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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2012
BUSINESS SEGMENTS

NOTE 14 – BUSINESS SEGMENTS

 

The Company has three reportable segments:  bromine, crude salt and chemical products. The reportable segments are consistent with how management views the markets served by the Company and the financial information that is reviewed by its chief operating decision maker. The Company manages its sensors and controls businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.

 

An operating segment’s performance is primarily evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. The Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of its segments.

 

Three-Month Period Ended
March 31, 2012		   Bromine *     Crude
 Salt *		     Chemical
 Products		     Segment
 Total		     Corporate     Total  
Net revenue
(external customers)		   $ 13,453,882     $ 2,274,924     $ 8,079,868     $ 23,808,674     $ -     $ 23,808,674  
Net revenue
(intersegment)		     754,557       -       -       754,557       -       754,557  
Income (loss) from operations before taxes     2,468,304       548,450       2,242,895       5,259,649       (682,550 )     4,577,099  
Income taxes     662,898       103,866       567,706       1,334,470       -       1,334,470  
Income (loss) from operations after taxes     1,805,406       444,584       1,675,189       3,925,179       (682,550 )     3,242,629  
Total assets     160,068,266       52,592,746       48,624,781       261,285,793       512,684       261,798,477  
Depreciation and amortization     3,664,242       1,363,506       655,415       5,683,163       -       5,683,163  
Capital expenditures     -       -       -       -       -       -  
Write-off / Impairment     -       -       -       -       -       -  

 

Three-Month Period Ended
March 31, 2011		   Bromine *     Crude
 Salt *		     Chemical
 Products		     Segment
 Total		     Corporate     Total  
Net revenue
(external customers)		   $ 30,149,316     $ 5,034,334     $ 10,194,882     $ 45,378,532     $ -     $ 45,378,532  
Net revenue
(intersegment)		     620,716       -       -       620,716       -       620,716  
Income (loss) from operations before taxes     16,372,899       3,946,918       3,356,537       23,676,354       (3,412,061 )     20,264,293  
Income taxes     4,275,891       813,439       843,792       5,933,122       -       5,933,122  
Income (loss) from operations after taxes     12,097,008       3,133,479       2,512,745       17,743,232       (3,412,061 )     14,331,171  
Total assets     149,821,845       43,799,931       41,500,688       235,122,464       57,716       235,180,180  
Depreciation and amortization     2,154,588       520,319       673,612       3,348,519       -       3,348,519  
Capital expenditures     2,562,848       3,667,142       -       6,229,990       -       6,229,990  
Write-off / Impairment     -       -       -       -       -       -  

 

* Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment.

 

    Three-Month Period Ended March 31,  
Reconciliations   2012     2011  
Total segment operating income   $ 5,259,649     $ 23,676,354  
Corporate costs     (682,550 )     (3,412,061 )
Income from operations     4,577,099       20,264,293  
Other income     44,478       33,828  
Income before taxes   $ 4,621,577     $ 20,298,121  

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 2012.

 

Number   Customer  

Bromine

(000’s)

    

Crude Salt

(000’s)

    

Chemical Products

(000’s)

    

Total

Revenue

(000’s)

    

Percentage of

Total Revenue (%)

  
 1   Shandong Morui Chemical Company Limited   $ 1,729     $ 386     $ 999     $ 3,114       13.1%  
 2   Shouguang City Rongyuan Chemical Company Limited   $ 2,022     $ 448     $ -     $ 2,470       10.4%  
TOTAL       $ 3,751     $ 834     $ 999     $ 5,584       23.5%  

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 2011.

 

Number   Customer  

Bromine

(000’s)

    

Crude Salt

(000’s)

    

Chemical Products

(000’s)

    

Total

Revenue

(000’s)

    

Percentage of

Total Revenue (%)

  
 1   Shandong Morui Chemical Company Limited   $ 5,731     $ 842     $ 569     $ 7,142       15.7%  
 2   Shouguang City Rongyuan Chemical Company Limited   $ 3,762     $ 1,174     $ -     $ 4,936       10.9%  
TOTAL       $ 9,493     $ 2,016     $ 569     $ 12,078       26.6%