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Segment Information
 6 Months Ended
Jun. 30, 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 (loss) income before income taxes is as follows:

 

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

110,757

 

 

$

7,866

 

 

$

-

 

 

$

118,623

 

Cost of sales

 

 

95,831

 

 

 

4,971

 

 

 

-

 

 

 

100,802

 

Gross profit

 

$

14,926

 

 

$

2,895

 

 

$

-

 

 

$

17,821

 

Other segment items (1)

 

 

402

 

 

 

510

 

 

 

9,202

 

 

 

10,114

 

Operating income (loss)

 

$

14,524

 

 

$

2,385

 

 

$

(9,202

)

 

$

7,707

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(4,382

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(47,630

)

Consolidated other income

 

 

 

 

 

 

 

 

 

 

 

3,296

 

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(41,009

)

 

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

 

 

 

Three Months Ended

 

 

 

June 30, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

142,528

 

 

$

4,888

 

 

$

-

 

 

$

147,416

 

Cost of sales

 

 

126,548

 

 

 

2,438

 

 

 

-

 

 

 

128,986

 

Gross profit

 

$

15,980

 

 

$

2,450

 

 

$

-

 

 

$

18,430

 

Other segment items (1)

 

 

(2,734

)

 

 

329

 

 

 

7,701

 

 

 

5,296

 

Operating income (loss)

 

$

18,714

 

 

$

2,121

 

 

$

(7,701

)

 

$

13,134

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(1,847

)

Gain on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

112

 

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(725

)

Consolidated income before income taxes

 

 

 

 

 

 

 

 

 

 

$

10,674

 

 

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

 

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

200,932

 

 

$

13,981

 

 

$

-

 

 

$

214,913

 

Cost of sales

 

 

173,896

 

 

 

8,802

 

 

 

-

 

 

 

182,698

 

Gross profit

 

$

27,036

 

 

$

5,179

 

 

$

-

 

 

$

32,215

 

Other segment items (1)

 

 

759

 

 

 

1,076

 

 

 

18,802

 

 

 

20,637

 

Operating income (loss)

 

$

26,277

 

 

$

4,103

 

 

$

(18,802

)

 

$

11,578

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(8,718

)

Gain on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

5,258

 

Consolidated other income

 

 

 

 

 

 

 

 

 

 

 

3,157

 

Consolidated income before income taxes

 

 

 

 

 

 

 

 

 

 

$

11,275

 

 

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

 

 

 

Six Months Ended

 

 

 

June 30, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

298,256

 

 

$

10,218

 

 

$

-

 

 

$

308,474

 

Cost of sales

 

 

273,534

 

 

 

5,107

 

 

 

-

 

 

 

278,641

 

Gross profit

 

$

24,722

 

 

$

5,111

 

 

$

-

 

 

$

29,833

 

Other segment items (1)

 

 

(2,271

)

 

 

801

 

 

 

14,259

 

 

 

12,789

 

Operating income (loss)

 

$

26,993

 

 

$

4,310

 

 

$

(14,259

)

 

$

17,044

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(4,238

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(15,541

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(739

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(3,474

)

 

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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

1,431

 

 

$

1,302

 

 

$

2,796

 

 

$

2,575

 

Aftermarket

 

 

35

 

 

 

37

 

 

 

71

 

 

 

86

 

Corporate

 

 

84

 

 

 

75

 

 

 

179

 

 

 

149

 

Consolidated depreciation and amortization

 

$

1,550

 

 

$

1,414

 

 

$

3,046

 

 

$

2,810

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

562

 

 

$

1,287

 

 

$

847

 

 

$

2,208

 

Aftermarket

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Corporate

 

 

46

 

 

 

16

 

 

 

91

 

 

 

61

 

Consolidated capital expenditures

 

$

608

 

 

$

1,303

 

 

$

938

 

 

$

2,269

 

 

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:

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

199,538

 

 

$

165,702

 

Aftermarket

 

 

11,193

 

 

 

11,014

 

Corporate

 

 

63,691

 

 

 

46,361

 

Total operating assets

 

 

274,422

 

 

 

223,077

 

Consolidated income taxes receivable

 

 

53,671

 

 

 

1,139

 

Consolidated assets

 

$

328,093

 

 

$

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

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

118,623

 

 

$

147,416

 

 

$

214,913

 

 

$

308,474

 

 

$

3,473

 

 

$

3,856

 

Mexico

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

65,656

 

 

 

73,755

 

Total

 

$

118,623

 

 

$

147,416

 

 

$

214,913

 

 

$

308,474

 

 

$

69,129

 

 

$

77,611

 

 

 

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