Note 13 – Business Segment Data

Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance. Both design and produce large-scale, multi-color, real-time digital displays. Both operating segments are conducted on a global basis, primarily through operations in the United States. The Company also has operations in Canada. The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment. Corporate general and administrative items relate to costs that are not directly identifiable with a segment. There are no intersegment sales.

Foreign revenues represent less than 10% of the Company’s revenues in 2019 and 2018. The Company’s foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells. The foreign operation operates similarly to the domestic operation and has similar profit margins. Foreign assets are immaterial.

Information about the Company’s operations in its two business segments for the three months ended March 31, 2019 and 2018 is as follows:

	Three Months Ended March 31
In thousands	2019		2018
Revenues:
Digital product sales	$	3,091	$	3,948
Digital product lease and maintenance		508		587
Total revenues	$	3,599	$	4,535
Operating (loss) income:
Digital product sales	$	116	$	560
Digital product lease and maintenance		258		290
Corporate general and administrative expenses		(613)		(711)
Total operating (loss) income		(239)		139
Interest expense, net		(255)		(196)
(Loss) gain on foreign currency remeasurement		(57)		72
Gain on extinguishment of debt		52		-
Gain on sale leaseback transaction		-		11
Pension (expense) benefit		(18)		34
(Loss) income before income taxes		(517)		60
Income tax expense		(6)		-
Net (loss) income	$	(523)	$	60

	March 31 2019		December 31 2018
	March 31 2019		December 31 2018
Assets
Digital product sales	$	7,606	$	7,689
Digital product lease and maintenance		4,473		3,054
Total identifiable assets		12,079		10,743
General corporate		431		723
Total assets	$	12,510	$	11,466