6 - Segment Information

12 Months Ended

Dec. 31, 2017

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,  2017:
Net Sales………………………………………	$      31,977,964	$      3,786,750	$                  0	$        35,764,714
Depreciation……………………………………...	1,093,476	100,908	37,162	1,231,546
Segment operating profit……………………………………	3,574,783	1,350,111	0	4,924,894
Selling and administrative expenses…………..	0	0	(2,559,713)	(2,559,713)
Other income……………………………………..	0	0	100,901	100,901
Income before income taxes……………………				2,466,082
Capital expenditures…………………………….	1,093,539	178,761	65,641	1,337,941
Segment assets:
Accounts receivable, net……………………...	5,080,191	246,459	0	5,326,650
Inventories, net………………………………...	3,565,361	962,739	0	4,528,100
Property, plant and equipment, net………….	10,282,910	1,642,555	631,488	12,556,953
Other assets……………………………………	0	0	9,404,599	9,404,599
				31,816,302
Year Ended December 31,  2016:
Net Sales………………………………………	$      33,126,599	$      3,895,779	$                  0	$        37,022,378
Depreciation……………………………………...	1,078,281	93,876	70,200	1,242,357
Segment operating profit……………………………………	4,689,749	1,350,277	0	6,040,026
Selling and administrative expenses…………..	0	0	(2,557,301)	(2,557,301)
Other income……………………………………..	0	0	65,255	65,255
Income before income taxes……………………				3,547,980
Capital expenditures…………………………….	1,683,953	189,568	154,339	2,027,860
Segment assets:
Accounts receivable, net……………………...	5,036,251	287,268	0	5,323,519
Inventories, net………………………………...	3,639,940	897,753	0	4,537,693
Property, plant and equipment, net………….	10,282,847	1,564,702	603,009	12,450,558
Other assets……………………………………	0	0	8,892,539	8,892,539
				31,204,309

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 one customer in the fastener segment accounted for 19 percent of consolidated revenues during both 2017 and 2016.  The accounts receivable balance for this customer accounted for 25 and 22 percent of consolidated accounts receivable as of December 31, 2017 and 2016, respectively.  Sales to a second customer were 12 percent in 2016 and accounted for 12 percent of consolidated accounts receivable as of December 31, 2016.