Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Segments

v3.24.2
Note 15 - Segments
 6 Months Ended
Jun. 30, 2024
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

    

Six Months Ended

    

Six Months Ended

  
   

June 30,

    

June 30,

    

June 30,

    

June 30,

  
   

2024

    

2023

    

2024

    

2023

  

Net sales

                                

Work Truck Attachments

   $ 118,137     $ 141,221     $ 141,977     $ 160,467  

Work Truck Solutions

     81,765       66,046       153,580       129,345  
    $ 199,902     $ 207,267     $ 295,557     $ 289,812  

Adjusted EBITDA

                                

Work Truck Attachments

   $ 35,792     $ 42,296     $ 31,324     $ 32,065  

Work Truck Solutions

     7,903       965       13,905       3,822  
    $ 43,695     $ 43,261     $ 45,229     $ 35,887  

Depreciation and amortization expense

                                

Work Truck Attachments

   $ 2,363     $ 3,403     $ 5,710     $ 6,741  

Work Truck Solutions

     2,044       2,039       4,042       4,058  
    $ 4,407     $ 5,442     $ 9,752     $ 10,799  

Assets

                                

Work Truck Attachments

   $ 413,752     $ 439,940                  

Work Truck Solutions

     203,215       201,260                  
    $ 616,967     $ 641,200                  

Capital Expenditures

                                

Work Truck Attachments

   $ 459     $ 1,933     $ 1,134     $ 2,865  

Work Truck Solutions

     1,212       836       1,311       1,372  
    $ 1,671     $ 2,769     $ 2,445     $ 4,237  

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Adjusted EBITDA

                                

Work Truck Attachments

   $ 35,792     $ 42,296     $ 31,324     $ 32,065  

Work Truck Solutions

     7,903       965       13,905       3,822  

Total Adjusted EBITDA

   $ 43,695     $ 43,261     $ 45,229     $ 35,887  

Less items to reconcile Adjusted EBITDA to Income before taxes:

                                

Interest expense - net

     4,123       3,736       7,647       6,600  

Depreciation expense

     2,777       2,812       5,492       5,539  

Amortization

     1,630       2,630       4,260       5,260  

Stock based compensation

     2,478       3,279       2,833       4,236  

Impairment charges (1)

     -       -       1,224       -  

Other charges (2)

     560       68       1,589       142  

Income before taxes

   $ 32,127     $ 30,736     $ 22,184     $ 14,110  

 

  (1) Reflects impairment charges taken on certain internally developed software in the six months ended June 30, 2024. 
 

(2)

Reflects unrelated legal, severance, restructuring, and consulting fees, and a write down of property, plant and equipment for the periods presented.

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