Segment Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company has three operating segments, which are also its reportable segments: Infrastructure Solutions; Corrosion Protection; and Energy Services. The Company’s operating segments correspond to its management organizational structure. Each operating segment has a president who reports to the Company’s chief executive officer, who is also the chief operating decision manager (“CODM”). The operating results and financial information reported by each of the segments are evaluated separately, regularly reviewed and used by the CODM to evaluate segment performance, allocate resources and determine management incentive compensation.

The following disaggregated financial results have been prepared using a management approach that is consistent with the basis and manner with which management internally disaggregates financial information for the purpose of making internal operating decisions. Financial results for discontinued operations have been removed for all periods presented, and prior year periods have been recast to conform to the current year presentation. The Company evaluates performance based on stand-alone operating income (loss).

Financial information by segment was as follows (in thousands):

	Quarters Ended March 31,
	2016 (1)			2015 (2)
Revenues:
Infrastructure Solutions	$	125,762		$	122,473
Corrosion Protection	92,446			101,743
Energy Services	75,700			84,950
Total revenues	$	293,908		$	309,166
Gross profit:
Infrastructure Solutions	$	29,744		$	28,615
Corrosion Protection	17,199			20,829
Energy Services	7,471			9,746
Total gross profit	$	54,414		$	59,190
Operating income (loss):
Infrastructure Solutions (3)	$	5,808		$	7,332
Corrosion Protection (4)	(5,670		)	500
Energy Services (5)	(4,277		)	1,293
Total operating income (loss)	$	(4,139	)	$	9,125

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⁽¹⁾  Results include: (i) $9.7 million of 2016 Restructuring charges (see Note 3), (ii) $0.2 million of 2014 Restructuring expense reversals (see Note 3); (iii) $1.0 million of costs incurred related to the acquisition of Underground Solutions and other acquisition targets; and (iv) inventory step up expense of $1.2 million recognized as part of the accounting for business combinations (see Note 1).

⁽²⁾  Results include: (i) $0.8 million of 2014 Restructuring charges (see Note 3); and (ii) $0.3 million of costs incurred related to the acquisition of Schultz and other acquisition targets.

⁽³⁾  Operating income for the quarter ended March 31, 2016 includes: (i) $2.2 million of 2016 Restructuring charges (see Note 3), (ii) $0.2 million of 2014 Restructuring expense reversals (see Note 3); (iii) $1.0 million of costs incurred related to the acquisitions of Underground Solutions and other acquisition targets; and (iv) inventory step up expense of $1.2 million recognized as part of the accounting for business combinations (see Note 1). Operating income for the quarter ended March 31, 2015 includes $0.8 million of 2014 Restructuring charges (see Note 3).

⁽⁴⁾  Operating loss for the quarter ended March 31, 2016 includes: (i) $2.7 million of 2016 Restructuring charges (see Note 3).

⁽⁵⁾  Operating loss for the quarter ended March 31, 2016 includes: (i) $4.9 million of 2016 Restructuring charges (see Note 3). Operating income for the quarter ended March 31, 2015 includes $0.3 million of costs incurred related to the acquisition of Schultz and other acquisition targets.

The following table summarizes revenues, gross profit and operating income by geographic region (in thousands):

	Quarters Ended March 31,
	2016			2015
Revenues (1):
United States	$	223,569		$	223,141
Canada	27,619			46,651
Europe	13,821			14,118
Other foreign	28,899			25,256
Total revenues	$	293,908		$	309,166
Gross profit:
United States	$	39,862		$	37,854
Canada	5,414			12,188
Europe	2,789			4,225
Other foreign	6,349			4,923
Total gross profit	$	54,414		$	59,190
Operating income (loss):
United States	$	(7,552	)	$	(2,913	)
Canada	1,569			8,599
Europe	159			1,471
Other foreign	1,685			1,968
Total operating income (loss)	$	(4,139	)	$	9,125

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⁽¹⁾  Revenues are attributed to the country of origin for the Company’s legal entities. For a significant majority of its legal entities, the country of origin relates to the country or geographic area that it services.