SEGMENT REPORTING

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

SEGMENT REPORTING

In accordance with FASB ASC 280, “Segment Reporting” ("ASC 280"), the Company discloses financial and descriptive information about its reportable operating segments. Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company follows ASC 280, which establishes standards for reporting information about operating segments in annual and interim financial statements, and requires that companies report financial and descriptive information about their reportable segments based on a management approach. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers.

The Company currently divides its operations into three operating segments: Complex Machining which consists of AIM and NTW; Aerostructures and Electronics which consists of WMI, WPI, Miller Stuart, Eur-Pac, ECC and Compac; and Turbine Engine Components which consists of AMK and Sterling.

The accounting policies of each segment are the same as those described in the Summary of Significant Accounting Policies. The Company evaluates performance based on revenue, gross profit contribution and assets employed.

Effective January 1, 2015, all operating costs are allocated to the Company’s operating segments. Prior to January 1, 2015, certain operating costs that were not directly attributable to a particular segment were included in corporate and presented as an independent segment. Results for the three and nine months ended September 30, 2014 have been reclassified to conform to the current period presentation.

Financial information about the Company’s operating segments for the three and nine months ended September 30, 2015 and 2014 are as follows:

		Three Months Ended September 30,
		2015		2014
		(unaudited)		(unaudited)
COMPLEX MACHINING
	Net Sales	$	10,687,000	$	10,409,000
	Gross Profit		2,568,000		2,028,000
	Pre Tax Income (Loss)		549,000		174,000
	Assets		47,811,000		40,309,000
AEROSTRUCTURES AND ELECTRONICS
	Net Sales		7,408,000		4,745,000
	Gross Profit		1,449,000		1,529,000
	Pre Tax Income (Loss)		(126,000)		125,000
	Assets		22,683,000		18,362,000
TURBINE ENGINE COMPONENTS
	Net Sales		2,981,000		-
	Gross Profit		161,000		-
	Pre Tax Income (Loss)		(812,000)		-
	Assets		18,078,000		-
CORPORATE
	Net Sales		-		-
	Gross Profit		-		-
	Pre Tax Income (Loss)		-		-
	Assets		596,000		445,000
CONSOLIDATED
	Net Sales		21,076,000		15,154,000
	Gross Profit		4,178,000		3,557,000
	Pre Tax Income (Loss)		(389,000)		299,000
	Benefit from Income Taxes		726,000		81,000
	Net Income (Loss)		337,000		380,000
	Assets	$	89,168,000	$	59,116,000

		Nine Months Ended September 30,
		2015		2014
		(unaudited)		(unaudited)
COMPLEX MACHINING
	Net Sales	$	29,281,000	$	31,870,000
	Gross Profit		6,886,000		7,340,000
	Pre Tax Income (Loss)		733,000		1,473,000
	Assets		47,811,000		40,309,000
AEROSTRUCTURES AND ELECTRONICS
	Net Sales		19,468,000		12,097,000
	Gross Profit		5,008,000		3,615,000
	Pre Tax Income (Loss)		598,000		(358,000)
	Assets		22,683,000		18,362,000
TURBINE ENGINE COMPONENTS
	Net Sales		8,195,000		-
	Gross Profit		550,000		-
	Pre Tax Income (Loss)		(2,010,000)		-
	Assets		18,078,000		-
CORPORATE
	Net Sales		-		-
	Gross Profit		-		-
	Pre Tax Income (Loss)		-		-
	Assets		596,000		445,000
CONSOLIDATED
	Net Sales		56,944,000		43,967,000
	Gross Profit		12,444,000		10,955,000
	Pre Tax Income (Loss)		(679,000)		1,115,000
	Benefit from Income Taxes		519,000		222,000
	Net Income (Loss)		(160,000)		1,337,000
	Assets	$	89,168,000	$	59,116,000