Note 15 - Segments

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. Segments

The Company’s two reportable business segments are as follows: 

Work Truck Attachments.  The Work Truck Attachments segment includes commercial snow and ice management attachments sold under the FISHER®, WESTERN® and SNOWEX® brands.  This segment consists of our operations that manufacture and sell snow and ice control products.

Work Truck Solutions.  The Work Truck Solutions segment includes manufactured municipal snow and ice control products under the HENDERSON® brand and the up-fit of market leading attachments and storage solutions under the HENDERSON® brand, and the DEJANA® brand and its related sub-brands.

Separate financial information is available for the two reportable segments. In addition, segment results include an allocation of all corporate costs to Work Truck Attachments and Work Truck Solutions.

Segment performance is evaluated based on segment net sales and Adjusted EBITDA. Segment results include an allocation of all corporate costs. No single customer’s revenues amounted to 10% or more of the Company’s total revenue. Sales are primarily within the United States and substantially all assets are located within the United States.

All intersegment sales are eliminated in consolidation. Sales between Work Truck Attachments and Work Truck Solutions reflect the Company’s intercompany pricing policy. The following table shows summarized financial information concerning the Company’s reportable segments:

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021
Net sales
Work Truck Attachments	$	108,235	$	81,373	$	284,375	$	227,992
Work Truck Solutions		57,865		46,263		171,887		160,516
	$	166,100	$	127,636	$	456,262	$	388,508
Adjusted EBITDA
Work Truck Attachments	$	22,929	$	14,790	$	59,562	$	55,206
Work Truck Solutions		2,202		700		4,307		4,433
	$	25,131	$	15,490	$	63,869	$	59,639
Depreciation and amortization expense
Work Truck Attachments	$	3,228	$	3,038	$	9,618	$	8,836
Work Truck Solutions		2,005		1,984		6,008		6,399
	$	5,233	$	5,022	$	15,626	$	15,235
Assets
Work Truck Attachments	$	454,739	$	405,401
Work Truck Solutions		200,048		194,833
	$	654,787	$	600,234
Capital Expenditures
Work Truck Attachments	$	2,741	$	2,221	$	6,807	$	6,202
Work Truck Solutions		630		331		1,211		1,108
	$	3,371	$	2,552	$	8,018	$	7,310

Adjusted EBITDA
Work Truck Attachments	$	22,929		$	14,790	$	59,562	$	55,206
Work Truck Solutions		2,202			700		4,307		4,433
Total Adjusted EBITDA	$	25,131		$	15,490	$	63,869	$	59,639
Less items to reconcile Adjusted EBITDA to Income before taxes:
Interest expense - net		3,266			2,167		7,852		9,514
Depreciation expense		2,603			2,380		7,736		7,183
Amortization		2,630			2,642		7,890		8,052
Stock based compensation		510			5		5,563		6,025
Loss on extinguishment of debt		-			-		-		4,936
COVID-19 (1)		7			12		39		67
Other charges (2)		(60	)		50		449		44
Income before taxes	$	16,175		$	8,234	$	34,340	$	23,818

(1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales.

(2) Reflects unrelated legal, severance, restructuring and consulting fees for the periods presented.