SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s operations include two primary segments: Recycling and Waste Services. The Recycling segment ("Recycling") provides products and services to meet the needs of its customers related to ferrous, non-ferrous and fiber recycling in two locations in the Midwest. The Waste Services segment ("Waste Services") provides waste disposal services including contract negotiations with service providers, centralized billing, invoice auditing, and centralized dispatching. Waste Services also sells, leases, and services waste handling and recycling equipment, such as trash compactors and balers to end user customers.

The Company’s two reportable segments are determined by the products and services that each offers. Recycling generates its revenues based on buying and selling of ferrous and non-ferrous, including stainless steel, scrap metals, automobile parts and fiber scrap. On July 2, 2012, the Company opened the ISA Pick.Pull.Save used automobile yard, which is considered a product line within Recycling. The Company purchases automobiles for the yard through auctions, automobile purchase programs with various suppliers, and general scrap purchases. Retail customers locate and remove used parts for purchase from automobiles within the yard. Fuel, Freon, tires and certain core automobile parts are also sold to various vendors for additional revenue. All automobiles are shredded and sold as scrap metal after a specified time period in the yard.

Waste Services’ revenues consist of charges to customers for waste disposal services and equipment sales and lease income. The components of the column labeled “other” are selling, general and administrative expenses that are not directly related to the two primary segments.

The accounting policies of the two segments are the same as those described in the summary of significant accounting policies (Note 1). We evaluate segment performance based on gross profit or loss and the evaluation process for each segment includes only direct expenses and selling, general and administrative costs, omitting any other income and expense and income taxes.

The majority of the assets listed under the column labeled "other" include land, buildings and deferred taxes that are used by multiple segments, which makes them not appropriate to allocate. We consider such assets corporate assets. Expenses related to land and buildings, including property taxes, insurance and utilities, are allocated to each segment based on a formula. Depreciation expense for Recycling totaled $2.5 million and $2.3 million for the years ended December 31, 2014 and 2013, respectively. Depreciation expense for Waste Services totaled $436.3 thousand and $397.2 thousand for the years ended December 31, 2014 and 2013, respectively. Depreciation expense for Other totaled $203.8 thousand and $624.5 thousand for the years ended December 31, 2014 and 2013, respectively. Amortization expense for Recycling totaled $0.0 thousand and $641.0 thousand for the years ended December 31, 2014 and 2013, respectively. We did not have any amortization expense in Waste Services or Other in any year.

2014	RECYCLING			WASTE SERVICES			OTHER			SEGMENT TOTALS
	(in thousands)
Recycling revenues	$	110,091		$	—		$	—		$	110,091
Equipment sales, service and leasing revenues	—			2,262			—			2,262
Management fees	—			5,051			—			5,051
Cost of sales	(109,624		)	(5,188		)	—			(114,812		)
Inventory adjustment for lower of cost or market	(1,911		)	—			—			(1,911		)
Selling, general, and administrative expenses	(1,413		)	(746		)	(5,025		)	(7,184		)
Segment (loss) profit	$	(2,857	)	$	1,379		$	(5,025	)	$	(6,503	)

2014	RECYCLING		WASTE SERVICES		OTHER		SEGMENT TOTALS
	(in thousands)
Cash	$	529	$	178	$	352	$	1,059
Income tax receivable	—		—		—		—
Accounts receivable, net	9,282		737		—		10,019
Inventories	6,729		48		—		6,777
Net property and equipment	15,344		1,234		2,164		18,742
Deferred income taxes	—		—		97		97
Other assets	634		12		450		1,096
Segment assets	$	32,518	$	2,209	$	3,063	$	37,790

2013	RECYCLING			WASTE SERVICES			OTHER			SEGMENT TOTALS
	(in thousands)
Recycling revenues	$	129,373		$	—		$	—		$	129,373
Equipment sales, service and leasing revenues	—			2,311			—			2,311
Management fees	—			5,069			—			5,069
Cost of sales	(129,154		)	(5,403		)	—			(134,557		)
Inventory adjustment for lower of cost or market	(2,225		)	—			—			(2,225		)
Selling, general, and administrative expenses	(2,692		)	(883		)	(4,157		)	(7,732		)
Impairment loss, goodwill	(3,489		)	—			—			(3,489		)
Segment (loss) profit	$	(8,187	)	$	1,094		$	(4,157	)	$	(11,250	)

2013	RECYCLING		WASTE SERVICES		OTHER		SEGMENT TOTALS
	(in thousands)
Cash	$	835	$	132	$	622	$	1,589
Income tax receivable	—		—		7		7
Accounts receivable, net	10,496		960		—		11,456
Inventories	8,728		54		—		8,782
Net property and equipment	14,773		1,320		5,733		21,826
Deferred income taxes	—		—		97		97
Other assets	67		180		28		275
Segment assets	$	34,899	$	2,646	$	6,487	$	44,032