Annual report pursuant to Section 13 and 15(d)

Note 16 - Segments

v3.24.0.1
Note 16 - Segments
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

16. 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:

 

   

2023

    

2022

    

2021

  
                         

Net sales

                        

Work Truck Attachments

   $ 291,723     $ 382,296     $ 325,707  

Work Truck Solutions

     276,455       233,772       215,746  
    $ 568,178     $ 616,068     $ 541,453  

Adjusted EBITDA

                        

Work Truck Attachments

   $ 50,563     $ 78,211     $ 77,369  

Work Truck Solutions

     17,559       8,569       2,167  
    $ 68,122     $ 86,780     $ 79,536  

Depreciation and amortization expense

                        

Work Truck Attachments

   $ 13,431     $ 12,901     $ 11,937  

Work Truck Solutions

     8,231       8,037       8,379  
    $ 21,662     $ 20,938     $ 20,316  

Assets

                        

Work Truck Attachments

   $ 392,920     $ 397,557     $ 384,566  

Work Truck Solutions

     200,498       199,334       187,910  
    $ 593,418     $ 596,891     $ 572,476  

Capital expenditures

                        

Work Truck Attachments

   $ 6,459     $ 9,526     $ 10,434  

Work Truck Solutions

     3,307       2,876       1,447  
    $ 9,766     $ 12,402     $ 11,881  

 

Adjusted EBITDA

                        

Work Truck Attachments

   $ 50,563     $ 78,211     $ 77,369  

Work Truck Solutions

     17,559       8,569       2,167  

Total Adjusted EBITDA

   $ 68,122     $ 86,780     $ 79,536  

Less items to reconcile Adjusted EBITDA to Income before taxes:

                        

Interest expense - net

     15,675       11,253       11,839  

Depreciation expense

     11,142       10,418       9,634  

Amortization

     10,520       10,520       10,682  

Stock based compensation

     953       6,730       5,794  

Impairment charges

     -       -       1,211  

Loss on extinguishment of debt

     -       -       4,936  

Other charges (1)

     598       498       852  

Income before taxes

   $ 29,234     $ 47,361     $ 34,588  

 

(1)

 Reflects unrelated legal, severance, restructuring, and consulting fees, and, in 2021 and 2022, incremental costs incurred related to the COVID-19 pandemic for the periods presented.