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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 20 – Segment Information

 

The Company’s operations consist of two operating and reportable segments, Manufacturing and Aftermarket. The Company identifies reportable segments based on differences in products and services. The Company’s Manufacturing segment includes new railcar manufacturing, used railcar sales, and major railcar conversions and rebodies. The Company’s Aftermarket segment includes the selling of forged, cast and fabricated railcar parts and supplies for all railcar types, and provides aftermarket services including safety training, railcar inspections, and preventative maintenance.

The Company’s designated Chief Operating Decision Maker (“CODM”) is our President and Chief Executive Officer. The CODM uses segment gross profit and segment operating income to allocate resources to segments during the planning and forecasting process and assess performance in a given period. Segment gross profit and segment operating income include all external revenues attributable to the segments as well as operating costs and income that management believes are directly attributable to the current production of goods and services. The Company’s management reporting package does not include interest revenue, interest expense or income taxes allocated to individual segments and these items are not considered as a component of segment operating income. Intersegment revenues were not material in any period presented.

 

A summary of segment information and reconciliation to consolidated loss before income taxes is as follows:

 

 

 

Year Ended

 

 

 

December 31, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

541,184

 

 

$

18,241

 

 

$

-

 

 

$

559,425

 

Cost of sales

 

 

482,769

 

 

 

9,614

 

 

 

-

 

 

 

492,383

 

Gross profit

 

$

58,415

 

 

$

8,627

 

 

$

-

 

 

$

67,042

 

Other segment items (1)

 

 

(1,204

)

 

 

1,455

 

 

 

29,450

 

 

 

29,701

 

Operating income (loss)

 

$

59,619

 

 

$

7,172

 

 

$

(29,450

)

 

$

37,341

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(6,850

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(99,518

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(952

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(69,979

)

 

(1) Other segment items in Manufacturing segment include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket segment and Corporate include selling, general and administrative expenses.

 

 

 

Year Ended

 

 

 

December 31, 2023

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

345,866

 

 

$

12,227

 

 

$

-

 

 

$

358,093

 

Cost of sales

 

 

308,711

 

 

 

7,619

 

 

 

-

 

 

 

316,330

 

Gross profit

 

$

37,155

 

 

$

4,608

 

 

$

-

 

 

$

41,763

 

Other segment items (2)

 

 

5,600

 

 

 

729

 

 

 

24,942

 

 

 

31,271

 

Operating income (loss)

 

$

31,555

 

 

$

3,879

 

 

$

(24,942

)

 

$

10,492

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(15,031

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(2,229

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(14,880

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(440

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(22,088

)

 

(2) Other segment items in Manufacturing segment include selling, general and administrative expenses, impairment on leased railcars and gain on sale of railcars available for lease. Other segment items in Aftermarket segment include selling, general and administrative expenses. Other segment items in Corporate include selling, general and administrative expenses and pension settlement loss.

 

A summary of segment depreciation, amortization and capital expenditures is as follows:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Depreciation and amortization:

 

 

 

 

 

 

Manufacturing

 

$

5,292

 

 

$

4,026

 

Aftermarket

 

$

158

 

 

$

283

 

Corporate

 

 

313

 

 

 

297

 

Consolidated depreciation and amortization

 

$

5,763

 

 

$

4,606

 

Capital expenditures:

 

 

 

 

 

 

Manufacturing

 

$

4,708

 

 

$

12,536

 

Aftermarket

 

$

15

 

 

$

5

 

Corporate

 

 

296

 

 

 

181

 

Consolidated capital expenditures

 

$

5,019

 

 

$

12,722

 

 

Segment assets represent operating assets and exclude intersegment accounts, deferred tax assets and income tax receivables. The Company does not allocate cash and cash equivalents to its operating segments as the Company’s treasury function is managed at the corporate level. A summary of segment assets is as follows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

165,702

 

 

$

207,093

 

Aftermarket

 

 

11,014

 

 

 

9,281

 

Corporate

 

 

46,361

 

 

 

41,877

 

Total operating assets

 

 

223,077

 

 

 

258,251

 

Consolidated income taxes receivable

 

 

1,139

 

 

 

1,208

 

Consolidated assets

 

$

224,216

 

 

$

259,459

 

 

 

A summary of revenues and long-lived assets by geographic information is as follows:

 

 

Geographic Information

 

 

Revenues

 

 

Long Lived Assets (a)

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

559,425

 

 

$

358,093

 

 

$

3,856

 

 

$

7,377

 

Mexico

 

 

-

 

 

 

-

 

 

 

73,755

 

 

 

69,826

 

Total

 

$

559,425

 

 

$

358,093

 

 

$

77,611

 

 

$

77,203

 

 

(a) Long lived assets include property plant and equipment, net, railcars available for lease, and right-of-use (ROU) assets.