On March 6, 2025, the Company announced it would be launching a 'Focused Transformation' initiative with a target to implement $20 million of annualized cost savings, primarily in SG&A, by year-end 2025. In conjunction with the program the Company incurred $2.1 million and $2.4 million of restructuring charges during the quarter and six months ended June 30, 2025, respectively. Accrued and unpaid restructuring expenses were $1.7 million at June 30, 2025 and remaining costs to complete the program will continue to be evaluated by the Company as it conducts a comprehensive review of its portfolio and key strategic initiatives.

In conjunction with the Company's previously announced restructuring plan to improve the Company’s organizational structure and operational efficiency within the Distribution Segment, the Company incurred $1.7 million and $2.5 million of restructuring charges for the quarter and six months ended June 30, 2025, respectively, and $0.8 million during the quarter and six months ended June 30, 2024. The Company also entered into termination agreements to exit two of its idled lease facilities, in conjunction with the restructuring plan, for which the original leases extended through 2028, and total termination charges of $1.6 million, included in the totals above, for the quarter and six months ended June 30, 2025, respectively, were recorded to satisfy all remaining obligations under the original lease agreements. Accrued and unpaid restructuring expenses totaled $0.9 million at June 30, 2025 and the Company does not expect to incur any further costs related to this initiative which is now complete.

In conjunction with the Company's previously announced Ameri-Kart plan the Company incurred $2.0 million and $2.3 million of restructuring charges during the quarter and six months ended June 30, 2024. On May 7, 2024, the Company entered into a termination agreement to exit the idled lease facility, in conjunction with the Ameri-Kart plan, for which the original lease extended through 2026, and a termination payment of $1.8 million was recorded to satisfy all remaining obligations under the original lease. The Ameri-Kart plan is now complete and there were no remaining accrued and unpaid restructuring expenses at June 30, 2025 or December 31, 2024.

Charges from other restructuring initiatives to reduce and streamline overhead costs during the quarter and six months ended June 30, 2025 totaled $0.7 million and $1.5 million, respectively, and $0.2 million during the quarter and six months ended June 30, 2024. Accrued and unpaid restructuring expenses were $2.2 million and $0.9 million at June 30, 2025 and December 31, 2024, respectively.

The restructuring charges noted above for the quarter and six months ended June 30, 2025 and 2024, respectively, are presented in the Condensed Consolidated Statements of Operations (Unaudited) as follows:


	For the Quarter Ended June 30,
	2025						2024
Segment	Cost of Sales		SG&A		Total		Cost of Sales		SG&A		Total
Material Handling	$	388	$	663	$	1,051	$	2,223	$	—	$	2,223
Distribution		—		2,169		2,169		488		267		755
Corporate		—		1,197		1,197		—		—		—
Total	$	388	$	4,029	$	4,417	$	2,711	$	267	$	2,978


	For the Six Months Ended June 30,
	2025						2024
Segment	Cost of Sales		SG&A and Other (1)		Total		Cost of Sales		SG&A		Total
Material Handling	$	496	$	663	$	1,159	$	2,464	$	—	$	2,464
Distribution		—		2,980		2,980		488		267		755
Corporate		—		2,306		2,306		—		—		—
Total	$	496	$	5,949	$	6,445	$	2,952	$	267	$	3,219

(1) Amounts included in SG&A and Other, for the six months ended June 30, 2025 include a $0.5 million charge related to the facility consolidations, discussed above, that is classified within (Gain) loss on disposal of fixed assets on the Condensed Consolidated Statements of Operations (Unaudited).

Restructuring liabilities are included in other current liabilities on the Condensed Consolidated Balance Sheets (Unaudited). The change in other current liabilities for the six months ended June 30, 2025 was as follows:


	Employee Reduction			Facility Consolidations			Other Exit Costs (1)			Total
Balance at December 31, 2024	$	—		$	—		$	962		$	962
Charges to expense		1,215			2,645			2,585			6,445
Cash payments		(369	)		(1,219	)		(672	)		(2,260	)
Non-cash activity		171			(480	)		—			(309	)
Balance at June 30, 2025	$	1,017		$	946		$	2,875		$	4,838

(1) Other exit costs consist primarily of executive transition and other related costs.

Subsequent event – Restructuring charges

On July 23, 2025, the Company's Board of Directors approved launching a strategic review of Myers Tire Supply, which is included in the Distribution segment. Revenue from this business was $189 million over the last twelve months, ending June 30, 2025.

On July 31, 2025, the Company announced as part of its Focused Transformation initiatives, a plan to idle two of its rotational molding production facilities and to consolidate that production into other facilities. These actions are expected to result in additional annual savings of at least $3 million and the Company expects to incur up to $14 million in restructuring costs to complete the initiative, including costs related to employee severance, machine moves, asset impairments and costs related to the long-term facility leases.