Note 15 - Segments

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. 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 chief operating decision maker is its Chief Executive Officer. The chief operating decision maker assesses performance for the Work Truck Attachments and Work Truck Solutions segments and decides how to allocate resources based on Adjusted EBITDA. The chief operating decision maker uses Adjusted EBITDA to evaluate profit generated by the segments in deciding where to reinvest profits, whether it be within the segments or for other purposes such as paying dividends, repurchasing stock, or other general corporate uses. The chief operating decision maker also uses segment Adjusted EBITDA as a metric in benchmarking performance against competitors, as well as in evaluating the compensation of certain employees. 

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.

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:

	Three Months Ended		Three Months Ended
	March 31,		March 31,
	2025		2024
Net sales
Work Truck Attachments	$	36,457	$	23,840
Work Truck Solutions		78,610		71,815
	$	115,067	$	95,655
Selling, general and administrative expense
Work Truck Attachments	$	12,430	$	11,661
Work Truck Solutions		10,957		9,827
	$	23,387	$	21,488
Other segment items (1)
Work Truck Attachments	$	23,700	$	16,647
Work Truck Solutions		58,549		55,986
	$	82,249	$	72,633
Adjusted EBITDA
Work Truck Attachments	$	327	$	(4,468	)
Work Truck Solutions		9,104		6,002
	$	9,431	$	1,534
Depreciation and amortization expense
Work Truck Attachments	$	1,950	$	3,347
Work Truck Solutions		1,873		1,998
	$	3,823	$	5,345
Assets
Work Truck Attachments	$	364,562	$	374,045
Work Truck Solutions		256,478		203,031
	$	621,040	$	577,076
Capital Expenditures
Work Truck Attachments	$	1,095	$	675
Work Truck Solutions		658		99
	$	1,753	$	774

Adjusted EBITDA
Work Truck Attachments	$	327	$	(4,468	)
Work Truck Solutions		9,104		6,002
Total Adjusted EBITDA	$	9,431	$	1,534
Less items to reconcile Adjusted EBITDA to income (loss) before taxes:
Interest expense - net		2,384		3,524
Depreciation expense		2,273		2,715
Amortization		1,550		2,630
Stock based compensation		2,150		355
Impairment charges (2)		-		1,224
Debt modification expense		176		-
Loss on extinguishment of debt		156		-
Other charges (3)		252		1,029
Income (loss) before taxes	$	490	$	(9,943	)

(1)	Includes cost of sales, other (income) expense, and the addback of depreciation expense, stock based compensation, impairment charges, and unrelated legal, severance, restructuring, and consulting fees for the periods presented.
(2)	Reflects impairment charges taken on certain internally developed software in the three months ended March 31, 2024.
(3)	Reflects unrelated legal, severance, restructuring and consulting fees for the periods presented.