Note 9 - Operations and Industry Segments

9 Months Ended

Jul. 02, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9

. OPERATIONS AND INDUSTRY SEGMENTS

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:

	Three Months Ended						Nine Months Ended
	July 2, 2016			June 27, 2015			July 2, 2016			June 27, 2015
Net sales:
Medical	$	11,529,818		$	11,663,716		$	33,894,632		$	35,602,295
Custom products		3,817,559			4,149,758			17,757,556			10,965,471
	$	15,347,377		$	15,813,474		$	51,652,188		$	46,567,766
Operating profit (loss):
Medical	$	1,404,014		$	1,404,066		$	4,135,116		$	4,404,386
Custom products		284,745			89,762			643,965			(255,893	)
		1,688,759			1,493,828			4,779,081			4,148,493
Corporate expense		(202,579	)		(175,626	)		(576,256	)		(561,430	)
Other income (expense)		(66,961	)		64,333			(12,105	)		302,235
Income before income taxes	$	1,419,219		$	1,382,535		$	4,190,720		$	3,889,298

Total sales by industry segment include sales to unaffiliated customers as reported in our consolidated statements of comprehensive 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 both segments are included on an allocated basis.