SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Mar. 31, 2023

SEGMENT AND GEOGRAPHICAL INFORMATION

8. 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 three months ended March 31, 2023 and April 1, 2022. 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 Condensed Consolidated Financial Statements is as follows:


			Engineering		Unallocated				Consolidated
	Energy		& Consulting		Corporate		Intersegment		Total
	(in thousands)
Fiscal Three Months Ended March 31, 2023
Contract revenue	$	83,285	$	19,318	$	-	$	-	$	102,603
Depreciation and amortization		3,924		276		-		-		4,200
Interest expense, net		2		-		2,464		-		2,466
Segment profit (loss) before income tax expense		2,771		2,587		(3,670)		-		1,688
Income tax expense (benefit)		1,241		1,158		(1,643)		-		756
Net income (loss)		1,530		1,428		(2,026)		-		932
Segment assets ⁽¹⁾		323,578		23,587		69,332		(23,130)		393,367
Fiscal Three Months Ended April 1, 2022
Contract revenue	$	74,886	$	16,952	$	-	$	-	$	91,838
Depreciation and amortization		4,157		252		-		-		4,409
Interest expense, net		4		-		747		-		751
Segment profit (loss) before income tax expense		(4,353)		2,107		(3,916)		-		(6,162)
Income tax expense (benefit)		(1,687)		817		(1,519)		-		(2,389)
Net income (loss)		(2,665)		1,290		(2,398)		-		(3,773)
Segment assets ⁽¹⁾		336,957		22,979		35,931		(23,130)		372,737

(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:


	Three months ended March 31, 2023
	Energy		Engineering and Consulting		Total
	(in thousands)
Contract Type
Time-and-materials	$	7,709	$	14,554	$	22,263
Unit-based		44,927		3,616		48,543
Fixed price		30,649		1,148		31,797
Total⁽¹⁾	$	83,285	$	19,318	$	102,603

Client Type
Commercial	$	6,719	$	1,164	$	7,883
Government		26,075		18,095		44,170
Utilities⁽²⁾		50,491		59		50,550
Total⁽¹⁾	$	83,285	$	19,318	$	102,603

Geography ⁽³⁾
Domestic	$	83,285	$	19,318	$	102,603


	Three months ended April 1, 2022
	Energy		Engineering and Consulting		Total
	(in thousands)
Contract Type
Time-and-materials	$	8,818	$	13,001	$	21,819
Unit-based		42,957		2,984		45,941
Fixed price		23,110		968		24,078
Total ⁽¹⁾	$	74,886	$	16,952	$	91,838

Client Type
Commercial	$	8,089	$	1,478	$	9,567
Government		18,359		15,453		33,812
Utilities ⁽²⁾		48,437		21		48,458
Total ⁽¹⁾	$	74,886	$	16,952	$	91,838

Geography ⁽³⁾
Domestic	$	74,886	$	16,952	$	91,838

(1)

Amounts may not add to the totals due to rounding.

(2)

Includes the portion of revenue related to small business programs paid by the end user/customer.

(3)

Revenue from the Company’s foreign operations were not material for the three months ended March 31, 2023 and April 1, 2022.

Geographical Information

Substantially all of the Company’s consolidated revenue was derived from its operations in the U.S. The Company operates through a network of offices spread across 22 U.S. states, the District of Columbia, and Canada. Revenues from the Company’s Canadian operations were not material for the three months ended March 31, 2023 nor the three months ended April 1, 2022.

Customer Concentration

For the three months ended March 31, 2023 and April 1, 2022, the Company’s top 10 customers accounted for 52.2%, and 54.2%, respectively, of the Company’s consolidated contract revenue. For the three months ended March 31, 2023, and April 1, 2022, the Company had one customer, the Los Angeles Department of Water and Power (“LADWP”), that accounted for 11.1% and 17.1% of its consolidated contract revenues, respectively.

On a segment basis, the Company had individual customers that accounted for more than 10% of its segment contract revenues. For the three months ended March 31, 2023, the Company derived 13.7% of its Energy segment revenues from one customer, LADWP. For the three months ended March 31, 2023, no single customer accounted for 10% or more of its Engineering and Consulting segment revenues. For the three months ended April 1, 2022, the Company derived 32.1% of its Energy segment revenues from two customers, LADWP and Duke Energy. For the three months ended April 1, 2022, no single customer accounted for 10% or more of its Engineering and Consulting segment revenues.

On a geographical basis, the Company’s largest clients are based in California and New York. For the three months ended March 31, 2023 and April 1, 2022, services provided to clients in California accounted for 42.4% and 43.6%, respectively, of the Company’s contract revenue and services provided to clients in New York accounted for 24.5% and 19.0%, 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