Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is a global solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance needs of its customers’ challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia where it markets its products and services primarily through an internal sales force. The Company has three reporting segments: the Rail, Technologies, and Services segment, the Precast Concrete Products segment, and the Steel Products and Measurement segment. The Company’s segments represent components of the Company (a) that engage in activities from which revenue is generated and expenses are incurred, (b) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who uses such information to make decisions about resources to be allocated to the segments, and (c) for which discrete financial information is available.

Operating segments are evaluated on their segment profit contribution to the Company’s consolidated results. The Company considers the aggregation of operating segments into reporting segments based on nature of offerings, nature of production services, the type or class of customer for products and services, methods used to distribute products and services, and economic and regulatory environment conditions.

The Company’s Rail, Technologies, and Services reporting segment is the aggregation of the Rail Products and Global Friction Management and the Technology Services and Solutions operating segments, which was evaluated based on the factors outlined above. The Rail, Technologies, and Services reporting segment engineers, manufactures, and assembles friction management products and railway wayside data collection, application systems, railroad condition monitoring systems and equipment, wheel impact load detection systems, management systems, and provides services for these products. The Rail, Technologies, and Services segment also provides a full line of new and used rail, trackwork, and accessories to railroads, mines, and other customers in the rail industry as well as designs and produces insulated rail joints, power rail, track fasteners, concrete railroad ties, coverboards, and special accessories for mass transit and other rail systems. In addition, the Rail, Technologies, and Services segment provides controls, display, and telecommunication contract management solutions for the transit, control room, and customer information and display sectors to enhance safety, operational efficiency, and customer experience. On June 21, 2022, the Company acquired the stock of Skratch, located in Telford, United Kingdom, which offers a single-point supply solution model for clients, and enabling large scale deployments of its intelligent digital signage solutions. Skratch’s service offerings include design, prototyping and proof of concept, hardware and software, logistics and warehousing, installation, maintenance, content management, and managed monitoring. Skratch has been included in the Company’s Technology Services and Solutions business unit within the Rail, Technologies, and Services segment. Additionally, on August 1, 2022, the Company divested its Track Components business located in St-Jean-sur-Richelieu, Quebec, Canada, which resulted in a pre-tax loss of $467. Results of the Track Components business are included in the Company’s Rail Products business unit within the Rail, Technologies, and Services segment.

The Company’s Precast Concrete Products segment produces precast concrete buildings and a variety of specialty precast concrete products for use in several infrastructure end markets, including transportation and general infrastructure. Precast concrete buildings are primarily used as restrooms, concession stands, and protective storage buildings in national, state, and municipal parks, while other precast products include sound walls, bridge beams, box culverts, septic tanks, and other custom pre-stressed products. On August 12, 2022, the Company acquired the operating assets of VanHooseCo, a privately-held business headquartered in Loudon, Tennessee, specializing in precast concrete walls, water management products, and traditional precast products for the industrial, commercial, and residential infrastructure markets and has been included in the Precast Concrete Products segment.

The Company’s Steel Products and Measurement segment sells bridge decking, bridge railing, structural steel fabrications, expansion joints, bridge forms and other products for highway construction and repair. This segment also produces threaded pipe products for industrial water well and irrigation markets as well as the oil and gas markets. Lastly, this segment provides pipe coatings for oil and gas pipelines and utilities, precision measurement systems for the oil and gas market. On September 24, 2021, the Company completed the sale of its Piling Products business. The Company retained all pre-closing receivables and liabilities associated with the business. The sale included substantially all inventory and fixed assets held by the Company associated with the division. Results of the Piling Products business were included in the Company’s Steel Products and Measurement segment.

Segment profit from operations includes allocated corporate operating expenses. Operating expenses related to corporate headquarter functions were allocated to each segment based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments. Other income and expenses, interest, income taxes, and certain other items are managed on a consolidated basis. Management believes the allocation of corporate operating expenses provides an accurate presentation of how the segments utilize corporate support activities. This provides the CODM meaningful segment profitability information to support operating decisions and the allocation of resources.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies found in Note 1.

The operating results and assets of the Company’s reportable segments were as follows as of and for the year ended December 31, 2022:

	2022
	Net Sales		Segment Operating Profit (Loss)		Segment Assets		Depreciation/Amortization		Expenditures for Long-Lived Assets
Rail, Technologies, and Services	$	300,592	$	11,454	$	172,111	$	5,620	$	1,218
Precast Concrete Products	104,212		1,692		108,598		3,162		2,833
Steel Products and Measurement	92,693		(10,824)		54,516		4,502		267
Total	$	497,497	$	2,322	$	335,225	$	13,284	$	4,318

The operating results and assets of the Company’s reportable segments were as follows as of and for the year ended December 31, 2021:

	2021
	Net Sales		Segment Operating Profit (Loss)		Segment Assets		Depreciation/Amortization		Expenditures for Long-Lived Assets
Rail, Technologies, and Services	$	299,749	$	14,165	$	171,608	$	6,089	$	1,081
Precast Concrete Products	70,990		1,545		48,740		1,716		2,441
Steel Products and Measurement	142,881		(2,402)		58,377		4,738		78
Total	$	513,620	$	13,308	$	278,725	$	12,543	$	3,600

During 2022 and 2021, no single customer accounted for more than 10% of the Company’s consolidated net sales. Sales between segments were immaterial and eliminated in consolidation.

Reconciliations of reportable segment net sales, profits, assets, depreciation/amortization, and expenditures for long-lived assets to the Company’s consolidated totals are as follows as of and for the years ended December 31:

	2022		2021
Income from operations:
Total segment operating profit	$	2,322	$	13,308
Interest expense - net	(3,340)		(2,956)
Other income - net	1,550		3,075
Corporate expense and other unallocated charges	(9,528)		(8,837)
(Loss) income from continuing operations before income taxes	$	(8,996)	$	4,590
Assets:
Total segment assets	$	335,225	$	278,725
Unallocated corporate assets	30,085		63,870
Assets	$	365,310	$	342,595
Depreciation/Amortization:
Total segment depreciation/amortization	$	13,284	$	12,543
Corporate depreciation/amortization	1,495		1,344
Depreciation/amortization	$	14,779	$	13,887
Expenditures for Long-Lived Assets:
Total segment expenditures for long-lived assets	$	4,318	$	3,600
Corporate expenditures for long-lived assets	3,315		1,020
Expenditures for long-lived assets	$	7,633	$	4,620

The following table summarizes the Company’s sales by major geographic region in which the Company had operations for the years ended December 31:

	2022		2021
United States	$	378,339	$	391,218
Canada	38,489		36,477
United Kingdom	46,590		57,600
Other	34,079		28,325
Total net sales	$	497,497	$	513,620

The following table summarizes the Company’s long-lived assets by geographic region as of December 31:

	2022		2021
United States	$	82,846	$	53,527
Canada	110		2,597
United Kingdom	1,533		1,668
Other	855		430
Total property, plant, and equipment - net	$	85,344	$	58,222

The following table summarizes the Company’s sales by major product and service line for the years ended December 31:

	December 31,
	2022		2021
Rail Products and Global Friction Management	$	255,713	$	248,237
Technology Services and Solutions	44,879		51,512
Rail, Technologies, and Services	300,592		299,749
Precast Concrete Buildings	61,143		55,993
Other Precast Concrete Products	43,069		14,997
Precast Concrete Products	104,212		70,990
Coatings and Measurement	38,329		27,833
Fabricated Steel Products	54,364		115,048
Steel Products and Measurement	92,693		142,881
Total net sales	$	497,497	$	513,620