SEGMENT AND GEOGRAPHIC DATA | SEGMENT AND GEOGRAPHIC DATA Segment Reporting The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, the majority of which are attributable to and have been allocated to the reportable segments. Segment information is presented in accordance with ASC 280, " Segments Reporting." This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes. Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Elimination Total For The Three Months Ended June 30, 2016 Revenue, from external customers $ 3,661 $ 62,039 $ 47,367 $ — $ — $ 113,067 Inter-segment revenue (22 ) (1 ) 86 — (63 ) — Total revenue $ 3,639 $ 62,038 $ 47,453 $ — $ (63 ) $ 113,067 Gross margin, from external customers $ 3,180 $ 22,416 $ 21,243 $ — $ — $ 46,839 Inter-segment gross margin (25 ) (62 ) 87 — — — Total gross margin $ 3,155 $ 22,354 $ 21,330 $ — $ — $ 46,839 Business reorganization expenses (recovery) $ (22 ) $ 77 $ 109 $ (20 ) $ — $ 144 EBITDA (loss) (a) $ (178 ) $ 575 $ 1,553 $ (3,583 ) $ — $ (1,633 ) Depreciation and amortization 8 435 193 169 — 805 Intercompany interest income (expense), net — — (58 ) 58 — — Interest income (expense), net — (88 ) (9 ) (4 ) — (101 ) Income (loss) from continuing operations before income taxes $ (186 ) $ 52 $ 1,293 $ (3,698 ) $ — $ (2,539 ) For The Six Months Ended June 30, 2016 Revenue, from external customers $ 7,498 $ 113,110 $ 93,686 $ — $ — $ 214,294 Inter-segment revenue (22 ) — 147 — (125 ) — Total revenue $ 7,476 $ 113,110 $ 93,833 $ — $ (125 ) $ 214,294 Gross margin, from external customers $ 6,520 $ 41,187 $ 40,394 $ — $ — $ 88,101 Inter-segment gross margin (25 ) (121 ) 146 — — — Total gross margin $ 6,495 $ 41,066 $ 40,540 $ — $ — $ 88,101 Gain on sale and exit of businesses $ — $ — $ — $ — $ — $ — Business reorganization expenses (recovery) $ (38 ) $ 274 $ 593 $ (48 ) $ — $ 781 EBITDA (loss) (a) $ (15 ) $ (656 ) $ 1,223 $ (5,339 ) $ — $ (4,787 ) Depreciation and amortization 31 838 376 248 — 1,493 Intercompany interest income (expense), net — — (115 ) 115 — — Interest income (expense), net — (128 ) (23 ) (4 ) — (155 ) Income (loss) from continuing operations before income taxes $ (46 ) $ (1,622 ) $ 709 $ (5,476 ) $ — $ (6,435 ) As of June 30, 2016 Accounts receivable, net $ 2,637 $ 35,272 $ 29,459 $ — $ — $ 67,368 Long-lived assets, net of accumulated depreciation and amortization $ 20 $ 7,323 $ 1,506 $ 516 $ — $ 9,365 Total assets $ 5,793 $ 55,990 $ 51,663 $ 2,482 $ — $ 115,928 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- segment elimination Total For The Three Months Ended June 30, 2015 Revenue, from external customers $ 10,183 $ 57,374 $ 55,186 $ — $ — $ 122,743 Inter-segment revenue — — 231 — (231 ) — Total revenue $ 10,183 $ 57,374 $ 55,417 $ — $ (231 ) $ 122,743 Gross margin, from external customers $ 5,081 $ 23,819 $ 21,322 $ — $ — $ 50,222 Inter-segment gross margin (2 ) (207 ) 209 — — — Total gross margin $ 5,079 $ 23,612 $ 21,531 $ — $ — $ 50,222 Gain on sale and exit of businesses $ 15,938 $ — $ 4,067 $ — $ — $ 20,005 Business reorganization expenses (recovery) $ (5 ) $ 325 $ 520 $ 1,220 $ — $ 2,060 EBITDA (loss) (a) $ 15,444 $ (630 ) $ 3,449 $ (3,686 ) $ — $ 14,577 Depreciation and amortization 106 572 219 77 — 974 Intercompany interest income (expense), net — — (138 ) 134 4 — Interest income (expense), net (310 ) (42 ) (14 ) (3 ) — (369 ) Income (loss) from continuing operations before income taxes $ 15,028 $ (1,244 ) $ 3,078 $ (3,632 ) $ 4 $ 13,234 For The Six Months Ended June 30, 2015 Revenue, from external customers $ 21,161 $ 110,514 $ 115,385 $ — $ — $ 247,060 Inter-segment revenue — — 246 — (246 ) — Total revenue $ 21,161 $ 110,514 $ 115,631 $ — $ (246 ) $ 247,060 Gross margin, from external customers $ 9,702 $ 44,697 $ 43,727 $ — $ — $ 98,126 Inter-segment gross margin (9 ) (239 ) 248 — — — Total gross margin $ 9,693 $ 44,458 $ 43,975 $ — $ — $ 98,126 Gain on sale and exit of businesses $ 15,938 $ — $ 4,067 $ — $ — $ 20,005 Business reorganization expenses (recovery) $ 417 $ 333 $ 1,400 $ 1,253 $ — $ 3,403 EBITDA (loss) (a) $ 13,814 $ 173 $ 1,298 $ (6,300 ) $ — $ 8,985 Depreciation and amortization 208 1,243 446 188 — 2,085 Intercompany interest income (expense), net — — (268 ) 268 — — Interest income (expense), net (344 ) (83 ) (19 ) (3 ) — (449 ) Income (loss) from continuing operations before income taxes $ 13,262 $ (1,153 ) $ 565 $ (6,223 ) $ — $ 6,451 As of June 30, 2015 Accounts receivable, net $ 7,155 $ 30,383 $ 37,973 $ — $ — $ 75,511 Long-lived assets, net of accumulated depreciation and amortization $ 443 $ 7,090 $ 1,973 $ 755 $ — $ 10,261 Total assets $ 9,202 $ 49,717 $ 58,580 $ 19,751 $ — $ 137,250 (a) Securities and Exchange Commission ("SEC") Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability. Geographic Data Reporting A summary of revenues for the six months ended June 30, 2016 and 2015 and long-lived assets and net assets by geographic area as of June 30, 2016 and 2015 were as follows: United Kingdom Australia United States Continental Europe Other Asia Pacific Other Americas Total For The Three Months Ended June 30, 2016 Revenue (a) $ 32,464 $ 47,882 $ 3,462 $ 14,903 $ 14,157 $ 199 $ 113,067 For The Three Months Ended June 30, 2015 Revenue (a) $ 39,640 $ 41,340 $ 10,022 $ 15,547 $ 16,033 $ 161 $ 122,743 For The Six Months Ended June 30, 2016 Revenue (a) $ 66,661 $ 87,014 $ 7,096 $ 27,026 $ 26,095 $ 402 $ 214,294 For The Six Months Ended June 30, 2015 Revenue (a) $ 77,980 $ 80,381 $ 20,849 $ 37,405 $ 30,133 $ 312 $ 247,060 As of June 30, 2016 Long-lived assets, net of accumulated depreciation and amortization (b) $ 1,317 $ 4,268 $ 544 $ 180 $ 3,056 $ — $ 9,365 Net assets $ 14,221 $ 9,450 $ 2,037 $ 8,987 $ 14,141 $ (79 ) $ 48,757 As of June 30, 2015 Long-lived assets, net of accumulated depreciation and amortization (b) $ 1,874 $ 4,473 $ 1,191 $ 90 $ 2,617 $ 16 $ 10,261 Net assets $ 17,205 $ 11,309 $ 18,902 $ 9,079 $ 12,172 $ (52 ) $ 68,615 (a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary. (b) Comprised of property and equipment and goodwill. Corporate assets are included in the United States. |