Annual report pursuant to Section 13 and 15(d)

Note 17 - Segments

v3.22.4
Note 17 - Segments
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

17. Segments

 

The Company operates through two operating segments for which separate financial information is available, and for which operating results are evaluated regularly by the Company's chief operating decision maker in determining resource allocation and assessing performance. The Company’s two current reportable business segments are described below. 

 

Work Truck Attachments.  The Work Truck Attachments segment includes the Company’s operations that manufacture and sell snow and ice control attachments and other products sold under the FISHER®, WESTERN®, and SNOWEX® brands, as well as our vertically integrated products.  

 

Work Truck Solutions.  The Work Truck Solutions segment includes manufactured municipal snow and ice control products under the HENDERSON® brand and the up-fit of market leading attachments and storage solutions under the HENDERSON® brand, and the DEJANA® brand and its related sub-brands.

 

Segment performance is evaluated based on segment net sales and Adjusted EBITDA. Separate financial information is available for the two operating segments. In addition, segment results include an allocation of all corporate costs to Work Truck Attachments and Work Truck Solutions. No single customer’s revenues amounted to 10% or more of the Company’s total revenue. Sales are primarily within the United States and substantially all assets are located within the United States.

 

Sales between Work Truck Attachments and Work Truck Solutions reflect the Company’s intercompany pricing policy. The following table shows summarized financial information concerning the Company’s reportable segments:

 

   

2022

   

2021

   

2020

 
                         

Net sales

                       

Work Truck Attachments

  $ 382,296     $ 325,707     $ 252,838  

Work Truck Solutions

    233,772       215,746       227,316  
    $ 616,068     $ 541,453     $ 480,154  

Adjusted EBITDA

                       

Work Truck Attachments

  $ 78,211     $ 77,369     $ 62,532  

Work Truck Solutions

    8,569       2,167       12,360  
    $ 86,780     $ 79,536     $ 74,892  

Depreciation and amortization expense

                       

Work Truck Attachments

  $ 12,901     $ 11,937     $ 10,824  

Work Truck Solutions

    8,037       8,379       8,913  
    $ 20,938     $ 20,316     $ 19,737  

Assets

                       

Work Truck Attachments

  $ 397,557     $ 384,566     $ 365,210  

Work Truck Solutions

    199,334       187,910       213,992  
    $ 596,891     $ 572,476     $ 579,202  

Capital expenditures

                       

Work Truck Attachments

  $ 9,526     $ 10,434     $ 13,174  

Work Truck Solutions

    2,876       1,447       1,508  
    $ 12,402     $ 11,881     $ 14,682  

 

Adjusted EBITDA

                       

Work Truck Attachments

  $ 78,211     $ 77,369     $ 62,532  

Work Truck Solutions

    8,569       2,167       12,360  

Total Adjusted EBITDA

  $ 86,780     $ 79,536     $ 74,892  

Less items to reconcile Adjusted EBITDA to Income (Loss) before taxes:

                       

Interest expense - net

    11,253       11,839       20,238  

Depreciation expense

    10,418       9,634       8,806  

Amortization

    10,520       10,682       10,931  

Purchase accounting (1)

    -       -       (2,017 )

Stock based compensation

    6,730       5,794       2,830  

Impairment charges

    -       1,211       127,872  

Debt modification expense

    -       -       3,542  

Loss on extinguishment of debt

    -       4,936       -  

COVID-19 (2)

    48       82       1,391  

Other charges (3)

    450       770       128  

Income (Loss) before taxes

  $ 47,361     $ 34,588     $ (98,829 )

 

(1)

Reflects $17 in reversal of earnout compensation related to Henderson, and $2,000 in reversal of earnout compensation related to Dejana in the year ended December 31, 2020.

 

(2)

Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales.

 

(3)

Reflects expenses and accrual reversals for one time, unrelated legal, severance, restructuring and consulting fees for the periods presented.