Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Continuing Operations Before Income Taxes

The components of income from continuing operations before income taxes were as follows (in thousands):


	For the years ended December 31,
	2024		2023		2022
Domestic	$	41,599	$	52,137	$	36,694
Foreign	4,881		4,776		(983)
Income from continuing operations before income taxes	$	46,480	$	56,913	$	35,711

Schedule of Components of Provision for Income Taxes

The components of the provision for income taxes from continuing operations were as follows (in thousands):


	For the years ended December 31,
	2024		2023		2022
Current:
Federal	$	11,670	$	11,556	$	9,483
State	2,132		2,205		1,485
Foreign	1,573		1,138		35
Total current	15,375		14,899		11,003
Deferred:
Federal	(4,725)		(1,148)		(1,890)
State	(489)		3		(61)
Foreign	(179)		7		—
Total deferred	(5,393)		(1,138)		(1,951)
Provision for income taxes	$	9,982	$	13,761	$	9,052

Schedule of Effective Income Tax Reconciliation

A reconciliation of the provision for income taxes from continuing operations to the amount computed by applying the statutory federal income tax rate is as follows (in thousands):


	For the years ended December 31,
	2024			2023			2022
Tax at statutory federal income tax rate	$	9,761		$	11,952		$	7,499
Increases (decreases) in tax resulting from:
State taxes, net of federal tax benefit	1,738			2,019			1,459
Permanent differences, net	(634)			(193)			287
Tax credits	(454)			(461)			(418)
Prior year true-up adjustment	(931)			269			(45)
Valuation allowance	378			77			324
Other provision adjustments	124			98			(54)
Provision for income taxes	$	9,982		$	13,761		$	9,052
Effective tax rate	21.5		%	24.2		%	25.3		%

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences representing deferred tax assets and liabilities was as follows (in thousands):


	As of December 31,
	2024		2023
Deferred compensation and accrued paid leave	$	2,767	$	3,003
Accrued expense	2,094		1,429
Inventory reserve	23,463		13,980
Operating lease liabilities	14,362		6,249
Stock-based compensation	2,084		1,697
Capitalized inventory	1,741		1,335
US operating and capital loss carryforward	12,777		7,637
Disallowed interest expense	9,450		1,663
Tax credit carryforward	1,421		1,492
Foreign country operating loss carryforward	1,364		806
Interest capitalized	2,030		—
Transaction costs	357		—
	73,910		39,291
Valuation allowance (a)	(19,301)		(9,906)
Total gross deferred tax assets	54,609		29,385

Interest rate swaps	(1,021)		(708)
Depreciation	(3,959)		(2,925)
Goodwill and intangible assets	(38,279)		(26,666)
Operating lease right-of-use assets	(10,962)		(5,939)
Other	(270)		(132)
Total gross deferred tax liabilities	(54,491)		(36,370)

Net deferred tax assets (liabilities) (b)	$	118	$	(6,985)
(a) A valuation allowance was provided against US capital loss in connection with the stock sale of Prime Turbines, certain state net operating loss, tax credit, and foreign tax loss deferred tax assets arising from carryforwards of unused tax benefits.
(b) Deferred tax assets are included within other assets in our consolidated balance sheets.