Note 15 - Segment Reporting

12 Months Ended

Dec. 31, 2021

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 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 and gearbox repair in Neville Island, Pennsylvania.

Industrial Solutions

The Company provides supply chain solutions, light fabrication, 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, 2021
Revenues from external customers	$	101,989			28,583			15,047			—			—		$	145,619
Intersegment revenues		5			—			355			—			(360	)		—
Net revenues		101,994			28,583			15,402			—			(360	)		145,619
Operating loss		(3,214	)		(2,593	)		(386	)		(6,401	)		—			(12,594	)
Depreciation and amortization		3,844			1,855			425			212			—			6,336
Capital expenditures		1,038			328			261			80			—			1,707
Total assets		37,131			46,219			10,825			228,219			(204,347	)		118,047

	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

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 2021, two customers accounted for more than 10% of total net revenues. The customers, reported within the Heavy Fabrications segment, accounted for revenues of $59,278 and $25,946, respectively. 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 accounts receivables of $6,118 for fiscal year 2020. Additionally in 2020, 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 the years ended December 31, 2021 and 2020, five customers accounted for 71% and 78%, respectively, of total net revenues.