Business Segment Information

6 Months Ended

Jun. 30, 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. The Company addresses the global demand for environmental and equipment protection solutions with its highly engineered platforms including emissions management, 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, the Company assists companies in maintaining clean and safe operations for employees, reducing energy consumption, minimizing waste for customers, and meeting regulatory standards for toxic emissions, fumes, volatile organic compounds and odor elimination through its platforms including duct fabrication & installation, industrial air, and fluid handling.

The financial segment information is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2023		2022		2023		2022
Net sales (less intra-, inter-segment sales)
Engineered Systems segment	$	87,522	$	67,333	$	161,977	$	124,308
Industrial Process Solutions segment		41,659		38,042		79,767		73,503
Total net sales	$	129,181	$	105,375	$	241,744	$	197,811

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2023			2022			2023			2022
Income from operations
Engineered Systems segment	$	14,089		$	9,006		$	23,894		$	15,476
Industrial Process Solutions segment		4,586			5,482			10,131			9,621
Corporate and Other(1)		(10,072	)		(8,742	)		(19,961	)		(14,147	)
Total income from operations	$	8,603		$	5,746		$	14,064		$	10,950

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

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2023		2022		2023		2022
Property and equipment additions
Engineered Systems segment	$	444	$	27	$	688	$	32
Industrial Process Solutions segment		312		340		1,711		412
Corporate and Other		1,406		400		1,520		988
Total property and equipment additions	$	2,162	$	767	$	3,919	$	1,432

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2023		2022		2023		2022
Depreciation and amortization
Engineered Systems segment	$	1,274	$	960	$	2,486	$	1,855
Industrial Process Solutions segment		949		1,009		2,107		2,059
Corporate and Other		542		410		1,057		754
Total depreciation and amortization	$	2,765	$	2,379	$	5,650	$	4,668

(in thousands)	June 30, 2023		December 31, 2022
Identifiable assets
Engineered Systems segment	$	406,289	$	332,820
Industrial Process Solutions segment		154,610		150,458
Corporate and Other(2)		21,719		21,443
Total identifiable assets	$	582,618	$	504,721

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

(in thousands)	June 30, 2023		December 31, 2022
Goodwill
Engineered Systems segment	$	130,572	$	114,746
Industrial Process Solutions segment		69,164		68,451
Total goodwill	$	199,736	$	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 June 30, 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	$	95,880	$	(7,995	)	$	(363	)	$	—		$	87,522
Industrial Process Solutions segment		44,641		(2,806	)		-			(176	)		41,659
Total net sales	$	140,521	$	(10,801	)	$	(363	)	$	(176	)	$	129,181

	Three months ended June 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	$	70,754	$	(3,231	)	$	(190	)	$	—		$	67,333
Industrial Process Solutions segment		39,901		(1,717	)		—			(142	)		38,042
Total net sales	$	110,655	$	(4,948	)	$	(190	)	$	(142	)	$	105,375

	Six months ended June 30, 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	$	171,970	$	(9,533	)	$	(460	)	$	—		$	161,977
Industrial Process Solutions segment		83,682		(3,641	)		—			(274	)		79,767
Total net sales	$	255,652	$	(13,174	)	$	(460	)	$	(274	)	$	241,744

	Six months ended June 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	$	132,354	$	(7,789	)	$	(257	)	$	—		$	124,308
Industrial Process Solutions segment		77,043		(3,342	)		—			(198	)		73,503
Total net sales	$	209,397	$	(11,131	)	$	(257	)	$	(198	)	$	197,811