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Business Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Business Segment Information

17.

Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end markets that the segment serves and are presented in three reportable segments. The results of the segments are reviewed through to the “Income from operations” line on the Consolidated Statements of Operations. The accounting policies of the segments are the same as those in the consolidated financial statements. Except for the information reported on a segment basis, the Company does not accumulate net sales information by product or service and therefore, the Company does not disclose net sales by product or service because to do so would be impractical.

  During the first quarter of 2019, as a result of further evaluating the Company’s operating structure, management determined that a minor realignment of the Company’s segments would help maximize growth and improve customer experience. As a result of this minor realignment, the operating results of the reportable segments Fluid Handling Solutions and Industrial Solutions have been reclassified to have their results align for the years ended December 31, 2019, 2018 and 2017.    

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

 

 

Energy Solutions segment:  Our Energy Solutions segment serves the Energy market, where we are a key part of helping meet the global demand for Clean Energy through our highly engineered and tailored emissions management, silencers and separation solutions and services. Our offerings improve air quality and solves fluid handling needs with market leading technologies, efficiently designed, and customized solutions for the power generation, oil & gas, and petrochemical industries.

 

 

Industrial Solutions segment:  Our Industrial Solutions segment serves the Air Pollution Control market where our aim is to address the growing need to protect the air we breathe and help our customers’ desires for sustainability upgrades beyond carbon footprint issues.  Our clean air pollution control, collection and ventilation technologies improve air quality with a compelling solution that enable our customers to reduce their carbon footprint, lower energy consumption, minimize waste and meet compliance targets for toxic emissions, fumes, volatile organic compounds, and industrial odors.

 

 

Fluid Handling Solutions segment:  Our Fluid Handling Solutions segment offers unique pump and filtration solutions that maintain safe and clean operations in some of the most harsh and toxic environments. In this market, we provide solutions for mission-critical applications to a wide variety of industries including, but not limited to, plating and metal finishing, automotive, food and beverage, chemical, petrochemical, pharmaceutical, wastewater treatment, desalination and the aquarium & aquaculture markets.

 

 

 

 

2019

 

 

2018

 

 

2017

 

Net Sales (less intra-, inter-segment sales)

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

210,319

 

 

$

211,185

 

 

$

188,955

 

Industrial Solutions segment

 

 

91,347

 

 

 

80,699

 

 

$

93,960

 

Fluid Handling Solutions segment

 

 

40,203

 

 

 

45,455

 

 

$

63,037

 

Corporate and Other (1)

 

 

 

 

 

 

 

 

(901

)

Net sales

 

$

341,869

 

 

$

337,339

 

 

$

345,051

 

 

(1)

Includes adjustment for revenue on intercompany jobs.

 

 

2019

 

 

2018

 

 

2017

 

Income (loss) from Operations

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

33,886

 

 

$

28,797

 

 

$

14,565

 

Industrial Solutions segment

 

 

5,679

 

 

 

6,308

 

 

 

8,800

 

Fluid Handling Solutions segment

 

 

5,558

 

 

 

7,730

 

 

 

14,059

 

Corporate and Other (2)

 

 

(27,133

)

 

 

(32,833

)

 

 

(26,649

)

Eliminations

 

 

 

 

 

 

 

 

(2,751

)

Income from operations

 

$

17,990

 

 

$

10,002

 

 

$

8,024

 

 

 (2)Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general, administrative corporate expenses and loss on divestitures

 

 

 

2019

 

 

2018

 

 

2017

 

Property and Equipment Additions

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

434

 

 

$

205

 

 

$

444

 

Industrial Solutions segment

 

 

402

 

 

 

756

 

 

 

160

 

Fluid Handling Solutions segment

 

 

3,239

 

 

 

1,226

 

 

 

382

 

Corporate and Other

 

 

1,580

 

 

 

903

 

 

 

42

 

Property and equipment additions

 

$

5,655

 

 

$

3,090

 

 

$

1,028

 

 

 

 

 

2019

 

 

2018

 

 

2017

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

6,084

 

 

$

8,112

 

 

$

9,675

 

Industrial Solutions segment

 

 

1,320

 

 

 

1,067

 

 

 

1,488

 

Fluid Handling Solutions segment

 

 

2,795

 

 

 

3,517

 

 

 

4,754

 

Corporate and Other

 

 

410

 

 

 

576

 

 

 

171

 

Depreciation and amortization

 

$

10,609

 

 

$

13,272

 

 

$

16,088

 

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Identifiable Assets

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

254,752

 

 

$

245,842

 

Industrial Solutions segment

 

 

64,725

 

 

 

54,179

 

Fluid Handling Solutions segment

 

 

71,572

 

 

 

73,910

 

Corporate and Other (3)

 

 

17,588

 

 

 

18,651

 

Identifiable assets

 

$

408,637

 

 

$

392,582

 

 

 

 

 

 

 

 

 

 

 

(3)

Corporate assets primarily consist of cash and income tax related assets.

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Goodwill

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

97,007

 

 

$

97,143

 

Industrial Solutions segment

 

 

23,436

 

 

 

23,436

 

Fluid Handling Solutions segment

 

 

31,577

 

 

 

31,577

 

Goodwill

 

$

152,020

 

 

$

152,156

 

 

Intra-segment and Inter-segment Revenues

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

 

 

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

 

 

 

 

 

Total Sales

 

 

Intra - Segment

Sales

 

 

Industrial

 

 

Energy

 

 

Fluid

 

 

Corp

and

Other

 

 

Net Sales to

Outside

Customers

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

217,359

 

 

$

(6,650

)

 

$

(390

)

 

$

 

 

$

 

 

$

 

 

$

210,319

 

Industrial Solutions segment

 

 

101,369

 

 

 

(8,278

)

 

 

 

 

 

(1,677

)

 

 

(67

)

 

 

 

 

 

91,347

 

Fluid Handling Solutions segment

 

 

41,717

 

 

 

(1,300

)

 

 

(214

)

 

 

 

 

 

 

 

 

 

 

 

40,203

 

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

360,445

 

 

$

(16,228

)

 

$

(604

)

 

$

(1,677

)

 

$

(67

)

 

$

 

 

$

341,869

 

 

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

 

 

 

 

 

Total Sales

 

 

Intra - Segment

Sales

 

 

Industrial

 

 

Energy

 

 

Fluid

 

 

Corp

and

Other

 

 

Net Sales to

Outside

Customers

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

220,334

 

 

$

(7,912

)

 

$

(1,232

)

 

$

 

 

$

(5

)

 

$

 

 

$

211,185

 

Industrial Solutions segment

 

 

84,424

 

 

 

(3,084

)

 

 

 

 

 

(600

)

 

 

(41

)

 

 

 

 

 

80,699

 

Fluid Handling Solutions segment

 

 

47,561

 

 

 

(1,483

)

 

 

(616

)

 

 

(7

)

 

 

 

 

 

 

 

 

45,455

 

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

352,319

 

 

$

(12,479

)

 

$

(1,848

)

 

$

(607

)

 

$

(46

)

 

$

 

 

$

337,339

 

 

 

 

Year Ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

Less Inter-Segment Sales

 

 

 

 

 

 

 

Total Sales

 

 

Intra - Segment

Sales

 

 

Industrial

 

 

Energy

 

 

Fluid

 

 

Corp

and

Other

 

 

Net Sales to

Outside

Customers

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(table only in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Solutions segment

 

$

197,897

 

 

$

(8,833

)

 

$

(109

)

 

$

 

 

$

 

 

$

 

 

$

188,955

 

Industrial Solutions segment

 

 

98,037

 

 

 

(3,235

)

 

 

 

 

 

(787

)

 

 

(55

)

 

 

 

 

 

93,960

 

Fluid Handling Solutions segment

 

 

67,530

 

 

 

(3,169

)

 

 

(492

)

 

 

(832

)

 

 

 

 

 

 

 

 

63,037

 

Corporate and Other (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(901

)

 

 

(901

)

Net Sales

 

$

363,464

 

 

$

(15,237

)

 

$

(601

)

 

$

(1,619

)

 

$

(55

)

 

$

(901

)

 

$

345,051

 

(4) Includes adjustment for revenue on intercompany jobs.

 

No single customer represented greater than 10% of consolidated net sales or accounts receivable for 2019, 2018, or 2017.

 

For 2019, 2018, and 2017, sales to customers outside the United States, including export sales, accounted for approximately 30%, 33%, and 32%, respectively, of consolidated net sales. The largest portion of export sales in 2019 was destined for Europe (11.5%), and Asia (11.0%). Of consolidated long-lived assets, $16.9 million and $19.1 million were located outside of the United States as of December 31, 2019 and 2018, respectively. The largest portion of long-lived assets located outside the United States at December 31, 2019 were in Europe ($13.3 million).