Note 5 - Business Segment Reporting

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

5. Business segment reporting

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s Chief Operating Decision Maker (“CODM”), which is our Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM manages our operational segments that are aligned with our geographical regions as below:

● North and Latin America (“NLA”),

● Europe and Sub-Saharan Africa (“ESSA”),

● Middle East and North Africa (“MENA”), and

● Asia-Pacific (“APAC”).

The following table presents our revenue disaggregated by our operating segments (in thousands):

	Three Months Ended March 31,
	2024		2023
NLA	$	130,389	$	126,228
ESSA		121,746		113,648
MENA		71,494		50,945
APAC		59,860		48,458
Total	$	383,489	$	339,279

Segment EBITDA

Our CODM regularly evaluates the performance of our operating segments using Segment EBITDA, which we define as income (loss) before income taxes adjusted for corporate costs, equity in income of joint ventures, depreciation and amortization expense, impairment expense, gain (loss) on disposal of assets, merger and integration expense, severance and other expense, stock-based compensation expense, foreign exchange gains (losses), other income (expense), net, and interest and finance income (expense), net.

The following table presents our Segment EBITDA disaggregated by our operating segments and a reconciliation to income (loss) before income taxes (in thousands):

	Three Months Ended March 31,
	2024			2023
NLA	$	34,377		$	31,874
ESSA		25,201			20,785
MENA		24,538			14,568
APAC		10,786			(2,698	)
Total Segment EBITDA		94,902			64,529
Corporate costs		(31,300	)		(25,081	)
Equity in income of joint ventures		3,858			2,436
Depreciation and amortization expense		(40,146	)		(34,737	)
Merger and integration expense		(2,161	)		(2,138	)
Severance and other expense		(5,062	)		(927	)
Stock-based compensation expense		(5,070	)		(4,171	)
Foreign exchange (loss) gain		(2,743	)		1,070
Other income (expense), net		485			(949	)
Interest and finance expense, net		(3,152	)		(1,298	)
Income (loss) before income taxes	$	9,611		$	(1,266	)

Corporate costs include the costs of running our corporate head office and other central functions that support the operating segments, including research, engineering and development, logistics, sales and marketing and health and safety and are not attributable to a particular operating segment.