v3.26.1
Note 18 - Segment Information
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 18 Segment Information

 

The Company’s reportable segments are unchanged from those identified in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025: the TotalStone segment (which includes the legacy Instone distribution business together with Fraser Canyon / Canadian Stone Industries, acquired December 1, 2025) and the Carolina Stone segment (acquired August 22, 2025). Capstone Holding Corp. corporate-level expenses are reported separately as the “Parent” caption. Intersegment transactions, where applicable, are reported in the “Eliminations” caption and (intercompany transactions and events) consist of intercompany sales, intercompany receivables and payables that are eliminated in consolidation.

 

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 June 30,

 
  

2026

  

2025

 
  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

 

Income (loss) from operations before taxes:

                                        

Sales

 $18,483  $3,174  $  $  $21,657  $13,193  $  $  $  $13,193 

Sales returns and allowances

  (177)           (177)  (341)           (341)

Net sales

  18,306   3,174         21,480   12,852            12,852 

Cost of goods sold

  13,407   2,074         15,481   9,722            9,722 

Gross Profit

  4,899   1,100         5,999   3,130            3,130 

Selling, general and administrative expenses

  3,422   877   1,210      5,509   2,545      845      3,390 

Change in fair value of contingent consideration

     58         58                

Income (loss) from operations

 $1,477  $165  $(1,210) $  $432  $585  $  $(845) $  $(260)

Realized foreign currency gain (loss), net.

  (14)           (14)          $    

Unrealized gain on derivative

        166      166                

Interest expense

  (495)  (20)  (1,446)     (1,961)  (417)     (23)     (440)

Income (loss) from operations before taxes

 $968  $145  $(2,490) $  $(1,377) $168  $  $(868) $  $(700)
                                         

Other financial information:

                                        

Depreciation & amortization

 $99  $64  $  $  $163  $114  $  $  $  $114 

Capital expenditures

  63   1         64   2            2 

 

  

Six Months Ended June 30,

 
  

2026

  

2025

 
  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

 

Income (loss) from operations before taxes:

                                        

Sales

 $28,887  $5,540  $  $  $34,427  $21,358  $  $  $  $21,358 

Sales returns and allowances

  (311)           (311)  (607)           (607)

Net sales

  28,576   5,540         34,116   20,751            20,751 

Cost of goods sold

  21,602   3,545         25,147   16,296            16,296 

Gross Profit

  6,974   1,995         8,969   4,455            4,455 

Selling, general and administrative expenses

  6,745   1,691   1,540      9,976   4,944      1,409   (210)  6,143 

Change in fair value of contingent consideration

     58         58                

Income (loss) from operations

 $229  $246  $(1,540) $  $(1,065) $(489) $  $(1,409) $210  $(1,688)

Realized foreign currency gain (loss), net.

  (14)           (14)               

Unrealized gain on derivative

        642      642                

Interest expense

  (952)  (39)  (1,862)     (2,853)  (696)     (45)     (740)

Other income (expense) net

                 150      60   (210)   

Income (loss) from operations before taxes

 $(737) $207  $(2,760) $  $(3,290) $(1,034) $  $(1,394) $  $(2,428)
                                         

Other financial information:

                                        

Depreciation & amortization

 $189  $135  $  $  $324  $230  $  $  $  $230 

Capital expenditures

  89   4         93   2            2 

 

Note 18 Segment Information (cont.)

 

  

As of June 30, 2026

  

As of December 31, 2025

 
  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

  

TotalStone

  

Carolina Stone Holdings

  

Parent

  

Eliminations

  

Consolidated

 

Total assets

 $54,902  $6,031  $5,764  $(12,019) $54,678  $51,332  $5,531  $6,141  $(11,626) $51,378