Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 6 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company manages its businesses under three reportable segments: Memorialization, Industrial Technologies and Brand Solutions. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes product identification, and the design, manufacturing, service and sales of high-tech custom energy storage solutions including coating and converting lines. The segment historically provided warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products, and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The Brand Solutions segment historically provided brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.

On May 1, 2025, the Company contributed its SGK Business to a newly-formed entity, Propelis, in exchange for a 40% ownership interest in Propelis and other consideration. Propelis is a leading global provider of brand solutions. In December 2025, the Company sold its European roto-gravure packaging and tooling and flexographic print businesses to the local management of those businesses in exchange for cash and other consideration. On December 31, 2025, the Company sold its warehouse automation business for cash consideration. Following the completion of these transactions, the Company's Industrial Technologies segment consists of product identification, and the design, manufacturing, service and sales of high-tech custom energy storage solutions including coating and converting lines, and the Company's Brand Solutions segment consists of its 40% ownership interest in Propelis. Activity prior to May 1, 2025 for the SGK Business is included within the consolidated financial statements of the Company. As of May 1, 2025 the SGK Business has been deconsolidated from the financial statements and is now accounted for as part of the Company's equity-method investment in Propelis. See Notes 7, "Investments" and 16, "Acquisitions and Divestitures" for further information.

The Company's primary measure of segment profitability is adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA"). Adjusted EBITDA is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of its operating results. These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition and divestiture costs, gains and losses on divestitures, enterprise resource planning ("ERP") system integration costs, and strategic initiatives and other charges. In addition, adjusted EBITDA does not include depreciation, intangible amortization, interest expense and other items incurred by Propelis. Reportable Segments adjusted EBITDA is also determined before corporate and non-operating expenses. This presentation is consistent with how the Company's chief operating decision maker (the “CODM”), identified as the Company's President and Chief Executive Officer, evaluates the results of operations versus budgets, forecasts, and historical performance, and makes strategic and resource allocation decisions about the business. For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss.

In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis. Accordingly, for segment reporting purposes, the Company does not allocate corporate costs to its reportable segments. Corporate costs include management and administrative support to the Company, which consists of certain aspects of the Company’s executive management, legal, compliance, human resources, information technology (including operational support) and finance departments. These costs are included within "Corporate and Non-Operating" in the table below which reconciles adjusted EBITDA to income (loss) before income taxes and net income (loss). Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to the segments. Intersegment sales are accounted for at negotiated prices. Segment assets include those assets that are used in the Company's operations within each segment.

The following tables present sales and significant expense categories that align with the segment-level information that is regularly provided to the CODM. Information about the Company's reportable segments follows:
Note 15.   Segment Information (continued)
Three Months Ended March 31, 2026
  Memorialization Industrial Technologies
Brand Solutions (1)
Reportable Segments Total
Sales $ 215,257  $ 43,362  $ —  $ 258,619 
Cost of sales (2)
(117,455) (33,095) (16) (150,566)
Gross profit (2)
97,802  10,267  (16) 108,053 
Selling expense (2)
(21,674) (4,356) 141  (25,889)
Administrative expense (2)
(27,297) (9,224) (9,286) (45,807)
Other segment items (3)
—  —  18,776  18,776 
Adjusted EBITDA $ 48,831  $ (3,313) $ 9,615  $ 55,133 
Intersegment sales $ —  $ 425  $ —  $ 425 
Depreciation and amortization 8,041  2,966  —  11,007 
Total assets (4)
902,636  310,549  258,193  1,471,378 
Capital expenditures 1,907  1,723  134  3,764 
Six Months Ended March 31, 2026
  Memorialization Industrial Technologies
Brand Solutions (1)
Reportable Segments Total
Sales $ 419,432  $ 112,377  $ 11,573  $ 543,382 
Cost of sales (2)
(231,481) (87,152) (9,484) (328,117)
Gross profit (2)
187,951  25,225  2,089  215,265 
Selling expense (2)
(44,983) (11,789) —  (56,772)
Administrative expense (2)
(55,188) (21,207) (13,759) (90,154)
Other segment items (3)
—  —  33,979  33,979 
Adjusted EBITDA $ 87,780  $ (7,771) $ 22,309  $ 102,318 
Intersegment sales $ —  $ 1,399  $ 3  $ 1,402 
Depreciation and amortization 16,188  6,444  609  23,241 
Capital expenditures 6,437  2,018  321  8,776 
Three Months Ended March 31, 2025
  Memorialization Industrial Technologies
Brand Solutions (1)
Reportable Segments Total
Sales $ 205,620  $ 80,835  $ 141,174  $ 427,629 
Cost of sales (2)
(115,339) (53,495) (104,874) (273,708)
Gross profit (2)
90,281  27,340  36,300  153,921 
Selling expense (2)
(20,486) (7,989) (8,075) (36,550)
Administrative expense (2)
(24,757) (13,309) (12,629) (50,695)
Adjusted EBITDA $ 45,038  $ 6,042  $ 15,596  $ 66,676 
Intersegment sales $ —  $ 64  $ 433  $ 497 
Depreciation and amortization 7,170  5,644  4,718  17,532 
Total assets (4)
823,391  443,290  470,851  1,737,532 
Capital expenditures 4,266  1,827  2,510  8,603 
Note 15.   Segment Information (continued)
Six Months Ended March 31, 2025
  Memorialization Industrial Technologies
Brand Solutions (1)
Reportable Segments Total
Sales $ 396,106  $ 161,368  $ 271,997  $ 829,471 
Cost of sales (2)
(224,232) (111,346) (202,766) (538,344)
Gross profit (2)
171,874  50,022  69,231  291,127 
Selling expense (2)
(39,454) (15,469) (15,912) (70,835)
Administrative expense (2)
(50,770) (26,679) (25,431) (102,880)
Adjusted EBITDA $ 81,650  $ 7,874  $ 27,888  $ 117,412 
Intersegment sales $ —  $ 374  $ 716  $ 1,090 
Depreciation and amortization 14,372  11,318  13,578  39,268 
Capital expenditures 8,756  3,209  6,154  18,119 

(1) Amounts do not include revenue recognized by, costs and expenses attributable to, or assets owned by Propelis, since Propelis is a non-consolidated subsidiary accounted for under the equity-method. (see Note 7, "Investments" for further information).
(2) Amounts do not include certain non-cash and/or non-recurring items that do not contribute directly to management's evaluation of its operating results (as described further in the reconciliation of adjusted EBITDA in the table below) and also exclude depreciation, amortization and stock-based compensation expense.
(3) The three and six months ended March 31, 2026 includes the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis (see Note 7, "Investments" for further information with respect to the equity-method investment in Propelis).
(4) Total assets represent amounts at March 31, 2026 and 2025, respectively.
A reconciliation of adjusted EBITDA to income (loss) before income taxes and net income (loss) follows:
Three Months Ended March 31, Six Months Ended March 31,
2026 2025 2026 2025
Reportable Segments Adjusted EBITDA $ 55,133  $ 66,676  $ 102,318  $ 117,412 
Corporate and Non-Operating (10,389) (15,262) (22,336) (25,975)
Acquisition and divestiture related items (1)**
(194) (13,701) (1,312) (14,278)
Strategic initiatives and other items (2)**†
(6,394) (5,373) (21,644) (5,988)
Gain (loss) on divestitures, net (3,945) (2,072) 109,264  (2,072)
Highly inflationary accounting losses (primarily non-cash) (3)
—  (520) (16) (711)
Stock-based compensation (5,136) (6,018) (9,543) (10,997)
Non-service pension and postretirement expense (4)
(75) (133) (113) (266)
Depreciation and amortization *
(11,508) (18,231) (24,204) (40,735)
Interest expense, including RPA and factoring financing fees (5)
(10,424) (17,010) (25,725) (33,864)
Loss on debt extinguishment (16,343) —  (16,343) — 
Propelis depreciation, amortization, interest and other items (6)
(18,776) —  (33,979) — 
(Loss) income before income taxes (28,051) (11,644) 56,367  (17,474)
Income tax benefit (provision) 6,217  2,728  (34,572) 5,086 
Net (loss) income $ (21,834) $ (8,916) $ 21,795  $ (12,388)
Note 15.   Segment Information (continued)

(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities.
(2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, which totaled $2,175 and $1,757 for the three months ended March 31, 2026 and 2025, respectively, and $11,172 and $8,624 for the six months ended March 31, 2026 and 2025, respectively (see Note 18, "Legal Matters"). Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $4,538 for the three months ended March 31, 2025 and $4,902 for the six months ended March 31, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,655 for the six months ended March 31, 2025. Fiscal 2025 also includes loss recoveries totaling $1,170 for the six months ended March 31, 2025 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.
(3) Represents exchange losses associated with highly inflationary accounting related to certain Turkish subsidiaries which were recently divested (see Note 2, "Basis of Presentation").
(4) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.
(5) Includes fees for receivables sold under the RPA and factoring arrangements totaling $382 and $1,145 for the three months ended March 31, 2026 and 2025, respectively, and $1,050 and $2,317 for the six months ended March 31, 2026 and 2025, respectively.
(6) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis (see Note 7, "Investments" for further information with respect to the equity-method investment in Propelis).
* Depreciation and amortization was $8,041 and $7,170 for the Memorialization segment, $2,966 and $5,644 for the Industrial Technologies segment, and $501 and $699 for Corporate and Non-Operating, for the three months ended March 31, 2026 and 2025, respectively. Depreciation and amortization was $16,188 and $14,372 for the Memorialization segment, $6,444 and $11,318 for the Industrial Technologies segment, $609 and $13,578 for the Brand Solutions segment, and $963 and $1,467 for Corporate and Non-Operating, for the six months ended March 31, 2026 and 2025, respectively. Depreciation and amortization was $4,718 for the Brand Solutions segment for the three months ended March 31, 2026.
** Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $380 and $2,410 for the Memorialization segment, $2,739 and $192 for the Industrial Technologies segment, income of $91 and charges of $416 for the Brand Solutions segment, and $3,560 and $16,056 for Corporate and Non-Operating, for the three months ended March 31, 2026 and 2025, respectively. Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $449 and $3,713 for the Memorialization segment, $13,092 and $4,311 for the Industrial Technologies segment, $3,402 and $1,130 for the Brand Solutions segment, and $6,013 and $11,112 for Corporate and Non-Operating, for the six months ended March 31, 2026 and 2025, respectively.
† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $782 and income of $2,471 for the three months ended March 31, 2026 and 2025, respectively, and expenses of $2,305 and income of $1,305 for the six months ended March 31, 2026 and 2025, respectively. Refer to Note 10, "Restructuring" for further details.