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Note 10 - Business Segment Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 10 - Business Segment Information

 

We structure our operations primarily around the products we sell and report our financial results in following two operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes Lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design.

 

Our Chief Operating Decision Maker (“CODM”) is Mike Manna, President & Chief Executive Officer.  Both of our business segments are regularly reviewed by the CODM through weekly revenue, gross margin and consolidated financial forecast updates, bi-weekly business and financial reviews to assess business performance, top priorities, utilization of resources and to regularly communicate with segment management, who are part of the CODM’s executive leadership team, and monthly meetings with the executive leadership team.  In his role as CODM, Mr. Manna is deeply involved in business operations through daily updates by the segment management and ongoing financial, revenue and operations discussions.

 

The primary financial measures used by the CODM to monitor and evaluate the performance of the operating segments is segment contribution, as defined by gross profit less direct research and development (“R&D”) and direct selling, general and administrative (“SG&A”) expenses. This metric is used as a consistent benchmark for comparison across reporting periods.

 

Corporate general and administrative (“G&A”) expenses, including costs associated with our acquisitions, include corporate functions including board of directors, executive officers, accounting & finance, human resources, legal, information technology and their related functional expenses.  These costs are not directly allocable to the business segments.

 

2024:

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenue

   $ 144,081     $ 20,375     $ -     $ 164,456  
Cost of products sold     (107,764 )     (14,378 )     -       (122,142 )

Gross profit

     36,317       5,997       -       42,314  

Direct R&D and SG&A expenses

     (17,320 )     (4,806 )     -       (22,126 )

Segment contribution

     18,997       1,191       -       20,188  

Corporate G&A expenses

     -       -       (10,223 )     (10,223 )

Operating profit 

                             9,965  

Other expense, net

                     (1,664 )     (1,664 )

Income tax provision

                     (1,892 )     (1,892 )

Non-controlling interest

                     (97 )     (97 )

Net income attributable to Ultralife

                           $ 6,312  
                                 

Total assets

   $ 173,954     $ 26,876     $ 19,621     $ 220,451  

Capital expenditures

   $ 1,261     $ 513     $ 158     $ 1,932  

Goodwill

   $ 33,513     $ 11,493     $ -     $ 45,006  

Depreciation and amortization of intangible assets

   $ 3,676     $ 237     $ 244     $ 4,157  

Stock-based compensation

   $ 383     $ 96     $ 219     $ 698  

 

2023:

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenue

   $ 129,953     $ 28,691     $ -     $ 158,644  
Cost of products sold     (99,178 )     (20,266 )     -       (119,444 )

Gross profit

     30,775       8,425       -       39,200  

Direct R&D and SG&A expenses

     (16,499 )     (4,467 )     -       (20,966 )

Segment contribution

     14,276       3,958       -       18,234  

Corporate G&A expenses

     -       -       (8,759 )     (8,759 )

Operating profit 

                             9,475  

Other expense, net

                     (358 )     (358 )

Income tax provision

                     (1,951 )     (1,951 )

Non-controlling interest

                     31       31  

Net income attributable to Ultralife

                           $ 7,197  
                                 

Total assets

   $ 124,411     $ 28,873     $ 24,992     $ 178,276  

Capital expenditures

   $ 2,064     $ 118     $ 370     $ 2,552  

Goodwill

   $ 26,078     $ 11,493     $ -     $ 37,571  

Depreciation and amortization of intangible assets

   $ 3,336     $ 183     $ 392     $ 3,911  

Stock-based compensation

   $ 336     $ 74     $ 118     $ 528  

 

 

Long-lived assets (comprised of property, plant and equipment; goodwill; and other intangible assets) held outside the U.S., principally in Canada, United Kingdom and China, were $22,306 and $23,709 as of December 31, 2024 and 2023, respectively.

 

 

The following tables disaggregate our business segment revenues by major source and geography.

 

Commercial and Government/Defense Revenue Information:

 

Year ended December 31, 2024:

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 144,081     $ 102,082     $ 41,999  

Communications Systems

     20,375       -       20,375  

Total

   $ 164,456     $ 102,082     $ 62,374  
              62 %     38 %

 

Year ended December 31, 2023:

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 129,953     $ 100,842     $ 29,111  

Communications Systems

     28,691       -       28,691  

Total

   $ 158,644     $ 100,842     $ 57,802  
              64 %     36 %

 

U.S. and Non-U.S. Revenue Information1:

 

Year ended December 31, 2024:

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 144,081     $ 82,227     $ 61,854  

Communications Systems

     20,375       14,813       5,562  

Total

   $ 164,456     $ 97,040     $ 67,416  
              59 %     41 %

 

Year ended December 31, 2023:

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 129,953     $ 64,120     $ 65,833  

Communications Systems

     28,691       17,276       11,415  

Total

   $ 158,644     $ 81,396     $ 77,248  
              51 %     49 %

 

1 Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects.