Segment and Geographic Area Information

9 Months Ended

Sep. 30, 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, net 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 September 30, 2023
	ITPS		HS		LLPS		Total
Revenue	$	172,150	$	62,090	$	18,885	$	253,125
Cost of revenue (exclusive of depreciation and amortization)		141,808		45,430		11,212		198,450
Segment profit		30,342		16,660		7,673		54,675
Selling, general and administrative expenses (exclusive of depreciation and amortization)								35,367
Depreciation and amortization								14,398
Related party expense								2,845
Interest expense, net								24,708
Debt modification and extinguishment costs (gain), net								(571)
Sundry expense, net								298
Other income, net								(1,069)
Net loss before income taxes							$	(21,301)

	Three months ended September 30, 2022
	ITPS		HS		LLPS		Total
Revenue	$	185,309	$	60,955	$	17,774	$	264,038
Cost of revenue (exclusive of depreciation and amortization)		157,269		48,316		12,257		217,842
Segment profit		28,040		12,639		5,517		46,196
Selling, general and administrative expenses (exclusive of depreciation and amortization)								44,369
Depreciation and amortization								17,737
Impairment of goodwill and other intangible assets								29,565
Related party expense								2,016
Interest expense, net								40,897
Debt modification and extinguishment costs (gain), net								(4,696)
Sundry expense, net								781
Other income, net								(1,115)
Net loss before income taxes							$	(83,358)

		Nine months ended September 30, 2023
	ITPS		HS		LLPS		Total
Revenue	$	550,848	$	188,740	$	60,095	$	799,683
Cost of revenue (exclusive of depreciation and amortization)		450,353		139,182		37,441		626,976
Segment profit		100,495		49,558		22,654		172,707
Selling, general and administrative expenses (exclusive of depreciation and amortization)								111,774
Depreciation and amortization								45,848
Related party expense								8,696
Interest expense, net								113,980
Debt modification and extinguishment costs (gain), net								(16,129)
Sundry expense, net								2,546
Other income, net								(1,583)
Net loss before income taxes							$	(92,425)

		Nine months ended September 30, 2022
	ITPS		HS		LLPS		Total
Revenue	$	580,320	$	173,940	$	55,946	$	810,206
Cost of revenue (exclusive of depreciation and amortization)		477,559		140,767		40,297		658,623
Segment profit		102,761		33,173		15,649		151,583
Selling, general and administrative expenses (exclusive of depreciation and amortization)								137,604
Depreciation and amortization								53,942
Impairment of goodwill and other intangible assets								29,565
Related party expense								6,189
Interest expense, net								122,928
Debt modification and extinguishment costs (gain), net								4,305
Sundry expense, net								347
Other expense, net								12,419
Net loss before income taxes							$	(215,716)