v3.26.1
Note 10 - Segments Reporting
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

10.

Segments Reporting

 

The Company has determined that it has two reporting segments, which are also operating segments:

 

(1) Building Supply: consisting of construction weatherization products, such as housewrap, housewrap accessories including window and door flashing, seam tape, synthetic roof underlayment and synthetic roof underlayment accessories, as well as other woven materials. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.

 

(2) Disposable Protective Apparel: consisting of a complete line of disposable protective garments, including shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods, as well as face masks and face shields for the pharmaceutical, cleanroom, industrial, medical and dental markets. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.

 

The chief operating decision maker (“CODM”) of the Company is the Company’s chief executive officer. The CODM assesses performance and decides how to allocate resources, including employees and financial and capital resources, based on segment net sales.

 

Segment data excludes charges allocated to the principal executive office and other unallocated corporate overhead expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

 

The accounting policies of the segments are the same as those described previously under Summary of Significant Accounting Policies (see Note 2 in the notes to our consolidated financial statements in Item 8 of the 2025 Form 10-K).

 

The following provides segment information as described below:

 

   

For the Three Months Ended

    

For the Six Months Ended

  
   

June 30, 2026

    

June 30, 2026

  
                                 
   

Building Supply

   

Disposable

Protective Apparel

    

Building Supply

   

Disposable

Protective Apparel

  
                                 

Segment sales

   $ 11,692,000     $ 6,982,000     $ 19,551,000     $ 13,708,000  

Less:

                                

Cost of goods sold

     7,759,000       3,937,000       13,221,000       7,544,000  

Selling, general and administrative

     1,738,000       1,351,000       3,447,000       2,811,000  

Depreciation and amortization

     189,000       61,000       378,000       104,000  

Other income

     (133,000 )     (75,000 )     (233,000 )     (130,000 )

Segment net income

   $ 2,139,000     $ 1,708,000     $ 2,738,000     $ 3,379,000  

 

   

For the Three Months Ended

    

For the Six Months Ended

  
   

June 30, 2025

    

June 30, 2025

  
                                 
   

Building Supply

   

Disposable

Protective Apparel

    

Building Supply

   

Disposable

Protective Apparel

  
                                 

Segment sales

   $ 11,084,000     $ 5,588,000     $ 19,456,000     $ 11,038,000  

Less:

                                

Cost of goods sold

     7,162,000       3,379,000       12,530,000       6,441,000  

Selling, general and administrative

     1,748,000       1,301,000       3,626,000       2,749,000  

Depreciation and amortization

     187,000       28,000       376,000       54,000  

Other income

     (117,000 )     (20,000 )     (236,000 )     (42,000 )

Segment net income

   $ 2,104,000     $ 900,000     $ 3,160,000     $ 1,836,000  

 

The following table presents net sales for each segment for the three and six months ended June 30, 2026 and 2025:

 

   

For the Three Months Ended

    

For the Six Months Ended

  
   

June 30,

    

June 30,

  
   

2026

    

2025

    

2026

    

2025

  

Building Supply

   $ 11,692,000     $ 11,084,000     $ 19,551,000     $ 19,456,000  

Disposable Protective Apparel

     6,982,000       5,588,000       13,708,000       11,038,000  

Consolidated net sales

   $ 18,674,000     $ 16,672,000     $ 33,259,000     $ 30,494,000  

 

 

The following table presents the reconciliation of total segment income to consolidated net income for the three and six months ended June 30, 2026 and 2025:

 

   

For the Three Months Ended

    

For the Six Months Ended

  
    June 30,    

June 30,

  
   

2026

    

2025

    

2026

    

2025

  

Building Supply

   $ 2,139,000     $ 2,104,000     $ 2,738,000     $ 3,160,000  

Disposable Protective Apparel

     1,708,000       900,000       3,379,000       1,836,000  

Total segment income

     3,847,000       3,004,000       6,117,000       4,996,000  
                                 

Unallocated corporate overhead expenses

     1,463,000       1,393,000       2,848,000       2,613,000  

Provision for income taxes

     558,000       367,000       741,000       526,000  

Consolidated net income

   $ 1,826,000     $ 1,244,000     $ 2,528,000     $ 1,857,000  

 

 

The following table presents the net property and equipment, goodwill and definite-lived intangible assets (“total assets”) by segment as of June 30, 2026 and December 31, 2025:

 

   

June 30,

    

December 31,

  
   

2026

    

2025

  
                 

Building Supply

   $ 5,374,000     $ 5,617,000  

Disposable Protective Apparel

     1,365,000       1,451,000  

Total segment assets

     6,739,000       7,068,000  
                 

Unallocated corporate assets

     1,291,000       1,221,000  

Total consolidated assets

   $ 8,030,000     $ 8,289,000