Segment Information

6 Months Ended

Jun. 30, 2016

Segment Information

Segment Information

11.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,
	2016		2015		2016		2015
Revenues	$	74,940	$	71,084	$	155,170	$	145,169
Cost of revenue		33,213		31,053		71,494		62,331
Medical equipment depreciation		14,628		14,009		28,381		30,669
Gross margin	$	27,099	$	26,022	$	55,295	$	52,169

Clinical Engineering Solutions

(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Revenues	$	25,464	$	24,784	$	51,042	$	49,179
Cost of revenue		20,644		20,041		40,668		39,271
Gross margin	$	4,820	$	4,743	$	10,374	$	9,908

Surgical Services

(in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Revenues	$	17,214	$	16,421	$	33,532	$	31,427
Cost of revenue		8,956		8,722		17,722		16,902
Medical equipment depreciation		1,449		1,492		2,866		2,966
Gross margin	$	6,809	$	6,207	$	12,944	$	11,559

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,
	2016		2015		2016		2015
Total gross margin	$	38,728	$	36,972	$	78,613	$	73,636
Selling, general and administrative		28,798		31,038		60,095		61,189
(Gain) on settlement		(2,750)		(5,718)		(2,750)		(5,718)
Interest expense		13,061		13,249		26,130		26,559
Loss before income taxes and noncontrolling interest	$	(381)	$	(1,597)	$	(4,862)	$	(8,394)

Total Assets by Reporting Segment

(in thousands)

	June 30,		December 31,
	2016		2015
Medical Equipment Solutions	$	575,833	$	585,990
Clinical Engineering Solutions		111,150		110,588
Surgical Services		99,327		100,997
Total Company Assets	$	786,310	$	797,575

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,
	2016		2015		2016		2015
MES
Equipment usage solutions	61.1	%	60.1	%	60.4	%	61.2	%
Equipment/disposable sales	2.6		3.2		4.3		3.1
	63.7		63.3		64.7		64.3
CES
Service solutions	21.6		22.1		21.3		21.8
SS
Equipment usage solutions	14.5		14.4		13.8		13.7
Equipment/disposable sales	0.2		0.2		0.2		0.2
	14.7		14.6		14.0		13.9
Total revenues	100.0	%	100.0	%	100.0	%	100.0	%