XML 33 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2012
SEGMENT REPORTING  
SEGMENT REPORTING

 

 

NOTE 14 — SEGMENT REPORTING

 

The Company is organized into reporting segments based on the nature of the products and services offered and business activities from which it earns revenues and incurs expenses for which discrete financial information is available and regularly reviewed by the Company’s chief operating decision maker. The Company’s segments and their product and service offerings are summarized below:

 

Towers and Weldments

 

The Company manufactures towers for wind turbines, specifically the large and heavier wind towers that are designed for 2 megawatt (“MW”) and larger wind turbines. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of approximately 500 towers, sufficient to support turbines generating more than 1,200 MW of power. This product segment also encompasses the manufacture of specialty fabrications and specialty weldments for mining and other industrial customers.

 

Gearing

 

The Company engineers, builds and remanufactures precision gears and gearing systems for oil and gas, wind, mining and other industrial applications. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment in Neville Island, Pennsylvania.

 

Services

 

The Company offers a comprehensive range of services, primarily to wind farm developers and operators. The Company specializes in non-routine maintenance services for both kilowatt and megawatt turbines. The Company also offers comprehensive field services to the wind industry. The Company is increasingly focusing its efforts on the identification and/or development of product and service offerings which will improve the reliability and efficiency of wind turbines, and therefore enhance the economic benefits to its customers. The Company provides wind services across the U.S., with primary service locations in South Dakota and Texas. In February 2011, the Company put into operation its dedicated drivetrain service center in Abilene, Texas, which is focused on servicing the growing installed base of MW wind turbines as they come off warranty and, to a limited extent, industrial gearboxes requiring precision repair and testing.

 

Corporate and Other

 

“Corporate and Other” is comprised of adjustments to reconcile segment results to consolidated results, which primarily includes corporate administrative expenses and intercompany eliminations.

 

Summary financial information by reportable segment for the three months ended March 31, 2012 and 2011 was as follows:

 

 

 

Revenues

 

Operating (Loss) Profit

 

 

 

For the Three Months Ended March 31,

 

For the Three Months Ended March 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Segments:

 

 

 

 

 

 

 

 

 

Towers and Weldments

 

$

35,169

 

$

28,170

 

$

1,005

 

$

2,420

 

Gearing

 

16,032

 

13,553

 

(1,121

)

(2,397

)

Services

 

3,442

 

1,828

 

(1,623

)

(1,354

)

Corporate and Other (1)

 

(200

)

(21

)

(2,202

)

(2,642

)

 

 

$

54,443

 

$

43,530

 

$

(3,941

)

$

(3,973

)

 

 

 

Depreciation and Amortization

 

Capital Expenditures

 

 

 

For the Three Months Ended March 31,

 

For the Three Months Ended March 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

Segments:

 

 

 

 

 

 

 

 

 

Towers and Weldments

 

$

876

 

$

879

 

$

31

 

$

105

 

Gearing

 

2,672

 

2,522

 

365

 

262

 

Services

 

385

 

56

 

242

 

1,995

 

Corporate and Other (1)

 

17

 

44

 

77

 

18

 

 

 

$

3,950

 

$

3,501

 

$

715

 

$

2,380

 

 

 

 

Total Assets as of

 

 

 

March 31,

 

December 31,

 

 

 

2012

 

2011

 

Segments:

 

 

 

 

 

Towers and Weldments

 

$

73,832

 

$

69,235

 

Gearing

 

72,825

 

72,699

 

Services

 

15,070

 

16,743

 

Assets held for sale

 

8,050

 

8,052

 

Corporate and Other (1)

 

3,029

 

6,162

 

 

 

$

172,806

 

$

172,891

 

 

(1) “Corporate and Other” includes the assets and selling, general and administrative expenses of the Company’s corporate office, in addition to intercompany eliminations.