Note 9 - Segment Reporting

3 Months Ended

Mar. 31, 2012

Segment Reporting Disclosure [Text Block]

9.     SEGMENT REPORTING

The Company operates in three distinct markets: energy and mining; water and wastewater; and commercial and structural services. Management organizes the enterprise around differences in products and services, as well as by geographic areas. Within the water and wastewater 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 Water and Wastewater; European Water and Wastewater; Asia-Pacific Water and Wastewater; 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.

The quarter ended March 31, 2012 results by segment reflect $0.6 million for costs incurred related to the acquisitions of Fyfe LA and Fyfe Asia. The Company recorded these costs under “Acquisition-related expenses” 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).

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

	Quarters Ended, March 31,
	2012			2011
Revenues:
Energy and Mining	$	115,038		$	95,457
North American Water and Wastewater		74,338			81,861
European Water and Wastewater		16,077			20,760
Asia-Pacific Water and Wastewater		10,594			12,509
Commercial and Structural		14,547			—
Total revenues	$	230,594		$	210,587
Gross profit:
Energy and Mining	$	26,899		$	23,091
North American Water and Wastewater		14,571			11,143
European Water and Wastewater		3,352			4,523
Asia-Pacific Water and Wastewater		254			2,417
Commercial and Structural		7,608			—
Total gross profit	$	52,684		$	41,174
Operating income (loss):
Energy and Mining	$	7,440		$	6,390
North American Water and Wastewater		4,190			(1,675	)
European Water and Wastewater		(286	)		601
Asia-Pacific Water and Wastewater		(1,792	)		173
Commercial and Structural		1,347			—
Total operating income	$	10,899		$	5,489

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

	Quarters Ended, March 31,
	2012			2011
Revenues:
United States	$	144,322		$	113,682
Canada		44,390			44,981
Europe		19,943			24,348
Other foreign		21,939			27,576
Total revenues	$	230,594		$	210,587
Gross profit:
United States	$	35,967		$	18,832
Canada		11,299			11,809
Europe		4,443			5,428
Other foreign		975			5,105
Total gross profit	$	52,684		$	41,174
Operating income (loss):
United States	$	5,641		$	(6,168	)
Canada		6,636			7,749
Europe		352			1,303
Other foreign		(1,730	)		2,605
Total operating income	$	10,899		$	5,489