XML 38 R26.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Information and Geographical Data
 12 Months Ended
Dec. 27, 2024
Segment Reporting [Abstract]  
Segment Information and Geographical Data

15. Segment Information and Geographical Data

Management has made the determination that it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings.The SAP Solutions reportable segment is the only segment that contains software license sales.

The Company’s CODM, its Chief Executive Officer (CEO), reviews the financial information presented for purposes of allocating resources and evaluating segment financial performance. The CODM primarily uses revenue before reimbursement generated by the segment, cost of sales, gross margin, selling, general and administrative costs and contribution margin as a measures of profitability for each of its segments as these measures provide a comprehensive view of the segments’ financial performance. The measurement criteria for segment profit or loss are substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Unallocated costs include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Segment information related to assets has been omitted as the CODM does not receive discrete financial information regarding assets at the segment level. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

15. Segment Information and Geographical Data (continued)

The tables below set forth information about the Company’s operating segments for the years ended December 27, 2024, December 29, 2023 and December 30, 2022 along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

 

 

 

Year Ended

 

 

 

December 27,

 

 

December 29,

 

 

December 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Global S&BT:

 

 

 

 

 

 

 

 

 

Revenue before reimbursements*

 

$

168,274

 

 

$

169,521

 

 

$

167,950

 

Cost of sales

 

 

89,276

 

 

 

89,646

 

 

 

86,575

 

Gross margin

 

 

78,998

 

 

 

79,875

 

 

 

81,375

 

Selling, general and administrative costs

 

 

27,416

 

 

 

25,509

 

 

 

20,056

 

Contribution margin

 

 

51,582

 

 

 

54,366

 

 

 

61,319

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

Revenue before reimbursements*

 

$

82,472

 

 

$

75,828

 

 

$

75,068

 

Cost of sales

 

 

55,855

 

 

 

51,840

 

 

 

53,589

 

Gross margin

 

 

26,617

 

 

 

23,988

 

 

 

21,479

 

Selling, general and administrative costs

 

 

7,507

 

 

 

5,928

 

 

 

6,144

 

Contribution margin

 

 

19,110

 

 

 

18,060

 

 

 

15,335

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

Revenue before reimbursements*

 

$

56,282

 

 

$

45,924

 

 

$

46,671

 

Cost of sales

 

 

27,757

 

 

 

27,179

 

 

 

27,716

 

Gross margin

 

$

28,525

 

 

$

18,745

 

 

$

18,955

 

Selling, general and administrative costs

 

 

9,782

 

 

 

6,820

 

 

 

6,128

 

Contribution margin

 

 

18,743

 

 

 

11,925

 

 

 

12,827

 

Total Company:

 

 

 

 

 

 

 

 

 

Total segment contribution margin

 

$

89,435

 

 

$

84,351

 

 

$

89,481

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

20,787

 

 

 

19,766

 

 

 

21,180

 

Non-cash stock based compensation expense

 

 

11,782

 

 

 

10,724

 

 

 

10,267

 

Stock price award program compensation expense

 

 

5,745

 

 

 

—

 

 

 

—

 

Acquisition-related compensation expense

 

 

390

 

 

 

—

 

 

 

—

 

Acquisition-related non-cash stock based compensation expense

 

 

1,997

 

 

 

—

 

 

 

—

 

Acquisition-related costs

 

 

125

 

 

 

—

 

 

 

—

 

Depreciation and amortization

 

 

3,919

 

 

 

3,421

 

 

 

3,437

 

Restructuring and asset impairment (settlement) charge

 

 

—

 

 

 

—

 

 

 

(651

)

Legal settlement and related costs

 

 

102

 

 

 

1,178

 

 

 

—

 

Interest expense, net

 

 

1,594

 

 

 

3,235

 

 

 

144

 

Income from operations before taxes

 

$

42,994

 

 

$

46,027

 

 

$

55,104

 

 

 

 

 

 

 

 

 

 

 

 

*Revenue before reimbursable expenses, excludes reimbursable expenses which are project travel-related expenses passed through to clients with no associated operating margin.

**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits.

15. Segment Information and Geographical Data (continued)

Total revenue by segment is included in Note 1, "Basis of Presentation and General Information."

During the year ended December 27, 2024, the Company had one client that exceeded 10% of total revenue, of which $13.8 million is included in the Global S&BT segment, $22.0 million is included in the Oracle segment and $72 thousand is included in the SAP segment.

The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):

 

 

Year Ended

 

 

 

December 27,

 

 

December 29,

 

 

December 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

United States

 

$

259,443

 

 

$

251,012

 

 

$

253,935

 

Europe (U.K., Germany, France and Switzerland)

 

 

35,287

 

 

 

28,648

 

 

 

23,866

 

Other (Australia, Canada, India and Uruguay)

 

 

19,125

 

 

 

16,930

 

 

 

15,941

 

Total Revenue

 

$

313,855

 

 

$

296,590

 

 

$

293,742

 

 

Europe includes total revenue derived in the U.K. of $26.6 million in 2024, $22.5 million in 2023 and $19.0 million in 2022.

Long-lived assets are attributed to geographic areas as follows (in thousands):

 

 

December 27,

 

 

December 29,

 

 

 

2024

 

 

2023

 

Long-lived assets:

 

 

 

 

 

 

North America

 

$

100,676

 

 

$

91,065

 

Europe (U.K., Germany and Netherlands)

 

 

14,247

 

 

 

14,481

 

Other (Australia, Canada, India and Uruguay)

 

 

608

 

 

 

444

 

Total long-lived assets

 

$

115,531

 

 

$

105,990

 

As of December 27, 2024 and December 29, 2023, the long-lived assets attributed to the U.K. in the table above included $13.4 million and $13.5 million, respectively. As of December 27, 2024 and December 29, 2023, foreign assets included $14.0 million and $14.3 million, respectively, of goodwill related to acquisitions, of which included $13.1 million and $13.3 million, respectively, were attributed to the U.K. Provisional goodwill related to the Company's acquisition of LeewayHertz, which was allocated to the Global S&BT segment, is included in the table above in Other of $5.9 million.