Business and segment information

12 Months Ended

Jan. 31, 2012

Business and segment information [Abstract]

Segment Reporting Disclosure [Text Block]

Note 1 - Business and segment information

MFRI, Inc. ("MFRI", the "Company", or the "Registrant") was incorporated in Delaware on October 12, 1993. MFRI is engaged in the manufacture and sale of products in three distinct segments: piping systems, filtration products and industrial process cooling.

Fiscal year. The Company's fiscal year ends on January 31. Years and balances described as 2011 and 2010 are the fiscal years ended January 31, 2012 and 2011, respectively.

Nature of business. Piping systems engineers, designs, manufactures and sells specialty piping and leak detection and location systems. This segment's specialty piping systems include (i) industrial and secondary containment piping systems for transporting chemicals, waste streams and petroleum liquids, (ii) insulated and jacketed district heating and cooling piping systems for efficient energy distribution to multiple locations from central energy plants, and (iii) oil and gas gathering flow and long lines for oil and mineral transportation. Piping systems' leak detection and location systems are sold as part of many of its piping systems products, and on a stand-alone basis, to monitor areas where fluid intrusion may contaminate the environment, endanger personal safety, cause a fire hazard, impair essential services or damage equipment or property. Filtration products manufactures and sells a wide variety of filter elements for use in industrial air filtration systems and particulate collection systems. Air filtration systems are used in a wide variety of industries to limit particulate emissions, primarily to comply with environmental regulations. Filtration products markets air filtration related products and accessories, and provides maintenance services, consisting primarily of dust collector inspection, filter cleaning and filter replacement. Industrial process cooling designs, manufactures and sells industrial process cooling, including chillers, cooling towers, plant circulating systems, and related accessories for use in industrial process applications. Corporate and Other includes the installation of HVAC systems, that is not sufficiently large to constitute a reportable segment. The Company's products are sold both within the U.S. and internationally.

MFRI's reportable segments are strategic businesses that offer different products and services. Each is managed separately based on fundamental operating differences. Each strategic business was acquired as a unit and management at the time of acquisition was retained. The Company evaluates performance based on gross profit and income or loss from operations.

Segment information was as follows:

	2011		2010
Net sales
Piping Systems	$96,977		$104,559
Filtration Products	93,705		85,133
Industrial Process Cooling	32,112		26,220
Corporate and Other	10,702		2,686
Total net sales	$233,496		$218,598
Gross profit (loss)
Piping Systems	$14,382		$27,303
Filtration Products	12,466		10,394
Industrial Process Cooling	8,541		7,044
Corporate and Other	904		(283	)
Total gross profit	$36,293		$44,458
Income (loss) from operations
Piping Systems	$1,115		$13,831
Filtration Products	614		(1,335	)
Industrial Process Cooling	810		295
Corporate and Other	(7,630	)	(9,893	)
Total (loss) income from operations	$(5,091)		$2,898
Income (loss) before income taxes
Piping Systems	$2,673		$14,814
Filtration Products	614		(1,335	)
Industrial Process Cooling	810		295
Corporate and Other	(9,067	)	(11,154	)
Total (loss) income before income taxes	$(4,970)		$2,620
Segment assets
Piping Systems	$74,717		$77,371
Filtration Products	55,095		56,427
Industrial Process Cooling	10,810		10,545
Corporate and Other	16,425		18,932
Total segment assets	$157,047		$163,275
Capital expenditures
Piping Systems	$8,396		$2,578
Filtration Products	1,449		1,218
Industrial Process Cooling	51		34
Corporate and Other	190		200
Total capital expenditures	$10,086		$4,030
Depreciation and amortization
Piping Systems	$3,076		$3,401
Filtration Products	1,734		1,822
Industrial Process Cooling	154		167
Corporate and Other	618		680
Total depreciation and amortization	$5,582		$6,070

Geographic information. Net sales are attributed to a geographic area based on the destination of the product shipment. Long-lived assets are based on the physical location of the assets and consist of property, plant and equipment used in the generation of revenues in the geographic area.

	2011	2010
Net sales
United States	$163,104	$144,336
Mexico, South America, Central America and the Caribbean	22,370	3,336
Europe	20,815	17,286
Middle East	12,721	31,927
Canada	6,894	6,936
All other Asia	3,513	3,809
India	2,259	9,772
Africa	385	817
Other	1,435	379
Total net sales	$233,496	$218,598
Long-lived assets
United States	$30,366	$31,375
Middle East	11,417	6,050
Denmark	4,623	4,585
India	1,436	1,645
Total long-lived assets	$47,842	$43,655