Note 12 - Segment Reporting

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

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- Segment Reporting

Enservco’s reportable business segments are Well Enhancement Services, Water Transfer Services, Water Hauling Services, and Construction Services. These segments have been selected based on changes in management’s resource allocation and performance assessment in making decisions regarding the Company.

The following is a description of the segments.

Well Enhancement Services

: This segment utilizes a fleet of frac water heating units, hot oil trucks and acidizing units to provide well enhancement and completion services to the domestic oil and gas industry. These services include frac water heating, hot oil services, pressure testing, and acidizing services.

Water Transfer

Services

: This segment utilizes a high and low volume pumps, lay flat hose, aluminum pipe and manifolds and related equipment to move fresh and/or recycled water from a water source such as a pond, lake, river, stream, or water storage facility to frac tanks at drilling locations to be used in connection with well completion activities. Also included in this segment are water treatment services whereby the Company uses patented hydropath technology under a sales agreement with HydroFLOW USA to remove bacteria and scale from water.

Water Hauling Services

: This segment utilizes a fleet of trucks and related assets, including specialized tank trucks, vacuum trailers, storage tanks, and disposal facilities to provide various water hauling services. These services are primarily provided by Dillco in the Hugoton Field.

Construction Services

: This segment utilizes a fleet of trucks and equipment to provide excavation grading, and dirt hauling services to the oil and gas and construction industry. In

2016,

the Company started utilizing these assets to provide dirt hauling services to a general contractor in Colorado.

Unallocated and other includes general overhead expenses and assets associated with managing all reportable operating segments which have not been allocated to a specific segment.

The following table sets forth certain financial information with respect to Enservco’s reportable segments:

	Well Enhancement		Water Transfer Services			Water Hauling			Construction Services			Unallocated & Other			Total
Year Ended December 31, 2016 :
Revenues	$	17,864,121	$	184,310		$	3,837,844		$	2,712,762		$	9,416		$	24,608,453
Cost of Revenue		15,654,162		1,628,688			3,797,644			2,992,104			748,948			24,821,546
Segment Profit	$	2,209,959	$	(1,444,378	)	$	40,200		$	(279,342	)	$	(739,532	)	$	(213,093	)
Depreciation and Amortization	$	4,931,878	$	1,145,747		$	668,894		$	-		$	118,151		$	6,864,670
Capital Expenditures (Excluding Acquisitions)	$	759,437	$	195,868		$	45,502		$	-		$	16,330		$	1,017,137
Identifiable assets(1)	$	33,827,222	$	3,515,779		$	2,048,042		$	599,504		$	304,636		$	40,295,183
Year Ended December 31, 2015 :
Revenues	$	32,828,068	$	-		$	5,874,792		$	-		$	75,000		$	38,777,860
Cost of Revenue		22,101,958		-			5,932,372			-			774,269			28,808,599
Segment Profit	$	10,726,110	$	-		$	(57,580	)	$	-		$	(699,269	)	$	9,969,261
Depreciation and Amortization	$	5,116,501	$	-		$	641,860		$	-		$	34,005		$	5,792,366
Capital Expenditures (Excluding Acquisitions)	$	4,172,231	$	-		$	-		$	-		$	32,095		$	4,204,326
Identifiable assets(1)	$	40,915,178	$	176,412		$	2,902,886		$	-		$	327,718		$	44,322,194

(1) Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets.

The following table reconciles the segment profits reported above to the loss from operations reported in the consolidated statements of operations:

	December 31 ,			December 31,
	2016			2015
Segment profit (loss)	$	(213,093	)	$	9,969,261
General and administrative expense		(3,779,794	)		(4,260,539	)
Patent litigation defense costs		(151,533	)		(536,582	)
Depreciation and amortization		(6,864,670	)		(5,792,366	)
Loss from Operations	$	(11,009,090	)	$	(620,226	)