Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 20.   Business Segment Information.

The Company is a leading manufacturer and supplier operating two segments: Foam and Coatings. The Company's segments are organized based on manufacturing competencies. The Foam segment primarily supplies both roofing and building envelope insulation applications. Roofing applications consist of foam and coatings systems in new and retrofit commercial and industrial applications. Insulation is used in commercial and industrial, as well as residential, applications. We manufacture our own roofing and wall insulation foams. Additionally, this segment also supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications, sundry items, and application equipment.  The Coatings segment primarily supplies a variety of protective coatings for roofing systems for new and retrofit commercial and industrial applications, as well as residential, applications. Additionally, this segment also supplies caulking for general application in the construction industry, and sundry items. We manufacture our own roof coatings. After our acquisition of AirTight's assets in July 2008, we began making and selling our own spray rigs, which are required for the application of our foam and large scale coating jobs. This is a basic assembly operation and we undertake this task to provide turn key service to our customers. Prior to the acquisition of AirTight's assets, we were just a distributor of spray rigs. We allocate these amounts to either our foam or coatings segments, as applicable. The Company maintains centralized manufacturing operations in Houston, Texas for its Foam, Coatings, and Spray Rigs. Each of the businesses in which the Company is engaged is highly competitive. However, diversification of products within these segments and national, including limited international, markets served tends to minimize the impact on the Company's total sales and earnings of changes in demand for a particular product. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The Company allocates resources to segments and evaluates the performance of segments based upon reported segment income before income taxes. A substantial amount of administrative expenses are allocated to the segments. The portion not allocated to the segments represents the unallocated cost of certain corporate expenses and are included in Unallocated Amounts. There are no intersegment sales or transfers.  The following are selected results of reportable segments:

Segments
2011	Foam		Coatings		Totals
Sales	$	71,592,721	$	14,626,990	$	86,219,711
Depreciation		221,656		45,288		71,041,957
Amortization of Other Intangible Assets		336,182		68,429		404,611
Interest Expense		208,900		42,121		251,021
Segment Profit		1,705,649		135,703		1,841,353
Segment Assets (1)		22,530,207		4,871,906		27,402,113
Expenditures for Segment Assets	$	230,749	$	47,128	$	277,877
2010	Foam		Coatings		Totals
Sales	$	61,597,220	$	8,899,409	$	70,496,629
Depreciation		244,892		35,446		280,338
Amortization of Other Intangible Assets		304,208		43,419		347,625
Interest Expense		663,996		94,050		758,046
Segment Profit (Loss)		4,995,806		678,482		5,674,289
Segment Assets (1)		22,586,509		3,318,402		25,904,911
Expenditures for Segment Assets	$	295,240	$	41,356	$	336,596

The following are reconciliations of reportable segment profit or loss, and assets, to the Company's totals for the years indicated:

Segments Profit
	2011			2010
Total Profit for Reportable Segments	$	1,841,353		$	5,674,289
Unallocated Amounts:
Corporate Expenses		(5,347,643	)		(3,573,225	)
Income (Loss) Before Income Taxes	$	(3,506,290	)	$	2,101,064
Assets		2011			2010
Total Assets for Reportable Segments (1)	$	27,402,113		$	25,877,943
Other Unallocated Amounts (2)		715,137			630,047
Total	$	28,117,250		$	26,507,990

Notes:

(1)      Segment assets are the total assets used in the operation of each segment.

(2)      Includes corporate assets which are principally cash and prepaid expenses.