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Business Segments
 3 Months Ended
Mar. 31, 2020
Business Segments  
Business Segments

10.           Business Segments

The Company operates in two business segments, Advanced Technology Group (“ATG”) and Consumer Products Group (“CPG”). The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and are managed separately. Operations in ATG primarily involve the design, manufacture, and marketing of servo-control components (i.e., torque motors, control valves, actuators, etc.) for government, commercial and industrial applications. CPG’s operations involve the design, manufacture and marketing of a variety of cutlery products for use by consumers and government agencies. The Company derives its primary sales revenue from domestic customers, although a portion of finished products are for foreign end use.

As of March 31, 2020, the Company had identifiable assets of approximately $52,108,000 ($49,470,000 – December 31, 2019) of which approximately $42,579,000 ($39,980,000 – December 31, 2019) was for ATG and approximately $9,529,000 ($9,490,000 – December 31, 2019) was for CPG.

Information regarding the Company’s operations in these segments is summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($000’s omitted except per share data)

 

 

 

ATG

 

CPG

 

Consolidated

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

March 31, 

 

March 31, 

 

March 31, 

 

 

    

2020

    

2019

    

2020

    

2019

    

2020

    

2019

 

Revenues from unaffiliated customers

 

$

13,814

 

$

10,595

 

$

1,634

 

$

1,408

 

$

15,448

 

$

12,003

 

 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Cost of goods sold, inclusive of depreciation

 

 

(9,366)

 

 

(8,467)

 

 

(1,370)

 

 

(1,463)

 

 

(10,736)

 

$

(9,930)

 

Gross margin (loss)

 

 

4,448

 

 

2,128

 

 

264

 

 

(55)

 

 

4,712

 

 

2,073

 

Gross margin %

  

 

32.2

%  

 

20.1

%  

 

16.2

%  

 

(3.9)

%  

 

30.5

%  

 

17.3

%

 

 

 

  

 

 

  

 

 

 

 

 

  

 

 

  

 

 

  

 

Selling, general and administrative

 

 

(1,743)

 

 

(1,280)

 

 

(525)

 

 

(647)

 

 

(2,268)

 

 

(1,927)

 

Interest

 

 

(38)

 

 

(19)

 

 

(4)

 

 

(8)

 

 

(42)

 

 

(27)

 

Total costs and expenses

 

 

(11,147)

 

 

(9,766)

 

 

(1,899)

 

 

(2,118)

 

 

(13,046)

 

 

(11,884)

 

 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Income/(loss) before income tax provision

 

 

2,667

 

 

829

 

 

(265)

 

 

(710)

 

 

2,402

 

 

119

 

 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

 

  

 

Income tax provision (benefit)

 

 

560

 

 

145

 

 

(56)

 

 

(124)

 

 

504

 

 

21

 

Net income/(loss)

 

$

2,107

 

$

684

 

$

(209)

 

$

(586)

 

$

1,898

 

$

98

 

Capital expenditures

 

$

413

 

$

405

 

$

 —

 

$

106

 

$

413

 

$

511