6 - Segment Information

12 Months Ended

Dec. 31, 2018

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, 2018:
Net Sales………………………………………	$      33,712,458	$      3,461,791	$                  0	$        37,174,249
Depreciation……………………………………...	1,161,082	112,942	34,424	1,308,448
Segment operating profit……………………………………	3,731,998	1,108,248	0	4,840,246
Selling and administrative expenses…………..	0	0	(2,437,598)	(2,437,598)
Other income……………………………………..	0	0	153,537	153,537
Income before income taxes……………………				2,556,185
Capital expenditures…………………………….	1,635,115	49,884	338,191	2,023,190
Segment assets:
Accounts receivable, net……………………...	5,196,437	332,870	0	5,529,307
Inventories, net………………………………...	5,075,290	1,025,101	0	6,100,391
Property, plant and equipment, net………….	10,726,191	1,579,497	952,458	13,258,146
Other assets……………………………………	0	0	8,358,781	8,358,781
				33,246,625
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

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.

The following table presents revenue by segment, further disaggregated by end-market:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2018:
Automotive	$  22,215,719	$        237,565	$   22,453,284
Non-automotive	11,496,739	3,224,226	14,720,965
Total net sales	$  33,712,458	$     3,461,791	$   37,174,249
Year Ended December 31, 2017:
Automotive	$  22,527,813	$        192,091	$   22,719,904
Non-automotive	9,450,151	3,594,659	13,044,810
Total net sales	$  31,977,964	$     3,786,750	$   35,764,714

The following table presents revenue by segment, further disaggregated by location:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2018:
United States	$  29,470,140	$       3,260,683	$   32,730,823
Foreign	4,242,318	201,108	4,443,426
Total net sales	$  33,712,458	$     3,461,791	$   37,174,249
Year Ended December 31, 2017:
United States	$  27,681,055	$       3,684,135	$   31,365,190
Foreign	4,296,909	102,615	4,399,524
Total net sales	$  31,977,964	$     3,786,750	$   35,764,714

Sales to one customer in the fastener segment accounted for 17 percent of consolidated revenues during 2018 and 19 percent in 2017.  The accounts receivable balance for this customer accounted for 15 and 25 percent of consolidated accounts receivable as of December 31, 2018 and 2017, respectively.  Sales to two other customers were each 10 percent of consolidated revenue in 2018 and accounted for 12 percent and 17 percent of consolidated accounts receivable as of December 31, 2018.