Note 19 - Operations and Industry Segments and Geographic Areas

12 Months Ended

Sep. 29, 2012

Segment Reporting Disclosure [Text Block]

19.  OPERATIONS AND INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

For management and reporting purposes, we divide our business into two segments:  medical and custom products.  This industry segment information corresponds to the markets in the United States and Canada for which we manufacture and distribute our various products.  The following table summarizes certain information on industry segments:

	2012			2011			2010
Net sales:
United States	$	67,981,932		$	50,721,211		$	50,632,653
Canada		7,920,424			1,275,494			1,535,861
Other		244,067			581,667			187,148
Total	$	76,146,423		$	52,578,372		$	52,355,662
Net sales:
Medical	$	46,452,008		$	34,741,164		$	35,572,689
Custom products		29,694,415			17,837,208			16,782,973
Total	$	76,146,423		$	52,578,372		$	52,355,662
Operating profit:
Medical	$	5,349,910		$	4,666,538		$	5,742,600
Custom products		2,797,465			1,518,916			1,628,106
Total		8,147,375			6,185,454			7,370,706
Corporate expense		(637,310	)		(710,281	)		(636,685	)
Other (expense) income		(44,092	)		18,893			52,194
Income from continuing operations before income taxes	$	7,465,973		$	5,494,066		$	6,786,215
Identifiable assets:
Medical	$	23,814,524		$	15,209,839		$	14,439,795
Custom products		9,030,782			7,097,568			6,016,135
Corporate		4,802,460			8,288,593			6,756,258
	$	37,647,766		$	30,596,000		$	27,212,188

Depreciation and amortization expenses:
Operating:
Medical	$	872,909	$	529,050	$	533,184
Custom products		336,114		280,381		279,636
Corporate		303		265		471
	$	1,209,326	$	809,696	$	813,291
Capital expenditures:
Medical	$	477,658	$	159,527	$	252,985
Custom products		206,669		31,682		17,591
	$	684,327	$	191,209	$	270,576

Total sales by industry segment include sales from unaffiliated customers as reported in our statements of income.  In calculating operating profit, non-allocable general corporate expenses, interest expense, other income and income taxes are not included, but certain corporate operating expenses incurred for the benefit of all segments are included on an allocated basis.

Identifiable assets are those assets that are used in the operations of each segment on an allocated basis.  Amounts shown for corporate assets consist primarily of cash, marketable securities and cash surrender value of life insurance.

Included in the consolidated balance sheet at September 29, 2012, are the net assets of Span Canada’s operations located in a single facility in Canada which total approximately $12,000,000.

We have several customers whose sales represent significant portions of sales in their respective business segments.  In the medical segment, sales to the top two distributors represented 21% of net medical sales in 2012, 28% in 2011 and 28% in 2010.  In the custom products segment, sales to one customer accounted for 88% of net custom products sales in 2012, 83% in 2011, and 82% in 2010.