Note 13 - Activity of Business Segments

12 Months Ended

Dec. 31, 2022

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.

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 3). 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,
	2022		2021
Building Supply	$	36,937,000	$	36,889,000
Disposable Protective Apparel		25,044,000		31,748,000
Consolidated net sales	$	61,981,000	$	68,637,000

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

	Years Ended December 31,
	2022		2021
Building Supply	$	5,359,000	$	7,350,000
Disposable Protective Apparel		4,010,000		6,706,000
Total segment income		9,369,000		14,056,000
Unallocated corporate overhead expenses		4,974,000		5,556,000
Provision for income taxes		1,113,000		1,744,000
Consolidated net income	$	3,282,000	$	6,756,000

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

	Years Ended December 31,
	2022		2021
Net sales by geographic region
United States	$	60,489,000	$	65,844,000
International		1,492,000		2,793,000
Consolidated net sales	$	61,981,000	$	68,637,000

	As of December 31,
	2022		2021
Long-lived assets by geographic region
United States	$	4,380,000	$	4,623,000
International		1,362,000		1,441,000
Consolidated total long-lived assets	$	5,742,000	$	6,064,000

Net sales by geographic region are based on the countries in which our customers are located. For the year ended December 31, 2022, 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,
	2022		2021
Building Supply	$	3,395,000	$	3,600,000
Disposable Protective Apparel		1,327,000		1,419,000
Total segment assets		4,722,000		5,019,000
Unallocated corporate assets		1,076,000		1,103,000
Total consolidated assets	$	5,798,000	$	6,122,000