Segment Reporting | Note 11. Segment Reporting We have two geographic areas that include four operating segments; the Asia-Pacific area, consisting of the leasing operations of Royal Wolf, and, as discussed above, North America, consisting of the combined leasing operations of Pac-Van and Lone Star, and the manufacturing operations of Southern Frac. Discrete financial data on each of the Company’s products is not available and it would be impractical to collect and maintain financial data in such a manner. In managing the Company’s business, senior management focuses on primarily growing its leasing revenues and operating cash flow (EBITDA), and investing in its lease fleet through capital purchases and acquisitions. Transactions between reportable segments included in the tables below are recorded on an arms-length basis at market in conformity with U.S. GAAP and the Company’s significant accounting policies (see Note 2). The tables below represent the Company’s revenues from external customers, share-based compensation expense, depreciation and amortization, operating income, interest income and expense, expenditures for additions to long-lived assets (consisting of lease fleet and property, plant and equipment), long-lived assets and goodwill; as attributed to its geographic and operating segments (in thousands): Quarter Ended March 31, 2016 North America Leasing Pac-Van Lone Combined Manufacturing Corporate Total Asia – Pacific Consolidated Revenues: Sales $ 12,411 $ — $ 12,411 $ 1,652 $ (422 ) $ 13,641 $ 10,970 $ 24,611 Leasing 22,517 5,533 28,050 — (33 ) 28,017 13,841 41,858 $ 34,928 $ 5,533 $ 40,461 $ 1,652 $ (455 ) $ 41,658 $ 24,811 $ 66,469 Share-based compensation $ 89 $ 10 $ 99 $ 27 $ 357 $ 483 $ 286 $ 769 Impairment of goodwill $ — $ — $ — $ 2,681 $ — $ 2,681 $ — $ 2,681 Depreciation and amortization $ 3,516 $ 2,611 $ 6,127 $ 263 $ (187 ) $ 6,203 $ 3,584 $ 9,787 Operating income (loss) $ 3,823 $ (630 ) $ 3,193 $ (3,663 ) $ (1,230 ) $ (1,700 ) $ 2,653 $ 953 Interest income $ — $ — $ — $ — $ — $ — $ 35 $ 35 Interest expense $ 1,510 $ 375 $ 1,885 $ 90 $ 1,825 $ 3,800 $ 1,038 $ 4,838 Nine Months Ended March 31, 2016 North America Leasing Pac-Van Lone Star Combined Manufacturing Corporate Total Asia – Pacific Consolidated Revenues: Sales $ 35,430 $ — $ 35,430 $ 6,434 $ (582 ) $ 41,282 $ 44,978 $ 86,260 Leasing 66,403 19,212 85,615 — (99 ) 85,516 41,746 127,262 $ 101,833 $ 19,212 $ 121,045 $ 6,434 $ (681 ) $ 126,798 $ 86,724 $ 213,522 Impairment of goodwill $ — $ — $ — $ 2,681 $ — $ 2,681 $ — $ 2,681 Share-based compensation $ 288 $ 30 $ 318 $ 101 $ 1,040 $ 1,459 $ 663 $ 2,122 Depreciation and amortization $ 9,866 $ 7,910 $ 17,776 $ 789 $ (559 ) $ 18,006 $ 10,503 $ 28,509 Operating income (loss) $ 14,116 $ (134 ) $ 13,982 $ (6,161 ) $ (3,655 ) $ 4,166 $ 9,474 $ 13,640 Interest income $ — $ — $ — $ — $ 1 $ 1 $ 71 $ 72 Interest expense $ 4,250 $ 1,155 $ 5,405 $ 218 $ 5,667 $ 11,290 $ 3,528 $ 14,818 Additions to long-lived assets $ 25,771 $ 245 $ 26,016 $ 182 $ 2 $ 26,200 $ 17,746 $ 43,946 At March 31, 2016 Long-lived assets $ 236,129 $ 60,156 $ 296,285 $ 3,517 $ (11,063 ) $ 288,739 $ 162,055 $ 450,794 Goodwill $ 54,058 $ 20,782 $ 74,840 $ — $ — $ 74,840 $ 27,492 $ 102,332 At June 30, 2015 Long-lived assets $ 222,445 $ 65,099 $ 287,544 $ 3,944 $ (11,624 ) $ 279,864 $ 170,573 $ 450,437 Goodwill $ 48,484 $ 20,782 $ 69,266 $ 2,681 $ — $ 71,947 $ 27,397 $ 99,344 Quarter Ended March 31, 2015 North America Leasing Pac-Van Lone Star Combined Manufacturing Corporate Total Asia – Pacific Consolidated Revenues: Sales $ 7,760 $ 25 $ 7,785 $ 4,916 $ (1,464 ) $ 11,237 $ 12,138 $ 23,375 Leasing 20,330 9,362 29,692 — (33 ) 29,659 16,352 46,011 $ 28,090 $ 9,387 $ 37,477 $ 4,916 $ (1,497 ) $ 40,896 $ 28,490 $ 69,386 Share-based compensation $ 69 $ 2 $ 71 $ 28 $ 187 $ 286 $ 254 $ 540 Depreciation and amortization $ 2,949 $ 2,806 $ 5,755 $ 266 $ (184 ) $ 5,837 $ 3,845 $ 9,682 Operating income (loss) $ 3,906 $ (1,045 ) $ 2,861 $ 123 $ (1,485 ) $ 1,499 $ 5,028 $ 6,527 Interest income $ — $ — $ — $ — $ — $ — $ 28 $ 28 Interest expense $ 1,135 $ 585 $ 1,720 $ 70 $ 2,058 $ 3,848 $ 1,331 $ 5,179 Nine Months Ended March 31, 2015 North America Leasing Pac-Van Lone Star Combined Manufacturing Corporate Total Asia – Pacific Consolidated Revenues: Sales $ 26,268 $ 25 $ 26,293 $ 32,824 $ (20,293 ) $ 38,824 $ 41,033 $ 79,857 Leasing 60,736 44,487 105,223 — (55 ) 105,168 53,510 158,678 $ 87,004 $ 44,512 $ 131,516 $ 32,824 $ (20,348 ) $ 143,992 $ 94,543 $ 238,535 Share-based compensation $ 219 $ 7 $ 226 $ 84 $ 526 $ 836 $ 618 $ 1,454 Depreciation and amortization $ 8,103 $ 8,502 $ 16,605 $ 810 $ (492 ) $ 16,923 $ 11,829 $ 28,752 Operating income $ 15,209 $ 10,613 $ 25,822 $ 5,453 $ (7,676 ) $ 23,599 $ 16,109 $ 39,708 Interest income $ — $ — $ — $ — $ — $ — $ 52 $ 52 Interest expense $ 2,945 $ 1,998 $ 4,943 $ 243 $ 6,372 $ 11,558 $ 4,448 $ 16,006 Additions to long-lived assets $ 36,005 $ 18,529 $ 54,534 $ 371 $ (5,071 ) $ 49,834 $ 34,017 $ 83,851 Intersegment net revenues related to sales of primarily portable liquid storage containers from Southern Frac to the North American leasing operations totaled and $1,464,000 and $20,293,000 during the quarter ended March 31, 2015 and FY 2015 and $422,000 and $582,000 during the quarter ended March 31, 2016 and FY 2016, respectively. |