• | reconcile from total segment operating income to operating income and then on to net income to highlight the differences between the non-GAAP measure and operating income, |
• | identify this amount as a non-GAAP performance measure, |
• | state the material limitations associated with use of the non-GAAP financial measure as compared to the use of the most directly comparable GAAP financial measure, |
• | state the manner in which management compensates for these limitations when using the non-GAAP financial measure, |
• | explain why your management believes that this measure provides useful information to |
• | state how you management uses the non-GAAP measure, |
• | provide cautionary disclosure that the non-GAAP measure presented may not be comparable to similarly titled measures used by other entities and |
• | state that this non-GAAP measure should not be considered as an alternative to net income, which is determined in accordance with GAAP. |
BUSINESS SEGMENTS | ||||||||||||||||||||||||
(IN THOUSANDS) | ||||||||||||||||||||||||
For the years ended January 31 | ||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
APPLIED TECHNOLOGY DIVISION | ||||||||||||||||||||||||
Sales | $ | 100,090 | $ | 86,217 | $ | 103,098 | $ | 64,291 | $ | 45,515 | $ | 47,506 | ||||||||||||
Operating income | 31,135 | 25,722 | 33,884 | 19,102 | 10,111 | 13,586 | ||||||||||||||||||
Assets | 52,669 | 51,029 | 48,881 | 36,938 | 27,629 | 30,047 | ||||||||||||||||||
Capital expenditures | 1,769 | 941 | 2,674 | 1,008 | 577 | 938 | ||||||||||||||||||
Depreciation and amortization | 2,238 | 1,677 | 1,383 | 1,125 | 1,142 | 1,085 | ||||||||||||||||||
ENGINEERED FILMS DIVISION | ||||||||||||||||||||||||
Sales | $ | 105,838 | $ | 63,783 | $ | 89,858 | $ | 85,316 | $ | 91,082 | $ | 82,794 | ||||||||||||
Operating income | 19,622 | (b) | 10,232 | 10,919 | 17,739 | 23,440 | 19,907 | |||||||||||||||||
Assets | 46,519 | 35,999 | 35,862 | 43,688 | 41,988 | 33,512 | ||||||||||||||||||
Capital expenditures | 8,450 | 1,460 | 3,120 | 4,012 | 13,266 | 7,359 | ||||||||||||||||||
Depreciation and amortization | 3,452 | 3,707 | 4,303 | 4,046 | 2,887 | 2,436 | ||||||||||||||||||
AEROSTAR DIVISION | ||||||||||||||||||||||||
Sales | $ | 48,787 | $ | 27,244 | $ | 27,186 | $ | 17,290 | $ | 14,654 | $ | 18,009 | ||||||||||||
Operating income | 9,407 | 5,634 | 4,219 | 1,506 | 707 | 2,133 | ||||||||||||||||||
Assets | 18,140 | 10,462 | 8,744 | 9,941 | 8,161 | 6,837 | ||||||||||||||||||
Capital expenditures | 2,190 | 332 | 383 | 156 | 812 | 179 | ||||||||||||||||||
Depreciation and amortization | 757 | 398 | 444 | 499 | 375 | 359 | ||||||||||||||||||
ELECTRONIC SYSTEMS DIVISION | ||||||||||||||||||||||||
Sales | $ | 65,852 | $ | 63,525 | $ | 61,983 | $ | 67,987 | $ | 66,278 | $ | 56,219 | ||||||||||||
Operating income | 9,917 | 8,979 | 5,926 | 10,365 | 10,850 | 8,916 | ||||||||||||||||||
Assets | 23,385 | 21,216 | 26,847 | 25,865 | 25,175 | 20,191 | ||||||||||||||||||
Capital expenditures | 609 | 290 | 1,399 | 1,077 | 1,357 | 1,612 | ||||||||||||||||||
Depreciation and amortization | 823 | 939 | 1,159 | 1,237 | 1,086 | 871 | ||||||||||||||||||
INTERSEGMENT ELIMINATIONS | ||||||||||||||||||||||||
Sales | ||||||||||||||||||||||||
Engineered Films Division | $ | (307 | ) | $ | (210 | ) | $ | (210 | ) | $ | (533 | ) | $ | — | $ | — | ||||||||
Aerostar | (32 | ) | (1 | ) | (25 | ) | (16 | ) | — | — | ||||||||||||||
Electronic Systems Division | (5,520 | ) | (2,776 | ) | (1,977 | ) | (378 | ) | — | — | ||||||||||||||
Operating income | (94 | ) | 60 | (52 | ) | (100 | ) | — | — | |||||||||||||||
Assets | (186 | ) | (92 | ) | (152 | ) | (100 | ) | — | — | ||||||||||||||
CORPORATE & OTHER (a) | ||||||||||||||||||||||||
Operating loss (from admin expenses) | $ | (9,784 | ) | $ | (7,407 | ) | $ | (8,502 | ) | $ | (7,467 | ) | $ | (6,806 | ) | $ | (7,258 | ) | ||||||
Assets | 47,233 | 51,695 | 24,233 | 31,529 | 16,811 | 15,570 | ||||||||||||||||||
Capital expenditures | 954 | 279 | 425 | 382 | 510 | 270 | ||||||||||||||||||
Depreciation and amortization | 361 | 387 | 469 | 437 | 395 | 400 | ||||||||||||||||||
TOTAL COMPANY | ||||||||||||||||||||||||
Sales | $ | 314,708 | $ | 237,782 | $ | 279,913 | $ | 233,957 | $ | 217,529 | $ | 204,528 | ||||||||||||
Operating income | 60,203 | (b) | 43,220 | 46,394 | 41,145 | 38,302 | 37,284 | |||||||||||||||||
Assets | 187,760 | 170,309 | 144,415 | 147,861 | 119,764 | 106,157 | ||||||||||||||||||
Capital expenditures | 13,972 | 3,302 | 8,001 | 6,635 | 16,522 | 10,358 | ||||||||||||||||||
Depreciation and amortization | 7,631 | 7,108 | 7,758 | 7,344 | 5,885 | 5,151 | ||||||||||||||||||
(a) Assets are principally cash, investments and deferred taxes. | ||||||||||||||||||||||||
(b) Includes a $451 pre-tax gain on disposition of assets. |
• | Non-GAAP measure: We do not report total segment operating income outside the segment reporting footnote in our Forms 10-Q or any other interim filings. |
• | Consolidated Balance Sheet: The shareholders’ equity section on the face of our interim consolidated balance sheet in our Forms 10-Q includes separate captions and dollar amounts for the components of shareholders' equity. |
• | The Company is responsible for the adequacy and accuracy of the disclosure in the filing; |
• | Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and |
• | The Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities law of the United States. |