Business Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Business Segment Information

15. Business Segment Information

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

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

Engineered Systems segment: The Engineered Systems segment serves the general industrial, power generation, refinery, water/wastewater, midstream oil & gas, and other energy transition markets. The Company is 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: The 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. The

Company protects the air we collectively breathe, maintains clean and safe operations for employees, lowers energy consumption, minimizes waste for customers, and ensures 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 as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2022		2021		2022		2021
Net sales (less intra-, inter-segment sales)
Engineered Systems segment	$	65,630	$	44,779	$	189,938	$	130,196
Industrial Process Solutions segment		42,784		35,200		116,287		100,355
Total net sales	$	108,414	$	79,979	$	306,225	$	230,551

	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2022			2021			2022			2021
Income (loss) from operations
Engineered Systems segment	$	8,991		$	4,301		$	24,467		$	16,105
Industrial Process Solutions segment		5,226			2,669			14,847			10,932
Corporate and Other(1)		(11,444	)		(7,566	)		(25,591	)		(22,434	)
Total income (loss) from operations	$	2,773		$	(596	)	$	13,723		$	4,603

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

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2022		2021		2022		2021
Property and equipment additions
Engineered Systems segment	$	96	$	15	$	128	$	79
Industrial Process Solutions segment		330		241		743		603
Corporate and Other		508		487		1,496		1,058
Total property and equipment additions	$	934	$	743	$	2,367	$	1,740

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2022		2021		2022		2021
Depreciation and amortization
Engineered Systems segment	$	1,398	$	1,061	$	3,253	$	3,198
Industrial Process Solutions segment		1,153		1,070		3,212		3,212
Corporate and Other		390		336		1,144		963
Total depreciation and amortization	$	2,941	$	2,467	$	7,609	$	7,373

(in thousands)	September 30, 2022		December 31, 2021
Identifiable assets
Engineered Systems segment	$	320,261	$	262,558
Industrial Process Solutions segment		149,311		141,975
Corporate and Other(2)		16,657		11,664
Total identifiable assets	$	486,229	$	416,197

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

(in thousands)	September 30, 2022		December 31, 2021
Goodwill
Engineered Systems segment	$	115,282	$	99,303
Industrial Process Solutions segment		67,083		61,880
Total goodwill	$	182,365	$	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 follows:

	Three months ended September 30, 2022
						Less Inter-Segment Sales
(in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	68,738	$	(2,904	)	$	(204	)	$	—		$	65,630
Industrial Process Solutions segment		44,079		(1,126	)		—			(169	)		42,784
Total net sales	$	112,817	$	(4,030	)	$	(204	)	$	(169	)	$	108,414

	Three months ended September 30, 2021
						Less Inter-Segment Sales
(in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	45,559	$	(472	)	$	(308	)	$	—		$	44,779
Industrial Process Solutions segment		35,525		(308	)		—			(17	)		35,200
Total net sales	$	81,084	$	(780	)	$	(308	)	$	(17	)	$	79,979

	Nine months ended September 30, 2022
						Less Inter-Segment Sales
(in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	201,092	$	(10,693	)	$	(461	)	$	—		$	189,938
Industrial Process Solutions segment		121,122		(4,468	)		—			(367	)		116,287
Total net sales	$	322,214	$	(15,161	)	$	(461	)	$	(367	)	$	306,225

	Nine months ended September 30, 2021
						Less Inter-Segment Sales
(in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	137,104	$	(6,359	)	$	(549	)	$	—		$	130,196
Industrial Process Solutions segment		109,703		(8,363	)		—			(985	)		100,355
Total net sales	$	246,807	$	(14,722	)	$	(549	)	$	(985	)	$	230,551