XML 44 R25.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment

15. Segment

We are engaged in the manufacture and sale of nitrogen based chemical products. We manufacture and distribute products in four facilities; three of which we own and one of which we operate on behalf of a third party. Please see "Nature of business" in Note 1-Summary of Significant Accounting Policies for a description of our products and customers.

The Company is managed on a consolidated basis with a single reportable segment, chemical manufacturing, which is not an aggregation of individual operating segments. Our segment determination is based primarily on our approach in allocating resources, which is driven by the objective of maximizing profit to the consolidated entity. We do not have business activities outside of our single reportable segment. Hence, we manage our entire company on the same basis as our single reportable segment.

We have determined that the CODM function is held by our Chief Executive Officer, Mark Behrman, and our Chief Financial Officer, Cheryl Maguire.

Our measure of segment profit that is most consistent with U.S. GAAP measurement principles is consolidated net income, which our CODM uses to assess performance and allocate resources. The accounting policies for our single reportable segment are the same as those for the Company as a whole, which are described in “Note 1 – Summary of Significant Accounting Policies”.

The CODM uses the segment profit measure to assess actual versus forecasted performance, determine incentive compensation, evaluate growth opportunities and to make decisions such as whether and when to invest profits back into the business.

Information about reported segment revenue, measures of a segment’s profit or loss, significant segment expenses, and measure of a segment's assets:

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In Thousands)

 

Net sales

 

$

522,400

 

 

$

593,709

 

 

$

901,711

 

Less:

 

 

 

 

 

 

 

 

 

Cost of sales excluding depreciation, amortization
  and turnaround expense

 

 

362,562

 

 

 

436,634

 

 

 

457,327

 

Depreciation and amortization

 

 

74,260

 

 

 

68,385

 

 

 

66,782

 

Turnaround expense

 

 

37,781

 

 

 

2,430

 

 

 

29,235

 

    Total cost of sales

 

 

474,603

 

 

 

507,449

 

 

 

553,344

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

Wages and benefits

 

 

23,191

 

 

 

20,403

 

 

 

18,222

 

   Other selling general and administrative

 

 

18,576

 

 

 

16,177

 

 

 

21,206

 

Total selling general and administrative

 

 

41,767

 

 

 

36,580

 

 

 

39,428

 

Interest expense

 

 

34,452

 

 

 

41,136

 

 

 

46,827

 

(Gain) loss on extinguishments of debt

 

 

(3,013

)

 

 

(8,644

)

 

 

113

 

Loss from asset write-down and disposals

 

 

11,703

 

 

 

3,613

 

 

 

1,219

 

Income tax (benefit) provision

 

 

(6,684

)

 

 

5,973

 

 

 

39,174

 

Other segment items (a)

 

 

(11,075

)

 

 

(20,321

)

 

 

(8,741

)

Segment net (loss) income

 

 

(19,353

)

 

 

27,923

 

 

 

230,347

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of profit or loss

 

 

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

—

 

 

 

—

 

 

 

—

 

Consolidated net (loss) income

 

$

(19,353

)

 

$

27,923

 

 

$

230,347

 

_____________________________

(a) In 2024 and 2023, amount consisted primarily of interest and sublease income. In 2022, amount consisted primarily of interest income and proceeds from an insurance settlement.

The measure of our chemical business assets is reported on the balance sheet as total consolidated assets.

All our long-lived assets are located in the United States and substantially all net sales are to customers in the United States.

In 2024, 2023 and 2022 we had one customer with net sales exceeding more than 10% our total net sales. Net sales to the single customer were 16%, 14% and 21% of our total net sales, in 2024, 2023 and 2022, respectively.