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 September 30, 2016 Revenue, from external customers $ 4,163 $ 64,607 $ 39,366 $ — $ — $ 108,136 Inter-segment revenue 42 — 73 — (115 ) — Total revenue $ 4,205 $ 64,607 $ 39,439 $ — $ (115 ) $ 108,136 Gross margin, from external customers $ 3,691 $ 22,414 $ 17,437 $ — $ — $ 43,542 Inter-segment gross margin 13 (59 ) 46 — — — Total gross margin $ 3,704 $ 22,355 $ 17,483 $ — $ — $ 43,542 Gain on sale and exit of businesses $ — $ — $ — $ — $ — $ — Business reorganization expenses (recovery) $ (3 ) $ (1 ) $ 188 $ (1 ) $ — $ 183 EBITDA (loss) (a) $ 326 $ 275 $ (466 ) $ (415 ) $ — $ (280 ) Depreciation and amortization 12 457 253 79 — 801 Intercompany interest income (expense), net — — (48 ) 48 — — Interest income (expense), net — (101 ) (6 ) (2 ) — (109 ) Income (loss) from continuing operations before income taxes $ 314 $ (283 ) $ (773 ) $ (448 ) $ — $ (1,190 ) For The Nine Months Ended September 30, 2016 Revenue, from external customers $ 11,660 $ 177,717 $ 133,053 $ — $ — $ 322,430 Inter-segment revenue 21 (1 ) 220 — (240 ) — Total revenue $ 11,681 $ 177,716 $ 133,273 $ — $ (240 ) $ 322,430 Gross margin, from external customers $ 10,210 $ 63,601 $ 57,832 $ — $ — $ 131,643 Inter-segment gross margin (11 ) (182 ) 193 — — — Total gross margin $ 10,199 $ 63,419 $ 58,025 $ — $ — $ 131,643 Gain on sale and exit of businesses $ — $ — $ — $ — $ — $ — Business reorganization expenses (recovery) $ (41 ) $ 273 $ 781 $ (49 ) $ — $ 964 EBITDA (loss) (a) $ 313 $ (370 ) $ 761 $ (5,771 ) $ — $ (5,067 ) Depreciation and amortization 43 1,296 629 326 — 2,294 Intercompany interest income (expense), net — — (163 ) 163 — — Interest income (expense), net — (230 ) (28 ) (6 ) — (264 ) Income (loss) from continuing operations before income taxes $ 270 $ (1,896 ) $ (59 ) $ (5,940 ) $ — $ (7,625 ) As of September 30, 2016 Accounts receivable, net $ 2,937 $ 34,806 $ 27,187 $ — $ — $ 64,930 Long-lived assets, net of accumulated depreciation and amortization $ 8 $ 7,364 $ 1,431 $ 445 $ — $ 9,248 Total assets $ 5,383 $ 53,778 $ 42,978 $ 2,802 $ — $ 104,941 Hudson Americas Hudson Asia Pacific Hudson Europe Corporate Inter- segment elimination Total For The Three Months Ended September 30, 2015 Revenue, from external customers $ 3,735 $ 55,609 $ 50,684 $ — $ — $ 110,028 Inter-segment revenue — — 123 — (123 ) — Total revenue $ 3,735 $ 55,609 $ 50,807 $ — $ (123 ) $ 110,028 Gross margin, from external customers $ 3,176 $ 23,376 $ 18,593 $ — $ — $ 45,145 Inter-segment gross margin (3 ) (122 ) 125 — — — Total gross margin $ 3,173 $ 23,254 $ 18,718 $ — $ — $ 45,145 Gain on sale and exit of businesses $ (20 ) $ — $ (167 ) $ — $ — $ (187 ) Business reorganization expenses (recovery) $ 589 $ 336 $ 1,278 $ 61 $ — $ 2,264 EBITDA (loss) (a) $ (1,029 ) $ 1,680 $ (2,094 ) $ (1,186 ) $ — $ (2,629 ) Depreciation and amortization 383 333 171 68 — 955 Intercompany interest income (expense), net — — (125 ) 125 — — Interest income (expense), net — (68 ) (20 ) (5 ) — (93 ) Income (loss) from continuing operations before income taxes $ (1,412 ) $ 1,279 $ (2,410 ) $ (1,134 ) $ — $ (3,677 ) For The Nine Months Ended September 30, 2015 Revenue, from external customers $ 24,896 $ 166,123 $ 166,069 $ — $ — $ 357,088 Inter-segment revenue — — 369 — (369 ) — Total revenue $ 24,896 $ 166,123 $ 166,438 $ — $ (369 ) $ 357,088 Gross margin, from external customers $ 12,876 $ 68,073 $ 62,322 $ — $ — $ 143,271 Inter-segment gross margin (10 ) (361 ) 371 — — — Total gross margin $ 12,866 $ 67,712 $ 62,693 $ — $ — $ 143,271 Gain on sale and exit of businesses $ 15,918 $ — $ 3,900 $ — $ — $ 19,818 Business reorganization expenses (recovery) $ 1,006 $ 669 $ 2,678 $ 1,314 $ — $ 5,667 EBITDA (loss) (a) $ 12,788 $ 1,852 $ (798 ) $ (7,486 ) $ — $ 6,356 Depreciation and amortization 591 1,576 618 255 — 3,040 Intercompany interest income (expense), net — — (394 ) 394 — — Interest income (expense), net (346 ) (152 ) (35 ) (9 ) — (542 ) Income (loss) from continuing operations before income taxes $ 11,851 $ 124 $ (1,845 ) $ (7,356 ) $ — $ 2,774 As of September 30, 2015 Accounts receivable, net $ 3,876 $ 28,317 $ 33,528 $ — $ — $ 65,721 Long-lived assets, net of accumulated depreciation and amortization $ 64 $ 7,010 $ 1,969 $ 749 $ — $ 9,792 Total assets $ 8,128 $ 46,576 $ 55,587 $ 18,127 $ — $ 128,418 (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 nine months ended September 30, 2016 and 2015 and long-lived assets and net assets by geographic area as of September 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 September 30, 2016 Revenue (a) $ 27,010 $ 49,799 $ 3,921 $ 12,356 $ 14,808 $ 242 $ 108,136 For The Three Months Ended September 30, 2015 Revenue (a) $ 40,102 $ 40,075 $ 3,575 $ 10,582 $ 15,534 $ 160 $ 110,028 For The Nine Months Ended September 30, 2016 Revenue (a) $ 93,671 $ 136,813 $ 11,016 $ 39,382 $ 40,904 $ 644 $ 322,430 For The Nine Months Ended September 30, 2015 Revenue (a) $ 118,083 $ 120,457 $ 24,424 $ 47,986 $ 45,666 $ 472 $ 357,088 As of September 30, 2016 Long-lived assets, net of accumulated depreciation and amortization (b) $ 1,235 $ 4,457 $ 445 $ 196 $ 2,907 $ 8 $ 9,248 Net assets $ 11,962 $ 8,601 $ 2,954 $ 8,777 $ 12,464 $ (56 ) $ 44,702 As of September 30, 2015 Long-lived assets, net of accumulated depreciation and amortization (b) $ 1,866 $ 4,123 $ 821 $ 95 $ 2,887 $ — $ 9,792 Net assets $ 15,421 $ 9,012 $ 17,003 $ 9,067 $ 13,554 $ 8 $ 64,065 (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. |