Annual report [Section 13 and 15(d), not S-K Item 405]

Note 16 - Segments

v3.25.0.1
Note 16 - Segments
 12 Months Ended
Dec. 31, 2024
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 chief operating decision maker is its Chief Operating Officer. The chief operating decision maker assesses performance for the Work Truck Attachments and Work Truck Solutions segments and decides how to allocate resources based on Adjusted EBITDA. The chief operating decision maker uses Adjusted EBITDA to evaluate profit generated by the segments in deciding where to reinvest profits, whether it be within the segments or for other purposes such as paying dividends, repurchasing stock, or other general corporate uses. The chief operating decision maker also uses segment Adjusted EBITDA as a metric in benchmarking performance against competitors, as well as in evaluating the compensation of certain employees. 

 

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 its 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:

 

   

2024

    

2023

    

2022

  
                         

Net sales

                        

Work Truck Attachments

   $ 256,010     $ 291,723     $ 382,296  

Work Truck Solutions

     312,494       276,455       233,772  
    $ 568,504     $ 568,178     $ 616,068  

Selling, general and administrative expense

                        

Work Truck Attachments

   $ 53,124     $ 43,176     $ 50,583  

Work Truck Solutions

     38,558       35,665       31,600  
    $ 91,682     $ 78,841     $ 82,183  

Other segment items (1)

                        

Work Truck Attachments

   $ 154,431     $ 197,984     $ 253,502  

Work Truck Solutions

     243,042       223,231       193,603  
    $ 397,473     $ 421,215     $ 447,105  

Adjusted EBITDA

                        

Work Truck Attachments

   $ 48,455     $ 50,563     $ 78,211  

Work Truck Solutions

     30,894       17,559       8,569  
    $ 79,349     $ 68,122     $ 86,780  

Depreciation and amortization expense

                        

Work Truck Attachments

   $ 9,844     $ 13,431     $ 12,901  

Work Truck Solutions

     8,046       8,231       8,037  
    $ 17,890     $ 21,662     $ 20,938  

Assets

                        

Work Truck Attachments

   $ 367,979     $ 392,920     $ 397,557  

Work Truck Solutions

     222,004       200,498       199,334  
    $ 589,983     $ 593,418     $ 596,891  

Capital expenditures

                        

Work Truck Attachments

   $ 5,493     $ 6,459     $ 9,526  

Work Truck Solutions

     2,271       3,307       2,876  
    $ 7,764     $ 9,766     $ 12,402  

 

Adjusted EBITDA

                        

Work Truck Attachments

   $ 48,455     $ 50,563     $ 78,211  

Work Truck Solutions

     30,894       17,559       8,569  

Total Adjusted EBITDA

   $ 79,349     $ 68,122     $ 86,780  

Less items to reconcile Adjusted EBITDA to Income before taxes:

                        

Interest expense - net

     15,260       15,675       11,253  

Depreciation expense

     10,370       11,142       10,418  

Amortization

     7,520       10,520       10,520  

Gain on sale leaseback transaction

     (42,298 )     -       -  

Stock based compensation

     4,860       953       6,730  

Restructuring and severance costs

     1,997       -       -  

Impairment charges (2)

     1,224       -       -  

Sale leaseback transaction fees

     5,257       -       -  

Other charges (3)

     1,268       598       498  

Income before taxes

   $ 73,891     $ 29,234     $ 47,361  

 

(1)

 Includes cost of sales, other (income) expense, and the addback of depreciation expense, stock based compensation, impairment charges, gain on sale leaseback transaction, CEO transition fees, and unrelated legal, severance, restructuring, and consulting fees for the periods presented.

 

(2)

 Reflects impairment charges taken on certain internally developed software in the year ended December 31, 2024. 

 

(3)

 Reflects unrelated legal and consulting fees, insurance proceeds, CEO transition costs, and, in 2022, incremental costs incurred related to the COVID-19 pandemic for the periods presented.