SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Dec. 31, 2021

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

9. SEGMENT AND GEOGRAPHICAL INFORMATION

Segment Information

The Company’s two segments are Energy and Engineering and Consulting, and the Company’s chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format.

There were no intersegment sales in any of the three fiscal years ended December 31, 2021. The Company’s chief operating decision maker evaluates the performance of each segment based upon income or loss from operations before income taxes. Certain segment asset information including expenditures for long-lived assets has not been presented as it is not reported to or reviewed by the chief operating decision maker. In addition, enterprise-wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.

Financial information with respect to the reportable segments and reconciliation to the amounts reported in the Company’s consolidated financial statements follows:

			Engineering		Unallocated				Consolidated
	Energy		& Consulting		Corporate		Intersegment		Total
	(in thousands)
Fiscal Year 2021
Contract revenue	$	286,385	$	67,370	$	—	$	—	$	353,755
Depreciation and amortization		16,156		990		—		—		17,146
Interest expense		8		—		3,861		—		3,869
Segment profit (loss) before income tax expense		(4,808)		9,135		(16,731)		—		(12,404)
Income tax (benefit) expense		(1,546)		2,936		(5,377)		—		(3,987)
Net income (loss)		(3,263)		6,198		(11,352)		—		(8,417)
Segment assets (1)		363,232		21,423		32,897		(23,130)		394,422
Fiscal Year 2020
Contract revenue	$	324,178	$	66,802	$	—	$	—	$	390,980
Depreciation and amortization		17,666		1,077		—		—		18,743
Interest expense		32		—		5,036		—		5,068
Segment profit (loss) before income tax expense		(9,963)		9,500		(19,206)		—		(19,669)
Income tax (benefit) expense		(2,621)		2,499		(5,051)		—		(5,173)
Net income (loss)		(7,343)		7,002		(14,155)		—		(14,496)
Segment assets (1)		337,739		21,796		66,619		(23,130)		403,024
Fiscal Year 2019
Contract revenue	$	370,715	$	72,384	$	—	$	—	$	443,099
Depreciation and amortization		13,703		1,324		—		—		15,027
Interest expense		32		—		4,868		—		4,900
Segment profit before income tax expense		11,971		8,839		(16,154)		—		4,656
Income tax expense (benefit)		3,308		2,442		(5,935)		—		(185)
Net income (loss)		8,664		6,397		(10,220)		—		4,841
Segment assets (1)		392,362		23,682		46,999		(23,130)		439,913

(1) Segment assets are presented net of intercompany receivables.

The following tables provides information about disaggregated revenue by contract type, client type and geographical region:

	2021
	Energy		Engineering and Consulting		Total
	(in thousands, except percentage)
Contract Type
Time-and-materials	$	34,004	$	52,209	$	86,213
Unit-based		180,311		10,688		190,999
Fixed price		72,069		4,474		76,543
Total (1)	$	286,384	$	67,371	$	353,755
Client Type
Commercial	$	24,541	$	5,323	$	29,864
Government		65,249		61,899		127,148
Utilities (2)		196,594		149		196,743
Total (1)	$	286,384	$	67,371	$	353,755
Geography (3)
Domestic	$	286,384	$	67,371	$	353,755

	2020
	Energy		Engineering and Consulting		Total
	(in thousands, except percentage)
Contract Type
Time-and-materials	$	47,912	$	53,840	$	101,752
Unit-based		170,991		9,195		180,186
Fixed price		105,275		3,767		109,042
Total (1)	$	324,178	$	66,802	$	390,980
Client Type
Commercial	$	36,212	$	5,155	$	41,367
Government		93,821		61,412		155,233
Utilities (2)		194,145		235		194,380
Total (1)	$	324,178	$	66,802	$	390,980
Geography (3)
Domestic	$	324,178	$	66,802	$	390,980

	2019
	Energy		Engineering and Consulting		Total
	(in thousands, except percentage)
Contract Type
Time-and-materials	$	18,625	$	54,560	$	73,185
Unit-based		272,978		14,391		287,369
Fixed price		79,112		3,433		82,545
Total	$	370,715	$	72,384	$	443,099
Client Type
Commercial	$	39,311	$	4,895	$	44,206
Government		57,020		67,049		124,069
Utilities		274,384		440		274,824
Total	$	370,715	$	72,384	$	443,099
Geography (1)
Domestic	$	370,715	$	72,384	$	443,099

(1) Revenue from our foreign operations were immaterial for fiscal years 2021, 2020 and 2019.

The following sets forth the assets that are included in Unallocated Corporate as of December 31, 2021 and January 1, 2021.

	2021		2020
	(in thousands)
Assets:
Cash and cash equivalents	$	11,221	$	28,405
Accounts Receivable, net		(40,441)		(12,144)
Prepaid expenses		2,811		2,422
Intercompany receivables		1,131,100		691,440
Goodwill		2		2
Other receivables		4,328		4,409
Equipment and leasehold improvements, net		1,190		1,585
Investments in subsidiaries		36,084		26,576
ROU Assets		452		809
Other		399		444
Deferred income taxes		16,849		14,111
	$	1,163,995	$	758,059

Geographical Information

Substantially all of the Company’s consolidated revenue was derived from its operations in the U.S. In connection with the Company’s acquisition of E3, Inc. in October 28, 2019, the Company expanded its operations into Canada. Revenues from the Company’s Canadian operations were not material for fiscal years 2021, 2020 and 2019.

Customer Concentration

For fiscal years 2021, 2020, and 2019, the Company’s top 10 customers accounted for 49.2%, 48.0%, and 50.6%, respectively, of the Company’s consolidated contract revenue. During fiscal years 2021, 2020, 2019, the Company had individual customers that accounted for more than 10% of its consolidated contract revenues. For fiscal year 2021, the Company derived 10.8% of its consolidated contract revenue from one customer, Los Angeles Department of Water and Power (“LADWP”). For fiscal year 2020, the Company derived 10.2% of its consolidated contract revenue from one customer, LADWP. For fiscal year 2019, the Company derived 29.1% of its consolidated contract revenue from two customers, Consolidated Edison of New York and LADWP.

On a segment basis, the Company also had individual customers that accounted for more than 10% of its segment contract revenues. For fiscal year 2021, the Company derived 34.5% of its Energy segment revenues from three customers, LADWP, Duke Energy and Consolidated Edison of New York, and it derived 10.3% of its Engineering and Consulting segment revenues from one customer, the City of Elk Grove. For fiscal year 2020, the Company derived 22.5% of its Energy segment revenues from two customers, LADWP and The Dormitory Authority State of New York (“DASNY”), and it derived 18.2% of its Engineering and Consulting segment revenues from one customer, the City of Elk Grove. For fiscal year 2019, the Company derived 34.7% of its Energy segment revenues from two customers, Consolidated Edison of New York and LADWP, and it derived 25.0% of its Engineering and Consulting segment revenues from one customer, the City of Elk Grove.

The Company’s largest clients are based in California and New York. In fiscal year 2021, 2020, and 2019, services provided to clients in California accounted for 36.8%, 37.0%, and 41.1%, respectively, of the Company’s contract revenue and services provided to clients in New York accounted for 21.0%, 19.2%, and 27.2%, respectively, of the Company’s contract revenue.