Business Segments

3 Months Ended

Mar. 31, 2022

Business Segments

Business Segments

18. Business Segments

The Company is organized primarily on the basis of geographic region and customer industry group and operates in four reportable segments.

Our remaining operating segments have been consolidated and included in an “All Other” category.

The following is a brief description of our reportable segments and a description of business activities conducted by All Other.

HFS – South  — Segment operations consist primarily of specialty rental and vertically integrated hospitality services revenue from customers located primarily in Texas and New Mexico.

HFS – Midwest  — Segment operations consist primarily of specialty rental and vertically integrated hospitality services revenue from customers located primarily in North Dakota.

Government — Segment operations consist primarily of specialty rental and vertically integrated hospitality services revenue from customers with Government contracts located in Texas.

TCPL Keystone – Segment operations consist primarily of revenue from the construction phase of the contract with TCPL. As a result of the Termination and Settlement Agreement discussed in Note 2, no further activity is expected in this segment.

All Other — Segment operations consist primarily of revenue from specialty rental and vertically integrated hospitality services revenue from customers located outside of the HFS – South and HFS  –  Midwest segments.

The table below presents information about reported segments for the three months ended March 31 (except for asset information for 2021 that is presented as of December 31):

2022

	HFS - South		HFS - Midwest		Government		TCPL Keystone		All Other			Total
For the Three Months Ended March 31, 2022
Revenue	$	31,576	$	977	$	46,790	$	-	$	992	(a)	$	80,335
Adjusted gross profit	$	13,318	$	(500)	$	27,876	$	-	$	22		$	40,716
Total Assets	$	206,724	$	42,333	$	78,871	$	3,007	$	2,399		$	333,334

2021

	HFS – South		HFS – Midwest		Government		TCPL Keystone		All Other			Total
For the Three Months Ended March 31, 2021
Revenue	$	25,093	$	597	$	18,039	$	1,471	$	292	(a)	$	45,492
Adjusted gross profit	$	10,658	$	(549)	$	13,802	$	208	$	(218)		$	23,901
Total Assets (as of December 31, 2021)	$	206,774	$	43,504	$	87,308	$	3,007	$	2,412		$	343,005

(a) Revenues from segments below the quantitative thresholds are attributable to three operating segments of the Company and are reported in the “All Other” category previously described.

A reconciliation of total segment adjusted gross profit to total consolidated income (loss) before income taxes for the dates indicated below, is as follows:

	For the Three Months Ended
	March 31, 2022		March 31, 2021
Total reportable segment adjusted gross profit	$	40,694	$	24,119
Other adjusted gross profit		22		(218)
Depreciation and amortization		(16,795)		(16,436)
Selling, general, and administrative expenses		(11,759)		(11,332)
Other expense (income), net		219		(246)
Interest expense, net		(9,572)		(9,849)
Change in fair value of warrant liabilities		(1,227)		(640)
Consolidated income (loss) before income taxes	$	1,582	$	(14,602)

A reconciliation of total segment assets to total consolidated assets as of the dates indicated below, is as follows:

	March 31, 2022		December 31, 2021
Total reportable segment assets	$	330,935	$	340,593
Other assets		3,464		3,489
Other unallocated amounts		158,139		169,310
Total Assets	$	492,538	$	513,392

Other unallocated assets consist of the following as reported in the consolidated balance sheets of the Company as of the dates indicated below:

	March 31, 2022		December 31, 2021
Total current assets	$	54,579	$	60,536
Other intangible assets, net		84,849		88,485
Deferred tax asset		13,985		14,710
Deferred financing costs revolver, net		1,846		2,159
Other non-current assets		2,880		3,420
Total other unallocated amounts of assets	$	158,139	$	169,310