Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Segments

v3.23.3
Note 15 - Segments
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15.

Segments

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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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Separate financial information is available for the two reportable segments. In addition, segment results include an allocation of all corporate costs to Work Truck Attachments and Work Truck Solutions.

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Segment performance is evaluated based on segment net sales and Adjusted EBITDA. Segment results include an allocation of all corporate costs. 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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All intersegment sales are eliminated in consolidation. 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

    

Nine Months Ended

    

Nine Months Ended

  
   

September 30,

    

September 30,

    

September 30,

    

September 30,

  
   

2023

    

2022

    

2023

    

2022

  

Net sales

                                

Work Truck Attachments

   $ 75,879     $ 108,235     $ 236,346     $ 284,375  

Work Truck Solutions

     68,242       57,865       197,587       171,887  
    $ 144,121     $ 166,100     $ 433,933     $ 456,262  

Adjusted EBITDA

                                

Work Truck Attachments

   $ 12,328     $ 22,929     $ 44,393     $ 59,562  

Work Truck Solutions

     4,985       2,202       8,807       4,307  
    $ 17,313     $ 25,131     $ 53,200     $ 63,869  

Depreciation and amortization expense

                                

Work Truck Attachments

   $ 3,298     $ 3,228     $ 10,039     $ 9,618  

Work Truck Solutions

     2,083       2,005       6,141       6,008  
    $ 5,381     $ 5,233     $ 16,180     $ 15,626  

Assets

                                

Work Truck Attachments

   $ 459,138     $ 454,739                  

Work Truck Solutions

     212,807       200,048                  
    $ 671,945     $ 654,787                  

Capital Expenditures

                                

Work Truck Attachments

   $ 1,320     $ 2,741     $ 4,185     $ 6,807  

Work Truck Solutions

     1,335       630       2,707       1,211  
    $ 2,655     $ 3,371     $ 6,892     $ 8,018  

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Adjusted EBITDA

                                

Work Truck Attachments

   $ 12,328     $ 22,929     $ 44,393     $ 59,562  

Work Truck Solutions

     4,985       2,202       8,807       4,307  

Total Adjusted EBITDA

   $ 17,313     $ 25,131     $ 53,200     $ 63,869  

Less items to reconcile Adjusted EBITDA to Income before taxes:

                                

Interest expense - net

     4,607       3,266       11,207       7,852  

Depreciation expense

     2,751       2,603       8,290       7,736  

Amortization

     2,630       2,630       7,890       7,890  

Stock based compensation

     -       510       4,236       5,563  

Other charges (1)

     396       (53 )     538       488  

Income before taxes

   $ 6,929     $ 16,175     $ 21,039     $ 34,340  

 

 

(1)

Reflects unrelated legal, severance, restructuring, and consulting fees, and, in 2022, incremental costs incurred related to the COVID-19 pandemic for the periods presented.

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