Note 12 - Segment and Geographic Information

12 Months Ended

Dec. 31, 2011

Segment Reporting Disclosure [Text Block]

12.       SEGMENT AND GEOGRAPHIC INFORMATION

The Company operates in three distinct markets: energy and mining, sewer and water rehabilitation and commercial and structural services. Management organizes the enterprise around differences in products and services, as well as by geographic areas. Within the sewer and water rehabilitation market, the Company operates in three distinct geographies: North America, Europe and internationally outside of North America and Europe. As such, the Company is organized into five reportable segments: Energy and Mining, North American Sewer and Water Rehabilitation, European Sewer and Water Rehabilitation, Asia-Pacific Sewer and Water Rehabilitation and Commercial and Structural. Each segment is regularly reviewed and evaluated separately.

Prior to the third quarter of 2011, the Company previously considered Water Rehabilitation to be a separate reportable segment. Based on an internal management reorganization, the Company has combined previously reported water rehabilitation results for all periods presented, which have not been material, with the geographically separated sewer rehabilitation segments. In connection with the Company’s acquisition of Fyfe NA, the Company has designated the Commercial and Structural reportable segment. See Note 1 for a description of the acquired business.

2011 and 2009 results by segment reflect $6.4 million and $8.5 million, respectively, of acquisition costs. The Company recorded these costs under “Acquisition-related expenses” on its consolidated statements of operations. Additionally, 2011 and 2009 segment results include $2.2 million and $4.0 million for restructuring charges. The 2011 restructuring charges were for severance related operating expenses associated with a reduction in force across the Company, a majority of which was paid in the third and fourth quarters. The Company does not expect any additional expense related to this reduction in force program. The 2009 restructuring charges consisted of employee severance and lease cancellation costs in Europe, along with write-downs of certain assets associated with the exit from various European markets. The Company recorded these charges for both periods under “Restructuring charges” on its consolidated statements of operations.

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. The Company evaluates performance based on stand-alone operating income (loss).

There were no customers that accounted for more than 10% of the Company’s revenues during any year in the three-year period ended December 31, 2011.

Financial information by segment was as follows at December 31 (in thousands):

	2011			2010		2009
Revenues:
Energy and Mining	$	433,230		$	382,246	$	241,678
North American Sewer and Water Rehabilitation		357,507			413,828		365,889
European Sewer and Water Rehabilitation		87,017			74,260		86,043
Asia-Pacific Sewer and Water Rehabilitation		43,717			44,641		33,256
Commercial and Structural		17,114			–		–
Total revenues	$	938,585		$	914,975	$	726,866
Operating income (loss):
Energy and Mining	$	35,011		$	41,121	$	10,924
North American Sewer and Water Rehabilitation		6,749			40,831		36,050
European Sewer and Water Rehabilitation		6,000			5,013		(1,276	)
Asia-Pacific Sewer and Water Rehabilitation		(2,512	)		70		3,419
Commercial and Structural		(711	)		–		–
Total operating income	$	44,537		$	87,035	$	49,117
Total assets:
Energy and Mining	$	479,194		$	390,592	$	334,925
North American Sewer and Water Rehabilitation		281,353			310,839		302,806
European Sewer and Water Rehabilitation		62,791			60,861		76,235
Asia-Pacific Sewer and Water Rehabilitation		76,932			63,100		51,873
Commercial and Structural		128,358			–		–
Corporate		96,336			104,118		96,251
Discontinued operations		–			3,800		4,493
Total assets	$	1,124,964		$	933,310	$	866,583
Capital expenditures:
Energy and Mining	$	11,375		$	14,603	$	3,890
North American Sewer and Water Rehabilitation		3,378			13,256		8,988
European Sewer and Water Rehabilitation		1,798			1,768		1,858
Asia-Pacific Sewer and Water Rehabilitation		1,908			5,094		5,567
Commercial and Structural		43			–		–
Corporate		3,052			2,137		1,534
Total capital expenditures	$	21,554		$	36,858	$	21,837
Depreciation and amortization:
Energy and Mining	$	16,613		$	14,504	$	12,129
North American Sewer and Water Rehabilitation		9,405			9,796		10,106
European Sewer and Water Rehabilitation		2,007			2,047		2,347
Asia-Pacific Sewer and Water Rehabilitation		2,728			2,060		1,313
Commercial and Structural		1,183			–		–
Corporate		4,103			2,325		2,545
Total depreciation and amortization	$	36,039		$	30,732	$	28,440

Financial information by geographic area was as follows at December 31 (in thousands):

	2011			2010		2009
Revenues:
United States	$	552,197		$	604,372	$	480,684
Canada		178,739			139,632		95,761
Europe		102,471			87,616		95,910
Other foreign		105,178			83,355		54,511
Total revenues	$	938,585		$	914,975	$	726,866
Operating income (loss):
United States	$	(2,212	)	$	40,172	$	25,004
Canada		31,892			30,958		17,790
Europe		9,391			9,041		(11	)
Other foreign		5,466			6,864		6,334
Total operating income	$	44,537		$	87,035	$	49,117
Long-lived assets: (1)
United States	$	153,853		$	147,572	$	131,447
Canada		22,998			20,564		25,371
Europe		12,474			13,596		21,173
Other foreign		12,693			15,003		9,052
Total long-lived assets	$	202,018		$	196,735	$	187,043

(1)   Long lived assets as of December 31, 2011, 2010 and 2009 do not include intangible assets, goodwill or deferred tax assets.