Note 17 - Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

Note 17.    Segment Information

As disclosed earlier, during fiscal years 2012 and 2011, we made multiple acquisitions within the sports and oilfield servicing industries. We currently operate in these two reportable segments: Steel Sports and Steel Energy. These reportable segments are based on the product and/or service provided by the subsidiaries and the financial information used by the chief operating decision maker to allocate resources, make operating decisions and assess financial performance. In certain cases, two or more operating segments are aggregated into a reportable segment if they have similar economic characteristics and long-term average gross margins. The Steel Energy reportable segment results from the aggregation of the Sun Well and Rogue operating segments. The accounting policies of the segments are the same as described in the significant accounting policies noted herein.

Steel Sports: provides services related to marketing and providing baseball facility services, including training camps, summer camps, leagues and tournaments, concession and catering events and other events and related websites. In addition, the November 2012 CrossFit South Bay acquisition provides strength and conditioning services.

Steel Energy: provides technological advances in horizontal drilling and hydraulic fracturing. Services include snubbing services (controlled installation and removal of all tubulars - drill strings and production strings) in and out of the wellbore with the well under full pressure, flowtesting, and hydraulic work over/simultaneous operations (allows customers to perform multiple tasks on multiple wells on one pad at the same time).

Segment information for continuing operations as of December 31, 2012 and for the fiscal year then ended is as follows:

	Steel Sports			Steel Energy			General Corporate			Consolidated
	(in thousands)
Net revenues	$	2,913		$	97,191		$	-		$	100,104
Operating income (loss)	$	(2,062	)	$	16,836		$	(8,957	)	$	5,817
Depreciation and amortization expense	$	518		$	14,940		$	-		$	15,458
Interest and other income (expense), net	$	-		$	(413	)	$	1,063		$	650
Total assets	$	7,613		$	199,889		$	258,993		$	466,495
Accounts receivable	$	158		$	17,099		$	-		$	17,257
Goodwill	$	154		$	52,939		$	-		$	53,093
Property and equipment, net	$	6,005		$	71,763		$	-		$	77,768

Two customers within the Steel Energy reporting segment comprise 10% or more of the Company’s consolidated net revenues for fiscal 2012 (Customer A had $11.1 million and Customer B had $11.0 million of net revenues, with $3.6 million and $2.9 million included in accounts receivable as of December 31, 2012, respectively). In addition, the top 15 Steel Energy customers made up 86% of consolidated net revenues in fiscal 2012

Segment information for continuing operations as of December 31, 2011 and for the fiscal year then ended is as follows:

	Steel Sports	Steel  Energy	General Corporate	Consolidated
	(in thousands)
Net revenues	$               1,176	$               1,417	$                      -	$               2,593
Operating income (loss)	$                (354)	$                  165	$             (8,322)	$             (8,511)
Depreciation and amortization expense	$                  206	$                  144	$                      -	$                  350
Interest and other income (expense), net	$                      -	$                      -	$               8,353	$               8,353
Total assets	$               8,697	$             32,228	$           327,766	$           368,691
Accounts receivable	$                  156	$               4,504	$                      -	$               4,660
Goodwill	$                  192	$               8,052	$                      -	$               8,244
Property and equipment, net	$               5,866	$             15,194	$                      -	$             21,060

No customers comprised 10% or more of the Company’s net revenues for fiscal 2011.