15. Segment Reporting

The Company has identified reportable segments as those consolidated subsidiaries that represent 10% or more of its revenue, EBITDA (as defined below) or total assets, or when the Company believes information about the segment would be useful to the readers of the financial statements. The Company’s chief operating decision maker is its Chief Executive Officer who is charged with management of the Company and is responsible for the evaluation of operating performance and decision making about the allocation of resources to operating segments based on measures, such as revenue and EBITDA.

EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate segment operating performance. As the Company uses the term, EBITDA is defined as income before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure and is superior to available GAAP measures as it represents a transparent view of the Company’s operating performance that is unaffected by fluctuations in property, equipment and leasehold improvement additions. The Company’s chief operating decision maker uses EBITDA to perform periodic reviews and comparison of operating trends and identify strategies to improve the allocation of resources amongst segments.

On August 3, 2018, the Company completed the sale of the U.K. Limited segment. See Note 3 “Discontinued Operation” for further information. The Company has restated all historical periods presented within these financial statements and has not included U.K. Limited as a reportable segment.

As of September 30, 2019, the Company’s reportable segments were as follows:

 U.S. Debit and Credit,

 U.S. Prepaid Debit, and

 Other.

The Other category includes the Company’s corporate headquarters and a less significant operating segment that historically derived its revenue from the production of financial payment cards and retail gift cards in Canada. The Company’s Canadian subsidiary was sold on April 1, 2019. The sale agreement did not include the portions of the business relating to Financial Payment Cards, as those business customers of the Canadian subsidiary migrated to the Company’s operations in the U.S. or to other service providers in 2019.

Performance Measures of Reportable Segments

Revenue and EBITDA of the Company’s reportable segments for the three and nine months ended September 30, 2019, and 2018, were as follows:


	Net Sales
	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
U.S. Debit and Credit	$	51,502	$	48,002	$	151,517	$	128,992
U.S. Prepaid Debit		20,452		21,190		53,162		52,128
Other		—		1,920		1,679		7,599
Intersegment eliminations		(273)		(125)		(910)		(1,421)
Total	$	71,681	$	70,987	$	205,448	$	187,298


	EBITDA
	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
U.S. Debit and Credit	$	11,417	$	9,136	$	32,387	$	24,788
U.S. Prepaid Debit		8,342		8,831		20,001		18,337
Other		(7,551)		(8,999)		(19,292)		(24,246)
Total	$	12,208	$	8,968	$	33,096	$	18,879

The following table provides a reconciliation of total segment EBITDA from continuing operations to net loss from continuing operations for the three and nine months ended September 30, 2019, and 2018:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Total segment EBITDA from continuing operations	$	12,208	$	8,968	$	33,096	$	18,879
Interest, net		(6,085)		(6,151)		(18,847)		(17,243)
Income tax (expense) benefit		(2,515)		355		(3,695)		4,933
Depreciation and amortization		(4,264)		(4,257)		(12,755)		(14,133)
Net loss from continuing operations	$	(656)	$	(1,085)	$	(2,201)	$	(7,564)

Balance Sheet Data of Reportable Segments

Total assets of the Company’s reportable segments at September 30, 2019, and December 31, 2018, were as follows:


	September 30, 2019		December 31, 2018

U.S. Debit and Credit	$	174,139	$	169,567
U.S. Prepaid Debit		30,432		25,117
Other		9,178		12,520
Total assets	$	213,749	$	207,204

Net Sales by Products and Services

Net sales from products and services sold by the Company for the three and nine months ended September 30, 2019 and 2018 were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018

Products net sales (a)	$	33,963	$	34,673	$	99,845	$	90,911
Services net sales (b)		37,718		36,314		105,603		96,387
Total net sales	$	71,681	$	70,987	$	205,448	$	187,298

(a) “Products” net sales include the design and production of Financial Payment Cards in contact-EMV, Dual-Interface EMV, metal, contactless and magnetic stripe card formats. The Company also generates “Products” revenue from the sale of Card@Once printers and consumables, private label credit cards and retail gift cards.

(b) “Services” net sales include revenue from the personalization and fulfillment of Financial Payment Cards, providing tamper-evident security packaging and fulfillment services to Prepaid Debit Card program managers and software as a service personalization of instant issuance debit cards. The Company also generates “Services” revenue from click-fees generated from the Company’s patented card design software, known as MYCA, which provides customers and cardholders the ability to design cards on the internet and customize cards with individualized digital images. “Services” revenue is also generated from personalizing retail gift cards, historically generated in Canada prior to the disposition.

Net Sales to Geographic Locations, Property, Equipment and Leasehold Improvements and Long-Lived Assets

Subsequent to the sale of the Company’s U.K. Limited segment and reclassification to discontinued operations, and the sale of the Company’s Canada operations on April 1, 2019, the Company’s Net Sales, Property, Equipment and Leasehold Improvements, and Long-Lived assets relating to geographic locations outside of the United States is insignificant.