Annual report pursuant to Section 13 and 15(d)

Segment Reporting And Geographic Information

v2.4.0.6
Segment Reporting And Geographic Information
 12 Months Ended
Dec. 31, 2011
Segment Reporting And Geographic Information [Abstract]  
Segment Reporting And Geographic Information
21. Segment Reporting and Geographic Information:

The Company's segment reporting structure uses the Company's management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has six reporting units as of December 31, 2011. The United States segment, excluding All Points and Tagworks, is the only segment considered material by Company management as of December 31, 2011. The segments are as follows:

 

•  

United States – excluding the All Points and Tagworks divisions

 

•  

All Points

 

•  

Tagworks

 

•  

Canada

 

•  

Mexico

 

•  

Australia

Our United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States.

Our All Points segment is a Florida based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows and hurricane shutters.

Our Tagworks segment provides innovative pet ID tag programs to a leading pet products chain retailer in the United States using a unique, patent-protected / patent-pending technology and product portfolio.

Our Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets in Canada.

Our Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.

Our Australia segment distributes keys, key duplicating systems and accessories to home centers and other retail outlets in Australia.

The Company uses profit or loss from operations to evaluate the performance of its segments. Profit or loss from operations is defined as income from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Segment revenue excludes intersegment sales related to the sales or transfer of products between segments which is consistent with the segment revenue information provided to the Company's chief operating decision maker. Segment Income (Loss) from Operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points and Tagworks segment, while the remaining operating segments do not include any allocations.

In 2011, the Company concluded that it used a multiple segment operating structure. The Company has updated and expanded its 2010 segment reporting and geographic information to conform to the 2011 presentation.

 

The table below presents revenues and income from operations for our reportable segments for the year ended December 31, 2011, the seven months ended December 31, 2010, the five months ended May 28, 2010 and the year ended December 31, 2009.

 

                                 
     Successor     Predecessor  
     Year
Ended
December  31,
2011 		    Seven Months
Ended
December 31,
2010		     Five Months
Ended
May 28,
2010		     Year
Ended
December  31,
2009 		 
         

Revenues

                                 

United States, excluding All Points and Tagworks

    $ 459,623      $ 258,391      $ 175,470      $ 433,646   

All Points

      15,236        10,087        6,244        15,056   

TagWorks

      13,808        —          —          —     

Canada

      11,762        5,053        1,759        4,479   

Mexico

      5,832        3,149        2,243        4,980   

Australia

      265        —          —          —     
    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

    $ 506,526      $ 276,680      $ 185,716      $ 458,161   
    

 

 

    

 

 

    

 

 

    

 

 

  
         

Segment Income (Loss) from Operations

                                 

United States, excluding All Points and Tagworks

    $ 34,654      $ 16,025      $ (9,288 )    $ 48,495   

All Points

      487        362        122        146   

TagWorks

      3,343        —          —          —     

Canada

      (727 )      88        123        536   

Mexico

      942        269        270        255   

Australia

      (324 )      —          —          —     
    

 

 

    

 

 

    

 

 

    

 

 

  

Total segment income (loss) from operations

    $ 38,375      $ 16,744      $ (8,773 )    $ 49,432   
    

 

 

    

 

 

    

 

 

    

 

 

  
         

Reconciliation (1)

                                 

Total segment income (loss) from operations

    $ 38,375      $ 16,744      $ (8,773 )    $ 49,432   

Elimination of intercompany profit (loss)

      78        (59 )      11        (98 ) 
    

 

 

    

 

 

    

 

 

    

 

 

  

Total income (loss) from operations

    $ 38,453      $ 16,685      $ (8,762 )    $ 49,334   
    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) This table reconciles segment income (loss) from operations to total income (loss) from operations.

 

Assets by segment as of December 31, 2011 and 2010 were as follows:

 

                 
     December 31,
2011		      December 31,
2010		  

Assets:

                  

United States, excluding All Points and Tagworks

    $ 1,025,334       $ 1,035,674   

All Points

      8,052         7,193   

TagWorks

      62,912         —     

Canada

      13,269         5,605   

Mexico

      17,097         4,306   

Australia

      1,187         —     
    

 

 

     

 

 

  

Total Assets

    $ 1,127,851       $ 1,052,778   
    

 

 

     

 

 

  

 

                 
     As of
December 31,
2011		      As of
December 31,
2010		  

Cash & cash equivalents

                  

United States

    $ 9,400       $ 6,286   

Canada

      968         1,027   

Mexico

      1,560         272   

Australia

      99         —     
    

 

 

     

 

 

  

Consolidated cash & cash equivalents

    $ 12,027       $ 7,585   
    

 

 

     

 

 

  

Following is revenue based on products for the Company's significant product categories:

 

                                     
     Successor          Predecessor  
     Year
Ended
December  31,
2011 		     Seven
Months
Ended
December 31,
2010		          Five
Months
Ended
May 28,
2010		      Year
Ended
December  31,
2009 		 

Net sales

                                        

Keys

    $ 85,410       $ 48,897           $ 32,716       $ 78,012   

Engraving

      41,734         17,038             12,242         35,518   

Letters, numbers and signs

      33,079         22,026             12,859         34,287   

Fasteners

      279,564         154,319             103,457         253,703   

Threaded rod

      31,135         17,360             12,471         30,118   

Code cutter

      3,312         1,844             1,377         3,353   

Builders hardware

      10,080         3,137             1,753         3,832   

Other

      22,212         12,059             8,841         19,338   
    

 

 

     

 

 

         

 

 

     

 

 

  

Consolidated net sales

    $ 506,526       $ 276,680           $ 185,716       $ 458,161