Annual report pursuant to Section 13 and 15(d)

Segments

v2.4.1.9
Segments
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segments

NOTE 18 — SEGMENTS

Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:

 

(In thousands)    2014     2013     2012  

Sales:

       

Aerospace

    $ 494,747      $ 330,530      $ 254,955   
  

 

 

    

 

 

    

 

 

  

Test Systems

   166,769      10,103      11,491   

Less Inter-segment Sales

   (477 )    (696 )    —     
  

 

 

    

 

 

    

 

 

  
  166,292      9,407      11,491   
  

 

 

    

 

 

    

 

 

  
         
  

 

 

    

 

 

    

 

 

  

Total Consolidated Sales

 $ 661,039    $ 339,937    $ 266,446   
  

 

 

    

 

 

    

 

 

  

Operating Profit (Loss) and Margins:

Aerospace

 $ 79,753    $ 55,200    $ 44,137   
  16.1 %    16.7 %    17.3 % 

Test Systems

   12,401      (3,756 )    (4,985 ) 
  7.4 %    (37.2 )%    (43.4 )% 
  

 

 

    

 

 

    

 

 

  

Total Operating Profit

   92,154      51,444      39,152   
  

 

 

    

 

 

    

 

 

  
  13.9 %    15.1 %    14.7 % 

Deductions from Operating Profit:

Interest Expense, Net of Interest Income

   (8,255 )    (4,094 )    (1,042 ) 

Corporate and Other Expenses, Net

   (4,792 )    (9,139 )    (6,527 ) 
  

 

 

    

 

 

    

 

 

  

Income before Income Taxes

 $ 79,107    $ 38,211    $ 31,583  
  

 

 

    

 

 

    

 

 

  

Depreciation and Amortization:

Aerospace

 $ 17,847    $ 10,058    $ 6,043   

Test Systems

   8,786      590     634   

Corporate

   621      411      228   
  

 

 

    

 

 

    

 

 

  

Total Depreciation and Amortization

 $ 27,254    $ 11,059   $ 6,905   
  

 

 

    

 

 

    

 

 

  

Identifiable Assets:

Aerospace

 $ 468,481    $ 428,619    $ 177,168   

Test Systems

   69,247      11,035      18,121   

Corporate

   25,182      51,617      16,700   
  

 

 

    

 

 

    

 

 

  

Total Assets

 $ 562,910    $ 491,271    $ 211,989   
  

 

 

    

 

 

    

 

 

  

Capital Expenditures:

Aerospace

 $ 35,650    $ 6,711   $ 16,324  

Test Systems

   3,472      61     396  

Corporate

   1,760      96     —    
  

 

 

    

 

 

    

 

 

  

Total Capital Expenditures

 $ 40,882    $ 6,868   $ 16,720  
  

 

 

    

 

 

    

 

 

  

 

Operating profit is sales less cost of products sold and other operating expenses, excluding interest expense and other corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment.

For the years ended December 31, 2014, 2013 and 2012, there was no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System segment. In the Aerospace segment, goodwill amounted to $100.2 million and $101.0 million at December 31, 2014 and 2013, respectively. In the Test Systems segment, there was no goodwill as of December 31, 2014 and 2013.

The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:

 

     2014      2013      2012  
(In thousands)                     

North America

    $ 452,994       $ 300,368       $ 233,245   

Asia

      141,247         15,570         14,030   

Europe

      64,742         21,190         16,188   

South America

      1,192         1,851         1,937   

Other

      864         958         1,046   
  

 

 

     

 

 

     

 

 

  
$ 661,039    $ 339,937    $ 266,446   
  

 

 

     

 

 

     

 

 

  

The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:

 

     2014      2013      2012  
(In thousands)                     

United States

    $ 105,698       $ 59,803       $ 53,235   

France

      10,347         10,771         —     

Canada

      271         326         302   
  

 

 

     

 

 

     

 

 

  
$ 116,316    $ 70,900    $ 53,537   
  

 

 

     

 

 

     

 

 

  

Sales recorded by the Company’s foreign operations were $64.5 million, $16.5 million and $14.2 million in 2014, 2013 and 2012, respectively. Net income from these locations was $4.1 million, $0.2 million and $1.0 million in 2014, 2013 and 2012, respectively. Net assets held outside of the United States total $38.0 million and $40.1 million at December 31, 2014 and 2013, respectively. The exchange loss included in determining net income was insignificant in each of the years ending December 31, 2014, 2013 and 2012. Cumulative translation adjustments amounted to $(3.4) million and $1.3 million at December 31, 2014 and 2013, respectively.

The Company has a significant concentration of business with three major customers; Apple Inc. (“Apple”), Panasonic Aviation Corporation (“Panasonic”), and The Boeing Company (“Boeing”). The following is information relating to the activity with those customers:

 

     2014     2013     2012  

Percent of Consolidated Revenue

       

Apple

      17.9 %      —          —     

Panasonic

      17.7 %      29.6 %      38.0 % 

Boeing

      14.1 %      14.5 %      5.5 % 

 

(In thousands)    2014      2013  

Accounts Receivable at December 31,

      

Apple

    $ 4,342       $ —     

Panasonic

    $ 21,808       $ 14,090   

Boeing

    $ 6,874       $ 6,458   

Sales to Apple are in the Test Systems segment. Sales to Panasonic are all in the Aerospace segment. Sales to Boeing occur in both segments.