Business Segments

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segments

9. 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, 2015, the Company had identifiable assets of approximately $34,793,000 ($35,245,000 – December 31, 2014) of which approximately $22,877,000 ($23,092,000 – December 31, 2014) was for ATG and approximately $11,916,000 ($12,153,000 – December 31, 2014) was for CPG.

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

	ATG						CPG						Consolidated
	Nine Months September 30,						Nine Months September 30,						Nine Months September 30,
	2015			2014			2015			2014			2015			2014
Revenues from unaffiliated customers	$	21,067		$	18,002		$	6,055		$	5,014		$	27,122		$	23,016
Cost of goods sold, exclusive of depreciation and amortization		(14,917	)		(12,658	)		(5,378	)		(4,755	)		(20,295	)		(17,413	)
Selling, general and administrative		(3,367	)		(3,096	)		(1,196	)		(1,085	)		(4,563	)		(4,181	)
Interest expense		(30	)		(31	)		(23	)		-			(53	)		(31	)
Arbitration award expense		(50	)		(5,419	)		-			-			(50	)		(5,419	)
Depreciation and amortization		(364	)		(351	)		(161	)		(139	)		(525	)		(490	)
Insurance proceeds - arbitration		4,500			-			-			-			4,500			-
Other income, net		130			13			1			3			131			16
Income (loss) before income tax provision (benefit)		6,969			(3,540	)		(702	)		(962	)		6,267			(4,502	)
Income tax provision (benefit)		2,370			(1,183	)		(239	)		(320	)		2,131			(1,503	)
Net income (loss)	$	4,599		$	(2,357	)	$	(463	)	$	(642	)	$	4,136		$	(2,999	)
Capital expenditures	$	782		$	602		$	613		$	1,175		$	1,395		$	1,777

	ATG						CPG						Consolidated
	Three Months September 30,						Three Months September 30,						Three Months September 30,
	2015			2014			2015			2014			2015			2014
Revenues from unaffiliated customers	$	7,513		$	6,443		$	2,196		$	1,588		$	9,709		$	8,031
Cost of goods sold, exclusive of depreciation and amortization		(5,060	)		(4,471	)		(1,833	)		(1,654	)		(6,893	)		(6,125	)
Selling, general and administrative		(1,050	)		(914	)		(436	)		(348	)		(1,486	)		(1,262	)
Interest expense		(10	)		(12	)		(8	)		-			(18	)		(12	)
Arbitration award expense		-			(5,419	)		-			-			-			(5,419	)
Depreciation and amortization		(124	)		(106	)		(61	)		(44	)		(185	)		(150	)
Other income, net		1			3			-			1			1			4
Income (loss) before income tax provision (benefit)		1,270			(4,476	)		(142	)		(457	)		1,128			(4,933	)
Income tax provision (benefit)		432			(1,462	)		(48	)		(170	)		384			(1,632	)
Net income (loss)	$	838		$	(3,014	)	$	(94	)	$	(287	)	$	744		$	(3,301	)
Capital expenditures	$	407		$	149		$	341		$	751		$	748		$	900