Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.3
Segment Information
 9 Months Ended
Sep. 30, 2019
Segment Information  
Segment Information

 

14.          Segment Information:

 

FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the President of our “Lifeboat Distribution” segment.

 

The Company is organized into two reportable operating segments. The “Lifeboat Distribution” segment distributes technical software and hardware to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “TechXtend” segment is a value-added reseller of software, hardware and services for corporations, government organizations and academic institutions in the United States and Canada.

 

As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as the Canadian operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources.

 

Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

Nine months ended September 30,

 

Three months ended September 30,

 

 

2019

  

2018

  

2019

  

2018

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

136,189

 

$

119,308

 

$

48,815

 

$

44,145

TechXtend

 

 

11,708

 

 

13,081

 

 

3,548

 

 

3,778

 

 

 

147,897

 

 

132,389

 

 

52,363

 

 

47,923

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

19,708

 

$

17,099

 

$

6,386

 

$

5,639

TechXtend

 

 

2,400

 

 

2,597

 

 

669

 

 

664

 

 

 

22,108

 

 

19,696

 

 

7,055

 

 

6,303

Direct Costs:

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

7,520

 

$

6,517

 

$

2,481

 

$

2,295

TechXtend

 

 

1,124

 

 

1,257

 

 

316

 

 

362

 

 

 

8,644

 

 

7,774

 

 

2,797

 

 

2,657

Segment Income Before Taxes: (1)

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

12,188

 

$

10,582

 

$

3,905

 

$

3,344

TechXtend

 

 

1,276

 

 

1,340

 

 

353

 

 

302

Segment Income Before Taxes

 

 

13,464

 

 

11,922

 

 

4,258

 

 

3,646

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

7,431

 

$

7,474

 

$

2,290

 

$

2,246

Separation expenses

 

 

100

 

 

2,446

 

 

 —

 

 

 —

Interest, net

 

 

416

 

 

744

 

 

118

 

 

296

Foreign currency transaction gain (loss)

 

 

39

 

 

40

 

 

(52)

 

 

42

Income before taxes

 

$

6,388

 

$

2,786

 

$

2,034

 

$

1,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes general corporate expenses including interest and foreign currency translation expenses.

 

 

 

 

 

 

 

 

 

 

    

(Unaudited)

    

 

    

 

 

As of

 

As of 

 

 

 

September 30,

 

December 31,

 

Selected Assets by Segment:

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

85,431

 

$

77,610

 

TechXtend

 

 

5,588

 

 

11,542

 

Segment Select Assets

 

 

91,019

 

 

89,152

 

Corporate Assets

 

 

15,806

 

 

18,819

 

Total Assets

 

$

106,825

 

$

107,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Three months ended

 

 

 

(Unaudited)

 

(Unaudited)

 

Disaggregation of Revenue:

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2019

 

2018

 

2019

 

2018

 

Lifeboat Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware, software and other products

 

$
122,967

 

$
108,213

 

$
44,308

 

$
40,617

 

Software - security & highly interdependent with support

 

 
5,162

 

 
4,607

 

 
1,670

 

 
1,358

 

Maintenance, support & other services

 

 
8,060

 

 
6,488

 

 
2,837

 

 
2,170

 

Net Sales

 

$
136,189

 

$
119,308

 

$
48,815

 

$
44,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TechXtend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware, software and other products

 

$
10,515

 

$

11,860

 

$
3,200

 

$

3,483

 

Software - security & highly interdependent with support

 

 
255

 

 

422

 

 
128

 

 

75

 

Maintenance, support & other services

 

 
938

 

 

799

 

 
220

 

 

220

 

Net Sales

 

$
11,708

 

$
13,081

 

$
3,548

 

$
3,778