Segments

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segments

14. Segments

The Company, a leading manufacturer of products that protect the world from the ground up, manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker ("CODM") evaluates performance and makes resource allocation decisions. The Company's CODM is the Chief Executive Officer. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable products that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment’s products include a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, compression molded or blow molded. This segment conducts its primary operations in the United States and Canada, but also exports globally. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, construction, infrastructure and consumer, among others. Products are sold both directly to end-users and through distributors. The acquisition of Signature, as described in Note 3, is included in the Material Handling Segment.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its regional and customer-focused sales team with strategically located regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire retreaders, and government agencies.

Total sales from foreign business units were approximately $11.1 million and $9.9 million for the quarters ended March 31, 2025 and 2024, respectively.

An analysis of the Company's operations by segment, including revenue by major market is as follows:

	For the Quarter Ended March 31, 2025
	Material Handling			Distribution			Corporate			Inter-company			Consolidated
Industrial	$	61,671		$	—		$	—		$	(168	)	$	61,503
Infrastructure		27,705			—			—			—			27,705
Vehicle		26,343			—			—			—			26,343
Consumer		20,823			—			—			-			20,823
Food and beverage		21,130			—			—			—			21,130
Auto aftermarket		—			49,246			—			—			49,246
Net sales		157,672			49,246			—			(168	)		206,750
Cost of sales		102,756			35,084			—			(168	)		137,672
Selling, general and administrative expenses		21,467			13,964			9,324			—			44,755
Depreciation and amortization		3,505			727			226			—			4,458
Freight out		2,583			229			—			—			2,812
(Gain) loss on disposal of fixed assets		(20	)		423			—			—			403
Operating income (loss) (4)		27,381			(1,181	)		(9,550	)		—			16,650
Interest expense, net														7,386
Income before income taxes													$	9,264
Total assets		734,577			98,941			50,324			—			883,842
Capital additions, net		7,953			105			25			—			8,083
Depreciation and amortization (5)		8,846			824			765			—			10,435

	For the Quarter Ended March 31, 2024
	Material Handling			Distribution			Corporate			Inter-company			Consolidated
Industrial	$	53,614		$	—		$	—		$	(17	)	$	53,597
Infrastructure		19,327			—			—			—			19,327
Vehicle		29,410			—			—			—			29,410
Consumer		22,301			—			—			—			22,301
Food and beverage		27,573			—			—			—			27,573
Auto aftermarket		—			54,894			—			—			54,894
Net sales		152,225			54,894			—			(17	)		207,102
Cost of sales (2)		105,146			37,704			—			(17	)		142,833
Selling, general and administrative expenses (1) (3)		19,641			15,689			11,783			—			47,113
Depreciation and amortization		3,013			709			199			—			3,921
Freight out		2,205			218			—			—			2,423
(Gain) loss on disposal of fixed assets		(36	)		(31	)		—			—			(67	)
Operating income (loss) (4)		22,256			605			(11,982	)		—			10,879
Interest expense, net														6,079
Income before income taxes													$	4,800
Total assets		796,713			106,601			43,822			—			947,136
Capital additions, net		5,206			380			121			—			5,707
Depreciation and amortization (5)		7,525			773			430			—			8,728

(1) The Company recognized $(0.3) million of expense (income) to the estimated environmental reserve, net of probable insurance recoveries for the quarter ended March 31, 2024, as described in Note 10. Environmental charges are not included in segment results and are shown with Corporate.

(2) The Company recognized $3.1 million of non-cash inventory step-up that was amortized to Cost of sales for the quarter ended March 31, 2024, related to the reporting of inventory at fair value in conjunction with the acquisition of Signature, as described in Note 3.

(3) The Company incurred $3.4 million of acquisition related costs associated with the Signature acquisition, as described in Note 3, for the quarter ended March 31, 2024, of which $3.3 million and $0.1 million are included in Corporate and Material Handling's results, respectively.

(4) The Company incurred $2.0 million and $0.2 million of restructuring costs associated with the restructuring initiatives described in Note 4, for the quarter ended March 31, 2025 and 2024, respectively.

(5) Total depreciation and amortization inclusive of amounts within Cost of sales. Corporate depreciation and amortization includes amortization of deferred financing costs of $0.5 million and $0.2 million for the quarter ended March 31, 2025 and 2024, respectively.