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Note 17 - Industry Segment Information
 12 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

 

17. Industry Segment Information

 

During the third quarter of 2020, the Company announced the divestiture of its Refrigerated Solutions Group (an accumulation of the Master-Bilt and NorLake operating segments) consistent with its strategy to focus financial assets and managerial resources on higher growth and operating margin businesses. The divestiture of the Refrigerated Solutions Group was completed and consideration was exchanged in April of fiscal year 2020. Subsequent to the disposition of the Refrigeration Solutions Group, the Company reviewed the quantitative and qualitative characteristics of its remaining businesses and determined that it has seven operating segments that aggregate to five reportable segments.  The reportable segments are organized around the types of products sold:

 

•  Electronics – manufacturing and selling of electronic components for applications throughout the end-user market spectrum;

•  Engraving – provides mold texturizing, slush molding tools, project management and design services, roll engraving, hygiene product tooling, low observation vents for stealth aircraft, and process machinery for a number of industries;

•  Scientific – specialty temperature-controlled equipment for the medical, scientific, pharmaceutical, biotech and industrial markets;

•  Engineering Technologies – provides net and near net formed single-source customized solutions in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets.

•  Specialty Solutions – an aggregation of three operating segments that manufacture and sell refrigerated, heated and dry merchandizing display cases, custom fluid pump solutions, and single and double acting telescopic and piston rod hydraulic cylinders.

 

All periods presented have been revised accordingly to reflect the new reportable segments.

 

Net sales include only transactions with unaffiliated customers and include no significant intersegment or export sales.  Operating income by segment and geographic area excludes general corporate and interest expenses.  Assets of the Corporate segment consist primarily of cash, office equipment, and other non-current assets.

 

Given the nature of our corporate expenses, management concluded that it would not presently be appropriate to allocate the expenses associated with corporate activities to our operating segments.  These corporate expenses include the costs for the corporate headquarters, salaries and wages for the personnel in corporate, professional fees related to corporate matters and compliance efforts, stock-based compensation and post-retirement benefits related to our corporate executives, officers and directors, and other compliance related costs.  The Company has a process to allocate and recharge certain direct costs to the operating segments when such direct costs are administered and paid at corporate.  Such direct expenses that are recharged on an intercompany basis each month include such costs as insurance, workers’ compensation programs, audit fees and pension expense.  The accounting policies applied by the reportable segments are the same as those described in the Summary of Accounting Policies footnote to the consolidated financial statements.  There are no differences in accounting policies which would be necessary for an understanding of the reported segment information.

 

 

Industry Segments

                        

(in thousands)

 

Net Sales

  

Depreciation and Amortization

 
  

2020

  

2019

  

2018

  

2020

  

2019

  

2018

 
Electronics $185,294  $204,073  $196,291  $12,339  $11,751  $10,564 
Engraving  143,736   149,693   136,275   10,595   8,232   5,483 
Scientific  57,523   57,621   52,086   1,594   1,590   1,258 
Engineering Technologies  104,047   105,270   90,781   6,000   5,963   6,006 
Specialty Solutions  113,935   123,274   120,082   1,446   1,350   1,356 
Corporate and Other  -   -   -   320   402   400 

Total

 $604,535  $639,931  $595,515  $32,294  $29,288  $25,067 

 

   

Income (Loss) From Operations

    

Capital Expenditures (1)

  
   

2020

    

2019

    

2018

    

2020

    

2019

    

2018

  
Electronics   $ 29,749     $ 41,227     $ 45,501     $ 5,334     $ 12,646     $ 8,487  
Engraving     20,493       23,996       29,618       10,618       13,868       9,339  
Scientific     13,740       13,676       11,436       360       77       313  
Engineering Technologies     14,027       11,169       6,506       1,170       3,857       3,581  
Specialty Solutions     18,546       19,000       18,688       1,154       2,108       1,918  
Restructuring charge     (4,669 )     (1,289 )     (3,428 )     -       -       -  
Acquisition-related costs     (1,759 )     (3,075 )     (3,749 )     -       -       -  
Other operating income (expense), net     -       (500 )     -       -       -       -  
Corporate     (29,599 )     (24,728 )     (26,430 )     668       57       258  

Total

   $ 60,528     $ 79,476     $ 78,142     $ 19,304     $ 32,613     $ 23,896  
Interest expense     (7,475 )     (10,760 )     (8,029 )                        
Other, net     1,021       (1,742 )     (1,720 )                        

Income from continuing operations before income taxes

   $ 54,074     $ 66,974     $ 68,393                          

 

  (1) Includes capital expenditures in accounts payable of $3.2 million, $0.9 million, and $0.4 million at June 30, 2020, 2019, and 2018 respectively.

 

   

Goodwill

    

Identifiable Assets

  
   

2020

    

2019

    

2020

    

2019

  
Electronics   $ 131,582     $ 131,317     $ 324,725     $ 332,326  
Engraving     76,742       79,392       257,104       233,569  
Scientific     15,454       15,454       90,595       63,657  
Engineering Technologies     43,685       43,890       147,797       149,628  
Specialty Solutions     3,305       3,305       52,528       64,492  
Corporate & Other     453       485       55,193       18,578  
Discontinued Operations     -       -       2,936       59,639  

Total

   $ 271,221     $ 273,843     $ 930,878     $ 921,889  

 

Net sales (2)

  

2020

    

2019

    

2018

  
United States   $ 364,188     $ 370,235     $ 321,284  
Asia Pacific     98,665       108,667       108,569  
EMEA (3)     128,037       144,636       149,249  
Other Americas     13,645       16,393       16,413  

Total

   $ 604,535     $ 639,931     $ 595,515  

 

 

(2)

Net sales were identified based on geographic location where our products and services were initiated.
 

(3)

EMEA consists primarily of Europe, Middle East and S. Africa.

 

Long-lived assets

  

2020

    

2019

    

2018

  
United States   $ 69,548     $ 67,337     $ 63,677  
Asia Pacific     32,057       35,033       30,911  
EMEA (4)     26,057       27,160       25,709  
Other Americas     4,871       4,709       3,064  

Total

   $ 132,533     $ 134,239     $ 123,361  

 

 

(4)

EMEA consists primarily of Europe, Middle East and S. Africa.