Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.3
Segment Reporting
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
Segment information is prepared on the same basis that management reviews financial information for operational decision-making purposes. Beginning with the quarter ended March 31, 2019, the Operating Company had a change in reportable segments due to the Canadian operations becoming a significant part of the business. As of September 30, 2019, the Company had two reportable segments: (1) U.S. and (2) Canada. The U.S. operating segment is comprised of the Company’s U.S. operations while the Canadian operating segment is comprised of the Company’s Canadian operations. The reportable segments identified are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by the Company’s chief operating decision maker to allocate resources and assess performance.
Concurrent with the change in reportable operating segments, the Company recast its prior period financial information to reflect comparable financial information for the new segment structure. Historical financial information presented herein reflects this change.
The table below provides information on revenues from external customers, intersegment revenues, and segment income for the reportable segments for the three and nine months ended September 30, 2019 and 2018. Intersegment revenues are eliminated in consolidation.
Three Months Ended
September 30, 2019		 Three Months Ended
September 30, 2018
United States Canada Total United States Canada Total
(in thousands) (in thousands)
Revenues from external customers $ 38,597    $ 6,289    $ 44,886    $ 40,576    $ 2,985    $ 43,561   
Intercompany revenues 1,392    23    1,415    898    62    960   
Segment operating (loss) income
 (2,827)   200    (2,627)   504    188    692   

Nine Months Ended
September 30, 2019		 Nine Months Ended
September 30, 2018
United States Canada Total United States Canada Total
(in thousands) (in thousands)
Revenues from external customers $ 129,017    $ 18,753    $ 147,770    $ 120,665    $ 6,714    $ 127,379   
Intercompany revenues 2,910    105    3,015    2,742    149    2,891   
Segment operating (loss) income
 (5,077)   (38)   (5,115)   3,798    288    4,086   
The following is a reconciliation of total loss for the reportable segments to consolidated income (loss) from continuing operations before income taxes. “Corporate and other income (loss)” is comprised of unallocated corporate overhead expenses.

Three Months Ended
September 30,		 Nine Months Ended
September 30,
2019 2018 2019 2018
(in thousands)
Total segment (loss) income for reportable segments $ (2,627)   $ 692    $ (5,115)   $ 4,086   
Corporate and other loss (2,898)   (357)   (9,511)   (1,075)  
Interest expense (119)   (136)   (862)   (296)  
Change in fair value of convertible notes payable —    —    (12,063)   —   
Other income (expense), net 7,746    (141)   8,670    18   
Income (loss) from continuing operations before income taxes $ 2,102    $ 58    $ (18,881)   $ 2,733   
No single customer represented more than 10% of the Company’s net sales for the three months ended September 30, 2019 and September 30, 2018, and for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, one customer represented approximately 18.2% of the Company’s accounts receivable balances. No other single customers represented more than 10% of the accounts receivable balance as of September 30, 2019. As of December 31, 2018, no single customer represented more than 10% of the Company’s accounts receivable balance.