Business and geographic segments

12 Months Ended

Dec. 31, 2023

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, 2023, 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 postal, transportation, 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 wake enhancement systems, stainless steel exhaust systems, gauges, throttle controls, trim tabs and related hardware and accessories primarily for ski/wakeboard boats and performance 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, marketable securities 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,
	2021		2022		2023
	(In thousands)
Net sales:
Security Products	$	105,124	$	114,519	$	121,182
Marine Components		35,691		52,043		40,105
Total net sales	$	140,815	$	166,562	$	161,287
Operating income:
Security Products	$	21,622	$	22,744	$	24,941
Marine Components		5,591		9,561		7,218
Corporate operating expenses		(6,687)		(6,869)		(6,724)
Total operating income		20,526		25,436		25,435
Interest income		1,197		1,877		4,168
Income before income taxes	$	21,723	$	27,313	$	29,603
Depreciation and amortization:
Security Products	$	2,890	$	2,801	$	2,748
Marine Components		940		1,167		1,217
Corporate		9		9		8
Total	$	3,839	$	3,977	$	3,973

Capital expenditures:
Security Products	$	1,044	$	2,015	$	970
Marine Components		3,050		1,680		160
Total	$	4,094	$	3,695	$	1,130

Net sales point of destination:
United States	$	129,160	$	153,982	$	155,092
Canada		8,061		9,227		3,153
Mexico		589		722		829
Other		3,005		2,631		2,213
Total	$	140,815	$	166,562	$	161,287

	December 31,
	2021		2022		2023
	(In thousands)
Total assets:
Security Products	$	78,193	$	80,671	$	78,519
Marine Components		18,167		26,372		24,619
Corporate		96,092		70,344		84,466
Total	$	192,452	$	177,387	$	187,604

Net property and equipment for 2021, 2022 and 2023 is entirely located within the United States.