Note 8 - Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting Disclosure [Text Block]

Segment Reporting Disclosure [Text Block]

8.     SEGMENT REPORTING

The Company operates in three distinct markets: energy and mining; water and wastewater; and commercial and structural services. Management organizes the Company around differences in products and services, as well as by geographic areas. Within the water and wastewater market, the Company operates in two distinct geographies: North America and internationally outside of North America. As such, the Company is organized into four reportable segments: Energy and Mining; North American Water and Wastewater; International Water and Wastewater; and Commercial and Structural. Each segment is regularly reviewed and evaluated separately.

During the first quarter of 2013, the Company re-organized its Water and Wastewater businesses to bring all of its operations under one central leadership team. The Company hired a Senior Vice President-Global Water and Wastewater and a Vice President of International Water and Wastewater. The Vice President of International Water and Wastewater is responsible for the European Water and Wastewater operations as well as the Asia-Pacific Water and Wastewater operations and reports directly to the Senior Vice President-Global Water and Wastewater. In connection with this management re-organization, the Company combined its European Water and Wastewater and Asia-Pacific Water and Wastewater reportable segments into one reportable segment titled International Water and Wastewater. All future filings will combine these previously reported segments into one.

The quarter and six months ended June 30, 2012 results 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 months ended June 30, 2013 results include $1.9 million, respectively, for costs incurred related to the Company’s July 1, 2013 acquisition of Brinderson, L.P., a California limited partnership, General Energy Services, a California corporation, and Brinderson Constructors Inc., a California corporation (collectively, “Brinderson”) and other acquisition targets the Company is no longer pursuing (see Note 11 to this report for more information regarding the Brinderson acquisition). 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,
	2013		2012			2013			2012
Revenues:
Energy and Mining	$	108,592	$	127,900		$	217,283		$	240,224
North American Water and Wastewater		87,979		79,492			165,620			153,829
International Water and Wastewater		27,757		26,276			53,911			52,946
Commercial and Structural		17,772		20,822			31,262			35,369
Total revenues	$	242,100	$	254,490		$	468,076		$	482,368
Gross profit:
Energy and Mining	$	26,294	$	32,969		$	50,560		$	59,757
North American Water and Wastewater		19,979		17,097			34,429			31,667
International Water and Wastewater		5,597		3,107			10,308			6,712
Commercial and Structural		6,698		9,046			11,408			16,654
Total gross profit	$	58,568	$	62,219		$	106,705		$	114,790
Operating income (loss):
Energy and Mining	$	6,156	$	13,748		$	11,607		$	21,476
North American Water and Wastewater		8,958		5,883			12,683			10,073
International Water and Wastewater		82		(2,270	)		(1,081	)		(4,348	)
Commercial and Structural		627		1,293			(568	)		2,640
Total operating income:	$	15,823	$	18,654		$	22,641		$	29,841

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,
	2013		2012			2013		2012
Revenues:
United States	$	155,444	$	172,496		$	294,191	$	314,104
Canada		35,752		39,369			75,146		83,758
Europe		22,337		21,001			44,987		40,943
Other foreign		28,567		21,624			53,752		43,563
Total revenues	$	242,100	$	254,490		$	468,076	$	482,368
Gross Profit:
United States	$	38,055	$	46,834		$	67,168	$	82,688
Canada		8,100		9,344			17,402		20,643
Europe		5,680		5,332			10,684		9,775
Other foreign		6,733		709			11,451		1,684
Total revenues	$	58,568	$	62,219		$	106,705	$	114,790
Operating income (loss)
United States	$	7,231	$	13,310		$	7,126	$	19,239
Canada		4,477		5,223			10,225		11,859
Europe		1,955		1,745			2,823		2,097
Other foreign		2,160		(1,624	)		2,467		(3,354	)
Total operating income	$	15,823	$	18,654		$	22,641	$	29,841