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Business And Geographic Segments
 12 Months Ended
Dec. 31, 2011
Business And Geographic Segments [Abstract]  
Business And Geographic Segments

Note 2 - Business and geographic segments:

Our operating segments are defined as components of our operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance. We have three operating segments – Security Products, Furniture Components and Marine Components.

The Security Products segment, with a facility in South Carolina and a facility shared with Marine Components in Illinois, manufactures locking mechanisms and other security products for sale to the office furniture, transportation, postal, banking, vending and other industries.

The Furniture Components segment, with facilities in Canada and Taiwan, manufactures and distributes a complete line of precision ball bearing slides and ergonomic computer support systems for use in office furniture, computer-related equipment, tool storage cabinets, appliances and other applications.

Our Marine Components segment, with a facility in Wisconsin and a facility shared with Security Products in Illinois, manufactures and distributes marine instruments, hardware and accessories primarily for performance boats.

In July of 2011, we completed the acquisition of 100% of the stock of a Canadian ergonomic component products company for initial cash consideration of the equivalent of approximately $4.8 million, net of approximately $3,000 of cash acquired, with potential additional cash consideration ranging from nil to approximately $1.5 million payable in the first quarter of 2013, contingent upon the acquired business achieving certain acquired product line sales targets during 2012. The estimated fair value of the contingent consideration at December 31, 2011 was $705,000. The acquisition is intended to expand our Furniture Components ergonomics product line. We have included the results of operations and cash flows of the acquired business in our Consolidated Financial Statements subsequent to the acquisition date. The purchase price has been allocated among net assets acquired, consisting of (i) net working capital (receivable, inventory and payables) of $879,000, (ii) identifiable intangibles other than goodwill of $1.9 million, (iii) goodwill of $3.1 million and (iv) deferred income tax liabilities of $417,000. The tangible and intangible net assets acquired (other than goodwill) were valued based upon an estimate of the fair value of such net assets, with the remainder of the purchase price allocated to goodwill. 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.

The chief operating decision maker evaluates segment performance based on segment operating income, which is defined as income before income taxes, and interest expense, exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of business units and other long-lived assets outside the ordinary course of business). The accounting policies of the reportable operating segments are the same as those described in Note 1. Capital expenditures include additions to property and equipment, but exclude amounts attributable to business combinations.

Segment assets are comprised of all assets attributable to the reportable segments. Corporate assets are not attributable to the operating segments and consist primarily of cash, cash equivalents, notes receivable and assets held for sale. See Note 10. For geographic information, net sales are attributable to the place of manufacture (point of origin) and the location of the customer (point of destination); property and equipment are attributable to their physical location. At December 31, 2010 and 2011, the net assets of non-U.S. subsidiaries included in consolidated net assets approximated $30.4 million and $36.8 million, respectively. Intersegment sales are not material.

 

 

                         
     Years ended December 31,  
     2009     2010     2011  
     (In thousands)  

Net sales:

                         

Security Products

    $ 61,429      $ 68,006      $ 71,396   

Furniture Components

      48,212        59,125        59,021   

Marine Components

      6,484        8,133        8,418   
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 116,125      $ 135,264      $ 138,835   
    

 

 

    

 

 

    

 

 

  
       

Operating income (loss):

                         

Security Products

    $ 9,714      $ 13,066      $ 14,361   

Furniture Components

      (4,693 ) (a)      3,447  (a)      9,059  (a) 

Marine Components

      (3,046 )      (1,432 )      (1,223 ) 

Corporate

      (6,011 ) (b)      (5,750 ) (b)      (6,724 ) (b) 
    

 

 

    

 

 

    

 

 

  
       

Total operating income (loss)

      (4,036 )      9,331        15,473   
       

Other non-operating income, net

      45        379        424   

Interest expense

      (1,060 )      (914 )      (804 ) 
    

 

 

    

 

 

    

 

 

  
       

Income (loss) before income taxes

    $ (5,051 )    $ 8,796      $ 15,093   
    

 

 

    

 

 

    

 

 

  
       

Depreciation and amortization:

                         

Security Products

    $ 3,560      $ 3,383      $ 2,976   

Furniture Components

      3,475        3,191        2,853   

Marine Components

      1,170        1,099        907   

Corporate

      4        3        42   
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 8,209      $ 7,676      $ 6,778   
    

 

 

    

 

 

    

 

 

  
       

Capital expenditures:

                         

Security Products

    $ 1,361      $ 771      $ 1,804   

Furniture Components

      1,010        1,096        1,346   

Marine Components

      51        271        187   

Corporate

      -          141        36   
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 2,422      $ 2,279      $ 3,373   
    

 

 

    

 

 

    

 

 

  

(a) Furniture Components operating income includes the following:

  •  

a 2011 patent litigation settlement gain of $7.5 million as discussed in Note 13;

  •  

facility consolidation costs of approximately $177,000 and $2.0 million at December 31, 2010 and 2011, respectively, as discussed in Note 9; and

  •  

patent litigation expenses of $4.6 million, $2.4 million and $227,000 at December 31, 2009, 2010 and 2011, respectively. See Note 13.

(b) Corporate operating expenses include write-downs to our assets held for sale of $717,000 in 2009, $500,000 in 2010 and $1.1 million in 2011. See Note 10.

 

 

                         
     Years ended December 31,  
     2009     2010     2011  
     (In thousands)  
       

Net sales:

                         

Point of origin:

                         

United States

    $ 84,786      $ 95,979      $ 85,400   

Canada

      29,065        36,122        51,450   

Taiwan

      5,811        8,820        9,344   

Eliminations

      (3,537 )      (5,657 )      (7,359 ) 
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 116,125      $ 135,264      $ 138,835   
    

 

 

    

 

 

    

 

 

  
       

Point of destination:

                         

United States

    $ 95,974      $ 111,848      $ 117,217   

Canada

      10,445        12,933        12,072   

Other

      9,706        10,483        9,546   
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 116,125      $ 135,264      $ 138,835   
    

 

 

    

 

 

    

 

 

  
       

Total assets:

                         

Security Products

    $ 70,938      $ 68,929      $ 69,185   

Furniture Components

      54,512        52,761        50,174   

Marine Components

      12,118        11,337        10,531   

Corporate and eliminations

      16,479        27,045        11,636   
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 154,047      $ 160,072      $ 141,526   
    

 

 

    

 

 

    

 

 

  
       

Net property and equipment:

                         

United States

    $ 47,086      $ 42,570      $ 33,704   

Canada

      9,224        9,444        9,681   

Taiwan

      7,326        7,889        7,742   
    

 

 

    

 

 

    

 

 

  
       

Total

    $ 63,636      $ 59,903      $ 51,127