DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2011

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

5. DISCONTINUED OPERATIONS

American Hardwoods

In January 2009, the Company completed the sale of certain assets and the business of American Hardwoods, Inc. (“American Hardwoods”) for cash consideration of $2.0 million.  In conjunction with the sale, the Company entered into a separate real estate purchase agreement with the buyer to sell the building and property that housed this operation for a purchase price of $2.5 million.  The building and property were sold in June 2009 for $2.5 million, net of selling expenses, and proceeds from the sale were used to pay down approximately $2.5 million in long-term debt.  Financial results for American Hardwoods were previously included in the Distribution segment.

The Company recorded a net pretax gain on the sale of certain assets and the business of American Hardwoods of approximately $0.2 million for the year ended December 31, 2009.  There was no gain or loss recognized on the sale of the building in 2009.  The pretax loss from operations was $19,000 in 2009.

Aluminum Extrusion Operation

In July 2009, the Company completed the sale of certain assets of its aluminum extrusion operation.  Previously, the financial results of this operation had comprised the entire Engineered Solutions segment.  The purchase price consisted of (i) net cash proceeds of $7.4 million and (ii) the assumption by the buyer of approximately $2.2 million of certain accounts payable and accrued liabilities pursuant to the definitive purchase agreement, of which $4.2 million of the purchase price pertained to the sale of equipment and the facility and $5.4 million pertained to the sale of trade receivables and inventory.

Approximately $4.4 million of the net cash proceeds were used to pay down an additional $1.1 million in principal on the Company's term loan and pay off the remaining $3.3 million of principal on the industrial revenue bonds related to this facility.  The remaining $3.0 million of proceeds were used to reduce borrowings under the Company's revolving line of credit.

The Company recorded a pretax gain on the sale of approximately $0.5 million for the year ended December 31, 2009.  Pretax income from operations was $0.8 million in 2009.

The American Hardwoods and aluminum extrusion operations are classified as discontinued operations.  The operating results are included in income from discontinued operations on the consolidated statements of operations.  Operating results through their respective sale dates are as follows:

(thousands)	Years Ended December 31,	2011		2010		2009
Net sales:
American Hardwoods		$	-	$	-	$	449
Aluminum extrusion operation			-		-		13,282
Total net sales		$	-	$	-	$	13,731
Pretax income (loss):
Operations:
American Hardwoods		$	-	$	-	$	(19	)
Aluminum extrusion operation			-		-		822
Total pretax income from operations			-		-		803
Gain from divestitures:
American Hardwoods			-		-		229
Aluminum extrusion operation			-		-		454
Total gain from divestitures			-		-		683
Total pretax income		$	-	$	-	$	1,486
After-tax income:
Operations		$	-	$	-	$	498
Divestitures			-		-		424
Total after-tax income		$	-	$	-	$	922

The after-tax income from discontinued operations for the year ended December 31, 2009 reflected certain intra-period adjustments to income tax expense related to taxable income from discontinued operations.