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Business Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Business Segment Information

15. Business Segment Information

 

The Company’s operations are organized and reviewed by management along with its solutions or end markets that the segment serves and presented in two reportable segments. During the first quarter of 2021, management determined that a realignment of the Company’s segments was necessary to better reflect the solutions we provide, and the end markets we serve. As a result of this realignment, we combined the operating results of the prior Industrial Solutions segment and Fluid Handling Solutions segment into a single reportable segment named the Industrial Process Solutions segment. In addition, the Energy Solutions segment was renamed the Engineered Systems segment. The results of the segments are reviewed through the “Income from operations” line on the Condensed Consolidated Statements of Operations.

 

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

Engineered Systems segment: Our Engineered Systems segment, formerly known as the Energy Solutions segment, serves the power generation, refinery, water/wastewater and midstream oil & gas markets. We are a key part of helping meet the global demand for environmental and equipment protection through our highly engineered emissions management, product recovery, thermal acoustics, and water & gas separation solutions.

 

Industrial Process Solutions segment: Our Industrial Process Solutions segment is the combination of the segments formerly known as our Industrial Solutions segment and our Fluid Handling Solutions segment, which serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. We protect the air we collectively breathe, maintain clean and safe operations for employees, lower energy consumption,

minimize waste for customers, and ensure they meet regulatory compliance standards for toxic emissions, fumes, volatile organic compounds and odors.

The financial segment information is presented in the following tables:

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

44,779

 

 

$

49,709

 

 

$

130,196

 

 

$

149,429

 

Industrial Process Solutions segment

 

 

35,200

 

 

 

27,716

 

 

 

100,355

 

 

 

83,652

 

Net sales

 

$

79,979

 

 

$

77,425

 

 

$

230,551

 

 

$

233,081

 

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(Loss) income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

4,301

 

 

$

7,276

 

 

$

16,105

 

 

$

24,479

 

Industrial Process Solutions segment

 

 

2,669

 

 

 

1,539

 

 

 

10,932

 

 

 

6,471

 

Corporate and Other(1)

 

 

(7,566

)

 

 

(7,797

)

 

 

(22,434

)

 

 

(21,299

)

(Loss) income from operations

 

$

(596

)

 

$

1,018

 

 

$

4,603

 

 

$

9,651

 

 

 

(1)
Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses.

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Property and equipment additions

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

15

 

 

$

148

 

 

$

79

 

 

$

446

 

Industrial Process Solutions segment

 

 

241

 

 

 

132

 

 

 

603

 

 

 

901

 

Corporate and Other

 

 

487

 

 

 

603

 

 

 

1,058

 

 

 

1,528

 

Property and equipment additions

 

$

743

 

 

$

883

 

 

$

1,740

 

 

$

2,875

 

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

1,061

 

 

$

1,245

 

 

$

3,198

 

 

$

3,690

 

Industrial Process Solutions segment

 

 

1,070

 

 

 

1,154

 

 

 

3,212

 

 

 

3,065

 

Corporate and Other

 

 

336

 

 

 

177

 

 

 

963

 

 

 

469

 

Depreciation and amortization

 

$

2,467

 

 

$

2,576

 

 

$

7,373

 

 

$

7,224

 

 

(dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Identifiable assets

 

 

 

 

 

 

Engineered Systems segment

 

$

260,603

 

 

$

270,573

 

Industrial Process Solutions segment

 

 

147,869

 

 

 

135,204

 

Corporate and Other(2)

 

 

10,204

 

 

 

13,537

 

Identifiable assets

 

$

418,676

 

 

$

419,314

 

 

 

(2)
Corporate and Other assets consist primarily of cash and income tax related assets.

 

(dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Goodwill

 

 

 

 

 

 

Engineered Systems segment

 

$

99,558

 

 

$

99,785

 

Industrial Process Solutions segment

 

 

62,035

 

 

 

62,035

 

Goodwill

 

$

161,593

 

 

$

161,820

 

 

 

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 September 30, 2021

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

(dollars in thousands)

 

Total
Sales

 

 

Intra-
Segment
Sales

 

 

Industrial Process Solutions

 

 

Engineered Systems

 

 

Net Sales to
Outside
Customers

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

45,559

 

 

$

(472

)

 

$

(308

)

 

$

—

 

 

$

44,779

 

Industrial Process Solutions segment

 

 

35,525

 

 

 

(308

)

 

 

—

 

 

 

(17

)

 

 

35,200

 

Net sales

 

$

81,084

 

 

$

(780

)

 

$

(308

)

 

$

(17

)

 

$

79,979

 

 

 

 

Three months ended September 30, 2020

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

(dollars in thousands)

 

Total
Sales

 

 

Intra-
Segment
Sales

 

 

Industrial Process Solutions

 

 

Engineered Systems

 

 

Net Sales to
Outside
Customers

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

51,203

 

 

$

(1,071

)

 

$

(423

)

 

$

—

 

 

$

49,709

 

Industrial Process Solutions segment

 

 

30,944

 

 

 

(3,117

)

 

 

—

 

 

 

(111

)

 

 

27,716

 

Net sales

 

$

82,147

 

 

$

(4,188

)

 

$

(423

)

 

$

(111

)

 

$

77,425

 

 

 

 

Nine months ended September 30, 2021

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

(dollars in thousands)

 

Total
Sales

 

 

Intra-
Segment
Sales

 

 

Industrial Process Solutions

 

 

Engineered Systems

 

 

Net Sales to
Outside
Customers

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

137,104

 

 

$

(6,359

)

 

$

(549

)

 

$

—

 

 

$

130,196

 

Industrial Process Solutions segment

 

 

109,703

 

 

 

(8,363

)

 

 

—

 

 

 

(985

)

 

 

100,355

 

Net sales

 

$

246,807

 

 

$

(14,722

)

 

$

(549

)

 

$

(985

)

 

$

230,551

 

 

 

 

Nine months ended September 30, 2020

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

(dollars in thousands)

 

Total
Sales

 

 

Intra-
Segment
Sales

 

 

Industrial Process Solutions

 

 

Engineered Systems

 

 

Net Sales to
Outside
Customers

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Systems segment

 

$

159,181

 

 

$

(8,861

)

 

$

(891

)

 

$

—

 

 

$

149,429

 

Industrial Process Solutions segment

 

 

95,272

 

 

 

(10,718

)

 

 

—

 

 

 

(902

)

 

 

83,652

 

Net sales

 

$

254,453

 

 

$

(19,579

)

 

$

(891

)

 

$

(902

)

 

$

233,081