Segment and Geographic Area Information

6 Months Ended

Jun. 30, 2022

Segment and Geographic Area Information

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 customers. 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 June 30, 2022
	ITPS		HS		LLPS		Total
Revenue	$	190,005	$	56,390	$	20,375	$	266,770
Cost of revenue (exclusive of depreciation and amortization)		156,704		45,719		14,854		217,277
Segment profit		33,301		10,671		5,521		49,493
Selling, general and administrative expenses (exclusive of depreciation and amortization)								50,195
Depreciation and amortization								17,993
Related party expense								2,186
Interest expense, net								42,271
Debt modification and extinguishment costs (gain), net								8,117
Sundry income, net								(741)
Other expense, net								7,375
Net loss before income taxes							$	(77,903)

	Three months ended June 30, 2021
	ITPS		HS		LLPS		Total
Revenue	$	217,260	$	56,204	$	19,545	$	293,009
Cost of revenue (exclusive of depreciation and amortization)		156,669		38,973		13,438		209,080
Segment profit		60,591		17,231		6,107		83,929
Selling, general and administrative expenses (exclusive of depreciation and amortization)								36,390
Depreciation and amortization								19,420
Related party expense								2,748
Interest expense, net								42,867
Sundry income, net								(787)
Other expense, net								651
Net loss before income taxes							$	(17,360)

		Six months ended June 30, 2022
	ITPS		HS		LLPS		Total
Revenue	$	395,012	$	112,986	$	38,170	$	546,168
Cost of revenue (exclusive of depreciation and amortization)		320,290		92,450		28,041		440,781
Segment profit		74,722		20,536		10,129		105,387
Selling, general and administrative expenses (exclusive of depreciation and amortization)								93,235
Depreciation and amortization								36,205
Related party expense								4,173
Interest expense, net								82,031
Debt modification and extinguishment costs (gain), net								9,001
Sundry income, net								(434)
Other expense, net								13,534
Net loss before income taxes							$	(132,358)

		Six months ended June 30, 2021
	ITPS		HS		LLPS		Total
Revenue	$	449,135	$	107,297	$	36,633	$	593,065
Cost of revenue (exclusive of depreciation and amortization)		342,171		74,791		24,705		441,667
Segment profit		106,964		32,506		11,928		151,398
Selling, general and administrative expenses (exclusive of depreciation and amortization)								78,275
Depreciation and amortization								39,019
Related party expense								4,455
Interest expense, net								85,998
Sundry income, net								(574)
Other expense, net								803
Net loss before income taxes							$	(56,578)