| Business segment information |
Note 2 – Business segment information: Our chief operating decision maker (“CODM”) evaluates segment performance based on segment operating income, which is defined as income before income taxes, exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of long-lived assets outside the ordinary course of business). | | | | | | | | | | | | | | | Three months ended | | Six months ended | | | June 30, | | June 30, | | | 2025 | | 2026 | | 2025 | | 2026 | | | | (In thousands) | Net sales: | | | | | | | | | | | | | Security Products | | $ | 30,683 | | $ | 33,348 | | $ | 60,913 | | $ | 63,244 | Marine Components | | | 9,683 | | | 10,266 | | | 19,725 | | | 20,939 | Total | | $ | 40,366 | | $ | 43,614 | | $ | 80,638 | | $ | 84,183 | | | | | | | | | | | | | | Cost of sales: | | | | | | | | | | | | | Security Products | | $ | 21,129 | | $ | 21,559 | | $ | 42,361 | | $ | 41,431 | Marine Components | | | 6,347 | | | 6,519 | | | 13,224 | | | 13,964 | Total | | $ | 27,476 | | $ | 28,078 | | $ | 55,585 | | $ | 55,395 | | | | | | | | | | | | | | Gross margin: | | | | | | | | | | | | | Security Products | | $ | 9,554 | | $ | 11,789 | | $ | 18,552 | | $ | 21,813 | Marine Components | | | 3,336 | | | 3,747 | | | 6,501 | | | 6,975 | Total | | $ | 12,890 | | $ | 15,536 | | $ | 25,053 | | $ | 28,788 | | | | | | | | | | | | | | Segment selling, general and administrative expense: | | | | | | | | | | | | | Security Products | | $ | 3,786 | | $ | 3,800 | | $ | 7,263 | | $ | 7,249 | Marine Components | | | 942 | | | 978 | | | 1,866 | | | 1,895 | Total | | $ | 4,728 | | $ | 4,778 | | $ | 9,129 | | $ | 9,144 | | | | | | | | | | | | | | Operating income: | | | | | | | | | | | | | Security Products | | $ | 5,768 | | $ | 7,989 | | $ | 11,289 | | $ | 14,564 | Marine Components | | | 2,394 | | | 2,769 | | | 4,635 | | | 5,080 | Segment operating income | | | 8,162 | | | 10,758 | | | 15,924 | | | 19,644 | Corporate operating expenses | | | (1,842) | | | (1,837) | | | (3,735) | | | (3,673) | Total operating income | | | 6,320 | | | 8,921 | | | 12,189 | | | 15,971 | Interest income | | | 846 | | | 662 | | | 1,719 | | | 1,339 | Income before income taxes | | $ | 7,166 | | $ | 9,583 | | $ | 13,908 | | $ | 17,310 | | | | | | | | | | | | | | Depreciation and amortization: | | | | | | | | | | | | | Security Products | | $ | 622 | | $ | 571 | | $ | 1,266 | | $ | 1,147 | Marine Components | | | 301 | | | 286 | | | 602 | | | 578 | Total | | $ | 923 | | $ | 857 | | $ | 1,868 | | $ | 1,725 |
Intersegment sales are not material.
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