Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v3.5.0.2
Industry, Segment and Geographic Information
 9 Months Ended
Sep. 30, 2016
Industry, Segment and Geographic Information  
Industry, Segment and Geographic Information

13.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,

 

 

    

2016

    

2015

    

2016

    

2015

    

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
267,113

 

$
250,287

 

$
91,114

 

$
86,082

 

TechXtend

 

 
31,054

 

 
32,027

 

 
8,472

 

 
11,571

 

 

 

 
298,167

 

 
282,314

 

 
99,586

 

 
97,653

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
16,139

 

$
15,837

 

$
5,440

 

$
5,493

 

TechXtend

 

 
3,186

 

 
3,825

 

 
932

 

 
1,387

 

 

 

 
19,325

 

 
19,662

 

 
6,372

 

 
6,880

 

Direct Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
5,442

 

$
5,759

 

$
1,846

 

$
2,051

 

TechXtend

 

 
1,553

 

 
1,725

 

 
490

 

 
521

 

 

 

 
6,995

 

 
7,484

 

 
2,336

 

 
2,572

 

Segment Income Before Taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
10,697

 

$
10,078

 

$
3,594

 

$
3,442

 

TechXtend

 

 
1,633

 

 
2,100

 

 
442

 

 
866

 

Segment Income Before Taxes

 

 
12,330

 

 
12,178

 

 
4,036

 

 
4,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 
6,575

 

$
6,049

 

$
2,015

 

$
2,046

 

Interest income

 

 
183

 

 
297

 

 
58

 

 
100

 

Foreign currency translation

 

 
(1)

 

 
(9)

 

 
3

 

 
(4)

 

Income before taxes

 

$
5,937

 

$
6,417

 

$
2,082

 

$
2,358

 

 

 

 

 

 

 

 

 

 

 

 

    

As of 

    

As of 

    

 

 

September 30,

 

December 31,

 

Selected Assets By Segment:

 

2016

 

2015

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
46,020

 

$
45,300

 

TechXtend

 

 
24,841

 

 
23,005

 

Segment Select Assets

 

 
70,861

 

 
68,305

 

Corporate Assets

 

 
24,561

 

 
25,777

 

Total Assets

 

$
95,422

 

$
94,082