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Business Segment Information
 6 Months Ended
Jun. 30, 2012
Business Segment Information [Abstract]  
Business Segment Information
15.   Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines and presented in three reportable segments. The results of the segments are reviewed through to the “Income from operations” line on the Statements of Income.

Engineered Equipment Technology and Parts Group (“EET&P”)

Our Engineered Equipment Technology and Parts Group, located in the United States, Canada, Brazil, China, and India, is comprised of CECO Filters, Busch International, CECO Abatement, Effox, Fisher-Klosterman, Flextor and A.V.C. We enable our customers to meet Best Available Control Technology requirements and compliance targets for fumes, volatile organic compounds, process, and industrial odors. Our services eliminate toxic emission fumes and volatile organic compounds from large-scale industrial processes. We have a presence in the chemical processing, ethanol, paint booth emissions, wastewater treatment, and wood products industries.

 

Contracting/Services Group (“C/S”)

Our Contracting/Services Group is comprised of the contracting/services operations of our Kirk & Blum divisions. We provide custom metal fabrication services at our Kirk & Blum Columbia, Tennessee and Louisville, Kentucky locations. These facilities are used to fabricate parts, subassemblies, and customized products for air pollution and non-air pollution applications from sheet, plate, and structurals.

Component Parts Group (“CP”)

We market component parts for industrial air systems to contractors, distributors and dealers throughout the United States.

The accounting policies of the segments are the same as those in the consolidated financial statements.

Summary of Business by Segment

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
(dollars in thousands)   2012     2011     2012     2011  

Net Sales

                                

Engineered Equipment Technology and Parts Group

                                

United States

   $ 19,506     $ 19,862     $ 38,427     $ 42,106  

Canada

     2,015       1,588       3,955       4,362  

China

     1,614       2,002       3,057       3,669  

Brazil

     —         867       121       987  

India

     —         34       —         125  
   

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal (a)

     23,135       24,353       45,560       51,249  

Contracting / Services Group (a)

     6,866       6,863       14,411       15,270  

Component Parts Group (a)

     5,832       4,554       11,280       9,303  

Corporate and other (a)

     (5 )      298       19       627  

Eliminations

     (1,236 )      (3,531 )      (3,652 )      (7,956 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 34,592     $ 32,537     $ 67,618     $ 68,493  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
(dollars in thousands)   2012     2011     2012     2011  

Income (loss) from Operations

                                

Engineered Equipment Technology and Parts Group (a)

   $ 3,859     $ 2,898     $ 7,164     $ 5,009  

Contracting / Services Group (a)

     563       547       1,684       1,378  

Component Parts Group (a)

     1,323       947       2,412       1,854  

Corporate and other (a) (b)

     (1,517 )      (1,435 )      (3,212 )      (2,942 ) 

Eliminations

     57       (112 )      (16 )      (39 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

   $   4,285     $   2,845     $   8,032     $   5,260  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) The amounts presented at the reportable business segment level include both external and intersegment net sales and operating income(loss), as applicable. See following tables in this Note 15 under “Intra-segment and Inter-segment Revenues.”
(b) Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses. Also included are the operations of our Engineering Group, which are not significant to the overall operations of the Company and were sold in November 2011.

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
(dollars in thousands)   2012     2011     2012     2011  

Property and Equipment Additions

                                

Engineered Equipment Technology and Parts Group

   $ 32     $ 12     $ 52     $ 66  

Contracting / Services Group

     14       —         30       9  

Component Parts Group

     11       32       38       32  

Corporate and other (c)

     2       52       12       149  
   

 

 

    

 

 

    

 

 

    

 

 

  

Property and equipment additions

   $ 59     $ 96     $ 132     $ 256  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(c) Includes Corporate and Engineering Group property and equipment additions. The Engineering Group was sold in November 2011.

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
(dollars in thousands)   2012     2011     2012     2011  

Depreciation and Amortization

                                

Engineered Equipment Technology and Parts Group

   $ 138     $ 215     $ 299     $ 444  

Contracting / Services Group

     54       57       110       114  

Component Parts Group

     47       42       96       83  

Corporate and other (d)

     53       55       105       105  
   

 

 

    

 

 

    

 

 

    

 

 

  

Depreciation and Amortization

   $ 292     $ 369     $ 610     $ 746  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(d) Includes Corporate and Engineering Group depreciation and amortization. The Engineering Group was sold in November 2011.

 

                 
(dollars in thousands)   June 30,
2012		     December 31,
2011		  

Identifiable Assets

                

Engineered Equipment Technology and Parts Group

   $ 43,501     $ 51,480  

Contracting / Services Group

     24,001       18,588  

Component Parts Group

     6,722       5,577  

Corporate and other (e)

     9,127       9,705  

Eliminations (f)

     (5,405 )      (6,005 ) 
   

 

 

    

 

 

  

Identifiable Assets (g)

   $ 77,946     $ 79,345  
   

 

 

    

 

 

  

 

(e) Includes Corporate and Engineering Group identifiable assets. The Engineering Group was sold in November 2011. Corporate assets primarily consists of cash, income tax related assets, and intercompany note receivable.
(f) Includes eliminations for intercompany trade accounts receivable, intercompany job revenue, and intercompany note receivable.
(g) The Company has revised its business segment reporting primarily to exclude nontrade accounts receivable in order to better reflect the manner in which such assets are reviewed by management.

 

                 
(dollars in thousands)   June 30,
2012		     December 31,
2011		  

Goodwill

                

Engineered Equipment Technology and Parts Group

   $ 14,668     $ 14,661  

Contracting / Services Group

     —         —    

Component Parts Group

     —         —    
   

 

 

    

 

 

  
    $ 14,668     $ 14,661  
   

 

 

    

 

 

  

Intra-segment and Inter-segment Revenues

The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

 

                                                         
    Three months ended June 30, 2012  

(dollars in thousands)

   Total
sales		     Less intra-
segment
sales		     Less inter-segment sales     Net sales to
outside
customers		  
      EET&P     C/S     CP     Corp. (a)    

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 19,506     $ (106 )    $ —       $ (45 )    $ —       $ —       $ 19,355  

Canada

     2,015       73       —         —         —         —         2,088  

China

     1,614       (832 )      —         —         —         —         782  

Brazil

     —         —         —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     23,135       (865 )      —         (45 )      —         —         22,225  

Contracting / Services Group

     6,866       (14 )      (106 )      —         —         —         6,746  

Component Parts Group

     5,832       (69 )      (13 )      (216 )      —         —         5,534  

Corporate and other (a)

     (5 )      —         —         —         —         92       87  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 35,828     $ (948 )    $ (119 )   $ (261 )   $ —       $ 92     $ 34,592  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes adjustment for revenue on intercompany jobs.

 

                                                         
    Three months ended June 30, 2011  

(dollars in thousands)

   Total
sales		     Less  intra-
segment
sales		     Less inter-segment sales     Net sales  to
outside
customers		  
      EET&P     C/S     CP     Corp. (a)    

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 19,862     $ (391 )    $ —       $ (1,284 )    $ —       $ —       $ 18,187  

Canada

     1,588       (66 )      —         —         —         —         1,522  

China

     2,002       (511 )      —         —         —         —         1,491  

Brazil

     867       —         —         —         —         —         867  

India

     34       —         —         —         —         —         34  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     24,353       (968 )      —         (1,284 )      —         —         22,101  

Contracting / Services Group

     6,863       (14 )      (741 )      —         —         (26 )      6,082  

Component Parts Group

     4,554       (82 )      (68 )      (232 )      —         —         4,172  

Corporate and other (a)

     298       —         —         (34 )      —         (82 )      182  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 36,068     $ (1,064 )    $ (809 )   $ (1,550 )   $ —       $ (108 )   $ 32,537  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs. The Engineering Group was sold in November 2011.

 

                                                         
    Six months ended June 30, 2012  

(dollars in thousands)

   Total
sales		     Less intra-
segment
sales		     Less inter-segment sales     Net sales to
outside
Customers		  
      EET&P     C/S     CP     Corp. (a)    

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 38,427     $ (353 )    $ —       $ (610 )    $ —       $ —       $ 37,464  

Canada

     3,955       73       —         —         —         —         4,028  

China

     3,057       (1,555 )      —         —         —         —         1,502  

Brazil

     121       0       —         —         —         —         121  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     45,560       (1,835 )      —         (610 )      —         —         43,115  

Contracting / Services Group

     14,411       (48 )      (535 )      —         —         —         13,828  

Component Parts Group

     11,280       (147 )      (18 )      (499 )      —         —         10,616  

Corporate and other (a)

     19       —         —         (10 )      —         50       59  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 71,270     $ (2,030 )    $ (553 )   $ (1,119 )   $ —       $ 50     $ 67,618  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes adjustment for revenue on intercompany jobs.

 

                                                         
    Six months ended June 30, 2011  

(dollars in thousands)

   Total
sales		     Less  intra-
segment
Sales		     Less inter-segment sales     Net sales  to
outside
Customers		  
      EET&P     C/S     CP     Corp. (a)    

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 42,106     $ (2,738 )    $ —       $ (2,475 )    $ —       $ —       $ 36,893  

Canada

     4,362       (88 )      —         —         —         —         4,274  

China

     3,669       (526 )      —         —         —         —         3,143  

Brazil

     987       —         —         —         —         —         987  

India

     125       —         —         —         —         —         125  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     51,249       (3,352 )      —         (2,475 )      —         —         45,422  

Contracting / Services Group

     15,270       (68 )      (1,225 )      —         —         (45 )      13,932  

Component Parts Group

     9,303       (265 )      (77 )      (432 )      —         —         8,529  

Corporate and other (a)

     627       —         —         (39 )      —         22       610  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 76,449     $ (3,685 )    $ (1,302 )   $ (2,946 )   $ —       $ (23 )   $ 68,493  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs. The Engineering Group was sold in November 2011.