BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2020

BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

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 March 31, 2020:

	As of March 31, 2020
2020 (excluding the three months ended March 31, 2020)	$	674,000
2021		825,000
2022		736,000
2023		634,000
2024		368,000
Thereafter		1,053,000
Total operating lease payments		4,290,000
Less imputed interest		(524,000)
Total operating lease liabilities	$	3,766,000

Weighted-average remaining lease term	6.6 years
Weighted-average discount rate	4.42	%

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 March 31,
	2020				2019				(Decrease) increase
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
Automotive	$	3,232,000	32.2	%	$	3,866,000	37.0	%	$	(634,000)	(16.4)	%
Retail		2,990,000	29.8			2,709,000	26.0			281,000	10.4
Aerospace		2,599,000	25.9			2,360,000	22.6			239,000	10.1
Industrial		1,062,000	10.6			1,325,000	12.7			(263,000)	(19.8)
Other		147,000	1.5			180,000	1.7			(33,000)	(18.3)
Total	$	10,030,000	100.0	%	$	10,440,000	100.0	%	$	(410,000)	(3.9)	%

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. Power Transition Group (“PTG”) revenue is comprised of products manufactured and sold by the gear businesses that were acquired in October 2019, products sold through Hy-Tech’s legacy gear manufacturing division and products sold to a certain customer whose revenue was included in OEM in 2019. Numatx, Thaxton and other peripheral product lines, such as general machining, are reported as Other.

	Three months ended March 31,
	2020				2019				(Decrease) increase
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue			$	%
OEM	$	1,439,000	43.3	%	$	1,336,000	34.4	%	$	103,000	7.7	%
ATP		1,061,000	32.0			1,986,000	51.2			(925,000)	(46.6)
PTG		735,000	22.1			355,000	9.1			380,000	107.0
Other		85,000	2.6			205,000	5.3			(120,000)	(58.5)
Total	$	3,320,000	100.0	%	$	3,882,000	100.0	%	$	(562,000)	(14.5)	%