Note 15 - Segments

9 Months Ended

Sep. 30, 2024

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,
	2024		2023		2024		2023
Net sales
Work Truck Attachments	$	60,249	$	75,879	$	202,226	$	236,346
Work Truck Solutions		69,149		68,242		222,729		197,587
	$	129,398	$	144,121	$	424,955	$	433,933
Adjusted EBITDA
Work Truck Attachments	$	8,139	$	12,328	$	39,463	$	44,393
Work Truck Solutions		7,192		4,985		21,097		8,807
	$	15,331	$	17,313	$	60,560	$	53,200
Depreciation and amortization expense
Work Truck Attachments	$	2,235	$	3,298	$	7,945	$	10,039
Work Truck Solutions		2,042		2,083		6,084		6,141
	$	4,277	$	5,381	$	14,029	$	16,180
Assets
Work Truck Attachments	$	437,402	$	459,138
Work Truck Solutions		228,185		212,807
	$	665,587	$	671,945
Capital Expenditures
Work Truck Attachments	$	738	$	1,320	$	1,872	$	4,185
Work Truck Solutions		348		1,335		1,659		2,707
	$	1,086	$	2,655	$	3,531	$	6,892

Adjusted EBITDA
Work Truck Attachments	$	8,139		$	12,328	$	39,463		$	44,393
Work Truck Solutions		7,192			4,985		21,097			8,807
Total Adjusted EBITDA	$	15,331		$	17,313	$	60,560		$	53,200
Less items to reconcile Adjusted EBITDA to Income before taxes:
Interest expense - net		4,469			4,607		12,116			11,207
Depreciation expense		2,647			2,751		8,139			8,290
Amortization		1,630			2,630		5,890			7,890
Sale leaseback transaction fees		5,257			-		5,257			-
Stock based compensation		794			-		3,627			4,236
Restructuring and severance costs		417			-		1,819			-
Impairment charges (1)		-			-		1,224			-
Gain on sale leaseback transaction		(42,298	)		-		(42,298	)		-
Other charges (2)		675			396		862			538
Income before taxes	$	41,740		$	6,929	$	63,924		$	21,039

(1)	Reflects impairment charges taken on certain internally developed software in the nine months ended September 30, 2024.
(2)	Reflects unrelated legal and consulting fees, insurance proceeds, and CEO transition costs for the periods presented.