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Business Segment Information
 6 Months Ended
Jun. 30, 2011
Business Segment Information  
Business Segment Information

Note 2 – Business segment information:

 

     Three months ended
June 30,		     Six months ended
June 30,		  
     2010     2011     2010     2011  
     (In thousands)  

Net sales:

         

Security Products

    $ 17,355      $ 18,396      $ 34,016      $ 36,185   

Furniture Components

      14,271        14,146        28,386        29,041   

Marine Components

      2,759        2,699        4,782        4,792   
                                

Total net sales

    $ 34,385      $ 35,241      $ 67,184      $ 70,018   
                                

Operating income:

         

Security Products

    $ 3,199      $ 3,788      $ 6,581      $ 7,361   

Furniture Components *

      1,078        765        1,085        7,640   

Marine Components

      (78 )      (57 )      (447 )      (412 ) 

Corporate operating expense

      (1,261 )      (1,358 )      (2,545 )      (2,691 ) 
                                

Total operating income

      2,938        3,138        4,674        11,898   

Other non-operating income, net

      80        128        102        257   

Interest expense

      (223 )      (187 )      (420 )      (399 ) 
                                

Income before income taxes

    $ 2,795      $ 3,079      $ 4,356      $ 11,756   
                                

Intersegment sales are not material.

 

* Furniture Components operating income includes the following:

 

  •  

a patent litigation settlement gain of $7.5 million in the first quarter of 2011 discussed in Note 10;

 

  •  

facility consolidation costs of approximately $795,000 and $1.8 million for the second quarter and first six months of 2011, respectively, as discussed in Note 7; and

 

  •  

patent litigation expenses of $373,000 and $1.9 million in the second quarter and first six months of 2010 compared to nil and $227,000 in the same comparative periods for 2011.

In July of 2011, we completed the acquisition of an ergonomic component products business for initial cash consideration of approximately $5 million, with additional cash consideration of up to approximately $1.5 million payable in the first quarter of 2013 contingent upon the acquired business achieving certain specified financial targets. The acquisition is intended to expand our Furniture Components ergonomics product line. The business had net sales of $4.2 million in 2010 and the pro-forma effect to us, assuming this acquisition had been completed as of January 1, 2011, is not material.