Quarterly report [Sections 13 or 15(d)]

Note 15 - Segments

v3.25.1
Note 15 - Segments
 3 Months Ended
Mar. 31, 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

  
   

March 31,

    

March 31,

  
   

2025

    

2024

  

Net sales

                

Work Truck Attachments

   $ 36,457     $ 23,840  

Work Truck Solutions

     78,610       71,815  
    $ 115,067     $ 95,655  

Selling, general and administrative expense

                

Work Truck Attachments

   $ 12,430     $ 11,661  

Work Truck Solutions

     10,957       9,827  
    $ 23,387     $ 21,488  

Other segment items (1)

                

Work Truck Attachments

   $ 23,700     $ 16,647  

Work Truck Solutions

     58,549       55,986  
    $ 82,249     $ 72,633  

Adjusted EBITDA

                

Work Truck Attachments

   $ 327     $ (4,468 )

Work Truck Solutions

     9,104       6,002  
    $ 9,431     $ 1,534  

Depreciation and amortization expense

                

Work Truck Attachments

   $ 1,950     $ 3,347  

Work Truck Solutions

     1,873       1,998  
    $ 3,823     $ 5,345  

Assets

                

Work Truck Attachments

   $ 364,562     $ 374,045  

Work Truck Solutions

     256,478       203,031  
    $ 621,040     $ 577,076  

Capital Expenditures

                

Work Truck Attachments

   $ 1,095     $ 675  

Work Truck Solutions

     658       99  
    $ 1,753     $ 774  

   

Adjusted EBITDA

                

Work Truck Attachments

   $ 327     $ (4,468 )

Work Truck Solutions

     9,104       6,002  

Total Adjusted EBITDA

   $ 9,431     $ 1,534  

Less items to reconcile Adjusted EBITDA to income (loss) before taxes:

                

Interest expense - net

     2,384       3,524  

Depreciation expense

     2,273       2,715  

Amortization

     1,550       2,630  

Stock based compensation

     2,150       355  

Impairment charges (2)

     -       1,224  

Debt modification expense

     176       -  

Loss on extinguishment of debt

     156       -  

Other charges (3)

     252       1,029  

Income (loss) before taxes

   $ 490     $ (9,943 )

  

  (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 for the periods presented.
  (2) Reflects impairment charges taken on certain internally developed software in the three months ended March 31, 2024. 
 

(3)

 Reflects unrelated legal, severance, restructuring and consulting fees for the periods presented.  

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