Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

15. Segment Reporting:

The Company’s segment reporting structure uses the Company’s management reporting structure as the foundation for how the Company manages our business. The Company periodically evaluates our segment reporting structure in accordance with ASC 350-20-55 and we have concluded that we have five reportable segments as of September 30, 2014. During 2013, the operations of the Paulin Acquisition were combined into the operations of the Canada segment. The United States segment, excluding All Points, and the Canada segment are considered material by the Company’s management as of September 30, 2014. The segments are as follows:

• United States – excluding the All Points division

• All Points

• Canada

• Mexico

• Australia

The United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States. This segment also provides innovative pet identification tag programs to a leading pet products retail chain using a unique, patent-protected/patent-pending technology and product portfolio.

The All Points segment is a Florida-based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows, and hurricane shutters.

The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, industrial distributors, automotive aftermarket distributors, and other retail outlets and industrial Original Equipment Manufacturers (“OEMs”) in Canada. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers and industrial OEMs.

The Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.

The Australia segment distributes keys, key duplicating systems, and accessories to home centers and other retail outlets in Australia.

The Company uses profit or loss from operations to evaluate the performance of our segments. Profit or loss from operations is defined as income from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, at current market prices. Segment revenue excludes sales between segments, which is consistent with the segment revenue information provided to the Company’s chief operating decision maker. Segment income (loss) from operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points segment, while the remaining operating segments do not include any allocations.

The transaction expenses incurred in connection with the Merger Transaction were recorded in the United States segment. For further information, see Note 14, Transaction, Acquisition, and Integration Expenses.

The table below presents revenues and income from operations for our reportable segments for the three and nine months ended September 30, 2014 and 2013.

	Successor			Predecessor
	Three Months Ended September 30, 2014			Three Months Ended September 30, 2013
Revenues
United States, excluding All Points	$	151,167		$	147,750
All Points		5,233			6,057
Canada		37,576			36,776
Mexico		1,775			1,583
Australia		205			216
Total revenues	$	195,956		$	192,382
Segment Income (Loss) from Operations
United States excluding All Points	$	19,069		$	19,047
All Points		496			553
Canada		4,053			2,860
Mexico		86			64
Australia		(398	)		(95	)
Total income (loss) from operations	$	23,306		$	22,429
	Successor			Predecessor
	Period from June 30, 2014 through September 30, 2014			Six Months   Ended June 29, 2014			Nine Months   Ended September 30, 2013
Revenues
United States excluding All Points	$	151,167		$	269,009		$	409,446
All Points		5,233			10,238			16,591
Canada		37,576			73,867			97,161
Mexico		1,775			3,620			5,253
Australia		205			643			561
Total revenues	$	195,956		$	357,377		$	529,012
Segment Income (Loss) from Operations
United States excluding All Points	$	(2,949	)	$	(44,830	)	$	41,199
All Points		496			896			1,537
Canada		4,053			4,214			5,277
Mexico		86			446			576
Australia		(398	)		(114	)		(803	)
Total income (loss) from operations	$	1,288		$	(39,388	)	$	47,786

The tables below present assets and cash equivalents as of September 30, 2014 and December 31, 2013.

	Successor		Predecessor
	September 30, 2014		December 31, 2013
Assets
United States excluding All Points	$	1,592,011	$	936,008
All Points		9,074		8,379
Canada		201,731		300,906
Mexico		16,691		17,964
Australia		1,839		1,599
Total Assets	$	1,821,346	$	1,264,856

	Successor		Predecessor
	September 30, 2014		December 31, 2013
Cash and cash equivalents
United States excluding All Points	$	5,154	$	27,632
All Points		530		714
Canada		4,234		5,039
Mexico		632		1,570
Australia		11		14
Total Cash and cash equivalents	$	10,561	$	34,969