Note 10 - Segment Information

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10.

     Segment Information

The Company reports net revenues from operating income by reportable segment. Reportable segments are components of the Company for which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising, business technology and marketing services throughout the world, operating within

two

reportable segments, its Domestic Division and its International Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its Domestic and International Divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts.

The accounting policies of each of the reportable segments are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	201 8			201 7			201 8			201 7
Revenue:
United States	$	22,413		$	15,062		$	62,338		$	40,069
International		35,975			33,690			109,853			91,292
Total revenue	$	58,388		$	48,752		$	172,191		$	131,361
Operating income (loss):
United States	$	1,085		$	343		$	(1,135	)	$	701
International		1,239			485			2,952			1,583
Total operating income	$	2,324		$	828		$	1,817		$	2,284
Interest expense (income):
United States	$	68		$	56		$	130		$	158
International		265			54			756			(41	)
Total interest expense	$	333		$	110		$	886		$	117
Other (income), net:
United States	$	–		$	–		$	–		$	–
International		(109	)		(78	)		(413	)		(275	)
Total other (income), net	$	(109	)	$	(78	)	$	(413	)	$	(275	)
Income (loss) before income tax expense:
United States	$	1,017		$	287		$	(1,265	)	$	543
International		1,083			509			2,609			1,899
Total income before income tax expense	$	2,100		$	796		$	1,344		$	2,442
Income tax (benefit) expense:
United States	$	255		$	14		$	(191	)	$	(71	)
International		164			196			526			978
Total income tax expense	$	419		$	210		$	335		$	907
Net income (loss):
United States	$	762		$	273		$	(1,074	)	$	614
International		919			313			2,083			921
Total net income	$	1,681		$	586		$	1,009		$	1,535
Depreciation and amortization:
United States	$	358		$	339		$	1,079		$	1,018
International		164			148			516			508
Total depreciation and amortization	$	522		$	487		$	1,595		$	1,526
Capital expenditures:
United States	$	293		$	172		$	1,200		$	683
International		96			183			140			363
Total capital expenditures	$	389		$	355		$	1,340		$	1,046

Note: There were

no

inter-company sales for the

nine

months ended

September 30, 2018

or

2017.

	September 30 ,		December 31 ,
	2018		2017
Assets:
United States	$	29,063	$	17,511
International		42,104		40,477
Total assets	$	71,167	$	57,988

	September 30 ,		December 31,
	20 18		20 17
Long lived assets:
United States	$	10,486	$	7,109
International		3,946		4,057
Total long lived assets	$	14,432	$	11,166

Geographic Data

(in thousands)

	Three Months Ended September 30 ,										Nine Months Ended September 30 ,
	20 18					2017					20 18					2017
International revenue:			% of consolidated net revenue					% of consolidated net revenue					% of consolidated net revenue					% of consolidated net revenue
Brazil	$	12,644		21.7	%	$	11,132		22.8	%	$	39,100		22.7	%	$	29,232		22.3	%
South Africa		6,807		11.7			6,703		13.7			21,651		12.6			19,646		15.0
Mexico		5,142		8.8			6,115		12.5			15,738		9.1			16,177		12.3
China		3,338		5.7			2,868		5.9			9,870		5.7			7,396		5.6
Japan		3,080		5.3			2,426		5.0			8,086		4.7			5,970		4.5
India		2,065		3.5			1,947		4.0			6,871		4.0			5,397		4.1
Canada		1,947		3.3			1,499		3.1			5,725		3.3			4,544		3.5
Australia		892		1.5			935		1.9			2,629		1.5			2,741		2.1
Turkey		60		0.1			65		0.1			183		0.1			189		0.1
Total international revenue	$	35,975		61.6	%	$	33,690		69.0	%	$	109,853		63.7	%	$	91,292		69.5	%