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 North America, consisting of the combined leasing operations of Pac-Van 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, 2017 North America Leasing Pac-Van Lone Star Combined Manufacturing Corporate Total Asia – Pacific Consolidated Revenues: Sales $ 11,721 $ — $ 11,721 $ 1,677 $ (645 ) $ 12,753 $ 11,836 $ 24,589 Leasing 24,411 4,624 29,035 — (50 ) 28,985 14,890 43,875 $ 36,132 $ 4,624 $ 40,756 $ 1,677 $ (695 ) $ 41,738 $ 26,726 $ 68,464 Share-based compensation $ 87 $ 11 $ 98 $ 4 $ 235 $ 337 $ 314 $ 651 Depreciation and amortization $ 3,347 $ 2,411 $ 5,758 $ 198 $ (180 ) $ 5,776 $ 4,268 $ 10,044 Operating income $ 4,165 $ (1,086 ) $ 3,079 $ (496 ) $ (1,085 ) $ 1,498 $ 2,112 $ 3,610 Interest income $ — $ — $ — $ — $ 7 $ 7 $ 11 $ 18 Interest expense $ 1,870 $ 349 $ 2,219 $ 99 $ 1,815 $ 4,133 $ 1,116 $ 5,249 Nine Months Ended March 31, 2017 North America Leasing Pac-Van Lone Star Combined Manufacturing Corporate Total Asia – Pacific Consolidated Revenues: Sales $ 33,932 $ — $ 33,932 $ 5,261 $ (1,472 ) $ 37,721 $ 35,384 $ 73,105 Leasing 72,517 12,620 85,137 — (146 ) 84,991 45,493 130,484 $ 106,449 $ 12,620 $ 119,069 $ 5,261 $ (1,618 ) $ 122,712 $ 80,877 $ 203,589 Share-based compensation $ 234 $ 31 $ 265 $ 48 $ 737 $ 1,050 $ (208 ) $ 842 Depreciation and amortization $ 10,232 $ 7,258 $ 17,490 $ 594 $ (547 ) $ 17,537 $ 12,294 $ 29,831 Operating income $ 14,412 $ (3,763 ) $ 10,649 $ (1,847 ) $ (3,363 ) $ 5,439 $ 8,931 $ 14,370 Interest income $ — $ — $ — $ — $ 16 $ 16 $ 38 $ 54 Interest expense $ 5,240 $ 924 $ 6,164 $ 274 $ 5,443 $ 11,881 $ 3,215 $ 15,096 Additions to long-lived assets $ 19,327 $ 47 $ 19,374 $ — $ (180 ) $ 19,194 $ 18,342 $ 37,536 At March 31 31, 2017 Long-lived assets $ 243,605 $ 53,770 $ 297,375 $ 2,724 $ (10,641 ) $ 289,458 $ 161,013 $ 450,471 Goodwill $ 55,849 $ 20,782 $ 76,631 $ — $ — $ 76,631 $ 28,348 $ 104,979 At June 30, 2016 Long-lived assets $ 239,459 $ 58,492 $ 297,951 $ 3,318 $ (10,975 ) $ 290,294 $ 156,002 $ 446,296 Goodwill $ 55,122 $ 20,782 $ 75,904 $ — $ — $ 75,904 $ 26,642 $ 102,546 Quarter Ended March 31, 2016 North America Leasing Pac-Van Lone Star 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 $ 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 Share-based compensation $ 288 $ 30 $ 318 $ 101 $ 1,040 $ 1,459 $ 663 $ 2,122 Impairment of goodwill $ — $ — $ — $ 2,681 $ — $ 2,681 $ — $ 2,681 Depreciation and amortization $ 9,866 $ 7,910 $ 17,776 $ 789 $ (559 ) $ 18,006 $ 10,503 $ 28,509 Operating income $ 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 Intersegment net revenues related to the sales of primarily portable liquid storage containers from Southern Frac to the North American leasing operations totaled and $422,000 and $582,000 during the quarter ended March 31, 2016 and FY 2016, and $645,000 and $1,472,000 during the quarter ended March 31, 2017 and FY 2017, respectively. |