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Segment Reporting

3 Months Ended

Mar. 31, 2019

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 two operating segments: Complex Machining which consists of AIM and NTW and Turbine Engine Components which consists of Sterling. Along with the Company’s operating subsidiaries, the Company reports the results of their corporate division as an independent segment.

In March 2018, the Company announced its intent to divest WMI Group and related operations which divestiture was completed in December 2018 enabling us to focus on complex, machined products for aircraft landing gear, flight critical / flight safety equipment and jet turbine applications. Although WMI Group and the related operations had been classified as a discontinued operation, the Company continued to operate these businesses until the sale closed on December 20, 2018. In November 2018, the Company’s EPC subsidiary received a notice of debarment from bidding on or fulfilling future government contracts. The existing contracts that had already been awarded have been completed and the operations of the entity were closed on March 31, 2019. For reporting purposes WMI Group and EPC have been classified as discontinued operations for the three months ending March 31, 2019 and 2018.

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.

Financial information about the Company’s reporting segments for the three months ended March 31, 2019 and 2018 are as follows: 

		Three Months Ended March 31,
		2019				2018
		(unaudited)				(unaudited)
COMPLEX MACHINING
Net Sales		$	12,418,000			$	10,627,000
Gross Profit			2,213,000				2,023,000
Pre Tax Income from continuing operations			1,443,000				116,000
Assets			45,554,000				45,014,000
TURBINE ENGINE COMPONENTS
Net Sales			1,460,000				1,282,000
Gross Profit (Loss)			61,000				(48,000	)
Pre Tax Loss from continuing operations			(170,000	)			(457,000	)
Assets			5,235,000				6,009,000
CORPORATE
Net Sales			—				—
Gross Profit			—				—
Pre Tax Loss from continuing operations			(2,268,000	)			(918,000	)
Assets			507,000				1,171,000
CONSOLIDATED
Net Sales			13,878,000				11,909,000
Gross Profit			2,274,000				1,975,000
Pre Tax Loss from continuing operations			(995,000	)			(1,259,000	)
Provision for (Benefit from) Income Taxes			—				—
Income (Loss) from Discontinued Operations, net of income tax			72,000				(209,000	)
Assets Held for Sale			—				10,412,000
Net Loss			(923,000	)			(1,468,000	)
Assets		$	51,296,000			$	62,606,000

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- References

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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