Note 15 - Segment Reporting

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 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 and service 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 concentration, 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 tower 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 (1,650 tower sections), sufficient to support turbines generating more than 1,100 megawatts of power. The Company has expanded production capabilities and leveraged manufacturing competencies, including welding, lifting capacity and stringent quality practices, into aftermarket and original equipment manufacturer (“OEM”) components utilized in surface and underground mining, construction, material handling, oil and gas (“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, as well as other clean technology markets.

Corporate

“Corporate” includes the assets and selling, general and administrative 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, “Basis of Presentation” of these condensed consolidated financial statements. Summary financial information by reportable segment for the three months ended March 31, 2023 and 2022 is as follows:

	Heavy Fabrications		Gearing		Industrial Solutions		Corporate			Eliminations			Consolidated
For the Three Months Ended March 31, 2023
Revenues from external customers	$	31,593	$	11,965	$	5,315	$	—		$	—		$	48,873
Intersegment revenues		—		—		108		—			(108	)		—
Net revenues		31,593		11,965		5,423		—			(108	)		48,873
Operating income (loss)		2,790		581		622		(2,711	)		—			1,282
Depreciation and amortization		858		596		94		57			—			1,605
Capital expenditures		662		385		18		—			—			1,065

	Heavy Fabrications			Gearing			Industrial Solutions			Corporate			Eliminations			Consolidated
For the Three Months Ended March 31, 2022
Revenues from external customers	$	27,272		$	10,576		$	3,996					$	—		$	41,844
Intersegment revenues		—			8			77			—			(85	)		—
Net revenues		27,272			10,584			4,073			—			(85	)		41,844
Operating loss		(461	)		(112	)		(209	)		(1,291	)		—			(2,073	)
Depreciation and amortization		879			476			103			61			—			1,519
Capital expenditures		482			—			9			1			—			492

	Total Assets as of
	March 31,			December 31,
Segments:	2023			2022
Heavy Fabrications	$	57,384		$	45,475
Gearing		53,261			51,944
Industrial Solutions		14,480			12,775
Corporate		78,590			62,809
Eliminations		(54,757	)		(28,463	)
	$	148,958		$	144,540