Quarterly report [Sections 13 or 15(d)]

Note 15 - Segments

v3.25.2
Note 15 - Segments
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15.

Segments

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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 Executive 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 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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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.

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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,

  
   

2025

    

2024

    

2025

    

2024

  

Net sales

                                

Work Truck Attachments

   $ 108,114     $ 118,137     $ 144,571     $ 141,977  

Work Truck Solutions

     86,213       81,765       164,823       153,580  
    $ 194,327     $ 199,902     $ 309,394     $ 295,557  

Selling, general and administrative expense

                                

Work Truck Attachments

   $ 11,412     $ 13,529     $ 23,842     $ 25,191  

Work Truck Solutions

     10,339       9,841       21,296       19,667  
    $ 21,751     $ 23,370     $ 45,138     $ 44,858  

Other segment items (1)

                                

Work Truck Attachments

   $ 65,132     $ 68,816     $ 88,832     $ 85,462  

Work Truck Solutions

     64,827       64,021       123,376       120,008  
    $ 129,959     $ 132,837     $ 212,208     $ 205,470  

Adjusted EBITDA

                                

Work Truck Attachments

   $ 31,570     $ 35,792     $ 31,897     $ 31,324  

Work Truck Solutions

     11,047       7,903       20,151       13,905  
    $ 42,617     $ 43,695     $ 52,048     $ 45,229  

Depreciation and amortization expense

                                

Work Truck Attachments

   $ 1,919     $ 2,363     $ 3,869     $ 5,710  

Work Truck Solutions

     1,907       2,044       3,780       4,042  
    $ 3,826     $ 4,407     $ 7,649     $ 9,752  

Assets

                                

Work Truck Attachments

   $ 409,235     $ 413,752                  

Work Truck Solutions

     262,236       203,215                  
    $ 671,471     $ 616,967                  

Capital Expenditures

                                

Work Truck Attachments

   $ 2,121     $ 459     $ 3,216     $ 1,134  

Work Truck Solutions

     1,064       1,212       1,722       1,311  
    $ 3,185     $ 1,671     $ 4,938     $ 2,445  

 

Adjusted EBITDA

                                

Work Truck Attachments

   $ 31,570     $ 35,792     $ 31,897     $ 31,324  

Work Truck Solutions

     11,047       7,903       20,151       13,905  

Total Adjusted EBITDA

   $ 42,617     $ 43,695     $ 52,048     $ 45,229  

Less items to reconcile Adjusted EBITDA to income before taxes:

                                

Interest expense - net

     2,973       4,123       5,357       7,647  

Depreciation expense

     2,276       2,777       4,549       5,492  

Amortization

     1,550       1,630       3,100       4,260  

Stock based compensation

     1,554       2,478       3,704       2,833  

Impairment charges (2)

     -       -       -       1,224  

Debt modification expense

     -       -       176       -  

Loss on extinguishment of debt

     -       -       156       -  

Other charges (3)

     119       560       371       1,589  

Income before taxes

   $ 34,145     $ 32,127     $ 34,635     $ 22,184  

  

  (1) Includes cost of sales, other (income) expense, and the addback of depreciation expense, stock based compensation, impairment charges, and unrelated legal, severance, restructuring, and consulting fees, and write downs of property, plant and equipment for the periods presented.
  (2) Reflects impairment charges taken on certain internally developed software in the six months ended June 30, 2024. 
 

(3)

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

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