Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

20. 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. The Chief Operating Decision Maker (“CODM”) does not review segment assets as a measure of segment performance.

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 for the three and six months ended June 30, 2020 and June 30, 2019 were as follows:

	Three Months Ended June 30,										Six Months Ended June 30,
	2020					2019					2020					2019
			Segment					Segment					Segment					Segment
	Segment		Adjusted			Segment		Adjusted			Segment		Adjusted			Segment		Adjusted
	Revenues		EBITDA			Revenues		EBITDA			Revenues		EBITDA			Revenues		EBITDA
Assessment, Permitting and Response	$	18,631	$	4,989		$	5,028	$	2,002		$	23,161	$	6,431		$	9,603	$	3,996
Measurement and Analysis		37,036		11,615			34,617		7,979			73,476		19,176			62,948		12,112
Remediation and Reuse		18,099		2,375			17,756		2,399			38,160		4,481			35,804		4,875
Total Operating Segments		73,766		18,979			57,401		12,380			134,797		30,088			108,355		20,983
Corporate and Other				(5,084	)				(3,842	)				(10,640	)				(7,373	)
Total	$	73,766	$	13,895		$	57,401	$	8,538		$	134,797	$	19,448		$	108,355	$	13,610

Presented below is a reconciliation of the Company’s segment measure to income (loss) before benefit from income taxes for the three and six months ended June 30, 2020 and June 30, 2019:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
Total	$	13,895		$	8,538		$	19,448		$	13,610
Interest Expense, net		(5,260	)		(1,181	)		(7,853	)		(2,460	)
Income tax benefit		1,759			1,712			4,911			896
Depreciation and Amortization		(9,784	)		(6,401	)		(17,344	)		(12,850	)
Stock-based compensation		(1,140	)		(1,294	)		(2,290	)		(2,522	)
Start-up losses and investment in new services		(296	)		(143	)		(675	)		(457	)
Acquisition costs		(2,454	)		(857	)		(3,761	)		(1,072	)
Fair value changes in contingent put option		22,602			—			(7,025	)		—
Fair value changes in warrant options		(4	)		(1,549	)		(2	)		(1,549	)
Fair value changes in compound embedded option		(756	)		—			(756	)		—
Fair value changes in contingent liabilities		(3,983	)		926			(3,983	)		926
Short term purchase accounting fair value adjustment    to deferred revenue		—			—			(243	)		—
IPO preparation costs		—			(73	)		(531	)		(86	)
Discontinued services (i)		(1,078	)		—			(7,496	)		—
Other expenses		—			—			(147	)		—
Expenses related to financing transactions		(277	)		—			(277	)		—
Net Income (Loss)	$	13,224		$	(322	)	$	(28,024	)	$	(5,564	)

(i)During the first quarter of 2020, the Company determined to reduce the footprint of its environmental lab in Berkeley, California, and to exit its non-specialized municipal water engineering service line and its food waste biogas engineering service line. As a part of discontinuing service lines, the Company made the decision to book an additional bad debt reserve related to the uncertainty around the ability to collect on receivables related to these service lines (Note 3). It was determined that the discontinuation of these service lines did not represent a strategic shift that had (or will have) a major effect on the Company’s operations and financial results therefore did not meet the requirements to be classified as discontinued operations.