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SEGMENT INFORMATION
12 Months Ended
Dec. 25, 2021
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 14 - SEGMENT INFORMATION

 

Reporting Segments

 

Our segments are strategic business units that offer our services and products to customers in their respective industry segments. The operating performance of our segments is regularly reviewed with operational leaders in charge of these segments, the chief executive officer (“CEO”), the chief financial officer (“CFO”) and others. This group represents the chief operating decision maker (“CODM”) for ENGlobal.

 

We have identified four strategic markets where we have a long history of delivering project solutions and can provide complete project execution. These four targeted markets include: (i) Renewables, (ii) Automation, (iii) Oil, Gas, and Petrochemicals, and (iv) Government Services.

 

Within the Renewables group, our focus is to design and build production facilities for hydrogen and associated products, together with converting existing production facilities to produce products from renewable feedstock sources. These projects often utilize technologies that are more fuel efficient, and therefore reduce the associated carbon footprint of the facility. Our scope of work on these projects will typically include front-end development, engineering, procurement, mechanical fabrication, automation and commissioning services, and may be performed in conjunction with a construction partner.

 

Our Automation group provides the design and programming of automated control systems as well as designs, fabricates, integrates and commissions modular systems that include remote instrumentation control stations, on-line process analytical data, continuous emission monitoring, and electric power distribution. Often these packaged systems are housed in a fabricated metal enclosure, modular building or freestanding metal rack, which are commonly included in our scope of work. We provide automation engineering, procurement, fabrication, systems integration, programing and on-site commissioning services to our clients for both new and existing facilities.

 

Our Oil, Gas, and Petrochemicals group focuses on providing engineering, procurement, construction, and automation services as well as fabricated products to downstream refineries and petrochemical facilities as well as midstream pipeline, storage and other transportation related companies. These services are often applied to small capital improvement and maintenance projects within refineries and petrochemical facilities. For our transportation clients, we work on facilities that include pumping, compression, gas processing, metering, storage terminals, product loading and blending systems. In addition, this group designs, programs and maintains supervisory control and data acquisition (“SCADA”) systems for our transportation clients. This group also provides engineering, fabrication and automation services to clients who have operations in the U.S. oil and gas exploration and development markets. The operations are usually associated with the completion, purification, storage and transmission of the oil and gas from the well head to the terminal or pipeline destination.

 

Our Government Services group provides services related to the engineering, design, installation and maintenance of automated fuel handling and tank gauging systems for the U.S. military across the globe.

 

We have two reportable segments: Commercial and Government Services. Our Renewables, Automation, and Oil, Gas, and Petrochemical groups are aggregated into one reportable segment, Commercial.

 

Our corporate and other expenses that do not individually meet the criteria for segment reporting are reported separately as Corporate expenses.

 

Revenue, operating income, identifiable assets, capital expenditures and depreciation for each segment are set forth in the following table. The amount identified as Corporate includes those activities that are not allocated to the operating segments and include costs related to business development, executive functions, finance, accounting, safety, human resources and information technology that are not specifically identifiable with the segments. The segment information for the year ended December 26, 2020 has been recast to align with our current reportable segments.

Segment information for the years ended December 25, 2021 and December 26, 2020 are as follows (amounts in thousands):

 

For the year ended

December 25, 2021:

 

Commercial

 

 

Government

 

 

Corporate

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$27,986

 

 

$8,424

 

 

$-

 

 

$36,410

 

Operating income (loss)

 

 

(8,599 )

 

 

32

 

 

 

(4,909 )

 

 

(13,476 )

Depreciation and amortization

 

 

394

 

 

 

14

 

 

 

153

 

 

 

561

 

Tangible assets

 

 

12,516

 

 

 

3,068

 

 

 

25,746

 

 

 

41,330

 

Goodwill

 

 

-

 

 

 

720

 

 

 

-

 

 

 

720

 

Other intangible assets

 

 

19

 

 

 

-

 

 

 

-

 

 

 

19

 

Total assets

 

 

12,535

 

 

 

3,788

 

 

 

25,746

 

 

 

42,069

 

Capital expenditures

 

 

58

 

 

 

-

 

 

 

182

 

 

 

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended

December 26, 2020:

 

Commercial

 

 

Government

 

 

Corporate

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$54,368

 

 

$10,081

 

 

$-

 

 

$64,449

 

Operating income (loss)

 

 

3,570

 

 

 

885

 

 

 

(4,838 )

 

 

(383 )

Depreciation and amortization

 

 

320

 

 

 

12

 

 

 

117

 

 

 

449

 

Tangible assets

 

 

11,111

 

 

 

2,431

 

 

 

16,157

 

 

 

29,699

 

Goodwill

 

 

-

 

 

 

720

 

 

 

-

 

 

 

720

 

Other intangible assets

 

 

19

 

 

 

-

 

 

 

-

 

 

 

19

 

Total assets

 

 

11,130

 

 

 

3,151

 

 

 

16,157

 

 

 

30,438

 

Capital expenditures

 

 

148

 

 

 

12

 

 

 

268

 

 

 

428