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Note 14 - Segment Reporting
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 14— SEGMENT REPORTING 

 

The Company is organized into reporting segments based on the nature of the products 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: 

 

Heavy Fabrications

 

The Company provides large, complex and precision fabrications to customers in a broad range of industrial markets. The Company’s most significant presence is within the U.S. wind energy industry, although it has diversified into other industrial markets in order to improve capacity utilization, reduce customer concentration, and reduce exposure to uncertainty related to governmental policies currently impacting the U.S. wind energy industry. Within the U.S. wind energy industry, the Company provides steel towers and tower adapters primarily to wind turbine manufacturers. Production facilities, located in Manitowoc, Wisconsin and Abilene, Texas, are situated in close proximity to the primary U.S. domestic wind energy and equipment manufacturing hubs. The two facilities have a combined annual tower production capacity of up to approximately 550 towers (1,650 tower sections), sufficient to support turbines generating more than 1,100 megawatts of power. The Company has expanded production capabilities and leveraged manufacturing competencies, including welding, lifting capacity and stringent quality practices, into aftermarket and original equipment manufacturer (“OEM”) components utilized in surface and underground mining, construction, material handling, oil and gas (“O&G”) and other infrastructure markets.

 

Gearing 

 

The Company provides gearing and gearboxes to a broad set of customers in diverse markets including; onshore and offshore O&G fracking and drilling, surface and underground mining, wind energy, steel, material handling and other infrastructure markets. The Company has manufactured loose gearing, gearboxes and systems, and provided heat treat services for aftermarket and OEM applications for nearly a century. The Company uses an integrated manufacturing process, which includes machining and finishing processes in Cicero, Illinois, and heat treatment and gearbox repair in Neville Island, Pennsylvania.

 

Industrial Solutions 

 

The Company provides supply chain solutions, light fabrication, inventory management, kitting and assembly services, primarily serving the combined cycle natural gas turbine market, as well as other clean technology markets.

 

Corporate

 

“Corporate” includes the assets and selling, general and administrative expenses of the Company’s corporate office. “Eliminations” comprises adjustments to reconcile segment results to consolidated results. 

 

The accounting policies of the reportable segments are the same as those referenced in Note 1, “Basis of Presentation” of these condensed consolidated financial statements. Summary financial information by reportable segment for the three and nine months ended September 30, 2022 and 2021 is as follows:

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Three Months Ended September 30, 2022

                        

Revenues from external customers

 $30,640  $10,190  $4,013  $—  $—  $44,843 

Intersegment revenues

  —   —   7   —   (7)  — 

Net revenues

  30,640   10,190   4,020   —   (7)  44,843 

Operating income (loss)

  372   624   (191)  (1,322)  (3)  (520)

Depreciation and amortization

  852   477   98   59   —   1,486 

Capital expenditures

  976   64   20   —   —   1,060 

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Three Months Ended September 30, 2021

                        

Revenues from external customers

 $28,675  $7,562  $4,152  $—  $—  $40,389 

Intersegment revenues

  —   —   61   —   (61)  — 

Net revenues

  28,675   7,562   4,213   —   (61)  40,389 

Operating (loss) income

  (445)  (219)  (108)  (1,248)  23   (1,997)

Depreciation and amortization

  967   463   105   59   —   1,594 

Capital expenditures

  294   306   —   4   —   604 

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Nine Months Ended September 30, 2022

                        

Revenues from external customers

 $93,486  $30,874  $12,339  $—  $—  $136,699 

Intersegment revenues

  —   16   803   —   (819)  — 

Net revenues

  93,486   30,890   13,142   —   (819)  136,699 

Operating loss

  (11)  (73)  (368)  (4,050)  (3)  (4,505)

Depreciation and amortization

  2,593   1,507   299   182   —   4,581 

Capital expenditures

  2,176   540   38   3   —   2,757 

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Nine Months Ended September 30, 2021

                        

Revenues from external customers

 $87,277  $20,315  $12,016  $—  $—  $119,608 

Intersegment revenues

  5   —   341   —   (346)  — 

Net revenues

  87,282   20,315   12,357   —   (346)  119,608 

Operating loss

  (1,873)  (2,090)  (169)  (4,487)  —   (8,619)

Depreciation and amortization

  2,904   1,383   315   156   —   4,758 

Capital expenditures

  942   343   26   58   —   1,369 

 

  

Total Assets as of

 
  

September 30,

  

December 31,

 

Segments:

 

2022

  

2021

 

Heavy Fabrications

 $38,975  $37,131 

Gearing

  51,356   46,219 

Industrial Solutions

  11,277   10,825 

Corporate

  241,385   228,219 

Eliminations

  (216,929)  (204,347)
  $126,064  $118,047