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6 - Segment Information

12 Months Ended

Dec. 31, 2019

6-Segment Information-The Company operates in the United States in two business segments as determined by its products. The fastener segment, which comprises H & L Tool and the parent company’s fastener operations, includes rivets, cold-formed fasteners and parts and screw machine products. The assembly equipment segment includes automatic rivet setting machines and parts and tools for such machines. Information by segment is as follows:

	Fastener	Assembly Equipment	Other	Consolidated
Year Ended December 31, 2019:
Net Sales………………………………………	$ 28,989,667	$ 3,883,335	$ 0	$ 32,873,002

Depreciation……………………………………...	1,217,174	126,430	38,631	1,382,235

Segment operating profit………………………	1,762,835	1,083,548	0	2,846,383
Selling and administrative expenses…………..	0	0	(2,354,799)	(2,354,799)
Other income……………………………………..	0	0	191,730	191,730
Income before income taxes……………………				683,314

Capital expenditures…………………………….	1,522,541	233,697	46,676	1,802,914

Segment assets:
Accounts receivable, net……………………...	4,313,185	296,129	0	4,609,314
Inventories, net………………………………...	3,985,883	965,294	0	4,951,177
Property, plant and equipment, net………….	11,047,439	1,686,764	939,850	13,674,053
Other assets……………………………………	0	0	8,488,832	8,488,832
				31,723,376

Year Ended December 31, 2018:
Net Sales………………………………………	$ 33,712,458	$ 3,461,791	$ 0	$ 37,174,249

Depreciation……………………………………...	1,161,082	112,942	34,424	1,308,448

Segment operating profit………………………	3,731,998	1,108,248	0	4,840,246
Selling and administrative expenses…………..	0	0	(2,437,598)	(2,437,598)
Other income……………………………………..	0	0	153,537	153,537
Income before income taxes……………………				2,556,185

Capital expenditures…………………………….	1,635,115	49,884	338,191	2,023,190

Segment assets:
Accounts receivable, net……………………...	5,196,437	332,870	0	5,529,307
Inventories, net………………………………...	5,075,290	1,025,101	0	6,100,391
Property, plant and equipment, net………….	10,726,191	1,579,497	952,458	13,258,146
Other assets……………………………………	0	0	8,358,781	8,358,781
				33,246,625

The Company does not allocate certain selling and administrative expenses for internal reporting, thus, no allocation was made for these expenses for segment disclosure purposes. Segment assets reported internally are limited to accounts receivable, inventory and long-lived assets. Certain long-lived assets of one plant location are allocated between the two segments based on estimated plant utilization, as this plant serves both fastener and assembly equipment activities. Other assets are not allocated to segments internally and to do so would be impracticable.

The following table presents revenue by segment, further disaggregated by end-market:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2019:
Automotive	$ 18,518,987	$ 193,517	$ 18,712,504
Non-automotive	10,470,680	3,689,818	14,160,498
Total net sales	$ 28,989,667	$ 3,883,335	$ 32,873,002

Year Ended December 31, 2018:
Automotive	$ 22,215,719	$ 237,565	$ 22,453,284
Non-automotive	11,496,739	3,224,226	14,720,965
Total net sales	$ 33,712,458	$ 3,461,791	$ 37,174,249

The following table presents revenue by segment, further disaggregated by location:

	Fastener	Assembly Equipment	Consolidated
Year Ended December 31, 2019:
United States	$ 24,626,317	$ 3,599,855	$ 28,226,172
Foreign	4,363,350	283,480	4,646,830
Total net sales	$ 28,989,667	$ 3,883,335	$ 32,873,002

Year Ended December 31, 2018:
United States	$ 29,470,140	$ 3,260,683	$ 32,730,823
Foreign	4,242,318	201,108	4,443,426
Total net sales	$ 33,712,458	$ 3,461,791	$ 37,174,249

Sales to one customer in the fastener segment accounted for 16 percent of consolidated revenues during 2019 and 17 percent in 2018. The accounts receivable balance for this customer accounted for 18 and 15 percent of consolidated accounts receivable as of December 31, 2019 and 2018, respectively. Sales to two other customers were each 10 percent of consolidated revenue in both 2019 and 2018. One of these customers accounted for 13 percent and 12 percent of consolidated accounts receivable as of December 31, 2019 and 2018, respectively, while the other accounted for 12 percent and 17 percent of consolidated accounts receivable as of December 31, 2019 and 2018, respectively.