Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

19. 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 consisted of the following:

	Three Months Ended March 31,
	2021					2020
			Segment					Segment
	Segment		Adjusted			Segment		Adjusted
	Revenues		EBITDA			Revenues		EBITDA
Assessment, Permitting and Response	$	75,262	$	15,804		$	4,530	$	1,442
Measurement and Analysis		33,440		4,860			36,440		7,379
Remediation and Reuse		25,115		2,481			20,061		2,107
Total Operating Segments		133,817		23,145			61,031		10,928
Corporate and Other		—		(6,345	)		—		(5,375	)
Total	$	133,817	$	16,800		$	61,031	$	5,553

Presented below is a reconciliation of the Company’s segment measure to loss before (expense) benefit from income taxes:

	For the Three Months Ended March 31,
	2021			2020
Total	$	16,800		$	5,553
Interest expense, net		(2,688	)		(2,593	)
Income tax (expense) benefit		(2	)		3,152
Depreciation and amortization		(10,769	)		(7,560	)
Stock-based compensation		(1,805	)		(1,150	)
Start-up losses and investment in new services		(968	)		(379	)
Acquisition costs		(237	)		(1,307	)
Fair value changes in financial instruments		(602	)		(29,626	)
Fair value changes in business acquisitions contingent consideration		(11,064	)		—
Short term purchase accounting fair value adjustment    to deferred revenue		—			(243	)
Initial public offering expense		—			(531	)
Discontinued services (i)		—			(6,417	)
Expenses related to financing transactions		(50	)		—
Other losses or expenses		(211	)		(147	)
Net loss	$	(11,596	)	$	(41,248	)

(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.