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, 2012
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 five reporting units as of December 31, 2012. The United States segment, excluding All Points, is the only segment considered material by Company management as of December 31, 2012. The segments are as follows:

 

 

United States – excluding the All Points division

 

 

All Points

 

 

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. This segment also provides innovative pet ID tag programs to a leading pet products chain retailer using a unique, patent-protected / patent-pending technology and product portfolio.

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 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 segment, while the remaining operating segments do not include any allocations.

 

The table below presents revenues and income from operations for our reportable segments for the years ended December 31, 2012 and 2011, the seven months ended December 31, 2010 and the five months ended May 28, 2010.

 

     Successor     Predecessor  
     Year
Ended
December  31,
2012
    Year
Ended
December  31,
2011
    Seven Months
Ended
December 31,
2010
    Five Months
Ended
May 28,
2010
 
 

Revenues

        

United States, excluding All Points

   $ 517,135      $ 473,431      $ 258,391         $ 175,470   

All Points

     18,837        15,236        10,087        6,244   

Canada

     12,555        11,762        5,053        1,759   

Mexico

     6,268        5,832        3,149        2,243   

Australia

     670        265        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

   $ 555,465      $ 506,526      $ 276,680      $ 185,716   
  

 

 

   

 

 

   

 

 

   

 

 

 
 

Segment Income (Loss) from Operations

        

United States, excluding All Points

   $ 42,908      $ 37,997      $ 16,025      $ (9,288

All Points

     881        487        362        122   

Canada

     (3,050     (727     88        123   

Mexico

     787        942        269        270   

Australia

     (546     (324     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total segment income (loss) from operations

   $ 40,980      $ 38,375      $ 16,744      $ (8,773
  

 

 

   

 

 

   

 

 

   

 

 

 
 

Reconciliation (1)

        

Total segment income (loss) from operations

   $ 40,980      $ 38,375      $ 16,744      $ (8,773

Elimination of intercompany profit (loss)

     (12     78        (59     11   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total income (loss) from operations

   $ 40,968      $ 38,453      $ 16,685      $ (8,762
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

Assets by segment as of December 31, 2012 and 2011 were as follows:

 

     December 31,
2012
     December 31,
2011
 

Assets:

     

United States, excluding All Points

   $ 1,133,824       $ 1,088,246   

All Points

     7,298         8,052   

Canada

     15,477         13,269   

Mexico

     17,816         17,097   

Australia

     1,378         1,187   
  

 

 

    

 

 

 

Total Assets

   $ 1,175,793       $ 1,127,851   
  

 

 

    

 

 

 

 

      As of
December 31,
2012
     As of
December 31,
2011
 

Cash & cash equivalents

     

United States

   $ 63,347       $ 9,400   

Canada

     1,084         968   

Mexico

     1,066         1,560   

Australia

     51         99   
  

 

 

    

 

 

 

Consolidated cash & cash equivalents

   $ 65,548       $ 12,027   
  

 

 

    

 

 

 

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

 

     Successor          Predecessor  
     Year
Ended
December  31,
2012
     Year
Ended
December  31,
2011
     Seven
Months
Ended
December 31,
2010
          Five
Months
Ended
May 28,
2010
 

Net sales

               

Keys

   $ 86,943       $ 85,410       $ 48,897           $ 32,716   

Engraving

     48,979         41,734         17,038             12,242   

Letters, numbers and signs

     32,251         33,079         22,026             12,859   

Fasteners

     308,770         279,564         154,319             103,457   

Threaded rod

     33,326         31,135         17,360             12,471   

Code cutter

     2,851         3,312         1,844             1,377   

Builders hardware

     16,370         10,080         3,137             1,753   

Other

     25,975         22,212         12,059             8,841   
  

 

 

    

 

 

    

 

 

        

 

 

 

Consolidated net sales

   $ 555,465       $ 506,526       $ 276,680           $ 185,716