Business and segment information

12 Months Ended

Jan. 31, 2014

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 two distinct segments: Piping Systems and Filtration Products.

Fiscal year. The Company's fiscal year ends on January 31. Years and balances described as 2013 and 2012 are the fiscal years ended January 31, 2014 and 2013, 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.

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.

In the fiscal year ended January 31, 2014, one customer in Piping Systems accounted for 10.6% of the Company's net sales. In the fiscal year ended January 31, 2013, no customer accounted for 10.0% or more of the Company's net sales. At January 31, 2014, one customer in Piping Systems accounted for 24.5% of accounts receivable.

Segment information was as follows:

	2013	2012
Net sales
Piping Systems	$158,422	$89,664
Filtration Products	68,413	79,143
Total net sales	$226,835	$168,807
Gross profit
Piping Systems	$43,273	$17,020
Filtration Products	8,942	10,474
Total gross profit	$52,215	$27,494
Income (loss) from operations
Piping Systems	$24,213	$3,452
Filtration Products	(1,629)	(2,962)
Corporate	(9,501)	(9,310)
Total income (loss) from operations	$13,083	$(8,820)
Segment assets
Piping Systems	$109,154	$83,944
Filtration Products	41,765	52,958
Corporate	12,350	12,586
Total segment assets	$163,269	$149,488
Capital expenditures
Piping Systems	$2,425	$4,206
Filtration Products	294	995
Corporate	42	159
Total capital expenditures	$2,761	$5,360
Depreciation and amortization
Piping Systems	$3,489	$3,344
Filtration Products	1,729	1,750
Corporate	567	712
Total depreciation and amortization	$5,785	$5,806
Interest expense, net
Piping Systems	$495	$226
Filtration Products	1,966	2,239
Corporate	(1,150)	(967)
Total interest expense, net	$1,311	$1,498
Impairment of fixed assets
Filtration Products	$0	$1,520

Geographic information. Net sales are attributed to a geographic area based on the destination of the product shipment. Sales to foreign customers was 57% in 2013 compared to 30% in 2012. 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.

	2013	2012
Net sales
United States	$97,311	$104,830
Middle East	94,500	24,631
Europe	14,933	16,324
Canada	7,591	9,771
India	773	6,317
Other Americas	6,915	2,317
Other	4,812	4,617
Total net sales	$226,835	$168,807
Long-lived assets
United States	$25,260	$26,952
Middle East	12,751	13,204
Denmark	4,020	4,445
India	510	981
Total long-lived assets	$42,541	$45,582