Segment and Geographic Area Information

3 Months Ended

Mar. 31, 2020

Segment and Geographic Area Information

13. Segment and Geographic Area Information

The Company’s operating segments are significant strategic business units that align its products and services with how it manages its business, approaches the markets and interacts with its clients. The Company is organized into three segments: ITPS, HS, and LLPS.

ITPS: The ITPS segment provides a wide range of solutions and services designed to aid businesses in information capture, processing, decisioning and distribution to customers primarily in the financial services, commercial, public sector and legal industries.

HS: The HS segment operates and maintains a consulting and outsourcing business specializing in both the healthcare provider and payer markets.

LLPS: The LLPS segment provides a broad and active array of legal services in connection with class action, bankruptcy labor, claims adjudication and employment and other legal matters.

The chief operating decision maker reviews segment profit to evaluate operating segment performance and determine how to allocate resources to operating segments. “Segment profit” is defined as revenue less cost of revenue (exclusive of depreciation and amortization). The Company does not allocate Selling, general, and administrative expenses, depreciation and amortization, interest expense and sundry, net. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segments are not presented. A reconciliation of segment profit to net loss before income taxes is presented below.


		Three months ended March 31, 2020
	ITPS		HS		LLPS		Total
Revenue	$	284,112	$	64,049	$	17,290	$	365,451
Cost of revenue (exclusive of depreciation and amortization)		235,120		44,931		12,488		292,539
Segment profit		48,992		19,118		4,802		72,912
Selling, general and administrative expenses (exclusive of depreciation and amortization)								50,374
Depreciation and amortization								23,185
Related party expense								1,551
Interest expense, net								41,588
Sundry expense, net								1,082
Other expense, net								(34,657)
Net loss before income taxes							$	(10,211)


		Three months ended March 31, 2019 (Restated)
	ITPS		HS		LLPS		Total
Revenue	$	325,172	$	61,343	$	17,842	$	404,357
Cost of revenue (exclusive of depreciation and amortization)		259,272		40,341		10,988		310,601
Segment profit		65,900		21,002		6,854		93,756
Selling, general and administrative expenses (exclusive of depreciation and amortization)								49,677
Depreciation and amortization								26,624
Related party expense								998
Interest expense, net								39,701
Sundry expense, net								2,715
Other expense, net								1,493
Net loss before income taxes							$	(27,452)