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Segment Reporting

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 10. SEGMENT REPORTING

In accordance with FASB ASC 280, “Segment Reporting” (“ASC 280”), 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 follows ASC 280, which establishes standards for reporting information about operating segments in annual and interim financial statements, and requires that companies report financial and descriptive information about their reportable segments based on a management approach. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers.

The Company currently divides its operations into three operating segments: Complex Machining, which consists of AIM and NTW; Aerostructures and Electronics which consists of WMI (including WPI, MSI and Compac), Eur-Pac, and ECC; and Turbine Engine Components which consists of Sterling and AMK, for the period January 1, 2017 until it was disposed of on January 27, 2017. Along with our operating subsidiaries, we report the results of our corporate division as an independent segment.

The accounting policies of each of the segments are the same as those described in the Summary of Significant Accounting Policies. The Company evaluates performance based on revenue, gross profit contribution and assets employed. Corporate level operating costs are allocated to segments. These costs include corporate costs such as legal, audit, tax and other professional fees including those related to being a public company.

Given the pending sale of WMI Group, in the future, the Company may change its reportable operating segments.

Financial information about the Company’s operating segments for the three and nine months ended September 30, 2018 and 2017 are as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2018				2017				2018				2017
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)

COMPLEX MACHINING
Net Sales		$	9,690,000			$	10,198,000			$	30,022,000			$	30,562,000
Gross Profit			1,433,000				1,450,000				4,925,000				5,289,000
Pre Tax Income (Loss)			530,000				(90,000	)			1,303,000				(383,000	)
Assets			43,418,000				44,362,000				43,418,000				44,362,000

AEROSTRUCTURES & ELECTRONICS
Net Sales			310,000				1,843,000				1,585,000				4,204,000
Gross (Loss) Profit			(6,000	)			174,000				86,000				488,000
Pre Tax Income Loss			(125,000	)			(602,000	)			(652,000	)			(1,750,000	)
Assets			1,320,000				2,763,000				1,320,000				2,763,000

TURBINE ENGINE COMPONENTS
Net Sales			1,043,000				1,649,000				3,593,000				5,469,000
Gross Loss			(67,000	)			(67,000	)			(60,000	)			(246,000	)
Pre Tax Loss			(246,000	)			(613,000	)			(817,000	)			(2,110,000	)
Assets			5,661,000				11,220,000				5,661,000				11,220,000

CORPORATE
Net Sales			-				-				-				-
Gross Profit			-				-				-				-
Pre Tax Loss			(1,519,000	)			(1,608,000	)			(4,417,000	)			(2,213,000	)
Assets			272,000				961,000				272,000				961,000

CONSOLIDATED
Net Sales			11,043,000				13,690,000				35,200,000				40,235,000
Gross Profit			1,360,000				1,557,000				4,951,000				5,531,000
Pre Tax Loss			(1,360,000	)			(2,913,000	)			(4,583,000	)			(6,456,000	)
Provision for (Benefit from) Income Taxes			-				29,000				2,000				(170,000	)
(Loss) Income from Discontinued Operations			(1,770,000	)			62,000				172,000				280,000
Net Loss			(3,130,000	)			(2,880,000	)			(4,413,000	)			(6,006,000	)
Assets Held for Sale			12,341,000				16,959,000				12,341,000				16,959,000
Assets		$	63,012,000			$	76,265,000			$	63,012,000			$	76,265,000