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Business Segments and Geographic Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Business Segments and Geographic Information

18. Business Segments and Geographic Information

Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services.

The data and analytics services segment was acquired through the July 13, 2017 acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as Mastech InfoTrellis and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Atlanta, Georgia, Toronto, Canada and Austin, Texas and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site resources and offshore resources. Assignments are secured on both a time and material and fixed price basis.

The IT staffing services segment offers staffing services in digital and mainstream technologies; and digital transformation services focused on providing CRM on the cloud through Salesforce.com and using digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis.

Below are the operating results of our reporting segments:

		At December 31,
		2019				2018				2017
		(Amounts in thousands)
Revenues:
Data and analytics services		$	26,663			$	23,803			$	9,185
IT staffing services			166,911				153,361				138,697
Total revenues		$	193,574			$	177,164			$	147,882
Gross Margin %:
Data and analytics services			46.7	%			44.0	%			44.8	%
IT staffing services			21.3	%			20.9	%			19.8	%
Total gross margin %			24.8	%			24.0	%			21.4	%
Segment operating income:
Data and analytics services		$	5,495			$	5,710			$	2,531
IT staffing services			8,001				7,184				5,279
Subtotal			13,496				12,894				7,810
Amortization of acquired intangible assets			(2,688	)			(2,727	)			(1,710	)
Revaluation of contingent consideration liability			6,069				11,056				—
Goodwill impairment			—				(9,738	)			—
Acquisition-related transaction expenses			110				140				(2,019	)
Interest expenses and other, net			(1,768	)			(2,211	)			(1,133	)
Income before income taxes		$	15,219			$	9,414			$	2,948

Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment:

		Total Assets												Depreciation & Amortization												Capital Expenditures
Amounts in thousands		2019				2018				2017				2019				2018				2017				2019				2018				2017
Data and Analytics Services		$	41,527			$	43,182			$	53,683			$	2,078			$	2,051			$	925			$	203			$	175			$	11
IT Staffing Services			49,057				49,402				44,921				1,356				1,131				1,017				811				596				1,428
Total		$	90,584			$	92,584			$	98,604			$	3,434			$	3,182			$	1,942			$	1,014			$	771			$	1,439

Below is geographic information related to our revenues from external customers and fixed assets, net (equipment, enterprise software and leasehold improvements):

		Revenues												Equipment, Enterprise Software and Leasehold Improvements, net
Amounts in thousands		2019				2018				2017				2019				2018				2017
United States		$	188,710			$	172,610			$	145,513			$	2,095			$	1,956			$	1,730
Canada			2,918				3,125				1,729				8				17				19
India and Other			1,946				1,429				640				373				235				150
Total		$	193,574			$	177,164			$	147,882			$	2,476			$	2,208			$	1,899

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- References

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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

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