Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v2.4.0.8
Segment Reporting and Geographic Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [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 our business. The Company periodically evaluates our segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has five reportable segments as of December 31, 2013. During 2013, the operations of Paulin were combined into the operations of the Canada segment. The United States segment, excluding All Points and the Canada segment are considered material by Company’s management as of December 31, 2013. The segments are as follows:

 

•   United States - excluding the All Points division

 

•   All Points

 

•   Canada

 

•   Mexico

 

•   Australia

The 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.

The 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.

The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, industrial distributors, automotive after market distributors, and other retail outlets and industrial Original Equipment Manufacturers (“OEMs”) in Canada. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers and industrial OEMs.

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

The 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 our 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 the reportable segments for the years ended December 31, 2013, 2012, and 2011.

 

     Year Ended December 31,  
     2013     2012     2011  

Revenues

       

United States, excluding All Points

    $ 541,037      $ 517,135      $ 473,431   

All Points

      20,798        18,837        15,236   

Canada

      132,158        12,555        11,762   

Mexico

      6,842        6,268        5,832   

Australia

      806        670        265   
  

 

 

    

 

 

    

 

 

  

Total revenues

    $ 701,641      $ 555,465      $ 506,526   
  

 

 

    

 

 

    

 

 

  

Segment Income from Operations

       

United States, excluding All Points

    $ 52,255      $ 42,896      $ 38,075   

All Points

      1,737        881        487   

Canada

      2,847        (3,050 )      (727 ) 

Mexico

      629        787        942   

Australia

      (1,027 )      (546 )      (324 ) 
  

 

 

    

 

 

    

 

 

  

Total segment income from operations

    $ 56,441      $ 40,968      $ 38,453   
  

 

 

    

 

 

    

 

 

  

 

Assets by segment as of December 31, 2013 and 2012 were as follows:

 

     Year Ended December 31,  
     2013      2012  

Assets:

      

United States, excluding All Points

    $ 936,008       $ 1,133,824   

All Points

      8,379         7,298   

Canada

      300,906         15,477   

Mexico

      17,964         17,816   

Australia

      1,599         1,378   
  

 

 

     

 

 

  

Total Assets

    $ 1,264,856       $ 1,175,793   
  

 

 

     

 

 

  
     Year Ended December 31,  
     2013      2012  

Cash & cash equivalents

      

United States, excluding All Points

    $ 27,632       $ 62,918   

All Points

      714         429   

Canada

      5,039         1,084   

Mexico

      1,570         1,066   

Australia

      14         51   
  

 

 

     

 

 

  

Consolidated cash & cash equivalents

    $ 34,969       $ 65,548   
  

 

 

     

 

 

  

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

 

     Year Ended December 31,  
     2013      2012      2011  

Net sales

         

Keys

    $ 90,518       $ 86,943       $ 85,410   

Engraving

      48,442         48,979         41,734   

Letters, numbers and signs

      34,045         32,251         33,079   

Fasteners

      450,234         308,770         279,564   

Threaded rod

      31,802         33,326         31,135   

Code cutter

      2,680         2,851         3,312   

Builders hardware

      17,320         16,370         10,080   

Other

      26,600         25,975         22,212   
  

 

 

     

 

 

     

 

 

  

Consolidated net sales

    $ 701,641       $ 555,465       $ 506,526