Note 9 - Activity of Business Segments

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9. 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.

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 consolidated net sales for each segment for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Building Supply	$	9,604,000	$	10,072,000	$	30,657,000	$	28,210,000
Disposable Protective Apparel		5,118,000		4,403,000		19,099,000		27,232,000
Consolidated net sales	$	14,722,000	$	14,475,000	$	49,756,000	$	55,442,000

The following table presents the reconciliation of consolidated segment income to consolidated net income for the three and nine months ended September 30, 2022 and 2021:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Building Supply	$	1,386,000	$	1,901,000	$	4,968,000	$	5,629,000
Disposable Protective Apparel		489,000		234,000		2,412,000		6,351,000
Total segment income		1,875,000		2,135,000		7,380,000		11,980,000
Unallocated corporate overhead expenses		1,213,000		1,173,000		3,854,000		4,274,000
Provision for income taxes		159,000		196,000		808,000		1,550,000
Consolidated net income	$	503,000	$	766,000	$	2,718,000	$	6,156,000

The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of September 30, 2022 and December 31, 2021:

	September 30,		December 31,
	2022		2021
Building Supply	$	3,434,000	$	3,600,000
Disposable Protective Apparel		1,350,000		1,419,000
Total segment assets		4,784,000		5,019,000
Unallocated corporate assets		1,046,000		1,103,000
Total consolidated assets	$	5,830,000	$	6,122,000