Business Segments

3 Months Ended

Mar. 31, 2024

Business Segments

Business Segments

17. Business Segments

The Company is organized primarily on the basis of geographic region and customer industry group and operates in two reportable segments.

Our remaining operating segments have been consolidated and included in an “All Other” category.

The following is a brief description of our reportable segments and a description of business activities conducted by All Other.

HFS – South  — Segment operations consist primarily of specialty rental and vertically integrated hospitality services revenue from customers in the natural resources and development industry located primarily in Texas and New Mexico.

Government — Segment operations consist primarily of specialty rental and vertically integrated hospitality services revenue from customers with Government contracts located in Texas.

All Other — Segment operations consist primarily of revenue from specialty rental and vertically integrated hospitality services revenue from customers primarily in the natural resources and development industry located outside of the HFS – South segment.

The table below presents information about reported segments for the dates indicated below:

2024

	HFS - South		Government		All Other			Total
For the Three Months Ended March 31, 2024
Revenue	$	36,934	$	67,607	$	2,131	(a)	$	106,672
Adjusted gross profit	$	12,842	$	52,433	$	(1,426)		$	63,849
Total Assets	$	181,240	$	205,802	$	30,082		$	417,124

2023

	HFS - South		Government		All Other			Total
For the Three Months Ended March 31, 2023
Revenue	$	35,772	$	109,503	$	2,544	(a)	$	147,819
Adjusted gross profit	$	11,656	$	88,774	$	(870)		$	99,560
Total Assets (as of December 31, 2023)	$	184,453	$	207,409	$	30,987		$	422,849

(a) Revenues from segments below the quantitative thresholds are reported in the “All Other” category previously described.

A reconciliation of total segment adjusted gross profit to total consolidated income before income taxes for the dates indicated below, is as follows:

	For the Three Months Ended
	March 31, 2024		March 31, 2023
Total reportable segment adjusted gross profit	$	65,275	$	100,430
Other adjusted gross profit		(1,426)		(870)
Depreciation and amortization		(18,666)		(21,400)
Selling, general, and administrative expenses		(14,855)		(15,199)
Other income (expense), net		110		(1,004)
Loss on extinguishment of debt		—		(2,128)
Interest expense, net		(4,587)		(7,498)
Change in fair value of warrant liabilities		675		3,711
Consolidated income before income taxes	$	26,526	$	56,042

A reconciliation of total segment assets to total consolidated assets as of the dates indicated below, is as follows:

	March 31, 2024		December 31, 2023
Total reportable segment assets	$	387,042	$	391,862
Other assets		32,083		32,871
Other unallocated amounts		268,044		269,620
Total Assets	$	687,169	$	694,353

Other unallocated assets consist of the following as reported in the consolidated balance sheets of the Company as of the dates indicated below:

	March 31, 2024		December 31, 2023
Total current assets	$	186,068	$	180,500
Other intangible assets, net		62,919		66,282
Operating lease right-of-use assets, net		16,495		19,698
Deferred financing costs revolver, net		2,328		2,479
Other non-current assets		234		661
Total other unallocated amounts of assets	$	268,044	$	269,620