Segments | 14. Segments The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker ("CODM") evaluates performance and makes resource allocation decisions. The Company's CODM is the Chief Executive Officer. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation. The Material Handling Segment manufactures a broad selection of durable plastic reusable products that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment’s products include a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, compression molded or blow molded. This segment conducts its primary operations in the United States and Canada, but also exports globally. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, construction, infrastructure and consumer, among others. Products are sold both directly to end-users and through distributors. The acquisition of Signature, as described in Note 3, is included in the Material Handling Segment. The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its regional and customer-focused sales team with strategically located regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire retreaders, and government agencies. The acquisition of Mohawk, as described in Note 3, is included in the Distribution Segment. Total sales from foreign business units were approximately $ 46.3 million, $ 46.1 million, and $ 54.2 million, for the years ended December 31, 2024, 2023 and 2022, respectively. Export sales from the Company's U.S. operations were approximately $ 37.1 million, $ 30.0 million, and $ 31.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Sales made to customers in Canada accounted for approximately 3.0 % , 4.4 % , and 4.3 % of total net sales in 2024, 2023 and 2022, respectively. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $ 10.2 million and $ 10.3 million at December 31, 2024 and 2023, respectively. An analysis of the Company's operations by segment, including revenue by major market is as follows: For the Year Ended December 31, 2024 Material Distribution Corporate Inter-company Consolidated Consumer $ 96,174 $ — $ — $ — $ 96,174 Vehicle 107,178 — — — 107,178 Food and beverage 74,701 — — — 74,701 Industrial 240,910 — — ( 142 ) 240,768 Infrastructure 102,692 — — — 102,692 Auto aftermarket — 214,768 — — 214,768 Net sales 621,655 214,768 — ( 142 ) 836,281 Cost of sales (2) 415,544 150,074 — ( 142 ) 565,476 Selling, general and administrative expenses (1) (3) (5) 106,121 61,338 36,649 — 204,108 (Gain) loss on disposal of fixed assets 207 ( 7 ) 1 — 201 Impairment charges (6) 22,016 — — — 22,016 Operating income (loss) (4) 77,767 3,363 ( 36,650 ) — 44,480 Interest expense, net 30,937 Income before income taxes $ 13,543 Total assets 712,046 99,193 49,576 — 860,815 Capital additions, net 22,276 1,272 887 — 24,435 Depreciation and Amortization (9) 34,499 3,248 2,763 — 40,510 For the Year Ended December 31, 2023 Material Distribution Corporate Inter-company Consolidated Consumer $ 92,380 $ — $ — $ — $ 92,380 Vehicle 123,155 — — — 123,155 Food and beverage 118,063 — — — 118,063 Industrial 221,661 — — ( 67 ) 221,594 Infrastructure — — — — — Auto aftermarket — 257,875 — — 257,875 Net sales 555,259 257,875 — ( 67 ) 813,067 Cost of sales 376,002 178,046 — ( 67 ) 553,981 Selling, general and administrative expenses (1) (3) (5) (8) 79,352 68,874 38,650 — 186,876 (Gain) loss on disposal of fixed assets ( 183 ) ( 12 ) — — ( 195 ) Operating income (loss) (4) 100,088 10,967 ( 38,650 ) — 72,405 Interest expense, net 6,349 Income before income taxes $ 66,056 Total assets 383,734 112,323 45,574 — 541,631 Capital additions, net 20,452 1,666 737 — 22,855 Depreciation and Amortization (9) 18,917 3,197 985 — 23,099 For the Year Ended December 31, 2022 Material Distribution Corporate Inter-company Consolidated Consumer $ 113,339 $ — $ — $ — $ 113,339 Vehicle 165,139 — — — 165,139 Food and beverage 125,111 — — — 125,111 Industrial 244,030 — — ( 38 ) 243,992 Infrastructure — — — — — Auto aftermarket — 251,966 — — 251,966 Net sales 647,619 251,966 — ( 38 ) 899,547 Cost of sales 443,380 172,839 — ( 38 ) 616,181 Selling, general and administrative expenses (1) (3) 100,827 62,662 36,000 — 199,489 (Gain) loss on disposal of fixed assets ( 667 ) — — — ( 667 ) Other (income) expenses (7) — 603 — — 603 Operating income (loss) (4) 104,079 15,862 ( 36,000 ) — 83,941 Interest expense, net 5,731 Income before income taxes $ 78,210 Total assets 385,722 119,652 37,260 — 542,634 Capital additions, net 22,528 705 1,059 — 24,292 Depreciation and Amortization (9) 17,814 2,889 954 — 21,657 (1) The Company recognized $( 0.2 ) million, $ 3.2 million and $ 1.4 million of expense (income) related to the estimated environmental reserve, net of expected insurance recoveries in the years ended December 31, 2024, 2023 and 2022, respectively, as described in Note 9. Environmental charges are not included in segment results and are shown with Corporate. (2) The Company recognized $ 4.5 million of non-cash inventory step-up that was amortized to Cost of sales for the year ended December 31, 2024, related to the reporting of inventory at fair value in conjunction with the acquisition of Signature, as described in Note 3. (3) The Company incurred $ 4.6 million, $ 3.1 million and $ 1.0 million of acquisition related costs associated with the acquisitions of Signature and Mohawk, as described in Note 3, for the years ended December 31, 2024, 2023, and 2022, respectively, of which $ 4.3 million, $ 2.7 million and $ 0.6 million are included in Corporate, for the years ended December 31, 2024, 2023, and 2022, respectively, $ 0.3 million is included in Material Handling's results, for the year ended December 31, 2024 and $ 0.4 million is included in Distribution's results, for the years ended December 31, 2023 and 2022. Corporate costs also include $ 1.3 million of consulting costs to improve the Company's capabilities to screen and execute large acquisitions for the year ended December 31, 2023. (4) The Company incurred $ 7.5 million, $ 2.5 million and $ 0.7 million of restructuring costs, included within both Cost of Sales and Selling, general and administrative , associated with the restructuring initiatives described in Note 6, for the years ended December 31, 2024, 2023, and 2022, respectively, of which $ 3.9 million, $ 1.5 million and $ 0.7 million are included in Material Handling, $ 1.4 million, $ 0.9 million and $ 0.0 million are included in Distribution's results and $ 2.3 million, $ 0.2 million and $ 0.0 million are included in Corporate's results, for the years ended December 31, 2024, 2023, and 2022, respectively. (5) The Company recognized $ 1.4 million of executive severance which is included in Corporate's results for the year ended December 31, 2024. In the year ended December 31, 2023 the Company recognized $ 0.7 million of executive severance, of which $ 0.4 million was recognized in the Distribution Segment related to severance and benefits and $ 0.3 million was recognized in Corporate related to charges for the acceleration of stock compensation. (6) The Company recognized $ 22.0 million of non-cash impairment charges, as described in Note 4, for the year ended December 31, 2024, which are included in Material Handling's results. (7) In the year ended December 31, 2022, the Company recognized a $ 0.6 million impairment loss on an investment in a legacy joint venture within the Distribution Segment as described in Note 1. (8) In the year ended December 31, 2023, the Company recognized a $ 10 million recovery of legal costs within the Material Handling Segment related to a settlement agreement with one of its insurers. $ 6.7 million of these recovered costs were originally incurred prior to 2023. (9) Corporate depreciation and amortization includes amortization of deferred financing costs of $ 1.9 million, $ 0.3 million and $ 0.4 million in the years ended December 31, 2024, 2023 and 2022, respectively. |