XML 47 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segments
 3 Months Ended
Mar. 31, 2012
Segments [Abstract]  
Segments

5. Segments

Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed, the criteria used by management to evaluate the Company’s performance, the availability of separate financial information, and overall materiality considerations.

Segment reporting is based on geography as the main basis of segment breakdown to reflect the evaluation of the Company’s performance defined by the management. The Company’s segments include Brazil, Argentina, Mexico, Venezuela and other countries (such as Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal and Uruguay).

 

Direct contribution consists of net revenues from external customers less direct costs. Direct costs include specific costs of net revenues, sales and marketing expenses, and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, allowances for doubtful accounts, headcount compensation, third party fees. All corporate related costs have been excluded from the Company’s direct contribution.

Expenses over which segment managers do not currently have discretionary control, such as certain technology and general and administrative costs are monitored by management through shared cost centers and are not evaluated in the measurement of segment performance.

The following tables summarize the financial performance of the Company’s reporting segments:

 

 

                                                 
    Three Months Ended March 31, 2012  
    Brazil     Argentina     Mexico     Venezuela     Other Countries     Total  

Net revenues

   $ 42,164,654     $ 18,116,469     $ 6,583,865     $ 11,241,572     $ 5,629,446     $ 83,736,006  

Direct costs

     (25,743,214 )      (8,122,935 )      (3,646,637 )      (4,847,335 )      (2,815,667 )      (45,175,788 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Direct contribution

     16,421,440       9,993,534       2,937,228       6,394,237       2,813,779       38,560,218  

Operating expenses and indirect costs of net revenues

                                             (13,629,474 ) 
                                           

 

 

  

Income from operations

                                             24,930,744  
                                           

 

 

  

Other income (expenses):

                                                

Interest income and other financial gains

                                             3,088,560  

Interest expense and other financial results

                                             (77,317 ) 

Foreign currency loss

                                             (1,032,978 ) 

Other losses, net

                                             (4,252 ) 
                                           

 

 

  

Net income before income / asset tax expense

                                           $ 26,904,757  
                                           

 

 

  

 

 

 

                                                 
    Three Months Ended March 31, 2011  
    Brazil     Argentina     Mexico     Venezuela     Other Countries     Total  

Net revenues

   $ 34,723,195     $ 10,579,932     $ 5,234,333     $ 6,770,453     $ 4,151,755     $ 61,459,668  

Direct costs

     (20,075,608 )      (4,427,098 )      (2,716,359 )      (3,069,739 )      (2,100,316 )      (32,389,120 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Direct contribution

     14,647,587       6,152,834       2,517,974       3,700,714       2,051,439       29,070,548  

Operating expenses and indirect costs of net revenues

  

                                     (9,779,392 ) 
                                           

 

 

  
             

Income from operations

                                             19,291,156  
                                           

 

 

  

Other income (expenses):

                                                

Interest income and other financial gains

  

                                     1,873,768  

Interest expense and other financial results

  

                                     (628,950 ) 

Foreign currency loss

                                             (500,655 ) 

Other income, net

                                             20,344  
                                           

 

 

  

Net income before income / asset tax expense

  

                                   $ 20,055,663  
                                           

 

 

  

The following table summarizes the allocation of the long-lived tangible assets based on geography:

 

 

                 
    March 31,     December 31,  
    2012     2011  

US long-lived tangible assets

   $ 7,158,884     $ 5,976,544  

Other countries long-lived tangible assets

                

Argentina

     14,435,776       14,316,612  

Brazil

     2,364,730       2,528,378  

Mexico

     430,039       409,707  

Venezuela (*)

     7,870,266       7,192,073  

Other countries

     857,360       454,405  
   

 

 

    

 

 

  
    $ 25,958,171     $ 24,901,175  
   

 

 

    

 

 

  

Total long-lived tangible assets

   $ 33,117,055     $ 30,877,719  
   

 

 

    

 

 

  

 

(*) On June 2, 2011, the Company’s Venezuelan subsidiary acquired an office property of 992 square meters in a building located in Caracas, Venezuela. The purchase price of $6,626,433 million was paid in cash.

 

The following table summarizes the allocation of the goodwill and intangible assets based on geography:

 

 

                 
    March 31,     December 31,  
    2012     2011  

US intangible assets

   $ 28,882     $ —    

Other countries goodwill and intangible assets

                

Argentina

     21,835,253       22,407,558  

Brazil

     12,035,958       11,686,315  

Mexico

     14,908,278       13,709,353  

Venezuela

     6,595,222       6,599,584  

Other countries

     15,158,681       14,185,995  
   

 

 

    

 

 

  
    $ 70,533,392     $ 68,588,805  
   

 

 

    

 

 

  

Total goodwill and intangible assets

   $ 70,562,274     $ 68,588,805