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Note 15 - Segment Reporting
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 15— 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 six months ended June 30, 2023 and 2022 is as follows:

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Three Months Ended June 30, 2023

                        

Revenues from external customers

 $33,944  $10,977  $5,922  $—  $—  $50,843 

Intersegment revenues

  —   —   348   —   (348)  — 

Net revenues

  33,944   10,977   6,270   —   (348)  50,843 

Operating income (loss)

  3,867   348   843   (2,845)  3   2,216 

Depreciation and amortization

  856   556   92   58   —   1,562 

Capital expenditures

  2,156   739   —   17   —   2,912 

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Three Months Ended June 30, 2022

                        

Revenues from external customers

 $35,575  $10,107  $4,330  $—  $—  $50,012 

Intersegment revenues

  —   8   719   —   (727)  — 

Net revenues

  35,575   10,115   5,049   —   (727)  50,012 

Operating income (loss)

  78   (585)  32   (1,437)  —   (1,912)

Depreciation and amortization

  862   555   98   61   —   1,576 

Capital expenditures

  718   476   9   2   —   1,205 

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Six Months Ended June 30, 2023

                        

Revenues from external customers

 $65,537  $22,943  $11,236  $—  $—  $99,716 

Intersegment revenues

  —   —   456   —   (456)  — 

Net revenues

  65,537   22,943   11,692   —   (456)  99,716 

Operating income (loss)

  6,657   929   1,465   (5,556)  3   3,498 

Depreciation and amortization

  1,714   1,152   186   115   —   3,167 

Capital expenditures

  2,818   1,124   18   17   —   3,977 

 

  

Heavy Fabrications

  

Gearing

  

Industrial Solutions

  

Corporate

  

Eliminations

  

Consolidated

 

For the Six Months Ended June 30, 2022

                        

Revenues from external customers

 $62,847  $20,684  $8,325  $—  $—  $91,856 

Intersegment revenues

  —   16   796   —   (812)  — 

Net revenues

  62,847   20,700   9,121   —   (812)  91,856 

Operating loss

  (383)  (697)  (177)  (2,728)  —   (3,985)

Depreciation and amortization

  1,741   1,031   201   122   —   3,095 

Capital expenditures

  1,200   476   18   3   —   1,697 

 

  

Total Assets as of

 
  

June 30,

  

December 31,

 

Segments:

 

2023

  

2022

 

Heavy Fabrications

 $65,149  $45,475 

Gearing

  53,205   51,944 

Industrial Solutions

  15,150   12,775 

Corporate

  70,570   62,809 

Eliminations

  (47,109)  (28,463)
  $156,965  $144,540