Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.22.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION 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 manufactures and sells fire retardant and firefighting foam products, as well as specialized equipment and services typically offered in conjunction with these 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 an essential component 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
Three Months Ended
March 31, 2022		 Three Months Ended
March 31, 2021
Net sales:
Fire safety $ 18,470  $ 7,650 
Oil additives 39,288  26,275 
Total $ 57,758  $ 33,925 
Adjusted EBITDA:
Fire safety $ (3,334) $ (4,646)
Oil additives 15,311  7,756 
Total segment Adjusted EBITDA 11,977  3,110 
Income tax (expense) benefit 10,232  5,383 
Depreciation and amortization 16,371  15,146 
Interest and financing expense 10,496  7,851 
Founders advisory fees - related party (59,848) — 
Transaction expenses 1,476  290 
Share-based compensation expense 5,724  — 
Non-cash purchase accounting impact 9,299  — 
Management fees —  312 
Contingent future payments —  625 
Unrealized foreign currency loss (gain) 880  2,798 
Net income (loss) $ 37,811  $ (18,529)
Depreciation and amortization:
Fire safety $ 12,778  $ 10,738 
Oil additives 3,593  4,408 
Total $ 16,371  $ 15,146 
Capital expenditures:
Fire safety $ 495  $ 534 
Oil additives 818  1,140 
Total $ 1,313  $ 1,674 
March 31, 2022 December 31, 2021
Assets:
Fire safety $ 2,053,133  $ 2,114,812 
Oil additives 470,463  466,748 
Total $ 2,523,596  $ 2,581,560 
Net sales by geographical area are as follows (in thousands):
Successor Predecessor
Three Months Ended
March 31, 2022		 Three Months Ended
March 31, 2021
United States 56  % 64  %
International sales 1
44  36 
Total net sales 100  % 100  %
1.Except for Belgium, which represented 10% and 11% of net sales for the three months ended March 31, 2022 and 2021, respectively, the Company had no other operations in any individual international country that represented 10% or more of net sales.
Property, plant and equipment, net by geographical area consisted of the following (in thousands):
March 31, 2022 December 31, 2021
United States $ 36,541  $ 37,159 
Canada 3,374  3,512 
Germany 16,440  17,199 
Other foreign jurisdictions 4,418  4,377 
Total property, plant and equipment, net $ 60,773  $ 62,247