Quarterly report [Sections 13 or 15(d)]

Note 15 - Segments

v3.25.3
Note 15 - Segments
9 Months Ended
Sep. 30, 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 the Company's vertically integrated products.  This segment consists of the Company's 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

   

Nine Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

   

September 30,

   

September 30,

 
   

2025

   

2024

   

2025

   

2024

 

Net sales

                               

Work Truck Attachments

  $ 68,097     $ 60,249     $ 212,668     $ 202,226  

Work Truck Solutions

    94,024       69,149       258,847       222,729  
    $ 162,121     $ 129,398     $ 471,515     $ 424,955  

Selling, general and administrative expense

                               

Work Truck Attachments

  $ 11,971     $ 16,583     $ 35,813     $ 41,773  

Work Truck Solutions

    10,502       9,105       31,798       28,773  
    $ 22,473     $ 25,688     $ 67,611     $ 70,546  

Other segment items (1)

                               

Work Truck Attachments

  $ 45,665     $ 35,527     $ 134,497     $ 120,990  

Work Truck Solutions

    73,898       52,852       197,274       172,859  
    $ 119,563     $ 88,379     $ 331,771     $ 293,849  

Adjusted EBITDA

                               

Work Truck Attachments

  $ 10,461     $ 8,139     $ 42,358     $ 39,463  

Work Truck Solutions

    9,624       7,192       29,775       21,097  
    $ 20,085     $ 15,331     $ 72,133     $ 60,560  

Depreciation and amortization expense

                               

Work Truck Attachments

  $ 1,902     $ 2,235     $ 5,771     $ 7,945  

Work Truck Solutions

    1,923       2,042       5,703       6,084  
    $ 3,825     $ 4,277     $ 11,474     $ 14,029  

Assets

                               

Work Truck Attachments

  $ 430,212     $ 437,402                  

Work Truck Solutions

    264,724       228,185                  
    $ 694,936     $ 665,587                  

Capital Expenditures

                               

Work Truck Attachments

  $ 1,429     $ 738     $ 4,645     $ 1,872  

Work Truck Solutions

    1,595       348       3,317       1,659  
    $ 3,024     $ 1,086     $ 7,962     $ 3,531  

 

Adjusted EBITDA

                               

Work Truck Attachments

  $ 10,461     $ 8,139     $ 42,358     $ 39,463  

Work Truck Solutions

    9,624       7,192       29,775       21,097  

Total Adjusted EBITDA

  $ 20,085     $ 15,331     $ 72,133     $ 60,560  

Less items to reconcile Adjusted EBITDA to income before taxes:

                               

Interest expense - net

    3,762       4,469       9,119       12,116  

Depreciation expense

    2,275       2,647       6,824       8,139  

Amortization

    1,550       1,630       4,650       5,890  

Sale leaseback transaction fees

    -       5,257       -       5,257  

Stock based compensation

    1,519       794       5,223       3,627  

Restructuring and severance costs

    -       417       -       1,819  

Impairment charges (2)

    -       -       -       1,224  

Debt modification expense

    -       -       176       -  

Loss on extinguishment of debt

    -       -       156       -  

Gain on sale leaseback transaction

    -       (42,298 )     -       (42,298 )

Other charges (3)

    567       675       938       862  

Income before taxes

  $ 10,412     $ 41,740     $ 45,047     $ 63,924  

  

  (1) Includes cost of sales, other (income) expense, and the addback of depreciation expense, stock based compensation, impairment charges, gain on sale leaseback transaction, sale leaseback transaction fees, unrelated legal, severance, restructuring, and consulting fees, and write downs of property, plant and equipment for the periods presented.
  (2) Reflects impairment charges taken on certain internally developed software in the nine months ended September 30, 2024
 

(3)

Reflects unrelated legal, severance, restructuring and consulting fees, and write downs of property, plant and equipment for the periods presented.  

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