Note 15 - Segment Reporting

3 Months Ended

Mar. 31, 2024

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 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 (1,650 tower sections), sufficient to support turbines generating more than 1,100 MW of power. The Company has expanded its 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. The Company has designed and manufactures a mobile, modular pressure reducing system for the compressed natural gas virtual pipeline market. The Company manufactures components for buckets, shovels, car bodies, drill masts and other products that support mining and construction markets. In other industrial markets, the Company provides crane components, pressure vessels, frames and other structures.

Gearing 

The Company provides gearing, gearboxes and precision machined components to a broad set of customers in diverse markets including; surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. The Company has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and OEM applications for a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in addition to gearbox repair 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 and kitting and assembly services, primarily serving the combined cycle natural gas turbine market. The Company has recently expanded into the U.S. wind power generation market, by providing tower internals kitting solutions for on-site installations, as OEMs domesticate their supply chain due to lead time and reliability issues. The Company leverages a global supply chain to provide instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services and electromechanical devices. The Company also provides packaging solutions and fabricates panels and sub-assemblies to reduce customers’ costs and improve manufacturing velocity and reliability.

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, 2024 and 2023 is as follows:

	Heavy Fabrications		Gearing		Industrial Solutions		Corporate			Eliminations			Consolidated
For the Three Months Ended March 31, 2024
Revenues from external customers	$	22,016	$	8,337	$	7,263	$	—		$	—		$	37,616
Intersegment revenues		—		—		731		—			(731	)		—
Net revenues		22,016		8,337		7,994		—			(731	)		37,616
Operating income (loss)		2,046		25		1,767		(1,760	)		—			2,078
Depreciation and amortization		911		540		100		45			—			1,596
Capital expenditures		461		1,068		215		—			—			1,744

	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

	Total Assets as of
	March 31,			December 31,
Segments:	2024			2023
Heavy Fabrications	$	37,322		$	46,931
Gearing		47,207			48,599
Industrial Solutions		16,127			16,295
Corporate		52,329			58,487
Eliminations		(29,914	)		(35,156	)
	$	123,071		$	135,156