Business Segments

6 Months Ended

Jun. 30, 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 June 30, 2016, the Company had identifiable assets of approximately $36,426,000 ($34,374,000 – December 31, 2015) of which approximately $24,319,000 ($22,789,000 – December 31, 2015) was for ATG and approximately $12,107,000 ($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
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015			2016			2015
Revenues from unaffiliated customers	$	15,365		$	13,554		$	3,878		$	3,859		$	19,243		$	17,413
Cost of goods sold, exclusive of depreciation and amortization		(10,643	)		(9,857	)		(3,202	)		(3,545	)		(13,845	)		(13,402	)
Selling, general and administrative		(2,236	)		(2,317	)		(921	)		(760	)		(3,157	)		(3,077	)
Depreciation and amortization		(276	)		(241	)		(136	)		(99	)		(412	)		(340	)
Interest expense		(21	)		(20	)		(15	)		(15	)		(36	)		(35	)
Arbitration award expense		-			(50	)		-			-			-			(50	)
Insurance proceeds - arbitration		-			4,500			-			-			-			4,500
Other income, net		10			129			-			1			10			130
Income (loss) before income tax provision (benefit)		2,199			5,698			(396	)		(559	)		1,803			5,139
Income tax provision (benefit)		660			1,937			(119	)		(190	)		541			1,747
Net income (loss)	$	1,539		$	3,761		$	(277	)	$	(369	)	$	1,262		$	3,392
Capital expenditures	$	543		$	375		$	158		$	272		$	701		$	647

	ATG						CPG						Consolidated
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
	2016			2015			2016			2015			2016			2015
Revenues from unaffiliated customers	$	8,256		$	7,201		$	2,040		$	2,041		$	10,296		$	9,242
Cost of goods sold, exclusive of depreciation and amortization		(5,474	)		(5,106	)		(1,655	)		(1,820	)		(7,129	)		(6,926	)
Selling, general and administrative		(1,105	)		(957	)		(416	)		(355	)		(1,521	)		(1,312	)
Depreciation and amortization		(136	)		(124	)		(69	)		(53	)		(205	)		(177	)
Interest expense		(10	)		(7	)		(7	)		(7	)		(17	)		(14	)
Other income, net		10			127			-			1			10			128
Income (loss) before income tax provision (benefit)		1,541			1,134			(107	)		(193	)		1,434			941
Income tax provision (benefit)		462			385			(32	)		(65	)		430			320
Net income (loss)	$	1,079		$	749		$	(75	)	$	(128	)	$	1,004		$	621
Capital expenditures	$	404		$	187		$	119		$	179		$	523		$	366