v3.26.1
Note 18 - Segment Information
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 18 Segment Information

 

The Company has two reportable segments: (i) the TotalStone segment, which includes the operations of TotalStone, LLC and the legacy Instone distribution business, together with Canadian Stone Industries Inc. and Continental Stone Industries, Inc. (collectively, "Fraser Canyon"), acquired in December 2025; and (ii) the Carolina Stone segment, which includes the operations of Carolina Stone Distributors, LLC and its affiliated installation business, acquired in August 2025. The TotalStone segment distributes natural and manufactured stone and related building products. The Carolina Stone segment distributes and installs stone veneer and related masonry products. The Company also incurs corporate-level SG&A expenses at Capstone Holding Corp. ("Capstone" or the "Parent"), consisting primarily of board fees, investor relations, filing, legal, insurance, accounting and consulting expenses not identifiable or allocated to the operating segments.

 

The Company's Chief Executive Officer serves as the chief operating decision maker ("CODM"). The CODM evaluates segment performance based on segment revenue, gross profit, and income (loss) from operations. Corporate overhead and certain shared services costs not directly attributable to a segment are reported within the Parent/Eliminations column. Interest expense, income taxes, and other non-operating items are not allocated to segments. The accounting policies of the reportable segments are the same as those described in Note 3.

 

The following tables present financial information regarding the Company's reportable segments, reconciled to the Company's consolidated totals.

 

  

Three Months Ended March 31,

 
  

2026

  

2025

 
  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

 

Income (loss) from operations before taxes:

                                        

Sales

 $10,270  $2,366  $—  $—  $12,636  $7,899  $—  $—  $—  $7,899 

Cost of goods sold

  8,195   1,471   —   —   9,666   6,574   —   —   —   6,574 

Gross Profit

  2,075   895   —   —   2,970   1,325   —   —   —   1,325 

Selling, general and administrative expenses

  3,323   814   330   —   4,467   2,399   —   564   (210)  2,753 

Transaction Expenses

  —   —   —   —   —   —   —   —   —   — 

Income (loss) from operations

 $(1,248) $81  $(330) $—  $(1,497) $(1,074) $—  $(564) $210  $(1,428)

Unrealized gain on derivative

  —   —   476      476   —   —   —   —   — 

Interest expense

  (457)  (19)  (416)  —   (892)  (278)  —   (22)  —   (300)

Other income (expense) net

  —   —   —   —   —   150   —   60   (210)  — 

Income (loss) from operations before taxes

 $(1,705) $62  $(270) $—  $(1,913) $(1,202) $—  $(526) $—  $(1,728)
                                         

Other financial information:

                                        

Depreciation & amortization

 $90  $71  $—  $—  $161  $116  $—  $—  $—  $116 

Capital expenditures

  26   41   —   —   67   —      —   —   — 

 

 

  

As of March 31, 2026

  

As of December 31, 2025

 
  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

 

Total assets

 $54,399  $5,679  $6,037  $(12,318) $53,797  $51,332  $6,141  $5,531  $(11,626) $51,378