Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting

Segment Reporting Disclosure [Text Block]

6—Segment Information—The Company operates, primarily in the United States, in two business segments as determined by its products.  The fastener segment, which comprises H & L Tool and the parent company’s fastener operations, includes rivets, cold-formed fasteners and parts and screw machine products.  The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines.  Information by segment is as follows:

		Assembly
	Fastener	Equipment	Other	Consolidated
Year Ended December 31,  2011:
Net Sales…………………………………………	$ 27,832,279	$  3,082,843	$ - -	$ 30,915,122
Depreciation……………………………………...	836,062	62,463	72,971	971,496
Segment profit……………………………………	2,997,799	624,234	- -	3,622,033
Selling and administrative expenses…………..			(2,005,960)	(2,005,960)
Other income……………………………………..			249,804	249,804
Income before income taxes……………………				1,865,877
Capital expenditures…………………………….	1,510,036	61,283	40,470	1,611,789
Segment assets:
Accounts receivable, net……………………...	4,143,186	255,240	- -	4,398,426
Inventories, net………………………………...	4,401,178	810,862	- -	5,212,040
Property, plant and equipment, net………….	6,153,394	1,097,314	644,817	7,895,525
Other assets……………………………………	- -	- -	7,352,273	7,352,273
				24,858,264
Year Ended December 31, 2010:
Net sales………………………………………….	$ 25,252,093	$  3,268,417	$ - -	$  28,520,510
Depreciation……………………………………...	873,687	59,443	67,224	1,000,354
Segment profit……………………………………	2,026,323	751,958	- -	2,778,281
Selling and administrative expenses…………..			(1,946,184)	(1,946,184)
Other income……………………………………..			61,928	61,928
Income before income taxes……………………				894,025
Capital expenditures…………………………….	459,084	157,548	70,476	687,108
Segment assets:
Accounts receivable, net……………………	3,759,004	258,077	- -	4,017,081
Inventories, net………………………………...	3,447,396	862,758	- -	4,310,154
Property, plant and equipment, net………….	5,700,325	1,098,494	680,059	7,478,878
Other assets……………………………………	- -	- -	7,852,732	7,852,732
				23,658,845

The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes.  Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets.  Long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities.  Other assets are not allocated to segments internally and to do so would be impracticable.  Sales to two customers in the fastener segment accounted for 17 and 16 percent and 16 and 20 percent of consolidated revenues during 2011 and 2010, respectively.  The accounts receivable balances for these customers accounted for 24 and 22 percent of consolidated accounts receivable for the larger customer and 20 and 25 percent for the other customer as of December 31, 2011 and 2010, respectively.