Business Segments and Geographic Area Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments and Geographic Area Information

Business Segments and Geographic Area Information

Business Segments

The Company is a leading United States based manufacturer and global supplier operating two segments: Foam and Coatings. The Company’s segments are organized based on manufacturing competencies.

Foam. 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. Spray Rigs are an integral part of our business insofar that they are required for the application of our foam and used for large scale coating jobs. We began making and selling our own spray rigs during 2008. This is a basic assembly operation and we undertake this task to provide turnkey service to our customers. We allocate sales amounts for Spray Rigs to either our foam or coatings segments, as applicable. The AirTight Division involves application of interior insulation foams that we produce and installation of other energy reducing products in multi-family properties by subcontractors hired by the Company on a limited basis. We allocate sales amounts for The AirTight Division to our foam segment.

Coatings. 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.

The Company maintains centralized manufacturing and spray rig building operations in Houston, Texas. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. 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 (in thousands):

Segments
2016	Foam		Coatings		Totals
Sales	$	73,919	$	12,467	$	86,386
Depreciation	75		13		88
Amortization of Other Intangible Assets	213		36		249
Interest Expense	640		108		748
Segment Profit	10,213		1,984		12,197
Segment Assets (1)	22,538		4,566		27,104
Expenditures for Segment Assets	$	123	$	21	$	144
2015	Foam		Coatings		Totals
Sales	$	66,030	$	12,619	$	78,649
Depreciation	110		21		131
Amortization of Other Intangible Assets	215		41		256
Interest Expense	955		183		1,138
Segment Profit	4,514		1,815		6,329
Segment Assets (1)	19,341		4,372		23,713
Expenditures for Segment Assets	$	48	$	9	$	57

Note 18 - Business Segments and Geographic Area Information - continued

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

Segments Profit
	2016			2015
Total Profit for Reportable Segments	$	12,197		$	6,329
Unallocated Amounts:
Corporate Expenses	(5,508		)	(6,514		)
Income (Loss) Before Income Taxes	$	6,689		$	(185	)

Assets	2016		2015
Total Assets for Reportable Segments (1)	$	27,104	$	23,713
Other Unallocated Amounts (2)	2,291		2,296
Total	$	29,395	$	26,009

⁽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.

Geographic Area Information

The Company does not operate any manufacturing sites nor maintain a permanent establishment in any particular country outside of the United States at this time. The Company’s products are sold to independent distributors globally for select target markets. Sales are attributed to geographic areas based on customer location. Long-lived assets are attributable to geographic areas based on asset location.

Geographic Area (in thousands):
	United						Rest of
2016	States		Europe		Middle East		World		Total
Sales	$	81,393	$	2,567	$	3	$	2,423	$	86,386
Long-Lived Assets	$	6,431	$	—	$	—	$	—	$	6,431
	United						Rest of
2015	States		Europe		Middle East		World		Total
Sales	$	76,589	$	687	$	—	$	1,373	$	78,649
Long-Lived Assets	$	6,838	$	—	$	—	$	—	$	6,838