Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
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 segment Adjusted EBITDA to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines segment 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 (“Segment Adjusted EBITDA”). These non-recurring or unusual items may include acquisition, integration and restructuring related costs along with other non-recurring items.
Summarized financial information for the Company’s reportable segments are presented and reconciled to consolidated financial information in the following tables (in thousands):
Three Months Ended March 31,
2024 2023
Net sales:
Fire safety
Products $ 23,992  $ 18,026 
Service and others 1,163  718 
Total fire safety 25,155  18,744 
Specialty products 33,889  25,114 
Total net sales $ 59,044  $ 43,858 
Segment Adjusted EBITDA:
Fire safety $ (241) $ (3,361)
Specialty products 12,377  6,477 
Total Segment Adjusted EBITDA 12,136  3,116 
Depreciation and amortization 16,412  16,087 
Interest and financing expense 10,648  10,146 
Founders advisory fees - related party 68,333  (24,236)
Non-recurring expenses 540  1,559 
Share-based compensation expense 1,742  (3,074)
Loss on contingent earn-out —  246 
Foreign currency loss (gain) 1,293  (721)
(Loss) income before income taxes $ (86,832) $ 3,109