Business Segments

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Business Segments

10. Business Segments

The Company operates in two business segments, ATG and CPG. The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and are managed separately. Operations in ATG primarily involve the design, manufacture, and marketing of servo-control components (i.e., torque motors, control valves, actuators, etc.) for government, commercial and industrial applications. CPG’s operations involve the design, manufacture and marketing of a variety of cutlery products for use by consumers and government agencies. The Company derives its primary sales revenue from domestic customers, although a portion of finished products are for foreign end use.

As of June 30, 2019, the Company had identifiable assets of approximately $43,948,000 ($41,685,000 – December 31, 2018) of which approximately $33,521,000 ($31,639,000 – December 31, 2018) was for ATG and approximately $10,427,000 ($10,046,000 – December 31, 2018) was for CPG.

Information regarding the Company’s operations in these segments is summarized as follows:

	($000's omitted except per share data)
	ATG						CPG						Consolidated
	Six Months Ended						Six Months Ended						Six Months Ended
	June 30,						June 30,						June 30,
	2019			2018			2019			2018			2019			2018
Revenues from unaffiliated customers	$	22,746		$	19,389		$	3,324		$	3,116		$	26,070		$	22,505
Cost of goods sold, inclusive of depreciation		(17,022	)		(14,635	)		(3,706	)		(2,896	)		(20,728	)		(17,531	)
Gross margin		5,724			4,754			(382	)		220			5,342			4,974
Gross margin %		25.2	%		24.5	%		-11.5	%		7.1	%		20.5	%		22.1	%
Selling, general and administrative		(3,019	)		(2,655	)		(1,283	)		(986	)		(4,302	)		(3,641	)
Interest		(41	)		(35	)		(16	)		(17	)		(57	)		(52	)
Total costs and expenses		(20,082	)		(17,325	)		(5,005	)		(3,899	)		(25,087	)		(21,224	)
Income before income tax provision		2,664			2,064			(1,681	)		(783	)		983			1,281
Income tax provision (benefits)		463			392			(292	)		(149	)		171			243
Net income/(loss)	$	2,201		$	1,672		$	(1,389	)	$	(634	)	$	812		$	1,038
Capital expenditures	$	1,161		$	845		$	192		$	139		$	1,353		$	984

	($000's omitted except per share data)
	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30,						June 30,						June 30,
	2019			2018			2019			2018			2019			2018
Revenues from unaffiliated customers	$	12,151		$	10,274		$	1,916		$	1,672		$	14,067		$	11,946
Cost of goods sold, inclusive of depreciation		(8,555	)		(7,552	)		(2,243	)		(1,470	)		(10,798	)		(9,022	)
Gross margin		3,596			2,722			(327	)		202			3,269			2,924
Gross margin %		29.6	%		26.5	%		-17.1	%		12.1	%		23.2	%		24.5	%
Selling, general and administrative		(1,739	)		(1,426	)		(636	)		(587	)		(2,375	)		(2,013	)
Interest		(22	)		(18	)		(8	)		(9	)		(30	)		(27	)
Total costs and expenses		(10,316	)		(8,996	)		(2,887	)		(2,066	)		(13,203	)		(11,062	)
Income before income tax provision		1,835			1,278			(971	)		(394	)		864			884
Income tax provision (benefits)		318			262			(168	)		(85	)		150			177
Net income/(loss)	$	1,517		$	1,016		$	(803	)	$	(309	)	$	714		$	707
Capital expenditures	$	562		$	440		$	149		$	33		$	711		$	473