Note 10 - Activity of Business Segments

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10 . 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 (including the Company’s proprietary N-

95

Particulate Respiratory face mask) 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 following table presents consolidated net sales for each segment for the

three

months ended

March 31, 2020

and

2019:

	For the Three Months Ended
	March 31,
	2020		2019
Building Supply	$	7,557,000	$	6,498,000
Disposable Protective Apparel		10,597,000		5,806,000
Consolidated net sales	$	18,154,000	$	12,304,000

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

three

months ended

March 31, 2020

and

2019:

	For the Three Months Ended
	March 31,
	2020			2019
Building Supply	$	1,410,000		$	908,000
Disposable Protective Apparel		4,453,000			1,423,000
Total segment income		5,863,000			2,331,000
Unallocated corporate overhead expenses		1,549,000			870,000
Provision (benefit) for income taxes		(1,028,000	)		243,000
Consolidated net income	$	5,342,000		$	1,218,000

The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of

March 31, 2020

and

December 31, 2019:

	March 31,		December 31,
	2020		2019
Building Supply	$	1,966,000	$	1,867,000
Disposable Protective Apparel		1,088,000		1,087,000
Total segment assets		3,054,000		2,954,000
Unallocated corporate assets		1,061,000		1,055,000
Total consolidated assets	$	4,115,000	$	4,009,000