6 - Segment Information

12 Months Ended

Dec. 31, 2015

Notes

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,  2015:
Net Sales………………………………………	$      32,590,015	$      3,584,589	$                  0	$        36,174,604
Depreciation……………………………………...	1,101,210	80,191	80,045	1,261,446
Segment operating profit……………………………………	3,692,805	981,326	0	4,674,131
Selling and administrative expenses…………..	0	0	(2,186,933)	(2,186,933)
Other income……………………………………..	0	0	44,443	44,443
Income before income taxes……………………				2,531,641
Capital expenditures…………………………….	1,545,533	455,139	103,595	2,104,267
Segment assets:
Accounts receivable, net……………………...	5,084,535	353,797	0	5,438,332
Inventories, net………………………………...	3,549,655	988,557	0	4,538,212
Property, plant and equipment, net………….	9,732,333	1,469,010	497,100	11,698,443
Other assets……………………………………	0	0	8,448,150	8,448,150
				30,123,137
Year Ended December 31, 2014:
Net sales………………………………………….	$      34,116,301	$       3,018,906	$                    0	$        37,135,207
Depreciation……………………………………...	1,123,818	65,621	73,286	1,262,725
Segment operating profit……………………………………	4,234,820	745,682	0	4,980,502
Selling and administrative expenses…………..	0	0	(2,114,893)	(2,114,893)
Other income……………………………………..	0	0	41,280	41,280
Income before income taxes……………………				2,906,889
Capital expenditures…………………………….	1,667,248	42,411	25,382	1,735,041
Segment assets:
Accounts receivable, net……………………	5,362,201	307,453	0	5,669,654
Inventories, net………………………………...	4,308,987	853,487	0	5,162,474
Property, plant and equipment, net………….	9,267,529	1,113,923	496,543	10,877,995
Other assets……………………………………	0	0	7,257,512	7,257,512
				28,967,635

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.  Certain 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 21 and 20 percent and 12 and 13 percent of consolidated revenues during 2015 and 2014, respectively.  The accounts receivable balances for these customers accounted for 26 and 23 percent of consolidated accounts receivable for the larger customer and 13 and 12 percent for the other customer as of December 31, 2015 and 2014, respectively.