Supplemental Financial Statement Information

3 Months Ended

Mar. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Supplemental Financial Statement Information

Note 5 – Supplemental Financial Statement Information

Restricted Cash

The Company has agreed to maintain restricted cash of $12.5 million under agreements with outside parties. An escrow account of $12.5 million was established in conjunction with the Hisco Transaction, to be released upon Hisco meeting certain working capital and other post-closing requirements as of the one-year post-acquisition date with a balance of $3.1 million at March 31, 2024. The Company is restricted from withdrawing this balance without the prior consent of the sellers. The remaining restricted cash balance of $9.4 million represents collateral for certain borrowings under the 2023 Amended Credit Agreement, and the Company is restricted from withdrawing this balance without the prior consent of the respective lenders.

Property, Plant and Equipment, net

Components of property, plant and equipment, net were as follows:

(in thousands)	March 31, 2024		December 31, 2023
Land	$	16,772	$	16,916
Buildings and improvements	51,107		50,376
Machinery and equipment	49,413		48,844
Capitalized software	11,664		9,148
Furniture and fixtures	12,090		11,022
Vehicles	1,738		1,738
Construction in progress(1)	3,087		6,025
Total	145,871		144,069
Accumulated depreciation and amortization	(34,500)		(30,258)
Property, plant and equipment, net	$	111,371	$	113,811

(1)Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems that we expect to place in service in the next 12 months.

Depreciation expense for property, plant and equipment was $3.7 million for the first quarter of 2024 and $3.5 million for the first quarter of 2023. Amortization expense for capitalized software was $0.8 million for the first quarter of 2024 and $0.7 million for the first quarter of 2023.

Rental Equipment, net

Rental equipment, net consisted of the following:

(in thousands)	March 31, 2024		December 31, 2023
Rental equipment	$	51,735	$	52,387
Accumulated depreciation	(28,026)		(27,812)
Rental equipment, net	$	23,709	$	24,575

Depreciation expense included in cost of sales for rental equipment was $1.8 million and $2.3 million for the first quarter of 2024 and 2023, respectively. Refer to Note 4 – Revenue Recognition for a discussion on the Company’s activities as lessor.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

(in thousands)	March 31, 2024		December 31, 2023
Accrued severance and acquisition related retention bonus	$	28,450	$	21,128
Accrued compensation	17,897		25,371
Accrued and withheld taxes, other than income taxes	8,079		8,661
Accrued stock-based compensation	5,712		5,573
Accrued interest	5,036		3,301
Accrued customer rebates	4,213		5,473
Deferred acquisition payments and accrued earnout liabilities	4,163		7,513
Accrued health benefits	2,561		1,728
Deferred revenue	1,101		810
Accrued income taxes	927		1,994
Other	15,744		15,689
Total accrued expenses and other current liabilities	$	93,883	$	97,241

Other Liabilities

Other liabilities consisted of the following:

(in thousands)	March 31, 2024		December 31, 2023
Security bonus plan	$	8,189	$	8,666
Deferred compensation	11,259		11,041
Other	6,318		5,736
Total other liabilities	$	25,766	$	25,443