Business Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Business Segment Information

15. 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 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:

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 through our highly engineered and tailored emissions management, silencers and separation solutions and services. Our offerings improve air quality and solves fluid handling needs with market leading technologies, efficiently designed, and customized solutions for the power generation, oil & gas, and petrochemical industries.

Industrial Solutions segment:  Our Industrial Solutions segment serves the Air 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 clean air pollution control, collection and ventilation technologies improve air quality with a compelling solution 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, automotive, 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 June 30,				Six months ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Net Sales (less intra-, inter-segment sales)
Energy Solutions Segment	$	49,074	$	50,572	$	99,720	$	105,760
Industrial Solutions Segment		16,664		20,083		37,020		38,936
Fluid Handling Solutions Segment		9,432		10,524		18,916		22,494
Net sales	$	75,170	$	81,179	$	155,656	$	167,190

	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2020			2019			2020			2019
Income from Operations
Energy Solutions Segment	$	8,646		$	6,351		$	17,203		$	15,642
Industrial Solutions Segment		19			515			1,492			1,117
Fluid Handling Solutions Segment		1,817			1,481			3,440			3,839
Corporate and Other(1)		(6,087	)		(6,329	)		(13,502	)		(13,691	)
Income from operations	$	4,395		$	2,018		$	8,633		$	6,907

⁽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)	2020		2019		2020		2019
Property and Equipment Additions
Energy Solutions Segment	$	101	$	111	$	298	$	161
Industrial Solutions Segment		55		102		215		163
Fluid Handling Solutions Segment		135		337		554		489
Corporate and Other		725		229		925		388
Property and equipment additions	$	1,016	$	779	$	1,992	$	1,201

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Depreciation and Amortization
Energy Solutions Segment	$	1,224	$	1,561	$	2,445	$	3,141
Industrial Solutions Segment		334		337		648		671
Fluid Handling Solutions Segment		649		734		1,263		1,472
Corporate and Other		245		117		292		236
Depreciation and amortization	$	2,452	$	2,749	$	4,648	$	5,520

(dollars in thousands)	June 30, 2020		December 31, 2019
Identifiable Assets
Energy Solutions Segment	$	260,184	$	254,752
Industrial Solutions Segment		74,303		64,725
Fluid Handling Solutions Segment		68,653		71,572
Corporate and Other(2)		15,252		17,588
Identifiable assets	$	418,392	$	408,637

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

(dollars in thousands)	June 30, 2020		December 31, 2019
Goodwill
Energy Solutions Segment	$	97,072	$	97,007
Industrial Solutions Segment		30,458		23,436
Fluid Handling Solutions Segment		31,577		31,577
Goodwill	$	159,107	$	152,020

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, 2020
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	52,369	$	(2,984	)	$	(106	)	$	—		$	(205	)	$	49,074
Industrial Solutions Segment		20,809		(3,738	)		—			(407	)		—			16,664
Fluid Handling Solutions Segment		9,629		(190	)		(7	)		—			—			9,432
Net Sales	$	82,807	$	(6,912	)	$	(113	)	$	(407	)	$	(205	)	$	75,170

	Three months ended June 30, 2019
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	51,656	$	(973	)	$	(111	)	$	—		$	—		$	50,572
Industrial Solutions Segment		22,702		(1,800	)		—			(812	)		(7	)		20,083
Fluid Handling Solutions Segment		10,950		(340	)		(86	)		—			—			10,524
Net Sales	$	85,308	$	(3,113	)	$	(197	)	$	(812	)	$	(7	)	$	81,179

	Six months ended June 30, 2020
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	107,978	$	(7,790	)	$	(229	)	$	—		$	(239	)	$	99,720
Industrial Solutions Segment		44,950		(7,124	)		—			(791	)		(15	)		37,020
Fluid Handling Solutions Segment		19,378		(448	)		(14	)		—			—			18,916
Net Sales	$	172,306	$	(15,362	)	$	(243	)	$	(791	)	$	(254	)	$	155,656

	Six months ended June 30, 2019
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	107,806	$	(1,864	)	$	(170	)	$	—		$	(12	)	$	105,760
Industrial Solutions Segment		44,524		(3,977	)		—			(1,558	)		(53	)		38,936
Fluid Handling Solutions Segment		23,366		(734	)		(138	)		—			—			22,494
Net Sales	$	175,696	$	(6,575	)	$	(308	)	$	(1,558	)	$	(65	)	$	167,190