Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Financial Information

v3.19.2
Industry, Segment and Geographic Financial Information
 6 Months Ended
Jun. 30, 2019
Industry, Segment and Geographic Financial Information  
Industry, Segment and Geographic Financial 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 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)

 

 

Six months ended June 30,

 

Three months ended June 30,

 

 

2019

  

2018

  

2019

  

2018

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

87,376

 

$

75,162

 

$

47,320

 

$

38,324

TechXtend

 

 

8,158

 

 

9,304

 

 

3,356

 

 

5,590

 

 

 

95,534

 

 

84,466

 

 

50,676

 

 

43,914

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

13,322

 

$

11,460

 

$

7,124

 

$

5,275

TechXtend

 

 

1,731

 

 

1,933

 

 

695

 

 

1,223

 

 

 

15,053

 

 

13,393

 

 

7,819

 

 

6,498

Direct Costs:

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

5,039

 

$

4,222

 

$

2,555

 

$

2,187

TechXtend

 

 

808

 

 

895

 

 

370

 

 

495

 

 

 

5,847

 

 

5,117

 

 

2,925

 

 

2,682

Segment Income Before Taxes: (1)

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

8,283

 

$

7,238

 

$

4,569

 

$

3,088

TechXtend

 

 

923

 

 

1,038

 

 

325

 

 

728

Segment Income Before Taxes

 

 

9,206

 

 

8,276

 

 

4,894

 

 

3,816

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

5,141

 

$

5,229

 

$

2,547

 

$

2,616

Separation expenses

 

 

100

 

 

2,446

 

 

100

 

 

2,446

Interest, net

 

 

298

 

 

449

 

 

129

 

 

210

Foreign currency transaction gain (loss)

 

 

91

 

 

(2)

 

 

29

 

 

(3)

Income (loss) before taxes

 

$

4,354

 

$

1,048

 

$

2,405

 

$

(1,039)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

    

(Unaudited)

    

 

    

 

 

As of

 

As of 

 

 

 

June 30,

 

December 31,

 

Selected Assets by Segment:

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

83,359

 

$

77,610

 

TechXtend

 

 

6,835

 

 

11,542

 

Segment Select Assets

 

 

90,194

 

 

89,152

 

Corporate Assets

 

 

15,470

 

 

18,819

 

Total Assets

 

$

105,664

 

$

107,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended

 

 

 

(Unaudited)

 

(Unaudited)

 

Disaggregation of Revenue:

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2019

 

2018

 

2019

 

2018

 

Lifeboat Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware, software and other products

 

$
78,660

 

$
67,596

 

$
42,807

 

$
35,173

 

Software - security & highly interdependent with support

 

 
3,494

 

 
3,249

 

 
1,656

 

 
1,163

 

Maintenance, support & other services

 

 
5,222

 

 
4,317

 

 
2,857

 

 
1,988

 

Net Sales

 

$
87,376

 

$
75,162

 

$
47,320

 

$
38,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TechXtend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware, software and other products

 

$
7,314

 

$

8,377

 

$
2,977

 

$

4,938

 

Software - security & highly interdependent with support

 

 
126

 

 

347

 

 
71

 

 

330

 

Maintenance, support & other services

 

 
718

 

 

580

 

 
308

 

 

322

 

Net Sales

 

$
8,158

 

$
9,304

 

$
3,356

 

$
5,590