Business Segments

3 Months Ended

Mar. 31, 2016

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 March 31, 2016, the Company had identifiable assets of approximately $35,296,000 ($34,374,000 – December 31, 2015) of which approximately $23,726,000 ($22,789,000 – December 31, 2015) was for ATG and approximately $11,570,000 ($11,585,000 – December 31, 2015) was for CPG.

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

	ATG						CPG						Consolidated
	Three Months Ended March 31,						Three Months Ended March 31						Three Months Ended March 31,
	2016			2015			2016			2015			2016			2015
Revenues from unaffiliated customers	$	7,110		$	6,353		$	1,837		$	1,818		$	8,947		$	8,171
Cost of goods sold, exclusive of depreciation and amortization		(5,169	)		(4,751	)		(1,547	)		(1,725	)		(6,716	)		(6,476	)
Selling, general and administrative		(1,132	)		(1,359	)		(504	)		(406	)		(1,636	)		(1,765	)
Depreciation and amortization		(140	)		(117	)		(67	)		(46	)		(207	)		(163	)
Interest expense		(11	)		(13	)		(8	)		(8	)		(19	)		(21	)
Arbitration award expense		-			4,500			-			-			-			4,500
Insurance proceeds - arbitration		-			(50	)		-			-			-			(50	)
Other income, net		-			2			-			-			-			2
Income (loss) before income tax provision (benefit)		658			4,565			(289	)		(367	)		369			4,198
Income tax provision (benefit)		198			1,552			(87	)		(125	)		111			1,427
Net income (loss)	$	460		$	3,013		$	(202	)	$	(242	)	$	258		$	2,771
Capital expenditures	$	139		$	188		$	39		$	93		$	178		$	281