Quarterly report [Sections 13 or 15(d)]

Note 15 - Segments

v3.26.1
Note 15 - Segments
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [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 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.

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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

  
   

March 31,

    

March 31,

  
   

2026

    

2025

  

Net sales

                

Work Truck Attachments

   $ 60,911     $ 36,457  

Work Truck Solutions

     76,886       78,610  
    $ 137,797     $ 115,067  

Selling, general and administrative expense

                

Work Truck Attachments

   $ 14,462     $ 12,430  

Work Truck Solutions

     11,879       10,957  
    $ 26,341     $ 23,387  

Other segment items (1)

                

Work Truck Attachments

   $ 38,786     $ 23,700  

Work Truck Solutions

     55,859       58,549  
    $ 94,645     $ 82,249  

Adjusted EBITDA

                

Work Truck Attachments

   $ 7,663     $ 327  

Work Truck Solutions

     9,148       9,104  
    $ 16,811     $ 9,431  

Depreciation and amortization expense

                

Work Truck Attachments

   $ 1,897     $ 1,950  

Work Truck Solutions

     1,959       1,873  
    $ 3,856     $ 3,823  

Assets

                

Work Truck Attachments

   $ 388,531     $ 364,562  

Work Truck Solutions

     241,760       256,478  
    $ 630,291     $ 621,040  

Capital Expenditures

                

Work Truck Attachments

   $ 2,235     $ 1,095  

Work Truck Solutions

     1,230       658  
    $ 3,465     $ 1,753  

 

Adjusted EBITDA

                

Work Truck Attachments

   $ 7,663     $ 327  

Work Truck Solutions

     9,148       9,104  

Total Adjusted EBITDA

   $ 16,811     $ 9,431  

Less items to reconcile Adjusted EBITDA to income before taxes:

                

Interest expense - net

     2,062       2,384  

Depreciation expense

     2,339       2,273  

Amortization

     1,517       1,550  

Stock based compensation

     2,537       2,150  

Debt modification expense

     -       176  

Loss on extinguishment of debt

     -       156  

Other charges (2)

     461       252  

Income before taxes

   $ 7,895     $ 490  

  

  (1) Includes cost of sales, other (income) expense, and the addback of depreciation expense, stock based compensation, unrelated legal, severance, restructuring and consulting fees for the periods presented.
 

(2)

 Reflects unrelated legal, severance, restructuring and consulting fees for the periods presented. Reflects $58 in inventory step up related to Venco Venturo included in cost of sales in the three months ended March 31, 2026. 

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