XML 39 R25.htm IDEA: XBRL DOCUMENT v3.23.1
Business Segments and Geographic Information
 12 Months Ended
Dec. 31, 2022
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, Toronto, and London, 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. In October 2020, we acquired AmberLeaf, a Chicago-based customer experience consulting firm. This acquisition expands our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise application across sales, marketing and customer service organizations.
The IT Staffing Services segment offers staffing services in digital and mainstream technologies and uses 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 learning services on a fixed price basis.
Below are the operating results of our reporting segments:
 
    
Years Ended December 31,
  
    
2022
    
2021
    
2020
  
    
(Amounts in thousands)
  
Revenues:
                         
Data and Analytics Services
    $ 40,594     $ 38,339     $ 30,226  
IT Staffing Services
      201,644       183,673       163,875  
    
 
 
    
 
 
    
 
 
  
Total revenues
    $ 242,238     $ 222,012     $ 194,101  
    
 
 
    
 
 
    
 
 
  
Gross Margin %:
                         
Data and Analytics Services
      41.5 %      48.4 %      50.5 % 
IT Staffing Services
      23.0 %      22.3 %      22.1 % 
    
 
 
    
 
 
    
 
 
  
Total gross margin %
      26.1 %      26.8 %      26.6 % 
Segment operating income:
                         
Data and Analytics Services
    $ 3,329     $ 5,310     $ 5,455  
IT Staffing Services
      13,297       12,728       11,388  
    
 
 
    
 
 
    
 
 
  
Subtotal
      16,626       18,038       16,843  
Amortization of acquired intangible assets
      (2,987 )      (3,170 )      (2,790 ) 
Reserve for cyber-security breach
      (450 )      —         —    
Severance expense
      (990 )      —         —    
Revaluation of contingent consideration liability
      —         2,882       —    
Acquisition transaction expenses
      —         (140 )      (650 ) 
Interest expense, FX gains/losses and other, net
      292       (724 )      (770 ) 
    
 
 
    
 
 
    
 
 
  
Income before income taxes
    $ 12,491     $ 16,886     $ 12,633  
    
 
 
    
 
 
    
 
 
  
Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment:
 
   
Total Assets
    
Depreciation & Amortization
    
Capital Expenditures
  
Amounts in thousands
  
2022
    
2021
    
2020
    
2022
    
2021
    
2020
    
2022
    
2021
    
2020
  
Data and Analytics Services
   $ 54,544     $ 56,634     $ 55,792     $ 2,860     $ 2,662     $ 2,245     $ 756     $ 1,692     $ 193  
IT Staffing Services
     54,335       57,434       46,254       1,335       1,317       1,344       79       203       105  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 108,879     $ 114,068     $ 102,046     $     4,195     $ 3,979     $ 3,589     $ 835     $ 1,895     $ 298  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
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
   
2022
     
2021
     
2020
     
2022
     
2021
     
2020
  
United States
    $ 236,187      $ 214,379      $ 189,890      $ 1,353      $ 2,221      $ 1,613  
Canada
      4,215        4,543        3,603        429        2        7  
India and Other
      1,836        3,090        608        883        815        351  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 242,238      $ 222,012      $ 194,101      $ 2,665      $ 3,038      $ 1,971