Segment and Related Information

9 Months Ended

Sep. 30, 2016

Segment and Related Information [Abstract]

Segment and Related Information

Note 9 — Segment and Related Information

The Company has two reportable business segments, hospitality and government – for which separate financial information is available and for which segment results are evaluated regularly by the Company’s Chief Executive Officer, the Company’s chief operating decision maker, in deciding how to allocate resources and in assessing performance.  Prior to the sale of the hotel/spa reporting unit on November 4, 2015 (see Note 2), the Company was organized in three reporting units within its two business segments: restaurant/retail, hotel/spa and government.  The Company identified government as a separate reportable segment and had aggregated the restaurant/retail and hotel/spa reporting units into one reportable business segment - hospitality - as they shared many similar economic characteristics.  The hotel/spa reporting unit is now included in discontinued operations. Management views the government and hospitality segments separately in operating its business, as the products and services are different for each segment.  The hospitality segment offers integrated solutions to the food service industry consisting of restaurants, grocery stores, contract food and specialty retail outlets.  These offerings include industry leading software solutions utilized at point-of-sale, back of store and corporate office, and includes Brink POS® and the Company’s food safety software platform - SureCheck®. Also offered within the hospitality segment, is the Company’s industry leading hardware, as well as software delivery services and other customer support, including field service, installation, and twenty-four hour telephone support and depot repair.  The government segment performs complex technical studies, analysis, and experiments, develops innovative solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems.  This segment also provides expert on-site services for operating and maintaining U.S. Government-owned communication assets.

Information noted as “Other” primarily relates to the Company’s corporate, home office operations.

Information as to the Company's segments is set forth below.  Amounts below exclude discontinued operations.

	(in thousands)						(in thousands)
	For the three months ended September 30,						For the nine months ended September 30,
	2016			2015			2016			2015
Revenues:
Hospitality	$	38,377		$	36,019		$	105,413		$	104,768
Government		23,115			22,041			64,042			67,438
Total	$	61,492		$	58,060		$	169,455		$	172,206
Operating income (loss):
Hospitality	$	1,091		$	853		$	(209	)	$	1,235
Government		1,417			1,383			4,720			3,915
Other		(1,687	)		(316	)		(3,273	)		(638	)
		821			1,920			1,238			4,512
Other (loss) income, net		(38	)		128			(318	)		(58	)
Interest (expense) income		(12	)		(81	)		20			(252	)
Income before provision for income taxes	$	771		$	1,967		$	940		$	4,202
Depreciation, amortization and accretion:
Hospitality	$	740		$	745		$	2,228		$	1,998
Government		10			13			29			38
Other		861			111			957			246
Total	$	1,611		$	869		$	3,214		$	2,282
Capital expenditures including software costs:
Hospitality	$	787		$	1,068		$	2,437		$	2,803
Government		47			-			86			-
Other		681			84			1,196			181
Total	$	1,515		$	1,152		$	3,719		$	2,984
Revenues by country:
United States	$	58,092		$	49,810		$	155,882		$	151,858
Other Countries		3,400			8,250			13,573			20,348
Total	$	61,492		$	58,060		$	169,455		$	172,206

The following table represents identifiable assets by business segment. Amounts below exclude discontinued operations.

	(in thousands)
	September 30, 2016		December 31, 2015
Hospitality	$	89,310	$	72,948
Government		13,612		10,052
Other		22,038		33,251
Total	$	124,960	$	116,251

The following table represents assets by country based on the location of the assets. Amounts below exclude discontinued operations.

	(in thousands)
	September 30, 2016		December 31, 2015
United States	$	111,385	$	100,960
Other Countries		13,575		15,291
Total	$	124,960	$	116,251

The following table represents goodwill by business segment. Amounts below exclude discontinued operations.

	(in thousands)
	September 30, 2016		December 31, 2015
Hospitality	$	10,315	$	10,315
Government		736		736
Total	$	11,051	$	11,051

Customers comprising 10% or more of the Company's total revenues, excluding discontinued operations, are summarized as follows:

	For the three months ended September 30,						For the nine months ended September 30 ,
	2016			2015			2016			2015
Hospitality segment:
McDonald’s Corporation		26	%		20	%		23	%		21	%
Yum! Brands, Inc.		10	%		11	%		11	%		11	%
Government segment:
U.S. Department of Defense		38	%		38	%		38	%		39	%
All Others		26	%		31	%		28	%		29	%
		100	%		100	%		100	%		100	%

No other customer within All Others represented more than 10% of the Company’s total revenue for the three and nine months ended September 30, 2016 or 2015.