| Schedule of Information About the Company's Segments |
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:
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Three Months Ended December 31, 2025 |
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Memorialization |
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Industrial Technologies |
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Brand Solutions (1)
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Reportable Segments Total |
| Sales |
$ |
204,175 |
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$ |
69,015 |
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$ |
11,573 |
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$ |
284,763 |
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Cost of sales (2)
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(114,026) |
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(54,057) |
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(9,468) |
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(177,551) |
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Gross profit (2)
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90,149 |
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14,958 |
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2,105 |
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107,212 |
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Selling expense (2)
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(23,309) |
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(7,433) |
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(141) |
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(30,883) |
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Administrative expense (2)
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(27,891) |
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(11,983) |
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(4,473) |
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(44,347) |
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Other segment items (3)
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— |
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— |
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15,203 |
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15,203 |
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| Adjusted EBITDA |
$ |
38,949 |
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$ |
(4,458) |
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$ |
12,694 |
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$ |
47,185 |
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| Intersegment sales |
$ |
— |
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$ |
974 |
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$ |
3 |
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$ |
977 |
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| Depreciation and amortization |
8,147 |
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3,478 |
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609 |
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12,234 |
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| Total assets |
902,399 |
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323,013 |
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304,459 |
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1,529,871 |
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| Capital expenditures |
4,530 |
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295 |
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187 |
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5,012 |
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Three Months Ended December 31, 2024 |
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Memorialization |
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Industrial Technologies |
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Brand Solutions (1)
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Reportable Segments Total |
| Sales |
$ |
190,486 |
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$ |
80,533 |
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$ |
130,823 |
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$ |
401,842 |
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Cost of sales (2)
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(108,893) |
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(57,851) |
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(97,892) |
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(264,636) |
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Gross profit (2)
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81,593 |
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22,682 |
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32,931 |
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137,206 |
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Selling expense (2)
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(18,967) |
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(7,480) |
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(7,837) |
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(34,284) |
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Administrative expense (2)
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(26,014) |
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(13,370) |
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(12,802) |
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(52,186) |
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| Adjusted EBITDA |
$ |
36,612 |
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$ |
1,832 |
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$ |
12,292 |
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$ |
50,736 |
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| Intersegment sales |
$ |
— |
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$ |
310 |
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$ |
283 |
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$ |
593 |
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| Depreciation and amortization |
7,202 |
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5,674 |
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8,860 |
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21,736 |
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| Total assets |
810,454 |
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453,697 |
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493,214 |
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1,757,365 |
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| Capital expenditures |
4,490 |
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1,382 |
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3,644 |
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9,516 |
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Note 15. Segment Information (continued)
(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-months ended December 31, 2025 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).
A reconciliation of adjusted EBITDA to income (loss) before income taxes and net income (loss) follows:
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Three Months Ended
December 31, |
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2025 |
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2024 |
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| Reportable Segments Adjusted EBITDA |
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$ |
47,185 |
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$ |
50,736 |
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| Corporate and Non-Operating |
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(11,947) |
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(10,713) |
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Acquisition and divestiture related items (1)**
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(1,118) |
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(577) |
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Strategic initiatives and other items (2)**†
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(15,250) |
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(615) |
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| Gain on divestitures, net |
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113,209 |
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— |
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Highly inflationary accounting losses (primarily non-cash) (3)
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(16) |
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(191) |
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| Stock-based compensation |
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(4,407) |
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(4,979) |
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Non-service pension and postretirement expense (4)
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(38) |
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(133) |
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Depreciation and amortization *
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(12,696) |
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(22,504) |
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Interest expense, including RPA and factoring financing fees (5)
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(15,301) |
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(16,854) |
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Propelis depreciation, amortization, interest and other items (6)
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(15,203) |
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— |
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| Income (loss) before income taxes |
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84,418 |
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(5,830) |
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| Income tax (provision) benefit |
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(40,789) |
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2,358 |
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| Net income (loss) |
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$ |
43,629 |
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$ |
(3,472) |
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(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities.
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(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 $8,997 and $6,867 for the three months ended December 31, 2025 and 2024, respectively (see Note 18, "Legal Matters"). Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,702 for the three months ended December 31, 2024. Fiscal 2025 also includes loss recoveries totaling $1,170 for the three months ended December 31, 2024 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.
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(3) Represents exchange losses associated with highly inflationary accounting related to certain Turkish subsidiaries which were recently divested (see Note 2, "Basis of Presentation").
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(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.
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(5) Includes fees for receivables sold under the RPA and factoring arrangements totaling $668 and $1,172 for the three months ended December 31, 2025 and 2024, respectively.
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(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).
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* Depreciation and amortization was $8,147 and $7,202 for the Memorialization segment, $3,478 and $5,674 for the Industrial Technologies segment, $609 and $8,860 for the Brand Solutions segment, and $462 and $768 for Corporate and Non-Operating, for the three months ended December 31, 2025 and 2024, respectively.
** Acquisition and divestiture costs, ERP system integration costs, and strategic initiatives and other charges were $69 and $1,303 for the Memorialization segment, $10,353 and $4,119 for the Industrial Technologies segment, $3,493 and $714 for the Brand Solutions segment, and charges of $2,453 and income of $4,944 for Corporate and Non-Operating, for the three months ended December 31, 2025 and 2024, respectively.
† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $1,523 and $313 for the three months ended December 31, 2025 and 2024, respectively, Refer to Note 10, "Restructuring" for further details.
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