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Industry Segments
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Industry Segments

18.  Industry Segments

Using the criteria of ASC 280, Segment Reporting, the Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which our Chief Operating Decision Maker (“CODM”) evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated.  These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up.

The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States and Canada. Markets served encompass various niches of industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment operates domestically through sales offices and five regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire retreaders, and government agencies. The acquisition of Tuffy, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $8.6 million and $14.6 million for the quarters ended September 30, 2019 and 2018, respectively, and $32.8 million and $39.2 million for the nine months ended September 30, 2019 and 2018, respectively.

Summarized segment detail for the quarters and nine months ended September 30, 2019 and 2018 are presented in the following table:

 

 

For the Quarter Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

84,110

 

 

$

97,682

 

 

$

282,963

 

 

$

317,621

 

Distribution

 

41,388

 

 

 

37,557

 

 

 

115,957

 

 

 

110,815

 

Inter-company sales

 

(18

)

 

 

(20

)

 

 

(40

)

 

 

(89

)

Total net sales

$

125,480

 

 

$

135,219

 

 

$

398,880

 

 

$

428,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

10,385

 

 

$

10,812

 

 

$

44,181

 

 

$

44,865

 

Distribution

 

3,382

 

 

 

2,546

 

 

 

6,923

 

 

 

7,070

 

Corporate

 

(5,707

)

 

 

(39,197

)

 

 

(22,644

)

 

 

(52,641

)

Total operating income

 

8,060

 

 

 

(25,839

)

 

 

28,460

 

 

 

(706

)

Interest expense, net

 

(993

)

 

 

(883

)

 

 

(3,059

)

 

 

(3,835

)

Income from continuing operations before income taxes

$

7,067

 

 

$

(26,722

)

 

$

25,401

 

 

$

(4,541

)