Operating Segments

12 Months Ended

Dec. 31, 2020

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 14% of consolidated total revenues for the year ended December 31, 2020 and another single Construction segment customer that accounted for approximately 10% of consolidated total revenues for the year ended December 31, 2019.

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
(in thousands)	December 31, 2020		December 31, 2019
Statement of Operations Data:
Revenue:
Construction	$	440,979	$	438,196
Service	127,230		115,138
Total revenue	568,209		553,334

Gross profit:
Construction	45,115		43,493
Service	36,271		28,384
Total gross profit	81,386		71,877

Selling, general and administrative:
Construction	37,708		40,357
Service	24,825		21,045
Corporate	1,068		1,766
Total selling, general and administrative	63,601		63,168
Amortization of intangibles	630		642
Operating income	$	17,155	$	8,067

Operating income for reportable segments	$	17,155	$	8,067
Other expenses:
Impairment of goodwill (Construction)	—		(4,359)
Less Unallocated amounts:
Interest income (expense), net	(8,627)		(6,285)
Loss on debt extinguishment	—		(513)
Gain (loss) on change in fair value of warrant liability	(1,634)		588
Gain on embedded derivative	—		388
Gain on sale of property and equipment	95		57
Total unallocated amounts	(10,166)		(5,765)
Total consolidated income (loss) before income taxes	$	6,989	$	(2,057)

Other Data:
Depreciation and amortization:
Construction	$	4,187	$	4,434
Service	1,354		1,210
Corporate	630		642
Total other data	$	6,171	$	6,286