Business Segment Information

3 Months Ended

Mar. 28, 2020

The Company previously reported its financial results by combining its operating entities into three reportable operating segments: Papermaking Systems, Wood Processing Systems, and Material Handling Systems, and a separate product line, Fiber-based Products. During the first quarter of 2020, the Company realigned its reportable operating segments consistent with the Company's strategic initiatives to grow both organically and through acquisitions. Such growth and diversification have resulted in a change in the internal organization of the Company and how its chief operating decision maker makes operating decisions, assesses the performance of the business, and allocates resources. Accordingly, the Company's financial results are reported in three new reportable operating segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment consists of the Company’s fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the Company’s wood processing and stock-preparation product lines (excluding baling products); and the Material Handling segment consists of the Company’s conveying and screening, baling, and fiber-based product lines. Financial information for 2019 has been recast to conform to the new segment presentation. A description of each segment follows.

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Flow Control – Custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food processing, metals, and other industrial sectors. The Company's products include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems.


•	Industrial Processing – Equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, paper, wood products and alternative fuel industries, among others. The Company's primary products include stock preparation systems and recycling equipment, debarkers, stranders, chippers, and logging machinery.

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Material Handling – Products and engineered systems used to handle bulk and discrete materials for secondary processing or transport in the mining, aggregates, food processing, waste management, and pulp and paper industries, among others. The Company's primary products include conveying and vibratory equipment and balers. In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption.

The following table presents financial information for the Company's reportable operating segments:



	Three Months Ended
	March 28,		March 30,
(In thousands)	2020		2019
Revenue
Flow Control	$	57,149	$	61,144
Industrial Processing	64,709		72,274
Material Handling	37,269		37,898
	$	159,127	$	171,316



	Three Months Ended
	March 28,			March 30,
(In thousands)	2020			2019

Income Before Provision for Income Taxes
Flow Control	$	13,330		$	12,984
Industrial Processing	9,436			11,854
Material Handling (a)	4,134			731
Corporate (b)	(7,245		)	(6,994		)
Total operating income	19,655			18,575
Interest expense, net (c)	(2,408		)	(3,448		)
Other expense, net (c)	(32		)	(99		)
	$	17,215		$	15,028

Capital Expenditures
Flow Control	$	821		$	471
Industrial Processing	1,464			1,363
Material Handling	398			333
Corporate	3			1
	$	2,686		$	2,168

(a) Includes $4,151,000 of acquisition-related expenses in the three-month period ended March 30, 2019. Acquisition-related expenses include amortization expense associated with acquired profit in inventory and backlog and acquisition transaction costs.

(b) Corporate primarily includes general and administrative expenses.