13.

Segment Information

Due to the

April 3, 2017

acquisition of Tealstone, the Company has reviewed its reportable segments, operating segments and reporting units. Based on our review, we have concluded that our operations consist of

two

reportable segments,

two

operating segments and

two

reporting unit components: heavy civil construction and residential construction. In making this determination, the Company considered the discrete financial information used by our Chief Operating Decision Maker (“CODM”). Based on this approach, the Company noted that the CODM organizes, evaluates and manages the financial information around the aggregation of heavy civil construction projects and the entire residential construction division when making operating decisions and assessing the Company’s overall performance. Furthermore, we considered the differences between the types of work performed in each reporting unit. Each heavy civil construction project has similar characteristics, includes similar services, has similar types of customers and is subject to similar economic and regulatory environments. Projects in our heavy civil construction segment typically last for several years, involve several subtasks and are accounted for using the percentage of completion method. Conversely, our residential construction projects typically consist of a high volume of independent units performed for customers that are billed, paid and accounted for as the individual units are completed. Each job performed in our residential construction segment typically takes less than

one

month to complete.

Segment reporting is aligned based upon the services offered by our

two

operating groups, which represent our reportable segments: Heavy Civil Construction and Residential Construction, as mentioned above. Our chief operating decision maker evaluates the performance of the aforementioned operating groups based upon revenue and income from operations. Each operating group’s income from operations reflects corporate costs, allocated based primarily upon revenue.

The following table presents total revenue and income from operations by reportable segment for the

three

months and

six

months ended

June 30, 2017

and

2016

(in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Revenue
Heavy Civil Construction	$	209,194	$	189,582	$	362,610	$	316,149
Residential Construction		37,218		-		37,218		-
Total Revenue	$	246,412	$	189,582	$	399,828	$	316,149

Operating Income
Heavy Civil Construction	$	3,141	$	3,381	$	1,667	$	(3,085	)
Residential Construction		5,215		-		4,901		-
Total Operating Income	$	8,356	$	3,381	$	6,568	$	(3,085	)

From the acquisition closing date of

April 3, 2017,

through

June 30, 2017,

revenue and income from operations associated with the Tealstone Acquisition totaled approximately

$42.5

million and

$5.5

million, respectively.

The following table presents total assets by reportable segment at

June 30, 2017

and

December 31, 2016:

	June 30, 2017		December 31, 2016
Assets
Heavy Civil Construction	$	356,661	$	301,823
Residential Construction		98,792		-
Total Assets	$	455,453	$	301,823

The Company is in the process of finalizing the purchase accounting, which will affect the allocation of goodwill by reportable segments. Refer to Note

However, of the newly acquired goodwill, with a preliminarily amount of

$36.2

million, we believe that almost all will be allocated to the Residential Construction segment.