6-Segment Information

12 Months Ended

Dec. 31, 2012

6-Segment Information:

6-Segment Information

6—Segment Information—The Company operates, primarily in the United States, in two business segments as determined by its products.  The fastener segment, which comprises H & L Tool and the parent company’s fastener operations, includes rivets, cold-formed fasteners and parts and screw machine products.  The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines.  Information by segment is as follows:

	Fastener	Assembly Equipment	Other	Consolidated
Year Ended December 31,  2012:
Net Sales………………………………………	$ 30,999,163	$  3,224,609	$ - -	$ 34,223,772
Depreciation……………………………………...	859,045	59,199	75,707	993,951
Segment profit……………………………………	3,775,045	773,902	- -	4,548,947
Selling and administrative expenses…………..			(2,084,305)	(2,084,305)
Other income……………………………………..			118,099	118,099
Income before income taxes……………………				2,582,741
Capital expenditures…………………………….	1,018,734	68,203	100,809	1,187,746
Segment assets:
Accounts receivable, net……………………...	4,275,890	302,042	- -	4,577,932
Inventories, net………………………………...	4,175,702	760,670	- -	4,936,372
Property, plant and equipment, net………….	6,363,280	1,106,318	608,268	8,077,866
Other assets……………………………………	- -	- -	8,319,333	8,319,333
				25,911,503
Year Ended December 31, 2011:
Net sales………………………………………….	$ 27,832,279	$  3,082,843	$ - -	$  30,915,122
Depreciation……………………………………...	836,062	62,463	72,971	971,496
Segment profit……………………………………	2,997,799	624,234	- -	3,622,033
Selling and administrative expenses…………..			(2,005,960)	(2,005,960)
Other income……………………………………..			249,804	249,804
Income before income taxes……………………				1,865,877
Capital expenditures…………………………….	1,510,036	61,283	40,470	1,611,789
Segment assets:
Accounts receivable, net……………………	4,143,186	255,240	- -	4,398,426
Inventories, net………………………………...	4,401,178	810,862	- -	5,212,040
Property, plant and equipment, net………….	6,153,394	1,097,314	644,817	7,895,525
Other assets……………………………………	- -	- -	7,352,273	7,352,273
				24,858,264

The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes.  Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets.  Long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities.  Other assets are not allocated to segments internally and to do so would be impracticable.  Sales to two customers in the fastener segment accounted for 18 and 17 percent and 15 and 16 percent of consolidated revenues during 2012 and 2011, respectively.  The accounts receivable balances for these customers accounted for 22 and 24 percent of consolidated accounts receivable for the larger customer and 16 and 20 percent for the other customer as of December 31, 2012 and 2011, respectively.