Business Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Business Segments

11. 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.

Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted):

	ATG						CPG						Consolidated
	Years Ended						Years Ended						Years Ended
	December 31,						December 31,						December 31,
	2018			2017			2018			2017			2018			2017
Revenues from unaffiliated customers	$	40,415		$	32,414		$	7,442		$	9,030		$	47,857		$	41,444
Cost of goods sold, inclusive of depreciation		(28,587	)		(23,683	)		(7,185	)		(7,764	)		(35,772	)	$	(31,447	)
Gross margin		11,828			8,731			258			1,266			12,085			9,997
Gross margin %		29.3	%		26.9	%		3.5	%		14.0	%		25.3	%		24.1	%
Selling, general and administrative		(5,423	)		(5,992	)		(2,320	)		(1,853	)		(7,743	)		(7,845	)
Interest		(73	)		(45	)		(34	)		(32	)		(107	)		(77	)
Total costs and expenses		(34,083	)		(29,720	)		(9,539	)		(9,649	)		(43,622	)		(39,369	)
Income (loss) before income tax provision		6,332			2,694			(2,097	)		(619	)		4,235			2,075
Income tax provision (benefits)		1,102			984			(365	)		(226	)		737			758
Net income/(loss)	$	5,230		$	1,710		$	(1,732	)	$	(393	)	$	3,498		$	1,317
Total assets	$	31,647		$	26,331		$	10,038		$	11,655		$	41,685		$	37,986
Capital expenditures	$	1,689		$	1,998		$	177		$	178		$	1,866		$	2,176