Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

v3.22.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2021
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 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