Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Segments

v3.23.1
Note 15 - Segments
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15.

Segments

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The Company’s two reportable business segments are as follows: 

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Work Truck Attachments.  The Work Truck Attachments segment includes commercial snow and ice management attachments sold under the FISHER®, WESTERN® and SNOWEX® brands, as well as our vertically integrated products.  This segment consists of our operations that manufacture and sell snow and ice control 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.

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Separate financial information is available for the two reportable segments. In addition, segment results include an allocation of all corporate costs to Work Truck Attachments and Work Truck Solutions.

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Segment performance is evaluated based on segment net sales and Adjusted EBITDA. Segment results include an allocation of all corporate costs. 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.

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All intersegment sales are eliminated in consolidation. 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:

 

   

Three Months Ended

    

Three Months Ended

  
   

March 31,

    

March 31,

  
   

2023

    

2022

  

Net sales

                

Work Truck Attachments

   $ 19,246     $ 45,776  

Work Truck Solutions

     63,299       56,825  
    $ 82,545     $ 102,601  

Adjusted EBITDA

                

Work Truck Attachments

   $ (10,231 )   $ 3,044  

Work Truck Solutions

     2,857       1,592  
    $ (7,374 )   $ 4,636  

Depreciation and amortization expense

                

Work Truck Attachments

   $ 3,338     $ 3,189  

Work Truck Solutions

     2,019       2,000  
    $ 5,357     $ 5,189  

Assets

                

Work Truck Attachments

   $ 387,909     $ 357,438  

Work Truck Solutions

     197,379       193,022  
    $ 585,288     $ 550,460  

Capital Expenditures

                

Work Truck Attachments

   $ 932     $ 1,138  

Work Truck Solutions

     536       218  
    $ 1,468     $ 1,356  

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Adjusted EBITDA

                

Work Truck Attachments

   $ (10,231 )   $ 3,044  

Work Truck Solutions

     2,857       1,592  

Total Adjusted EBITDA

   $ (7,374 )   $ 4,636  

Less items to reconcile Adjusted EBITDA to Loss before taxes:

                

Interest expense - net

     2,864       2,113  

Depreciation expense

     2,727       2,559  

Amortization

     2,630       2,630  

Stock based compensation

     957       1,900  

Other charges (1)

     74       359  

Loss before taxes

   $ (16,626 )   $ (4,925 )

 

 

(1)

Reflects unrelated legal, severance, restructuring, consulting fees, and incremental costs incurred related to the COVID-19 pandemic for the periods presented.

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