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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 4 – 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 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 income (loss) before income taxes is as follows:

 

 

 

Three Months Ended

 

 

 

March 31, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

90,174

 

 

$

6,116

 

 

$

-

 

 

$

96,290

 

Cost of sales

 

 

78,065

 

 

 

3,831

 

 

 

-

 

 

 

81,896

 

Gross profit

 

$

12,109

 

 

$

2,285

 

 

$

-

 

 

$

14,394

 

Other segment items (1)

 

 

357

 

 

 

566

 

 

 

9,600

 

 

 

10,523

 

Operating income (loss)

 

$

11,752

 

 

$

1,719

 

 

$

(9,600

)

 

$

3,871

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(4,336

)

Gain on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

52,888

 

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(139

)

Consolidated income before income taxes

 

 

 

 

 

 

 

 

 

 

$

52,284

 

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

 

 

 

Three Months Ended

 

 

 

March 31, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

155,728

 

 

$

5,330

 

 

$

-

 

 

$

161,058

 

Cost of sales

 

 

146,987

 

 

 

2,668

 

 

 

-

 

 

 

149,655

 

Gross profit

 

$

8,741

 

 

$

2,662

 

 

$

-

 

 

$

11,403

 

Other segment items (2)

 

 

463

 

 

 

471

 

 

 

6,559

 

 

 

7,493

 

Operating income (loss)

 

$

8,278

 

 

$

2,191

 

 

$

(6,559

)

 

$

3,910

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(2,391

)

Loss on change in fair market value of Warrant Liability

 

 

 

 

 

 

 

 

 

 

 

(15,653

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(14

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(14,148

)

 

(2) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

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

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

Depreciation and amortization:

 

 

 

 

 

 

Manufacturing

 

$

1,365

 

 

$

1,273

 

Aftermarket

 

 

36

 

 

 

49

 

Corporate

 

 

95

 

 

 

74

 

Consolidated depreciation and amortization

 

$

1,496

 

 

$

1,396

 

Capital expenditures:

 

 

 

 

 

 

Manufacturing

 

$

285

 

 

$

921

 

Corporate

 

 

45

 

 

 

45

 

Consolidated capital expenditures

 

$

330

 

 

$

966

 

 

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:

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

179,230

 

 

$

165,702

 

Aftermarket

 

 

10,776

 

 

 

11,014

 

Corporate

 

 

59,673

 

 

 

46,361

 

Total operating assets

 

 

249,679

 

 

 

223,077

 

Consolidated income taxes receivable

 

 

789

 

 

 

1,139

 

Consolidated assets

 

$

250,468

 

 

$

224,216

 

 

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

 

Geographic Information

 

 

Revenues

 

 

Long Lived Assets (a)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

March 31,

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

96,290

 

 

$

161,058

 

 

$

3,658

 

 

$

3,856

 

Mexico

 

 

-

 

 

 

-

 

 

 

71,859

 

 

 

73,755

 

Total

 

$

96,290

 

 

$

161,058

 

 

$

75,517

 

 

$

77,611

 

 

 

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