Note 15 - Segments

9 Months Ended

Sep. 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		Nine Months Ended		Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2023		2022		2023		2022
Net sales
Work Truck Attachments	$	75,879	$	108,235	$	236,346	$	284,375
Work Truck Solutions		68,242		57,865		197,587		171,887
	$	144,121	$	166,100	$	433,933	$	456,262
Adjusted EBITDA
Work Truck Attachments	$	12,328	$	22,929	$	44,393	$	59,562
Work Truck Solutions		4,985		2,202		8,807		4,307
	$	17,313	$	25,131	$	53,200	$	63,869
Depreciation and amortization expense
Work Truck Attachments	$	3,298	$	3,228	$	10,039	$	9,618
Work Truck Solutions		2,083		2,005		6,141		6,008
	$	5,381	$	5,233	$	16,180	$	15,626
Assets
Work Truck Attachments	$	459,138	$	454,739
Work Truck Solutions		212,807		200,048
	$	671,945	$	654,787
Capital Expenditures
Work Truck Attachments	$	1,320	$	2,741	$	4,185	$	6,807
Work Truck Solutions		1,335		630		2,707		1,211
	$	2,655	$	3,371	$	6,892	$	8,018

Adjusted EBITDA
Work Truck Attachments	$	12,328	$	22,929		$	44,393	$	59,562
Work Truck Solutions		4,985		2,202			8,807		4,307
Total Adjusted EBITDA	$	17,313	$	25,131		$	53,200	$	63,869
Less items to reconcile Adjusted EBITDA to Income before taxes:
Interest expense - net		4,607		3,266			11,207		7,852
Depreciation expense		2,751		2,603			8,290		7,736
Amortization		2,630		2,630			7,890		7,890
Stock based compensation		-		510			4,236		5,563
Other charges (1)		396		(53	)		538		488
Income before taxes	$	6,929	$	16,175		$	21,039	$	34,340

(1) Reflects unrelated legal, severance, restructuring, and consulting fees, and, in 2022, incremental costs incurred related to the COVID-19 pandemic for the periods presented.