Business and segment information

12 Months Ended

Jan. 31, 2013

Business and segment information [Abstract]

Business and segment information [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 2012 and 2011 are the fiscal years ended January 31, 2013 and 2012, 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, hazardous fluids and petroleum products, (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 with many of its piping systems 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:

	2012		2011
Net sales
Piping Systems	$89,664		$96,977
Filtration Products	79,143		93,705
Industrial Process Cooling	37,131		32,112
Corporate and Other	6,080		10,702
Total net sales	$212,018		$233,496
Gross profit
Piping Systems	$17,020		$14,410
Filtration Products	10,474		12,466
Industrial Process Cooling	10,240		8,541
Corporate and Other	373		904
Total gross profit	$38,107		$36,321
Income (loss) from operations
Piping Systems	$3,452		$1,143
Filtration Products	(2,962	)	614
Industrial Process Cooling	1,954		810
Corporate and Other	(9,709	)	(7,630	)
Total loss from operations	$(7,265)		$(5,063)
Income (loss) before income taxes
Piping Systems	$4,838		$2,701
Filtration Products	(2,962	)	614
Industrial Process Cooling	1,954		810
Corporate and Other	(11,525	)	(9,067	)
Total loss before income taxes	$(7,695)		$(4,942)
Segment assets
Piping Systems	$83,944		$74,953
Filtration Products	52,958		55,095
Industrial Process Cooling	11,451		10,810
Corporate and Other	1,126		16,425
Total segment assets	$149,479		$157,283
Capital expenditures
Piping Systems	$4,206		$8,396
Filtration Products	995		1,449
Industrial Process Cooling	74		51
Corporate and Other	85		190
Total capital expenditures	$5,360		$10,086
Depreciation and amortization
Piping Systems	$3,344		$3,076
Filtration Products	1,750		1,734
Industrial Process Cooling	120		154
Corporate and Other	592		618
Total depreciation and amortization	$5,806		$5,582
Impairment of fixed assets
Filtration Products	$1,520		$0

Geographic information. Net sales are attributed to a geographic area based on the destination of the product shipment. Sales to foreign customers was 33% in 2012 compared to 30% in 2011. 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.

	2012	2011
Net sales
United States	$142,454	$163,104
Middle East	24,631	12,721
Europe	19,386	20,815
Canada	11,183	6,894
India	6,318	2,259
Other Americas	3,053	22,370
Other	4,993	5,333
Total net sales	$212,018	$233,496
Long-lived assets
United States	$27,151	$30,366
Middle East	13,204	11,417
Denmark	5,065	4,623
India	981	1,436
Total long-lived assets	$46,401	$47,842