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Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information

Note 16. Segment Information

The Company manages its operations under three operating segments which represent the Company’s three reportable segments: Safety Services, Specialty Services, and Industrial Services. This structure is generally focused on various businesses related to contracting services and maintenance of industrial and commercial facilities. All three reportable segments derive their revenues from installation, inspection, maintenance, service and repair, retrofitting and upgrading, engineering and design, distribution, fabrication, and various types of other services primarily in the United States as well as Canada and Europe.

The Safety Services segment focusing on end-to-end integrated occupancy systems (fire protection solutions, HVAC and entry systems), including design, installation, inspection and service of these integrated systems. The work performed within this segment spans across industries and facilities and includes commercial, education, healthcare, high tech, industrial and special-hazard settings.

The Specialty Services segment provides a variety of infrastructure services and specialized industrial plant services, which includes maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer and telecommunications infrastructure. This segment’s services include engineering and design, fabrication, installation, maintenance service and repair, and retrofitting and upgrading. Customers within this segment vary from private and public utilities, communications, healthcare, education, transportation, manufacturing, industrial plants and governmental agencies throughout the United States.

The Industrial Services segment provides a variety of services to the energy industry focused on transmission and distribution. This segment’s services include pipeline infrastructure, access and road construction, supporting facilities, and performing ongoing integrity management and maintenance

The accounting policies of the reportable segments are the same as those described in Note 2 – “Basis of Presentation and Significant Accounting Policies.” All intercompany transactions and balances are eliminated in consolidation. Intercompany revenues and costs between entities within a reportable segment are eliminated to arrive at segment totals and eliminations between segments are separately presented. Corporate results include amounts related to corporate functions such as administrative costs, professional fees, acquisition-related transaction costs (exclusive of acquisition integration costs, which are included within the segment results of the acquired businesses), and other discrete items.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.

Summarized financial information for the Company’s reportable segments is presented and reconciled to consolidated financial information in the following tables, including a reconciliation of consolidated operating income to EBITDA. The tables below may contain slight summation differences due to rounding:

 

 

 

Three Months Ended September 30, 2021

 

 

 

Safety
Services

 

 

Specialty
Services

 

 

Industrial
Services

 

 

Corporate and
Eliminations

 

 

Consolidated

 

Net revenues

 

$

533

 

 

$

436

 

 

$

103

 

 

$

(25

)

 

$

1,047

 

EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

56

 

 

$

31

 

 

$

—

 

 

$

(46

)

 

$

41

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income and other, net

 

 

—

 

 

 

3

 

 

 

1

 

 

 

(1

)

 

 

3

 

Depreciation

 

 

3

 

 

 

11

 

 

 

5

 

 

 

1

 

 

 

20

 

Amortization

 

 

16

 

 

 

11

 

 

 

3

 

 

 

2

 

 

 

32

 

EBITDA

 

$

75

 

 

$

56

 

 

$

9

 

 

$

(44

)

 

$

96

 

Total assets

 

$

3,108

 

 

$

1,284

 

 

$

198

 

 

$

193

 

 

$

4,783

 

Capital expenditures

 

 

3

 

 

 

4

 

 

 

2

 

 

 

—

 

 

 

9

 

 

 

 

 

Three Months Ended September 30, 2020

 

 

 

Safety
Services

 

 

Specialty
Services

 

 

Industrial
Services

 

 

Corporate and
Eliminations

 

 

Consolidated

 

Net revenues

 

$

404

 

 

$

400

 

 

$

158

 

 

$

(4

)

 

$

958

 

EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(24

)

 

$

105

 

 

$

17

 

 

$

(36

)

 

$

62

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income and other, net

 

 

4

 

 

 

5

 

 

 

—

 

 

 

(3

)

 

 

6

 

Depreciation

 

 

2

 

 

 

11

 

 

 

6

 

 

 

2

 

 

 

21

 

Amortization

 

 

35

 

 

 

5

 

 

 

(10

)

 

 

1

 

 

 

31

 

EBITDA

 

$

17

 

 

$

126

 

 

$

13

 

 

$

(36

)

 

$

120

 

Total assets

 

$

1,702

 

 

$

1,105

 

 

$

341

 

 

$

678

 

 

$

3,826

 

Capital expenditures

 

 

—

 

 

 

5

 

 

 

2

 

 

 

—

 

 

 

7

 

 

 

 

Nine Months Ended September 30, 2021

 

 

 

Safety
Services

 

 

Specialty
Services

 

 

Industrial
Services

 

 

Corporate and
Eliminations

 

 

Consolidated

 

Net revenues

 

$

1,511

 

 

$

1,172

 

 

$

196

 

 

$

(51

)

 

$

2,828

 

EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

153

 

 

$

60

 

 

$

(23

)

 

$

(104

)

 

$

86

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income and other, net

 

 

5

 

 

 

5

 

 

 

3

 

 

 

(1

)

 

 

12

 

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9

)

 

 

(9

)

Depreciation

 

 

6

 

 

 

32

 

 

 

17

 

 

 

4

 

 

 

59

 

Amortization

 

 

49

 

 

 

34

 

 

 

9

 

 

 

3

 

 

 

95

 

EBITDA

 

$

213

 

 

$

131

 

 

$

6

 

 

$

(107

)

 

$

243

 

Total assets

 

$

3,108

 

 

$

1,284

 

 

$

198

 

 

$

193

 

 

$

4,783

 

Capital expenditures

 

 

5

 

 

 

25

 

 

 

13

 

 

 

—

 

 

 

43

 

 

 

 

Nine Months Ended September 30, 2020

 

 

 

Safety
Services

 

 

Specialty
Services

 

 

Industrial
Services

 

 

Corporate and
Eliminations

 

 

Consolidated

 

Net revenues

 

$

1,199

 

 

$

1,049

 

 

$

468

 

 

$

(11

)

 

$

2,705

 

EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(12

)

 

$

(9

)

 

$

(37

)

 

$

(87

)

 

$

(145

)

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income and other, net

 

 

9

 

 

 

13

 

 

 

—

 

 

 

(2

)

 

 

20

 

Depreciation

 

 

4

 

 

 

35

 

 

 

19

 

 

 

4

 

 

 

62

 

Amortization

 

 

83

 

 

 

41

 

 

 

7

 

 

 

3

 

 

 

134

 

EBITDA

 

$

84

 

 

$

80

 

 

$

(11

)

 

$

(82

)

 

$

71

 

Total assets

 

$

1,702

 

 

$

1,105

 

 

$

341

 

 

$

678

 

 

$

3,826

 

Capital expenditures

 

 

1

 

 

 

14

 

 

 

8

 

 

 

1

 

 

 

24