6 - Segment Information

12 Months Ended

Dec. 31, 2020

Notes

6 - Segment Information

6-Segment Information- The Company operates 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, 2020:
Net Sales………………………………………	$      24,607,863	$      2,982,790	$                  0	$        27,590,653
Depreciation……………………………………...	1,182,555	131,826	32,924	1,347,305
Segment operating profit………………………	1,531,933	513,250	0	2,045,183
Selling and administrative expenses…………..	0	0	(2,128,197)	(2,128,197)
Other income……………………………………..	0	0	148,464	148,464
Income before income taxes……………………				65,450
Capital expenditures…………………………….	614,835	13,924	195,377	824,136
Segment assets:
Accounts receivable, net……………………...	4,906,239	257,211	0	5,163,450
Inventories, net………………………………...	4,024,138	1,129,156	0	5,153,294
Property, plant and equipment, net………….	10,479,720	1,568,862	1,102,302	13,150,884
Other assets……………………………………	0	0	7,770,443	7,770,443
				31,238,071
Year Ended December 31, 2019:
Net Sales………………………………………	$      28,989,667	$      3,883,335	$                  0	$        32,873,002
Depreciation……………………………………...	1,217,174	126,430	38,631	1,382,235
Segment operating profit………………………	1,762,835	1,083,548	0	2,846,383
Selling and administrative expenses…………..	0	0	(2,354,799)	(2,354,799)
Other income……………………………………..	0	0	191,730	191,730
Income before income taxes……………………				683,314
Capital expenditures…………………………….	1,522,541	233,697	46,676	1,802,914
Segment assets:
Accounts receivable, net……………………...	4,313,185	296,129	0	4,609,314
Inventories, net………………………………...	3,985,883	965,294	0	4,951,177
Property, plant and equipment, net………….	11,047,439	1,686,764	939,850	13,674,053
Other assets……………………………………	0	0	8,488,832	8,488,832
				31,723,376

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.

The following table presents revenue by segment, further disaggregated by end-market:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2020:
Automotive	$  15,612,249	$        136,899	$   15,749,148
Non-automotive	8,995,614	2,845,891	11,841,505
Total net sales	$  24,607,863	$     2,982,790	$   27,590,653
Year Ended December 31, 2019:
Automotive	$  18,518,987	$        193,517	$   18,712,504
Non-automotive	10,470,680	3,689,818	14,160,498
Total net sales	$  28,989,667	$     3,883,335	$   32,873,002

The following table presents revenue by segment, further disaggregated by location:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2020:
United States	$  20,743,296	$       2,804,476	$   23,547,772
Foreign	3,864,567	178,314	4,042,881
Total net sales	$  24,607,863	$     2,982,790	$   27,590,653
Year Ended December 31, 2019:
United States	$  24,626,317	$       3,599,855	$   28,226,172
Foreign	4,363,350	283,480	4,646,830
Total net sales	$  28,989,667	$     3,883,335	$   32,873,002

Sales to one customer in the fastener segment accounted for 14 percent of consolidated revenues during 2020 and 16 percent in 2019.  The accounts receivable balance for this customer accounted for 17 and 18 percent of consolidated accounts receivable as of December 31, 2020 and 2019, respectively.  Sales to a second customer in the fastener segment accounted for 12 percent of consolidated revenues during 2020 and 10 percent in 2019.  The accounts receivable balance for this customer accounted for 15 and 13 percent of consolidated accounts receivable as of December 31, 2020 and 2019, respectively.  Sales to a third customer were 10 percent of consolidated revenue in both 2020 and 2019. The accounts receivable balance for this customer accounted for 15 and 12 percent of consolidated accounts receivable as of December 31, 2020 and 2019, respectively.