Business Segments

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Business Segments

10. 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 June 30, 2014, the Company had identifiable assets of approximately $30,873,000 ($30,003,000 – December 31, 2013) of which approximately $20,263,000 ($19,816,000 – December 31, 2013) was for ATG and approximately $10,610,000 ($10,187,000 – December 31, 2013) was for CPG.

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

	ATG						CPG						Consolidated
	Six Months Ended						Six Months Ended						Six Months Ended
	June 30,						June 30,						June 30,
	2014			2013			2014			2013			2014			2013
Revenues from unaffiliated customers	$	11,559		$	11,189		$	3,426		$	4,220		$	14,985		$	15,409
Cost of goods sold, exclusive of depreciation and amortization		(8,187	)		(8,107	)		(3,101	)		(3,463	)		(11,288	)		(11,570	)
Selling, general and administrative		(2,182	)		(1,798	)		(737	)		(836	)		(2,919	)		(2,634	)
Interest expense		(19	)		(21	)		-			-			(19	)		(21	)
Depreciation and amortization		(245	)		(219	)		(95	)		(89	)		(340	)		(308	)
Other income, net		10			-			2			1			12			1
Income (loss) before income tax provision (benefit)		936			1,044			(505	)		(167	)		431			877
Income tax (benefit) provision		280			241			(151	)		(45	)		129			196
Net income (loss)	$	656		$	803		$	(354	)	$	(122	)	$	302		$	681
Capital expenditures	$	453		$	813		$	424		$	176		$	877		$	989
	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30,						June 30,						June 30,
		2014			2013			2014			2013			2014			2013
Revenues from unaffiliated customers	$	6,254		$	5,806		$	1,741		$	2,261		$	7,995		$	8,067
Cost of goods sold, exclusive of depreciation and amortization		(4,347	)		(4,121	)		(1,503	)		(1,752	)		(5,850	)		(5,873	)
Selling, general and administrative		(1,042	)		(908	)		(301	)		(427	)		(1,343	)		(1,335	)
Interest expense		(10	)		(11	)		-			-			(10	)		(11	)
Depreciation and amortization		(123	)		(111	)		(48	)		(44	)		(171	)		(155	)
Other income, net		10			-			1			-			11			-
Income (loss) before income tax provision (benefit)		742			655			(110	)		38			632			693
Income tax provision (benefit)		226			181			(41	)		8			185			189
Net income (loss)	$	516		$	474		$	(69	)	$	30		$	447		$	504
Capital expenditures	$	81		$	429		$	378		$	82		$	459		$	511