6 - Segment Information

12 Months Ended

Dec. 31, 2021

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, 2021:
Net Sales………………………………………	$      29,831,388	$      4,143,170	$                  0	$        33,974,558
Depreciation……………………………………...	1,161,596	134,957	22,001	1,318,554
Segment operating profit………………………	2,384,486	997,048	0	3,381,534
Selling and administrative expenses…………..	0	0	(2,022,619)	(2,022,619)
Other income……………………………………..	0	0	55,557	55,557
Income before income taxes……………………				1,414,472
Capital expenditures…………………………….	493,564	0	177,334	670,898
Segment assets:
Accounts receivable, net……………………...	5,302,257	345,727	0	5,647,984
Inventories, net………………………………...	7,214,050	1,305,730	0	8,519,780
Property, plant and equipment, net………….	9,782,324	1,433,905	1,257,635	12,473,864
Other assets……………………………………	0	0	5,124,630	5,124,630
				31,766,258
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	148,4640
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

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, 2021:
Automotive	$  17,573,104	$        157,652	$   17,730,756
Non-automotive	12,258,284	3,985,518	16,243,802
Total net sales	$  29,831,388	$     4,143,170	$   33,974,558
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

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

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2021:
United States	$  24,280,114	$       4,053,102	$   28,333,216
Foreign	5,551,274	90,068	5,641,342
Total net sales	$  29,831,388	$     4,143,170	$   33,974,558
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

Sales to one customer in the fastener segment accounted for 13% of consolidated revenues during 2021 and 14% in 2020.  The accounts receivable balance for this customer accounted for 16% and 17% of consolidated accounts receivable as of December 31, 2021 and 2020, respectively.  Sales to a second customer in the fastener segment accounted for 11% of consolidated revenues during 2021 and 12% in 2020.  The accounts receivable balance for this customer accounted for 11% and 15% of consolidated accounts receivable as of December 31, 2021 and 2020, respectively.  Sales to a third customer were 12% of consolidated revenue in 2021 and 10% in 2020. The accounts receivable balance for this customer accounted for 18% and 15% of consolidated accounts receivable as of December 31, 2021 and 2020, respectively.