Segments and Geographic Area | 9 Months Ended |
Sep. 30, 2013 |
Segment Reporting [Abstract] | ' |
Segments and Geographic Area | ' |
Segments and Geographic Area: |
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The Company's segments are based on the organizational structure that is used by management for making operating and investment decisions and for assessing performance. Based on this structure, the Company has two operating segments: Nutritional Products and Medical Products. |
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The Nutritional Products segment manufactures and distributes a line of over 100 nutritional supplements and personal care products, including herbs, vitamins and minerals, as well as natural skin, hair and body care products. Nutritional Products are marketed under the "RBC LifeTM" brand name through subsidiaries in the United States, Canada, Taiwan and Hong Kong. These products are distributed by a network comprised of independent Associates and NFR program participants in certain markets, primarily the United States, Canada and Southeast Asia, and by licensees in other international markets. For the most part, licensees also market the Nutritional Products in their respective territories through a network of independent Associates. |
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The Medical Products segment markets a line of over 40 wound care products under the "MPM MedicalTM" brand name through a subsidiary operating primarily in the United States. These wound care products are distributed to hospitals, nursing homes, home health care agencies, clinics and pharmacies through a network of medical/surgical supply dealers, pharmaceutical distributors and our own sales representatives. Medical Products are used to treat and manage pain associated with wounds, in the acute care, long-term care and oncology markets. |
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The Company evaluates the performance of its segments primarily based on operating profit. All intercompany transactions have been eliminated, and intersegment revenues are not significant. In calculating operating profit for these two segments, administrative expenses incurred that are common to the two segments are allocated on a usage basis. |
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Segment information is as follows (U.S. dollars in 000s): |
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| Nutritional Products | | Medical Products | | Consolidated | | | | |
Quarter Ended September 30, 2013 | | | | | | | | | | | | |
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Net sales | $ | 4,999 | | | $ | 1,640 | | | $ | 6,640 | | | | | |
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Depreciation and amortization | 132 | | | 15 | | | 147 | | | | | |
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Operating profit (loss) | (203 | ) | | 64 | | | (139 | ) | | | | |
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Capital expenditures | — | | | — | | | — | | | | | |
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Total assets | 15,683 | | | 3,157 | | | 18,840 | | | | | |
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Quarter Ended September 30, 2012 | | | | | | | | | | | | |
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Net sales | $ | 5,301 | | | $ | 1,412 | | | $ | 6,713 | | | | | |
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Depreciation and amortization | 127 | | | 19 | | | 146 | | | | | |
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Operating loss | (453 | ) | | (83 | ) | | (536 | ) | | | | |
Capital expenditures | 100 | | | — | | | 100 | | | | | |
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Total assets | 14,901 | | | 2,829 | | | 17,730 | | | | | |
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Nine Months Ended September 30, 2013 | | | | | | | | | | | | |
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Net sales | $ | 14,431 | | | $ | 4,594 | | | $ | 19,025 | | | | | |
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Depreciation and amortization | 395 | | | 46 | | | 442 | | | | | |
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Operating profit (loss) | (360 | ) | | 47 | | | (313 | ) | | | | |
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Capital expenditures | 11 | | | — | | | 11 | | | | | |
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Total assets | 15,683 | | | 3,157 | | | 18,840 | | | | | |
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Nine Months Ended September 30, 2012 | | | | | | | | | | | | |
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Net sales | $ | 14,652 | | | $ | 4,678 | | | $ | 19,330 | | | | | |
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Depreciation and amortization | 370 | | | 59 | | | 429 | | | | | |
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Operating profit (loss) | (210 | ) | | 112 | | | (98 | ) | | | | |
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Capital expenditures | 805 | | | — | | | 805 | | | | | |
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Total assets | 14,901 | | | 2,829 | | | 17,730 | | | | | |
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Financial information summarized geographically is as follows (U.S. dollars in 000s): |
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| Quarter Ended September 30, 2013 | | Quarter Ended September 30, 2012 |
| Net sales | | Long-Lived assets | | Net sales | | Long-Lived assets |
Domestic | $ | 2,455 | | | $ | 5,859 | | | $ | 2,422 | | | $ | 6,442 | |
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Russia/Eastern Europe | 3,078 | | | — | | | 3,333 | | | — | |
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Canada | 374 | | | 528 | | | 339 | | | 521 | |
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Southeast Asia | 707 | | | 258 | | | 566 | | | 60 | |
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All others | 25 | | | — | | | 54 | | | — | |
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Totals | $ | 6,640 | | | $ | 6,645 | | | $ | 6,713 | | | $ | 7,023 | |
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| Nine Months Ended September 30, 2013 | | Nine Months Ended September 30, 2012 |
| Net sales | | Long-Lived assets | | Net sales | | Long-Lived assets |
Domestic | $ | 7,129 | | | $ | 5,859 | | | $ | 7,969 | | | $ | 6,442 | |
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Russia/Eastern Europe | 8,856 | | | — | | | 8,717 | | | — | |
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Canada | 1,184 | | | 528 | | | 1,072 | | | 521 | |
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Southeast Asia | 1,747 | | | 258 | | | 1,305 | | | 60 | |
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All others | 110 | | | — | | | 267 | | | — | |
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Totals | $ | 19,025 | | | $ | 6,645 | | | $ | 19,330 | | | $ | 7,023 | |
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Significant Customers |
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The Company recorded sales of Nutritional Products to Coral Club International, Inc. ("CCI"), a licensee of the Company, in the amounts of $3,078,000 and $3,333,000 during the quarters ended September 30, 2013 and 2012, respectively, and $8,856,000 and $8,717,000 during the nine months ended September 30, 2013 and 2012, respectively. The President of CCI is a former member of our Board of Directors and beneficially owns approximately 18% of our Common Stock. The Company also recorded sales of Medical Products to a medical/surgical dealer (see Note L for additional information related to this dealer) in the amounts of $672,000 and $612,000 during the quarters ended September 30, 2013 and 2012, respectively, and $1,960,000 and $2,512,000 during the nine months ended September 30, 2013 and 2012, respectively. In no other case did a customer of the Company account for more than 10% of net sales during the quarters or nine months ended September 30, 2013 and 2012. |