Note 9 - Activity of Business Segments

3 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

9. Activity of Business Segments

The Company operates in three business segments:

Disposable Protective Apparel: consisting of a complete line of disposable protective clothing, such as shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods for the pharmaceutical, cleanroom, industrial and medical markets.

Building Supply: consisting of a line of construction supply weatherization products.  The construction supply weatherization products consist of housewrap and synthetic roof underlayment.  The Company’s equity in income of unconsolidated affiliates (Harmony) is included in the total segment income for Building Supply in the table below.

Infection Control: consisting of a line of face masks and eye shields principally for the medical, dental and industrial markets.  It previously included a line of medical bed pads and pet beds that was sold during the first quarter of 2011.

Segment data excludes charges allocated to head office and corporate sales/marketing departments and income taxes.  The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

The following table shows consolidated net sales for each segment for the three and six months ended June 30, 2011 and 2010, respectively:

	For the Three Months Ended June 30,				For the Six Months Ended  June 30,
	2011		2010		2011		2010
Disposable Protective Apparel	$	2,871,000	$	4,845,000	$	5,778,000	$	9,929,000
Building Supply		6,356,000		4,863,000		11,103,000		9,585,000
Infection Control		1,051,000		1,513,000		2,342,000		3,336,000
Total consolidated net sales	$	10,278,000	$	11,221,000	$	19,223,000	$	22,850,000

The following table shows the reconciliation of total segment income to total consolidated net income for the three and six months ended June 30, 2011 and 2010, respectively:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
Disposable Protective Apparel	$	302,000		$	933,000		$	598,000		$	2,134,000
Building Supply		1,095,000			746,000			1,382,000			1,408,000
Infection Control		328,000			319,000			691,000			840,000
Total segment income		1,725,000			1,998,000			2,671,000			4,382,000
Unallocated corporate overhead  expenses		(1,240,000	)		(1,409,000	)		(2,364,000	)		(2,713,000	)
Provision for income taxes		(181,000	)		(217,000	)		(115,000	)		(611,000	)
Total consolidated net income	$	304,000		$	372,000		$	192,000		$	1,058,000

The following table shows the consolidated net property, equipment, goodwill and intangible assets by segment:

	June 30, 2011		December 31, 2010
Disposable Protective Apparel	$	728,000	$	816,000
Building Supply		2,173,000		2,277,000
Infection Control		1,038,000		1,173,000
Total segment assets		3,939,000		4,266,000
Unallocated corporate assets		92,000		115,000
Total consolidated assets	$	4,031,000	$	4,381,000

On February 8, 2011, the Company entered into an asset purchase agreement to sell its line of pet beds and on March 30, 2011, entered into a second asset purchase agreement, with the same principal purchaser, to sell its line of medical bed pads.  As consideration for the acquired assets, the Company received $235,000, which was comprised of $181,000 of inventory sold at cost, plus an additional $54,000 in compensation for non-inventory assets and goodwill.  The net gain on the sale of these assets was $41,000. Both of the transactions were executed in the three months ended March 31, 2011.