Note 9 - Segment Reporting

6 Months Ended

Jun. 30, 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 of this report for a description of the acquired business.

The quarter and six-month period ended June 30, 2012 results for the Commercial and Structural segment include $1.4 million and $2.0 million, respectively, for costs incurred related to the acquisitions of Fyfe LA and Fyfe Asia. The quarter and six-month period ended June 30, 2011 results for the Energy and Mining segment include $0.3 million for costs incurred related to the acquisition of CRTS. 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 June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues:
Energy and Mining	$	130,941		$	100,400		$	245,981		$	195,857
North American Water and Wastewater		79,492			89,544			153,829			171,404
European Water and Wastewater		17,519			23,609			33,595			44,370
Asia-Pacific Water and Wastewater		8,757			11,432			19,351			23,941
Commercial and Structural		20,822			—			35,369			—
Total revenues	$	257,531		$	224,985		$	488,125		$	435,572
Gross profit (loss):
Energy and Mining	$	33,177		$	24,822		$	60,078		$	47,914
North American Water and Wastewater		17,097			13,268			31,667			24,410
European Water and Wastewater		4,355			6,111			7,707			10,634
Asia-Pacific Water and Wastewater		(1,248	)		1,639			(995	)		4,056
Commercial and Structural		9,046			—			16,654			—
Total gross profit	$	62,427		$	45,840		$	115,111		$	87,014
Operating income (loss):
Energy and Mining	$	13,457		$	6,986		$	20,897		$	13,376
North American Water and Wastewater		5,883			(174	)		10,073			(1,850	)
European Water and Wastewater		704			1,721			418			2,323
Asia-Pacific Water and Wastewater		(2,974	)		(693	)		(4,766	)		(520	)
Commercial and Structural		1,293			—			2,640			—
Total operating income	$	18,363		$	7,840		$	29,262		$	13,329

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

	Quarters Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues:
United States	$	175,537		$	136,819		$	319,861		$	250,501
Canada		39,369			35,484			83,758			80,465
Europe		21,001			27,847			40,943			52,195
Other foreign		21,624			24,835			43,563			52,411
Total revenues	$	257,531		$	224,985		$	488,125		$	435,572
Gross profit:
United States	$	47,042		$	25,202		$	83,009		$	44,034
Canada		9,344			9,396			20,643			21,205
Europe		5,332			7,201			9,775			12,629
Other foreign		709			4,041			1,684			9,146
Total gross profit	$	62,427		$	45,840		$	115,111		$	87,014
Operating income (loss):
United States	$	13,019		$	(1,521	)	$	18,660		$	(7,689	)
Canada		5,223			4,934			11,859			12,683
Europe		1,745			2,899			2,097			4,202
Other foreign		(1,624	)		1,528			(3,354	)		4,133
Total operating income	$	18,363		$	7,840		$	29,262		$	13,329