Segment and Geographic Area Information

3 Months Ended

Mar. 31, 2023

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 an 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, 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 expenses (income), 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, 2023
	ITPS		HS		LLPS		Total
Revenue	$	193,708	$	63,043	$	16,869	$	273,620
Cost of revenue (exclusive of depreciation and amortization)		158,511		46,736		11,220		216,467
Segment profit		35,197		16,307		5,649		57,153
Selling, general and administrative expenses (exclusive of depreciation and amortization)								44,381
Depreciation and amortization								16,560
Related party expense								3,112
Interest expense, net								44,180
Debt modification and extinguishment costs (gain), net								(8,773)
Sundry expense, net								748
Other income, net								(282)
Net loss before income taxes							$	(42,773)

		Three months ended March 31, 2022
	ITPS		HS		LLPS		Total
Revenue	$	205,007	$	56,596	$	17,795	$	279,398
Cost of revenue (exclusive of depreciation and amortization)		163,586		46,731		13,187		223,504
Segment profit		41,421		9,865		4,608		55,894
Selling, general and administrative expenses (exclusive of depreciation and amortization)								43,040
Depreciation and amortization								18,212
Related party expense								1,987
Interest expense, net								39,760
Debt modification and extinguishment costs (gain), net								884
Sundry expense, net								307
Other expense, net								6,159
Net loss before income taxes							$	(54,455)