Annual report pursuant to Section 13 and 15(d)

Segments

v2.4.0.6
Segments
 12 Months Ended
Dec. 31, 2012
Segments [Abstract]  
SEGMENTS

NOTE 18 — SEGMENTS

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

 

                         
(In thousands)   2012     2011     2010  

Sales:

                        

Aerospace

   $ 254,955     $ 213,874     $ 179,586  

Test Systems

     11,491       14,289       16,168  
   

 

 

    

 

 

    

 

 

  

Total Sales

   $ 266,446     $ 228,163     $ 195,754  
   

 

 

    

 

 

    

 

 

  

Operating Profit (Loss) and Margins:

                        

Aerospace

   $ 44,137     $ 40,400     $ 30,112  
      17.3 %      18.9 %      16.8 % 

Test Systems

     (4,985 )      (4,760 )      (1,806 ) 
      (43.4 )%      (33.3 )%      (11.2 )% 
   

 

 

    

 

 

    

 

 

  

Total Operating Profit

     39,152       35,640       28,306  
   

 

 

    

 

 

    

 

 

  
      14.7 %      15.6 %      14.5 % 

Deductions from Operating Profit:

                        

Interest Expense

     (1,042 )      (1,806 )      (2,551 ) 

Corporate and Other Expenses, Net

     (6,527 )      (4,819 )      (3,926 ) 
   

 

 

    

 

 

    

 

 

  

Earnings before Income Taxes

   $ 31,583     $ 29,015     $ 21,829  
   

 

 

    

 

 

    

 

 

  

Depreciation and Amortization:

                        

Aerospace

   $ 6,043     $ 3,929     $ 3,695  

Test Systems

     634       584       659  

Corporate

     228       430       527  
   

 

 

    

 

 

    

 

 

  

Total Depreciation and Amortization

   $ 6,905     $ 4,943     $ 4,881  
   

 

 

    

 

 

    

 

 

  

Identifiable Assets:

                        

Aerospace

   $ 177,168     $ 136,930     $ 96,787  

Test Systems

     18,121       20,020       24,785  

Corporate

     16,700       17,955       29,316  
   

 

 

    

 

 

    

 

 

  

Total Assets

   $ 211,989     $ 174,905     $ 150,888  
   

 

 

    

 

 

    

 

 

  

Capital Expenditures:

                        

Aerospace

   $ 16,324     $ 14,195     $ 2,438  

Test Systems

     396       86       619  

Corporate

     —         —         511  
   

 

 

    

 

 

    

 

 

  

Total Capital Expenditures

   $ 16,720     $ 14,281     $ 3,568  
   

 

 

    

 

 

    

 

 

  

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, 2012 and 2010, there was no goodwill or purchased intangible 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 $21.9 million and $17.2 million at December 31, 2012 and 2011, respectively. In the Test Systems segment there was no goodwill as of December 31, 2012 and 2011.

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

 

                         
(In thousands)   2012     2011     2010  

North America

   $ 233,245     $ 196,447     $ 168,556  

Europe

     16,188       16,238       11,294  

Asia

     14,030       12,544       13,026  

South America

     1,937       2,678       2,457  

Other

     1,046       256       421  
   

 

 

    

 

 

    

 

 

  
    $ 266,446     $ 228,163     $ 195,754  
   

 

 

    

 

 

    

 

 

  

 

Sales recorded by the Company’s Canadian operations were $13.0 million in 2012, $12.2 million in 2011 and $9.1 million in 2010. Net income from this location was $1.0 million in 2012, $0.9 million in 2011 and $0.1 million in 2010. Net assets held outside of the United States total $6.7 million at December 31, 2012 and $6.6 million at December 31, 2011. The exchange loss included in determining net income was $0.1 million in each of the years ending 2012, 2011 and 2010. Cumulative translation adjustments amounted to $1.4 million and $1.2 million at December 31, 2012 and 2011, 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. The following is information relating to the activity with those customers:

 

                         
    2012     2011     2010  

Percent of Consolidated Revenue

                        

Panasonic

     38.0 %      35.7 %      26.5 % 

U.S. Government

     7.2 %      9.0 %      15.0 % 

 

                 
     
(In thousands)   2012     2011  

Accounts Receivable ad December 31,

                

Panasonic

   $ 17,412     $ 9,878  

U.S. Government

     2,556       3,866  

Sales to Panasonic are all in the Aerospace segment. Sales to the US Government occur in both segments. The Company’s property, plant and equipment are all located in North America.