6-Segment Information

12 Months Ended

Dec. 31, 2013

Notes

6-Segment Information

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:

	Fastener	Assembly Equipment	Other	Consolidated
Year Ended December 31,  2013:
Net Sales………………………………………	$ 33,616,593	$ 3,501,237	$ - -	$ 37,117,830
Depreciation……………………………………...	957,078	59,195	76,789	1,093,062
Segment profit……………………………………	4,659,006	943,887	- -	5,602,893
Selling and administrative expenses…………..			(2,137,699)	(2,137,699)
Other income……………………………………..			160,835	160,835
Income before income taxes……………………				3,626,029
Capital expenditures…………………………….	3,092,842	90,010	292,006	3,474,858
Segment assets:
Accounts receivable, net……………………...	5,277,378	233,392	- -	5,510,770
Inventories, net………………………………...	4,076,781	804,007	- -	4,880,788
Property, plant and equipment, net………….	8,727,541	1,137,133	544,446	10,409,120
Other assets……………………………………	- -	- -	7,356,668	7,356,668
				28,157,346
Year Ended December 31, 2012:
Net sales………………………………………….	$ 30,999,163	$  3,224,609	$ - -	$ 34,223,772
Depreciation……………………………………...	859,045	59,199	75,707	993,951
Segment profit……………………………………	3,775,045	773,902	- -	4,548,947
Selling and administrative expenses…………..			(2,084,305)	(2,084,305)
Other income……………………………………..			118,099	118,099
Income before income taxes……………………				2,582,741
Capital expenditures…………………………….	1,018,734	68,203	100,809	1,187,746
Segment assets:
Accounts receivable, net……………………	4,275,890	302,042	- -	4,577,932
Inventories, net………………………………...	4,175,702	760,670	- -	4,936,372
Property, plant and equipment, net………….	6,363,280	1,106,318	608,268	8,077,866
Other assets……………………………………	- -	- -	8,319,333	8,319,333
				25,911,503

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.  Certain 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 18 and 18 percent and 14 and 15 percent of consolidated revenues during 2013 and 2012, respectively.  The accounts receivable balances for these customers accounted for 20 and 22 percent of consolidated accounts receivable for the larger customer and 16 and 16 percent for the other customer as of December 31, 2013 and 2012, respectively.