Business Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segment Information

16. Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines and presented in three reportable segments. The results of the segments are reviewed through to the “Income from operations” line on the Condensed Consolidated Statements of Income.

Environmental Segment

Our Environmental segment, formerly known as the Air Pollution Control segment, provides the design and manufacture of product recovery and air pollution control technologies that enable our customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. These products and solutions include chemical and biological scrubbers, fabric filters and cartridge collectors, thermal and catalytic oxidation systems, cyclones, separators, gas absorbers and industrial ventilation systems. This segment also provides component parts for industrial air systems and provides cost effective alternatives to traditional duct components, as well as custom metal engineered fabrication services. These products and services are applicable to a wide variety of industries. During 2015, the Company concluded that changing the name of this segment was appropriate to more accurately describe the long-term goals of the Company in conjunction with the products and services offered within the segment.

Energy Segment

Our Energy segment provides customized solutions for the power and petrochemical industry. This includes gas turbine exhaust systems, dampers and diverters, gas and liquid separation and filtration equipment, selective catalytic reduction (“SCR”) and selective non-catalytic reduction (“SNCR”) systems, acoustical components and silencers, secondary separators (nuclear plant reactor vessels) and expansion joints, the design and manufacture of technologies for flue gas and diverter dampers, non-metallic expansion joints, natural gas turbine exhaust systems, and silencer and precipitator applications, primarily for coal-fired and natural gas power plants, refining, oil production and petrochemical processing, as well as a variety of other industries.

Fluid Handling and Filtration Segment

Our Fluid Handling and Filtration segment provides the design and manufacture of high quality pump, filtration and fume exhaust solutions. This includes centrifugal pumps for corrosive, abrasive and high temperature liquids, filter products for air and liquid filtration, precious metal recovery systems, carbonate precipitators, and technologically advanced air movement and exhaust systems. These products are applicable to a wide variety of industries, particularly the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination and pharmaceutical markets.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. Interest income and expense are not included in the measure of segment profit reviewed by management. Income taxes are also not included in the measure of segment operating profit reviewed by management. The operating results of the segments are reviewed through to the “Income from operations” line on the Condensed Consolidated Statements of Income.

The financial segment information is presented in the following tables:

	Three Months Ended March 31,
(dollars in thousands)	2016			2015
Net Sales (less intra-, inter-segment sales)
Environmental Segment	$	39,122		$	41,716
Energy Segment		47,932			24,349
Fluid Handling and Filtration Segment		16,595			15,194
Corporate and Other(1)		(474	)		(274	)
Net sales	$	103,175		$	80,985

⁽¹⁾ Includes adjustment for revenue on intercompany jobs.

	Three Months Ended March 31,
(dollars in thousands)	2016			2015
Income from Operations
Environmental Segment	$	4,746		$	4,018
Energy Segment		5,196			420
Fluid Handling and Filtration Segment		3,198			2,956
Corporate and Other(2)		(6,920	)		(3,817	)
Eliminations		(413	)		(598	)
Income from operations	$	5,807		$	2,979

⁽²⁾ Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.

	Three Months Ended March 31,
(dollars in thousands)	2016		2015
Property and Equipment Additions
Environmental Segment	$	113	$	64
Energy Segment		86		40
Fluid Handling and Filtration Segment		9		5
Corporate and Other		4		10
Property and equipment additions	$	212	$	119

	Three Months Ended March 31,
(dollars in thousands)	2016		2015
Depreciation and Amortization
Environmental Segment	$	967	$	1,153
Energy Segment		2,802		671
Fluid Handling and Filtration Segment		1,394		1,596
Corporate and Other		32		32
Depreciation and Amortization	$	5,195	$	3,452

(dollars in thousands)	March 31, 2016		December 31, 2015
Identifiable Assets
Environmental Segment	$	126,110	$	135,171
Energy Segment		278,360		283,002
Fluid Handling and Filtration Segment		160,286		161,394
Corporate and Other(3)		17,142		19,252
Identifiable Assets	$	581,898	$	598,819

⁽³⁾ Corporate assets primarily consist of cash and income tax related assets.

(dollars in thousands)	March 31, 2016		December 31, 2015
Goodwill
Environmental Segment	$	55,031	$	55,031
Energy Segment		73,629		72,075
Fluid Handling and Filtration Segment		93,057		93,057
Goodwill	$	221,717	$	220,163

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 March 31, 2016
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other			NetSalesto Outside Customers
Net Sales
Environmental Segment	$	42,053	$	(1,754	)	$	—		$	(1,040	)	$	(137	)	$	—		$	39,122
Energy Segment		48,581		(491	)		(158	)		—			—			—			47,932
Fluid Handling and Filtration Segment		17,012		(403	)		(14	)		—			—			—			16,595
Corporate and Other(4)		—		—			—			—			—			(474	)		(474	)
Net Sales	$	107,646	$	(2,648	)	$	(172	)	$	(1,040	)	$	(137	)	$	(474	)	$	103,175

	Three Months Ended March 31, 2015
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF		Corp and Other			NetSalesto Outside Customers
Net Sales
Environmental Segment	$	43,557	$	(1,807	)	$	—		$	(34	)	$	—	$	—		$	41,716
Energy Segment		25,081		(695	)		(37	)		—			—		—			24,349
Fluid Handling and Filtration Segment		15,734		(452	)		(88	)		—			—		—			15,194
Corporate and Other(4)		—		—			—			—			—		(274	)		(274	)
Net Sales	$	84,372	$	(2,954	)	$	(125	)	$	(34	)	$	—	$	(274	)	$	80,985

⁽⁴⁾ Includes adjustment for revenue on intercompany jobs.