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Note D - Business Segments
 9 Months Ended
Sep. 28, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE D – BUSINESS SEGMENTS 

The Company operates in three business segments. The Company identifies its segments based on the Company's organization structure, which is primarily by principal products and is the way in which the Company’s Chief Operating Decision Maker (CODM), the Company’s CEO, makes operating decisions, assesses financial performance, and allocates resources. The principal product groups are Housewares/Small Appliances, Defense, and Safety. Sales for all segments are primarily to customers in North America.

 

The Housewares/Small Appliances segment designs, markets, and distributes housewares and small appliances. The housewares/small appliance products are sold primarily in the United States and Canada directly to retail outlets and also through independent distributors. The Company primarily sources its Housewares/Small Appliances products from non-affiliated suppliers located in the Orient. Sales are seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to the holiday season.

 

The Defense segment was started in 2001 with the acquisition of AMTEC Corporation, which manufactures precision mechanical and electromechanical assemblies for the U.S. Government and prime contractors. During 2005, and again during 2010, AMTEC Corporation was one of two prime contractors selected by the Army to supply all requirements for the 40mm family of practice and tactical ammunition cartridges for a period of five years. In 2016, AMTEC was awarded a one-year contract, and in 2017 and 2022, it was awarded third and fourth five-year contracts, respectively as the sole prime contractor. AMTEC's manufacturing plant is located in Janesville, Wisconsin. Since the inception of the Defense segment in 2001, the Company has expanded the segment by making several strategic business acquisitions, and has additional facilities located in East Camden, Arkansas; Antigo, Wisconsin; Clear Lake, South Dakota, and Marshall, Texas. During 2003, the segment was expanded with the acquisition of Spectra Technologies, LLC of East Camden, Arkansas. This facility performs Load, Assemble, and Pack (LAP) operations on ordnance-related products for the U.S. Government and prime contractors. During 2006, the segment was expanded again with the acquisition of certain assets of Amron, LLC of Antigo, Wisconsin, which primarily manufactures cartridge cases used in medium caliber (20-50mm) ammunition. During 2014, the Company continued the expansion of the Defense segment with the purchase of substantially all of the assets of Chemring Energetic Devices, Inc. located in Clear Lake, South Dakota, and all of the real property owned by Technical Ordnance Realty, LLC. The Clear Lake facility manufactures detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. During 2022, the Company again expanded the Defense segment by acquiring the equity interests of Woodlawn Manufacturing, Ltd. Woodlawn Manufacturing, Ltd, is a high volume manufacturer of precision metal parts and assemblies primarily for the defense and aerospace industry. The Defense segment’s collection of facilities enables the Company to deliver in virtually all aspects of the manufacture of medium caliber training and tactical rounds. Those aspects include the fuze, the detonator, the metal parts (including the cartridge case), and load, assemble and pack of the final round.

 

The Safety segment was started in 2019 with the acquisition of the assets of OneEvent Technologies, Inc., a business located in Mount Horeb, Wisconsin which focused on protection for buildings, homes, assets, and occupants using a cloud-based learning and an analytics engine that utilizes data from a series of sensing devices to predict, alert, and prevent. Upon purchase, it was combined with Rusoh, Inc. which designed and marketed fire extinguishers. Prior to 2019, Rusoh Inc. had been included in the Company’s Housewares/Small Appliances segment.  On July 29, 2022, certain assets were acquired and liabilities were assumed of Knox Safety, Inc., a startup business formed in 2019 with operations in Illinois and North Carolina. Knox Safety designed and sold carbon monoxide detectors for residential use. Subsequent to the acquisition, the acquiring entity legally adopted the corporate name Rely Innovations, Inc. and was added to the segment. Since its acquisition, the Company has introduced smoke detectors and fire extinguishers under the Rely name.  To focus the direction of the segment’s business, the Company divested the stock of Rusoh, Inc. on November 14, 2023 and certain assets of OneEvent related to its refrigeration monitoring business on July 31, 2025. The OneEvent intellectual property, however, has been retained. 

 

The Company manages and assesses the performance of its reportable segments by their gross profit and operating profit. As part of the CODM’s review of segment level performance, the CODM reviews these measures of income of each reportable segment, which drives the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. The significant segment expense categories included in the table below augment the Company’s understanding of operating results.

 

In the following summary, operating profit represents earnings before other income and income taxes. The Company's segments operate discretely from each other with no shared owned or leased manufacturing facilities. Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented.

 

 

  

(in thousands)

 
  

Housewares / Small Appliances

  

Defense

  

Safety

  

Total

 

Three months ended September 28, 2025

                

External net sales

 $22,542  $92,588  $333  $115,463 

Cost of sales

  22,237   75,727   1,487   99,451 

Gross profit (loss)

  305   16,861   (1,154)  16,012 

Selling and general expenses (1)

  3,367   4,534   636   8,537 

Depreciation and amortization

  209   803   51   1,063 

Operating profit (loss)

  (3,271)  11,524   (1,841)  6,412 

Total assets

  110,529   386,654   6,646   503,829 

Capital expenditures

  21,470   324   13   21,807 
                 

Three months ended September 29, 2024

                

External net sales

 $24,816  $66,794  $213  $91,823 

Cost of sales

  19,819   53,347   1,434   74,600 

Gross profit (loss)

  4,997   13,447   (1,221)  17,223 

Selling and general expenses (1)

  2,998   2,723   1,087   6,808 

Depreciation and amortization

  239   912   41   1,192 

Operating profit (loss)

  1,760   9,812   (2,349)  9,223 

Total assets

  118,773   303,614   6,515   428,902 

Capital expenditures

  35   2,765   26   2,826 

 

  

(in thousands)

 
  

Housewares / Small Appliances

  

Defense

  

Safety

  

Total

 

Nine Months Ended September 28, 2025

                

External net sales

 $64,814  $273,339  $1,398  $339,551 

Cost of sales

  62,569   219,648   4,665   286,882 

Gross profit (loss)

  2,245   53,691   (3,267)  52,669 

Selling and general expenses (1)

  9,832   11,887   2,924   24,643 

Depreciation and amortization

  1,081   2,536   130   3,747 

Operating profit (loss)

  (11,369)  39,268   (6,321)  21,578 

Total assets

  110,529   386,654   6,646   503,829 

Capital expenditures

  21,549   1,269   36   22,854 
                 

Nine Months Ended September 29, 2024

                

External net sales

 $64,750  $187,960  $826  $253,536 

Cost of sales

  53,184   149,810   4,767   207,761 

Gross profit (loss)

  11,566   38,150   (3,941)  45,775 

Selling and general expenses (1)

  7,710   8,718   3,609   20,037 

Depreciation and amortization

  1,490   2,267   120   3,877 

Operating profit (loss)

  2,366   27,165   (7,670)  21,861 

Total assets

  118,773   303,614   6,515   428,902 

Capital expenditures

  114   3,710   49   3,873 
                 

(1) Excludes depreciation and amortization