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Business Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Business Segment Information
17. Business Segment Information

Effective January 1, 2014, the Company implemented an internal reorganization related to the integration of recent acquisitions, which resulted in three reportable segments, defined as follows:

Air Pollution Control Segment

Our Air Pollution Control Segment is comprised of Adwest Technologies, Inc., Duall Air and Odor Technologies, Busch International, Buell Energy Cyclones, Flex-Kleen Dust Collection Technologies, FKI, Kirk & Blum, and KB Duct. This segment provides the design and manufacture of product recovery and air pollution control technologies that enable our customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. These products and solutions include chemical and biological scrubbers, fabric filters and cartridge collectors, thermal and catalytic oxidation systems, cyclones, separators, gas absorbers and industrial ventilation systems. This segment also provides component parts for industrial air systems and provides cost effective alternatives to traditional duct components, as well as custom metal engineered fabrication services. These products and services are applicable to a wide variety of industries.

Energy Segment

Our Energy Segment is comprised of Aarding Thermal Acoustics, Effox-Flextor and AVC Specialists, Inc. This segment provides the design and manufacture of technologies for flue gas and diverter dampers, non-metallic expansion joints, natural gas turbine exhaust systems, and silencer and precipitator applications, primarily for coal-fired and natural gas power plants, refining, oil production and petrochemical processing, as well as a variety of other industries.

Fluid Handling and Filtration Segment

Our Fluid Handling and Filtration Segment is comprised of Met-Pro Global Pump Solutions, Mefiag Filtration Solutions, Keystone Filtration Solutions, CECO Filters and Strobic Air Corporation. This segment provides the design and manufacture of technologies including high quality centrifugal pumps for corrosive, abrasive and high temperature liquids, filter products for air and liquid filtration, as well as product recovery equipment, and technologically advanced air movement and exhaust systems. These products are applicable to a wide variety of industries, particularly the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination and pharmaceutical markets.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. Interest income and expense are not included in the measure of segment profit reviewed by management. Income taxes are also not included in the measure of segment operating profit reviewed by management. The operating results of the segments are reviewed through to the “Income from operations” line on the condensed consolidated statements of income.

The financial segment information is presented in the following table:

 

     Three months ended
March 31,		  
     2014     2013  

Net Sales (less intra-, inter-segment sales)

     

Air Pollution Control Segment

    $ 26,748      $ 20,520   

Energy Segment

      15,281        12,023   

Fluid Handling Filtration Segment

      15,495        1,645   

Corporate and Other(1)

      (354 )      173   
  

 

 

    

 

 

  

Net sales

    $ 57,170      $ 34,361   
  

 

 

    

 

 

  

 

(1)  Includes adjustment for revenue on intercompany jobs.

 

     Three months ended
March 31,		  
     2014     2013  

Income from Operations

     

Air Pollution Control Segment

    $ 3,866      $ 3,311   

Energy Segment

      2,387        2,278   

Fluid Handling Filtration Segment

      2,671        182   

Corporate and Other(2)

      (2,735 )      (2,463 ) 

Eliminations

      (697 )      30   
  

 

 

    

 

 

  

Net operating income

    $ 5,492      $ 3,338   
  

 

 

    

 

 

  

 

(2)  Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.

 

     Three months ended
March 31,		  
     2014      2013  

Property and Equipment Additions

      

Air Pollution Control Segment

    $ 136       $ 52   

Energy Segment

      34         1   

Fluid Handling Filtration Segment

      214         0   

Corporate and Other

      31         0   
  

 

 

     

 

 

  

Property and equipment additions

    $    415       $   53   
  

 

 

     

 

 

  

 

     Three months ended
March 31,		  
     2014      2013  

Depreciation and Amortization

      

Air Pollution Control Segment

    $ 395       $ 255   

Energy Segment

      655         118   

Fluid Handling Filtration Segment

      1,688         8   

Corporate and Other

      32         33   
  

 

 

     

 

 

  

Depreciation and Amortization

    $ 2,770       $ 414   
  

 

 

     

 

 

  

 

     March 31,
2014		      December 31,
2013		  

Identifiable Assets

      

Air Pollution Control Segment

    $ 76,328       $ 74,556   

Energy Segment

      65,243         76,960   

Fluid Handling Filtration Segment

      179,088         185,646   

Corporate and Other(3)

      15,148         11,374   
  

 

 

     

 

 

  

Identifiable Assets

    $ 335,807       $ 348,536   
  

 

 

     

 

 

  

 

(3)  Corporate assets primarily consist of cash and income tax related assets.

 

     March 31,
2014		      December 31,
2013		  

Goodwill

      

Air Pollution Control Segment

    $ 21,890       $ 21,690   

Energy Segment

      14,870         14,962   

Fluid Handling Filtration Segment

      96,536         95,568   

Corporate and Other

      0         0   
  

 

 

     

 

 

  

Goodwill

    $ 133,296       $ 132,220   
  

 

 

     

 

 

  

 

Intra-segment and Inter-segment Revenues

The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

 

     Three Months Ended March 31, 2014  
(In Thousands)                 Less Inter-Segment Sales        
     Total
Sales		      Intra-
Segment
Sales		     APC      Energy     FHF      Corp
and
Other		     Net Sales to
Outside
Customers		  

Net Sales

                  

Air Pollution Control Segment

    $ 28,084       $ (1,029 )    $ —         $ (307 )    $ —         $ —        $ 26,748   

Energy Segment

      16,190         (909 )      —           —          —           —          15,281   

Fluid Handling Filtration Segment

      15,840         (345 )      —           —          —           —          15,495   

Corporate and Other

      —           —          —           —          —           (354 )      (354 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net Sales

    $ 60,114       $ (2,283 )    $ —         $ (307 )    $ —         $ (354 )    $ 57,170   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

     Three Months Ended March 31, 2013  
(In Thousands)                 Less Inter-Segment Sales         
     Total
Sales		      Intra-
Segment
Sales		     APC     Energy     FHF     Corp
and
Other		      Net Sales to
Outside
Customers		  

Net Sales

                 

Air Pollution Control Segment

    $ 22,086       $ (1,156 )    $ —        $ (16 )    $ (394 )    $ —         $ 20,520   

Energy Segment

      12,054         (29 )      (2 )      —          —          —           12,023   

Fluid Handling Filtration Segment

      1,645         —          —          —          —          —           1,645   

Corporate and Other

      —           —          —          —          —          173         173   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net Sales

    $ 35,785       $ (1,185 )    $ (2 )    $ (16 )    $ (394 )    $ 173       $ 34,361