Business Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is a global technology 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’ most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. 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, 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. Other income and expenses, interest, income taxes, and certain other items are managed on a consolidated basis. The Company’s segment accounting policies are described in Note 2 Business Segments of the Notes to the Company’s Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2022.

The operating results of the Company’s reportable segments were as follows for the periods presented:

	Three Months Ended September 30, 2023				Three Months Ended September 30, 2022
	Net Sales		Segment Operating Profit (Loss)		Net Sales		Segment Operating Profit
Rail, Technologies, and Services	$	86,866	$	3,865	$	77,350	$	539
Precast Concrete Products	38,642		3,389		28,856		1,245
Steel Products and Measurement	19,837		(1,521)		23,809		303
Total	$	145,345	$	5,733	$	130,015	$	2,087

	Nine Months Ended September 30, 2023				Nine Months Ended September 30, 2022
	Net Sales		Segment Operating Profit (Loss)		Net Sales		Segment Operating Profit (Loss)
Rail, Technologies, and Services	$	242,866	$	12,880	$	222,857	$	5,576
Precast Concrete Products	96,795		4,337		67,477		329
Steel Products and Measurement	69,206		(73)		69,990		(1,083)
Total	$	408,867	$	17,144	$	360,324	$	4,822

Segment profit (loss) from operations, as shown above, includes allocated corporate operating expenses. Operating expenses related to corporate headquarter functions that directly support the segment activity are allocated 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.

The following table demonstrates a reconciliation of reportable segment net profit to the Company’s consolidated total for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating profit for reportable segments	$	5,733	$	2,087	$	17,144	$	4,822
Interest expense - net	(1,442)		(993)		(4,404)		(1,747)
Other (expense) income - net	(917)		(168)		(3,463)		1,096
Unallocated corporate expenses and other unallocated charges	(3,048)		(3,207)		(7,607)		(5,749)
Income (loss) before income taxes	$	326	$	(2,281)	$	1,670	$	(1,578)

The following table illustrates assets of the Company by reportable segment for the periods presented:

	September 30, 2023		December 31, 2022
Rail, Technologies, and Services	$	164,728	$	172,111
Precast Concrete Products	106,243		108,598
Steel Products and Measurement	36,481		54,516
Unallocated corporate assets	27,139		30,085
Total	$	334,591	$	365,310

On August 30, 2023, the Company announced the discontinuation of its Bridge Products grid deck product line. The Bedford, PA based operations supporting the product line are expected to cease in the fourth quarter of 2023. For the three months ended September 30, 2023 and 2022, the product line had $283 and $2,967 in sales, respectively, and for the nine months ended September 30, 2023 and 2022, the product line had $3,749 and $12,975 in sales, respectively. The Company incurred $1,069 of exit costs recorded in “Other expense (income) - net,” which includes $345 in inventory write-downs, $462 in personnel expenses, and $262 in other exit costs. The Company expects to incur an additional $520 of personnel expenses associated with the exit through 2024. During the three months ended September 30, 2023 the Company also recorded a $1,977 reduction in net sales and a $3,051 reduction in gross profit stemming from changes in expected value of certain commercial projects associated with the exit of the product line. The grid deck product line was reported in the Bridge Products business unit within the Steel Products and Measurement segment.

On June 30, 2023, the Company sold substantially all the operating assets of the prestressed concrete railroad tie business operated by its wholly-owned subsidiary, CXT Incorporated (“Ties”), located in Spokane, WA, for $2,362 in proceeds, subject to final working capital adjustments, generating a $1,009 loss on the sale, which was recorded in “Other expense (income) - net.” The Ties business was reported in the Rail Products business unit within the Rail, Technologies, and Services segment.

On March 30, 2023, the Company sold substantially all the operating assets of its Precision Measurement Products and Systems business, Chemtec Energy Services LLC (“Chemtec”), for $5,344 in proceeds, subject to final working capital adjustments, generating a $2,065 loss on the sale, which was recorded in “Other expense (income) - net.” The Chemtec business was reported in the Coatings and Measurement business unit within the Steel Products and Measurement segment.