Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v3.3.0.814
Industry, Segment and Geographic Information
 9 Months Ended
Sep. 30, 2015
Industry, Segment and Geographic Information  
Industry, Segment and Geographic Information

 

12.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 Chief Executive Officer.

 

The Company is organized into two reportable operating segments.  The “Lifeboat Distribution” segment distributes technical software 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 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:

 

 

 

Nine months ended

 

Three months ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Revenue:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
250,287

 

$
206,655

 

$
86,082

 

$
77,416

 

TechXtend

 
32,027

 
39,980

 
11,571

 
13,089

 

 

 

 

 

 

 

 

 

 

 

 

 
282,314

 
246,635

 
97,653

 
90,505

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
15,837

 

$
13,475

 

$
5,493

 

$
4,747

 

TechXtend

 
3,825

 
4,378

 
1,387

 
1,429

 

 

 

 

 

 

 

 

 

 

 

 

 
19,662

 
17,853

 
6,880

 
6,176

 

 

 

 

 

 

 

 

 

 

 

Direct Costs:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 
5,759

 

$
4,044

 

$
2,051

 

$
1,565

 

TechXtend

 
1,725

 
2,409

 
521

 
815

 

 

 

 

 

 

 

 

 

 

 

 

 
7,484

 
6,453

 
2,572

 
2,380

 

 

 

 

 

 

 

 

 

 

 

Segment Income:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
10,078

 

$
9,431

 

$
3,442

 

$
3,182

 

TechXtend

 
2,100

 
1,969

 
866

 
614

 

 

 

 

 

 

 

 

 

 

 

Segment Income

 
12,178

 
11,400

 
4,308

 
3,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$
6,049

 

$
5,840

 

$
2,046

 

$
1,911

 

Interest, net

 
297

 
375

 
100

 
121

 

Foreign currency translation (loss)

 
(9

)
(8

)
(4

)
(4

)

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

$
6,417

 

$
5,927

 

$
2,358

 

$
2,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of
September 30,
2015

 

As of
December
31, 2014

 

Selected Assets By Segment:

 

 

 

 

 

Lifeboat Distribution

 

$
40,003 

 

$
39,780 

 

TechXtend

 
25,064 

 
30,153 

 

 

 

 

 

 

 

Segment Select Assets

 
65,067 

 
69,933 

 

Corporate Assets

 
21,546 

 
25,048 

 

 

 

 

 

 

 

Total Assets

 

$
86,613 

 

$
94,981