Segment and Geographic Area Information

6 Months Ended

Jun. 30, 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 June 30, 2024
	ITPS		HS		LLPS		Total
Revenue	$	156,840	$	62,935	$	25,878	$	245,653
Cost of revenue (exclusive of depreciation and amortization)		129,787		42,573		15,604		187,964
Segment profit		27,053		20,362		10,274		57,689
Selling, general and administrative expenses (exclusive of depreciation and amortization)								41,778
Depreciation and amortization								14,983
Related party expense								3,282
Interest expense, net								23,129
Sundry income, net								(204)
Other income, net								(423)
Net loss before income taxes							$	(24,856)

	Three months ended June 30, 2023
	ITPS		HS		LLPS		Total
Revenue	$	184,990	$	63,608	$	24,340	$	272,938
Cost of revenue (exclusive of depreciation and amortization)		150,035		47,016		15,008		212,059
Segment profit		34,955		16,592		9,332		60,879
Selling, general and administrative expenses (exclusive of depreciation and amortization)								32,026
Depreciation and amortization								14,890
Related party expense								2,739
Interest expense, net								45,092
Debt modification and extinguishment costs (gain), net								(6,785)
Sundry expense, net								1,500
Other income, net								(232)
Net loss before income taxes							$	(28,351)

		Six months ended June 30, 2024
	ITPS		HS		LLPS		Total
Revenue	$	332,980	$	127,787	$	43,697	$	504,464
Cost of revenue (exclusive of depreciation and amortization)		274,199		88,729		27,024		389,952
Segment profit		58,781		39,058		16,673		114,512
Selling, general and administrative expenses (exclusive of depreciation and amortization)								82,632
Depreciation and amortization								28,490
Related party expense								5,673
Interest expense, net								44,217
Sundry expense, net								1,677
Other income, net								(874)
Net loss before income taxes							$	(47,303)

		Six months ended June 30, 2023
	ITPS		HS		LLPS		Total
Revenue	$	378,698	$	126,650	$	41,210	$	546,558
Cost of revenue (exclusive of depreciation and amortization)		308,546		93,752		26,228		428,526
Segment profit		70,152		32,898		14,982		118,032
Selling, general and administrative expenses (exclusive of depreciation and amortization)								76,407
Depreciation and amortization								31,450
Related party expense								5,851
Interest expense, net								89,272
Debt modification and extinguishment costs (gain), net								(15,558)
Sundry expense, net								2,248
Other income, net								(514)
Net loss before income taxes							$	(71,124)