Note 19 - Operations and Industry Segments and Geographic Areas

12 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

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:

	2013			2012			2011
Net sales:
Medical	$	47,531,676		$	46,452,008		$	34,741,164
Custom products		26,301,873			29,694,415			17,837,208
Total	$	73,833,549		$	76,146,423		$	52,578,372
Operating profit:
Medical	$	5,446,274		$	5,349,910		$	4,666,538
Custom products		2,509,105			2,797,465			1,518,916
Total		7,955,379			8,147,375			6,185,454
Corporate expense		(660,940	)		(637,310	)		(710,281	)
Other (expense) income		(9,022	)		(44,092	)		18,893
Income before income taxes	$	7,285,417		$	7,465,973		$	5,494,066
Identifiable assets:
Medical	$	22,512,205		$	23,814,524		$	15,209,839
Custom products		5,769,403			9,030,782			7,097,568
Corporate		8,095,020			4,802,460			8,288,593
	$	36,376,628		$	37,647,766		$	30,596,000

	2013		2012		2011
Depreciation and amortization expenses:
Operating:
Medical	$	987,851	$	872,909	$	529,050
Custom products		296,754		336,114		280,381
Corporate		409		303		265
	$	1,285,014	$	1,209,326	$	809,696
Capital expenditures:
Medical	$	476,928	$	477,658	$	159,527
Custom products		80,935		206,669		31,682
	$	557,863	$	684,327	$	191,209

Geographic Areas:
Net sales:
United States	$	66,222,867	$	67,981,932	$	50,721,211
Canada		7,506,498		7,920,424		1,275,494
Other		104,184		244,067		581,667
Total	$	73,833,549	$	76,146,423	$	52,578,372
Property and Equipment, net:
United States	$	4,515,702	$	5,043,260	$	5,155,528
Canada		620,833		347,415		-
	$	5,136,535	$	5,390,675	$	5,155,528
Goodwill:
United States	$	1,924,131	$	1,924,131	$	1,924,131
Canada		2,563,415		2,686,484		-
	$	4,487,546	$	4,610,615	$	1,924,131
Intangibles:
United States	$	326,465	$	313,925	$	310,289
Canada		3,103,884		3,676,962		-
	$	3,430,349	$	3,990,887	$	310,289

Total sales by industry segment include sales to 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 28, 2013 and September 29, 2012, are the net assets of Span Canada’s operations located in a single facility in Canada, which total approximately $11,000,000 and $12,000,000, respectively.

We have several customers whose sales represent significant portions of sales in their respective business segments. One of our medical customers acquired another of our medical customers during fiscal 2013. If the customers had been under common ownership since 2011, sales to that customer would have been 21% of net medical sales in 2013, 17% in 2012 and 27% in 2011. In the custom products segment, sales to one customer accounted for 88% of net custom products sales in 2013 and 2012 and 83% in 2011.