Post-effective amendment to a registration statement that is not immediately effective upon filing

SEGMENT INFORMATION

v3.22.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION
15. SEGMENT INFORMATION
The Company’s products and operations are managed and reported in two operating segments: Fire Safety and Oil Additives.
The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company’s retardant and foam products.
The Oil Additives segment produces P2S5 primarily used in the preparation of lubricant additives, including a family of compounds called ZDDP, which is considered a critical component essential in the formulation of engine oils – its main function is to provide anti-wear protection to engine components.
Interest income, interest expense, other income (expense) and certain corporate operating expenses are neither allocated to the segments nor included in the measures of segment performance by the chief operating decision-maker (“CODM”). The corporate category is not considered to be a segment. The CODM is the Company’s CEO.
The Company’s CODM uses the segment net sales and Adjusted EBITDA to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain
non-recurring
or unusual items in a balanced manner and on a segment basis. These
non-recurring
or unusual items may include acquisition and integration related costs, management fees and other
non-recurring
items.
 
Information related to net sales, Adjusted EBITDA, depreciation and amortization, assets and capital expenditures of the Company’s operations are summarized below (in thousands):
 
    
Successor
                
Predecessor
  
    
For the Period

November 9, 2021

Through

December 31, 2021
                
For the Period
January 1, 2021
Through
November 8, 2021
    
Year Ended
December 31,
  
               
2020
    
2019
  
Net sales:
             
Fire safety
    $ 7,913       $ 253,267   $ 244,968   $ 151,161
Oil additives
      13,110         88,048     94,609     88,149
  
 
 
        
 
 
    
 
 
    
 
 
  
Total
    $ 21,023       $ 341,315   $ 339,577   $ 239,310
  
 
 
        
 
 
    
 
 
    
 
 
  
Adjusted EBITDA:
             
Fire safety
    $ (3,696 )        $ 121,589   $ 112,034   $ 44,748
Oil additives
      1,838         21,703     23,977     16,841
  
 
 
        
 
 
    
 
 
    
 
 
  
Total segment Adjusted EBITDA
      (1,858 )          143,292     136,011     61,589
Income tax benefit (expense)
      4,675         (14,136 )      (10,483 )      17,674
Depreciation and amortization
      9,379         52,000     58,117     58,025
Interest and financing expense
      6,352         39,087     42,017     51,655
Founders advisory fees—related party
      652,990         —         —         —    
Transaction expenses
      5,580         4,845     2,379     3,821
Share-based compensation expense
      4,821         156     —         —    
Non-cash
purchase accounting impact
      2,948         —         —         —    
Loss on contingent
earn-out
      198         2,965     —         —    
Management fees
      —             1,073     1,281     1,366
Contingent future payments
      —             4,375     3,125     3,749
Unrealized foreign currency loss (gain)
      1,006         4,026     (5,640 )      2,684
  
 
 
        
 
 
    
 
 
    
 
 
  
Net (loss) income
    $ (680,457 )        $ 20,629   $ 24,249   $ (42,037 ) 
  
 
 
        
 
 
    
 
 
    
 
 
  
Depreciation and amortization:
             
Fire safety
    $ 7,418       $ 36,994   $ 41,271   $ 40,761
Oil additives
      1,961         15,006     16,846     17,264
  
 
 
        
 
 
    
 
 
    
 
 
  
Total
    $ 9,379       $ 52,000   $ 58,117   $ 58,025
  
 
 
        
 
 
    
 
 
    
 
 
  
Capital expenditures:
             
Fire safety
    $ 529       $ 4,122   $ 1,288   $ 3,287
Oil additives
      939         4,160     6,209     5,572
  
 
 
        
 
 
    
 
 
    
 
 
  
Total
    $ 1,468       $ 8,282   $ 7,497   $ 8,859
  
 
 
        
 
 
    
 
 
    
 
 
  
 
    
Successor
                 
Predecessor
  
    
December 31, 2021
                 
December 31, 2020
  
Assets:
          
Fire safety
    $ 2,114,812        $ 793,040
Oil additives
      466,748          345,166
  
 
 
         
 
 
  
Total
    $ 2,581,560        $ 1,138,206
  
 
 
         
 
 
  
 
Net sales by geographical area is as follows (in thousands):
 
    
Successor
                
Predecessor
  
    
For the Period

November 9, 2021

Through

December 31, 2021
                
For the Period
January 1, 2021
Through
November 8, 2021
    
Year Ended December 31,
  
   
2020
    
2019
  
United States
      52 %          75 %      82 %      65 % 
International sales
(1)
      48         25     18     35
  
 
 
        
 
 
    
 
 
    
 
 
  
Total net sales
      100 %          100 %      100 %      100 % 
  
 
 
        
 
 
    
 
 
    
 
 
  
 
(1)
Except for Spain, which represented 11% of sales in the Successor Period due to the shortened reporting period, the Company had no other operations in any individual international country that represented more than 10% of sales in the Successor Period, 2021 Predecessor Period, 2020 Predecessor Period and 2019 Predecessor Period.
Property, plant and equipment, net by geographical area consisted of the following (in thousands):
 
    
Successor
                 
Predecessor
  
    
December 31,
2021
                 
December 31,
2020
  
United States
    $ 37,159        $ 29,155
Canada
      3,512          3,403
Germany
      17,199          13,487
Other foreign jurisdictions
      4,377          2,190
  
 
 
         
 
 
  
Total property, plant and equipment, net
    $ 62,247        $ 48,235