Business Segment and Related Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segment and Related Information

Business Segment and Related Information

The Company has identified two reportable segments, Environmental Solutions (“ES”) and Maintenance and Technical Services (“M&TS”), as each met the quantitative threshold of generating revenue equal to or greater than 10% of the combined revenue of all operating segments.

The accounting policies applied to determine the segment information are the same as those described under “Critical Accounting Policies and Estimates” in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2019. Management evaluates the performance of each segment based on segment gross profit, which is calculated as revenue less cost of sales. For the three and nine months ended September 30, 2020 and 2019, there were no intersegment revenue or other intersegment transactions. Segment assets are also evaluated by management based on each segment’s investment in property and equipment. Assets (other than property and equipment and goodwill) are not allocated to segments.

Summarized financial information with respect to the reportable segments is as follows:

Three Months Ended September 30, 2020	ES		M&TS		All Other		Total
Segment revenue	$	45,800	$	72,915	$	—	$	118,715
Segment gross profit	6,483		5,560		—		12,043
Segment depreciation and amortization expense	(4,761)		2,656		2,027		(78)
Expenditures for segment assets	605		1,042		305		1,952

Three Months Ended September 30, 2019	ES		M&TS		All Other		Total
Segment revenue	$	46,013	$	75,100	$	—	$	121,113
Segment gross profit	6,789		7,070		—		13,859
Segment depreciation and amortization expense	1,394		2,014		1,991		5,399
Expenditures for segment assets	1,933		248		—		2,181

Nine Months Ended September 30, 2020	ES		M&TS		All Other		Total
Segment revenue	$	120,327	$	296,164	$	—	$	416,491
Segment gross profit	14,568		19,006		—		33,574
Segment depreciation and amortization expense	(423)		7,649		5,970		13,196
Expenditures for segment assets	1,664		1,554		338		3,556

Nine Months Ended September 30, 2019	ES		M&TS		All Other		Total
Segment revenue	$	141,346	$	263,961	$	—	$	405,307
Segment gross profit	5,868		21,305		—		27,173
Segment depreciation and amortization expense	5,084		5,980		5,970		17,034
Expenditures for segment assets	8,890		4,750		32		13,672

As of September 30, 2020	ES		M&TS		All Other		Total
Segment property and equipment, net	$	34,948	$	29,612	$	209	$	64,769
Segment goodwill	57,591		16,622		—		74,213

As of December 31, 2019	ES		M&TS		All Other		Total
Segment property and equipment, net	$	47,856	$	37,251	$	187	$	85,294
Segment goodwill	57,591		16,622		—		74,213

The following is a reconciliation of segment gross profit to net loss: 

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Segment gross profit	$	12,043	$	13,859	$	33,574	$	27,173
General and administrative expenses	(4,853)		(14,096)		(27,246)		(45,481)
Impairment expense	(6,399)		—		(6,399)		—
Interest expense, net	(4,331)		(3,833)		(12,787)		(12,987)
Loss on extinguishment of debt	—		—		(8,603)		—
Income from equity method investment	625		667		1,247		1,884
Income tax (expense) benefit	(608)		1,100		(608)		7,489
Net loss	$	(3,523)	$	(2,303)	$	(20,822)	$	(21,922)

The following is a reconciliation of segment assets to total assets as of:

	September 30, 2020		December 31, 2019
Segment property and equipment, net	$	64,769	$	85,294
Segment goodwill	74,213		74,213
Non-segment assets	232,586		196,249
Total assets	$	371,568	$	355,756