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Business Segment Information
 9 Months Ended
Sep. 30, 2012
Business Segment Information [Abstract]  
Business Segment Information
15. Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines and presented in three reportable segments. The results of the segments are reviewed through to the “Income from operations” line on the Statements of Income. The accounting policies of the segments are the same as those in the consolidated financial statements.

Engineered Equipment Technology and Parts Group (“EET&P Group”)

Our EET&P Group, located in the United States, Canada, Brazil, China, and India, is comprised of CECO Filters, Busch International, CECO Abatement, Effox, Fisher-Klosterman, Flextor and A.V.C. We enable our customers to meet Best Available Control Technology requirements and compliance targets for fumes, volatile organic compounds, process, and industrial odors. Our services eliminate toxic emission fumes and volatile organic compounds from large-scale industrial processes. We have a presence in the chemical processing, ethanol, paint booth emissions, wastewater treatment, and wood products industries.

 

Contracting/Services Group (“C/S Group”)

Our C/S Group is comprised of the contracting/services operations of our Kirk & Blum divisions. We provide custom metal fabrication services at our Kirk & Blum Columbia, Tennessee and Louisville, Kentucky locations. These facilities are used to fabricate parts, subassemblies, and customized products for air pollution and non-air pollution applications from sheet, plate, and structurals.

Component Parts Group (“CP Group”)

We market component parts for industrial air systems to contractors, distributors and dealers throughout the United States.

Summary of Business by Segment

 

                                 
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
(dollars in thousands)   2012     2011     2012     2011  

Net Sales

                                

Engineered Equipment Technology and Parts Group

                                

United States

   $ 18,775     $ 18,073     $ 57,202     $ 60,179  

Canada

     1,865       1,490       5,820       5,852  

China

     2,166       2,806       5,223       6,475  

Brazil

             864       121       1,851  

India

     173       104       173       229  
   

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal (a)

     22,979       23,337       68,539       74,586  

Contracting / Services Group (a)

     6,166       7,284       20,577       22,554  

Component Parts Group (a)

     5,524       5,282       16,804       14,585  

Corporate and other (a) (b)

     —         253       19       880  

Eliminations

     (1,567 )      (3,209 )      (5,219 )      (11,165 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 33,102     $ 32,947     $ 100,720     $ 101,440  
   

 

 

    

 

 

    

 

 

    

 

 

  
     
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
(dollars in thousands)   2012     2011     2012     2011  

Income (loss) from Operations

                                

Engineered Equipment Technology and Parts Group (a)

   $ 3,946     $ 3,294     $ 11,110     $ 8,303  

Contracting / Services Group (a)

     836       903       2,520       2,281  

Component Parts Group (a)

     966       820       3,378       2,674  

Corporate and other (a) (b)

     (1,455 )      (1,613 )      (4,667 )      (4,555 ) 

Eliminations

     (42 )      (94 )      (58 )      (133 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

   $ 4,251     $ 3,310     $ 12,283     $ 8,570  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) The amounts presented at the reportable business segment level include both external and intersegment net sales and operating income(loss), as applicable. See following tables in this Note 15 under “Intra-segment and Inter-segment Revenues.”
(b) Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses. Also included are the operations of our Engineering Group, which are not significant to the overall operations of the Company and were sold in November 2011.

 

 

                                 
    Three Months Ended
September  30,		     Nine Months Ended
September 30,		  
(dollars in thousands)   2012     2011     2012     2011  

Property and Equipment Additions

                                

Engineered Equipment Technology and Parts Group

   $ 57     $ 78     $ 109     $ 144  

Contracting / Services Group

     14       63       44       72  

Component Parts Group

     21       236       59       268  

Corporate and other (c)

     10       21       22       170  
   

 

 

    

 

 

    

 

 

    

 

 

  

Property and equipment additions

   $ 102     $ 398     $ 234     $ 654  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(c) Includes Corporate and Engineering Group property and equipment additions. The Engineering Group was sold in November 2011.

 

                                 
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
(dollars in thousands)   2012     2011     2012     2011  

Depreciation and Amortization

                                

Engineered Equipment Technology and Parts Group

   $ 146     $ 174       445     $ 618  

Contracting / Services Group

     53       59       163       173  

Component Parts Group

     48       49       144       132  

Corporate and other (d)

     53       58       158       163  
   

 

 

    

 

 

    

 

 

    

 

 

  

Depreciation and Amortization

   $ 300     $ 340       910     $ 1,086  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(d) Includes Corporate and Engineering Group depreciation and amortization. The Engineering Group was sold in November 2011.

 

                 
(dollars in thousands)   September 30,
2012		     December 31,
2011		  

Identifiable Assets

                

Engineered Equipment Technology and Parts Group

   $ 48,498     $ 51,480  

Contracting / Services Group

     26,837       18,588  

Component Parts Group

     6,078       5,577  

Corporate and other (e)

     8,568       9,705  

Eliminations (f)

     (5,526 )      (6,005 ) 
   

 

 

    

 

 

  

Identifiable Assets (g)

   $ 84,455     $ 79,345  
   

 

 

    

 

 

  

 

(e) Includes Corporate and Engineering Group identifiable assets. The Engineering Group was sold in November 2011. Corporate assets primarily consists of cash, income tax related assets, and intercompany note receivable.
(f) Includes eliminations for intercompany trade accounts receivable, intercompany job revenue, and intercompany note receivable.
(g) The Company has revised its business segment reporting primarily to exclude nontrade accounts receivable in order to better reflect the manner in which such assets are reviewed by management.
                 

(dollars in thousands)

   September 30,
2012		     December 31,
2011		  

Goodwill

                

Engineered Equipment Technology and Parts Group

   $ 14,777     $ 14,661  

Intra-segment and Inter-segment Revenues

The Company has multiple divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

 

                                                         
    Three months ended September 30, 2012  
(dollars in thousands)   Total
sales		     Less intra-
segment
sales		                

Net sales to

outside

  
      Less inter-segment sales    
      EET&P     C/S     CP     Corp. (a)     customers  

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 18,775     $ (334 )    $ —       $ (16 )    $ —       $ —       $ 18,425  

Canada

     1,865       (10 )      —         —         —         —         1,855  

China

     2,166       (379 )      —         —         —         —         1,787  

Brazil

     —         —         —         —         —         —         —    

India

     173       —         —         —         —         —         173  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     22,979       (723 )      —         (16 )      —          —          22,240  

Contracting / Services Group

     6,166       (20 )      (502 )      —         —         —         5,644  

Component Parts Group

     5,524       (89 )      (3 )      (194 )      —         —         5,238  

Corporate and other (a)

     —         —         —         —         —         (20 )      (20 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 34,669     $ (832 )    $ (505 )    $ (210 )    $ —       $ (20 )    $ 33,102  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes adjustment for revenue on intercompany jobs.

 

                                                         
    Three months ended September 30, 2011  
    Total
sales		     Less intra-
segment
sales		                             Net sales  to
outside
customers		  
        Less inter-segment sales    
(dollars in thousands)       EET&P     C/S     CP     Corp. (a)    

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 18,073     $ (669 )    $ —       $ (279 )    $ —       $ —       $ 17,125  

Canada

     1,490       —         —         —         —         —         1,490  

China

     2,806       (1,272 )      —         —         —         —         1,534  

Brazil

     864       —         —         —         —         —         864  

India

     104       —         —         —         —         —         104  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     23,337       (1,941 )      —         (279 )      —         —         21,117  

Contracting / Services Group

     7,284       (13 )      (536 )      —         (42 )      (8 )      6,685  

Component Parts Group

     5,282       (71 )      (46 )      (207 )      —         —         4,958  

Corporate and other (a)

     253       —         —         (3 )      —         (63 )      187  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 36,156     $ (2,025 )    $ (582 )    $ (489 )    $ (42 )    $ (71 )    $ 32,947  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs. The Engineering Group was sold in November 2011.

 

                                                         
    Nine months ended September 30, 2012  
    Total
Sales		     Less intra-
segment
sales		                            

Net sales to

outside

  
        Less inter-segment sales    
(dollars in thousands)       EET&P     C/S     CP     Corp. (a)     customers  

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 57,202     $ (687 )    $ —       $ (626 )    $ —       $ —       $ 55,889  

Canada

     5,820       63       —         —         —         —         5,883  

China

     5,223       (1,934 )      —         —         —         —         3,289  

Brazil

     121       —         —         —         —         —         121  

India

     173       —         —         —         —         —         173  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     68,539       (2,558 )      —         (626 )      —         —         65,355  

Contracting / Services Group

     20,577       (68 )      (1,037 )      —         —         —         19,472  

Component Parts Group

     16,804       (236 )      (21 )      (693 )      —         —         15,854  

Corporate and other (a)

     19       —         —         (10 )      —         30       39  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 105,939     $ (2,862 )    $ (1,058 )    $ (1,329 )    $ —       $ 30     $ 100,720  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes adjustment for revenue on intercompany jobs.
                                                         
    Nine months ended September 30, 2011  

(dollars in thousands)

   Total
sales		     Less intra-
segment
Sales		                             Net sales  to
outside
Customers		  
      Less inter-segment sales    
      EET&P     C/S     CP     Corp. (a)    

Net Sales

                                                        

Engineered Equipment Technology and Parts Group

                                                        

United States

   $ 60,179     $ (3,495 )    $ —       $ (2,754 )    $ —       $ —       $ 53,930  

Canada

     5,852       —         —         —         —         —         5,852  

China

     6,475       (1,798 )      —         —         —         —         4,677  

Brazil

     1,851       —         —         —         —         —         1,851  

India

     229       —         —         —         —         —         229  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

     74,586       (5,293 )      —         (2,754 )      —         —           66,539  

Contracting / Services Group

     22,554       (82 )      (1,761 )      —         (42 )      (53 )      20,616  

Component Parts Group

     14,585       (336 )      (123 )      (639 )      —         —         13,487  

Corporate and other (a)

     880       —         —         (42 )      —         (40 )      798  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

   $ 112,605     $ (5,711 )    $ (1,884 )    $ (3,435 )    $ (42 )    $ (93 )    $ 101,440  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Includes the operations of our Engineering Group, which is not significant to the overall operations of the Company, and adjustment for revenue on intercompany jobs. The Engineering Group was sold in November 2011.