XML 27 R17.htm IDEA: XBRL DOCUMENT v3.25.1
Note 11 - Business Segment Information
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

11.

BUSINESS SEGMENT INFORMATION

 

Operating segments represent a component of the Company that engages in business activities from which it may recognize revenues and incur expenses whose operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.  Once operating segments are identified, the Company determined which of those operating segments are required to be presented as reportable segments based on the quantitative thresholds.

 

We structure our operations primarily around the products we sell and report our financial results in the following two reportable 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 CODM is Mike Manna, President & Chief Executive Officer.  Both of our operating 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 selling, general and administrative (“SG&A”) and research and development 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 operating segments.

 

Three-month period ended March 31, 2025:

 

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenues

   $ 46,321     $ 4,425     $ -     $ 50,746  

Cost of products sold

     (34,881 )     (3,120 )     -       (38,001 )

Gross profit

     11,440       1,305       -       12,745  

Direct SG&A expenses

     (3,865 )     (366 )     -       (4,231 )
Research and development     (1,591 )     (813 )     -       (2,404 )

Segment contribution

     5,984       126       -       6,110  

Corporate G&A expenses

                     (2,711 )     (2,711 )

Operating income

                             3,399  

Other expenses, net

                     (953 )     (953 )

Income tax provision

                     (567 )     (567 )

Non-controlling interest

                     (14 )     (14 )

Net income attributable to Ultralife

                           $ 1,865  

 

Three-month period ended March 31, 2024:

 

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenues

   $ 34,989     $ 6,938     $ -     $ 41,927  

Cost of products sold

     (26,003 )     (4,454 )     -       (30,457 )

Gross profit

     8,986       2,484       -       11,470  

Direct SG&A expenses

     (2,907 )     (394 )             (3,301 )
Research and development     (1,001 )     (755 )             (1,756 )

Segment contribution

     5,078       1,335       -       6,413  

Corporate G&A expenses

                     (2,350 )     (2,350 )

Operating income

                             4,063  

Other expenses, net

                     (456 )     (456 )

Income tax provision

                     (703 )     (703 )

Non-controlling interest

                     (13 )     (13 )

Net income attributable to Ultralife

                           $ 2,891  

 

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

 

Commercial and Government/Defense Revenue Information:

 

Three-month period ended March 31, 2025:

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 46,321     $ 29,659     $ 16,662  

Communications Systems

     4,425       -       4,425  

Total

   $ 50,746     $ 29,659     $ 21,087  
              58 %     42 %

 

Three-month period ended March 31, 2024:

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 34,989     $ 24,140     $ 10,849  

Communications Systems

     6,938       -       6,938  

Total

   $ 41,927     $ 24,140     $ 17,787  
              58 %     42 %

 

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

 

Three-month period ended March 31, 2025:

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 46,321     $ 35,182     $ 11,139  

Communications Systems

     4,425       4,287       138  

Total

   $ 50,746     $ 39,469     $ 11,277  
              78 %     22 %

 

Three-month period ended March 31, 2024:

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 34,989     $ 19,603     $ 15,386  

Communications Systems

     6,938       4,858       2,080  

Total

   $ 41,927     $ 24,461     $ 17,466  
              58 %     42 %

 

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