Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENTS

NOTE 17 — SEGMENTS

The Company has two reportable segments: Material Handling and Construction Equipment. The “Material Handling” segment has been previously reported as our “Industrial” segment. The Company’s segments are determined based on management structure, which is organized based on types of products sold, as described in the following paragraph. The operating results for each segment are reported separately to the Company’s Chief Executive Officer to make decisions regarding the allocation of resources, to assess the Company’s operating performance and to make strategic decisions.

The Material Handling segment is principally engaged in operations related to the sale, service, and rental of lift trucks and other material handling equipment in Michigan, Illinois, Indiana, New York (including New York City), Virginia as well as the New England region (including Boston) of the United States. As of September 30, 2021, the Material Handling segment included the ScottTech and Baron acquisitions and its related results for the quarter.

The Construction Equipment segment is principally engaged in operations related to the sale, service, and rental of construction equipment in Michigan, Illinois, New York (not including New York City), Florida and the New England region (including Boston) of the United States.

The Company retains various unallocated expense items at the general corporate level, which the Company refers to as “Corporate” in the table below. Corporate holds corporate debt and has minor activity all together. For the quarter ended September 30, 2021, Corporate incurred expenses associated with compensation (including shared based compensation) of our directors, corporate officers and certain members of our shared-services leadership team, consulting and legal fees related to acquisitions and capital raising activities, corporate governance and compliance related matters, certain corporate development related expenses and interest expense associated with original issue discounts and deferred financing cost related to previous capital raises, which were offset with income tax benefit. Corporate incurred $11.9 million and $7.6 million in debt extinguishment fees for the nine months ended September 30, 2021 and September 30, 2020 respectively. Corporate incurred an additional $7.6 million in transaction costs and other expenses associated with the reverse recapitalization for the nine months ended September 30, 2020.

Additionally, as it relates to certain allocated corporate level expenses (e.g. audit, tax and other professional fees, interest, IT and HR related expenses, certain corporate marketing expenses, etc.), the Company evaluates and analyzes the appropriateness of expense allocations to each of its business units (and therefore segments) on an annual basis and makes necessary adjustments to these allocations at year-end. The Company uses metrics such as headcount, revenue and total assets, where appropriate, to develop these allocations.

In connection with the purchase of NITCO LLC in 2019, the Company expanded its full-service material handling and construction equipment dealer operations into New England market. Given that the sales of the business were more heavily weighted to material handling versus construction and that NITCO’s reporting systems made it difficult for the construction business to be observed separate from the Material Handling operation, NITCO’s total financial results were historically presented within our Material Handling segment. On January 1, 2021, with the migration of the NITCO business to the Company’s main ERP system, the Company is now able to report the results for the Material Handling and Construction Equipment results within their respective segments for the NITCO business unit. As such, the Company has re-casted certain prior period segment-level results for the NITCO business unit to be consistent with the current period presentation for appropriate period-over-period comparability.

The following table presents the Company’s results of operations by reportable segment for the nine months ended September 30, 2021 (amounts in millions):

	Nine Months Ended September 30, 2021
	Material Handling		Construction Equipment			Corporate			Total
New and used equipment sales	$	174.7	$	217.9		$	—		$	392.6
Parts sales		47.7		82.6			—			130.3
Service revenue		70.4		52.6			—			123.0
Rental revenue		35.1		77.9			—			113.0
Rental equipment sales		0.8		96.8			—			97.6
Total revenue	$	328.7	$	527.8		$	—		$	856.5
Interest expense		6.1		10.1			1.4			17.6
Depreciation and amortization		13.6		55.6			—			69.2
Net income (loss)	$	6.7	$	(5.2	)	$	(23.4	)	$	(21.9	)

The following table presents the Company’s results of operations by reportable segment for the three months ended September 30, 2021 (amounts in millions):

	Three Months Ended September 30, 2021
	Material Handling		Construction Equipment			Corporate			Total
New and used equipment sales	$	57.2	$	79.6		$	—		$	136.8
Parts sales		16.8		28.0			—			44.8
Service revenue		23.7		18.2			—			41.9
Rental revenue		12.6		29.1			—			41.7
Rental equipment sales		—		29.8			—			29.8
Total revenue	$	110.3	$	184.7		$	—		$	295.0
Interest expense		2.0		3.4			0.6			6.0
Depreciation and amortization		4.6		19.8			—			24.4
Net income (loss)	$	3.4	$	(0.2	)	$	(3.7	)	$	(0.5	)

The following table presents the Company’s results of operations by reportable segment for the nine months ended September 30, 2020 (amounts in millions):

	Nine Months Ended September 30, 2020
	Material Handling		Construction Equipment			Corporate			Total
New and used equipment sales	$	137.5	$	137.7		$	—		$	275.2
Parts sales		40.2		52.1			—			92.3
Service revenue		58.5		35.6			—			94.1
Rental revenue		31.2		52.2			—			83.4
Rental equipment sales		6.0		42.2			—			48.2
Total revenue	$	273.4	$	319.8		$	—		$	593.2
Interest expense		4.0		8.1			5.6			17.7
Depreciation and amortization		15.0		36.6			—			51.6
Net income (loss)	$	5.7	$	(12.6	)	$	(13.9	)	$	(20.8	)

The following table presents the Company’s results of operations by reportable segment for the three months ended September 30, 2020 (amounts in millions):

	Three Months Ended September 30, 2020
	Material Handling		Construction Equipment			Corporate		Total
New and used equipment sales	$	53.1	$	44.8		$	—	$	97.9
Parts sales		15.4		20.1			—		35.5
Service revenue		22.1		13.4			—		35.5
Rental revenue		11.0		21.2			—		32.2
Rental equipment sales		1.4		18.1			—		19.5
Total revenue	$	103.0	$	117.6		$	—	$	220.6
Interest expense		1.3		2.8			2.0		6.1
Depreciation and amortization		5.6		15.4			—		21.0
Net income (loss)	$	2.1	$	(7.9	)	$	6.1	$	0.3

The following table presents the Company’s identified assets by reportable segment for the period ending September 30, 2021 and December 31, 2020 (amounts in millions):

	September 30, 2021		December 31, 2020
Segment assets:
Material handling	$	249.6	$	221.5
Construction equipment		533.7		523.4
Corporate		4.1		1.3
Total assets	$	787.4	$	746.2