Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Segments

v3.23.2
Note 15 - Segments
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15.

Segments

 ​

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

 ​

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.

 ​

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.

 ​

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.

 ​

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

    

Six Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

    

June 30,

    

June 30,

  
   

2023

    

2022

    

2023

    

2022

  

Net sales

                                

Work Truck Attachments

   $ 141,221     $ 130,364     $ 160,467     $ 176,140  

Work Truck Solutions

     66,046       57,197       129,345       114,022  
    $ 207,267     $ 187,561     $ 289,812     $ 290,162  

Adjusted EBITDA

                                

Work Truck Attachments

   $ 42,296     $ 33,589     $ 32,065     $ 36,633  

Work Truck Solutions

     965       513       3,822       2,105  
    $ 43,261     $ 34,102     $ 35,887     $ 38,738  

Depreciation and amortization expense

                                

Work Truck Attachments

   $ 3,403     $ 3,201     $ 6,741     $ 6,390  

Work Truck Solutions

     2,039       2,003       4,058       4,003  
    $ 5,442     $ 5,204     $ 10,799     $ 10,393  

Assets

                                

Work Truck Attachments

   $ 439,940     $ 421,310                  

Work Truck Solutions

     201,260       192,174                  
    $ 641,200     $ 613,484                  

Capital Expenditures

                                

Work Truck Attachments

   $ 1,933     $ 2,928     $ 2,865     $ 4,066  

Work Truck Solutions

     836       363       1,372       581  
    $ 2,769     $ 3,291     $ 4,237     $ 4,647  

 ​

Adjusted EBITDA

                                

Work Truck Attachments

   $ 42,296     $ 33,589     $ 32,065     $ 36,633  

Work Truck Solutions

     965       513       3,822       2,105  

Total Adjusted EBITDA

   $ 43,261     $ 34,102     $ 35,887     $ 38,738  

Less items to reconcile Adjusted EBITDA to Income before taxes:

                                

Interest expense - net

     3,736       2,473       6,600       4,586  

Depreciation expense

     2,812       2,574       5,539       5,133  

Amortization

     2,630       2,630       5,260       5,260  

Stock based compensation

     3,279       3,153       4,236       5,053  

Other charges (1)

     68       182       142       541  

Income before taxes

   $ 30,736     $ 23,090     $ 14,110     $ 18,165  

 

 

(1)

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

 ​