Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

18. SEGMENT INFORMATION

The Company has three operating and reportable segments: Assessment, Permitting and Response, Measurement and Analysis and Remediation and Reuse. These segments are monitored separately by management for performance against budget and prior year and are consistent with internal financial reporting. The Company’s operating segments are organized based upon primary services provided, the nature of the production process, their type of customers, methods used to distribute the products and the nature of the regulatory environment.

Segment Adjusted EBITDA is the primary measure of operating performance for all three operating segments. Segment Adjusted EBITDA is the calculated Company’s Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”), adjusted to exclude certain transactions such as stock-based compensation, acquisition costs and fair value changes in financial instruments, amongst others. Beginning in the first quarter of 2023, the calculation of Segment adjusted EBITDA no longer adjusts for start-up losses and investment in new services as the Chief Operating Decision Maker (“CODM”) no longer reviews the Segment Adjusted EBITDA measure without these costs. The CODM does not review segment assets as a measure of segment performance.

During the first quarter of 2023, the Company determined to sell one of its specialty service lines within the lab testing business (the "Discontinuing Specialty Lab"), whose performance has been sporadic and whose service offering is non-core to the Company’s business. The Company expects the sale process to be completed by December 31, 2023. The discontinuation of this specialty service line, which is part of the Company's Measurement and Analysis segment, did not represent a strategic shift that had (or will have) a major effect on the Company’s operations and financial results, therefore it did not meet the requirements to be classified as discontinued operations.

Corporate and Other includes costs associated with general corporate overhead (including executive, legal, finance, safety, human resources, marketing and IT related costs) that are not directly related to supporting operations. Overhead costs that are directly related to supporting operations (such as insurance, software, licenses, shared services and payroll processing costs) are allocated to the operating segments on a basis that reasonably approximates an estimate of the use of these services.

Segment revenues and Adjusted EBITDA consisted of the following:

	Three Months Ended March 31,
	2023						2022
				Segment						Segment
	Segment			Adjusted			Segment			Adjusted
	Revenues			EBITDA			Revenues			EBITDA(3)
Assessment, Permitting and Response	$	52,214		$	14,266		$	45,600		$	9,623
Measurement and Analysis		42,527	(1)		6,387			39,761	(1)		6,322		(2)
Remediation and Reuse		36,687			5,278			49,319			7,993
Total Operating Segments		131,428			25,931			134,680			23,938
Corporate and Other		—			(9,328	)		—			(7,487	)
Total	$	131,428		$	16,603		$	134,680		$	16,451

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(1) Includes revenue of $1.4 million and $5.6 million from the Discontinuing Specialty Lab, for the three months ended March 31, 2023 and March 31, 2022, respectively.
(2) Includes Adjusted EBITDA of $1.3 million from the Discontinuing Specialty Lab.

(3) Includes the add back of start-up losses and investment in new services of $0.8 million.

Presented below is a reconciliation of the Company’s segment measure to net loss:

	For the Three Months Ended March 31,
	2023				2022
Total	$	16,603			$	16,451
Interest expense, net		(1,541	)			(1,092	)
Income tax expense		(1,367	)			(1,269	)
Depreciation and amortization		(10,555	)			(12,144	)
Stock-based compensation		(13,035	)			(10,425	)
Start-up losses and investment in new services		—				(786	)
Acquisition costs		(775	)			(467	)
Fair value changes in financial instruments		(1,873	)			2,449
Fair value changes in business acquisition    contingencies		398				21
Expenses related to financing transactions		(4	)			(7	)
Discontinuing Specialty Lab		(2,436	)	(1)		—
Other losses or expenses		(134	)			(267	)
Net loss	$	(14,719	)		$	(7,536	)

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(1) Amounts consist of operating losses before depreciation related to the Discontinuing Specialty Lab.