SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s products and operations are managed and reported in two operating segments: Fire Safety and Specialty Products. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company’s retardant and foam products. The Specialty Products segment includes operations that develop, produce and market products for non-fire safety markets. The Company’s largest end market application for the Specialty Products segment is Phosphorus Pentasulfide ("P2S5") based lubricant additives. P2S5 is also used in pesticide and mining chemicals applications, and emerging electric battery technologies.

The CODM is the Company's CEO. The CODM uses Segment Adjusted EBITDA for each segment predominantly in the annual budget and the forecasting process. The CODM considers budget/forecast-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment.

The Company defines Segment Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items on a segment basis. These non-recurring or unusual items may include acquisition and restructuring related costs, management fees and other non-recurring items.

Interest income, interest expense, other income (expense) and certain corporate operating expenses are not included in the measures of segment performance reviewed by the CODM. The corporate category is not considered to be a segment.

Information related to net sales, Segment Adjusted EBITDA, depreciation and amortization, purchases of property and equipment, and segment assets of the Company’s operations are summarized below (in thousands):

	Year Ended December 31, 2024
	Fire Safety		Specialty Products		Total
Net sales:
Product	$	340,112	$	124,694	$	464,806
Services and others	96,162		—		96,162
Total net sales	436,274		124,694		560,968
Less:
Adjusted cost of goods sold	160,157		72,705		232,862
Adjusted selling, general and administrative expense	35,996		11,816		47,812
Segment Adjusted EBITDA	$	240,121	$	40,173	$	280,294
Less:
Depreciation and amortization					65,718
Interest and financing expense					40,461
Founders advisory fees - related party					198,308
Non-recurring expenses					7,378
Share-based compensation expense					12,849
Foreign currency loss					2,443
Loss before income taxes					$	(46,863)
Depreciation and amortization	$	51,365	$	14,353	$	65,718
Purchases of property and equipment	9,449		6,082		15,531
Segment assets	83,677		189,912		273,589

	Year Ended December 31, 2023
	Fire Safety		Specialty Products		Total
Net sales:
Product	$	194,166	$	96,554	$	290,720
Services and others	31,388		—		31,388
Total net sales	225,554		96,554		322,108
Less:
Adjusted cost of goods sold	117,242		66,711		183,953
Adjusted selling, general and administrative expense	32,098		9,270		41,368
Segment Adjusted EBITDA	$	76,214	$	20,573	$	96,787
Less:
Depreciation and amortization					64,855
Interest and financing expense					41,378
Founders advisory fees - related party					(108,481)
Intangible impairment					40,738
Non-recurring expenses					4,046
Share-based compensation expense					1,596
Gain on contingent earn-out					(7,273)
Foreign currency gain					(1,655)
Income before income taxes					$	61,583
Depreciation and amortization	$	51,178	$	13,677	$	64,855
Purchases of property and equipment	4,287		5,148		9,435
Segment assets	93,200		191,946		285,146

	Year Ended December 31, 2022
	Fire Safety		Specialty Products		Total
Net sales:
Product	$	196,750	$	133,922	$	330,672
Services and others	29,833		—		29,833
Total net sales	226,583		133,922		360,505
Less:
Adjusted cost of goods sold	117,725		77,141		194,866
Adjusted selling, general and administrative expense	31,493		8,755		40,248
Segment Adjusted EBITDA	$	77,365	$	48,026	$	125,391
Less:
Depreciation and amortization					65,795
Interest and financing expense					42,585
Founders advisory fees - related party					(117,302)
Non-recurring expenses					6,885
Share-based compensation expense					14,649
Non-cash purchase accounting impact					24,796
Gain on contingent earn-out					(12,706)
Foreign currency loss					3,462
Income before income taxes					$	97,227
Depreciation and amortization	$	51,299	14,496		$	65,795
Purchases of property and equipment	3,817		4,796		8,613

Total segment assets reconciled to consolidated amounts are as follows:

	December 31, 2024		December 31, 2023
Total segment assets	$	273,589	$	285,146
Cash and cash equivalents	198,456		47,276
Goodwill	1,034,543		1,036,279
Customer lists, net	637,745		674,786
Technology and patents, net	173,307		180,653
Tradenames, net	87,365		89,568
Tax assets	11,389		1,714
Total consolidated assets	$	2,416,394	$	2,315,422

Net sales by geographical area is as follows (in thousands):

	Year Ended December 31,
	2024		2023		2022
United States	79	%	65	%	74	%
Canada	6		14		5
Other international sales (1)	15		21		21
Total net sales	100	%	100	%	100	%

(1)    The Company did not have net sales in excess of 10% in any other countries for the years ended December 31, 2024, 2023 and 2022.

Property, plant and equipment, net by geographical area consisted of the following (in thousands):

	December 31, 2024		December 31, 2023
United States	$	46,580	$	38,709
Canada	2,180		2,303
Germany	12,643		14,376
Other foreign jurisdictions	3,374		4,014
Total property, plant and equipment, net	$	64,777	$	59,402