Note 14 - Segment and Geographic Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14.    SEGMENT AND GEOGRAPHIC INFORMATION

The Company has two operating segments, which are also its reportable segments: Infrastructure Solutions and Corrosion Protection. 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. In December 2020, the Company’s board of directors approved a plan to sell its Energy Services operating segment (see Note 6). As a result, the operating results of the former Energy Services segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the years ended December 31, 2020, 2019 and 2018. Additionally, the relevant asset and liability balances of Energy Services are presented as held for sale at December 31, 2020, 2019 and 2018.

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):

	Years Ended December 31,
	2020			2019			2018
Revenues:
Infrastructure Solutions	$	562,571		$	590,797		$	604,121
Corrosion Protection		245,193			295,090			393,740
Total revenues	$	807,764		$	885,887		$	997,861
Gross profit:
Infrastructure Solutions	$	144,213		$	144,074		$	132,411
Corrosion Protection		52,246			60,927			92,968
Total gross profit	$	196,459		$	205,001		$	225,379
Operating income (loss):
Infrastructure Solutions (1)	$	78,098		$	42,079		$	37,509
Corrosion Protection (2)		(6,133	)		(5,635	)		16,283
Corporate (3)		(30,977	)		(35,211	)		(33,783	)
Total operating income		40,988			1,233			20,009
Other income (expense):
Interest expense (4)		(12,483	)		(11,358	)		(14,709	)
Interest income		1,125			1,038			516
Other (5)		437			(10,893	)		(9,881	)
Total other expense		(10,921	)		(21,213	)		(24,074	)
Income (loss) before taxes (benefit) on income (loss)	$	30,067		$	(19,980	)	$	(4,065	)
Total assets:
Infrastructure Solutions	$	511,606		$	508,226		$	500,977
Corrosion Protection		238,566			278,694			279,106
Corporate and other		58,425			39,794			50,098
Assets held for sale		92,850			168,799			162,236
Total assets	$	901,447		$	995,513		$	992,417
Capital expenditures: (6)
Infrastructure Solutions	$	10,103		$	10,679		$	12,730
Corrosion Protection		5,654			11,437			9,754
Corporate		802			3,219			4,977
Total capital expenditures	$	16,559		$	25,335		$	27,461
Depreciation and amortization: (7)
Infrastructure Solutions	$	14,174		$	13,773		$	16,758
Corrosion Protection		12,007			12,487			11,874
Corporate		2,521			2,413			2,112
Total depreciation and amortization	$	28,702		$	28,673		$	30,744

(1)	Operating income for 2020 includes: (i) $0.1 million of restructuring reversals (see Note 4); (ii) $0.4 million of costs primarily related to the planned divestiture of certain international operations; and (iii) $1.1 million of impairment reversals related to assets held for sale. Operating income for 2019 includes: (i) $7.5 million of restructuring charges (see Note 4); (ii) $1.0 million of costs primarily related to the planned divestiture of certain international operations; and (iii) $17.6 million of impairment charges to assets held for sale (see Note 6). Operating income for 2018 includes: (i) $16.1 million of restructuring charges (see Note 4); and (ii) $0.4 million of cost incurred related to the disposition of Denmark.
(2)	Operating loss for 2020 includes $9.5 million of restructuring charges (see Note 4). Operating loss for 2019 includes: (i) $7.7 million of restructuring charges (see Note 4); (ii) $0.1 million of divestiture costs; and (iii) $2.9 million of impairment charges to assets held for sale (see Note 6). Operating income for 2018 includes: (i) $7.6 million of restructuring charges (see Note 4); and (ii) $2.5 million of costs incurred related to the divestiture of Bayou.
(3)	Operating loss for 2020 includes: (i) $2.7 million of restructuring charges (see Note 4); (ii) $3.2 million of divestiture costs; and (iii) $1.3 million of impairment charges related to assets held for sale (see Note 6). Operating loss for 2019 includes: (i) $5.2 million of restructuring charges (see Note 4); (ii) $2.2 million of costs primarily related to the planned divestiture of certain international operations; and (iii) $2.9 million of impairment charges to assets held for sale (see Note 6). Operating loss for 2018 includes $1.6 million of restructuring charges (see Note 4) and $4.1 million of divestiture costs.
(4)	Interest expense for 2020 includes $0.7 million of third-party arranging fees, expenses and the write-off of unamortized loan costs associated with the amended Credit Facility (see Note 9). Interest expense for 2018 includes $2.3 million of third-party arranging fees, expenses and the write-off of unamortized loan costs associated with the amended Credit Facility (see Note 9).
(5)	Other expense for 2020 includes gains of $0.9 million related to restructuring (see Note 4). Other expense for 2019 includes $10.2 million of restructuring charges (see Note 4). Other expense for 2018 includes charges of $7.0 million related to the loss on the sale of Bayou (see Note 1) and $4.0 million of restructuring charges (see Note 4).
(6)	Capital expenditures from our discontinued operations were $3.0 million, $3.4 million and $3.1 million in 2020, 2019 and 2018, respectively.
(7)	Depreciation and amortization from our discontinued operations were $6.8 million, $7.5 million and $7.1 million in 2020, 2019 and 2018, respectively.

The following table summarizes revenues, gross profit, operating income (loss) and long-lived assets by geographic region (in thousands):

	Years Ended December 31,
	2020		2019			2018
Revenues: (1)
United States	$	572,729	$	586,628		$	630,584
Canada		118,253		123,033			133,612
Europe		37,251		64,278			66,794
Other foreign		79,531		111,948			166,871
Total revenues	$	807,764	$	885,887		$	997,861
Gross profit: (1)
United States	$	139,308	$	134,471		$	136,477
Canada		24,360		22,183			22,823
Europe		11,437		14,849			8,379
Other foreign		21,354		33,498			57,700
Total gross profit	$	196,459	$	205,001		$	225,379
Operating income (loss): (1)
United States	$	18,817	$	(3,528	)	$	(9,464	)
Canada		11,849		7,460			9,482
Europe		6,230		(11,363	)		(10,599	)
Other foreign		4,092		8,664			30,590
Total operating income	$	40,988	$	1,233		$	20,009
Long-lived assets: (1)(2)
United States	$	89,487	$	83,225		$	105,978
Canada		7,817		7,462			7,725
Europe		3,073		3,336			8,295
Other foreign		1,413		10,192			6,662
Total long-lived assets	$	101,790	$	104,215		$	128,660

(1)	Attributed to the country of origin.
(2)	Long-lived assets do not include goodwill, intangible assets, operating lease assets or deferred tax assets.