Segment Disclosure |
Segment Disclosure The Company’s three operating segments are: | | • | Services. This segment provides asset protection solutions predominantly in North America, with the largest concentration in the United States, followed by Canada, consisting primarily of NDT and inspection and engineering services that are used to evaluate the structural integrity and reliability of critical energy, commercial aerospace components, industrial and public infrastructure. |
| | • | International. This segment offers services, products and systems similar to those of the other segments to select markets within Europe, the Middle East, Africa, Asia and South America, but not to customers in China and South Korea, which are served by the Products and Systems segment. |
| | • | Products and Systems. This segment designs, manufactures, sells, installs and services the Company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States. |
Costs incurred for general corporate services, including finance, legal, and certain other costs that are provided to the segments are reported within Corporate and eliminations. Sales to the International segment from the Products and Systems segment and subsequent sales by the International segment of the same items are recorded and reflected in the operating performance of both segments. Additionally, engineering charges and royalty fees charged to the Services and International segments by the Products and Systems segment are reflected in the operating performance of each segment. All such intersegment transactions are eliminated in the Company’s consolidated financial reporting. Selected consolidated financial information by segment for the periods shown was as follows (intercompany transactions are eliminated in Corporate and eliminations): | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2018 | | September 30, 2017 | | September 30, 2018 | | September 30, 2017 | Revenues | |
| | |
| | | | | Services | $ | 141,340 |
| | $ | 137,194 |
| | $ | 434,653 |
| | $ | 397,565 |
| International | 36,671 |
| | 38,200 |
| | 116,238 |
| | 106,360 |
| Products and Systems | 5,716 |
| | 6,268 |
| | 17,286 |
| | 16,925 |
| Corporate and eliminations | (1,558 | ) | | (2,092 | ) | | (6,585 | ) | | (7,524 | ) | | $ | 182,169 |
| | $ | 179,570 |
| | $ | 561,592 |
| | $ | 513,326 |
|
| | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2018 | | September 30, 2017 | | September 30, 2018 | | September 30, 2017 | Gross profit | |
| | |
| | | | | Services | $ | 38,838 |
| | $ | 34,729 |
| | $ | 113,675 |
| | $ | 100,432 |
| International | 10,877 |
| | 10,432 |
| | 34,273 |
| | 29,720 |
| Products and Systems | 2,604 |
| | 2,753 |
| | 7,707 |
| | 7,313 |
| Corporate and eliminations | 13 |
| | (17 | ) | | (96 | ) | | (73 | ) | | $ | 52,332 |
| | $ | 47,897 |
| | $ | 155,559 |
| | $ | 137,392 |
|
| | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2018 | | September 30, 2017 | | September 30, 2018 | | September 30, 2017 | Income (loss) from operations | |
| | |
| | | | | Services | $ | 8,289 |
| | $ | 11,699 |
| | $ | 36,892 |
| | $ | 31,211 |
| International | (662 | ) | | 1,023 |
| | 2,713 |
| | 3,866 |
| Products and Systems | 2,415 |
| | (15,573 | ) | | 2,032 |
| | (16,913 | ) | Corporate and eliminations | (7,025 | ) | | (7,524 | ) | | (21,917 | ) | | (20,287 | ) | | $ | 3,017 |
| | $ | (10,375 | ) | | $ | 19,720 |
| | $ | (2,123 | ) |
Income (loss) from operations by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations. | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2018 | | September 30, 2017 | | September 30, 2018 | | September 30, 2017 | Depreciation and amortization | |
| | |
| | |
| | |
| Services | $ | 5,951 |
| | $ | 5,543 |
| | $ | 17,892 |
| | $ | 16,330 |
| International | 2,179 |
| | 2,004 |
| | 6,720 |
| | 5,736 |
| Products and Systems | 362 |
| | 594 |
| | 1,091 |
| | 1,746 |
| Corporate and eliminations | 5 |
| | (46 | ) | | 33 |
| | (168 | ) | | $ | 8,497 |
| | $ | 8,095 |
| | $ | 25,736 |
| | $ | 23,644 |
|
| | | | | | | | | | September 30, 2018 | | December 31, 2017 | Intangible assets, net | |
| | |
| Services | $ | 42,638 |
| | $ | 46,864 |
| International | 11,770 |
| | 13,899 |
| Products and Systems | 1,571 |
| | 2,261 |
| Corporate and eliminations | 536 |
| | 715 |
| | $ | 56,515 |
| | $ | 63,739 |
|
| | | | | | | | | | September 30, 2018 | | December 31, 2017 | Total assets | |
| | |
| Services | $ | 376,694 |
| | $ | 377,585 |
| International | 145,779 |
| | 150,779 |
| Products and Systems | 12,748 |
| | 12,733 |
| Corporate and eliminations | 12,927 |
| | 13,344 |
| | $ | 548,148 |
| | $ | 554,441 |
|
Revenues by geographic area for the three and nine months ended September 30, 2018 and 2017, respectively, were as follows: | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | September 30, 2018 | | September 30, 2017 | | September 30, 2018 | | September 30, 2017 | Revenues | |
| | |
| | | | | United States | $ | 120,454 |
| | $ | 114,249 |
| | $ | 371,570 |
| | $ | 344,808 |
| Other Americas | 23,657 |
| | 26,084 |
| | 71,335 |
| | 59,452 |
| Europe | 35,029 |
| | 36,264 |
| | 108,902 |
| | 97,630 |
| Asia-Pacific | 3,029 |
| | 2,973 |
| | 9,785 |
| | 11,436 |
| | $ | 182,169 |
| | $ | 179,570 |
| | $ | 561,592 |
| | $ | 513,326 |
|
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