Note 12 - Segment Reporting

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12. SEGMENT REPORTING

The Company has three operating segments, which are also its reportable segments: Infrastructure Solutions; Corrosion Protection; and Energy Services. The Company’s operating segments correspond to its management organizational structure. Each operating segment has leadership that reports to the chief operating decision manager (“CODM”). The operating results and financial information reported by each segment are evaluated separately, regularly reviewed and used by the CODM to evaluate segment performance, allocate resources and determine management incentive compensation.

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), which includes acquisition and divestiture expenses and restructuring charges, if applicable.

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

	Quarter Ended March 31,
	2020			2019
Revenues:
Infrastructure Solutions	$	130,244		$	131,543
Corrosion Protection		66,068			64,498
Energy Services		91,063			80,863
Total revenues	$	287,375		$	276,904
Gross profit:
Infrastructure Solutions	$	31,370		$	26,586
Corrosion Protection		8,917			12,873
Energy Services		9,597			8,836
Total gross profit	$	49,884		$	48,295
Operating income (loss):
Infrastructure Solutions (1)	$	13,555		$	5,715
Corrosion Protection (2)		(6,447	)		(1,760	)
Energy Services		2,176			1,115
Corporate (3)		(7,888	)		(5,844	)
Total operating income (loss)		1,396			(774	)
Other income (expense):
Interest expense		(3,196	)		(3,590	)
Interest income		228			285
Other (4)		425			(674	)
Total other expense		(2,543	)		(3,979	)
Loss before taxes on income	$	(1,147	)	$	(4,753	)

⁽¹⁾  Operating income in the first quarters of 2020 and 2019 includes $0.5 million and $2.1 million, respectively, of restructuring charges (see Note 4) and $0.2 million and $0.1 million, respectively, of costs primarily related to the divestiture of certain international operations.

⁽²⁾  Operating loss in the first quarters of 2020 and 2019 includes $1.8 million and $0.2 million, respectively, of restructuring charges (see Note 4).

⁽³⁾  Operating loss in the first quarters of 2020 and 2019 includes $0.7 million and $0.4 million, respectively, of restructuring charges (see Note 4). Operating loss in the first quarter of 2020 also includes $0.7 million of costs related to the divestiture of certain international operations.

⁽⁴⁾  Other expense in the first quarters of 2020 and 2019 includes $0.6 million and $0.2 million of restructuring charges (see Note 4). Other expense in the first quarter of 2020 also includes gains of $0.4 million related to divestitures of Insituform Australia and Insituform Spain (see Note 1).  

The following table summarizes revenues and gross profit by geographic region (in thousands):

	Quarter Ended March 31,
	2020		2019
Revenues: (1)
United States	$	233,220	$	208,775
Canada		21,855		24,068
Europe		10,671		16,003
Other foreign		21,629		28,058
Total revenues	$	287,375	$	276,904
Gross profit: (1)
United States	$	39,636	$	31,827
Canada		2,731		3,454
Europe		2,948		3,519
Other foreign		4,569		9,495
Total gross profit	$	49,884	$	48,295

⁽¹⁾  Revenues and gross profit are attributed to the country of origin