Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

13. Segment Information

     Our operating segments represent components of our business for which discrete financial information is available and is reviewed regularly by the chief operating decision-maker, or decision-making group, to evaluate performance and make operating decisions. We conduct our operations through two operating segments: Energy and Smart Grid Solutions, and Energy Services. Our reportable segments are strategic business units that offer different products and services and serve different customer bases. They are managed separately because each business requires different technology and marketing strategies. Our WaterSecure and Southern Flow businesses, which previously operated in our Energy Services segment, were sold in June 2011 and January 2011, respectively. As a result of these sales, we will no longer actively operate in the Energy Services segment in the future.

     Energy and Smart Grid Solutions – Through our PowerSecure subsidiary we serve utilities and commercial, institutional, and industrial customers in the areas of Interactive Distributed Generation, Utility Infrastructure and Energy Efficiency. Each of these PowerSecure subsidiary business units operates in a distinct market with distinct technical disciplines, but shares a common customer base, sales force, and administrative infrastructure with other PowerSecure subsidiary products and services and which we grow through shared resources and customer relationships. Accordingly, these units are included within our Energy and Smart Grid Solutions segment results; and

Energy Services – Until June 2011, we served customers in the oil and natural gas production

business with water processing and disposal services through our WaterSecure subsidiary, which holds an equity investment in MM 1995-2. In June 2011, substantially all of the assets and business of MM 1995-2 were sold. Accordingly, our WaterSecure subsidiary no longer has any on-going operations. Similarly, the operations of our Southern Flow subsidiary, which previously was included in this segment, were sold in January 2011 pursuant to the execution of a purchase agreement in December 2010. Accordingly, the Southern Flow business has been discontinued and the results of its operations are excluded from our Energy Services segment for all periods presented in the information below. The sales of our WaterSecure and Southern Flow operations were the fulfillment of our strategy to monetize our non-core assets to focus on the businesses in our Energy and Smart Grid Solutions business segment. As a result of these sales, our Energy Services segment ceased business activities in June 2011 and thus we no longer report ongoing operations in the Energy Services segment in financial periods after June 30, 2011.

     The accounting policies of the reportable segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements. We evaluate the performance of our operating segments based on income (loss) before income taxes. There are no intersegment sales.

     Summarized financial information concerning our reportable segments is shown in the following table. Unallocated corporate cost amounts include corporate overhead, other income and interest expense which, for purposes of evaluating the operations of our segments, are not allocated to our segment activities. Total asset amounts exclude intercompany receivable balances eliminated in consolidation.

		Three Months Ended September 30, 2011
		Energy and Smart Grid Solutions			Energy Services		Unallocated Corporate Costs					Total
Revenues	$	38,229		$	-		$	-			$	38,229
Cost of sales		26,582			-			-				26,582
Gross profit		11,647			-			-				11,647
Operating expenses:
General and administrative		7,862			-			1,306				9,168
Selling, marketing and service		1,279			-			-				1,279
Depreciation and amortization		858			-							858
Total operating expenses		9,999			-			1,306				11,305
Operating income (loss)		1,648			-			(1,306	)			342
Other income and (expenses):
Gain on sale of unconsolidated affiliate		-			44			-				44
Equity income		-			-			-				-
Management fees		-			-			-				-
Interest income and other income		-			-			31				31
Interest expense		(124	)		-			(44	)			(168	)
Income (loss) before income taxes	$	1,524		$	44		$	(1,319	)		$	249
Total capital expenditures	$	4,800		$	0		$	0			$	4,800
Total investment in unconsolidated affiliate	$	0		$	195		$	0			$	195
Total goodwill	$	7,970		$	0		$	0			$	7,970
Total assets	$	118,622		$	195	$	35,011			$	153,828

		Three Months Ended September 30, 2010
		Energy and Smart Grid Solutions			Energy Services		Unallocated Corporate Costs				Total
Revenues	$	26,316		$	-		$	-		$	26,316
Cost of sales		17,747			-			-			17,747
Gross profit		8,569			-			-			8,569
Operating expenses:
General and administrative		6,332			-			1,056			7,388
Selling, marketing and service		1,383			-			-			1,383
Depreciation and amortization		737			18			1			756
Total operating expenses		8,452			18			1,057			9,527
Operating income (loss)		117			(18	)		(1,057	)		(958	)
Other income and (expenses):
Equity income		-			598			-			598
Management fees		-			136			-			136
Interest income and other income		-			-			24			24
Interest expense		(111	)		-			(66	)		(177	)
Income (loss) before income taxes	$	6		$	716		$	(1,099	)	$	(377	)
Total capital expenditures	$	1,291		$	0		$	0		$	1,291
Total investment in unconsolidated affiliate	$	0		$	4,129		$	0		$	4,129
Total goodwill	$	7,970		$	0		$	0		$	7,970

		Nine Months Ended September 30, 2011
		Energy and Smart Grid Solutions			EnergyServices		Unallocated Corporate Costs				Total
Revenues	$	92,159		$	-		$	-		$	92,159
Cost of sales		65,183			-			-			65,183
Gross profit		26,976			-			-			26,976
Operating expenses:
General and administrative		21,823			-			3,773			25,596
Selling, marketing and service		3,657			-			-			3,657
Depreciation and amortization		2,468			30			1			2,499
Total operating expenses		27,948			30			3,774			31,752
Operating income (loss)		(972	)		(30	)		(3,774	)		(4,776	)
Other income and (expenses):
Gain on sale of unconsolidated affiliate		-			21,830			-			21,830
Equity income		-			1,559			-			1,559
Management fees		-			282			-			282
Interest income and other income		-			-			73			73
Interest expense		(311	)		-			(143	)		(454	)
Income (loss) before income taxes	$	(1,283	)	$	23,641		$	(3,844	)	$	18,514
Total capital expenditures	$	14,108		$	0		$	0		$	14,108

		Nine Months Ended September 30, 2010
		Energy and Smart Grid Solutions			Energy Services		Unallocated Corporate Costs				Total
Revenues	$	76,509		$	-		$	-		$	76,509
Cost of sales		50,098			-			-			50,098
Gross profit		26,411			-			-			26,411
Operating expenses:
General and administrative		17,417			-			3,759			21,176
Selling, marketing and service		3,777			-			-			3,777
Depreciation and amortization		1,952			55			4			2,011
Total operating expenses		23,146			55			3,763			26,964
Operating income (loss)		3,265			(55	)		(3,763	)		(553	)
Other income and (expenses):
Equity income		-			2,435			-			2,435
Management fees		-			432			-			432
Interest income and other income		-			-			77			77
Interest expense		(248	)		-			(209	)		(457	)
Income (loss) before income taxes	$	3,017		$	2,812		$	(3,895	)	$	1,934
Total capital expenditures	$	4,212		$	0		$	1		$	4,213