Business Segment Information

3 Months Ended

Mar. 31, 2023

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 Income.

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 power generation, hydrocarbon processing, water/wastewater treatment, oily water separation and treatment, marine and naval vessels, and midstream oil & gas sectors. We are a key part of helping meet the global demand for environmental and equipment protection solutions with our highly engineered platforms including emissions control, fluid bed cyclones, thermal acoustics, separation & filtration, and dampers & expansion joints.

Industrial Process Solutions segment: The Industrial Process Solutions segment serves the broad industrial sector with solutions for air pollution and contamination control, fluid handling, and process filtration in applications such as aluminum beverage can production, automobile production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum mill processing, wood manufacturing, desalination, and aquaculture markets. For Industrial Air applications, we assist companies maintain clean and safe operations for employees, reduce energy consumption, minimize waste for customers, and meet regulatory standards for toxic emissions, fumes, volatile organic compounds, and odor elimination through our platforms including duct fabrication & installation, industrial air, and fluid handling.

The financial segment information is as follows:

	Three months ended March 31,
(in thousands)	2023		2022
Net sales (less intra-, inter-segment sales)
Engineered Systems segment	$	74,454	$	56,975
Industrial Process Solutions segment		38,109		35,461
Total net sales	$	112,563	$	92,436

	Three months ended March 31,
(in thousands)	2023			2022
Income from operations
Engineered Systems segment	$	9,805		$	6,470
Industrial Process Solutions segment		5,546			4,139
Corporate and Other(1)		(9,890	)		(5,407	)
Total income from operations	$	5,461		$	5,202

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

	Three months ended March 31,
(in thousands)	2023		2022
Property and equipment additions
Engineered Systems segment	$	244	$	5
Industrial Process Solutions segment		1,399		73
Corporate and Other		870		587
Total property and equipment additions	$	2,513	$	665

	Three months ended March 31,
(in thousands)	2023		2022
Depreciation and amortization
Engineered Systems segment	$	1,212	$	895
Industrial Process Solutions segment		1,158		1,050
Corporate and Other		515		343
Total depreciation and amortization	$	2,885	$	2,288

(in thousands)	March 31, 2023		December 31, 2022
Identifiable assets
Engineered Systems segment	$	394,204	$	332,820
Industrial Process Solutions segment		153,647		150,458
Corporate and Other(2)		19,717		21,443
Total identifiable assets	$	567,568	$	504,721

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

(in thousands)	March 31, 2023		December 31, 2022
Goodwill
Engineered Systems segment	$	139,159	$	114,746
Industrial Process Solutions segment		68,629		68,451
Total goodwill	$	207,788	$	183,197

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 March 31, 2023
						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	$	76,089	$	(1,538	)	$	(97	)	$	—		$	74,454
Industrial Process Solutions segment		39,042		(835	)		—			(98	)		38,109
Total net sales	$	115,131	$	(2,373	)	$	(97	)	$	(98	)	$	112,563

	Three months ended March 31, 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	$	61,600	$	(4,558	)	$	(67	)	$	—		$	56,975
Industrial Process Solutions segment		37,142		(1,625	)		—			(56	)		35,461
Total net sales	$	98,742	$	(6,183	)	$	(67	)	$	(56	)	$	92,436