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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2014
Notes to Financial Statements  
SEGMENT REPORTING

In accordance with FASB ASC 280, “Segment Reporting”, the Company discloses financial and descriptive information about its reportable operating segments. Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

 

The Company is operating in four segments. AIM manufactures components and subassemblies for the defense and aerospace industry.  NTW manufactures aerospace components, principally landing gear for F-16 and F-18 fighter aircraft. WMI provides specialty welding services and metal fabrications to the defense and commercial aerospace industry and the results of Woodbine are included within the WMI segment beginning on April 1, 2014, the date it was acquired.  Eur-Pac’s primary business is “kitting” of supplies for all branches of the United States Defense Department including ordnance parts, hose assemblies, hydraulic, mechanical and electrical assemblies. The results of Eur-Pac are included from its date of acquisition. The results of ECC are included within Eur-Pac as of September 1, 2014, the date it was acquired. While each of these segments service the same industries and a similar customer base, we evaluate the performance of each segment separately in deciding how to allocate resources and in assessing profitability.

 

Beginning on January 1, 2013, the Company began to allocate all of the corporate selling and general and administrative costs of AIRI to three of its subsidiaries. For both 2014 and 2013, these are allocated 50% to AIM and 25% to each of WMI and NTW.  There was no corporate allocation made to Eur-Pac during 2014.

 

 

 

Financial information about the Company's operating segments for the three months ended September 30, 2014 and 2013 are as follows:

 

Three Months Ended September 30,
      2014     2013  
      (Unaudited)     (Unaudited)  
AIM            
  Net Sales   $ 9,678,000     $ 9,863,000  
  Gross Profit     1,744,000       1,926,000  
  Pre Tax Income     723,000       949,000  
  Assets     20,952,000       25,336,000  
                   
WMI                
  Net Sales     3,339,000       3,800,000  
  Gross Profit     815,000       953,000  
  Pre Tax Loss     (352,000 )     (126,000 )
  Assets     18,386,000       10,334,000  
                   
NTW                
  Net Sales     731,000       2,389,000  
  Gross Profit     284,000       864,000  
  Pre Tax (Loss) Income     (503,000 )     25,000  
  Assets     11,970,000       13,005,000  
                   
EPC                
  Net Sales     1,406,000       -  
  Gross Profit     714,000       -  
  Pre Tax Income     492,000       -  
  Assets     2,858,000       -  
                   
Corporate                
  Net Sales     -       -  
  Gross Profit     -       -  
  Pre Tax Loss     (61,000 )     (109,000 )
  Assets     15,772,000       9,964,000  
                   
Consolidated                
  Net Sales     15,154,000       16,052,000  
  Gross Profit     3,557,000       3,743,000  
  Pre Tax Income     299,000       739,000  
  Benefit From Income Taxes     (81,000 )     (1,795,000 )
  Net Income     380,000       2,534,000  
  Elimination of Assets     (10,822,000 )     (4,852,000 )
  Assets     59,116,000       53,787,000  

 

 

 

Financial information about the Company's operating segments for the nine months ended September 30, 2014 and 2013 are as follows:

 

Nine Months Ended September 30,  
      2014     2013  
      (Unaudited)     (Unaudited)  
AIM            
  Net Sales   $ 23,944,000     $ 25,528,000  
  Gross Profit     4,315,000       4,986,000  
  Pre Tax Income     1,208,000       2,037,000  
  Assets     20,952,000       25,336,000  
                   
WMI                
  Net Sales     10,414,000       10,246,000  
  Gross Profit     2,758,000       2,694,000  
  Pre Tax Loss     (886,000 )     (131,000 )
  Assets     18,386,000       10,334,000  
                   
NTW                
  Net Sales     7,926,000       9,242,000  
  Gross Profit     3,025,000       3,340,000  
  Pre Tax Income     441,000       746,000  
  Assets     11,970,000       13,005,000  
                   
EPC                
  Net Sales     1,683,000       -  
  Gross Profit     857,000       -  
  Pre Tax Income     587,000       -  
  Assets     2,858,000       -  
                   
Corporate                
  Net Sales     -       -  
  Gross Profit     -       -  
  Pre Tax Loss     (235,000 )     (489,000 )
  Assets     15,772,000       9,964,000  
                   
Consolidated                
  Net Sales     43,967,000       45,016,000  
  Gross Profit     10,955,000       11,020,000  
  Pre Tax Income     1,115,000       2,163,000  
  Benefit From Income Taxes     (222,000 )     (876,000 )
  Net Income     1,337,000       3,039,000  
  Elimination of Assets     (10,822,000 )     (4,852,000 )
  Assets     59,116,000       53,787,000