Business Segments

9 Months Ended

Sep. 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 September 30, 2016, the Company had identifiable assets of approximately $36,130,000 ($34,374,000 – December 31, 2015) of which approximately $24,211,000 ($22,789,000 – December 31, 2015) was for ATG and approximately $11,919,000 ($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
	Nine Months September 30,						Nine Months September 30,						Nine Months September 30,
	2016			2015			2016			2015			2016			2015
Revenues from unaffiliated customers	$	23,023		$	21,067		$	5,685		$	6,055		$	28,708		$	27,122
Cost of goods sold, exclusive of depreciation and amortization		(16,060	)		(14,917	)		(4,828	)		(5,378	)		(20,888	)		(20,295	)
Selling, general and administrative		(3,477	)		(3,367	)		(1,338	)		(1,196	)		(4,815	)		(4,563	)
Depreciation and amortization		(412	)		(364	)		(198	)		(161	)		(610	)		(525	)
Interest expense		(32	)		(30	)		(22	)		(23	)		(54	)		(53	)
Arbitration award expense		-			(50	)		-			-			-			(50	)
Insurance proceeds - arbitration		-			4,500			-			-			-			4,500
Other income, net		19			130			-			1			19			131
Income (loss) before income tax provision (benefit)		3,061			6,969			(701	)		(702	)		2,360			6,267
Income tax provision (benefit)		949			2,370			(217	)		(239	)		732			2,131
Net income (loss)	$	2,112		$	4,599		$	(484	)	$	(463	)	$	1,628		$	4,136
Capital expenditures	$	613		$	782		$	173		$	603		$	786		$	1,385

	ATG						CPG						Consolidated
	Three Months September 30,						Three Months September 30,						Three Months September 30,
	2016			2015			2016			2015			2016			2015
Revenues from unaffiliated customers	$	7,658		$	7,513		$	1,807		$	2,196		$	9,465		$	9,709
Cost of goods sold, exclusive of depreciation and amortization		(5,418	)		(5,060	)		(1,625	)		(1,833	)		(7,043	)		(6,893	)
Selling, general and administrative		(1,240	)		(1,050	)		(418	)		(436	)		(1,658	)		(1,486	)
Depreciation and amortization		(137	)		(124	)		(61	)		(61	)		(198	)		(185	)
Interest expense		(11	)		(10	)		(7	)		(8	)		(18	)		(18	)
Other income, net		9			1			-			-			9			1
Income (loss) before income tax provision (benefit)		861			1,270			(304	)		(142	)		557			1,128
Income tax provision (benefit)		289			432			(98	)		(48	)		191			384
Net income (loss)	$	572		$	838		$	(206	)	$	(94	)	$	366		$	744
Capital expenditures	$	70		$	407		$	15		$	341		$	85		$	748