Note 3. DISCONTINUED OPERATIONS

3 Months Ended

Mar. 29, 2013

Discontinued Operations, Policy [Policy Text Block]

Note 3. DISCONTINUED OPERATIONS

On January 24, 2013, the Company announced the closure of the Glit division of Continental Commercial Products, LLC. The Company ceased the majority of the operations of the division in the first quarter of 2013.  In addition, the Company entered into agreements to sell certain assets related to the Glit division in the first quarter of 2013. The Company will use the net proceeds from the sale of assets to settle the outstanding operating liabilities related to the division, pay off the outstanding borrowing related to the CapEx Sublimit (see Note 4), and reduce the outstanding balance under the PB Loan Agreement (as defined in Note 4 below).

On July 24, 2012, the Company announced the closure of the Container division of CCP. The Company sold certain assets related to the Container division for $0.6 million.

On September 20, 2012, the Company sold certain assets related to the Gemtex division to 2340258 Ontario, Inc. (the “Buyer”), a corporation incorporated under the laws of the Province of Ontario, for $1.0 million, $0.7 million of which will be payable in 48 monthly installments subject to certain prepayment requirements in connection with the generation of excess cash by the Buyer.  The Company used the net proceeds from the transaction to reduce its outstanding balance under the PB Loan Agreement (see Note 4).

The closure of the Glit and Container divisions and the sale of the Gemtex division met the criteria for classification as discontinued operations in accordance with GAAP; therefore, the Company has classified the results of the Glit, Container and Gemtex divisions as discontinued operations for all periods presented. The assets sold as part of the Glit, Container and Gemtex divisions have been recorded as assets held for sale and liabilities held for sale at March 29, 2013 and December 31, 2012. Selected financial data for discontinued operations is summarized as follows (amounts in thousands):

	For the Three Months Ended
	March 29, 2013
	Total		Container Division			Gemtex Division		Glit Division
Net sales	$	6,960	$	-		$	-	$	6,960
Operating income (loss) - net of tax	$	569	$	(248	)	$	-	$	817

	For the Three Months Ended
	March 30, 2012
	Total			Container Division			Gemtex Division			Glit Division
Net sales	$	9,305		$	2,822		$	1,503		$	4,980
Operating loss - net of tax	$	(903	)	$	(114	)	$	(207	)	$	(582	)

The Company recognized deferred revenue of $1.9 million and $0.1 million in the three months ended March 29, 2013 and the three months ended March 30, 2012, respectively. The recognition of deferred revenue is included in net sales for the Glit Division.

The components of assets and liabilities held for sale as of March 29, 2013 and December 31, 2012 are as follows (amounts in thousands):

	March 29,		December 31,
	2013		2012
Assets
Property and equipment, net	$	1,300	$	1,300
Intangibles		375		375
	$	1,675	$	1,675
Liabilities
Accrued Expenses	$	232	$	-