OPERATING SEGMENTS

9 Months Ended

Sep. 30, 2014

OPERATING SEGMENTS

OPERATING SEGMENTS

NOTE 16.   OPERATING SEGMENTS

Prior to June 17, 2014, our operations were reported in two segments, Operating Disposal Facilities and Non-Operating Disposal Facilities, which reflected our internal reporting structure and nature of services offered. The Operating Disposal Facility segment represents disposal facilities accepting hazardous and radioactive waste. The Non-Operating Disposal Facility segment represents facilities which are no longer accepting hazardous and/or radioactive waste. In connection with our acquisition of EQ Holdings, Inc. on June 17, 2014, we added a third segment, EQ Operations, which consists of EQ’s legacy operations. Our chief operating decision maker reviews discrete financial information for each of these segments to evaluate performance and make decisions about allocating resources. As a result of the acquisition of EQ, we plan to continue to refine our segment reporting to reflect ongoing changes in the way we manage our business, and there can be no assurance that we will continue to separately report EQ’s financial results in the future.

Summarized financial information for our reportable segments is shown in the following tables.  Income taxes and the elimination of intersegment transactions are assigned to Corporate, but all other items are included in the segment in which they originated.

Three Months Ended September 30, 2014 (in thousands)	Operating Disposal Facilities		Non- Operating Disposal Facilities			Corporate			EQ Operations			Total
Revenue - Treatment and disposal	$	47,182	$	10		$	(139	)	$	33,154		$	80,207
Revenue - Transportation and services	12,562		—			(47		)	78,172			90,687
Total revenue	59,744		10			(186		)	111,326			170,894
Direct operating costs	23,095		55			(186		)	68,975			91,939
Transportation costs	12,609		—			—			13,683			26,292
Gross profit (loss)	24,040		(45		)	—			28,668			52,663
Selling, general & administrative expense	2,972		—			4,643			18,214			25,829
Operating income (loss)	21,068		(45		)	(4,643		)	10,454			26,834
Interest income (expense), net	3		—			(4,452		)	(84		)	(4,533		)
Foreign currency gain (loss)	410		—			(1,240		)	—			(830		)
Other income	124		2			1			141			268
Income (loss) before income taxes	21,605		(43		)	(10,334		)	10,511			21,739
Income tax expense	—		—			8,406			—			8,406
Net income (loss)	$	21,605	$	(43	)	$	(18,740	)	$	10,511		$	13,333
Depreciation, amortization & accretion	$	4,510	$	49		$	17		$	8,757		$	13,333
Capital expenditures	$	2,551	$	—		$	71		$	6,604		$	9,226
Total assets	$	219,783	$	112		$	25,101		$	672,153		$	917,149

Three Months Ended September 30, 2013 (in thousands)	Operating Disposal Facilities			Non- Operating Disposal Facilities			Corporate			EQ Operations		Total
Revenue - Treatment and disposal	$	42,489		$	6		$	—		$	—	$	42,495
Revenue - Transportation and services	10,595			—			—			—		10,595
Total revenue	53,084			6			—			—		53,090
Direct operating costs	20,847			55			—			—		20,902
Transportation costs	10,568			—			—			—		10,568
Gross profit (loss)	21,669			(49		)	—			—		21,620
Selling, general & administrative expense	2,611			—			3,497			—		6,108
Operating income (loss)	19,058			(49		)	(3,497		)	—		15,512
Interest income (expense), net	4			—			(208		)	—		(204		)
Foreign currency gain (loss)	(233		)	—			916			—		683
Other income	75			2			—			—		77
Income (loss) before income taxes	18,904			(47		)	(2,789		)	—		16,068
Income tax expense	—			—			5,740			—		5,740
Net income (loss)	$	18,904		$	(47	)	$	(8,529	)	$	—	$	10,328
Depreciation, amortization & accretion	$	4,336		$	52		$	9		$	—	$	4,397
Capital expenditures	$	2,915		$	—		$	145		$	—	$	3,060
Total assets	$	222,503		$	87		$	8,141		$	—	$	230,731

Nine Months Ended September 30, 2014 (in thousands)	Operating Disposal Facilities		Non- Operating Disposal Facilities			Corporate			EQ Operations			Total
Revenue - Treatment and disposal	$	135,746	$	22		$	(169	)	$	37,862		$	173,461
Revenue - Transportation and services	28,835		—			(57		)	88,033			116,811
Total revenue	164,581		22			(226		)	125,895			290,272
Direct operating costs	67,951		157			(225		)	78,055			145,938
Transportation costs	29,137		—			(1		)	15,146			44,282
Gross profit (loss)	67,493		(135		)	—			32,694			100,052
Selling, general & administrative expense	8,488		—			17,565			20,660			46,713
Operating income (loss)	59,005		(135		)	(17,565		)	12,034			53,339
Interest income (expense), net	10		—			(5,268		)	(136		)	(5,394		)
Foreign currency gain (loss)	396		—			(1,423		)	—			(1,027		)
Other income	355		7			1			157			520
Income (loss) before income taxes	59,766		(128		)	(24,255		)	12,055			47,438
Income tax expense	—		—			17,880			—			17,880
Net income (loss)	$	59,766	$	(128	)	$	(42,135	)	$	12,055		$	29,558
Depreciation, amortization & accretion	$	13,470	$	146		$	47		$	10,018		$	23,681
Capital expenditures	$	10,102	$	43		$	312		$	7,453		$	17,910
Total assets	$	219,783	$	112		$	25,101		$	672,153		$	917,149

Nine Months Ended September 30, 2013 (in thousands)	Operating Disposal Facilities		Non- Operating Disposal Facilities			Corporate			EQ Operations		Total
Revenue - Treatment and disposal	$	117,553	$	16		$	—		$	—	$	117,569
Revenue - Transportation and services	24,197		—			—			—		24,197
Total revenue	141,750		16			—			—		141,766
Direct operating costs	61,583		162			—			—		61,745
Transportation costs	24,091		—			—			—		24,091
Gross profit (loss)	56,076		(146		)	—			—		55,930
Selling, general & administrative expense	8,524		—			9,829			—		18,353
Operating income (loss)	47,552		(146		)	(9,829		)	—		37,577
Interest income (expense), net	10		—			(650		)	—		(640		)
Foreign currency gain (loss)	199		—			(1,647		)	—		(1,448		)
Other income	261		7			—			—		268
Income (loss) before income taxes	48,022		(139		)	(12,126		)	—		35,757
Income tax expense	—		—			12,813			—		12,813
Net income (loss)	$	48,022	$	(139	)	$	(24,939	)	$	—	$	22,944
Depreciation, amortization & accretion	$	12,628	$	156		$	27		$	—	$	12,811
Capital expenditures	$	15,330	$	—		$	260		$	—	$	15,590
Total assets	$	222,503	$	87		$	8,141		$	—	$	230,731

Revenue, Property and Equipment and Intangible Assets Outside of the United States

We provide services in the United States and Canada. Revenues by geographic location where the underlying services were performed consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
$s in thousands	2014		2013		2014		2013
United States	$	155,073	$	37,833	$	243,724	$	101,852
Canada	15,821		15,257		46,548		39,914
Total revenue	$	170,894	$	53,090	$	290,272	$	141,766

Long-lived assets, comprised of property and equipment and intangible assets net of accumulated depreciation and amortization, by geographic location consisted of the following:

	September 30,		December 31,
$s in thousands	2014		2013
United States	$	440,019	$	86,175
Canada	61,157		65,516
Total long-lived assets	$	501,176	$	151,691