v3.25.2
Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments

14. Segments

The Company, a leading manufacturer of products that protect the world from the ground up, 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.

Total sales from foreign business units were approximately $15.5 million and $12.0 million for the quarters ended June 30, 2025 and 2024, respectively, and $26.6 million and $21.9 million for the six months ended June 30, 2025 and 2024, respectively.

An analysis of the Company's operations by segment, including revenue by major market is as follows:

 

For the Quarter Ended June 30, 2025

 

 

Material
Handling

 

 

Distribution

 

 

Corporate

 

 

Inter-company

 

 

Consolidated

 

Industrial

$

64,092

 

 

$

—

 

 

$

—

 

 

$

(33

)

 

$

64,059

 

Infrastructure

 

29,328

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29,328

 

Vehicle

 

24,727

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24,727

 

Consumer

 

26,121

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,121

 

Food and beverage

 

14,359

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,359

 

Auto aftermarket

 

—

 

 

 

50,989

 

 

 

—

 

 

 

—

 

 

 

50,989

 

Net sales

 

158,627

 

 

 

50,989

 

 

 

—

 

 

 

(33

)

 

 

209,583

 

Cost of sales

 

102,897

 

 

 

36,057

 

 

 

—

 

 

 

(33

)

 

 

138,921

 

Selling, general and administrative expenses (3) (4)

 

20,100

 

 

 

14,542

 

 

 

8,728

 

 

 

—

 

 

 

43,370

 

Depreciation and amortization

 

3,506

 

 

 

715

 

 

 

228

 

 

 

—

 

 

 

4,449

 

Freight out

 

2,546

 

 

 

247

 

 

 

—

 

 

 

—

 

 

 

2,793

 

(Gain) loss on disposal of fixed assets

 

106

 

 

 

(35

)

 

 

—

 

 

 

—

 

 

 

71

 

Operating income (loss) (2)

 

29,472

 

 

 

(537

)

 

 

(8,956

)

 

 

—

 

 

 

19,979

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

7,364

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

$

12,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

706,230

 

 

 

96,802

 

 

 

59,682

 

 

 

—

 

 

 

862,714

 

Capital additions, net

 

3,206

 

 

 

267

 

 

 

134

 

 

 

—

 

 

 

3,607

 

Depreciation and amortization (7)

 

9,029

 

 

 

812

 

 

 

768

 

 

 

—

 

 

 

10,609

 

 

 

 

For the Quarter Ended June 30, 2024

 

 

Material
Handling

 

 

Distribution

 

 

Corporate

 

 

Inter-company

 

 

Consolidated

 

Industrial

$

61,141

 

 

$

—

 

 

$

—

 

 

$

(37

)

 

$

61,104

 

Infrastructure

 

31,728

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,728

 

Vehicle

 

29,372

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29,372

 

Consumer

 

27,565

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

27,565

 

Food and beverage

 

16,202

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,202

 

Auto aftermarket

 

—

 

 

 

54,265

 

 

 

—

 

 

 

—

 

 

 

54,265

 

Net sales

 

166,008

 

 

 

54,265

 

 

 

—

 

 

 

(37

)

 

 

220,236

 

Cost of sales (5)

 

108,171

 

 

 

36,585

 

 

 

—

 

 

 

(37

)

 

 

144,719

 

Selling, general and administrative expenses (1) (6)

 

22,777

 

 

 

14,434

 

 

 

6,937

 

 

 

—

 

 

 

44,148

 

Depreciation and amortization

 

3,861

 

 

 

752

 

 

 

213

 

 

 

—

 

 

 

4,826

 

Freight out

 

2,456

 

 

 

231

 

 

 

—

 

 

 

—

 

 

 

2,687

 

(Gain) loss on disposal of fixed assets

 

42

 

 

 

84

 

 

 

2

 

 

 

—

 

 

 

128

 

Operating income (loss) (2)

 

28,701

 

 

 

2,179

 

 

 

(7,152

)

 

 

—

 

 

 

23,728

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

9,006

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

$

14,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

783,705

 

 

 

108,790

 

 

 

59,138

 

 

 

—

 

 

 

951,633

 

Capital additions, net

 

3,465

 

 

 

682

 

 

 

270

 

 

 

—

 

 

 

4,417

 

Depreciation and amortization (7)

 

9,023

 

 

 

830

 

 

 

758

 

 

 

—

 

 

 

10,611

 

 

 

For the Six Months Ended June 30, 2025

 

 

Material
Handling

 

 

Distribution

 

 

Corporate

 

 

Inter-company

 

 

Consolidated

 

Industrial

$

125,763

 

 

$

—

 

 

$

—

 

 

$

(201

)

 

$

125,562

 

Infrastructure

 

57,033

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

57,033

 

Vehicle

 

51,070

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51,070

 

Consumer

 

46,944

 

 

 

—

 

 

 

—

 

 

 

-

 

 

 

46,944

 

Food and beverage

 

35,489

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35,489

 

Auto aftermarket

 

—

 

 

 

100,235

 

 

 

—

 

 

 

—

 

 

 

100,235

 

Net sales

 

316,299

 

 

 

100,235

 

 

 

—

 

 

 

(201

)

 

 

416,333

 

Cost of sales

 

205,653

 

 

 

71,141

 

 

 

—

 

 

 

(201

)

 

 

276,593

 

Selling, general and administrative expenses (3) (4)

 

41,567

 

 

 

28,506

 

 

 

18,052

 

 

 

—

 

 

 

88,125

 

Depreciation and amortization

 

7,011

 

 

 

1,442

 

 

 

454

 

 

 

—

 

 

 

8,907

 

Freight out

 

5,129

 

 

 

476

 

 

 

—

 

 

 

—

 

 

 

5,605

 

(Gain) loss on disposal of fixed assets

 

86

 

 

 

388

 

 

 

—

 

 

 

—

 

 

 

474

 

Operating income (loss) (2)

 

56,853

 

 

 

(1,718

)

 

 

(18,506

)

 

 

—

 

 

 

36,629

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

14,750

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

$

21,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

706,230

 

 

 

96,802

 

 

 

59,682

 

 

 

—

 

 

 

862,714

 

Capital additions, net

 

11,159

 

 

 

372

 

 

 

159

 

 

 

—

 

 

 

11,690

 

Depreciation and amortization (7)

 

17,875

 

 

 

1,636

 

 

 

1,533

 

 

 

—

 

 

 

21,044

 

 

 

For the Six Months Ended June 30, 2024

 

 

Material
Handling

 

 

Distribution

 

 

Corporate

 

 

Inter-company

 

 

Consolidated

 

Industrial

$

114,755

 

 

$

—

 

 

$

—

 

 

$

(54

)

 

$

114,701

 

Infrastructure

 

51,055

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51,055

 

Vehicle

 

58,782

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

58,782

 

Consumer

 

49,866

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

49,866

 

Food and beverage

 

43,775

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43,775

 

Auto aftermarket

 

—

 

 

 

109,159

 

 

 

—

 

 

 

—

 

 

 

109,159

 

Net sales

 

318,233

 

 

 

109,159

 

 

 

—

 

 

 

(54

)

 

 

427,338

 

Cost of sales (5)

 

213,317

 

 

 

74,289

 

 

 

—

 

 

 

(54

)

 

 

287,552

 

Selling, general and administrative expenses (1) (6)

 

42,418

 

 

 

30,123

 

 

 

18,720

 

 

 

—

 

 

 

91,261

 

Depreciation and amortization

 

6,874

 

 

 

1,461

 

 

 

412

 

 

 

—

 

 

 

8,747

 

Freight out

 

4,661

 

 

 

449

 

 

 

—

 

 

 

—

 

 

 

5,110

 

(Gain) loss on disposal of fixed assets

 

6

 

 

 

53

 

 

 

2

 

 

 

—

 

 

 

61

 

Operating income (loss) (2)

 

50,957

 

 

 

2,784

 

 

 

(19,134

)

 

 

—

 

 

 

34,607

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

15,085

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

$

19,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

783,705

 

 

 

108,790

 

 

 

59,138

 

 

 

—

 

 

 

951,633

 

Capital additions, net

 

8,671

 

 

 

1,062

 

 

 

391

 

 

 

—

 

 

 

10,124

 

Depreciation and amortization (7)

 

16,548

 

 

 

1,603

 

 

 

1,188

 

 

 

—

 

 

 

19,339

 

(1) The Company recognized $0.1 million and $(0.2) million of expense (income) to the estimated environmental reserve, net of probable insurance recoveries for the quarter and six months ended June 30, 2024, respectively, as described in Note 10. Environmental charges are not included in segment results and are shown with Corporate.

(2) The Company incurred $4.4 million and $6.4 million of restructuring costs associated with the restructuring initiatives described in Note 4, for the quarter and six months ended June 30, 2025, of which $1.1 million and $1.2 million are included in Material Handling, $2.2 million and $3.0 million are included in Distribution and $1.2 million and $2.3 million are included with Corporate's results, respectively. The Company incurred $3.0 million and $3.2 million of restructuring costs associated with the restructuring initiatives described in Note 4, for the quarter and six months ended June 30, 2024, of which $2.2 million and $2.5 million are included in Material Handling and $0.8 million and $0.8 million are included in Distribution's results, respectively.

(3) During the quarter and six months ended June 30, 2025, the Company recognized a $1.6 million pre-tax pension settlement charge within the Material Handling segment, as described in Note 1.

(4) The Company recognized a $3.2 million recovery of purchased credit deteriorated assets for the quarter and six months ended June 30, 2025, as described in Note 3. The recovery was recognized as a reduction to bad debt expense included in Selling, general and administrative within the Material Handling Segment.

(5) The Company recognized $1.3 million and $4.5 million of non-cash inventory step-up that was amortized to Cost of sales for the quarter and six months ended June 30, 2024, related to the reporting of inventory at fair value in conjunction with the acquisition of Signature, described in Note 3.

(6) The Company incurred $0.7 million and $4.1 million of acquisition related costs associated with the Signature acquisition, as described in Note 3, for the quarter and six months ended June 30, 2024, of which $0.5 million and $3.8 million are included in Corporate and $0.2 million and $0.3 million are included in Material Handling's results, respectively.

(7) Total depreciation and amortization inclusive of amounts within Cost of sales. Corporate depreciation and amortization includes amortization of deferred financing costs of $0.5 million and $0.5 million for the quarters ended June 30, 2025 and 2024, respectively, and $1.1 million and $0.8 million for the six months ended June 30, 2025 and 2024, respectively.