Note 10 - Activity of Business Segments

3 Months Ended

Mar. 31, 2024

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 construction weatherization products, such as housewrap, housewrap accessories including window and door flashing, and seam tape, synthetic roof underlayment and synthetic roof underlayment accessories, as well as other woven materials. 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 in the notes to our consolidated financial statements in Item 8 of the 2023 Form 10-K).

The following table presents consolidated net sales for each segment for the three months ended March 31, 2024 and 2023:

	For the Three Months Ended
	March 31,
	2024		2023
Building Supply	$	8,240,000	$	8,631,000
Disposable Protective Apparel		5,242,000		5,169,000
Consolidated net sales	$	13,482,000	$	13,800,000

The following table presents the reconciliation of consolidated segment income to consolidated net income for the three months ended March 31, 2024 and 2023:

	For the Three Months Ended
	March 31,
	2024		2023
Building Supply	$	963,000	$	956,000
Disposable Protective Apparel		1,032,000		784,000
Total segment income		1,995,000		1,740,000
Unallocated corporate overhead expenses		1,273,000		1,047,000
Provision for income taxes		146,000		141,000
Consolidated net income	$	576,000	$	552,000

The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of March 31, 2024 and December 31, 2023:

	March 31,		December 31,
	2024		2023
Building Supply	$	3,273,000	$	3,389,000
Disposable Protective Apparel		1,184,000		1,213,000
Total segment assets		4,457,000		4,602,000
Unallocated corporate assets		1,024,000		1,040,000
Total consolidated assets	$	5,481,000	$	5,642,000