Annual report pursuant to Section 13 and 15(d)

Segments

v2.4.0.6
Segments
 12 Months Ended
Dec. 31, 2011
Segments [Abstract]  
SEGMENTS

NOTE 18—SEGMENTS

Segment information for the years ended 2011, 2010 and 2009 and reconciliations to consolidated amounts are as follows:

 

                         
(In thousands)   2011     2010     2009  

Sales:

                        

Aerospace

   $ 213,874     $ 179,586     $ 155,605  

Test Systems

     14,289       16,168       35,596  
   

 

 

    

 

 

    

 

 

  

Total Sales

   $ 228,163     $ 195,754     $ 191,201  
   

 

 

    

 

 

    

 

 

  

Operating profit (loss) and margins:

                        

Aerospace

   $ 40,400     $ 30,112     $ 16,274  
      18.9 %      16.8 %      10.5 % 

Test Systems

     (4,760 )      (1,806 )      (18,219 ) 
      (33.3 )%      (11.2 )%      (51.2 )% 
   

 

 

    

 

 

    

 

 

  

Total operating profit (loss)

     35,640       28,306       (1,945 ) 
   

 

 

    

 

 

    

 

 

  
      15.6 %      14.5 %      (1.0 )% 

Deductions from operating profit (loss):

                        

Interest expense

     (1,806 )      (2,551 )      (2,533 ) 

Corporate and other expenses, net

     (4,819 )      (3,926 )      (3,268 ) 
   

 

 

    

 

 

    

 

 

  

Earnings (loss) before income taxes

   $ 29,015     $ 21,829     $ (7,746 ) 
   

 

 

    

 

 

    

 

 

  

Depreciation and amortization:

                        

Aerospace

   $ 3,929     $ 3,695     $ 4,053  

Test Systems

     584       659       2,585  

Corporate

     430       527       704  
   

 

 

    

 

 

    

 

 

  

Total depreciation and amortization

   $ 4,943     $ 4,881     $ 7,342  
   

 

 

    

 

 

    

 

 

  

Identifiable assets:

                        

Aerospace

   $ 136,930     $ 96,787     $ 95,422  

Test Systems

     20,020       24,785       24,256  

Corporate

     17,955       29,316       19,036  
   

 

 

    

 

 

    

 

 

  

Total assets

   $ 174,905     $ 150,888     $ 138,714  
   

 

 

    

 

 

    

 

 

  

Capital expenditures:

                        

Aerospace

   $ 14,195     $ 2,438     $ 2,116  

Test Systems

     86       619       350  

Corporate

     —         511       —    
   

 

 

    

 

 

    

 

 

  

Total capital expenditures

   $ 14,281     $ 3,568     $ 2,466  
   

 

 

    

 

 

    

 

 

  

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

For the year ended December 31, 2011, the operating loss in the Test Systems segment includes a goodwill impairment loss of approximately $2.4 million and a purchased intangible impairment loss of approximately $0.1 million. For the year ended December 31, 2010, there was no goodwill or purchased intangible impairment losses in either the Aerospace or Test System segment. For the year ended December 31, 2009, the operating loss in the Test Systems segment includes a goodwill impairment loss of approximately $14.2 million and a purchased intangible impairment loss of approximately $5.2 million. In the Aerospace segment, goodwill amounted to $17.2 million and $5.2 million at December 31, 2011 and 2010, respectively. In the Test Systems segment there was no goodwill as of December 31, 2011. Test Systems goodwill amounted to $2.4 million at 2010.

 

The following table summarizes the Company’s sales by geographic region:

 

                         
(In thousands)   2011     2010     2009  

North America

   $ 196,447     $ 168,556     $ 165,123  

Asia

     12,544       13,026       10,867  

Europe

     16,238       11,294       13,391  

South America

     2,678       2,457       1,659  

Other

     256       421       161  
   

 

 

    

 

 

    

 

 

  
    $ 228,163     $ 195,754     $ 191,201  
   

 

 

    

 

 

    

 

 

  

Sales recorded by the Company’s Canadian operations were $12.2 million in 2011, $9.1 million in 2010 and $10.1 million in 2009. Net income from this location was $0.9 million in 2011, $0.1 million in 2010 and $0.4 million in 2009. Net Assets held outside of the United States total $6.6 million at December 31, 2011 and $5.3 million at December 31, 2010. The exchange loss included in determining net income was $0.1 million, $0.1 million and $0.3 million in 2011, 2010 and 2009, respectively. Cumulative translation adjustments amounted to $1.2 million and $1.3 million at December 31, 2011 and 2010, respectively.

The Company has a significant concentration of business with two major customers, Panasonic Aviation Corporation and various departments of the U.S. Government, primarily branches of the Department of Defense and the Federal Aviation Administration. Sales to Panasonic Avionics in the Aerospace segment accounted for approximately 38.1% of sales in 2011, 26.5% of sales in 2010 and 19.4% of sales in 2009. Accounts receivable from this customer at December 31, 2011 and 2010 were approximately $9.9 million and $6.5 million, respectively. In the Aerospace segment sales to the U.S. Government accounted for approximately 6.2% of Aerospace segment sales in 2011, 10.9% of sales in 2010 and 8.1% of sales in 2009. In the Test Systems segment sales to the U.S. Government accounted for approximately 51.7% of the Test System segment’s sales in 2011 and 61.2% of sales in 2010 and 69.4% of sales in 2009. Accounts receivable from this customer at December 31, 2011 and 2010 were $3.9 million and $7.0 million, respectively.

The Company’s property, plant and equipment are all located in North America.