XML 39 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company’s products and operations are managed and reported in two operating segments: Fire Safety and Specialty Products.
The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company’s retardant and foam products.
The Specialty Products segment produces and sells P2S5 used in several end markets and applications, including lubricant additives, various agricultural applications, various mining applications, and emerging electric battery technologies. Within the lubricant additives end market, currently the Company’s largest end market application, P2S5 is primarily used in the production of a family of compounds called ZDDP, which is considered an essential component in the formulation of lubricating oils with its main function to provide anti-wear protection to engine components. P2S5 is also used in pesticide and mining chemicals applications.
Interest income, interest expense, other income (expense) and certain corporate operating expenses are neither allocated to the segments nor included in the measures of segment performance reviewed by the chief operating decision-maker (“CODM”). The corporate category is not considered to be a segment. The CODM is the Company's CEO.
The Company’s CODM uses the segment net sales and segment Adjusted EBITDA to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include acquisition and integration related costs, management fees and other non-recurring items.
Information related to net sales, Adjusted EBITDA, depreciation and amortization capital expenditures and assets and of the Company’s operations are summarized below (in thousands):
SuccessorPredecessor
Year Ended December 31, 2023Year Ended December 31, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
Net sales:
Fire safety$225,554 $226,583 $7,913 $253,267 
Specialty products96,554 133,922 13,110 88,048 
Total$322,108 $360,505 $21,023 $341,315 
Adjusted EBITDA:
Fire safety$76,214 $77,365 $(3,696)$121,589 
Specialty products20,573 48,026 1,838 21,703 
Total segment Adjusted EBITDA96,787 125,391 (1,858)143,292 
Less:
Depreciation and amortization64,855 65,795 9,379 52,000 
Interest and financing expense41,378 42,585 6,352 39,087 
Founders advisory fees - related party(108,481)(117,302)652,990 — 
Intangible impairment40,738 — — — 
Non-recurring expenses4,046 6,885 5,580 4,845 
Share-based compensation expense1,596 14,649 4,821 156 
Non-cash purchase accounting impact— 24,796 6,125 — 
(Gain) loss on contingent earn-out(7,273)(12,706)198 2,965 
Management fees— — — 1,073 
Contingent future payments— — — 4,375 
Unrealized foreign currency (gain) loss(1,655)3,462 1,006 4,026 
Income (loss) before income taxes$61,583 $97,227 $(688,309)$34,765 
Depreciation and amortization:
Fire safety$51,178 $51,299 $7,418 $36,994 
Specialty products13,677 14,496 1,961 15,006 
Total$64,855 $65,795 $9,379 $52,000 
December 31, 2023December 31, 2022
Assets:
Fire safety$1,837,146 $1,958,633 
Specialty products478,276 497,983 
Total$2,315,422 $2,456,616 
Net sales by geographical area is as follows (in thousands):
SuccessorPredecessor
Year Ended December 31, 2023Year Ended December 31, 2022
November 9, 2021
Through
December 31, 2021
January 1, 2021
Through
November 8, 2021
United States65 %74 %52 %75 %
Canada14 5 1 7 
Other international sales (1)
21 21 47 18 
Total net sales100 %100 %100 %100 %
(1)    In the 2021 Successor Period, Spain represented 11% of sales due to the shortened reporting period. Except for Canada, the Company had no other operations in any individual international country that represented more than 10% of sales in the years ended December 31, 2023 and 2022, 2021 Successor Period and 2021 Predecessor Period.
Property, plant and equipment, net by geographical area consisted of the following (in thousands):
December 31, 2023December 31, 2022
United States$38,709 $37,390 
Canada2,303 2,594 
Germany14,376 14,802 
Other foreign jurisdictions4,014 4,060 
Total property, plant and equipment, net$59,402 $58,846