v3.25.2
Segment Data
 12 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
Segment Data

Note O – Segment Data

 

Our operations are organized under two operating segments: Consumer Products and Building Products. These operating segments correspond directly with our reportable segments, as described further below. Activity outside of our two reportable segments is presented within “Other” and “Unallocated Corporate” to reconcile to our consolidated results.

 

Our segment structure reflects the manner in which internally reported financial information is regularly reviewed by our CODM, who is our President and CEO, to evaluate the performance and allocate resources. Operating segments are identified based on the nature of the products and services offered, the management reporting structure, similarity of economic characteristics and certain quantitative measures as prescribed by authoritative accounting guidance. The CODM evaluates segment performance and makes resource allocation decisions based on adjusted EBITDA from continuing operations. Adjusted EBITDA from continuing operations is a non-GAAP financial measure, as described in the “Use of Non-GAAP Financial Measures” section preceding Part I, Item 1 of this Form 10-K. At the reportable segment level, adjusted EBITDA from continuing operations excludes public company and other governance-related costs.

 

Consumer Products: Our Consumer Products segment has a diverse product offering in the tools, outdoor living and celebrations categories, including propane-filled cylinders for torches and related accessories, handheld torches, specialized hand tools and instruments, drywall tools (collectively, tools), propane-filled camping cylinders helium-filled balloon kits, and accessories and gas grills and pizza ovens sold primarily to mass merchandisers, retailers and distributors. In fiscal 2025, Consumer Products generated approximately 43% of our consolidated net sales, compared to 40% and 39% in fiscal 2024 and fiscal 2023, respectively. Approximately 28% of fiscal 2025 Consumer Products net sales was attributable to our largest customer.

Building Products: Our Building Products segment is a market-leading provider of pressurized containment solutions, providing critical components in the residential, non-residential, and repair and remodel end markets through essential categories, such as heating, cooking, cooling and water, and, through our unconsolidated joint ventures, WAVE and ClarkDietrich, ceiling suspension systems and light gauge metal framing products, respectively. Our pressurized containment solutions include refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products which are generally sold to gas producers and distributors. In fiscal 2025, Building Products generated approximately 57% of our consolidated net sales, compared to 50% and 51% in fiscal 2024 and 2023, respectively.

 

Other: Includes the activity of our Sustainable Energy Solutions and Workhorse unconsolidated joint ventures, as well as the activity of our former Sustainable Energy Solutions operating segment, on an historical basis, through May 29, 2024, when 51% of the nominal share capital was sold triggering the deconsolidation of corresponding net assets. Upon closing, this business, as historically operated, is no longer part of our management structure and therefore is not presented separately as a reportable segment.

 

Unallocated Corporate: Includes certain assets and liabilities (e.g. public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole, have not been allocated to our operating segments and are held at the corporate level, including direct and incremental costs incurred in connection with the Separation but not attributed to discontinued operations in fiscal 2024 and fiscal 2023.

 

The accounting policies of the reportable segments are described in “Note A – Summary of Significant Accounting Policies.” Inter-segment sales are not material.

 

The following tables present financial information for both of our reportable segments, consistent with the level of disaggregation regularly reviewed by the CODM for performance evaluation and resource allocation.

 

2025

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Building

 

 

Reportable

 

 

 

 

 

Unallocated

 

 

 

 

 

Products

 

 

Products

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

499,625

 

 

$

654,137

 

 

$

1,153,762

 

 

$

-

 

 

$

-

 

 

$

1,153,762

 

Cost of goods sold

 

323,659

 

 

 

510,962

 

 

 

834,621

 

 

 

-

 

 

 

106

 

 

 

834,727

 

SG&A

 

114,681

 

 

 

116,183

 

 

 

230,864

 

 

 

-

 

 

 

37,549

 

 

 

268,413

 

Impairment of long-lived assets

 

50,050

 

 

 

763

 

 

 

50,813

 

 

 

-

 

 

 

-

 

 

 

50,813

 

Restructuring and other expense, net

 

-

 

 

 

1,500

 

 

 

1,500

 

 

 

-

 

 

 

9,024

 

 

 

10,524

 

Other segment items (1)

 

27

 

 

 

(780

)

 

 

(753

)

 

 

5,000

 

 

 

1,065

 

 

 

5,312

 

Equity in net income of unconsolidated affiliates

 

-

 

 

 

150,895

 

 

 

150,895

 

 

 

(6,059

)

 

 

-

 

 

 

144,836

 

Earnings (loss) before income taxes from continuing operations

$

11,208

 

 

$

176,404

 

 

$

187,612

 

 

$

(11,059

)

 

$

(47,744

)

 

$

128,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to Adjusted EBITDA from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

17,418

 

 

 

30,070

 

 

 

47,488

 

 

 

-

 

 

 

774

 

 

 

48,262

 

Interest expense

 

-

 

 

 

(78

)

 

 

(78

)

 

 

-

 

 

 

2,168

 

 

 

2,090

 

Stock-based compensation

 

2,917

 

 

 

2,695

 

 

 

5,612

 

 

 

-

 

 

 

7,909

 

 

 

13,521

 

Impairment of long-lived assets (2)

 

50,050

 

 

 

763

 

 

 

50,813

 

 

 

-

 

 

 

-

 

 

 

50,813

 

Restructuring and other expense, net (3)

 

-

 

 

 

1,500

 

 

 

1,500

 

 

 

-

 

 

 

9,024

 

 

 

10,524

 

Non-cash charges in miscellaneous income (4)

 

-

 

 

 

-

 

 

 

-

 

 

 

5,000

 

 

 

-

 

 

 

5,000

 

Non-recurring loss in equity income (5)

 

-

 

 

 

-

 

 

 

-

 

 

 

3,387

 

 

 

-

 

 

 

3,387

 

Net loss attributable to noncontrolling interest

 

1,083

 

 

 

-

 

 

 

1,083

 

 

 

-

 

 

 

-

 

 

 

1,083

 

Adjusted EBITDA from continuing operations

$

82,676

 

 

$

211,354

 

 

$

294,030

 

 

$

(2,672

)

 

$

(27,869

)

 

$

263,489

 

 

 
(1)
Other segment items consist of non-operating activity included in adjusted EBITDA, which is our measure of segment profit.
(2)
Significant pre-tax impairment charges include $50,050 in the fourth quarter of fiscal 2025 related to the write-down of intangible assets associated with GTI.
(3)
Significant pre-tax restructuring charges include $4,536 in fiscal 2025 related to an increase in the fair value of the contingent liability associated with the Ragasco earnout arrangement.
(4)
Reflects a pre-tax charge of $5,000 during the fourth quarter of fiscal 2025 to write down an investment that was determined to be other than temporarily impaired.
(5)
Reflects a non-cash impairment charge of $3,387 at the Sustainable Energy Solutions joint venture during the fourth quarter of fiscal 2025.

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Building

 

 

Reportable

 

 

 

 

 

Unallocated

 

 

 

 

 

Products

 

 

Products

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

495,259

 

 

$

618,973

 

 

$

1,114,232

 

 

$

131,471

 

 

$

-

 

 

$

1,245,703

 

Cost of goods sold

 

335,069

 

 

 

497,311

 

 

 

832,380

 

 

 

129,061

 

 

 

(757

)

 

 

960,684

 

SG&A

 

113,960

 

 

 

107,009

 

 

 

220,969

 

 

 

16,259

 

 

 

46,243

 

 

 

283,471

 

Impairment of goodwill and long-lived assets

 

-

 

 

 

772

 

 

 

772

 

 

 

32,203

 

 

 

-

 

 

 

32,975

 

Restructuring and other expense (income), net

 

(2,000

)

 

 

714

 

 

 

(1,286

)

 

 

30,613

 

 

 

-

 

 

 

29,327

 

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,705

 

 

 

12,705

 

Other segment items (1)

 

78

 

 

 

(88

)

 

 

(10

)

 

 

17,799

 

 

 

2,461

 

 

 

20,250

 

Equity in net income of unconsolidated affiliates

 

-

 

 

 

163,126

 

 

 

163,126

 

 

 

4,590

 

 

 

-

 

 

 

167,716

 

Earnings (loss) before income taxes from continuing operations

$

48,152

 

 

$

176,381

 

 

$

224,533

 

 

$

(89,874

)

 

$

(60,652

)

 

$

74,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to adjusted EBITDA from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

16,512

 

 

 

23,805

 

 

 

40,317

 

 

 

7,283

 

 

 

1,063

 

 

 

48,663

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,587

 

 

 

1,587

 

Stock-based compensation

 

1,964

 

 

 

2,826

 

 

 

4,790

 

 

 

-

 

 

 

8,365

 

 

 

13,155

 

Corporate costs eliminated at Separation

 

4,707

 

 

 

4,650

 

 

 

9,357

 

 

 

-

 

 

 

9,986

 

 

 

19,343

 

Impairment of goodwill and long-lived assets (2)

 

-

 

 

 

772

 

 

 

772

 

 

 

32,203

 

 

 

-

 

 

 

32,975

 

Restructuring and other expense (income), net (3)

 

(2,000

)

 

 

714

 

 

 

(1,286

)

 

 

30,613

 

 

 

-

 

 

 

29,327

 

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,705

 

 

 

12,705

 

Non-cash charges in miscellaneous income (4)

 

-

 

 

 

-

 

 

 

-

 

 

 

19,180

 

 

 

-

 

 

 

19,180

 

Non-recurring (gain) loss in equity income (5)

 

-

 

 

 

980

 

 

 

980

 

 

 

(2,720

)

 

 

-

 

 

 

(1,740

)

Loss on extinguishment of debt

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,534

 

 

 

1,534

 

Net loss attributable to noncontrolling interest

 

263

 

 

 

-

 

 

 

263

 

 

 

-

 

 

 

-

 

 

 

263

 

Adjusted EBITDA from continuing operations

$

69,598

 

 

$

210,128

 

 

$

279,726

 

 

$

(3,315

)

 

$

(25,412

)

 

$

250,999

 

 

 

 

(1)
Other segment items consist of non-operating activity included in adjusted EBITDA, which is our measure of segment profit.
(2)
Significant pre-tax impairment charges include $32,203 in the fourth quarter of fiscal 2024 due to the deconsolidation of our former SES operating segment.
(3)
Significant pre-tax restructuring charges include a loss of $30,502 in the fourth quarter of fiscal 2024 due to the deconsolidation of our former Sustainable Energy Solutions operating segment during the fourth quarter of fiscal 2024.
(4)
Reflects the following non-cash charges in miscellaneous expense:
•
A pre-tax charge of $11,077 during the fourth quarter of fiscal 2024 to write down an investment that was determined to be other than temporarily impaired.
•
A pre-tax charge of $8,010 during the fourth quarter of fiscal 2024 related to the completion of a pension lift-out transaction.
(5)
Includes a net gain of $2,780 associated with the divestiture of the Brazilian operations of Workhorse during the fourth quarter of fiscal 2024 and the settlement of certain participant balances within the pension plan maintained by WAVE.

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Building

 

 

Reportable

 

 

 

 

 

Unallocated

 

 

 

 

 

Products

 

 

Products

 

 

Segments

 

 

Other

 

 

Corporate

 

 

Consolidated

 

Net sales

$

555,309

 

 

$

717,069

 

 

$

1,272,378

 

 

$

146,118

 

 

$

-

 

 

$

1,418,496

 

Cost of goods sold

 

373,094

 

 

 

587,429

 

 

 

960,523

 

 

 

130,095

 

 

 

4,290

 

 

 

1,094,908

 

SG&A

 

113,267

 

 

 

110,208

 

 

 

223,475

 

 

 

15,304

 

 

 

48,339

 

 

 

287,118

 

Impairment of long-lived assets

 

-

 

 

 

484

 

 

 

484

 

 

 

-

 

 

 

-

 

 

 

484

 

Restructuring and other expense (income), net

 

213

 

 

 

597

 

 

 

810

 

 

 

-

 

 

 

(1,177

)

 

 

(367

)

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,534

 

 

 

6,534

 

Other segment items (1)

 

181

 

 

 

(325

)

 

 

(144

)

 

 

5,715

 

 

 

17,224

 

 

 

22,795

 

Equity in net income of unconsolidated affiliates

 

-

 

 

 

166,427

 

 

 

166,427

 

 

 

(13,165

)

 

 

-

 

 

 

153,262

 

Earnings (loss) before income taxes from continuing operations

$

68,554

 

 

$

185,103

 

 

$

253,657

 

 

$

(18,161

)

 

$

(75,210

)

 

$

160,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to Adjusted EBITDA from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

16,210

 

 

 

22,127

 

 

 

38,337

 

 

 

6,319

 

 

 

1,319

 

 

 

45,975

 

Interest expense

 

-

 

 

 

-

 

 

 

-

 

 

 

1,140

 

 

 

17,158

 

 

 

18,298

 

Stock-based compensation

 

1,949

 

 

 

3,420

 

 

 

5,369

 

 

 

-

 

 

 

9,197

 

 

 

14,566

 

Corporate costs eliminated at Separation

 

10,444

 

 

 

10,466

 

 

 

20,910

 

 

 

-

 

 

 

20,569

 

 

 

41,479

 

Impairment of long-lived assets

 

-

 

 

 

484

 

 

 

484

 

 

 

-

 

 

 

-

 

 

 

484

 

Restructuring and other expense, net

 

213

 

 

 

597

 

 

 

810

 

 

 

-

 

 

 

(1,177

)

 

 

(367

)

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,534

 

 

 

6,534

 

Non-cash charges in miscellaneous income (2)

 

-

 

 

 

-

 

 

 

-

 

 

 

4,774

 

 

 

-

 

 

 

4,774

 

Non-recurring loss in equity income (3)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13,996

 

 

 

13,996

 

Adjusted EBITDA from continuing operations

$

97,370

 

 

$

222,197

 

 

$

319,567

 

 

$

(5,928

)

 

$

(7,614

)

 

$

306,025

 

 

 

 

(1)
Other segment items consist of non-operating activity included in adjusted EBITDA, which is our measure of segment profit.
(2)
Reflects a pre-tax charge of $4,774 during the fourth quarter of fiscal 2023 related to a pension lift-out transaction.
(3)
Reflects the following activity within equity income:
•
A pre-tax loss of $16,059 related to the sale of our 50% noncontrolling equity investment in ArtiFlex.
•
A net gain of $2,063 related to a sale-leaseback transaction during the fourth quarter of fiscal 2023.

 

Total assets for each of our reportable segments as of the end of the past two fiscal years were as follows:

 

 

 

 

May 31,

 

 

 

 

2025

 

 

2024

 

Consumer Products

 

$

531,187

 

 

$

557,826

 

Building Products

 

 

795,837

 

 

 

672,723

 

Total reportable segments

 

 

1,327,024

 

 

 

1,230,549

 

Other

 

 

 

38,002

 

 

 

43,008

 

Unallocated Corporate

 

 

330,126

 

 

 

365,080

 

Total

 

 

$

1,695,152

 

 

$

1,638,637

 

 

The following table presents property, plant and equipment, net, by geographic region as of the end of the past two fiscal years:

 

 

 

 

May 31,

 

 

 

 

2025

 

 

2024

 

United States

 

$

223,117

 

 

$

207,772

 

International

 

 

47,109

 

 

 

19,434

 

Total

 

$

270,226

 

 

$

227,206

 

 

The following table presents net sales by geographic region for the past three fiscal years:

 

 

2025

 

 

2024

 

 

2023

 

United States

$

891,428

 

 

$

923,556

 

 

$

1,041,723

 

International

 

262,334

 

 

 

322,147

 

 

 

376,773

 

Total

$

1,153,762

 

 

$

1,245,703

 

 

$

1,418,496

 

 

The following table presents capital expenditures for each of our reportable segments for the past three fiscal years:

 

 

2025

 

 

2024

 

 

2023

 

Consumer Products

$

28,330

 

 

$

14,447

 

 

$

8,612

 

Building Products

 

15,050

 

 

 

20,945

 

 

 

22,843

 

Total reportable segments

 

43,380

 

 

 

35,392

 

 

 

31,455

 

Other

 

-

 

 

 

3,829

 

 

 

6,495

 

Unallocated Corporate

 

7,200

 

 

 

8,200

 

 

 

733

 

Total

$

50,580

 

 

$

47,421

 

 

$

38,683