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Segment Reporting | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Reporting |
1 6. | Segment Reporting
The Company has two operating and reportable segments, Commercial Services and Government Solutions. Commercial Services offers toll and violation management solutions and title and registration services to commercial fleet vehicle owners, rental car companies and violation-issuing authorities. Government Solutions implements and administers traffic safety programs and products for municipalities and local government agencies of all sizes. The Company’s Chief Operating Decision Maker function (“CODM”) is comprised of the Company’s CEO and certain defined representatives of the Company’s executive management team. The Company’s CODM monitors operating performance, allocates resources and deploys capital based on these two segments. Segment performance is based on revenues and (loss) income from operations before depreciation, amortization, gain (loss) on disposal of assets, net, and stock-based compensation. The measure also excludes interest expense, net, income taxes and is inclusive of other income, net. The tables below refer to this measure as Segment profit (loss). The aforementioned items are not indicative of operating performance, and, as a result are not included in the measures that are reviewed by the CODM for the segments. Other income, net consists primarily of credit card rebates earned on the prepayment of tolling transactions and is therefore included in Segment profit (loss). There are no significant non-cash items reported in Segment profit (loss). The following tables set forth financial information by segment for the respective periods:
|  | For the Three Months Ended June 30, 2020 |
|  | Commercial |  |  | Government |  |  | Corporate |  |  |  |  |
($ in thousands) |  | Services |  |  | Solutions |  |  | and Other |  |  | Total |
Service revenue |  | $ | 27,272 |  |  | $ | 35,543 |  |  | $ | — |  |  | $ | 62,815 |
Product sales |  |  | — |  |  |  | 16,994 |  |  |  | — |  |  |  | 16,994 |
Total revenue |  |  | 27,272 |  |  |  | 52,537 |  |  |  | — |  |  |  | 79,809 |
Cost of service revenue |  |  | 646 |  |  |  | 367 |  |  |  | — |  |  |  | 1,013 |
Cost of product sales |  |  | — |  |  |  | 9,060 |  |  |  | — |  |  |  | 9,060 |
Operating expenses |  |  | 10,750 |  |  |  | 15,655 |  |  |  | — |  |  |  | 26,405 |
Selling, general and administrative expenses |  |  | 10,191 |  |  |  | 7,150 |  |  |  | 503 |  |  |  | 17,844 |
Other income, net |  |  | (1,507 | ) |  |  | (16 | ) |  |  | — |  |  |  | (1,523 | )
Segment profit (loss) |  | $ | 7,192 |  |  | $ | 20,321 |  |  | $ | (503 | ) |  | $ | 27,010 |
Segment profit (loss) |  | $ | 7,192 |  |  | $ | 20,321 |  |  | $ | (503 | ) |  | $ | 27,010 |
Depreciation and amortization |  |  | — |  |  |  | — |  |  |  | 29,159 |  |  |  | 29,159 |
Loss on disposal of assets, net |  |  | 5 |  |  |  | 2 |  |  |  | — |  |  |  | 7 |
Loss from tax receivable agreement adjustment |  |  | — |  |  |  | — |  |  |  | 4,446 |  |  |  | 4,446 |
Stock-based compensation |  |  | — |  |  |  | — |  |  |  | 3,271 |  |  |  | 3,271 |
Interest expense, net |  |  | — |  |  |  | — |  |  |  | 9,539 |  |  |  | 9,539 |
Income (loss) before income tax benefit |  | $ | 7,187 |  |  | $ | 20,319 |  |  | $ | (46,918 | ) |  | $ | (19,412 | )
|  | For the Three Months Ended June 30, 2019 |
|  | Commercial |  |  | Government |  |  | Corporate |  |  |  |  |
($ in thousands) |  | Services |  |  | Solutions |  |  | and Other |  |  | Total |
Service revenue |  | $ | 68,091 |  |  | $ | 34,966 |  |  | $ | — |  |  | $ | 103,057 |
Product sales |  |  | — |  |  |  | 6,518 |  |  |  | — |  |  |  | 6,518 |
Total revenue |  |  | 68,091 |  |  |  | 41,484 |  |  |  | — |  |  |  | 109,575 |
Cost of service revenue |  |  | 915 |  |  |  | 698 |  |  |  | — |  |  |  | 1,613 |
Cost of product sales |  |  | — |  |  |  | 2,918 |  |  |  | — |  |  |  | 2,918 |
Operating expenses |  |  | 16,722 |  |  |  | 14,801 |  |  |  | — |  |  |  | 31,523 |
Selling, general and administrative expenses |  |  | 9,629 |  |  |  | 7,561 |  |  |  | 1,135 |  |  |  | 18,325 |
Other income, net |  |  | (3,308 | ) |  |  | (37 | ) |  |  | — |  |  |  | (3,345 | )
Segment profit (loss) |  | $ | 44,133 |  |  | $ | 15,543 |  |  | $ | (1,135 | ) |  | $ | 58,541 |
Segment profit (loss) |  | $ | 44,133 |  |  | $ | 15,543 |  |  | $ | (1,135 | ) |  | $ | 58,541 |
Depreciation and amortization |  |  | — |  |  |  | — |  |  |  | 28,865 |  |  |  | 28,865 |
Gain on disposal of assets, net |  |  | — |  |  |  | (15 | ) |  |  | — |  |  |  | (15 | )
Impairment of property and equipment |  |  | — |  |  |  | 5,898 |  |  |  | — |  |  |  | 5,898 |
Stock-based compensation |  |  | — |  |  |  | — |  |  |  | 2,812 |  |  |  | 2,812 |
Interest expense, net |  |  | — |  |  |  | — |  |  |  | 15,656 |  |  |  | 15,656 |
Income (loss) before income tax provision |  | $ | 44,133 |  |  | $ | 9,660 |  |  | $ | (48,468 | ) |  | $ | 5,325 |
|  | For the Six Months Ended June 30, 2020 |
|  | Commercial |  |  | Government |  |  | Corporate |  |  |  |  |
($ in thousands) |  | Services |  |  | Solutions |  |  | and Other |  |  | Total |
Service revenue |  | $ | 88,514 |  |  | $ | 73,798 |  |  | $ | — |  |  | $ | 162,312 |
Product sales |  |  | — |  |  |  | 34,210 |  |  |  | — |  |  |  | 34,210 |
Total revenue |  |  | 88,514 |  |  |  | 108,008 |  |  |  | — |  |  |  | 196,522 |
Cost of service revenue |  |  | 1,453 |  |  |  | 779 |  |  |  | — |  |  |  | 2,232 |
Cost of product sales |  |  | — |  |  |  | 17,750 |  |  |  | — |  |  |  | 17,750 |
Operating expenses |  |  | 27,280 |  |  |  | 31,164 |  |  |  | — |  |  |  | 58,444 |
Selling, general and administrative expenses |  |  | 23,575 |  |  |  | 16,819 |  |  |  | 788 |  |  |  | 41,182 |
Other income, net |  |  | (4,396 | ) |  |  | (52 | ) |  |  | — |  |  |  | (4,448 | )
Segment profit (loss) |  | $ | 40,602 |  |  | $ | 41,548 |  |  | $ | (788 | ) |  | $ | 81,362 |
Segment profit (loss) |  | $ | 40,602 |  |  | $ | 41,548 |  |  | $ | (788 | ) |  | $ | 81,362 |
Depreciation and amortization |  |  | — |  |  |  | — |  |  |  | 58,409 |  |  |  | 58,409 |
Loss (gain) on disposal of assets, net |  |  | 5 |  |  |  | (2 | ) |  |  | — |  |  |  | 3 |
Loss from tax receivable agreement adjustment |  |  | — |  |  |  | — |  |  |  | 4,446 |  |  |  | 4,446 |
Stock-based compensation |  |  | — |  |  |  | — |  |  |  | 6,039 |  |  |  | 6,039 |
Interest expense, net |  |  | — |  |  |  | — |  |  |  | 21,990 |  |  |  | 21,990 |
Income (loss) before income tax benefit |  | $ | 40,597 |  |  | $ | 41,550 |  |  | $ | (91,672 | ) |  | $ | (9,525 | )
|  | For the Six Months Ended June 30, 2019 |
|  | Commercial |  |  | Government |  |  | Corporate |  |  |  |  |
($ in thousands) |  | Services |  |  | Solutions |  |  | and Other |  |  | Total |
Service revenue |  | $ | 130,679 |  |  | $ | 70,448 |  |  | $ | — |  |  | $ | 201,127 |
Product sales |  |  | — |  |  |  | 6,909 |  |  |  | — |  |  |  | 6,909 |
Total revenue |  |  | 130,679 |  |  |  | 77,357 |  |  |  | — |  |  |  | 208,036 |
Cost of service revenue |  |  | 1,779 |  |  |  | 1,223 |  |  |  | — |  |  |  | 3,002 |
Cost of product sales |  |  | — |  |  |  | 3,194 |  |  |  | — |  |  |  | 3,194 |
Operating expenses |  |  | 31,818 |  |  |  | 28,839 |  |  |  | — |  |  |  | 60,657 |
Selling, general and administrative expenses |  |  | 20,391 |  |  |  | 15,411 |  |  |  | 1,135 |  |  |  | 36,937 |
Other income, net |  |  | (5,478 | ) |  |  | (74 | ) |  |  | — |  |  |  | (5,552 | )
Segment profit (loss) |  | $ | 82,169 |  |  | $ | 28,764 |  |  | $ | (1,135 | ) |  | $ | 109,798 |
Segment profit (loss) |  | $ | 82,169 |  |  | $ | 28,764 |  |  | $ | (1,135 | ) |  | $ | 109,798 |
Depreciation and amortization |  |  | — |  |  |  | — |  |  |  | 57,804 |  |  |  | 57,804 |
Gain on disposal of assets, net |  |  | — |  |  |  | (13 | ) |  |  | — |  |  |  | (13 | )
Impairment of property and equipment |  |  | — |  |  |  | 5,898 |  |  |  | — |  |  |  | 5,898 |
Stock-based compensation |  |  | — |  |  |  | — |  |  |  | 4,955 |  |  |  | 4,955 |
Interest expense, net |  |  | — |  |  |  | — |  |  |  | 31,689 |  |  |  | 31,689 |
Income (loss) before income tax provision |  | $ | 82,169 |  |  | $ | 22,879 |  |  | $ | (95,583 | ) |  | $ | 9,465 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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