Operating Segments

The Company determined its operating segments on the same basis that it assesses performance and makes operating decisions. The Company manages and measures the performance of its business in two distinct operating segments: Construction and Service. These segments are reflective of how the Company's Chief Operating Decision Maker (“CODM”) reviews operating results for the purposes of allocating resources and assessing performance. The Company's CODM is comprised of its Chief Executive Officer, Chief Financial Officer and Chief Operating Officer.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on income from operations of the respective branches after the allocation of Corporate office operating expenses. In accordance with ASC Topic 280 – Segment Reporting, the Company has elected to aggregate all of the construction branches into one Construction reportable segment and all of the service branches into one Service reportable segment. All transactions between segments are eliminated in consolidation. Our Corporate departments provide general and administrative support services to our two operating segments. The CODM allocates costs between segments for selling, general and administrative expenses and depreciation expense.

All of the Company’s identifiable assets are located in the United States, which is where the Company is domiciled. The Company does not have sales outside of the United States. The Company had a single Construction segment customer that accounted for approximately 10% of consolidated total revenues for the year ended December 31, 2019 and another single Construction segment customer that accounted for approximately 18% of consolidated total revenues for the year ended December 31, 2018.

The Company does not identify capital expenditures and total assets by segment in its internal financial reports due in part to the shared use of a centralized fleet of vehicles and specialized equipment. Interest expense is not allocated to segments because of the corporate management of debt service including interest.

Segment information for the periods presented is as follows:



	For the Years Ended
	December 31, 2019			December 31, 2018
(in thousands)
Statement of Operations Data:
Revenue:
Construction	$	438,196		$	438,229
Service	115,138			108,297
Total revenue	553,334			546,526

Gross profit:
Construction	43,493			36,721
Service	28,384			22,710
Total gross profit	71,877			59,431

Selling, general and administrative expenses:
Construction	28,356			27,307
Service	17,367			15,003
Corporate	17,445			14,779
Total selling, general and administrative expenses	63,168			57,089
Amortization of intangibles	642			1,272
Operating income	$	8,067		$	1,070

Operating income for reportable segments	$	8,067		$	1,070
Other expenses:
Impairment of goodwill (Construction)	(4,359		)	—
Less Unallocated amounts:
Interest expense	(6,285		)	(3,305		)
Loss on debt modification	—			(335		)
Loss on debt extinguishment	(513		)	—
Gain on change in fair value of warrant liability	588			—
Gain on embedded derivative	388			—
Gain (loss) on sale of property and equipment	57			90
Total unallocated amounts	(5,765		)	(3,550		)
Total consolidated income (loss) before income taxes	$	(2,057	)	$	(2,480	)

Other Data:
Depreciation and amortization:
Construction	$	3,738		$	2,812
Service	997			749
Corporate	1,551			2,122
Total other data	$	6,286		$	5,683