Segment and Geographic Area Information

3 Months Ended

Mar. 31, 2024

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 array of support services in connection with class action settlement administration, claims adjudication, labor, 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 March 31, 2024
	ITPS		HS		LLPS		Total
Revenue	$	176,140	$	64,852	$	17,819	$	258,811
Cost of revenue (exclusive of depreciation and amortization)		144,412		46,156		11,420		201,988
Segment profit		31,728		18,696		6,399		56,823
Selling, general and administrative expenses (exclusive of depreciation and amortization)								40,854
Depreciation and amortization								13,507
Related party expense								2,391
Interest expense, net								21,088
Sundry expense, net								1,881
Other income, net								(451)
Net loss before income taxes							$	(22,447)

		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)