v3.25.2
Restructuring (Tables)
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Charges

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).
Summary of Restructuring Liabilities

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.