Note 15 - Segments

6 Months Ended

Jun. 30, 2023

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, as well as our vertically integrated products.  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		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2023		2022		2023		2022
Net sales
Work Truck Attachments	$	141,221	$	130,364	$	160,467	$	176,140
Work Truck Solutions		66,046		57,197		129,345		114,022
	$	207,267	$	187,561	$	289,812	$	290,162
Adjusted EBITDA
Work Truck Attachments	$	42,296	$	33,589	$	32,065	$	36,633
Work Truck Solutions		965		513		3,822		2,105
	$	43,261	$	34,102	$	35,887	$	38,738
Depreciation and amortization expense
Work Truck Attachments	$	3,403	$	3,201	$	6,741	$	6,390
Work Truck Solutions		2,039		2,003		4,058		4,003
	$	5,442	$	5,204	$	10,799	$	10,393
Assets
Work Truck Attachments	$	439,940	$	421,310
Work Truck Solutions		201,260		192,174
	$	641,200	$	613,484
Capital Expenditures
Work Truck Attachments	$	1,933	$	2,928	$	2,865	$	4,066
Work Truck Solutions		836		363		1,372		581
	$	2,769	$	3,291	$	4,237	$	4,647

Adjusted EBITDA
Work Truck Attachments	$	42,296	$	33,589	$	32,065	$	36,633
Work Truck Solutions		965		513		3,822		2,105
Total Adjusted EBITDA	$	43,261	$	34,102	$	35,887	$	38,738
Less items to reconcile Adjusted EBITDA to Income before taxes:
Interest expense - net		3,736		2,473		6,600		4,586
Depreciation expense		2,812		2,574		5,539		5,133
Amortization		2,630		2,630		5,260		5,260
Stock based compensation		3,279		3,153		4,236		5,053
Other charges (1)		68		182		142		541
Income before taxes	$	30,736	$	23,090	$	14,110	$	18,165

(1) Reflects unrelated legal, severance, restructuring, consulting fees, and incremental costs incurred related to the COVID-19 pandemic for the periods presented.