SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Dec. 30, 2022

SEGMENT AND GEOGRAPHICAL INFORMATION

9. SEGMENT AND GEOGRAPHICAL INFORMATION

Segment Information

The Company’s two segments are Energy and Engineering and Consulting, and the Company’s chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format.

There were no intersegment sales during the fiscal years 2022, 2021, or 2020. The Company’s chief operating decision maker evaluates the performance of each segment based upon income or loss from operations before income taxes. Certain segment asset information including expenditures for long-lived assets has not been presented as it is not reported to or reviewed by the chief operating decision maker. In addition, enterprise-wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.

Financial information with respect to the reportable segments and reconciliation to the amounts reported in the Company’s consolidated financial statements follows:


			Engineering		Unallocated				Consolidated
	Energy		& Consulting		Corporate		Intersegment		Total
	(in thousands)
Fiscal Year 2022
Contract revenue	$	357,460	$	71,678	$	—	$	—	$	429,138
Depreciation and amortization		16,507		982		—		—		17,489
Interest expense		11		—		5,317		—		5,328
Segment profit (loss) before income tax expense		(9,544)		10,896		(12,804)		—		(11,452)
Income tax (benefit) expense		(2,504)		2,858		(3,358)		—		(3,004)
Net income (loss)		(7,041)		8,037		(9,444)		—		(8,448)
Segment assets ⁽¹⁾		342,067		22,034		68,703		(23,130)		409,674
Fiscal Year 2021
Contract revenue	$	286,385	$	67,370	$	—	$	—	$	353,755
Depreciation and amortization		16,156		990		—		—		17,146
Interest expense		8		—		3,861		—		3,869
Segment profit (loss) before income tax expense		(4,808)		9,135		(16,731)		—		(12,404)
Income tax (benefit) expense		(1,546)		2,936		(5,377)		—		(3,987)
Net income (loss)		(3,263)		6,198		(11,352)		—		(8,417)
Segment assets ⁽¹⁾		363,232		21,423		32,897		(23,130)		394,422
Fiscal Year 2020
Contract revenue	$	324,178	$	66,802	$	—	$	—	$	390,980
Depreciation and amortization		17,666		1,077		—		—		18,743
Interest expense		32		—		5,036		—		5,068
Segment profit (loss) before income tax expense		(9,963)		9,500		(19,206)		—		(19,669)
Income tax (benefit) expense		(2,621)		2,499		(5,051)		—		(5,173)
Net income (loss)		(7,343)		7,002		(14,155)		—		(14,496)
Segment assets⁽¹⁾		337,739		21,796		66,619		(23,130)		403,024

(1)	Segment assets are presented net of intercompany receivables.

The following tables provide information about disaggregated revenue by contract type, client type and geographical region:


	2022
	Energy		Engineering and Consulting		Total
	(in thousands, except percentage)
Contract Type
Time-and-materials	$	32,491	$	53,584	$	86,075
Unit-based		180,509		14,296		194,805
Fixed price		144,460		3,798		148,258
Total⁽¹⁾	$	357,460	$	71,678	$	429,138

Client Type
Commercial	$	29,782	$	5,566	$	35,348
Government		126,494		65,969		192,463
Utilities		201,184		143		201,327
Total⁽¹⁾	$	357,460	$	71,678	$	429,138

Geography ⁽¹⁾
Domestic	$	357,460	$	71,678	$	429,138


	2021
	Energy		Engineering and Consulting		Total
	(in thousands, except percentage)
Contract Type
Time-and-materials	$	34,004	$	52,209	$	86,213
Unit-based		180,311		10,688		190,999
Fixed price		72,069		4,474		76,543
Total⁽¹⁾	$	286,384	$	67,371	$	353,755

Client Type
Commercial	$	24,541	$	5,323	$	29,864
Government		65,249		61,899		127,148
Utilities		196,594		149		196,743
Total⁽¹⁾	$	286,384	$	67,371	$	353,755

Geography ⁽¹⁾
Domestic	$	286,384	$	67,371	$	353,755


	2020
	Energy		Engineering and Consulting		Total
	(in thousands, except percentage)
Contract Type
Time-and-materials	$	47,912	$	53,840	$	101,752
Unit-based		170,991		9,195		180,186
Fixed price		105,275		3,767		109,042
Total⁽¹⁾	$	324,178	$	66,802	$	390,980

Client Type
Commercial	$	36,212	$	5,155	$	41,367
Government		93,821		61,412		155,233
Utilities		194,145		235		194,380
Total⁽¹⁾	$	324,178	$	66,802	$	390,980

Geography⁽¹⁾
Domestic	$	324,178	$	66,802	$	390,980

(1)	Revenue from our foreign operations were immaterial for fiscal years 2022, 2021, and 2020.

The following sets forth the assets that are included in Unallocated Corporate as of December 30, 2022 and December 31, 2021.


	2022		2021
	(in thousands)
Assets:
Cash and cash equivalents	$	8,806	$	11,221
Restricted cash		10,679		—
Accounts Receivable, net		(11,793)		(40,441)
Prepaid expenses		3,366		2,811
Intercompany receivables		1,706,878		1,131,100
Goodwill		2		2
Other receivables		4,154		4,328
Equipment and leasehold improvements, net		1,680		1,190
Investments in subsidiaries		32,885		36,084
ROU Assets		126		452
Other		254		399
Deferred income taxes		18,543		16,849
	$	1,775,580	$	1,163,995

Geographical Information

Substantially all of the Company’s consolidated revenue was derived from its operations in the U.S. In connection with the Company’s acquisition of E3, Inc. in October 28, 2019, the Company expanded its operations into Canada. Revenues from the Company’s Canadian operations were not material for fiscal years 2022, 2021, and 2020.

Customer Concentration

For fiscal years 2022, 2021, and 2020, the Company’s top 10 customers accounted for 54.6%, 49.2%, and 48.0%, respectively, of the Company’s consolidated contract revenue. During fiscal years 2022, 2021, and 2020, the Company had individual customers that accounted for more than 10% of its consolidated contract revenues. For fiscal year 2022, the Company derived 12.0% of its consolidated contract revenue from one customer, Los Angeles Department of Water and Power (“LADWP”). For fiscal year 2021, the Company derived 10.8% of its consolidated contract revenue from one customer, LADWP. For fiscal year 2020, the Company derived 10.2% of its consolidated contract revenue from one customer, LADWP.

On a segment basis, the Company also had individual customers that accounted for more than 10% of its segment contract revenues. For fiscal year 2022, the Company derived 14.4% of its Energy segment revenues from one customer, LADWP, and had no individual customers that accounted for more than 10% of its Engineering and Consulting segment revenues. For fiscal year 2021, the Company derived 34.5% of its Energy segment revenues from three customers, LADWP, Duke Energy and Consolidated Edison of New York, and it derived 10.3% of its Engineering and Consulting segment revenues from one customer, the City of Elk Grove. For fiscal year 2020, the Company derived 22.5% of its Energy segment revenues from two customers, LADWP and The Dormitory Authority State of New York (“DASNY”), and it derived 18.2% of its Engineering and Consulting segment revenues from one customer, the City of Elk Grove.

The Company’s largest clients are based in California and New York. In fiscal years 2022, 2021, and 2020, services provided to clients in California accounted for 41.7%, 36.8%, and 37.0%, respectively, of the Company’s contract revenue, and services provided to clients in New York accounted for 22.8%, 21.0%, and 19.2%, respectively, of the Company’s contract revenue.

- 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://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 31
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+ Details