Business Segments

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Business Segments

12. Business Segments

The Company operates in two business segments, Advanced Technology Group (“ATG”) and Consumer Products Group (“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 September 30, 2013, the Company had identifiable assets of approximately $30,545,000 ($29,303,000 – December 31, 2012) of which approximately $19,986,000 ($19,211,000 – December 31, 2012) was for ATG and approximately $10,559,000 ($10,092,000 – December 31, 2012) was for CPG.

Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted):

	ATG						CPG						Consolidated
	Nine Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,
	2013			2012			2013			2012			2013			2012
Revenues from unaffiliated customers	$	16,709		$	16,671		$	6,427		$	6,631		$	23,136		$	23,302
Cost of goods sold, exclusive of depreciation and amortization		(11,978	)		(11,445	)		(5,186	)		(5,636	)		(17,164	)		(17,081	)
Selling, general and administrative		(2,886	)		(2,411	)		(1,254	)		(1,342	)		(4,140	)		(3,753	)
Interest expense		(31	)		(34	)		-			-			(31	)		(34	)
Depreciation and amortization		(328	)		(323	)		(132	)		(114	)		(460	)		(437	)
Other income, net		1			5			44			7			45			12
Income (loss) from continuing operations before income tax provision		1,487			2,463			(101	)		(454	)		1,386			2,009
Income tax provision (benefit)		375			812			(28	)		(149	)		347			663
Income (loss) from continuing operations		1,112			1,651			(73	)		(305	)		1,039			1,346
Discontinued operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			-			(591	)		-			(591	)
Loss on disposal of QCC and AMP, net of income tax benefit		-			-			-			(530	)		-			(530	)
Loss from discontinued operations		-			-			-			(1,121	)		-			(1,121	)
Net income (loss)	$	1,112		$	1,651		$	(73	)	$	(1,426	)	$	1,039		$	225
Capital expenditures	$	920		$	327		$	204		$	67		$	1,124		$	394

	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30,						September 30,						September 30,
	2013			2012			2013			2012			2013			2012
Revenues from unaffiliated customers	$	5,520		$	5,783		$	2,207		$	1,733		$	7,727		$	7,516
Cost of goods sold, exclusive of depreciation and amortization		(3,871	)		(4,080	)		(1,723	)		(1,456	)		(5,594	)		(5,536	)
Selling, general and administrative		(1,088	)		(842	)		(418	)		(433	)		(1,506	)		(1,275	)
Interest expense		(10	)		(11	)		-			-			(10	)		(11	)
Depreciation and amortization		(109	)		(104	)		(43	)		(37	)		(152	)		(141	)
Other income, net		1			-			43			2			44			2
Income (loss) from continuing operations before income tax provision		443			746			66			(191	)		509			555
Income tax provision (benefit)		134			335			17			(86	)		151			249
Income (loss) from continuing operations		309			411			49			(105	)		358			306
Discontinued operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			-			(188	)		-			(188	)
Loss on disposal of QCC and AMP, net of income tax benefit		-			-			-			(262	)		-			(262	)
Loss from discontinued operations		-			-			-			(450	)		-			(450	)
Net income (loss)	$	309		$	411		$	49		$	(555	)	$	358		$	(144	)
Capital expenditures	$	107		$	234		$	28		$	24		$	135		$	258