Segment Information

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Segment Information

Segment Information

13.Segment Information

Our reporting segments consist of Medical Equipment Outsourcing, Technical and Professional Services, and Medical Equipment Sales and Remarketing. Certain operating information for our segments as well as a reconciliation of total Company gross margin to Loss before income tax was as follows:

Medical Equipment Outsourcing

(In thousands)

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2012		2011		2012		2011
Revenues	$	74,134	$	69,002	$	226,599	$	205,159
Cost of revenue	28,736		23,814		77,273		72,785
Medical equipment depreciation	18,104		17,006		52,329		51,678
Gross margin	$	27,294	$	28,182	$	96,997	$	80,696

Technical and Professional Services

(In thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Revenues	$	20,066	$	13,852	$	62,545	$	36,083
Cost of revenue	14,455		10,540		47,109		26,650
Gross margin	$	5,611	$	3,312	$	15,436	$	9,433

Medical Equipment Sales and Remarketing

(In thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Revenues	$	7,619	$	6,490	$	23,250	$	17,972
Cost of revenue	6,014		5,215		18,112		14,115
Gross margin	$	1,605	$	1,275	$	5,138	$	3,857

Total Gross Margin and Reconciliation to Loss Before Income Tax and Non Controlling Interest

(In thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Total gross margin	$	34,510		$	32,769		$	117,571		$	93,986
Selling, general and administrative	29,885			22,756			86,251			72,247
Acquisition and integration expenses	58			622			352			2,621
Loss on extinguishment of debt	12,339			—			12,339			—
Interest expense	13,530			15,122			43,534			39,572
Loss before income taxes and non controlling interest	$	(21,302	)	$	(5,731	)	$	(24,905	)	$	(20,454	)

Total Assets by Reporting Segment

(in thousands)

	September 30,		December 31,
	2012		2011
Medical Equipment Outsourcing	$	464,888	$	461,285
Technical and Professional Services	83,964		84,483
Medical Equipment Sales and Remarketing	18,603		18,603
Corporate and Unallocated	393,069		372,561
Total Company Assets	$	960,524	$	936,932

18. Business Segments

        The Company operates in three reportable segments:

• •

  Medical equipment outsourcing is the segment through which the Company provides medical equipment outsourcing services to its customers, including more than 4,275 acute care hospitals and 4,425 alternate site providers in the United States, including some of the nation's premier health care institutions.

  •

  Technical and professional services offers a broad range of inspection, preventative maintenance, repair, logistic and consulting services through the Company's team of over 415 technicians and professionals located in its nationwide network of offices.

  •

  Medical equipment sales and remarketing is the segment through which the Company buys, sources, remarkets and disposes of pre-owned medical equipment for its customers through the Company's Asset Recovery Program; provides sales and distribution of specialty medical equipment; and offers its customers disposable items that are used on a single use basis.

        The Company identifies its segments based on its organizational structure and its internal reporting.

	Year Ended December 31,
(in thousands)	2011			2010			2009
Medical Equipment Outsourcing
Net Sales	$	275,910		$	245,145		$	232,623
Medical equipment depreciation		68,032			69,496			64,267
Gross margin		110,175			89,439			84,803
Assets		461,285			409,315			420,940
Amortization		17,252			11,625			11,793
Technical and Professional Services
Net Sales		54,058			44,426			42,395
Gross margin		13,540			12,736			11,856
Assets		84,483			85,175			85,867
Amortization		692			692			692
Medical Equipment Sales and Remarketing
Net Sales		25,188			22,541			22,186
Gross margin		5,454			6,199			4,009
Assets		18,603			18,603			18,603
Corporate and Unallocated
Assets		372,561			319,935			309,993
Amortization and Depreciation		10,636			9,926			10,295
Capital Expenditures		87,118			76,998			53,527
Total Company Assets, Amortization and Depreciation and Capital Expenditures
Assets		936,932			833,028			835,403
Amortization and Depreciation		96,612			91,739			87,047
Capital Expenditures		87,118			76,998			53,527
Total Gross Margin and Reconciliation to Loss Before Income Taxes
Total gross margin	$	129,169		$	108,374		$	100,668
Selling, general and administrative		100,948			89,336			84,225
Acquisiton and integration expense		3,483			—			—
Interest expense		55,020			46,457			46,505
Loss before income taxes	$	(30,282	)	$	(27,419	)	$	(30,062	)

        Gross margin represents net revenues less total direct costs.

        Segment assets for the three business segments (excluding Corporate and Unallocated) primarily include goodwill and intangible assets, which is consistent with the Company's reporting to its Chief Operating Decision Maker, other assets are not allocated to the three business segments. Thus, assets included in Corporate and Unallocated contain all other Company assets.