Operating Segments

9 Months Ended

Sep. 30, 2013

Operating Segments [Abstract]

Operating Segments

10. Operating Segments

In accordance with ASC 280, “Segment Reporting”, we define an operating segment as a business activity:

· from which we may earn revenue and incur expenses;

· whose operating results are regularly reviewed by the Chief Operating Officer to make decisions about resources to be allocated to the segment and assess its performance; and

· for which discrete financial information is available.

We currently have two reporting segments, which are based on a service offering approach.  This, however, excludes corporate headquarters, which does not generate revenue, and our discontinued operations, which includes all facilities as discussed in Note 9 – “Discontinued Operations and Divestitures.”

Our reporting segments are defined as follows:

TREATMENT SEGMENT, which includes:

- nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and,

- research and development activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

SERVICES SEGMENT, which includes:

- On-site waste management services to commercial and governmental customers;

- Technical services, which include:

o professional radiological measurement and site survey of large government and commercial installations using advance methods, technology and engineering;

o integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance;

o global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and,

o augmented engineering services (through our Schreiber, Yonley & Associates subsidiary – “SYA”) providing consulting environmental services to industrial and government customers:

§ including air, water, and hazardous waste permitting, air, soil and water sampling, compliance reporting, emission reduction strategies, compliance auditing, and various compliance and training activities; and,

§ engineering and compliance support to other segments;

- Nuclear services, which include:

o technology-based services including engineering, decontamination and decommissioning (“D & D”), specialty services and construction, logistics, transportation, processing and disposal;

o remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D & D; facility decontamination, dismantling, demolition, and planning; site restoration; site construction; logistics; transportation; and emergency response; and

- A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) of health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation.

The table below presents certain financial information of our operating segments as of and for the three and nine months ended September 30, 2013 and 2012 (in thousands).

Segment Reporting for the Quarter Ended September 30, 2013
	Treatment		Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	8,929	$	10,143		$	19,072	(2)	$	¾		$	19,072
Intercompany revenues		82		11			93			¾			¾
Gross profit		1,801		1,328			3,129			¾			3,129
Interest income		¾		¾			¾			8			8
Interest expense		10		1			11			176			187
Interest expense-financing fees		¾		¾			¾			40			40
Depreciation and amortization		999		248			1,247			20			1,267
Segment profit (loss)		616		387			1,003			(1,571	)		(568	)
Expenditures for segment assets		192		6			198			¾			198
Segment Reporting for the Quarter Ended September 30, 2012
	Treatment		Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	11,405	$	17,785		$	29,190	(2)	$	¾		$	29,190
Intercompany revenues		265		50			315			¾			¾
Gross profit		3,097		1,129			4,226			¾			4,226
Interest income		¾		¾			¾			10			10
Interest expense		2		4			6			217			223
Interest expense-financing fees		¾		¾			¾			23			23
Depreciation and amortization		1,104		226			1,330			19			1,349
Segment profit (loss)		1,352		(47	)		1,305			(1,777	)		(472	)
Expenditures for segment assets		24		1			25			¾			25
Segment Reporting for the Nine Months Ended September 30, 2013
	Treatment		Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	26,379	$	35,306		$	61,685	(2)	$	¾		$	61,685
Intercompany revenues		1,149		66			1,215			¾			¾
Gross profit		3,968		3,722			7,690			¾			7,690
Interest income		¾		¾			¾			27			27
Interest expense		38		(3	)		35			497			532
Interest expense-financing fees		¾		¾			¾			87			87
Depreciation and amortization		3,063		708			3,771			72			3,843
Segment profit (loss)		524		(432	)		92			(4,528	)		(4,436	)
Expenditures for segment assets		367		6			373			¾			373
Segment Reporting for the Nine Months Ended September 30, 2012
	Treatment		Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	34,284	$	66,540		$	100,824	(2)	$	¾		$	100,824
Intercompany revenues		1,423		167			1,590			¾			¾
Gross profit		6,904		5,621			12,525			¾			12,525
Interest income		¾		¾			¾			31			31
Interest expense		7		9			16			626			642
Interest expense-financing fees		¾		¾			¾			84			84
Depreciation and amortization		3,359		688			4,047			55			4,102
Segment profit (loss)		2,517		1,047			3,564			(5,852	)		(2,288	)
Expenditures for segment assets		266		142			408			4			412

⁽¹⁾ Amounts reflect the activity for corporate headquarters not included in the segment information.

⁽²⁾ Includes revenues generated from CH Plateau Remediation Company (“CHPRC”) of $6,082,000 or 31.9% and $18,522,000 or 30.0% for the three and nine months ended September 30, 2013, respectively and $6,036,000 or 20.7% and $18,669,000 or 18.6% for the corresponding period of 2012, respectively.