Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v2.4.0.8
Industry, Segment and Geographic Information
9 Months Ended
Sep. 30, 2014
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,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

206,655

 

$

171,949

 

$

77,416

 

$

56,871

 

TechXtend

 

39,980

 

38,588

 

13,089

 

13,591

 

 

 

246,635

 

210,537

 

90,505

 

70,462

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

13,475

 

$

12,129

 

$

4,747

 

$

3,846

 

TechXtend

 

4,378

 

4,414

 

1,429

 

1,419

 

 

 

17,853

 

16,543

 

6,176

 

5,265

 

Direct Costs:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

4,044

 

$

3,445

 

$

1,565

 

$

1,095

 

TechXtend

 

2,409

 

2,390

 

815

 

735

 

 

 

6,453

 

5,835

 

2,380

 

1,830

 

Segment Income:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

9,431

 

$

8,684

 

$

3,182

 

$

2,751

 

TechXtend

 

1,969

 

2,024

 

614

 

684

 

Segment Income

 

11,400

 

10,708

 

3,796

 

3,435

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

5,840

 

$

5,376

 

$

1,911

 

$

1,650

 

Interest, net

 

375

 

416

 

121

 

140

 

Foreign currency translation (loss) gain

 

(8

)

10

 

(4

)

(11

)

Income before taxes

 

$

5,927

 

$

5,758

 

$

2,002

 

$

1,914

 

 

 

 

As of
September 30,
2014

 

Selected Assets By Segment:

 

 

 

Lifeboat Distribution

 

$

37,482 

 

TechXtend

 

35,487 

 

Segment Select Assets

 

72,969 

 

Corporate Assets

 

17,455 

 

Total Assets

 

$

90,424