Segments

9 Months Ended

Sep. 30, 2021

Segments

Segments

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.  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 operating 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,
		2021		2020		2021		2020
Net sales
Work Truck Attachments	$	81,373	$	76,903	$	227,992	$	169,853
Work Truck Solutions		46,263		56,858		160,516		152,141
	$	127,636	$	133,761	$	388,508	$	321,994
Adjusted EBITDA
Work Truck Attachments	$	14,790	$	20,155	$	55,206	$	38,527
Work Truck Solutions		700		2,917		4,433		3,162
	$	15,490	$	23,072	$	59,639	$	41,689
Depreciation and amortization expense
Work Truck Attachments	$	3,038	$	2,683	$	8,836	$	7,994
Work Truck Solutions		1,984		2,224		6,399		6,710
	$	5,022	$	4,907	$	15,235	$	14,704
Assets
Work Truck Attachments	$	405,401	$	396,793
Work Truck Solutions		194,833		214,471
	$	600,234	$	611,264
Capital Expenditures
Work Truck Attachments	$	2,221	$	4,850	$	6,202	$	9,105
Work Truck Solutions		331		375		1,108		1,110
	$	2,552	$	5,225	$	7,310	$	10,215

Adjusted EBITDA
Work Truck Attachments	$	14,790	$	20,155	$	55,206	$	38,527
Work Truck Solutions		700		2,917		4,433		3,162
Total Adjusted EBITDA	$	15,490	$	23,072	$	59,639	$	41,689
Less items to reconcile Adjusted EBITDA to Income (Loss) before taxes:
Interest expense - net		2,167		5,007		9,514		15,709
Depreciation expense		2,380		2,170		7,183		6,490
Amortization		2,642		2,737		8,052		8,214
Purchase accounting (1)		-		-		-		(2,017)
Stock based compensation		5		199		6,025		2,768
Impairment charges		-		-		-		127,872
Debt modification expense		-		237		-		3,429
Loss on extinguishment of debt		-		-		4,936		-
COVID-19 (2)		12		157		67		1,322
Other charges (3)		50		101		44		101
Income (loss) before taxes	$	8,234	$	12,464	$	23,818	$	(122,199)

(1) Reflects $2,000 reversal of earn-out compensation in conjunction with the acquisition of Dejana in the periods presented. Reflects $17 reversal of earn-out compensation in conjunction with the acquisition of Henderson in the periods presented.

(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 unrelated legal and consulting fees for the periods presented.