Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v2.4.1.9
Segment Reporting and Geographic Information
12 Months Ended
Dec. 31, 2014
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, 2014. 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, 2014. 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, 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 identification tag programs to a leading pet products retail chain 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 aftermarket 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, at current market prices. Segment revenue excludes sales 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 transaction expenses incurred in connection with the Merger Transaction were recorded in the United States segment. For further information, see Note 22, Transaction, Acquisition, and Integration Expenses.

The table below presents revenues and income from operations for the reportable segments for the years ended December 31, 2014, 2013, and 2012.

 

     Successor           Predecessor  
     Period from
June 30, 2014
through
December 31, 2014
          Six months
Ended
June 29,
2014
    Year
Ended
December 31,
2013
    Year
Ended
December 31,
2012
 

Revenues

             

United States, excluding All Points

   $ 293,219           $ 269,009      $ 541,037      $ 517,135   

All Points

     9,362             10,238        20,798        18,837   

Canada

     70,566             73,867        132,158        12,555   

Mexico

     3,507             3,620        6,842        6,268   

Australia

     638             643        806        670   
  

 

 

        

 

 

   

 

 

   

 

 

 

Total revenues

$ 377,292      $ 357,377    $ 701,641    $ 555,465   
  

 

 

        

 

 

   

 

 

   

 

 

 

Segment Income (Loss) from Operations

 

United States, excluding All Points

$ 5,072      $ (44,830 $ 52,255    $ 42,896   

All Points

  655        896      1,737      881   

Canada

  3,189        4,214      2,847      (3,050

Mexico

  73        446      629      787   

Australia

  (748     (114   (1,027   (546
  

 

 

        

 

 

   

 

 

   

 

 

 

Total segment income (loss) from operations

$ 8,241      $ (39,388 $ 56,441    $ 40,968   
  

 

 

        

 

 

   

 

 

   

 

 

 

 

Assets by segment as of December 31, 2014 and 2013 were as follows:

 

     Successor            Predecessor  
     As of
December 31,
2014
           As of
December 31,
2013
 

Assets:

          

United States, excluding All Points

   $ 1,522,371            $ 936,008   

All Points

     16,108              8,379   

Canada

     346,691              300,906   

Mexico

     15,886              17,964   

Australia

     1,957              1,599   
  

 

 

         

 

 

 

Total Assets

$ 1,903,013      $ 1,264,856   
  

 

 

         

 

 

 
         
     Successor            Predecessor  
     As of
December 31,
2014
           As of
December 31,
2013
 

Cash & cash equivalents:

          

United States, excluding All Points

   $ 13,192            $ 27,632   

All Points

     696              714   

Canada

     3,186              5,039   

Mexico

     1,396              1,570   

Australia

     15              14   
  

 

 

         

 

 

 

Consolidated cash & cash equivalents

$ 18,485      $ 34,969   
  

 

 

       

 

 

 

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

 

     Successor            Predecessor  
     Period from June 30,
2014 through
December 31, 2014
           Six months
ended
June 29,
2014
     Year
ended December 31,
2013
     Year
ended
December 31,
2012
 

Net sales

                

Keys

   $ 48,327            $ 45,511       $ 90,518       $ 86,943   

Engraving

     25,465              24,065         48,442         48,979   

Letters, numbers and signs

     19,439              16,145         34,045         32,251   

Fasteners

     241,636              232,221         450,234         308,770   

Threaded rod

     16,269              16,535         31,802         33,326   

Code cutter

     1,425              1,392         2,680         2,851   

Builders hardware

     10,482              10,106         17,320         16,370   

Other

     14,249              11,402         26,600         25,975   
  

 

 

         

 

 

    

 

 

    

 

 

 

Consolidated net sales

$  377,292      $  357,377    $  701,641    $  555,465