Annual report pursuant to Section 13 and 15(d)

Segments

v3.20.4
Segments
12 Months Ended
Dec. 31, 2020
Segments  
Segments

17. 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. During the first quarter of 2019, the Company reorganized its business segments to reflect a new operating structure as a result of a change in how the Company’s chief operating decision maker allocates resources, makes operating decisions and assesses the performance of the business. 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.  

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.

Beginning in 2018, 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:

2020

2019

2018

Net sales

Work Truck Attachments

$

252,838

$

293,630

$

275,244

Work Truck Solutions

227,316

278,080

248,823

$

480,154

$

571,710

$

524,067

Adjusted EBITDA

Work Truck Attachments

$

62,532

$

80,747

$

80,396

Work Truck Solutions

12,360

27,358

16,047

$

74,892

$

108,105

$

96,443

Depreciation and amortization expense

Work Truck Attachments

$

10,824

$

10,217

$

9,609

Work Truck Solutions

8,913

8,995

9,476

$

19,737

$

19,212

$

19,085

Assets

Work Truck Attachments

$

365,210

$

361,876

$

348,714

Work Truck Solutions

213,992

343,819

327,479

$

579,202

$

705,695

$

676,193

Capital expenditures

Work Truck Attachments

$

13,174

$

9,417

$

6,931

Work Truck Solutions

1,508

2,246

2,917

$

14,682

$

11,663

$

9,848

Adjusted EBITDA

Work Truck Attachments

$

62,532

$

80,747

$

80,396

Work Truck Solutions

12,360

27,358

16,047

Total Adjusted EBITDA

$

74,892

$

108,105

$

96,443

Less items to reconcile Adjusted EBITDA to Income (Loss) before taxes:

Interest expense - net

20,238

16,782

16,943

Depreciation expense

8,806

8,256

7,613

Amortization

10,931

10,956

11,472

Purchase accounting (1)

(2,017)

(417)

(900)

Stock based compensation

2,830

3,239

4,550

Impairment charges

127,872

-

-

Debt modification expense

3,542

-

-

Litigation proceeds

-

(200)

-

Pension termination

-

6,609

-

COVID-19 (2)

1,391

-

-

Other charges (3)

128

263

1,006

Income (Loss) before taxes

$

(98,829)

$

62,617

$

55,759

(1) Reflects $900 in reversal of earnout compensation related to Dejana in the year ended December 31, 2018. Reflects $217 in reversal of earnout compensation related to Henderson, and $200 in reversal of earnout compensation related to Dejana in the year ended December 31, 2019. Reflects $17 in reversal of earnout
compensation related to Henderson, and $2,000 in reversal of earnout compensation related to Dejana in the year ended December 31, 2020.
(2) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales.
(3) Reflects expenses and accrual reversals for one time, unrelated legal, severance and consulting fees and loss on disposal of fixed assets related to facility relocation for the periods presented.