BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2019

BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

Schedule of fees and other expenses relating to the sale

Purchase price	$	9,200,000
Selling expenses		451,000
Net proceeds		8,749,000
Land		774,000
Building and improvements		2,956,000
Accumulated depreciation		(2,798,000)
Net book value		932,000
Gain on sale of the Jupiter Facility	$	7,817,000

Schedule of operating lease liabilities

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of September 30, 2019:

	As of September 30, 2019
2019 (excluding the nine months ended September 30, 2019)	$	184,000
2020		586,000
2021		507,000
2022		466,000
2023		468,000
Thereafter		201,000
Total operating lease payments		2,412,000
Less imputed interest		(228,000)
Total operating lease liabilities	$	2,184,000

Weighted-average remaining lease term	4.3 years
Weighted-average discount rate	5.0	%

Schedule of retail automotive aerospace and industrial

Florida Pneumatic markets its air tool products to four primary sectors within the pneumatic tool market; Retail, Automotive, Industrial and Aerospace. It also generates revenue from its Berkley products line, as well as a line of air filters and other OEM parts (“Other”).

	Three months ended September 30,
	2019				2018				(Decrease) increase
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
Retail	$	3,240,000	29.5	%	$	6,343,000	45.2	%	$	(3,103,000)	(48.9)	%
Automotive		3,293,000	30.1			2,930,000	20.9			363,000	12.4
Industrial		1,301,000	11.9			1,592,000	11.3			(291,000)	(18.3)
Aerospace		2,977,000	27.2			3,015,000	21.5			(38,000)	(1.3)
Other		140,000	1.3			155,000	1.1			(15,000)	(9.7)
Total	$	10,951,000	100.0	%	$	14,035,000	100.0	%	$	(3,084,000)	(22.02)	%

	Nine months ended September 30,
	2019				2018				(Decrease) increase
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
Retail	$	9,379,000	29.2	%	$	14,649,000	37.8	%	$	(5,270,000)	(36.0)	%
Automotive		10,916,000	33.9			10,640,000	27.4			276,000	2.6
Industrial		3,887,000	12.0			3,958,000	10.2			(71,000)	(1.8)
Aerospace		7,530,000	23.4			8,989,000	23.2			(1,459,000)	(16.2)
Other		465,000	1.5			534,000	1.4			(69,000)	(12.9)
Total	$	32,177,000	100.0	%	$	38,770,000	100.0	%	$	(6,593,000)	(17.0)	%

Hy-Tech

Hy-Tech designs, manufactures and sells a wide range of industrial products under the brands ATP, OZAT and ATSCO which are categorized as “ATP” for reporting purposes. Products manufactured for other companies under their brands are included in the OEM category in the table below. NUMATX, Thaxton and other peripheral product lines, such as general machining and gears, are reported as “Other” below:

	Three months ended September 30,
	2019				2018				(Decrease) increase
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue			$	%
ATP	$	1,375,000	36.0	%	$	1,487,000	41.0	%	$	(112,000)	(7.5)	%
OEM		2,128,000	55.6			1,723,000	47.5			405,000	23.5
Other		322,000	8.4			417,000	11.5			(95,000)	(22.8)
Total	$	3,825,000	100.0	%	$	3,627,000	100.0	%	$	198,000	5.5	%

	Nine months ended September 30,
	2019				2018				(Decrease) increase
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
ATP	$	5,160,000	44.0	%	$	5,196,000	48.0	%	$	(36,000)	(0.7)	%
OEM		5,472,000	46.7			4,371,000	40.4			1,101,000	25.2
Other		1,087,000	9.3			1,255,000	11.6			(168,000)	(13.4)
Total	$	11,719,000	100.0	%	$	10,822,000	100.0	%	$	897,000	8.3	%