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Note 11 - Business Segment Information
 6 Months Ended
Jun. 30, 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.

 

The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.

 

  

Three-month period ended June 30, 2025:

 

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenues

   $ 45,867     $ 2,694     $ -     $ 48,561  

Cost of products sold

     (35,032 )     (1,928 )     -       (36,960 )

Gross profit

     10,835       766       -       11,601  

Direct SG&A expenses

     (4,024 )     (384 )     -       (4,408 )

Research and development

     (1,494 )     (824 )     -       (2,318 )

Segment contribution

     5,317       (442 )     -       4,875  

Corporate G&A expenses

                     (2,619 )     (2,619 )

Operating income

                             2,256  

Other expenses, net

                     (1,143 )     (1,143 )

Income tax provision

                     (243 )     (243 )

Non-controlling interest

                     9       9  

Net income attributable to Ultralife

                           $ 879  

 

Three-month period ended June 30, 2024:

 

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenues

   $ 36,683     $ 6,300     $ -     $ 42,983  

Cost of products sold

     (26,730 )     (4,690 )     -       (31,420 )

Gross profit

     9,953       1,610       -       11,563  

Direct SG&A expenses

     (2,994 )     (466 )     -       (3,460 )

Research and development

     (1,258 )     (739 )     -       (1,997 )

Segment contribution

     5,701       405       -       6,106  

Corporate G&A expenses

                     (2,189 )     (2,189 )

Operating income

                             3,917  

Other expenses, net

                     (71 )     (71 )

Income tax provision

                     (853 )     (853 )

Non-controlling interest

                     (24 )     (24 )

Net income attributable to Ultralife

                           $ 2,969  

 

  

Six-month period ended June 30, 2025:

 

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenues

   $ 92,188     $ 7,119     $ -     $ 99,307  

Cost of products sold

     (69,913 )     (5,048 )     -       (74,961 )

Gross profit

     22,275       2,071       -       24,346  

Direct SG&A expenses

     (7,889 )     (750 )     -       (8,639 )

Research and development

     (3,085 )     (1,637 )     -       (4,722 )

Segment contribution

     11,301       (316 )     -       10,985  

Corporate G&A expenses

                     (5,330 )     (5,330 )

Operating income

                             5,655  

Other expenses, net

                     (2,096 )     (2,096 )

Income tax provision

                     (810 )     (810 )

Non-controlling interest

                     (5 )     (5 )

Net income attributable to Ultralife

                           $ 2,744  

 

Six-month period ended June 30, 2024:

 

   

Battery &

Energy

Products

    

Communications

Systems

    

Corporate

    

Total

  

Revenues

   $ 71,672     $ 13,238     $ -     $ 84,910  

Cost of products sold

     (52,733 )     (9,144 )     -       (61,877 )

Gross profit

     18,939       4,094       -       23,033  

Direct SG&A expenses

     (5,899 )     (861 )     -       (6,760 )

Research and development

     (2,260 )     (1,493 )     -       (3,753 )

Segment contribution

     10,780       1,740       -       12,520  

Corporate G&A expenses

                     (4,540 )     (4,540 )

Operating income

                             7,980  

Other expenses, net

                     (527 )     (527 )

Income tax provision

                     (1,556 )     (1,556 )

Non-controlling interest

                     (37 )     (37 )

Net income attributable to Ultralife

                           $ 5,860  

 

  

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

 

Commercial and Government/Defense Revenue Information:

 

Three-month period ended June 30, 2025:

 

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 45,867     $ 31,333     $ 14,534  

Communications Systems

     2,694       -       2,694  

Total

   $ 48,561     $ 31,333     $ 17,228  
              65 %     35 %

 

Three-month period ended June 30, 2024:

 

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 36,683     $ 27,664     $ 9,019  

Communications Systems

     6,300       -       6,300  

Total

   $ 42,983     $ 27,664     $ 15,319  
              64 %     36 %

 

Six-month period ended June 30, 2025:

 

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 92,188     $ 60,992     $ 31,196  

Communications Systems

     7,119       -       7,119  

Total

   $ 99,307     $ 60,992     $ 38,315  
              61 %     39 %

 

Six-month period ended June 30, 2024:

 

   

Total

Revenue

    

Commercial

    

Government/

Defense

  

Battery & Energy Products

   $ 71,672     $ 51,804     $ 19,868  

Communications Systems

     13,238       -       13,238  

Total

   $ 84,910     $ 51,804     $ 33,106  
              61 %     39 %

 

  

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

 

Three-month period ended June 30, 2025:

 

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 45,867     $ 33,300     $ 12,567  

Communications Systems

     2,694       2,064       630  

Total

   $ 48,561     $ 35,364     $ 13,197  
              73 %     27 %

 

Three-month period ended June 30, 2024:

 

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 36,683     $ 19,412     $ 17,271  

Communications Systems

     6,300       3,987       2,313  

Total

   $ 42,983     $ 23,399     $ 19,584  
              54 %     46 %

 

Six-month period ended June 30, 2025:

 

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 92,188     $ 68,482     $ 23,706  

Communications Systems

     7,119       6,351       768  

Total

   $ 99,307     $ 74,833     $ 24,474  
              75 %     25 %

 

Six-month period ended June 30, 2024:

 

   

Total

Revenue

    

United

States

    

Non-United

States

  

Battery & Energy Products

   $ 71,672     $ 39,015     $ 32,657  

Communications Systems

     13,238       8,845       4,393  

Total

   $ 84,910     $ 47,860     $ 37,050  
              56 %     44 %

 

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