Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.23.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company’s products and operations are managed and reported in two operating segments: Fire Safety and Specialty Products.
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 Specialty Products segment produces and sells P2S5 used in several end markets and applications, including lubricant additives, various agricultural applications, various mining applications, and emerging electric battery technologies. Within the lubricant additive end market, currently the Company’s largest end market application, P2S5 is primarily used in the production of a family of compounds called ZDDP, which is considered an essential component in the formulation of engine oils with its main function to provide anti-wear protection to engine components. P2S5 is also used in pesticide and mining chemicals applications.
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 and Adjusted EBITDA for the Company’s operations are summarized below (in thousands):
Three Months Ended
March 31, 2023		 Three Months Ended
March 31, 2022
Net sales:
Fire safety $ 18,744  $ 18,470 
Specialty products 25,114  39,288 
Total $ 43,858  $ 57,758 
Adjusted EBITDA:
Fire safety $ (3,361) $ (3,334)
Specialty products 6,477  15,311 
Total segment Adjusted EBITDA 3,116  11,977 
Less:
Depreciation and amortization 16,087  16,371 
Interest and financing expense 10,146  10,496 
Founders advisory fees - related party (24,236) (59,848)
Non-recurring expenses 1,559  1,476 
Share-based compensation expense (3,074) 4,963 
Non-cash purchase accounting impact —  6,122 
Loss on contingent earn-out 246  — 
Unrealized foreign currency (gain) loss (721) 880 
Income before income taxes $ 3,109  $ 31,517