Note 12 - Segment and Related Information

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

1

2

. SEGMENT AND RELATED INFORMATION

  

The Company operates

three

reportable segments:

1

) commercial air handling,

2

) test and measurement and

3

) industrial hose. The Company's management evaluates segment performance based primarily on operating earnings before taxes. Non-operating items such as marketing and general administrative expenses, interest income, and interest expense are included in administrative and other expenses. Depreciation expense on assets used in manufacturing are considered part of each segment's operating performance. Depreciation expense on non-manufacturing assets is included in selling, general and administrative expenses.

Commercial Air Handling:

This segment manufactures custom air handling units under fixed price contract to customers in the health care, university, research, pharmaceutical and industrial manufacturing market segments, and across the United States and worldwide.

Test and Measurement:

This segment consists of diagnostic tools and equipment sold to the automotive industry and indicators and gauges sold primarily to companies in the aircraft and locomotive industries. These products are sold to original equipment manufacturers and to the aftermarket using a variety of distribution methods. 

(

1

)

Industrial Hose:

This segment consists primarily of flexible metal and silicone hose products designed and manufactured or distributed primarily to the trucking industry and other industrial end-users. These products are sold to original equipment manufacturers and to the aftermarket using a variety of distribution methods.

Information by industry segment is set forth below:

 

	Three Months Ended					Six Months Ended
	June 30					June 30
	2018			2017		2018			2017
Sales
Commercial Air Handling	$	10,884,324		$	3,343,945	$	20,000,261		$	3,343,945
Test and Measurement		924,598			2,452,854		1,996,445			4,222,925
Industrial Hose		1,784,270			1,423,827		3,475,186			3,000,071
Total Sales	$	13,593,192		$	7,220,626	$	25,471,892		$	10,566,941
Income Before Provision for Income Taxes
Commercial Air Handling		1,765,374			607,471		2,630,579			607,471
Test and Measurement		(96,172	)		343,752		(225,121	)		440,885
Industrial Hose		123,964			27,673		224,153			151,807
Loss on sale of business		(1,160,574	)		-		(1,160,574	)		-
General Corporate Expenses		(106,426	)		-		(444,535	)		-
Income Before Provision for Income Taxes	$	526,166		$	978,896	$	1,024,502		$	1,200,163

( 1 ) The Company completed the sale of certain assets comprising its Test and Measurement segment on June 1, 2018.  Note Note 11, Dispositions, for additional details regarding the disposition of this segment.