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Note 15 - Segment Reporting
12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
15.
SEGMENT REPORTING
 
The Company is organized into reporting segments based on the nature of the products offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company's chief operating decision maker. 
 
The Company's segments and their product offerings are summarized below:
 
Heavy Fabrications
 
The Company provides large, complex and precision fabrications to customers in a broad range of industrial markets. The Company's most significant presence is within the U.S. wind energy industry, although it has diversified into other industrial markets in order to improve capacity utilization, reduce customer concentrations, and reduce exposure to uncertainty related to governmental policies currently impacting the U.S. wind energy industry. Within the U.S. wind energy industry, the Company provides steel towers and adapters primarily to wind turbine manufacturers. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The
two
facilities have a combined annual tower production capacity of up to approximately
550
tower towers (
1650
tower sections), sufficient to support turbines generating more than
1,100
MW of power. The Company has expanded production capabilities and leveraged manufacturing competencies, including welding, lifting capacity and stringent quality practices, into aftermarket and OEM components utilized in surface and underground mining, construction, material handling, O&G and other infrastructure markets.
 
Gearing
 
The Company provides gearing and gearboxes to a broad set of customers in diverse markets including; onshore and offshore O&G fracking and drilling, surface and underground mining, wind energy, steel, material handling and other infrastructure markets. The Company has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and OEM applications for nearly a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment in Neville Island, Pennsylvania.
 
Industrial Solutions
 
The Company provides supply chain solutions, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market.
 
Corporate and Other
 
“Corporate” includes the assets and SG&A expenses of the Company's corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results.
 
The accounting policies of the reportable segments are the same as those referenced in Note 
1,
“Description of Business and Summary of Significant Accounting Policies” of these consolidated financial statements. Summary financial information by reportable segment is as follows:
 
   
Heavy Fabrications
   
Gearing
   
Industrial Solutions
   
Corporate
   
Eliminations
   
Consolidated
 
For the Year Ended December 31, 2020
     
 
     
 
     
 
     
 
     
 
     
 
Revenues from external customers
  $
155,096
     
25,104
     
18,296
     
     
    $
198,496
 
Intersegment revenues
   
102
     
32
     
3
     
     
(137
)    
 
Net revenues
   
155,198
     
25,136
     
18,299
     
     
(137
)    
198,496
 
Operating profit (loss)
   
10,385
     
(3,883
)    
881
     
(6,953
)    
(8
)    
422
 
Depreciation and amortization
   
3,736
     
1,961
     
430
     
152
     
     
6,279
 
Capital expenditures
   
1,049
     
283
     
159
     
56
     
     
1,547
 
Total assets    
40,438
     
43,319
     
10,244
     
220,428
     
(194,747
)    
119,682
 
 
   
Heavy Fabrications
   
Gearing
   
Industrial Solutions
   
Corporate
   
Eliminations
   
Consolidated
 
For the Year Ended December 31, 2019
     
 
     
 
     
 
     
 
     
 
     
 
Revenues from external customers
  $
128,686
    $
34,877
    $
14,657
    $
    $
    $
178,220
 
Intersegment revenues
   
     
     
7
     
     
(7
)    
 
Net revenues
   
128,686
     
34,877
     
14,664
     
     
(7
)    
178,220
 
Operating profit (loss)
   
1,861
     
3,237
     
(1,059
)    
(6,396
)    
     
(2,357
)
Depreciation and amortization
   
3,976
     
1,981
     
1,362
     
178
     
     
7,497
 
Capital expenditures
   
992
     
769
     
52
     
31
     
     
1,844
 
Total assets
   
41,432
     
47,022
     
8,893
     
239,629
     
(214,110
)    
122,866
 
 
The Company generates revenues entirely from transactions completed in the U.S. and its long-lived assets are all located in the U.S. All intercompany revenue is eliminated in consolidation. During
2020
,
one
 customer accounted for more than
10%
of total net revenues and had an accounts receivable balance greater than
10%
of current assets. This customer, reported within the Heavy Fabrications segment, accounted for revenues of
$105,366
 and account receivables of
$6,118
 for fiscal year
2020
. Additionally, another customer, in the Heavy Fabrications segment, accounted for more than
10%
of total net revenues. This customer had revenues of
$25,237
 during fiscal year
2020.
 During
2019
one
customer accounted for more than
10%
of total net revenues and had an accounts receivable balance greater than
10%
of current assets. This customer, reported within the Heavy Fabrications segment, accounted for revenues of 
$110,693
and accounts receivables of
$8,428
for fiscal year
2019
 . During the years ended
December 31, 2020
and
2019
,
five
customers accounted for
78%
and
79%,
respectively, of total net revenues.