$	2,756	$	36	$	1,717	$	4,509	$	2,815	$	7,324
Additions to long-lived assets	$	15,163	$	389	$	15,552	$	8	$	(168)	$	15,392	$	3,094	$	18,486

Intersegment net revenues related to sales of primarily portable liquid storage containers and ground level offices from Southern Frac to the North American leasing operations totaled $1,333,000 and $1,268,000 during FY 2020 and FY 2021, respectively; and intrasegment net revenues in the North American leasing operations related to primarily the leasing of portable liquid storage containers from Pac-Van to Lone Star totaled $285,000 and $50,000 during FY12020 and FY 2020, respectively.