Note 14 - Activity of Business Segments

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. Activity of Business Segments

The Company operates through

three

segments:

Building Supply:

consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and synthetic roof underlayment, as well as other woven material. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.

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.

A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.

Infection Control:

consisting of a line of face masks and eye shields.

The accounting policies of the

segments are the same as those described previously under Summary of Significant Accounting Policies (see Note

2

). Segment data excludes charges allocated to the principal executive office and other corporate unallocated expenses and income taxes. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

The following table

presents net sales for each segment:

	Years Ended December 31,
	2017		2016
Building Supply	$	24,641,000	$	27,343,000
Disposable Protective Apparel		14,250,000		14,219,000
Infection Control		5,134,000		4,614,000
Consolidated net sales	$	44,025,000	$	46,176,000

The following table presents the reconciliation of total segment income to total consolidated net income:

	Years Ended December 31,
	2017		2016
Building Supply	$	4,143,000	$	5,345,000
Disposable Protective Apparel		2,516,000		1,671,000
Infection Control		1,844,000		1,581,000
Total segment income		8,503,000		8,597,000
Unallocated corporate overhead expenses		4,833,000		4,422,000
Provision for income taxes		1,037,000		1,007,000
Consolidated net income	$	2,633,000	$	3,168,000

The following

table presents net sales and long-lived asset information by geographic area:

	Years Ended December 31,
	2017		2016
Net sales by geographic region
United States	$	43,169,000	$	45,068,000
International		856,000		1,108,000
Consolidated net sales	$	44,025,000	$	46,176,000

	As of December 31,
	2017		2016
Long-lived assets by geographic region
United States	$	2,593,000	$	2,338,000
International		565,000		308,000
Consolidated total long-lived assets	$	3,158,000	$	2,646,000

Net sales by

geographic region are based on the countries in which the customers are located. For the years ended

December 31, 2017

and

2016,

the Company did

not

generate sales from any single country, except the United States, that were significant to the Company’s consolidated net sales

.

The following table

presents the consolidated net property, equipment, goodwill and intangible assets by segment

:

	As of December 31,
	2017		2016
Disposable Protective Apparel	$	336,000	$	346,000
Building Supply		2,098,000		2,208,000
Infection Control		13,000		140,000
Total segment assets		2,447,000		2,694,000
Unallocated corporate assets		787,000		41,000
Total consolidated assets	$	3,234,000	$	2,735,000