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Business Segments | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available. Operating segments are evaluated on their segment profit contribution to the Company’s consolidated results. Other income and expenses, interest, income taxes, and certain other items are managed on a consolidated basis. The Company’s segment accounting policies are described in Note 2 Business Segments of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K/A for the year ended December 31, 2023. The Company is organized and operates in two reporting segments: Rail, Technologies, and Services (“Rail”), and Infrastructure Solutions (“Infrastructure”). Effective for the quarter and year ended December 31, 2023, the Company made certain organizational changes that led to the conclusion that it will operate under two reporting segments as opposed to the three reporting segments it has operated under historically. As such, the Company has restated segment information for the historical periods presented herein to conform to the current presentation. The Infrastructure business comprises both the historic Precast Concrete Products and Steel Products and Measurement (since renamed “Steel Products”) reporting segments. The operating results of the Company’s reportable segments were as follows for the periods presented:
|  | Three Months Ended June 30, 2024 |  | Three Months Ended June 30, 2023
|  | Net Sales |  | Segment Operating Income |  | Net Sales |  | Segment Operating Income
Rail, Technologies, and Services |  | $ | 85,594 |  |  | $ | 5,501 |  |  | $ | 91,616 |  |  | $ | 6,971 |
Infrastructure Solutions |  | 55,202 |  |  | 3,623 |  |  | 56,418 |  |  | 2,773 |
Total |  | $ | 140,796 |  |  | $ | 9,124 |  |  | $ | 148,034 |  |  | $ | 9,744 |
|  | Six Months Ended June 30, 2024 |  | Six Months Ended June 30, 2023
|  | Net Sales |  | Segment Operating Income |  | Net Sales |  | Segment Operating Income
|  |  |  | (As Restated) |  |  |  |
Rail, Technologies, and Services |  | $ | 168,217 |  |  | $ | 12,279 |  |  | $ | 156,000 |  |  | $ | 9,365 |
Infrastructure Solutions |  | 96,899 |  |  | 2,235 |  |  | 107,522 |  |  | 2,433 |
Total |  | $ | 265,116 |  |  | $ | 14,514 |  |  | $ | 263,522 |  |  | $ | 11,798 |
Segment operating income, as shown above, includes allocated corporate operating expenses. Allocated corporate operating expenses include costs associated with central services such as quality, logistics, environmental health and safety, information technology, insurance, and human resources. Other corporate functional costs that are associated with the operating segments are also allocated to the segments such as finance, marketing, credit and collections, and treasury functions. Operating expenses related to corporate headquarter functions were allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies found in Note 1 Significant Accounting Policies of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K/A for the year ended December 31, 2023. During the quarter, the Company sold an ancillary property within the Steel Products business unit for total proceeds of $1,300 generating an $815 gain on sale recorded in “Cost of goods sold” for the three months ended June 30, 2024 which has been included in the Infrastructure segment’s operating income. Certain corporate costs are separately managed on a consolidated basis and are not allocated to the operating segments. These corporate costs include public company costs such as listing fees, audit fees, compliance costs, and Board of Directors fees. Additionally, certain corporate executive management costs, including costs of the corporate executive leadership team and corporate management stock-based compensation expenses are not allocated to the operating segments. Finally, interest expense, income taxes, and certain other items included in other income and expense which are managed on a consolidated basis are not allocated to the operating segments. During the six months ended June 30, 2024, the Company sold a former joint venture facility located in Magnolia, Texas generating a $3,477 gain on sale recorded in “(Gain) on sale of former joint venture facility” which is included as a component of corporate operating income. The following table demonstrates a reconciliation of reportable segment net profit to the Company’s consolidated total for the periods presented:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
|  |  |  |  |  | (As Restated) |  |
Income from operations: |  |  |  |  |  |  |  |
Total segment operating income |  | $ | 9,124 |  |  | $ | 9,744 |  |  | $ | 14,514 |  |  | $ | 11,798 |
Gain on sale of former joint venture facility |  | — |  |  | — |  |  | 3,477 |  |  | — |
Interest expense - net |  | (1,493) |  |  | (1,574) |  |  | (2,618) |  |  | (2,962) |
Other income (expense) - net |  | 84 |  |  | (1,084) |  |  | 337 |  |  | (2,933) |
Public company costs |  | (1,621) |  |  | (1,217) |  |  | (2,840) |  |  | (1,873) |
Corporate executive management costs |  | (1,885) |  |  | (1,155) |  |  | (3,292) |  |  | (1,521) |
Corporate management stock-based compensation |  | (880) |  |  | (604) |  |  | (1,479) |  |  | (1,148) |
Other |  | (166) |  |  | (54) |  |  | (242) |  |  | (17) |
Income before income taxes |  | $ | 3,163 |  |  | $ | 4,056 |  |  | $ | 7,857 |  |  | $ | 1,344 |
Depreciation/Amortization: |  |  |  |  |  |  |  |
Total segment depreciation/amortization |  | $ | 3,018 |  |  | $ | 3,412 |  |  | $ | 6,151 |  |  | $ | 6,841 |
Corporate depreciation/amortization |  | 467 |  |  | 447 |  |  | 925 |  |  | 888 |
Depreciation/amortization |  | $ | 3,485 |  |  | $ | 3,859 |  |  | $ | 7,076 |  |  | $ | 7,729 |
Expenditures for Long-Lived Assets: |  |  |  |  |  |  |  |
Total segment expenditures for long-lived assets |  | $ | 1,480 |  |  | $ | 708 |  |  | $ | 4,049 |  |  | $ | 1,066 |
Corporate expenditures for long-lived assets |  | 574 |  |  | 88 |  |  | 717 |  |  | 429 |
Expenditures for long-lived assets |  | $ | 2,054 |  |  | $ | 796 |  |  | $ | 4,766 |  |  | $ | 1,495 |
The following table illustrates assets of the Company by reportable segment for the periods presented:
|  | June 30, 2024 |  | December 31, 2023
Rail, Technologies, and Services |  | $ | 174,486 |  |  | $ | 156,638 |
Infrastructure Solutions |  | 129,769 |  |  | 130,247 |
Unallocated corporate assets |  | 29,006 |  |  | 25,516 |
Total |  | $ | 333,261 |  |  | $ | 312,401 |
On March 30, 2023, the Company sold substantially all the operating assets of its Chemtec Energy Services LLC (“Chemtec”) business for $5,344 in proceeds generating a $2,065 loss on sale, recorded in “Other (income) expense - net” for the six months ended June 30, 2023. The Chemtec business was reported in the Steel Products business unit in the Infrastructure segment. On June 30, 2023, the Company sold substantially all the operating assets of the prestressed concrete railroad tie business operated by its wholly-owned subsidiary, CXT Incorporated (“Ties”), located in Spokane, WA, for $2,362 in proceeds, generating a $1,009 loss on the sale, which was recorded in “Other expense (income) - net” for the three and six months ended June 30, 2023. The Ties business was reported in the Rail Products business unit within the Rail segment. On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line (“Bridge Exit”) which was reported in the Steel Products business unit within the Infrastructure segment. The decision to exit the bridge grid deck product line was a result of a weak bridge grid deck market condition and outlook due to customer adoption of newer technologies replacing the grid deck solution. The Company continues to operate its bridge forms product line which is a newer technology and not subject to the same challenging market conditions. The Bedford, PA based operations supporting the discontinued bridge grid deck product line expect to complete any remaining customer obligations during 2024. For the three months ended June 30, 2024 and 2023, the discontinued product line had $1,157 and $1,975 in sales, respectively. For the six months ended June 30, 2024 and 2023, the discontinued product line had $1,967 and $3,466 in sales, respectively. During the six months ended June 30, 2024, the Company incurred an immaterial amount of exit costs, all of which were personnel expenses. The Company does not expect to incur additional material exit costs in the remainder of 2024. Cumulatively, the Company has incurred a total of $1,476 in exit costs for the Bridge Exit, which included $474 in inventory write-downs, $740 in personnel expenses, which were recorded in “Cost of goods sold,” and $262 in other exit costs, which were recorded in “Selling and administrative expenses,” the majority of which were incurred in the last six months of 2023. The majority of cash payments were made in early 2024. On November 17, 2023, the Company acquired the operating assets of Cougar Mountain Precast, LLC (“Cougar”), located in Caldwell, Idaho, which is a licensed manufacturer of Redi-Rock and natural concrete products for $1,644, subject to hold back payments, to be paid over the next twelve months or utilized to satisfy post-close working capital adjustments or indemnity claims. Cougar has been included in the Precast Concrete Products business unit within the Infrastructure segment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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