SEGMENT REPORTING

12 Months Ended

Jan. 31, 2025

SEGMENT REPORTING

SEGMENT REPORTING

14. SEGMENT REPORTING

Domestic and international sales from continuing operations are as follows in millions of dollars:

	2025		2024
Domestic	$	60.4	$	55.3
International		106.8		69.4
Total	$	167.2	$	124.7

The Company is organized into seven geographical operating segments that are based on management responsibilities: US Operations (including Corporate), Europe, Mexico, Asia, Canada, Latin America and Other Foreign. 

The Company adopted ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures for the year ended January 31, 2025 and applied it retrospectively for the prior period presented.

Gross profit and Operating profit are the measures used by the chief operating decision maker, identified as our President and Chief Executive Officer, to evaluate segment performance and identify opportunities when allocating resources.

The accounting principles applied at the reportable segment level in determining the segment measure of profit or loss are the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation.

Our US operations include a facility in Alabama (primarily the distribution to customers of the bulk of our products and the light manufacturing of our chemical, wovens, reflective, and fire products) and facilities in Iowa and Arkansas (fire services). The Company also maintains one manufacturing facility in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical suit production), a manufacturing facility in Vietnam (primarily disposable production), a manufacturing in Argentina (primarily wovens and production), a manufacturing facility in Romania (boots), a manufacturing facility in New Zealand (helmets) and two small manufacturing facilities in India. Our China and Vietnam facilities produce a significant portion of the Company’s products. We evaluate the performance of these entities based on gross profit which is defined as net sales less cost of goods sold, and operating profit, which is defined as income before income taxes, interest expense and other income and expenses. We have sales forces in the USA, Canada, Mexico, Europe, Latin America, India, Russia, Kazakhstan, Australia, New Zealand and China, which sell and distribute products shipped from the United States, Mexico, China, Vietnam or India. The table below represents information about reportable segments for the years noted therein:

	Year Ended January 31,
	2025			2024
	(in millions of dollars)
Net Sales
US Operations (including Corporate)	$	66.7		$	60.9
Europe		42.9			16.4
Mexico		7.6			6.7
Asia		53.8			46.2
Canada		10.3			9.3
Latin America		21.3			16.3
Other foreign		18.3			14.0
Less intersegment sales		(53.7	)		(45.1	)
Consolidated sales	$	167.2		$	124.7
External Sales
USA Operations (including Corporate)	$	60		$	55.3
Europe		42.1			16.3
Mexico		5.0			4.0
Asia		13.9			13.8
Canada		10.3			9.3
Latin America		21.2			16.1
Other foreign		14.3			9.9
Consolidated external sales	$	167.2		$	124.7
Intersegment Sales
USA Operations (including Corporate)	$	6.3		$	5.6
Europe (UK)		0.8			0.1
Mexico		2.6			2.7
Asia		39.9			32.4
Canada		-			-
Latin America		0.1			0.2
Other foreign		4.0			4.1
Consolidated intersegment sales	$	53.7		$	45.1

	Year Ended January 31,
	2025			2024
	(in millions of dollars)
Cost of Goods Sold:
USA Operations (including Corporate)	$	41.6		$	40.9
Europe		32.5			11.5
Mexico		7.1			6.5
Asia		41.7			36.7
Canada		6.2			4.9
Latin America		11.4			8.1
Other foreign		10.9			9.1
Less intersegment cost of goods sold		(52.9	)		(44.2	)
Consolidated cost of goods sold	$	98.5		$	73.5
Gross Profit (Loss);
USA Operations (including Corporate)	$	25.0		$	20.0
Europe		10.4			4.9
Mexico		0.6			0.2
Asia		12.1			9.5
Canada		4.1			4.4
Latin America		9.8			8.2
Other foreign		7.4			4.9
Less intersegment (profit) loss		(0.7	)		(0.9	)
Consolidated gross profit	$	68.7		$	51.2
Operating Expenses:
USA Operations (including Corporate)	$	33.4		$	23.9
Europe		12.0			4.3
Mexico		2.1			2.3
Asia		5.6			4.7
Canada		4.2			2.9
Latin America		5.4			5.4
Other foreign		6.1			2.9
Less intersegment (profit) loss		(1.4	)		(1.2	)
Consolidated operating expenses	$	67.4		$	45.2
Goodwill Impairment:
Europe	$	7.5		$	-
Other foreign		3.0			-
Goodwill impairment	$	10.5		$	-
Operating (Loss) Profit:
USA Operations (including Corporate)	$	(8.0	)	$	(3.5	)
Europe		(9.6	)		0.1
Mexico		(1.5	)		(2.1	)
Asia		6.5			4.9
Canada		(0.2	)		1.5
Latin America		4.5			2.8
Other foreign		(1.7	)		2.0
Less intersegment (profit) loss		(0.7	)		0.3
Operating (loss) profit	$	(9.3)		$	6.0

	As of January 31,
	2025			2024
	(in millions of dollars)
Total Assets:
USA Operations (including Corporate)	$	167.4		$	92.2
Europe		60.3			30.0
Mexico		13.7			12.1
Asia		48.0			51.6
Canada		6.4			8.5
Latin America		21.7			15.0
Other foreign		18.3			20.3
Less intersegment		(123.3	)		(76.0	)
Consolidated assets	$	212.5		$	153.7
Total Assets Less Intersegment:
USA Operations (including Corporate)	$	85.6		$	47.1
Europe		55.3			27.2
Mexico		11.2			10.2
Asia		21.3			29.0
Canada		4.6			8.3
Latin America		18.0			12.3
Other foreign		16.5			19.6
Consolidated assets	$	212.5		$	153.7

Total Goodwill and Intangible Assets
USA Operations (including Corporate)	$	17.1	$	0.9
Europe		22.7		14.7
Other foreign		1.9		4.9
Consolidated goodwill and intangible assets	$	41.7	$	20.5