Annual report pursuant to Section 13 and 15(d)

SEGMENTS

v2.4.0.8
SEGMENTS
 12 Months Ended
Dec. 31, 2013
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)    2013     2012     2011  

Sales:

       

Aerospace

    $ 330,530      $ 254,955      $ 213,874   
  

 

 

    

 

 

    

 

 

  

Test Systems

      10,103        11,491        14,289   

Less Inter-segment Sales

      (696 )      —          —     
  

 

 

    

 

 

    

 

 

  
     9,407        11,491        14,289   
  

 

 

    

 

 

    

 

 

  
      
  

 

 

    

 

 

    

 

 

  

Total Consolidated Sales

    $ 339,937      $ 266,446      $ 228,163   
  

 

 

    

 

 

    

 

 

  

Operating Profit (Loss) and Margins:

       

Aerospace

    $ 55,200      $ 44,137      $ 40,400   
     16.7 %      17.3 %      18.9 % 

Test Systems

      (3,756 )      (4,985 )      (4,760 ) 
     (37.2 )%      (43.4 )%      (33.3 )% 
  

 

 

    

 

 

    

 

 

  

Total Operating Profit

      51,444        39,152        35,640   
  

 

 

    

 

 

    

 

 

  
     15.1 %      14.7 %      15.6 % 

Deductions from Operating Profit:

       

Interest Expense

      (4,094 )      (1,042 )      (1,806 ) 

Corporate and Other Expenses, Net

      (9,139 )      (6,527 )      (4,819 ) 
  

 

 

    

 

 

    

 

 

  

Earnings before Income Taxes

    $ 38,211      $ 31,583      $ 29,015   
  

 

 

    

 

 

    

 

 

  

Depreciation and Amortization:

       

Aerospace

    $ 10,058      $ 6,043      $ 3,929   

Test Systems

      590        634        584   

Corporate

      411        228        430   
  

 

 

    

 

 

    

 

 

  

Total Depreciation and Amortization

    $ 11,059      $ 6,905      $ 4,943   
  

 

 

    

 

 

    

 

 

  

Identifiable Assets:

       

Aerospace

    $ 428,619      $ 177,168      $ 136,930   

Test Systems

      11,035        18,121        20,020   

Corporate

      51,617        16,700        17,955   
  

 

 

    

 

 

    

 

 

  

Total Assets

    $ 491,271      $ 211,989      $ 174,905   
  

 

 

    

 

 

    

 

 

  

Capital Expenditures:

       

Aerospace

    $ 6,711      $ 16,324      $ 14,195   

Test Systems

      61        396        86   

Corporate

      96        —          —     
  

 

 

    

 

 

    

 

 

  

Total Capital Expenditures

    $ 6,868      $ 16,720      $ 14,281   
  

 

 

    

 

 

    

 

 

  

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, 2013 and 2012, there was no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System 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 asset impairment loss of approximately $0.1 million. In the Aerospace segment, goodwill amounted to $101.0 million and $21.9 million at December 31, 2013 and 2012, respectively. In the Test Systems segment there was no goodwill as of December 31, 2013 and 2012.

 

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

 

     2013      2012      2011  
(In thousands)                     

North America

    $ 300,368       $ 233,245       $ 196,447   

Europe

      21,190         16,188         16,238   

Asia

      15,570         14,030         12,544   

South America

      1,851         1,937         2,678   

Other

      958         1,046         256   
  

 

 

     

 

 

     

 

 

  
   $ 339,937       $ 266,446       $ 228,163   
  

 

 

     

 

 

     

 

 

  

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

 

     2013      2012      2011  
(In thousands)                     

United States

    $ 59,803       $ 53,235       $ 40,871   

France

      10,771         —           —     

Canada

      326         302         251   
  

 

 

     

 

 

     

 

 

  
   $ 70,900       $ 53,537       $ 41,122   
  

 

 

     

 

 

     

 

 

  

Sales recorded by the Company’s foreign operations were $16.5 million in 2013, $14.2 million in 2012, and $13.1 million in 2011. Net income from these locations was $0.2 million in 2013, $1.0 million in 2012, and $0.9 million in 2011. Net assets held outside of the United States total $40.1 million at December 31, 2013 and $6.7 million at December 31, 2012. The exchange loss included in determining net income was $0.1 million in each of the years ending 2013, 2012 and 2011. Cumulative translation adjustments amounted to $1.3 million and $1.4 million at December 31, 2013 and 2012, respectively.

The Company has a significant concentration of business with two major customers, Panasonic Aviation Corporation and The Boeing Company. The following is information relating to the activity with those customers:

 

     2013     2012     2011  

Percent of Consolidated Revenue

       

Panasonic

      29.6 %      38.0 %      35.7 % 

Boeing

      14.5 %      5.5 %      4.4 % 

 

(In thousands)    2013      2012  

Accounts Receivable at December 31,

      

Panasonic

    $ 14,090       $ 17,412   

Boeing

      6,458         1,939   

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