Business and Geographic Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business and Geographic Segments

Note 2 – Business and geographic segments:

Our operating segments are defined as components of our operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance. At December 31, 2021, we had two reportable operating segments – Security Products and Marine Components.

The Security Products segment, with a facility in South Carolina and a facility shared with Marine Components in Illinois, manufactures locking mechanisms and other security products for sale to the transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare and other industries.

Our Marine Components segment, with a facility in Wisconsin and a facility shared with Security Products in Illinois, manufactures and distributes stainless steel exhaust systems, gauges, throttle controls, wake enhancement systems, trim tabs and related hardware and accessories primarily for performance and ski/wakeboard boats.

The chief operating decision maker evaluates segment performance based on segment operating income, which is defined as income before income taxes, exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of long-lived assets outside the ordinary course of business). The accounting policies of the reportable operating segments are the same as those described in Note 1. Capital expenditures include additions to property and equipment but exclude amounts attributable to business combinations.

Segment assets are comprised of all assets attributable to the reportable segments. Corporate assets are not attributable to the operating segments and consist primarily of cash, cash equivalents and note receivable from affiliate. For geographic information, the point of origin (place of manufacture) for all net sales is the U.S., the point of destination for net sales is based on the location of the customer, and property and equipment are attributable to their physical location. Intersegment sales are not material.

	Years ended December 31,
	2019		2020		2021
	(In thousands)
Net sales:
Security Products	$	99,328	$	87,863	$	105,124
Marine Components		24,915		26,674		35,691
Total net sales	$	124,243	$	114,537	$	140,815
Operating income (loss):
Security Products	$	21,013	$	14,926	$	21,622
Marine Components		3,644		4,088		5,591
Corporate operating expenses		(6,991)		(7,197)		(6,687)
Total operating income		17,666		11,817		20,526
Interest income		3,270		1,680		1,197
Income before income taxes	$	20,936	$	13,497	$	21,723
Depreciation and amortization:
Security Products	$	3,056	$	3,069	$	2,890
Marine Components		627		757		940
Corporate		1		1		9
Total	$	3,684	$	3,827	$	3,839

Capital expenditures:
Security Products	$	1,530	$	1,252	$	1,044
Marine Components		1,636		458		3,050
Corporate		—		30		—
Total	$	3,166	$	1,740	$	4,094

Net sales point of destination:
United States	$	114,186	$	107,712	$	129,160
Canada		7,257		4,423		8,061
Mexico		922		431		589
Other		1,878		1,971		3,005
Total	$	124,243	$	114,537	$	140,815

	December 31,
	2019		2020		2021
	(In thousands)
Total assets:
Security Products	$	73,697	$	70,755	$	78,193
Marine Components		15,256		15,515		18,167
Corporate		89,591		97,775		96,092
Total	$	178,544	$	184,045	$	192,452

Net property and equipment for 2019, 2020 and 2021 is entirely located within the United States.