Segment Information

9 Months Ended

Sep. 30, 2015

Segment Information

Segment Information

13.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				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenues	$	68,985	$	67,861	$	214,154	$	216,771
Cost of revenue		30,134		32,204		92,466		97,919
Medical equipment depreciation		15,043		16,340		45,712		51,843
Gross margin	$	23,808	$	19,317	$	75,976	$	67,009

Clinical Engineering Solutions

(in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenues	$	25,401	$	23,717	$	74,581	$	68,505
Cost of revenue		20,063		18,670		59,333		54,454
Gross margin	$	5,338	$	5,047	$	15,248	$	14,051

Surgical Services

(in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenues	$	16,727	$	14,887	$	48,154	$	43,890
Cost of revenue		8,780		7,982		25,681		24,418
Medical equipment depreciation		1,547		1,426		4,513		4,153
Gross margin	$	6,400	$	5,479	$	17,960	$	15,319

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

(in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Total gross margin	$	35,546	$	29,843	$	109,184	$	96,379
Selling, general and administrative		30,633		26,539		91,825		85,416
(Gain) on settlement		—		—		(5,718)		—
Restructuring, acquisition and integration expenses		—		—		—		1,820
Intangible asset impairment charge		—		—		—		34,900
Interest expense		13,250		13,264		39,810		39,922
Loss before income taxes and noncontrolling interest	$	(8,337)	$	(9,960)	$	(16,733)	$	(65,679)

Total Assets by Reporting Segment

(in thousands)

	September 30,		December 31,
	2015		2014
Medical Equipment Solutions	$	597,426	$	624,444
Clinical Engineering Solutions		109,940		110,562
Surgical Services		100,531		98,906
Total Company Assets	$	807,897	$	833,912

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				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
MES
Equipment usage solutions	59.4	%	59.8	%	60.6	%	61.1	%
Equipment/disposable sales	2.7		3.9		3.0		4.8
	62.1		63.7		63.6		65.9
CES
Service solutions	22.9		22.3		22.1		20.8
SS
Equipment usage solutions	14.7		13.8		14.1		13.1
Equipment/disposable sales	0.3		0.2		0.2		0.2
	15.0		14.0		14.3		13.3
Total revenues	100.0	%	100.0	%	100.0	%	100.0	%