Industry Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Industry Segments

17.  Industry Segments

The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the 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 include 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 also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its 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 $9.2 million and $11.4 million for the quarters ended June 30, 2020 and 2019, respectively, and $18.2 million and $24.2 million for the six months ended June 30, 2020 and 2019.

Summarized segment detail for the quarters and six months ended June 30, 2020 and 2019 are presented in the following table:

	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
Net Sales
Material Handling	$	80,855		$	95,902		$	164,931		$	198,853
Distribution		37,541			38,395			75,736			74,569
Inter-company sales		(2	)		(12	)		(23	)		(22	)
Total net sales	$	118,394		$	134,285		$	240,644		$	273,400
Operating income
Material Handling	$	15,796		$	17,589		$	30,963		$	33,796
Distribution		1,636			3,328			3,486			3,541
Corporate (1)		(5,176	)		(10,735	)		1,105			(16,937	)
Total operating income		12,256			10,182			35,554			20,400
Interest expense, net		(1,194	)		(1,017	)		(2,263	)		(2,066	)
Income from continuing operations before income taxes	$	11,062		$	9,165		$	33,291		$	18,334

(1) Corporate results for the six months ended June 30, 2020 include the $11.9 million gain on sale of notes receivable as described in Note 5 and results for the quarter and six months ended June 30, 2019 include the $4.0 million environmental charge as described in Note 12.