Business Segments

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

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 September 30, 2014, the Company had identifiable assets of approximately $33,868,000 ($30,003,000 – December 31, 2013) of which approximately $22,546,000 ($19,816,000 – December 31, 2013) was for ATG and approximately $11,322,000 ($10,187,000 – December 31, 2013) was for CPG.

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

	ATG						CPG						Consolidated
	Nine Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,
	2014			2013			2014			2013			2014			2013
Revenues from unaffiliated customers	$	18,002		$	16,709		$	5,014		$	6,427		$	23,016		$	23,136
Cost of goods sold, exclusive of depreciation and amortization		(12,658	)		(11,978	)		(4,755	)		(5,186	)		(17,413	)		(17,164	)
Selling, general and administrative		(3,096	)		(2,886	)		(1,085	)		(1,254	)		(4,181	)		(4,140	)
Interest expense		(31	)		(31	)		-			-			(31	)		(31	)
Arbitration award expense		(5,419	)		-			-			-			(5,419	)		-
Depreciation and amortization		(351	)		(328	)		(139	)		(132	)		(490	)		(460	)
Other income, net		13			1			3			44			16			45
Income (loss) before income tax provision (benefit)		(3,540	)		1,487			(962	)		(101	)		(4,502	)		1,386
Income tax (benefit) provision		(1,183	)		375			(320	)		(28	)		(1,503	)		347
Net (loss) income	$	(2,357	)	$	1,112		$	(642	)	$	(73	)	$	(2,999	)	$	1,039
Capital expenditures	$	602		$	920		$	1,175		$	204		$	1,777		$	1,124

	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30,						September 30,						September 30,
	2014			2013			2014			2013			2014			2013
Revenues from unaffiliated customers	$	6,443		$	5,520		$	1,588		$	2,207		$	8,031		$	7,727
Cost of goods sold, exclusive of depreciation and amortization		(4,471	)		(3,871	)		(1,654	)		(1,723	)		(6,125	)		(5,594	)
Selling, general and administrative		(914	)		(1,088	)		(348	)		(418	)		(1,262	)		(1,506	)
Interest expense		(12	)		(10	)		-			-			(12	)		(10	)
Arbitration award expense		(5,419	)		-			-			-			(5,419	)		-
Depreciation and amortization		(106	)		(109	)		(44	)		(43	)		(150	)		(152	)
Other income, net		3			1			1			43			4			44
Income (loss) before income tax provision (benefit)		(4,476	)		443			(457	)		66			(4,933	)		509
Income tax provision (benefit)		(1,462	)		134			(170	)		17			(1,632	)		151
Net (loss) income	$	(3,014	)	$	309		$	(287	)	$	49		$	(3,301	)	$	358
Capital expenditures	$	149		$	107		$	751		$	28		$	900		$	135