Note 15 - Activity of Business Segments

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15.

     Activity of Business Segments

The Company operates through

two

business segments:

(

1

)

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. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.

(

2

)

Disposable Protective Apparel

: consisting of a complete line of disposable protective garments, including shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods, as well as face masks and face shields for the pharmaceutical, cleanroom, industrial, medical and dental 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.

Previously, face masks and face shields were included in a separate business segment called Infection Control. All of our disposable protective apparel, including face masks and face shields, are sold through similar distribution channels, are single-use and disposable, have the purpose of protecting people, products and environments, and have to be produced in FDA approved facilities, regardless of the market served. Based on these similarities, we determined that it would be best to consolidate the Infection Control segment into the Disposable Protective Apparel segment beginning with the

first

quarter of

2019.

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

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,
	2019		2018
Building Supply	$	26,576,000	$	26,035,000
Disposable Protective Apparel		20,089,000		20,589,000
Consolidated net sales	$	46,665,000	$	46,624,000

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

	Years Ended December 31,
	2019		2018
Building Supply	$	3,491,000	$	3,836,000
Disposable Protective Apparel		3,856,000		4,584,000
Total segment income		7,347,000		8,420,000
Unallocated corporate overhead expenses		3,667,000		4,006,000
Provision for income taxes		680,000		789,000
Consolidated net income	$	3,000,000	$	3,625,000

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

	Years Ended December 31,
	2019		2018
Net sales by geographic region
United States	$	45,748,000	$	45,595,000
International		917,000		1,029,000
Consolidated net sales	$	46,665,000	$	46,624,000

	As of December 31,
	2019		2018
Long-lived assets by geographic region
United States	$	2,450,000	$	2,528,000
International		1,493,000		716,000
Consolidated total long-lived assets	$	3,943,000	$	3,244,000

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

December 31, 2019

and

2018,

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,
	2019		2018
Building Supply	$	1,867,000	$	1,908,000
Disposable Protective Apparel		1,087,000		400,000
Total segment assets		2,954,000		2,308,000
Unallocated corporate assets		1,055,000		1,007,000
Total consolidated assets	$	4,009,000	$	3,315,000