Business Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business Segment Information

15. Business Segment Information

The Company’s operations are organized and reviewed by management along with its solutions or end markets that the segment serves and presented in two reportable segments. The results of the segments are reviewed through the “Income from operations” line on the Condensed Consolidated Statements of Income.

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

Engineered Systems segment: Our Engineered Systems segment serves the general industrial, power generation, refinery, water/wastewater, midstream oil & gas, and other energy transition markets. We are a key part of helping meet the global demand for environmental and equipment protection through our highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation & filtration (gas & water), and dampers & expansion joints.

Industrial Process Solutions segment: Our Industrial Process Solutions segment serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. We protect the air we collectively breathe, maintain clean and safe operations for employees, lower energy consumption, minimize waste

for customers, and ensure they meet regulatory compliance standards for toxic emissions, fumes, volatile organic compounds and odors through our platforms including duct & installation, industrial air, and fluid handling.

The financial segment information is presented in the following tables:

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2022		2021		2022		2021
Net sales (less intra-, inter-segment sales)
Engineered Systems segment	$	67,333	$	43,360	$	124,308	$	85,417
Industrial Process Solutions segment		38,042		35,320		73,503		65,155
Net sales	$	105,375	$	78,680	$	197,811	$	150,572

	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2022			2021			2022			2021
Income from operations
Engineered Systems segment	$	9,006		$	5,634		$	15,476		$	11,804
Industrial Process Solutions segment		5,482			4,441			9,621			8,263
Corporate and Other(1)		(8,742	)		(7,930	)		(14,147	)		(14,868	)
Income from operations	$	5,746		$	2,145		$	10,950		$	5,199

(1)Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses.

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2022		2021		2022		2021
Property and equipment additions
Engineered Systems segment	$	27	$	55	$	32	$	64
Industrial Process Solutions segment		340		172		412		362
Corporate and Other		400		278		988		571
Property and equipment additions	$	767	$	505	$	1,432	$	997

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2022		2021		2022		2021
Depreciation and amortization
Engineered Systems segment	$	960	$	1,070	$	1,855	$	2,137
Industrial Process Solutions segment		1,009		1,073		2,059		2,141
Corporate and Other		410		328		754		628
Depreciation and amortization	$	2,379	$	2,471	$	4,668	$	4,906

(dollars in thousands)	June 30, 2022		December 31, 2021
Identifiable assets
Engineered Systems segment	$	315,743	$	262,558
Industrial Process Solutions segment		152,689		141,975
Corporate and Other(2)		13,297		11,664
Identifiable assets	$	481,729	$	416,197

(2)Corporate and Other assets consist primarily of cash and income tax related assets.

(dollars in thousands)	June 30, 2022		December 31, 2021
Goodwill
Engineered Systems segment	$	114,797	$	99,303
Industrial Process Solutions segment		70,998		61,880
Goodwill	$	185,795	$	161,183

Intra-segment and Inter-segment Revenues

The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

	Three months ended June 30, 2022
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	70,754	$	(3,231	)	$	(190	)	$	—		$	67,333
Industrial Process Solutions segment		39,901		(1,717	)		—			(142	)		38,042
Net sales	$	110,655	$	(4,948	)	$	(190	)	$	(142	)	$	105,375

	Three months ended June 30, 2021
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	47,069	$	(3,513	)	$	(196	)	$	—		$	43,360
Industrial Process Solutions segment		41,245		(5,281	)		—			(644	)		35,320
Net sales	$	88,314	$	(8,794	)	$	(196	)	$	(644	)	$	78,680

	Six months ended June 30, 2022
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	132,354	$	(7,789	)	$	(257	)	$	—		$	124,308
Industrial Process Solutions segment		77,043		(3,342	)		—			(198	)		73,503
Net sales	$	209,397	$	(11,131	)	$	(257	)	$	(198	)	$	197,811

	Six months ended June 30, 2021
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	91,545	$	(5,887	)	$	(241	)	$	—		$	85,417
Industrial Process Solutions segment		74,178		(8,055	)		—			(968	)		65,155
Net sales	$	165,723	$	(13,942	)	$	(241	)	$	(968	)	$	150,572