Note 9 - Segment Reporting

9 Months Ended

Sep. 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 nine-month period ended September 30, 2012 results include $0.6 million and $2.6 million for costs incurred related to the acquisitions of Fyfe LA and Fyfe Asia and other strategic initiatives currently being pursued. The quarter and nine-month period ended September 30, 2011 results include $5.4 million and $5.8 million, respectively, for costs incurred related to the acquisition of CRTS, Hockway, and Fyfe NA and for previously identified acquisition targets that are no longer being pursued. 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 September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues:
Energy and Mining	$	139,674		$	114,014		$	385,655		$	309,871
North American Water and Wastewater		77,818			95,200			231,647			266,606
European Water and Wastewater		18,748			22,176			52,343			66,545
Asia-Pacific Water and Wastewater		9,018			11,163			28,369			35,103
Commercial and Structural		19,897			3,665			55,267			3,665
Total revenues	$	265,155		$	246,218		$	753,281		$	681,790
Gross profit (loss):
Energy and Mining	$	33,553		$	27,392		$	93,630		$	75,307
North American Water and Wastewater		17,183			15,882			48,850			40,292
European Water and Wastewater		4,450			5,899			12,158			16,533
Asia-Pacific Water and Wastewater		(1,560	)		1,915			(2,555	)		5,970
Commercial and Structural		9,148			1,541			25,803			1,541
Total gross profit	$	62,774		$	52,629		$	177,886		$	139,643
Operating income (loss):
Energy and Mining	$	20,703		$	7,118		$	41,600		$	20,493
North American Water and Wastewater		6,289			4,413			16,361			2,563
European Water and Wastewater		821			1,261			1,240			3,584
Asia-Pacific Water and Wastewater		(4,016	)		(346	)		(8,782	)		(865	)
Commercial and Structural		2,345			(2,948	)		4,985			(2,948	)
Total operating income	$	26,142		$	9,498		$	55,404		$	22,827

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

	Quarters Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues:
United States	$	164,715		$	147,974		$	480,104		$	398,475
Canada		47,141			46,839			130,900			127,304
Europe		21,455			26,048			62,398			78,242
Other foreign		31,844			25,357			79,879			77,769
Total revenues	$	265,155		$	246,218		$	753,281		$	681,790
Gross profit:
United States	$	40,218		$	28,094		$	121,651		$	72,129
Canada		13,352			13,225			33,995			34,430
Europe		5,332			6,895			15,107			19,523
Other foreign		3,872			4,415			7,133			13,561
Total gross profit	$	62,774		$	52,629		$	177,886		$	139,643
Operating income (loss):
United States	$	15,699		$	(2,933	)	$	34,250		$	(10,621	)
Canada		9,069			8,776			20,928			21,459
Europe		1,691			1,952			3,789			6,154
Other foreign		(317	)		1,703			(3,563	)		5,835
Total operating income	$	26,142		$	9,498		$	55,404		$	22,827