Business Segment Information

3 Months Ended

Mar. 31, 2019

16.	Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end market that the segment serves and are presented in three reportable segments. The results of the segments are reviewed through to the “Income (loss) from operations” line on the Consolidated Statements of Income.

During the first quarter of 2019, as a result of further evaluating the Company’s operating structure, management determined that a realignment of the Company’s segments with current customer solutions we provide and end markets we serve would help maximize growth and improve customer experience. As a result of this minor realignment, the operating results of the reportable segments Fluid Handling Solutions and Industrial Solutions have been reclassified to have their results align for the three-month periods ended March 31, 2019 and 2018.

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

Energy Solutions segment: Our Energy Solutions segment serves the Energy market, where we are a key part of helping meet the global demand for Clean Energy with products and services that support our customers with efficient solutions and technologies to keep the world clean and safe. Our offerings improve air quality and solves fluid handling needs with market leading, highly engineered, and customized solutions for the power generation, oil & gas, and petrochemical industries.

Industrial Solutions segment: Our Industrial Solutions segment serves the Industrial Pollution Control market where our aim is to address the growing need to protect the air we breathe and help our customers’ desires for sustainability upgrades beyond carbon footprint issues. Our offerings improve air quality with a compelling solution set of air pollution control technologies that enable our customers to reduce their carbon footprint, lower energy consumption, minimize waste and meet compliance targets for toxic emissions, fumes, volatile organic compounds, and industrial odors.

Fluid Handling Solutions segment: Our Fluid Handling Solutions segment offers unique pump and filtration solutions that maintain safe and clean operations in some of the most harsh and toxic environments. In this market, we provide solutions for mission-critical applications to a wide variety of industries including, but not limited to, plating and metal finishing, food and beverage, chemical, petrochemical, pharmaceutical, wastewater treatment, desalination and the aquarium & aquaculture markets.

The financial segment information is presented in the following tables:

	Three Months Ended March 31,
(dollars in thousands)	2019		2018
Net Sales (less intra-, inter-segment sales)
Energy Solutions Segment	$	55,188	$	39,973
Industrial Solutions Segment		18,853		18,448
Fluid Handling Solutions Segment		11,970		15,556
Corporate and Other⁽¹⁾		—		162
Net sales	$	86,011	$	74,139

⁽¹⁾	Includes adjustment for revenue on intercompany jobs.

	Three Months Ended March 31,
(dollars in thousands)	2019			2018
Income from Operations
Energy Solutions Segment	$	9,291		$	3,624
Industrial Solutions Segment		602			1,198
Fluid Handling Solutions Segment		2,358			3,381
Corporate and Other⁽²⁾		(7,361	)		4,533
Eliminations		—			(586	)
Income from operations	$	4,890		$	12,150

⁽²⁾

Includes gain (loss) on divestitures, net of selling costs (see Note 17 – Divestitures), corporate compensation, professional services, information technology, and other general and administrative corporate expenses. This figure excludes earnout expenses, which are recorded in the segment in which the expense occurs.

	Three Months Ended March 31,
(dollars in thousands)	2019		2018
Property and Equipment Additions
Energy Solutions Segment	$	50	$	18
Industrial Solutions Segment		61		75
Fluid Handling Solutions Segment		152		273
Corporate and Other		160		100
Property and equipment additions	$	423	$	466

	Three Months Ended March 31,
(dollars in thousands)	2019		2018
Depreciation and Amortization
Energy Solutions Segment	$	1,580	$	2,158
Industrial Solutions Segment		334		286
Fluid Handling Solutions Segment		738		990
Corporate and Other		119		63
Depreciation and amortization	$	2,771	$	3,497

(dollars in thousands)	March 31, 2019		December 31, 2018
Identifiable Assets
Energy Solutions Segment	$	261,164	$	245,842
Industrial Solutions Segment		59,058		55,582
Fluid Handling Solutions Segment		72,621		72,507
Corporate and Other⁽³⁾		3,826		18,651
Identifiable assets	$	396,669	$	392,582

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

(dollars in thousands)	March 31, 2019		December 31, 2018
Goodwill
Energy Solutions Segment	$	97,053	$	97,143
Industrial Solutions Segment		23,436		23,436
Fluid Handling Solutions Segment		31,577		31,577
Goodwill	$	152,066	$	152,156

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, 2019
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Corp and Other		Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	56,150	$	(891	)	$	(59	)		—		$	(12	)	$	—	$	55,188
Industrial Solutions Segment		21,822		(2,177	)		—			(746	)		(46	)		—		18,853
Fluid Handling Solutions Segment		12,416		(394	)		(52	)		—			—			—		11,970
Corporate and Other		—		—			—			—			—			—		—
Net Sales	$	90,388	$	(3,462	)	$	(111	)	$	(746	)	$	(58	)	$	—	$	86,011

	Three Months Ended March 31, 2018
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid		Corp and Other		Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	43,128	$	(2,469	)	$	(686	)	$	—		$	—	$	—	$	39,973
Industrial Solutions Segment		19,379		(791	)		—			(140	)		—		—		18,448
Fluid Handling Solutions Segment		16,115		(515	)		(44	)		—			—		—		15,556
Corporate and Other		—		—			—			—			—		162		162
Net Sales	$	78,622	$	(3,775	)	$	(730	)	$	(140	)	$	—	$	162	$	74,139