Note L - Business Segments

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

L.   BUSINESS SEGMENTS:

The Company operates in three business segments.  The Company identifies its segments based on the Company's organization structure, which is primarily by principal products.  The principal product groups are Housewares/Small Appliance, Defense, and Safety.  Sales for all segments are primarily to customers in North America. 

The Housewares/Small Appliance segment designs, markets, and distributes housewares and small appliances.  The housewares/small appliance products are sold primarily in the United States and Canada directly to retail outlets and also through independent distributors.  As more fully described in Note J, the Company primarily sources its Housewares/Small Appliance products from non-affiliated suppliers located in the Orient.  Sales are seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to the holiday season.

The Defense segment was started in 2001 with the acquisition of AMTEC Corporation, which manufactures precision mechanical and electromechanical assemblies for the U.S. Government and prime contractors.  During 2005, and again during 2010, AMTEC Corporation was one of two prime contractors selected by the Army to supply all requirements for the 40mm family of practice and tactical ammunition cartridges for a period of five years.  In 2016, AMTEC was awarded a one-year contract, and in 2017 and 2022, it was awarded third and fourth five-year contracts, respectively as the sole prime contractor.  AMTEC's manufacturing plant is located in Janesville, Wisconsin.  Since the inception of the Defense segment in 2001, the Company has expanded the segment by making several strategic business acquisitions, and has additional facilities located in East Camden, Arkansas; Antigo, Wisconsin; Clear Lake, South Dakota, and Marshall, Texas.  During 2003, the segment was expanded with the acquisition of Spectra Technologies, LLC of East Camden, Arkansas.  This facility performs Load, Assemble, and Pack (LAP) operations on ordnance-related products for the U.S. Government and prime contractors.  During 2006, the segment was expanded again with the acquisition of certain assets of Amron, LLC of Antigo, Wisconsin, which primarily manufactures cartridge cases used in medium caliber (20-50mm) ammunition.  In 2011 the segment was further augmented with the purchase of certain assets of ALS Technologies, Inc. of Bull Shoals, Arkansas, which manufactured less lethal ammunitions.  The Company subsequently relocated this operation to Perry, Florida, and in October of 2018, divested itself of the less lethal business.  During 2014, the Company continued the expansion of the Defense segment with the purchase of substantially all of the assets of Chemring Energetic Devices, Inc. located in Clear Lake, South Dakota, and all of the real property owned by Technical Ordnance Realty, LLC. The Clear Lake facility manufactures detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. During 2022, the Company again expanded the Defense segment by acquiring the equity interests of Woodlawn Manufacturing, Ltd. Woodlawn Manufacturing, Ltd, is a high volume manufacturer of precision metal parts and assemblies primarily for the defense and aerospace industry. See Note P. The Defense segment’s collection of facilities enables the Company to deliver in virtually all aspects of the manufacture of medium caliber training and tactical rounds.  Those aspects include the fuze, the detonator, the metal parts (including the cartridge case), and load, assemble and pack of the final round.

The Safety segment was started in 2019 with the acquisition of OneEvent Technologies, Inc., which focuses on protection for buildings, homes, assets, and occupants.  The company is located in Mount Horeb, Wisconsin and was established in 2014.  OneEvent's cloud-based learning and analytics engine utilizes a series of sensing devices integrated with a cellular gateway to predict, alert, and prevent.  Sensors measure a variety of environmental data including temperature, smoke, carbon monoxide, motion, humidity, water, and more.  On purchase, it was combined with Rusoh, Inc, which designs and markets fire extinguishers. Previous to 2019, Rusoh, Inc. had been included in the Company's Housewares/Small Appliance segment.  On July 29, 2022, certain assets were purchased and certain liabilities were assumed of Knox Safety, Inc., a company formed in 2019 with operations in Illinois and North Carolina.  Knox Safety is a startup company that designs and sells carbon monoxide detectors for residential use. Subsequent to the acquisition, the company legally adopted the corporate name Rely Innovations, Inc. See Note P.  

	(in thousands)
	Housewares / Small Appliance			Defense		Safety			Total
Year ended December 31, 2022
External net sales	$	118,347		$	202,483		793		$	321,623
Gross profit (loss)		17,422			42,638		(4,935	)		55,125
Operating profit (loss)		5,262			31,644		(14,779	)		22,127
Total assets		211,804			194,422		5,621			411,847
Depreciation and amortization		975			1,613		391			2,979
Capital expenditures		527			393		110			1,030
Year ended December 31, 2021
External net sales	$	115,924		$	239,514		339		$	355,777
Gross profit (loss)		9,974			61,205		(6,783	)		64,396
Operating profit (loss)		(2,631	)		51,216		(18,556	)		30,029
Total assets		242,456			168,296		9,646			420,398
Depreciation and amortization		1,215			1,530		233			2,978
Capital expenditures		738			1,966		162			2,866
Year ended December 31, 2020
External net sales	$	117,645		$	234,645		337		$	352,627
Gross profit (loss)		24,206			62,561		(1,845	)		84,922
Operating profit (loss)		10,371			52,810		(6,985	)		56,196
Total assets		245,662			164,951		22,557			433,170
Depreciation and amortization		983			1,743		279			3,005
Capital expenditures		828			1,678		115			2,621

In the above summary, operating profit represents earnings before other income, income taxes.  The Company's segments operate discretely from each other with no shared owned or leased manufacturing facilities.  Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliance segment for all periods presented.