Business Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segment Information

15. Business Segment Information

The Company’s operations are organized and reviewed by management along its product platforms or end market that the segment serves and are presented in two reportable segments. The results of the segments are reviewed through the “Income from operations” line on the Condensed Consolidated Statements of Income.

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

Engineered Systems segment: Our Engineered Systems segment serves the general industrial, power generation, refinery, water/wastewater, midstream oil & gas, and other energy transition markets. We are a key part of helping meet the global demand for environmental and equipment protection through our highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation & filtration (gas & water), and dampers & expansion joints.

Industrial Process Solutions segment: Our Industrial Process Solutions segment serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. We protect the air we collectively breathe, maintain clean and safe operations for employees, lower energy consumption, minimize waste

for customers, and ensure they meet regulatory compliance standards for toxic emissions, fumes, volatile organic compounds and odors through our platforms including duct & installation, industrial air, and fluid handling.

The financial segment information is presented in the following tables:

	Three months ended March 31,
(dollars in thousands)	2022		2021
Net sales (less intra-, inter-segment sales)
Engineered Systems segment	$	56,975	$	42,057
Industrial Process Solutions segment		35,461		29,835
Net sales	$	92,436	$	71,892

	Three months ended March 31,
(dollars in thousands)	2022			2021
Income from operations
Engineered Systems segment	$	6,470		$	6,170
Industrial Process Solutions segment		4,139			3,822
Corporate and Other(1)		(5,407	)		(6,938	)
Income from operations	$	5,202		$	3,054

(1) Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses.

	Three months ended March 31,
(dollars in thousands)	2022		2021
Property and equipment additions
Engineered Systems segment	$	5	$	9
Industrial Process Solutions segment		73		190
Corporate and Other		587		293
Property and equipment additions	$	665	$	492

	Three months ended March 31,
(dollars in thousands)	2022		2021
Depreciation and amortization
Engineered Systems segment	$	895	$	1,067
Industrial Process Solutions segment		1,050		1,068
Corporate and Other		343		300
Depreciation and amortization	$	2,288	$	2,435

(dollars in thousands)	March 31, 2022		December 31, 2021
Identifiable assets
Engineered Systems segment	$	303,245	$	262,558
Industrial Process Solutions segment		142,585		141,975
Corporate and Other(2)		12,563		11,664
Identifiable assets	$	458,393	$	416,197

(2) Corporate and Other assets consist primarily of cash and income tax related assets.

(dollars in thousands)	March 31, 2022		December 31, 2021
Goodwill
Engineered Systems segment	$	119,826	$	99,303
Industrial Process Solutions segment		61,773		61,880
Goodwill	$	181,599	$	161,183

Intra-segment and Inter-segment Revenues

The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

	Three months ended March 31, 2022
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	61,600	$	(4,558	)	$	(67	)	$	—		$	56,975
Industrial Process Solutions segment		37,142		(1,625	)		—			(56	)		35,461
Net sales	$	98,742	$	(6,183	)	$	(67	)	$	(56	)	$	92,436

	Three months ended March 31, 2021
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	44,476	$	(2,374	)	$	(45	)	$	—		$	42,057
Industrial Process Solutions segment		32,933		(2,774	)		—			(324	)		29,835
Net sales	$	77,409	$	(5,148	)	$	(45	)	$	(324	)	$	71,892