Note 17 - Segments

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

17. Segments

The Company operates through two operating segments for which separate financial information is available, and for which operating results are evaluated regularly by the Company's chief operating decision maker in determining resource allocation and assessing performance. The Company’s two current reportable business segments are described below. 

Work Truck Attachments.  The Work Truck Attachments segment includes the Company’s operations that manufacture and sell snow and ice control attachments and other products sold under the FISHER®, WESTERN®, and SNOWEX® brands, as well as our vertically integrated 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.

Segment performance is evaluated based on segment net sales and Adjusted EBITDA. Separate financial information is available for the two operating segments. In addition, segment results include an allocation of all corporate costs to Work Truck Attachments and Work Truck Solutions. 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.

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:

	2022		2021		2020
Net sales
Work Truck Attachments	$	382,296	$	325,707	$	252,838
Work Truck Solutions		233,772		215,746		227,316
	$	616,068	$	541,453	$	480,154
Adjusted EBITDA
Work Truck Attachments	$	78,211	$	77,369	$	62,532
Work Truck Solutions		8,569		2,167		12,360
	$	86,780	$	79,536	$	74,892
Depreciation and amortization expense
Work Truck Attachments	$	12,901	$	11,937	$	10,824
Work Truck Solutions		8,037		8,379		8,913
	$	20,938	$	20,316	$	19,737
Assets
Work Truck Attachments	$	397,557	$	384,566	$	365,210
Work Truck Solutions		199,334		187,910		213,992
	$	596,891	$	572,476	$	579,202
Capital expenditures
Work Truck Attachments	$	9,526	$	10,434	$	13,174
Work Truck Solutions		2,876		1,447		1,508
	$	12,402	$	11,881	$	14,682

Adjusted EBITDA
Work Truck Attachments	$	78,211	$	77,369	$	62,532
Work Truck Solutions		8,569		2,167		12,360
Total Adjusted EBITDA	$	86,780	$	79,536	$	74,892
Less items to reconcile Adjusted EBITDA to Income (Loss) before taxes:
Interest expense - net		11,253		11,839		20,238
Depreciation expense		10,418		9,634		8,806
Amortization		10,520		10,682		10,931
Purchase accounting (1)		-		-		(2,017	)
Stock based compensation		6,730		5,794		2,830
Impairment charges		-		1,211		127,872
Debt modification expense		-		-		3,542
Loss on extinguishment of debt		-		4,936		-
COVID-19 (2)		48		82		1,391
Other charges (3)		450		770		128
Income (Loss) before taxes	$	47,361	$	34,588	$	(98,829	)

(1) Reflects $17 in reversal of earnout compensation related to Henderson, and $2,000 in reversal of earnout compensation related to Dejana in the year ended December 31, 2020.

(2) 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.

(3) Reflects expenses and accrual reversals for one time, unrelated legal, severance, restructuring and consulting fees for the periods presented.