BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 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 June 30, 2019:

	As of June 30, 2019
2019 (excluding the six months ended June 30, 2019)	$	371,000
2020		581,000
2021		496,000
2022		459,000
2023		470,000
Thereafter		202,000
Total operating lease payments		2,579,000
Less imputed interest		(260,000)
Total operating lease liabilities	$	2,319,000

Weighted-average remaining lease term	4.5 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, Aerospace and Industrial/catalog.

	Three months ended June 30,
	2019				2018				Decrease
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
Retail	$	3,427,000	31.8	%	$	4,215,000	33.8	%	$	(788,000)	(18.7)	%
Automotive		3,759,000	34.8			3,774,000	30.3			(15,000)	(0.4)
Industrial/catalog		1,223,000	11.3			1,291,000	10.3			(68,000)	(5.3)
Aerospace		2,231,000	20.7			3,016,000	24.2			(785,000)	(26.0)
Other		146,000	1.4			174,000	1.4			(28,000)	(16.1)
Total	$	10,786,000	100.0	%	$	12,470,000	100.0	%	$	(1,684,000)	(13.5)	%

	Six months ended June 30,
	2019				2018				Decrease
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
Retail	$	6,139,000	28.9	%	$	8,305,000	33.6	%	$	(2,166,000)	(26.1)	%
Automotive		7,624,000	35.9			7,710,000	31.2			(86,000)	(1.1)
Industrial/catalog		2,547,000	12.0			2,655,000	10.7			(108,000)	(4.1)
Aerospace		4,591,000	21.6			5,686,000	23.0			(1,095,000)	(19.3)
Other		325,000	1.6			378,000	1.5			(53,000)	(14.0)
Total	$	21,226,000	100.0	%	$	24,734,000	100.0	%	$	(3,508,000)	(14.2)	%

Hy-Tech designs, manufactures and sells a wide range of industrial products under the brands ATP, ATSCO and OZAT, which are categorized as “ATP” for reporting purposes, and include products such as heavy-duty air tools. Hy-Tech's “Engineered Solutions” is in included in the OEM category in the table below. Currently NUMATX, Thaxton and other peripheral product lines are reported as “Other” below.

	Three months ended June 30,
	2019				2018				Increase (decrease)
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue			$	%
ATP	$	1,912,000	47.7	%	$	2,077,000	55.9	%	$	(165,000)	(7.9)	%
OEM		1,754,000	43.7			1,257,000	33.8			497,000	39.5
Other		346,000	8.6			384,000	10.3			(38,000)	(9.9)
Total	$	4,012,000	100.0	%	$	3,718,000	100.0	%	$	294,000	7.9	%

	Six months ended June 30,
	2019				2018				Increase (decrease)
			Percent of				Percent of
	Revenue		revenue		Revenue		revenue		$		%
ATP	$	3,784,000	47.9	%	$	3,978,000	55.3	%	$	(194,000)	(4.9)	%
OEM		3,344,000	42.4			2,379,000	33.1			965,000	40.6	%
Other		766,000	9.7			839,000	11.6			(73,000)	(8.7)
Total	$	7,894,000	100.0	%	$	7,196,000	100.0	%	$	698,000	9.7	%