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

Note 16 - Segments

v3.25.4
Note 16 - Segments
12 Months Ended
Dec. 31, 2025
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 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 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, and truck-mounted service cranes and dump hoists under the VENCO® and VENTURO® brands.  

 

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:

 

   

2025

   

2024

   

2023

 
                         

Net sales

                       

Work Truck Attachments

  $ 295,726     $ 256,010     $ 291,723  

Work Truck Solutions

    360,327       312,494       276,455  
    $ 656,053     $ 568,504     $ 568,178  

Selling, general and administrative expense

                       

Work Truck Attachments

  $ 51,353     $ 53,124     $ 43,176  

Work Truck Solutions

    43,538       38,558       35,665  
    $ 94,891     $ 91,682     $ 78,841  

Other segment items (1)

                       

Work Truck Attachments

  $ 188,164     $ 154,431     $ 197,984  

Work Truck Solutions

    275,091       243,042       223,231  
    $ 463,255     $ 397,473     $ 421,215  

Adjusted EBITDA

                       

Work Truck Attachments

  $ 56,209     $ 48,455     $ 50,563  

Work Truck Solutions

    41,698       30,894       17,559  
    $ 97,907     $ 79,349     $ 68,122  

Depreciation and amortization expense

                       

Work Truck Attachments

  $ 7,701     $ 9,844     $ 13,431  

Work Truck Solutions

    7,658       8,046       8,231  
    $ 15,359     $ 17,890     $ 21,662  

Assets

                       

Work Truck Attachments

  $ 388,094     $ 367,979     $ 392,920  

Work Truck Solutions

    238,607       222,004       200,498  
    $ 626,701     $ 589,983     $ 593,418  

Capital expenditures

                       

Work Truck Attachments

  $ 6,861     $ 5,493     $ 6,459  

Work Truck Solutions

    3,967       2,271       3,307  
    $ 10,828     $ 7,764     $ 9,766  

 

Adjusted EBITDA

                       

Work Truck Attachments

  $ 56,209     $ 48,455     $ 50,563  

Work Truck Solutions

    41,698       30,894       17,559  

Total Adjusted EBITDA

  $ 97,907     $ 79,349     $ 68,122  

Less items to reconcile Adjusted EBITDA to Income before taxes:

                       

Interest expense - net

    12,114       15,260       15,675  

Depreciation expense

    9,178       10,370       11,142  

Amortization

    6,181       7,520       10,520  

Gain on sale leaseback transaction

    -       (42,298 )     -  

Stock based compensation

    6,722       4,860       953  

Restructuring and severance costs

    -       1,997       -  

Impairment charges (2)

    -       1,224       -  

Debt modification expense

    176       -       -  

Loss on extinguishment of debt

    156       -       -  

Sale leaseback transaction fees

    -       5,257       -  

Other charges (3)

    1,874       1,268       598  

Income before taxes

  $ 61,506     $ 73,891     $ 29,234  

 

(1)

Includes cost of sales, other (income) expense, and the addback of depreciation expense, stock based compensation, impairment charges, gain on sale leaseback transaction, debt modification expense, loss on extinguishment of debt, CEO transition fees, write downs of property, plant and equipment, inventory step up related to Venco Venturo, 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, severance and consulting fees, acquisition costs, insurance proceeds, CEO transition costs, and write downs of property, plant and equipment for the periods presented. Reflects $20 in inventory step up related to Venco Venturo included in cost of sales in the year ended December 31, 2025.