Segment Information

6 Months Ended

Jun. 30, 2017

Segment Information

Segment Information

12.Segment Information

Our reporting segments consist of Medical Equipment Solutions (“MES”), Clinical Engineering Solutions (“CES”) and Surgical Services (“SS”). Certain operating information for our segments as well as a reconciliation of total Company gross margin to loss before income taxes and noncontrolling interest was as follows:

Medical Equipment Solutions

(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Revenues	$	74,396	$	74,940	$	153,056	$	155,170
Cost of revenue		33,415		33,213		67,211		71,494
Medical equipment depreciation		13,201		14,628		26,745		28,381
Gross margin	$	27,780	$	27,099	$	59,100	$	55,295

Clinical Engineering Solutions

(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Revenues	$	35,103	$	25,464	$	69,766	$	51,042
Cost of revenue		27,884		20,644		54,390		40,668
Gross margin	$	7,219	$	4,820	$	15,376	$	10,374

Surgical Services

(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Revenues	$	18,711	$	17,214	$	36,041	$	33,532
Cost of revenue		9,966		8,956		19,422		17,722
Medical equipment depreciation		1,729		1,449		3,312		2,866
Gross margin	$	7,016	$	6,809	$	13,307	$	12,944

Total Gross Margin and Reconciliation to Loss Before Income Taxes and Noncontrolling Interest

(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Total gross margin	$	42,015	$	38,728	$	87,783	$	78,613
Selling, general and administrative		30,814		28,798		64,955		60,095
(Gain) on settlement		—		(2,750)		—		(2,750)
Interest expense		13,219		13,061		26,514		26,130
Loss before income taxes and noncontrolling interest	$	(2,018)	$	(381)	$	(3,686)	$	(4,862)

Total Assets by Reporting Segment

(in thousands)

	June 30,		December 31,
	2017		2016
Medical Equipment Solutions	$	563,068	$	584,597
Clinical Engineering Solutions		131,321		131,537
Surgical Services		104,688		101,989
Total Company Assets	$	799,077	$	818,123

The following table provides additional detail on percentage of revenue for each group of similar products sold or services provided in the MES, CES and SS segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
MES
Equipment usage solutions	56.1	%	61.1	%	57.2	%	60.4	%
Equipment/disposable sales	1.9		2.6		1.9		4.3
	58.0		63.7		59.1		64.7
CES
Service solutions	27.4		21.6		27.0		21.3
SS
Equipment usage solutions	14.4		14.5		13.7		13.8
Equipment/disposable sales	0.2		0.2		0.2		0.2
	14.6		14.7		13.9		14.0
Total revenues	100.0	%	100.0	%	100.0	%	100.0	%