Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Primo Water Corp | ||
Entity Central Index Key | 1,365,101 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 119,692,441 | ||
Entity Common Stock, Shares Outstanding | 25,815,586 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,826 | $ 495 |
Accounts receivable, net | 11,098 | 9,010 |
Inventories | 7,092 | 6,826 |
Prepaid expenses and other current assets | 529 | 1,279 |
Total current assets | 20,545 | 17,610 |
Bottles, net | 3,688 | 3,574 |
Property and equipment, net | 31,997 | 34,235 |
Intangible assets, net | 8,074 | 9,452 |
Other assets | 569 | 877 |
Total assets | 64,873 | 65,748 |
Current liabilities: | ||
Accounts payable | 11,994 | 12,499 |
Accrued expenses and other current liabilities | 3,748 | 4,343 |
Current portion of capital leases and notes payable | 172 | 106 |
Total current liabilities | 15,914 | 16,948 |
Long-term debt, capital leases and notes payable, net of current portion | 20,289 | 24,210 |
Liabilities of disposal group, net of current portion, and other long-term liabilities | 2,535 | 2,316 |
Total liabilities | $ 38,738 | $ 43,474 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value - 10,000 shares authorized, none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value - 70,000 shares authorized, 25,810 and 24,642 shares issued and outstanding at December 31, 2015 and 2014, respectively | 26 | 25 |
Additional paid-in capital | 281,476 | 277,708 |
Common stock warrants | 7,492 | 8,659 |
Accumulated deficit | (261,447) | (263,304) |
Accumulated other comprehensive loss | (1,412) | (814) |
Total stockholders' equity | 26,135 | 22,274 |
Total liabilities and stockholders' equity | $ 64,873 | $ 65,748 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 25,810 | 24,642 |
Common stock, shares outstanding (in shares) | 25,810 | 24,642 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Net sales | $ 126,951 | $ 106,322 | $ 91,209 |
Operating costs and expenses: | |||
Cost of sales | 92,476 | 78,452 | 68,367 |
Selling, general and administrative expenses | 19,128 | 18,969 | 15,025 |
Non-recurring costs | 275 | 2,881 | 777 |
Depreciation and amortization | 10,432 | 10,655 | 11,333 |
Loss on disposal and impairment of property and equipment | 500 | 2,104 | 126 |
Total operating costs and expenses | 122,811 | 113,061 | 95,628 |
Income (loss) from operations | 4,140 | (6,739) | (4,419) |
Interest expense, net | 1,987 | 6,325 | 4,425 |
Income (loss) from continuing operations | 2,153 | (13,064) | (8,844) |
Loss from discontinued operations | (296) | (403) | (1,862) |
Net income (loss) | $ 1,857 | $ (13,467) | $ (10,706) |
Basic earnings (loss) per common share: | |||
Income (loss) from continuing operations (in dollars per share) | $ 0.08 | $ (0.54) | $ (0.37) |
Loss from discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.08) |
Net income (loss) (in dollars per share) | 0.07 | (0.55) | (0.45) |
Diluted earnings (loss) per common share: | |||
Income (loss) from continuing operations (in dollars per share) | 0.08 | (0.54) | (0.37) |
Loss from discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.08) |
Net income (loss) (in dollars per share) | $ 0.07 | $ (0.55) | $ (0.45) |
Weighted average shares used in computing earnings (loss) per share | |||
Basic (in shares) | 25,190 | 24,339 | 23,935 |
Diluted (in shares) | 27,001 | 24,339 | 23,935 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | $ 1,857 | $ (13,467) | $ (10,706) |
Other comprehensive loss: | |||
Foreign currency translation adjustments, net | (598) | (384) | (394) |
Comprehensive income (loss) | $ 1,259 | $ (13,851) | $ (11,100) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Stock Warrants [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2012 | $ 24 | $ 272,336 | $ 8,420 | $ (239,131) | $ (36) | $ 41,613 |
Balance (in shares) at Dec. 31, 2012 | 23,772 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Employee stock compensation plans, net | $ 0 | 1,047 | 0 | 0 | 0 | 1,047 |
Employee stock compensation plans, net (in shares) | 304 | |||||
Issuance of common stock, net of issuance costs | $ 0 | (4) | 0 | 0 | 0 | (4) |
Issuance of common stock, net of issuance costs (in shares) | 0 | |||||
Issuance of DS Services' common stock warrant | 0 | |||||
Net income (loss) | $ 0 | 0 | 0 | (10,706) | 0 | (10,706) |
Other comprehensive loss | 0 | 0 | 0 | 0 | (394) | (394) |
Balance at Dec. 31, 2013 | $ 24 | 273,379 | 8,420 | (249,837) | (430) | 31,556 |
Balance (in shares) at Dec. 31, 2013 | 24,076 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Employee stock compensation plans, net | $ 1 | 3,979 | 0 | 0 | 0 | 3,980 |
Employee stock compensation plans, net (in shares) | 274 | |||||
Cashless exercise of common stock warrants | $ 0 | 350 | (350) | 0 | 0 | 0 |
Cashless exercise of common stock warrants (in shares) | 292 | |||||
Issuance of DS Services' common stock warrant | $ 0 | 0 | 589 | 0 | 0 | 589 |
Issuance of DS Services' common stock warrant (in shares) | 0 | |||||
Net income (loss) | $ 0 | 0 | 0 | (13,467) | 0 | (13,467) |
Other comprehensive loss | 0 | 0 | 0 | 0 | (384) | (384) |
Balance at Dec. 31, 2014 | $ 25 | 277,708 | 8,659 | (263,304) | (814) | 22,274 |
Balance (in shares) at Dec. 31, 2014 | 24,642 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Employee stock compensation plans, net | $ 0 | 2,602 | 0 | 0 | 0 | 2,602 |
Employee stock compensation plans, net (in shares) | 195 | |||||
Cashless exercise of common stock warrants | $ 1 | 1,166 | (1,167) | 0 | 0 | 0 |
Cashless exercise of common stock warrants (in shares) | 973 | |||||
Issuance of DS Services' common stock warrant | 0 | |||||
Net income (loss) | $ 0 | 0 | 0 | 1,857 | 0 | 1,857 |
Other comprehensive loss | 0 | 0 | 0 | 0 | (598) | (598) |
Balance at Dec. 31, 2015 | $ 26 | $ 281,476 | $ 7,492 | $ (261,447) | $ (1,412) | $ 26,135 |
Balance (in shares) at Dec. 31, 2015 | 25,810 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,857 | $ (13,467) | $ (10,706) |
Less: Loss from discontinued operations | (296) | (403) | (1,862) |
Income (loss) from continuing operations | 2,153 | (13,064) | (8,844) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 10,432 | 10,655 | 11,333 |
Loss on disposal and impairment of property and equipment | 500 | 2,104 | 126 |
Stock-based compensation expense | 2,601 | 4,023 | 1,034 |
Non-cash interest expense | 110 | 2,776 | 1,162 |
Issuance of DS Services' common stock warrant | 0 | 589 | 0 |
Realized foreign currency exchange loss and other, net | 387 | (62) | (132) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,303) | (1,228) | 2,464 |
Inventories | (306) | (528) | 1,205 |
Prepaid expenses and other assets | 655 | 90 | (308) |
Accounts payable | (420) | 2,299 | (437) |
Accrued expenses and other liabilities | (255) | 769 | (970) |
Net cash provided by operating activities | 13,554 | 8,423 | 6,633 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (5,354) | (5,449) | (4,793) |
Purchases of bottles, net of disposals | (2,488) | (2,473) | (2,507) |
Proceeds from the sale of property and equipment | 108 | 727 | 38 |
Additions to and acquisitions of intangible assets | (16) | (33) | (45) |
Net cash used in investing activities | (7,750) | (7,228) | (7,307) |
Cash flows from financing activities: | |||
Borrowings under Revolving Credit Facilities | 27,000 | 48,353 | 91,135 |
Payments under Revolving Credit Facilities | (31,000) | (47,498) | (95,067) |
Borrowings under Term loans | 0 | 22,500 | 5,500 |
Payments under Term loans | 0 | (23,499) | 0 |
Note payable and capital lease payments | (203) | (147) | (15) |
Stock option and employee stock purchase activity, net | 159 | 198 | (801) |
Debt issuance costs and other | 0 | (640) | 130 |
Net cash (used in) provided by financing activities | (4,044) | (733) | 882 |
Cash used in operating activities of discontinued operations | (154) | (259) | 56 |
Effect of exchange rate changes on cash and cash equivalents | (275) | (102) | (104) |
Net increase in cash and cash equivalents | 1,331 | 101 | 160 |
Cash and cash equivalent, beginning of year | 495 | 394 | 234 |
Cash and cash equivalent, end of period | $ 1,826 | $ 495 | $ 394 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Description of Business and Significant Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies Business Primo Water Corporation (together with its consolidated subsidiaries, “Primo,” “we,” “our,” “us”) is a leading provider of multi-gallon purified bottled water, self-service refill water and water dispensers sold through major retailers in the United States and Canada. Principles of Consolidation Our consolidated financial statements include the accounts of Primo and our wholly-owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. Our consolidated statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Use of Estimates The preparation of our financial statements in conformity with U.S. GAAP requires us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. To the extent there are material differences between these estimates and actual results, our consolidated financial statements may be affected. Some of the more significant estimates include valuation of inventories, future cash flows associated with long-lived assets, fair value assumptions in analyzing valuation of intangible assets, assumptions involved in valuing equity awards, valuation of deferred taxes and allowance for sales returns. Discontinued Operations As described in Note 3, during 2012, we committed to a plan to sell the assets of the sparkling beverage appliances, flavorings, CO2 cylinders and accessories business sold under the Flavorstation brand (the “Disposal Group”). We determined that the Disposal Group meets the criteria for classification as discontinued operations. As a result, the results of operations and financial position of the Disposal Group for the current and prior periods are reflected as discontinued operations. The primary activities of our discontinued operations relate to the resolution of contingencies and other matters that arose from and that are directly related to the operations of the Disposal Group before its disposal. DS Services Agreement On November 12, 2013, we entered into a strategic alliance agreement (the “DS Services Agreement”) with DS Services of America, Inc. (“DS Services”) pursuant to which DS Services has become our primary bottler and distributor and provider of exchange and supply services for the Exchange business in the United States. Pursuant to the DS Services Agreement, during 2015, we also completed the transition of DS Services retail customers to Primo. Revenue Recognition Revenue is recognized for the sale of multi-gallon purified bottled water upon either the delivery of inventory to the retail store or the purchase by the consumer. Revenue is either recognized as an exchange transaction (where a discount is provided on the purchase of a multi-gallon bottle of purified water for the return of an empty multi-gallon bottle) or a non-exchange transaction. Revenues on exchange transactions are recognized net of the exchange discount. Self-service refill water revenue is recognized as the filtered water is purchased by the consumer or retailer, which is measured by the water dispensing equipment meter. Revenue is recognized for the sale of our water dispenser products when title is transferred to our retail customers. We have no contractual obligation to accept returns nor do we guarantee sales. However, we will at times accept returns or issue credits for manufacturer defects or that were damaged in transit. Revenues are recognized net of an estimated allowance for returns using an average return rate based upon historical experience. In addition, we offer certain incentives such as coupons and rebates that are netted against and reduce net sales in the consolidated statements of operations. With the purchase of certain of our water dispensers we include a coupon for a free multi-gallon bottle of purified water. No revenue is recognized with respect to the redemption of the coupon for a free multi-gallon bottle of water and the cost of the multi-gallon bottle of purified water is included in cost of sales. Cash All highly liquid investments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. The Company had $507 and $0 in cash equivalents at December 31, 2015 and 2014, respectively. Accounts Receivable All trade accounts receivable are due from customers located within the United States and Canada. We maintain an allowance for sales discounts, rebates and promotions based on our arrangements with customers. Accounts receivable, net included allowances for sales discounts, rebates and promotions of $586 and $1,212 at December 31, 2015 and 2014, respectively. Accounts receivable, net includes allowances for doubtful accounts of $101 and $107 at December 31, 2015 and 2014, respectively. The allowance for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis. Judgments are made with respect to the collectability of accounts receivable based on historical experience and current economic trends. Actual losses could differ from those estimates. Accounts receivable, net includes an allowance for returns of $965 and $988 at December 31, 2015 and 2014, respectively. The allowance for returns is computed using an average return rate based upon historical experience. Beginning Balance Amounts Charged or (Credited) to Expense or Revenue Deductions Ending Balance Allowance for doubtful accounts Year Ended December 31, 2015 $ 107 1 (7 ) $ 101 Year Ended December 31, 2014 $ 321 (273 ) 59 $ 107 Year Ended December 31, 2013 $ 792 (275 ) (196 ) $ 321 Allowance for returns Year Ended December 31, 2015 $ 988 2,453 (2,476 ) $ 965 Year Ended December 31, 2014 $ 989 2,714 (2,715 ) $ 988 Year Ended December 31, 2013 $ 1,017 2,447 (2,475 ) $ 989 Inventories Our water dispenser inventories consist primarily of finished goods and are valued at the lower of cost or market value, with cost determined using the first-in, first-out (FIFO) method. The cost basis of multi-gallon purified bottled water held on consignment at retail store locations is the amount paid to independent distributors who deliver our water. Bottles Bottles consist of three- and five- gallon refillable polycarbonate bottles used in our exchange business and are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of two years. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Internal and external costs incurred to acquire and create internal use software are capitalized and amortized over the useful life of the software. Depreciation and amortization is generally calculated using straight-line methods over estimated useful lives that range from two to twelve years, taking into account estimated salvage values for certain assets. We incur maintenance costs on our major equipment. Maintenance, repair and minor refurbishment costs are charged to expense as incurred, while additions, renewals, and improvements are capitalized. Customer Bottle Deposits In our Canadian Exchange business, we collect a refundable deposit on each customer’s initial purchase of our water. If a customer decides to exit our program, the deposit is refunded. At December 31, 2015 and 2014, customer bottle deposits of $689 and $707, respectively, were reported in accrued expenses and other current liabilities on our Consolidated Balance Sheets. We estimate a portion of deposits which, based on historical experience, we do not believe will be refunded to customers. The customer bottle deposit liability was reduced by $187 and $215 for 2015 and 2014, respectively, for such estimates. Intangible Assets We classify intangible assets into two categories: (1) intangible assets with definite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, our long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives. Intangible assets that are deemed to have indefinite lives are tested for impairment annually, as of December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test for indefinite-lived intangibles consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. Long-Lived Assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Stock-Based Compensation We estimate the grant date fair value of equity awards and amortize this value over the performance or service period. We measure the fair value of awards granted under the Primo Water Corporation Value Creation Plan (the “VCP”) and stock options using a Black-Scholes option pricing model which incorporates multiple complex and subjective inputs and assumptions ( see These variables include the expected term of the award, the expected stock price volatility over the expected term and risk-free interest rate. Compensation expense is generally recognized on a straight-line basis for over the service period. For awards with performance conditions, we begin recognizing compensation expense when it becomes probable that the performance condition will be attained. Research, Development and Engineering Research, development and engineering costs, primarily related to the design and innovation of water dispensers, are expensed as incurred. Advertising Costs Costs incurred for producing and distributing advertising and advertising materials are expensed as incurred or the first time the advertising takes place. Advertising costs totaled $90 and $28 for 2015 and 2014, respectively, and are included in selling, general, and administrative expenses. Concentrations of Risk Our principal financial instruments subject to potential concentration of credit risk are cash, trade receivables and accounts payable. We invest our funds in highly rated institutions and believe the financial risk associated with cash in excess of federally insured amounts is minimal. At December 31, 2015 and 2014, $1,486 and $175, respectively, of our cash on deposit exceeded the insured limits. We perform ongoing credit evaluations of our customers’ financial condition and maintain allowances for doubtful accounts that we believe are sufficient to provide for losses that may be sustained on realization of accounts receivable. We had three customers that accounted for approximately 39%, 19% and 15% of sales in 2015. Each of these customers purchased products from both our Water and Dispensers Segments. We had two customers that accounted for approximately 40% and 22% of sales in 2014 and two customers that accounted for approximately 45% and 25% of sales in 2013. These two customers purchased products from both our Water and Dispensers Segments. We had three customers that accounted for approximately 41%, 14% and 14% of total trade receivables at December 31, 2015 and three customers that accounted for approximately 41%, 18% and 10% of total trade receivables at December 31, 2014. Basic and Diluted Earnings (Loss) Per Share Earnings (loss) per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted amounts per share include the dilutive impact, if any, of our outstanding potential common shares, such as stock options, restricted stock units and warrants. Diluted amounts per share also include the dilutive impact, if any, of contingently issuable shares related to awards under the VCP; As performance-based awards, such dilutive impact is based on the number of shares, if any, that would be issuable under the terms of the VCP if the end of the reporting period were the end of the contingency period. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net loss per common share. Income Taxes We account for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that utilization is not presently more likely than not. As required by U.S. GAAP, we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Cumulative Translation Adjustment and Foreign Currency Transactions The local currency of our operations in Canada is considered to be the functional currency. Assets and liabilities of the Canada subsidiary are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations are translated using the average exchange rate prevailing throughout the period. The effects of unrealized exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are presented as foreign currency translation adjustments, net included in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). With the exception of transaction gains and losses on certain intercompany balances which we have determined are of a long-term investment nature, realized gains and losses on foreign currency transactions are included in the consolidated statements of operations. At December 31, 2015 and 2014, accumulated other comprehensive loss balances of $1,412 and $814, respectively, were related to unrealized foreign currency translation adjustments and transaction gains and losses on certain intercompany balances. Non-recurring costs Transactions that are unusual in nature or which occur infrequently, but not both, are reported as non-recurring costs on our consolidated statements of operations. Non-recurring costs consist primarily of transition and other expenses associated with the DS Services Agreement as well as other legal and severance expenses. Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance which supersedes existing revenue recognition requirements in U.S. GAAP. The updated guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the guidance establishes a five-step approach for the recognition of revenue. In August 2015, the FASB issued updated guidance to defer the effective date of this update. As a result, the update is currently effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements. Going Concern In August 2014, the Financial Acccounting Standards Board (FASB) issued updated guidance clarifying management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The updated guidance requires that an entity’s management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The update is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. The amendment is not expected to have an impact on our consolidated financial statements. Presentation of Debt Issuance Costs In April 2015, the FASB issued updated guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The update is effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. We do not expect the adoption of this updated guidance to have a significant impact on our consolidated financial statements. Inventory In July 2015, the FASB issued updated guidance requiring the measurement of certain inventory at the lower of cost and net realizable value. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. We do not expect the adoption of this updated guidance to have a significant impact on our consolidated financial statements. Income Taxes In November 2015, the FASB issued updated guidance requiring entities to separate deferred income tax liabilities and assets into current and noncurrent amounts in the balance sheet. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. We have early adopted the amendments of this updated guidance during the year ended December 31, 2015. Adoption of the updated guidance did not have a significant impact on our consolidated financial statements. Leases In February 2016, the FASB issued updated guidance requiring lessees to recognize for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The update is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | 2. Intangible Assets Intangible assets are summarized as follows: December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Intangible Assets Weighted Average Life (Years) Gross Carrying Amount Accumulated Amortization Net Intangible Assets Weighted Average Life (Years) Amortized intangible assets: Customer relationships $ 14,977 $ (7,164 ) $ 7,813 15.0 $ 15,593 $ (6,508 ) $ 9,085 15.0 Patent costs 1,205 (1,192 ) 13 3.0 1,195 (1,084 ) 111 3.0 Trademarks 255 (7 ) 248 15.0 256 - 256 N/A Total $ 16,437 $ (8,363 ) $ 8,074 15.0 $ 17,044 $ (7,592 ) $ 9,452 14.8 Amortization expense for intangible assets was $984, $1,215 and $1,410 in 2015, 2014 and 2013, respectively. Amortization expense related to intangible assets, which is an estimate for each future year and subject to change, is as follows: 2016 $ 846 2017 825 2018 818 2019 816 2020 816 Thereafter 3,953 $ 8,074 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 3. Discontinued Operations During 2012, we committed to a plan to sell the assets of the Disposal Group, which includes sparkling beverage appliances, flavorings, CO 2 Accrued expenses and other current liabilities of the disposal group of $15 and $23 at December 31, 2015 and 2014, respectively, are presented within accrued expenses and other current liabilities on the consolidated balance sheets. Other long-term liabilities of the disposal group of $1,942 and $1,987 at December 31, 2015 and 2014, respectively, are presented within liabilities of disposal group, net of current portion, and other long-term liabilities on the consolidated balance sheets. The operating results classified as discontinued operations were as follows: Years ended December 31, 2015 2014 2013 Net sales $ – $ 219 $ 2,706 Operating costs and expenses: Cost of sales 7 264 3,020 Selling, general and administrative expenses 93 358 479 Barter credit impairment 196 – 1,069 Total operating costs and expenses 296 622 4,568 Loss from discontinued operations $ (296 ) $ (403 ) $ (1,862 ) |
Bottles
Bottles | 12 Months Ended |
Dec. 31, 2015 | |
Bottles [Abstract] | |
Bottles | 4. Bottles Bottles are summarized as follows at December 31: 2015 2014 Cost $ 4,653 $ 4,747 Less accumulated depreciation (965 ) (1,173 ) $ 3,688 $ 3,574 Depreciation expense for bottles was $2,346, $2,452 and $2,186 for 2015, 2014 and 2013, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment is summarized as follows at December 31: 2015 2014 Machinery and equipment $ 7,209 $ 6,940 Vending equipment 26,155 25,249 Racks and display panels 32,065 30,047 Software and computer equipment 4,298 4,227 Vehicles under capital leases 772 427 Equipment not in service 659 721 Other 17 324 71,175 67,935 Less accumulated depreciation and amortization (39,178 ) (33,700 ) $ 31,997 $ 34,235 We recorded impairments of $104 and $824 for 2015 and 2014, respectively, associated with certain Refill equipment that is not expected to generate future cash flows sufficient to recover the net book value of the equipment. The estimated salvage value of the impaired equipment of $31 and $58 is reported as part of equipment not in service within property and equipment, net on our consolidated balance sheets at December 31, 2015 and 2014, respectively. The impairments are reported within loss on disposal and impairment of property and equipment on our consolidated statements of operations. When we replace Refill equipment at a customer location with new equipment, the remaining net book value, adjusted for any salvage or residual value, associated with the original equipment and related capitalized installation costs is removed resulting in a loss on disposal in some instances. The new equipment and related installation costs are capitalized and depreciated over the estimated useful life of the asset. Such disposals resulted in losses of $430, $573 and $165 for 2015, 2014 and 2013, respectively, which are reported within loss on disposal and impairment of property and equipment on our consolidated statements of operations. During 2014, as part of the transition of bottling and distribution responsibilities in our Exchange business in the U.S. to DS Services, we entered into arrangements to sell or otherwise dispose of certain racks and machinery. The disposals resulted in a loss of $612 which is reported within loss on disposal and impairment of property and equipment on our consolidated statements of operations for 2014. The our loss on disposal and impairment of property and equipment: Years Ended December 31, 2015 2014 2013 Refill vending equipment impairments $ 104 $ 824 $ – Loss on disposals of Exchange racks and machinery associated with DS Services transition – 612 – Loss on disposal of refill vending equipment and related installation costs 430 573 165 Loss (gain) on other disposals (34 ) 95 (39 ) $ 500 $ 2,104 $ 126 During the fourth quarter of 2015, we reduced our estimate of salvage value and extended the useful life of certain Refill equipment which resulted in incremental depreciation expense of $634 for the last three months of 2015 reported in depreciation and amortization in our consolidated statements of operations. These changes in estimates were made in light of recent experience with the equipment, future plans and current facts and circumstances. Depreciation expense for property and equipment was $7,103, $6,988 and $7,737 for 2015, 2014 and 2013, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are summarized as follows at December 31: 2015 2014 Accrued payroll and related items $ 1,718 $ 905 Accrued professional expenses 37 319 Accrued interest 74 460 Accrued sales tax payable 52 373 Accrued distributor and service provider payments 309 1,043 Accrued sales allowances 541 166 Customer bottle deposits 689 707 Other 313 347 Current liabilities of disposal group held for sale 15 23 $ 3,748 $ 4,343 |
Debt, Capital Leases and Notes
Debt, Capital Leases and Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt, Capital Leases and Notes Payable [Abstract] | |
Debt, Capital Leases and Notes Payable | 7. Debt, Capital Leases and Notes Payable Debt, capital leases and notes payable are summarized as follows: December 31, 2015 December 31, 2014 Revolving Credit Facility $ – $ 4,000 Term Notes 20,000 20,000 Capital leases 461 304 Notes payable – 12 20,461 24,316 Less current portion (172 ) (106 ) Long-term debt, notes payable and capital leases, net of current portion $ 20,289 $ 24,210 Revolving Credit Facility and Term Notes On June 20, 2014, we entered into a note purchase agreement (the “Credit Agreement”) that provides up to $35,000 in secured indebtedness and consists of a $15,000 revolving credit facility (the “Revolving Credit Facility”) and $20,000 in term notes (the “Term Notes”). The Revolving Credit Facility matures on June 20, 2019 with all outstanding borrowings and accrued interest to be repaid on such date and the Term Notes mature on June 20, 2021 with all outstanding indebtedness and accrued interest to be repaid on such date. The Revolving Credit Facility and Term Notes are secured on a first priority basis by substantially all of our assets. Interest on outstanding amounts owed under the Term Notes is payable quarterly at the rate of 7.8%. Principal payments under the Term Notes are payable in five annual $4,000 installments beginning on June 20, 2017. Total costs associated with the Term Notes were $338, which have been capitalized as deferred loan costs and are being amortized as part of interest expense over the term of the Term Notes. A Interest on outstanding borrowings under the Revolving Credit Facility is payable at our option at either (i) the Base Rate, defined as the greater of the Prime Rate, the Federal Funds Effective Rate plus 0.50% or the LIBOR for a three-month interest period plus 1.0%, plus in each such case a margin of 3.25% or (ii) Total costs associated with the Revolving Credit Facility were $214, which have been capitalized as deferred loan costs and are being amortized as part of interest expense over the term of the Revolving Credit Facility. A As of December 31, 2015, we had no outstanding borrowings and our remaining availability was $15,000 under the Revolving Credit Facility. The Credit Agreement contains a number of affirmative and restrictive financial covenants (including limitations on dissolutions, sales of assets, investments, and indebtedness and liens) that use adjusted EBITDA (“Adjusted EBITDA”). Adjusted EBITDA is a non-U.S. GAAP financial measure that is calculated as income (loss) from continuing operations before depreciation and amortization; interest expense; non-cash, stock-based compensation expense; non-recurring costs; and loss on disposal and impairment of property and equipment and other. The primary covenants included in the Revolving Credit Facility are as follows: (i) a ratio of consolidated total indebtedness to Adjusted EBITDA of no more than 2.75 to 1.00 as of the last day of each month (measured on a trailing four-quarter basis), (ii) a consolidated tangible net worth requirement measured at the end of each month of no less than $11,000 plus 50% of consolidated net income on a cumulative basis for each fiscal quarter beginning with the quarter ended June 30, 2014 (net losses are disregarded), and (iii) a ratio of Adjusted EBITDA to consolidated fixed charges of no less than 1.00 to 1.00 as of the last day of each quarter (measured on a trailing four-quarter basis). At December 31, 2015 we were in compliance with all covenants with: (i) a consolidated total indebtedness to Adjusted EBITDA ratio of 1.13 to 1.00, (ii) consolidated tangible net worth of $18,061 compared to the adjusted minimum of $12,156 and (iii) an Adjusted EBITDA to consolidated fixed charges ratio of 1.80 to 1.00. We repaid borrowings outstanding under our prior credit facilities upon entering into the Revolving Credit Facility on June 20, 2014. In connection with the closing of the new credit facility, we immediately expensed the remaining $883 in deferred loan costs, $583 in debt discount and $677 in original issue discount related to the prior senior revolving credit facility and prior term loans. Interest expense, inclusive of the write-off described above, related to deferred loan cost amortization, debt discount and original issue discount amortization for the prior senior revolving credit facility and the prior term loans totaled $2,718 for 2014. In addition, we paid a $705 early payment penalty associated with the prior term loans. We periodically enter into capital leases for service vehicles for field operations and had 33 such capital leases outstanding at December 31, 2015. The aggregate future maturities of debt, capital leases and notes payable as of December 31, 2015 were as follows: Capital leases Term Notes Total 2016 $ 249 $ – $ 249 2017 247 4,000 4,247 2018 151 4,000 4,151 2019 – 4,000 4,000 2020 – 4,000 4,000 Thereafter – 4,000 4,000 $ 647 $ 20,000 $ 20,647 Less: amounts representing estimated executory costs (159 ) – (159 ) Less: amounts representing interest (27) – (27) $ 461 $ 20,000 $ 20,461 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Common Stock Warrants A prior credit facility was accompanied by detachable warrants to purchase 1,731 shares of our common stock (the “Comvest Warrant”), including detachable warrants to purchase 131 shares of our common stock received by five of our current directors or stockholders (the “Insider Participants”). The Comvest Warrant is exercisable at an exercise price of $2.30 per share and expires April 30, 2020. For the non-Insider Participants, the exercise price of their portion of the Comvest Warrant was adjusted to $1.20 on November 6, 2012. No changes were made to the warrants we issued to the five directors and stockholders of Primo. During 2015, we issued 973 shares of our common stock upon partial cashless exercises of 1,200 shares of the Comvest Warrant. During 2014, we issued 292 shares of our common stock upon partial cashless exercises of 400 shares of the Comvest Warrant. At December 31, 2015, the warrants to purchase 131 shares held by the Insider Participants represented the only outstanding portion of the Comvest Warrant. As part of the DS Services Agreement, on January 1, 2014, we granted DS Services a warrant to purchase 475 shares of our common stock (the “DS Services Warrant”). The DS Services Warrant is immediately exercisable at an exercise price of $3.04 per share and expires January 1, 2021. The warrant’s fair value of $589 was determined using the Black-Scholes pricing model and was recorded in common stock warrants on our consolidated balance sheets and in non-recurring costs on our consolidated statements of operations for 2014. A summary of common stock warrant activity for the years ended December 31, 2015 and 2014 is presented below: Warrants Weighted Average Exercise Price Weighted Average Remaining Life (Years) Warrants outstanding, December 31, 2013 2,602 $ 4.95 5.34 Grant of DS Services Warrant 475 $ 3.04 Partial exercises of Comvest Warrant (400 ) $ 1.20 Warrants outstanding, December 31, 2014 2,677 $ 5.14 4.50 Partial exercises of Comvest Warrant (1,200 ) $ 1.20 Warrants outstanding, December 31, 2015 1,477 $ 8.36 2.81 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Overview Our Board of Directors has approved the Primo Water Corporation 2004 Stock Plan (the “2004 Plan”) for employees, including officers, non-employee directors and non-employee consultants. The Plan provides for the issue of incentive or nonqualified stock options and restricted common stock. We do not intend to issue any additional awards under the 2004 Plan; however, all outstanding awards will remain in effect and will continue to be governed by their existing terms. Our stockholders have approved the 2010 Omnibus Long-Term Incentive Plan (the “2010 Plan”, or, together with the 2004 Plan, the “Plans”). The 2010 Plan is limited to employees, officers, non-employee directors, consultants and advisors. The 2010 Plan provides for the issuance of incentive or nonqualified stock options, restricted stock, stock appreciation rights, restricted stock units, cash- or stock-based performance awards and other stock-based awards. Any shares of Common Stock subject to stock options granted under the 2004 Plan that are cancelled, expired, forfeited, settled in cash or otherwise terminated without delivery of shares of common stock will be available for issuance under the 2010 Plan. We have 4,150 shares of common stock authorized for issuance under the Plans. To date all equity awards under the 2010 Plan have consisted of nonqualified stock options, restricted stock and restricted stock units. As of December 31, 2015, there were 1,387 shares available for future issuance under the 2010 Plan. Total non-cash stock-based compensation expense by award type for all of our plans, all of which is included in selling, general and administrative expenses on our consolidated statements of operations, was as follows: Years Ended December 31, 2015 2014 2013 Stock options $ 541 $ 420 $ 448 Restricted stock 693 997 586 Value Creation Plan 1,310 2,566 – Employee Stock Purchase Plan 57 40 – $ 2,601 $ 4,023 $ 1,034 Stock Options under the Plans Stock options are granted with an exercise price equal to 100% of the fair market value per share of the common stock on the date of grant. For purposes of determining compensation expense for stock option awards, the fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The key assumptions used in the Black-Scholes model were as follows: 2015 2014 2013 Expected life of options in years 6.0 - 6.3 6.0 - 6.3 6.3 Risk-free interest rate 1.7% - 1.8% 1.8% - 2.0% 1.1% - 2.0% Expected volatility 43.0% - 45.0% 45.0% - 47.0% 47.0% Dividend yield 0.0% 0.0% 0.0% The risk free interest rate is based on the U.S. Treasury rate for the expected life at the time of grant. Our expected volatility is based on the average long-term historical volatilities of peer companies. We intend to continue to consistently use the same group of publicly traded peer companies to determine expected volatility in the future until sufficient information regarding volatility of our share price becomes available or the selected companies are no longer suitable for this purpose. Also, due to our limited trading history, we are using the “simplified method” to calculate expected holding periods, which represents the period of time that options granted are expected to be outstanding. We will continue to use this method until we have sufficient historical exercise experience to give us confidence that our calculations based on such experience will be reliable. The dividend yield assumption is based on our current intent not to issue dividends. A summary of stock option activity for the year ended December 31, 2015, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value Options outstanding, December 31, 2014 1,594 $ 3.61 Granted 443 $ 5.47 Exercised (61 ) $ 1.86 Forfeited (18 ) $ 7.71 Options outstanding, December 31, 2015 1,958 $ 4.05 7.3 $ 8,911 Options vested and expected to vest, December 31, 2015 1,860 $ 4.03 7.2 $ 8,563 Options exercisable, December 31, 2015 1,168 $ 3.77 6.3 $ 6,104 The weighted-average fair value per share of the options granted during 2015, 2014 and 2013 was $2.46, $1.66 and $1.02, respectively. The total intrinsic value of the options exercised during 2015, 2014 and 2013 was $241, $209 and $44, respectively. As of December 31, 2015, there was $1,042 of unrecognized compensation expense, net of estimated forfeitures, related to outstanding stock options which is expected to be recognized over a weighted-average period of 2.6 years. Cash received from option exercises for 2015, 2014 and 2013 was $113, $110 and $66, respectively. Restricted Stock under the Plans A summary of restricted stock activity for the year ended December 31, 2015 is presented below: Number of Shares Weighted Average Grant Date Price Per Share Unvested at December 31, 2014 37 $ 2.29 Granted 90 $ 5.19 Vested (112 ) $ 4.47 Unvested at December 31, 2015 15 $ 3.35 The fair value of restricted stock awards is estimated based on the closing price of our stock on the date of grant, and, for the purposes of expense recognition, the total new number of shares expected to vest is adjusted for estimated forfeitures. As of December 31, 2015, there was $32 of unrecognized compensation expense, net of estimated forfeitures, related to non-vested restricted stock which is expected to be recognized over a weighted-average period of 2.3 years. Employee Stock Purchase Plan Our stockholders have approved the 2010 Employee Stock Purchase Plan (the “ESPP”) which provides for the purchase of common stock and is generally available to all employees. Shares are purchased at six-month intervals at 85% of the lower of the fair market value on the first day of the offering or the last day of each six-month purchase period. Employees may purchase shares having a fair value not exceeding 15% of their annual compensation, or $25, whichever is less. During the year ended December 31, 2015, employees purchased 36 shares at an average price of $3.66 per share. At December 31, 2015, there were 65 shares of common stock available for future issuance under the ESPP. Value Creation Plan On May 7, 2012, we established the VCP, which was subsequently amended. The VCP provides awards comprised of cash or equity grants for eligible employees as determined by the Compensation Committee, based on the attainment of certain performance-based targets. The Company’s intention is that all awards under the VCP will be in the form of equity grants. The VCP provides for the issuance of up to three separate awards to eligible employees based on our attainment of financial targets of at least $15,000, $24,000 and $28,000 in Adjusted EBITDA for any fiscal year between 2014 and 2019. Once the Company attains the $15,000 Adjusted EBITDA target level for a given fiscal year, the Adjusted EBITDA target level would increase to $24,000 for subsequent fiscal years; and once Primo attains the $24,000 Adjusted EBITDA target level for a given fiscal year, the Adjusted EBITDA target level would increase to $28,000 for subsequent fiscal years. The award pool for the first issuance would be equal to 15.0% of the market capital appreciation of our stock from May 11, 2012 to the date that is two trading days after public announcement of financial results for the fiscal year in which the $15,000 target is attained. The award pool for the second issuance would be equal to 17.5% of the market capital appreciation of our stock from the date of the first issuance to the date that is two days after public announcement of the financial results for the fiscal year in which the $24,000 target is attained. The award pool for the third issuance would be equal to 20.0% of the market capital appreciation of our stock from the date of the second issuance to the date that is two days after public announcement of the financial results for the fiscal year in which the $28,000 target is attained. Awards under the VCP are dependent on the Company being in compliance (including via a waiver) with all covenants under any outstanding loan agreements. A participant in the VCP who leaves voluntarily, is dismissed for cause, or is terminated by the Company prior to issuance of an award will forfeit all rights to their current-year award and future awards. Any portion of an award attributable to a terminated participant may be reallocated to other eligible employees under the VCP, such that the total award pool would be unchanged. As equity-classified awards, we determine the total compensation expense for awards under the VCP on their grant date based on the fair value method using the Black-Scholes option pricing model. The key assumptions used in the Black-Scholes model for the VCP were as follows: $15,000 Adjusted EBITDA Target Award Total fair value $4,130 Assumptions: May 11, 2012 closing stock price $1.39 Fair value measurement dates stock prices $1.76 - $3.96 Expected life of awards in years 1.4 - 2.8 Risk-free interest rate 0.3% - 0.6% Expected volatility 41.3% - 46.1% Dividend yield 0.0% Assumptions related to risk-free interest rate, expected volatility and dividend yield with respect to the VCP are developed using an approach consistent with that described above for stock options issued under the Plans. The expected life of awards under the VCP is determined based on the period of time between their grant date and the expected date of the first issuance. For awards without an established grant date, the expected life is based on the period of time between the reporting date and the expected date of the first issuance under the VCP. As the VCP consists of awards with performance-based targets, we begin recognizing compensation expense only when it becomes probable that the performance-based target will be attained. During the fourth quarter of the year ended December 31, 2014, we concluded that it is probable that the $15,000 Adjusted EBITDA target would be attained in the 2015 fiscal year. As such, we recorded non-cash expense of $2,566 for the year ended December 31, 2014. The expense recorded for 2014 represented the cumulative catch-up of expense based on the portion of the requisite service period that has already past; that is, the period between the earlier of (1) the grant date of the awards, or (2) the service inception date of the awards and December 31, 2014. During 2015, we recorded non-cash expense of $1,310 associated with the $15,000 Adjusted EBITDA target. As of December 31, 2015, there was $254 of unrecognized compensation expense related to the VCP which is expected to be recognized in the first quarter of 2016, when the issuance of awards related to the $15,000 Adjusted EBITDA target which was attained during 2015 is currently expected to occur. As of December 31, 2015, neither a grant date nor a service inception date has been attained with respect to the $24,000 Adjusted EBITDA target and, as such, no expense has been recorded to-date for that target. Once a grant date occurs with respect to the $24,000 Adjusted EBITDA target during the first quarter of 2016, we will perform an on-going analysis to determine probability of achievement of the $24,000 Adjusted EBITDA target. If attainment becomes probable prior to the expiration of the plan, we will then begin to recognize expense related to that target. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Operating Leases We lease office space, warehouse space and vehicles under various lease arrangements. Total rental expense from continuing operations was $1,318, $1,239 and $1,209 for 2015, 2014 and 2013, respectively. At December 31, 2015, future minimum rental commitments under non-cancelable operating leases were as follows: 2016 $ 363 2017 337 2018 19 2019 19 2020 19 Thereafter 2 Total $ 759 Florida Concentrates Suit On October 16, 2012, Primo was served with a summons and complaint in a lawsuit filed in Florida state court (the Circuit Court for the Twentieth Judicial District in Collier County, Florida) on September 26, 2012. Plaintiffs in the lawsuit are Florida Concentrates International, LLC (a Florida limited liability company), Florida Sparkling DS, LLC (a Florida limited liability company), and Didier Hardy (a Florida resident and the principal of the LLC plaintiffs). Susan and Scott Ballantyne (alleged to be Florida residents) and SDS-IC are also named as defendants. Plaintiffs' allegations included breach of contract, misappropriation of trade secrets and certain additional claims, and plaintiffs seek monetary damages. This lawsuit was voluntarily dismissed with prejudice on February 24, 2016. Omnifrio Single-Serve Beverage Business Deferred purchase price payments totaling $1,942 and $1,987 were included within liabilities of disposal group, net of current portion, and other long-term liabilities on the consolidated balance sheets as of December 31, 2015 and 2014, respectively. These payments were related to the April 11, 2011 acquisition of certain intellectual property and other assets from the seller, Omnifrio Beverage Company LLC (“Omnifrio”). On July 19, 2013, we entered into a conditional settlement and release agreement with Omnifrio and certain other parties pursuant to which we agreed to, among other things, use commercially reasonable efforts to sell the assets purchased from Omnifrio in April 2011 and to provide Omnifrio certain amounts of the proceeds of any such sale in exchange for Omnifrio agreeing to release us from any claims related to the milestone payments included in our original purchase agreement with Omnifrio and, upon the sale of such assets, to release us from any claims related to the deferred purchase price payments included in such agreement. The conditional settlement and release agreement was amended on July 19, 2014, October 18, 2014, April 18, 2015, June 25, 2015 and January 1, 2016, each time to extend its term. The conditional settlement and release agreement is currently in effect through June 30, 2016. Prism Arbitration On August 5, 2014, Primo Distribution, LLC (also known as Prism Distribution) initiated an arbitration proceeding against us, claiming less than $1,000 in damages for alleged breach of contract. The arbitration was filed with the American Arbitration Association, and was amended on December 19, 2014 to include additional claims for conversion, unfair and deceptive trade practices, fraud, and unjust enrichment. Damages claimed remain less than $1,000. We do not believe that the claim has any merit and plan to vigorously contest and defend against it. No accrual has been made for this claim at December 31, 2015, as we do not currently believe that any losses are probable. Texas Regional Operator Litigation/Arbitration On August 8, 2014, a lawsuit was commenced against us by our regional operators Artesia Springs, LLC, HOD Enterprises, L.P., and BBB Water, Inc. (the “ROs”) in the State of Texas. DS Services is also named as a defendant in the lawsuit. The lawsuit was filed in the 166th Judicial District Court of Bexar County, Texas, and was served upon us on August 25, 2014. We removed the lawsuit to the United States District Court for the Western District of Texas on September 5, 2014. The claims alleged against us in the lawsuit are breach of contract, conspiracy and fraud, and the ROs seek unspecified monetary damages as well as injunctive relief. On January 31, 2015, the District Judge dismissed the case without prejudice and indicated that to pursue their claims, the plaintiffs would have to proceed with alternative dispute resolution in North Carolina as provided in their contracts. On April 10, 2015, the ROs initiated an arbitration proceeding with the American Arbitration Association (“AAA”). The claims asserted are essentially the same as the ones made in their lawsuit described above. The ROs most recently re-filed their consolidated claims in the arbitration proceeding on September 15, 2015, and we filed counterclaims against Artesia Springs, LLC and HOD Enterprises, L.P. on October 20, 2015. We resolved the claims asserted by BBB Water, Inc. as of December 31, 2015, and BBB Water, Inc. is no longer a party to the arbitration proceedings. We do not believe that the ROs’ claims have any merit and plan to vigorously contest and defend against them. No accrual has been made for this claim at December 31, 2015 as we do not currently believe that any loss which may result can be reasonably estimated. An estimate of the possible loss or range of losses cannot be made. Sales Tax We routinely purchase equipment for use in operations from various vendors. These purchases are subject to sales tax depending on the equipment type and local sales tax regulations; however, we believe certain vendors have not assessed the appropriate sales tax. For purchases that are subject to sales tax in which we believe the vendor did not assess the appropriate amount, we accrue an estimate of the sales tax liability we ultimately expect to pay. Other Contingencies From time to time, we are involved in various claims and legal actions that arise in the normal course of business. Management believes that the outcome of such claims and legal actions will not have a significant adverse effect on our financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes A reconciliation of the statutory U.S. federal tax rate and effective tax rates is as follows: 2015 2014 2013 Federal statutory taxes 34.0 % 34.0 % 34.0 % State income taxes, net of federal tax benefit 4.8 % 3.7 % 3.8 % Foreign taxes less than the domestic rate 3.7 % (0.5 %) (0.4 %) Permanent differences 1.5 % (0.2 %) (0.2 %) Change in valuation allowance (154.9 %) (35.6 %) (27.6 %) Changes in rates and other true-ups 110.9 % 0.0 % (9.1 %) Other 0.0 % (1.4 %) (0.5 %) 0.0 % 0.0 % 0.0 % Deferred income taxes are recorded based upon differences between the financial reporting and income tax basis of assets and liabilities. The following deferred income taxes are recorded: 2015 2014 Deferred tax assets: Federal net operating loss carryforward $ 46,183 $ 45,537 State loss carryforward 3,706 4,400 Goodwill 19,688 22,339 Other intangible assets 3,071 3,431 Allowance for bad debts 600 876 Stock-based compensation 2,520 2,711 Accrued expenses 374 95 Inventory 39 49 Fixed assets – 133 Other 1,266 1,215 Total gross deferred tax assets 77,447 80,786 Deferred tax liabilities: Fixed assets (139 ) – Total gross deferred tax liabilities (139 ) – Valuation allowance (77,308 ) (80,786 ) Total net deferred liability $ - $ - In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, available taxes in the carryback periods, projected future taxable income, and tax planning strategies in making this assessment. Accordingly, we have provided valuation allowances to fully offset the net deferred tax assets at December 31, 2015 and 2014. The $3,478 net decrease and the $4,475 net increase in the valuation allowance for 2015 and 2014, respectively, primarily reflects the net change in the federal and state loss carryforward deferred tax assets. We have approximately $135,832 in U.S. federal net operating loss carryforwards that expire between 2025 through 2035, approximately $9,621 in Canadian federal and provincial net operating loss carryforwards that expire between 2030 through 2035 and approximately $112,310 in state loss carryforwards that expire between 2015 through 2035. Section 382 of the U.S. Internal Revenue Code imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. We believe that an annual limit will be imposed by Section 382, however, should taxable income be generated in future years, we expect to be able to utilize our net operating loss carryforwards during their respective carryforward periods We have no unrecognized tax benefits and there are no uncertain tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements Fair value rules currently apply to all financial assets and liabilities and for certain nonfinancial assets and liabilities that are required to be recognized or disclosed at fair value. For this purpose, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 — quoted prices in active markets for identical assets and liabilities. • Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities. • Level 3 — unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. At December 31, 2015, we held financial assets that are required to be measured at fair value on a recurring basis. The financial assets held by the Company and the fair value hierarchy used to determine their fair values are as follows: Total Fair Value Fair Value Measurement Using Level 1 Current assets: Cash equivalents $ 507 $ 507 Total $ 507 $ 507 At December 31, 2014, barter credits reported in prepaid and other current assets and in other assets on our consolidated balance sheets were measured at their estimated fair values of $10 and $187, respectively, on a nonrecurring basis. As of December 31, 2015, we recorded a $196 impairment to reflect these barter credits at their current estimated fair value of $0. The barter credits were measured at fair value using significant unobservable inputs, primarily based on the fair value of the products and services to be received upon exchange (Level 3 inputs). At December 31, 2015 and 2014, certain impaired Refill equipment reported in property and equipment, net on our consolidated balance sheets was measured at its estimated fair value of $49 and $58, respectively, on a nonrecurring basis. The fair value is estimated based on the estimated salvage value of certain reusable components of the impaired equipment (Level 3 inputs). The carrying amounts of cash and cash equivalents, accounts receivable, net, accounts payable, and accrued expenses and other current liabilities, approximate their fair values due to their short maturities. Liabilities of the Disposal Group classified as held for sale and reported within accrued expenses and other current liabilities and liabilities of disposal group, net of current portion, and other long-term liabilities on our consolidated balance sheets are presented at their carrying value, which approximates their fair value. Based on borrowing rates currently available to us for loans with similar terms and the variable interest rate for borrowings under our Revolving Credit Facility, the carrying value of debt, capital leases and notes payable approximates fair value. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | 13. Earnings (Loss) Per Share The following table sets forth the calculations of basic and diluted earnings (loss) per share: Years ended December 31, 2015 2014 2013 Basic: Income (loss) from continuing operations $ 2,153 $ (13,064 ) $ (8,844 ) Loss from discontinued operations (296 ) (403 ) (1,862 ) Net income (loss) $ 1,857 $ (13,467 ) $ (10,706 ) Weighted average shares 25,190 24,339 23,935 Basic earnings (loss) per share from continuing operations $ 0.08 $ (0.54 ) $ (0.37 ) Basic loss per share from discontinued operations (0.01 ) (0.01 ) (0.08 ) Basic earnings (loss) per share $ 0.07 $ (0.55 ) $ (0.45 ) Diluted: Income (loss) from continuing operations $ 2,153 $ (13,064 ) $ (8,844 ) Loss from discontinued operations (296 ) (403 ) (1,862 ) Net income (loss) $ 1,857 $ (13,467 ) $ (10,706 ) Weighted average shares 25,190 24,339 23,935 Potential shares arising from stock options, restricted stock, warrants and contingently issuable shares under the VCP 1,811 – – Weighted average shares - diluted 27,001 24,339 23,935 Diluted earnings (loss) per share from continuing operations $ 0.08 $ (0.54 ) $ (0.37 ) Diluted loss per share from discontinued operations (0.01 ) (0.01 ) (0.08 ) Diluted earnings (loss) per share $ 0.07 $ (0.55 ) $ (0.45 ) For the year ended December 31, 2015, diluted amounts per share include the impact of contingently issuable shares related to awards under the VCP. As performance-based awards, such dilutive impact is based on the number of shares that would be issuable under the terms of the VCP if December 31, 2015 were the end of the contingency period with respect to the $15,000 Adjusted EBITDA target, which was achieved during 2015. For the year ended December 31, 2015, stock options and warrants with respect to an aggregate of 1,267 shares, have been excluded from the computation of the number of shares used in the diluted earnings per share because the exercise prices of the options and warrants were greater than the average market price of the underlying common stock and the effect of their inclusion would have been anti-dilutive. For the years ended December 31, 2014 and 2013, stock options, unvested shares of restricted stock, restricted stock units and warrants with respect to an aggregate of 3,154 and 2,611 shares have been excluded from the computation of the number of shares used in the diluted earnings (loss) per share, respectively. These shares have been excluded because we incurred a net loss for each of these periods and their inclusion would be anti-dilutive. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segments [Abstract] | |
Segments | 14. Segments We have two operating segments and two reportable segments: Primo Water (“Water”) and Primo Dispensers (“Dispensers”). Our Water segment sales consist of the sale of multi-gallon purified bottled water (“Exchange”) and our self-service filtered drinking water (“Refill”) offered through retailers in each of the contiguous United States and Canada. Our Water products are offered through point of purchase display racks or self-service filtered water displays and recycling centers that are prominently located at major retailers in space that is often underutilized. Our Dispensers segment sells water dispensers that are designed to dispense Primo and other dispenser-compatible bottled water. Our Dispensers sales are primarily generated through major U.S. retailers, where we recognize revenues for the sale of the water dispensers when title is transferred. We support retail sell-through with domestic inventory. We evaluate the financial results of these segments focusing primarily on segment net sales and segment income (loss) from operations before depreciation and amortization (“segment income (loss) from operations”). We utilize segment net sales and segment income (loss) from operations because we believe they provide useful information for effectively allocating our resources between business segments, evaluating the health of our business segments based on metrics that management can actively influence and gauging our investments and our ability to service, incur or pay down debt. Cost of sales for Exchange consists primarily of costs for bottling, distribution and bottles. Cost of sales for Refill consists primarily of costs associated with routine maintenance of reverse osmosis water filtration systems and filtered water displays as well as costs associated with obtaining meter readings to determine water usage. Cost of sales for Dispensers consists of contract manufacturing, freight and duties. Selling, general and administrative expenses for Water and Dispensers consist primarily of personnel costs for operations support as well as other supporting costs for operating each segment. Expenses not specifically related to operating segments are shown separately as Corporate. Corporate expenses are comprised mainly of compensation and other related expenses for corporate support, information systems and administration. Corporate expenses also include certain professional fees and expenses and compensation of our Board of Directors. The following table presents segment information for each of the last three years: Year ended December 31, 2015 2014 2013 Segment net sales Water $ 89,623 $ 71,360 $ 63,828 Dispensers 37,328 34,962 27,381 $ 126,951 $ 106,322 $ 91,209 Segment income (loss) from operations Water $ 28,835 $ 22,585 $ 17,717 Dispensers 1,851 1,452 827 Corporate (15,339 ) (15,136 ) (10,727 ) Non-recurring costs (275 ) (2,881 ) (777 ) Depreciation and amortization (10,432 ) (10,655 ) (11,333 ) Loss on disposal and impairment of property and equipment (500 ) (2,104 ) (126 ) $ 4,140 $ (6,739 ) $ (4,419 ) Depreciation and amortization expense: Water $ 9,781 $ 9,740 $ 10,057 Dispensers 259 332 575 Corporate 392 583 701 $ 10,432 $ 10,655 $ 11,333 Capital expenditures: Water $ 7,535 $ 7,326 $ 6,964 Dispensers 108 436 62 Corporate 199 160 274 $ 7,842 $ 7,922 $ 7,300 At December 31, Identifiable assets: 2015 2014 Water $ 50,617 $ 52,758 Dispensers 12,843 11,075 Corporate 1,413 1,915 $ 64,873 $ 65,748 For the years ended December 31, 2015, 2014 and 2013, our Canadian operations represented 5.1%, 6.7% and 8.4%, respectively, of our total net sales. At December 31, 2015 and 2014, 4.8% and 6.2%, respectively, of property and equipment, net, on our consolidated balance sheets related to our Canadian operations. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 15. Supplemental Cash Flow Information Year ended December 31, 2015 2014 2013 Cash paid for interest $ 1,493 $ 3,319 $ 3,278 Noncash investing activities: Assets acquired under capital leases $ 345 $ 427 $ – Accrued capital expenditures $ 1,054 $ 615 $ 1,313 |
Employee Retirement Savings Pla
Employee Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2015 | |
Employee Retirement Savings Plan [Abstract] | |
Employee Retirement Savings Plan | 16. Employee Retirement Savings Plan We sponsor a defined contribution plan that covers substantially all full-time employees who are at least 21 years of age and who have completed at least two months of service. Plan participants may make before tax elective contributions up to the maximum percentage of compensation and dollar amount allowed under the Internal Revenue Code. Plan participants are 100% vested in their elective contributions at all times and are vested 25% per year of service for four years in our discretionary contributions. A year of service for vesting purposes is 1,000 hours of service in a Plan year. Our Board of Directors established a company match of up to 50% of the employee contributions up to 6% of their salaries, with 50% of the matching amount to be determined by our Board of Directors. Contribution expense for the plan was $147, $87 and $47 for 2015, 2014 and 2013, respectively. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information (Unaudited) [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | 17. Selected Quarterly Financial Information (Unaudited) The following table presents the quarterly operating results for 2015 and 2014: Quarter ended March 31, June 30, September 30, December 31, 2015: Net sales $ 29,213 $ 32,399 $ 33,863 $ 31,476 Total operating costs and expenses 28,893 31,138 32,030 30,750 Income from operations 320 1,261 1,833 726 Net income (loss) (237 ) 726 1,324 44 Basic earnings (loss) per common share: Income (loss) from continuing operations $ (0.01 ) $ 0.03 $ 0.05 $ 0.01 Loss from discontinued operations (0.00 ) (0.00 ) (0.00 ) (0.01 ) Net income (loss) $ (0.01 ) $ 0.03 $ 0.05 $ 0.00 Diluted earnings (loss) per common share: Income (loss) from continuing operations $ (0.01 ) $ 0.03 $ 0.05 $ 0.01 Loss from discontinued operations (0.00 ) (0.00 ) (0.00 ) (0.01 ) Net income (loss) $ (0.01 ) $ 0.03 $ 0.05 $ 0.00 Quarter ended March 31, June 30, September 30, December 31, 2014: Net sales $ 23,528 $ 26,853 $ 26,374 $ 29,566 Total operating costs and expenses 25,886 29,048 25,571 32,555 Income (loss) from operations (2,358 ) (2,195 ) 803 (2,989 ) Net income (loss) (3,753 ) (6,406 ) 217 (3,526 ) Basic earnings (loss) per common share: Income (loss) from continuing operations $ (0.15 ) $ (0.25 ) $ 0.01 $ (0.14 ) Loss from discontinued operations (0.01 ) (0.01 ) (0.00 ) (0.00 ) Net income (loss) $ (0.16 ) $ (0.26 ) $ 0.01 $ (0.14 ) Diluted earnings (loss) per common share: Income (loss) from continuing operations $ (0.15 ) $ (0.25 ) $ 0.01 $ (0.14 ) Loss from discontinued operations (0.01 ) (0.01 ) (0.00 ) (0.00 ) Net income (loss) $ (0.16 ) $ (0.26 ) $ 0.01 $ (0.14 ) The amounts presented in the table above are computed independently for each quarter. As a result, their sum may not equal the total year amounts. During the fourth quarter of 2015, we adjusted our estimates related to certain loss contingencies based on changes in facts and circumstances resulting in incremental income from operations of $1,017 for the fourth quarter of 2015. As more fully described in “Note 5 – Property and Equipment”, during the fourth quarter of 2015, changes in certain estimates resulted in incremental depreciation expense of $634 for the fourth quarter of 2015. |
Description of Business and S25
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Description of Business and Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Primo and our wholly-owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. Our consolidated statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with U.S. GAAP requires us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. To the extent there are material differences between these estimates and actual results, our consolidated financial statements may be affected. Some of the more significant estimates include valuation of inventories, future cash flows associated with long-lived assets, fair value assumptions in analyzing valuation of intangible assets, assumptions involved in valuing equity awards, valuation of deferred taxes and allowance for sales returns. |
Discontinued Operations | Discontinued Operations As described in Note 3, during 2012, we committed to a plan to sell the assets of the sparkling beverage appliances, flavorings, CO2 cylinders and accessories business sold under the Flavorstation brand (the “Disposal Group”). We determined that the Disposal Group meets the criteria for classification as discontinued operations. As a result, the results of operations and financial position of the Disposal Group for the current and prior periods are reflected as discontinued operations. The primary activities of our discontinued operations relate to the resolution of contingencies and other matters that arose from and that are directly related to the operations of the Disposal Group before its disposal. |
DS Services Agreement | DS Services Agreement On November 12, 2013, we entered into a strategic alliance agreement (the “DS Services Agreement”) with DS Services of America, Inc. (“DS Services”) pursuant to which DS Services has become our primary bottler and distributor and provider of exchange and supply services for the Exchange business in the United States. Pursuant to the DS Services Agreement, during 2015, we also completed the transition of DS Services retail customers to Primo. |
Revenue Recognition | Revenue Recognition Revenue is recognized for the sale of multi-gallon purified bottled water upon either the delivery of inventory to the retail store or the purchase by the consumer. Revenue is either recognized as an exchange transaction (where a discount is provided on the purchase of a multi-gallon bottle of purified water for the return of an empty multi-gallon bottle) or a non-exchange transaction. Revenues on exchange transactions are recognized net of the exchange discount. Self-service refill water revenue is recognized as the filtered water is purchased by the consumer or retailer, which is measured by the water dispensing equipment meter. Revenue is recognized for the sale of our water dispenser products when title is transferred to our retail customers. We have no contractual obligation to accept returns nor do we guarantee sales. However, we will at times accept returns or issue credits for manufacturer defects or that were damaged in transit. Revenues are recognized net of an estimated allowance for returns using an average return rate based upon historical experience. In addition, we offer certain incentives such as coupons and rebates that are netted against and reduce net sales in the consolidated statements of operations. With the purchase of certain of our water dispensers we include a coupon for a free multi-gallon bottle of purified water. No revenue is recognized with respect to the redemption of the coupon for a free multi-gallon bottle of water and the cost of the multi-gallon bottle of purified water is included in cost of sales. |
Cash | Cash All highly liquid investments with an original maturity of three months or less at the date of purchase are considered to be cash equivalents. The Company had $507 and $0 in cash equivalents at December 31, 2015 and 2014, respectively. |
Accounts Receivable | Accounts Receivable All trade accounts receivable are due from customers located within the United States and Canada. We maintain an allowance for sales discounts, rebates and promotions based on our arrangements with customers. Accounts receivable, net included allowances for sales discounts, rebates and promotions of $586 and $1,212 at December 31, 2015 and 2014, respectively. Accounts receivable, net includes allowances for doubtful accounts of $101 and $107 at December 31, 2015 and 2014, respectively. The allowance for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis. Judgments are made with respect to the collectability of accounts receivable based on historical experience and current economic trends. Actual losses could differ from those estimates. Accounts receivable, net includes an allowance for returns of $965 and $988 at December 31, 2015 and 2014, respectively. The allowance for returns is computed using an average return rate based upon historical experience. Beginning Balance Amounts Charged or (Credited) to Expense or Revenue Deductions Ending Balance Allowance for doubtful accounts Year Ended December 31, 2015 $ 107 1 (7 ) $ 101 Year Ended December 31, 2014 $ 321 (273 ) 59 $ 107 Year Ended December 31, 2013 $ 792 (275 ) (196 ) $ 321 Allowance for returns Year Ended December 31, 2015 $ 988 2,453 (2,476 ) $ 965 Year Ended December 31, 2014 $ 989 2,714 (2,715 ) $ 988 Year Ended December 31, 2013 $ 1,017 2,447 (2,475 ) $ 989 |
Inventories | Inventories Our water dispenser inventories consist primarily of finished goods and are valued at the lower of cost or market value, with cost determined using the first-in, first-out (FIFO) method. The cost basis of multi-gallon purified bottled water held on consignment at retail store locations is the amount paid to independent distributors who deliver our water. |
Bottles | Bottles Bottles consist of three- and five- gallon refillable polycarbonate bottles used in our exchange business and are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of two years. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Internal and external costs incurred to acquire and create internal use software are capitalized and amortized over the useful life of the software. Depreciation and amortization is generally calculated using straight-line methods over estimated useful lives that range from two to twelve years, taking into account estimated salvage values for certain assets. We incur maintenance costs on our major equipment. Maintenance, repair and minor refurbishment costs are charged to expense as incurred, while additions, renewals, and improvements are capitalized. |
Customer Bottle Deposits | Customer Bottle Deposits In our Canadian Exchange business, we collect a refundable deposit on each customer’s initial purchase of our water. If a customer decides to exit our program, the deposit is refunded. At December 31, 2015 and 2014, customer bottle deposits of $689 and $707, respectively, were reported in accrued expenses and other current liabilities on our Consolidated Balance Sheets. We estimate a portion of deposits which, based on historical experience, we do not believe will be refunded to customers. The customer bottle deposit liability was reduced by $187 and $215 for 2015 and 2014, respectively, for such estimates. |
Intangible Assets | Intangible Assets We classify intangible assets into two categories: (1) intangible assets with definite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, our long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives. Intangible assets that are deemed to have indefinite lives are tested for impairment annually, as of December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test for indefinite-lived intangibles consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. |
Long-Lived Assets | Long-Lived Assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. |
Stock-Based Compensation | Stock-Based Compensation We estimate the grant date fair value of equity awards and amortize this value over the performance or service period. We measure the fair value of awards granted under the Primo Water Corporation Value Creation Plan (the “VCP”) and stock options using a Black-Scholes option pricing model which incorporates multiple complex and subjective inputs and assumptions ( see These variables include the expected term of the award, the expected stock price volatility over the expected term and risk-free interest rate. Compensation expense is generally recognized on a straight-line basis for over the service period. For awards with performance conditions, we begin recognizing compensation expense when it becomes probable that the performance condition will be attained. |
Research, Development and Engineering | Research, Development and Engineering Research, development and engineering costs, primarily related to the design and innovation of water dispensers, are expensed as incurred. |
Advertising Costs | Advertising Costs Costs incurred for producing and distributing advertising and advertising materials are expensed as incurred or the first time the advertising takes place. Advertising costs totaled $90 and $28 for 2015 and 2014, respectively, and are included in selling, general, and administrative expenses. |
Concentrations of Risk | Concentrations of Risk Our principal financial instruments subject to potential concentration of credit risk are cash, trade receivables and accounts payable. We invest our funds in highly rated institutions and believe the financial risk associated with cash in excess of federally insured amounts is minimal. At December 31, 2015 and 2014, $1,486 and $175, respectively, of our cash on deposit exceeded the insured limits. We perform ongoing credit evaluations of our customers’ financial condition and maintain allowances for doubtful accounts that we believe are sufficient to provide for losses that may be sustained on realization of accounts receivable. We had three customers that accounted for approximately 39%, 19% and 15% of sales in 2015. Each of these customers purchased products from both our Water and Dispensers Segments. We had two customers that accounted for approximately 40% and 22% of sales in 2014 and two customers that accounted for approximately 45% and 25% of sales in 2013. These two customers purchased products from both our Water and Dispensers Segments. We had three customers that accounted for approximately 41%, 14% and 14% of total trade receivables at December 31, 2015 and three customers that accounted for approximately 41%, 18% and 10% of total trade receivables at December 31, 2014. |
Basic and Diluted Earnings (Loss) Per Share | Basic and Diluted Earnings (Loss) Per Share Earnings (loss) per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted amounts per share include the dilutive impact, if any, of our outstanding potential common shares, such as stock options, restricted stock units and warrants. Diluted amounts per share also include the dilutive impact, if any, of contingently issuable shares related to awards under the VCP; As performance-based awards, such dilutive impact is based on the number of shares, if any, that would be issuable under the terms of the VCP if the end of the reporting period were the end of the contingency period. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net loss per common share. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent that utilization is not presently more likely than not. As required by U.S. GAAP, we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. |
Cumulative Translation Adjustment and Foreign Currency Transactions | Cumulative Translation Adjustment and Foreign Currency Transactions The local currency of our operations in Canada is considered to be the functional currency. Assets and liabilities of the Canada subsidiary are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations are translated using the average exchange rate prevailing throughout the period. The effects of unrealized exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars are presented as foreign currency translation adjustments, net included in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). With the exception of transaction gains and losses on certain intercompany balances which we have determined are of a long-term investment nature, realized gains and losses on foreign currency transactions are included in the consolidated statements of operations. At December 31, 2015 and 2014, accumulated other comprehensive loss balances of $1,412 and $814, respectively, were related to unrealized foreign currency translation adjustments and transaction gains and losses on certain intercompany balances. |
Non-recurring costs | Non-recurring costs Transactions that are unusual in nature or which occur infrequently, but not both, are reported as non-recurring costs on our consolidated statements of operations. Non-recurring costs consist primarily of transition and other expenses associated with the DS Services Agreement as well as other legal and severance expenses. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance which supersedes existing revenue recognition requirements in U.S. GAAP. The updated guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the guidance establishes a five-step approach for the recognition of revenue. In August 2015, the FASB issued updated guidance to defer the effective date of this update. As a result, the update is currently effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements. Going Concern In August 2014, the Financial Acccounting Standards Board (FASB) issued updated guidance clarifying management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The updated guidance requires that an entity’s management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The update is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. The amendment is not expected to have an impact on our consolidated financial statements. Presentation of Debt Issuance Costs In April 2015, the FASB issued updated guidance requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The update is effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. We do not expect the adoption of this updated guidance to have a significant impact on our consolidated financial statements. Inventory In July 2015, the FASB issued updated guidance requiring the measurement of certain inventory at the lower of cost and net realizable value. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. We do not expect the adoption of this updated guidance to have a significant impact on our consolidated financial statements. Income Taxes In November 2015, the FASB issued updated guidance requiring entities to separate deferred income tax liabilities and assets into current and noncurrent amounts in the balance sheet. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. We have early adopted the amendments of this updated guidance during the year ended December 31, 2015. Adoption of the updated guidance did not have a significant impact on our consolidated financial statements. Leases In February 2016, the FASB issued updated guidance requiring lessees to recognize for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The update is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements. |
Description of Business and S26
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Description of Business and Significant Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The allowance for returns is computed using an average return rate based upon historical experience. Beginning Balance Amounts Charged or (Credited) to Expense or Revenue Deductions Ending Balance Allowance for doubtful accounts Year Ended December 31, 2015 $ 107 1 (7 ) $ 101 Year Ended December 31, 2014 $ 321 (273 ) 59 $ 107 Year Ended December 31, 2013 $ 792 (275 ) (196 ) $ 321 Allowance for returns Year Ended December 31, 2015 $ 988 2,453 (2,476 ) $ 965 Year Ended December 31, 2014 $ 989 2,714 (2,715 ) $ 988 Year Ended December 31, 2013 $ 1,017 2,447 (2,475 ) $ 989 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Amortized Intangible Assets | Intangible assets are summarized as follows: December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Intangible Assets Weighted Average Life (Years) Gross Carrying Amount Accumulated Amortization Net Intangible Assets Weighted Average Life (Years) Amortized intangible assets: Customer relationships $ 14,977 $ (7,164 ) $ 7,813 15.0 $ 15,593 $ (6,508 ) $ 9,085 15.0 Patent costs 1,205 (1,192 ) 13 3.0 1,195 (1,084 ) 111 3.0 Trademarks 255 (7 ) 248 15.0 256 - 256 N/A Total $ 16,437 $ (8,363 ) $ 8,074 15.0 $ 17,044 $ (7,592 ) $ 9,452 14.8 |
Amortization Expense for Intangible Assets | Amortization expense related to intangible assets, which is an estimate for each future year and subject to change, is as follows: 2016 $ 846 2017 825 2018 818 2019 816 2020 816 Thereafter 3,953 $ 8,074 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Financial Information of Disposal Group | The operating results classified as discontinued operations were as follows: Years ended December 31, 2015 2014 2013 Net sales $ – $ 219 $ 2,706 Operating costs and expenses: Cost of sales 7 264 3,020 Selling, general and administrative expenses 93 358 479 Barter credit impairment 196 – 1,069 Total operating costs and expenses 296 622 4,568 Loss from discontinued operations $ (296 ) $ (403 ) $ (1,862 ) |
Bottles (Tables)
Bottles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bottles [Abstract] | |
Bottles | Bottles are summarized as follows at December 31: 2015 2014 Cost $ 4,653 $ 4,747 Less accumulated depreciation (965 ) (1,173 ) $ 3,688 $ 3,574 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and equipment is summarized as follows at December 31: 2015 2014 Machinery and equipment $ 7,209 $ 6,940 Vending equipment 26,155 25,249 Racks and display panels 32,065 30,047 Software and computer equipment 4,298 4,227 Vehicles under capital leases 772 427 Equipment not in service 659 721 Other 17 324 71,175 67,935 Less accumulated depreciation and amortization (39,178 ) (33,700 ) $ 31,997 $ 34,235 |
Loss on Disposal and Impairment of Property and Equipment | The our loss on disposal and impairment of property and equipment: Years Ended December 31, 2015 2014 2013 Refill vending equipment impairments $ 104 $ 824 $ – Loss on disposals of Exchange racks and machinery associated with DS Services transition – 612 – Loss on disposal of refill vending equipment and related installation costs 430 573 165 Loss (gain) on other disposals (34 ) 95 (39 ) $ 500 $ 2,104 $ 126 |
Accrued Expenses and Other Cu31
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities are summarized as follows at December 31: 2015 2014 Accrued payroll and related items $ 1,718 $ 905 Accrued professional expenses 37 319 Accrued interest 74 460 Accrued sales tax payable 52 373 Accrued distributor and service provider payments 309 1,043 Accrued sales allowances 541 166 Customer bottle deposits 689 707 Other 313 347 Current liabilities of disposal group held for sale 15 23 $ 3,748 $ 4,343 |
Debt, Capital Leases and Note32
Debt, Capital Leases and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt, Capital Leases and Notes Payable [Abstract] | |
Debt, Capital Leases and Notes Payable | Debt, capital leases and notes payable are summarized as follows: December 31, 2015 December 31, 2014 Revolving Credit Facility $ – $ 4,000 Term Notes 20,000 20,000 Capital leases 461 304 Notes payable – 12 20,461 24,316 Less current portion (172 ) (106 ) Long-term debt, notes payable and capital leases, net of current portion $ 20,289 $ 24,210 |
Debt Maturities | The aggregate future maturities of debt, capital leases and notes payable as of December 31, 2015 were as follows: Capital leases Term Notes Total 2016 $ 249 $ – $ 249 2017 247 4,000 4,247 2018 151 4,000 4,151 2019 – 4,000 4,000 2020 – 4,000 4,000 Thereafter – 4,000 4,000 $ 647 $ 20,000 $ 20,647 Less: amounts representing estimated executory costs (159 ) – (159 ) Less: amounts representing interest (27) – (27) $ 461 $ 20,000 $ 20,461 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Common Stock Warrant Activity | A summary of common stock warrant activity for the years ended December 31, 2015 and 2014 is presented below: Warrants Weighted Average Exercise Price Weighted Average Remaining Life (Years) Warrants outstanding, December 31, 2013 2,602 $ 4.95 5.34 Grant of DS Services Warrant 475 $ 3.04 Partial exercises of Comvest Warrant (400 ) $ 1.20 Warrants outstanding, December 31, 2014 2,677 $ 5.14 4.50 Partial exercises of Comvest Warrant (1,200 ) $ 1.20 Warrants outstanding, December 31, 2015 1,477 $ 8.36 2.81 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Share-based Compensation, Allocation and Classification in Financial Statements | Total non-cash stock-based compensation expense by award type for all of our plans, all of which is included in selling, general and administrative expenses on our consolidated statements of operations, was as follows: Years Ended December 31, 2015 2014 2013 Stock options $ 541 $ 420 $ 448 Restricted stock 693 997 586 Value Creation Plan 1,310 2,566 – Employee Stock Purchase Plan 57 40 – $ 2,601 $ 4,023 $ 1,034 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options, Valuation Assumptions | The key assumptions used in the Black-Scholes model were as follows: 2015 2014 2013 Expected life of options in years 6.0 - 6.3 6.0 - 6.3 6.3 Risk-free interest rate 1.7% - 1.8% 1.8% - 2.0% 1.1% - 2.0% Expected volatility 43.0% - 45.0% 45.0% - 47.0% 47.0% Dividend yield 0.0% 0.0% 0.0% |
Stock Option Activity | A summary of stock option activity for the year ended December 31, 2015, is presented as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value Options outstanding, December 31, 2014 1,594 $ 3.61 Granted 443 $ 5.47 Exercised (61 ) $ 1.86 Forfeited (18 ) $ 7.71 Options outstanding, December 31, 2015 1,958 $ 4.05 7.3 $ 8,911 Options vested and expected to vest, December 31, 2015 1,860 $ 4.03 7.2 $ 8,563 Options exercisable, December 31, 2015 1,168 $ 3.77 6.3 $ 6,104 |
Restricted Stock Activity | A summary of restricted stock activity for the year ended December 31, 2015 is presented below: Number of Shares Weighted Average Grant Date Price Per Share Unvested at December 31, 2014 37 $ 2.29 Granted 90 $ 5.19 Vested (112 ) $ 4.47 Unvested at December 31, 2015 15 $ 3.35 |
Value Creation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options, Valuation Assumptions | The key assumptions used in the Black-Scholes model for the VCP were as follows: $15,000 Adjusted EBITDA Target Award Total fair value $4,130 Assumptions: May 11, 2012 closing stock price $1.39 Fair value measurement dates stock prices $1.76 - $3.96 Expected life of awards in years 1.4 - 2.8 Risk-free interest rate 0.3% - 0.6% Expected volatility 41.3% - 46.1% Dividend yield 0.0% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Future Minimum Rental Payments for Operating Leases | At December 31, 2015, future minimum rental commitments under non-cancelable operating leases were as follows: 2016 $ 363 2017 337 2018 19 2019 19 2020 19 Thereafter 2 Total $ 759 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal tax rate and effective tax rates is as follows: 2015 2014 2013 Federal statutory taxes 34.0 % 34.0 % 34.0 % State income taxes, net of federal tax benefit 4.8 % 3.7 % 3.8 % Foreign taxes less than the domestic rate 3.7 % (0.5 %) (0.4 %) Permanent differences 1.5 % (0.2 %) (0.2 %) Change in valuation allowance (154.9 %) (35.6 %) (27.6 %) Changes in rates and other true-ups 110.9 % 0.0 % (9.1 %) Other 0.0 % (1.4 %) (0.5 %) 0.0 % 0.0 % 0.0 % |
Deferred Tax Assets and Liabilities | The following deferred income taxes are recorded: 2015 2014 Deferred tax assets: Federal net operating loss carryforward $ 46,183 $ 45,537 State loss carryforward 3,706 4,400 Goodwill 19,688 22,339 Other intangible assets 3,071 3,431 Allowance for bad debts 600 876 Stock-based compensation 2,520 2,711 Accrued expenses 374 95 Inventory 39 49 Fixed assets – 133 Other 1,266 1,215 Total gross deferred tax assets 77,447 80,786 Deferred tax liabilities: Fixed assets (139 ) – Total gross deferred tax liabilities (139 ) – Valuation allowance (77,308 ) (80,786 ) Total net deferred liability $ - $ - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value on a Recurring Basis | The financial assets held by the Company and the fair value hierarchy used to determine their fair values are as follows: Total Fair Value Fair Value Measurement Using Level 1 Current assets: Cash equivalents $ 507 $ 507 Total $ 507 $ 507 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | The following table sets forth the calculations of basic and diluted earnings (loss) per share: Years ended December 31, 2015 2014 2013 Basic: Income (loss) from continuing operations $ 2,153 $ (13,064 ) $ (8,844 ) Loss from discontinued operations (296 ) (403 ) (1,862 ) Net income (loss) $ 1,857 $ (13,467 ) $ (10,706 ) Weighted average shares 25,190 24,339 23,935 Basic earnings (loss) per share from continuing operations $ 0.08 $ (0.54 ) $ (0.37 ) Basic loss per share from discontinued operations (0.01 ) (0.01 ) (0.08 ) Basic earnings (loss) per share $ 0.07 $ (0.55 ) $ (0.45 ) Diluted: Income (loss) from continuing operations $ 2,153 $ (13,064 ) $ (8,844 ) Loss from discontinued operations (296 ) (403 ) (1,862 ) Net income (loss) $ 1,857 $ (13,467 ) $ (10,706 ) Weighted average shares 25,190 24,339 23,935 Potential shares arising from stock options, restricted stock, warrants and contingently issuable shares under the VCP 1,811 – – Weighted average shares - diluted 27,001 24,339 23,935 Diluted earnings (loss) per share from continuing operations $ 0.08 $ (0.54 ) $ (0.37 ) Diluted loss per share from discontinued operations (0.01 ) (0.01 ) (0.08 ) Diluted earnings (loss) per share $ 0.07 $ (0.55 ) $ (0.45 ) |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segments [Abstract] | |
Segment Information | The following table presents segment information for each of the last three years: Year ended December 31, 2015 2014 2013 Segment net sales Water $ 89,623 $ 71,360 $ 63,828 Dispensers 37,328 34,962 27,381 $ 126,951 $ 106,322 $ 91,209 Segment income (loss) from operations Water $ 28,835 $ 22,585 $ 17,717 Dispensers 1,851 1,452 827 Corporate (15,339 ) (15,136 ) (10,727 ) Non-recurring costs (275 ) (2,881 ) (777 ) Depreciation and amortization (10,432 ) (10,655 ) (11,333 ) Loss on disposal and impairment of property and equipment (500 ) (2,104 ) (126 ) $ 4,140 $ (6,739 ) $ (4,419 ) Depreciation and amortization expense: Water $ 9,781 $ 9,740 $ 10,057 Dispensers 259 332 575 Corporate 392 583 701 $ 10,432 $ 10,655 $ 11,333 Capital expenditures: Water $ 7,535 $ 7,326 $ 6,964 Dispensers 108 436 62 Corporate 199 160 274 $ 7,842 $ 7,922 $ 7,300 |
Identifiable Assets by Segment | At December 31, Identifiable assets: 2015 2014 Water $ 50,617 $ 52,758 Dispensers 12,843 11,075 Corporate 1,413 1,915 $ 64,873 $ 65,748 |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Year ended December 31, 2015 2014 2013 Cash paid for interest $ 1,493 $ 3,319 $ 3,278 Noncash investing activities: Assets acquired under capital leases $ 345 $ 427 $ – Accrued capital expenditures $ 1,054 $ 615 $ 1,313 |
Selected Quarterly Financial 41
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents the quarterly operating results for 2015 and 2014: Quarter ended March 31, June 30, September 30, December 31, 2015: Net sales $ 29,213 $ 32,399 $ 33,863 $ 31,476 Total operating costs and expenses 28,893 31,138 32,030 30,750 Income from operations 320 1,261 1,833 726 Net income (loss) (237 ) 726 1,324 44 Basic earnings (loss) per common share: Income (loss) from continuing operations $ (0.01 ) $ 0.03 $ 0.05 $ 0.01 Loss from discontinued operations (0.00 ) (0.00 ) (0.00 ) (0.01 ) Net income (loss) $ (0.01 ) $ 0.03 $ 0.05 $ 0.00 Diluted earnings (loss) per common share: Income (loss) from continuing operations $ (0.01 ) $ 0.03 $ 0.05 $ 0.01 Loss from discontinued operations (0.00 ) (0.00 ) (0.00 ) (0.01 ) Net income (loss) $ (0.01 ) $ 0.03 $ 0.05 $ 0.00 Quarter ended March 31, June 30, September 30, December 31, 2014: Net sales $ 23,528 $ 26,853 $ 26,374 $ 29,566 Total operating costs and expenses 25,886 29,048 25,571 32,555 Income (loss) from operations (2,358 ) (2,195 ) 803 (2,989 ) Net income (loss) (3,753 ) (6,406 ) 217 (3,526 ) Basic earnings (loss) per common share: Income (loss) from continuing operations $ (0.15 ) $ (0.25 ) $ 0.01 $ (0.14 ) Loss from discontinued operations (0.01 ) (0.01 ) (0.00 ) (0.00 ) Net income (loss) $ (0.16 ) $ (0.26 ) $ 0.01 $ (0.14 ) Diluted earnings (loss) per common share: Income (loss) from continuing operations $ (0.15 ) $ (0.25 ) $ 0.01 $ (0.14 ) Loss from discontinued operations (0.01 ) (0.01 ) (0.00 ) (0.00 ) Net income (loss) $ (0.16 ) $ (0.26 ) $ 0.01 $ (0.14 ) |
Description of Business and S42
Description of Business and Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)gal | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash [Abstract] | |||
Cash equivalents | $ 507 | $ 0 | |
Accounts Receivable [Abstract] | |||
Allowances for sales discounts, rebates and promotions | 586 | 1,212 | |
Customer Bottle Deposits [Abstract] | |||
Customer bottle deposits | 689 | 707 | |
Decrease in customer bottle deposit liability | $ 187 | 215 | |
Minimum [Member] | |||
Property and Equipment [Abstract] | |||
Estimated useful life | 2 years | ||
Maximum [Member] | |||
Property and Equipment [Abstract] | |||
Estimated useful life | 12 years | ||
Allowance for Doubtful Accounts [Member] | |||
Allowances for doubtful accounts and returns [Roll Forward] | |||
Beginning balance | $ 107 | 321 | $ 792 |
Amounts charged or (credited) to expense or revenue | 1 | (273) | (275) |
Deductions | (7) | 59 | (196) |
Ending balance | 101 | 107 | 321 |
Allowance for Returns [Member] | |||
Allowances for doubtful accounts and returns [Roll Forward] | |||
Beginning balance | 988 | 989 | 1,017 |
Amounts charged or (credited) to expense or revenue | 2,453 | 2,714 | 2,447 |
Deductions | (2,476) | (2,715) | (2,475) |
Ending balance | $ 965 | $ 988 | $ 989 |
Bottles [Member] | |||
Property and Equipment [Abstract] | |||
Estimated useful life | 2 years | ||
Bottles [Member] | Minimum [Member] | |||
Property and Equipment [Abstract] | |||
Volume of refillable polycarbonate bottles | gal | 3 | ||
Bottles [Member] | Maximum [Member] | |||
Property and Equipment [Abstract] | |||
Volume of refillable polycarbonate bottles | gal | 5 |
Description of Business and S43
Description of Business and Significant Accounting Policies, Fair Value (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | Dec. 31, 2013Customer | |
Advertising Costs [Abstract] | |||
Advertising costs | $ 90 | $ 28 | |
Concentration of Risk [Abstract] | |||
Cash deposit amounts in excess of insured limits | 1,486 | 175 | |
Cumulative Translation Adjustment and Foreign Currency Transactions [Abstract] | |||
Accumulated other comprehensive loss balances | $ (1,412) | $ (814) | |
Sales Revenue, Goods, Net [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk number of customers | Customer | 3 | 2 | 2 |
Accounts Receivable [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk number of customers | Customer | 3 | 3 | |
Customer 1 [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk, percentage | 39.00% | 40.00% | 45.00% |
Customer 1 [Member] | Accounts Receivable [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk, percentage | 41.00% | 41.00% | |
Customer 2 [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk, percentage | 19.00% | 22.00% | 25.00% |
Customer 2 [Member] | Accounts Receivable [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk, percentage | 14.00% | 18.00% | |
Customer 3 [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk, percentage | 15.00% | ||
Customer 3 [Member] | Accounts Receivable [Member] | |||
Concentration of Risk [Abstract] | |||
Concentration risk, percentage | 14.00% | 10.00% |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortized intangible assets [Abstract] | |||
Gross carrying amount | $ 16,437 | $ 17,044 | |
Accumulated amortization | (8,363) | (7,592) | |
Net intangible assets | $ 8,074 | $ 9,452 | |
Weighted average life | 15 years | 14 years 9 months 18 days | |
Amortization expense for intangible assets | $ 984 | $ 1,215 | $ 1,410 |
Future amortization expense [Abstract] | |||
2,016 | 846 | ||
2,017 | 825 | ||
2,018 | 818 | ||
2,019 | 816 | ||
2,020 | 816 | ||
Thereafter | 3,953 | ||
Total | 8,074 | 9,452 | |
Customer Relationships [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying amount | 14,977 | 15,593 | |
Accumulated amortization | (7,164) | (6,508) | |
Net intangible assets | $ 7,813 | $ 9,085 | |
Weighted average life | 15 years | 15 years | |
Future amortization expense [Abstract] | |||
Total | $ 7,813 | $ 9,085 | |
Patent Costs [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying amount | 1,205 | 1,195 | |
Accumulated amortization | (1,192) | (1,084) | |
Net intangible assets | $ 13 | $ 111 | |
Weighted average life | 3 years | 3 years | |
Future amortization expense [Abstract] | |||
Total | $ 13 | $ 111 | |
Trademarks [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying amount | 255 | 256 | |
Accumulated amortization | (7) | 0 | |
Net intangible assets | $ 248 | 256 | |
Weighted average life | 15 years | ||
Future amortization expense [Abstract] | |||
Total | $ 248 | $ 256 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations [Abstract] | |||
Accrued expenses and other current liabilities | $ 15 | $ 23 | |
Other long-term liabilities | 1,942 | 1,987 | |
Net sales and operating results classified as discontinued operations [Abstract] | |||
Net sales | 0 | 219 | $ 2,706 |
Operating costs and expenses [Abstract] | |||
Cost of sales | 7 | 264 | 3,020 |
Selling, general and administrative | 93 | 358 | 479 |
Barter credit impairment | 196 | 0 | 1,069 |
Total operating costs and expenses | 296 | 622 | 4,568 |
Loss from discontinued operations | $ (296) | $ (403) | $ (1,862) |
Bottles (Details)
Bottles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Cost | $ 71,175 | $ 71,175 | $ 67,935 | |
Less accumulated depreciation | (39,178) | (39,178) | (33,700) | |
Property and equipment, net | 31,997 | 31,997 | 34,235 | |
Depreciation expense | 634 | 10,432 | 10,655 | $ 11,333 |
Bottles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 4,653 | 4,653 | 4,747 | |
Less accumulated depreciation | (965) | (965) | (1,173) | |
Property and equipment, net | $ 3,688 | 3,688 | 3,574 | |
Depreciation expense | $ 2,346 | $ 2,452 | $ 2,186 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property and equipment [Abstract] | ||||
Property and equipment, gross | $ 71,175 | $ 71,175 | $ 67,935 | |
Less accumulated depreciation and amortization | (39,178) | (39,178) | (33,700) | |
Property and equipment, net | 31,997 | 31,997 | 34,235 | |
Estimated salvage value | 49 | 49 | 58 | |
Depreciation expense | 634 | 10,432 | 10,655 | $ 11,333 |
Loss on disposal and impairment of property and equipment [Abstract] | ||||
Refill vending equipment impairments | 104 | 824 | 0 | |
Loss (gain) on other disposals | (34) | 95 | (39) | |
Loss on disposal and impairment of property and equipment | 500 | 2,104 | 126 | |
Machinery and Equipment [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | 7,209 | 7,209 | 6,940 | |
Vending Equipment [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | 26,155 | 26,155 | 25,249 | |
Estimated salvage value | 31 | 31 | 58 | |
Depreciation expense | 634 | |||
Loss on disposal and impairment of property and equipment [Abstract] | ||||
Loss on disposals of property and equipment | 430 | 573 | 165 | |
Racks and Display Panels [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | 32,065 | 32,065 | 30,047 | |
Loss on disposal and impairment of property and equipment [Abstract] | ||||
Loss on disposals of property and equipment | 0 | 612 | 0 | |
Software and Computer Equipment [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | 4,298 | 4,298 | 4,227 | |
Vehicles Under Capital Leases [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | 772 | 772 | 427 | |
Equipment Not in Service [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | 659 | 659 | 721 | |
Other [Member] | ||||
Property and equipment [Abstract] | ||||
Property and equipment, gross | $ 17 | 17 | 324 | |
Property and Equipment [Member] | ||||
Property and equipment [Abstract] | ||||
Depreciation expense | $ 7,103 | $ 6,988 | $ 7,737 |
Accrued Expenses and Other Cu48
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued payroll and related items | $ 1,718 | $ 905 |
Accrued professional expenses | 37 | 319 |
Accrued interest | 74 | 460 |
Accrued sales tax payable | 52 | 373 |
Accrued distributor and service provider payments | 309 | 1,043 |
Accrued sales allowances | 541 | 166 |
Customer bottle deposits | 689 | 707 |
Other | 313 | 347 |
Current liabilities of disposal group held for sale | 15 | 23 |
Accrued expenses and other current liabilities | $ 3,748 | $ 4,343 |
Debt, Capital Leases and Note49
Debt, Capital Leases and Notes Payable (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Installment | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||
Long term debt, notes payable and capital leases | $ 20,461 | $ 24,316 |
Less current portion | (172) | (106) |
Long-term debt, capital leases and notes payable, net of current portion | 20,289 | 24,210 |
Total borrowing availability | 35,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, notes payable and capital leases | 0 | 4,000 |
Total borrowing availability | $ 15,000 | |
Expiration date | Jun. 20, 2019 | |
Term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, notes payable and capital leases | $ 20,000 | 20,000 |
Total borrowing availability | $ 20,000 | |
Interest rate | 7.80% | |
Maturity date | Jun. 20, 2021 | |
Number of annual installment | Installment | 5 | |
Periodic payment principal | $ 4,000 | |
Deferred loan costs capitalized | 338 | |
Accumulated amortization of deferred loans costs | 101 | 34 |
Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, notes payable and capital leases | 461 | 304 |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, notes payable and capital leases | $ 0 | $ 12 |
Debt, Capital Leases and Note50
Debt, Capital Leases and Notes Payable, Line of Credit Facility (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)CapitalLeases | Dec. 31, 2014USD ($) | |
Line of Credit Facility [Line Items] | |||
Debt to EBITDA ratio | 2.75 | ||
Consolidated Debt to EBITDA ratio | 1.13 | ||
Financial covenants minimum tangible net worth requirement | $ 11,000 | $ 12,156 | |
Percentage of consolidated income considered for financial covenant | 50.00% | ||
EBITDA to fixed charge ratio | 1.80 | ||
EBITDA to fixed charge ratio increase in period one | 1 | ||
Financial covenants tangible net worth requirement | $ 18,061 | ||
Amortization of financing costs | 883 | ||
Amortization of debt discount | $ 583 | ||
Interest expense | $ 2,718 | ||
Capital leases outstanding | CapitalLeases | 33 | ||
Maturities of Long-term Debt [Abstract] | |||
2,016 | $ 249 | ||
2,017 | 4,247 | ||
2,018 | 4,151 | ||
2,019 | 4,000 | ||
2,020 | 4,000 | ||
Thereafter | 4,000 | ||
Long-term Debt | 20,647 | ||
Less: amounts representing estimated executory costs | (159) | ||
Less: amounts representing interest | (27) | ||
Long-term Debt, Total | 20,461 | ||
Capital Leases [Member] | |||
Maturities of Long-term Debt [Abstract] | |||
2,016 | 249 | ||
2,017 | 247 | ||
2,018 | 151 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | 0 | ||
Long-term Debt | 647 | ||
Less: amounts representing estimated executory costs | (159) | ||
Less: amounts representing interest | (27) | ||
Long-term Debt, Total | 461 | ||
Term Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Deferred loan costs capitalized | 338 | ||
Accumulated amortization of deferred loans costs | 101 | 34 | |
Maturities of Long-term Debt [Abstract] | |||
2,016 | 0 | ||
2,017 | 4,000 | ||
2,018 | 4,000 | ||
2,019 | 4,000 | ||
2,020 | 4,000 | ||
Thereafter | 4,000 | ||
Long-term Debt | 20,000 | ||
Less: amounts representing estimated executory costs | 0 | ||
Less: amounts representing interest | 0 | ||
Long-term Debt, Total | $ 20,000 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.50% | ||
Outstanding borrowings | $ 0 | ||
Remaining borrowing availability | 15,000 | ||
Deferred loan costs capitalized | 214 | ||
Accumulated amortization of deferred loans costs | $ 64 | $ 21 | |
Revolving Credit Facility [Member] | Federal Funds [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Revolving Credit Facility [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Description of variable rate basis | LIBOR for a three-month | ||
Basis spread on variable rate | 1.00% | ||
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Description of variable rate basis | a one-, two-, three- or six-month LIBOR rate | ||
Basis spread on variable rate | 4.25% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.25% | ||
Prior Senior Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Amortization of debt discount | $ 677 | ||
Penalty on Early Payment of Debt | $ 705 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015Director$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Jan. 31, 2014USD ($) | Nov. 06, 2012$ / shares | |
Detachable Common Stock Warrant related to Term Loan [Abstract] | |||||||
Warrants exercise price (in dollars per share) | $ 8.36 | $ 4.95 | $ 4.95 | $ 8.36 | $ 5.14 | ||
Warrants outstanding, beginning balance (in shares) | shares | 2,677 | 2,602 | |||||
Partial exercises of Comvest Warrant (in shares) | shares | (1,200) | (400) | |||||
Warrants outstanding, ending balance (in shares) | shares | 1,477 | 2,677 | 2,602 | ||||
Warrants exercise price outstanding, beginning balance (in dollars per share) | $ 5.14 | $ 4.95 | |||||
Warrants exercise price outstanding, ending balance (in dollars per share) | $ 8.36 | $ 5.14 | $ 4.95 | ||||
Weighted Average Remaining Life | 2 years 9 months 22 days | 4 years 6 months | 5 years 4 months 2 days | ||||
Number of current directors or stockholders as insider participants | Director | 5 | ||||||
DS Services [Member] | |||||||
Detachable Common Stock Warrant related to Term Loan [Abstract] | |||||||
Warrants exercise price (in dollars per share) | $ 3.04 | $ 3.04 | $ 3.04 | ||||
Grant of DS Services Warrant (in shares) | shares | 475 | ||||||
Warrants exercise price outstanding, beginning balance (in dollars per share) | $ 3.04 | ||||||
Warrants exercise price outstanding, ending balance (in dollars per share) | $ 3.04 | ||||||
Warrants expiry date | Jan. 1, 2021 | ||||||
Initial fair value of warrants issued | $ | $ 589 | ||||||
Comvest Warrant [Member] | |||||||
Detachable Common Stock Warrant related to Term Loan [Abstract] | |||||||
Warrants exercise price (in dollars per share) | $ 2.30 | $ 2.30 | $ 1.20 | ||||
Grant of DS Services Warrant (in shares) | shares | 1,731 | ||||||
Partial exercises of Comvest Warrant (in shares) | shares | 1,200 | 400 | |||||
Warrants partial exercise price (in dollars per share) | $ 1.20 | $ 1.20 | |||||
Warrants exercise price outstanding, ending balance (in dollars per share) | $ 2.30 | ||||||
Warrants expiry date | Apr. 30, 2020 | ||||||
Issuance of common stock (in shares) | shares | 973 | 292 | |||||
Comvest Warrant [Member] | Insider Participants [Member] | |||||||
Detachable Common Stock Warrant related to Term Loan [Abstract] | |||||||
Grant of DS Services Warrant (in shares) | shares | 131 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 11, 2012 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Total non-cash stock-based compensation expense included in selling, general and administrative expenses | $ 2,601 | $ 4,023 | $ 1,034 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Purchase price specified as percentage of fair market value | 85.00% | |||
Maximum percentage of compensation that can be allocated to employee stock purchases plan | 15.00% | |||
Maximum amount of annual compensation that may be attributed to employee stock purchase plan | $ 25 | |||
Number of shares purchased (in shares) | 36 | |||
Average price of shares purchased through the employee stock purchase plan (in dollars per share) | $ 3.66 | |||
Number of shares reserved for future issuance (in shares) | 65 | |||
Value Creation Plan [Abstract] | ||||
Target EBITDA one | $ 15,000 | |||
Target EBITDA two | 24,000 | |||
Target EBITDA three | $ 28,000 | |||
Percentage of market capital appreciation of our stock for the first issuance | 15.00% | |||
Trading days after public announcement of financial results for the fiscal year | 2 days | |||
Percentage of market capital appreciation of our stock for the second issuance | 17.50% | |||
Percentage of market capital appreciation of our stock for the third issuance | 20.00% | |||
Recorded non-cash expense | $ 1,310 | $ 2,566 | ||
Unrecognized compensation expense related to the VCP | $ 254 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life of options in years | 6 years 3 months 18 days | |||
Risk-free interest rate, minimum | 1.70% | 1.80% | 1.10% | |
Risk-free interest rate, maximum | 1.80% | 2.00% | 2.00% | |
Expected volatility | 47.00% | |||
Expected volatility, minimum | 43.00% | 45.00% | ||
Expected volatility, maximum | 45.00% | 47.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding (in shares) | 1,594 | |||
Granted (in shares) | 443 | |||
Exercised (in shares) | (61) | |||
Forfeited (in shares) | (18) | |||
Options outstanding (in shares) | 1,958 | 1,594 | ||
Options vested and expected to vest (in shares) | 1,860 | |||
Options exercisable (in shares) | 1,168 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options outstanding, beginning balance (in dollars per share) | $ 3.61 | |||
Granted (in dollars per share) | 5.47 | |||
Exercised (in dollars per share) | 1.86 | |||
Forfeited (in dollars per share) | 7.71 | |||
Options outstanding, ending balance (in dollars per share) | 4.05 | $ 3.61 | ||
Options vested and expected to vest (in dollars per share) | 4.03 | |||
Options exercisable (in dollars per share) | $ 3.77 | |||
Options outstanding, weighted average remaining life | 7 years 3 months 18 days | |||
Options vested and expected to vest, weighted average remaining life | 7 years 2 months 12 days | |||
Options exercisable, weighted average remaining life | 6 years 3 months 18 days | |||
Options outstanding, aggregate intrinsic value | $ 8,911 | |||
Options vested and expected to vest, aggregate intrinsic value | 8,563 | |||
Options exercisable, aggregate intrinsic value | $ 6,104 | |||
Percentage of the exercise price equal to the fair market value | 100.00% | |||
Weighted average fair value of options granted (in dollars per share) | $ 2.46 | $ 1.66 | $ 1.02 | |
Total intrinsic value of options exercised | $ 241 | $ 209 | $ 44 | |
Unrecognized compensation costs | $ 1,042 | |||
Weighted average period for cost recognition | 2 years 7 months 6 days | |||
Cash received from option exercises | $ 113 | $ 110 | 66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Unrecognized compensation cost, recognition period | 2 years 7 months 6 days | |||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life of options in years | 6 years 3 months 18 days | 6 years 3 months 18 days | ||
Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life of options in years | 6 years | 6 years | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted average period for cost recognition | 2 years 3 months 18 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Restricted Stock Unvested, beginning balance (in shares) | 37 | |||
Restricted Stock Granted (in shares) | 90 | |||
Restricted Stock Vested (in shares) | (112) | |||
Restricted Stock Unvested, ending balance (in shares) | 15 | 37 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Restricted Stock Unvested, beginning balance (in dollars per share) | $ 2.29 | |||
Restricted Stock Granted (in dollars per share) | 5.19 | |||
Restricted Stock Vested (in dollars per share) | 4.47 | |||
Restricted Stock Unvested, ending balance (in dollars per share) | $ 3.35 | $ 2.29 | ||
Unrecognized compensation expense | $ 32 | |||
Unrecognized compensation cost, recognition period | 2 years 3 months 18 days | |||
Value Creation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Total fair value | $ 4,130 | |||
Stock Prices (in dollars per share) | $ 1.39 | |||
Risk-free interest rate, minimum | 0.30% | |||
Risk-free interest rate, maximum | 0.60% | |||
Expected volatility, minimum | 41.30% | |||
Expected volatility, maximum | 46.10% | |||
Dividend yield | 0.00% | |||
Value Creation Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Stock Prices (in dollars per share) | $ 3.96 | |||
Expected life of options in years | 2 years 9 months 18 days | |||
Value Creation Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Stock Prices (in dollars per share) | $ 1.76 | |||
Expected life of options in years | 1 year 4 months 24 days | |||
Stock Plan 2010 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 4,150 | |||
Shares available for issuance (in shares) | 1,387 | |||
Stock Plan 2004 and 2010 [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Total non-cash stock-based compensation expense included in selling, general and administrative expenses | $ 2,601 | $ 4,023 | 1,034 | |
Stock Plan 2004 and 2010 [Member] | Stock Options [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Total non-cash stock-based compensation expense included in selling, general and administrative expenses | 541 | 420 | 448 | |
Stock Plan 2004 and 2010 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Total non-cash stock-based compensation expense included in selling, general and administrative expenses | 693 | 997 | 586 | |
Stock Plan 2004 and 2010 [Member] | Value Creation Plan [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Total non-cash stock-based compensation expense included in selling, general and administrative expenses | 1,310 | 2,566 | 0 | |
Stock Plan 2004 and 2010 [Member] | Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Total non-cash stock-based compensation expense included in selling, general and administrative expenses | $ 57 | $ 40 | $ 0 |
Commitments and Contingencies53
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 05, 2014 | |
Operating Leases [Abstract] | ||||
Total rental expense from continuing operations | $ 1,318 | $ 1,239 | $ 1,209 | |
2,016 | 363 | |||
2,017 | 337 | |||
2,018 | 19 | |||
2,019 | 19 | |||
2,020 | 19 | |||
Thereafter | 2 | |||
Total | 759 | |||
Omnifrio Single-Serve Beverage Business [Member] | ||||
Omnifrio Single-Serve Beverage Business [Abstract] | ||||
Deferred purchase price payments | $ 1,942 | $ 1,987 | ||
Prism Arbitration [Member] | ||||
Omnifrio Single-Serve Beverage Business [Abstract] | ||||
Arbitration damaged claim value | $ 1,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal statutory taxes | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal tax benefit | 4.80% | 3.70% | 3.80% |
Foreign taxes less than the domestic rate | 3.70% | (0.50%) | (0.40%) |
Permanent differences | 1.50% | (0.20%) | (0.20%) |
Change in valuation allowance | (154.90%) | (35.60%) | (27.60%) |
Changes in rates and other true-ups | 110.90% | 0.00% | (9.10%) |
Other | 0.00% | (1.40%) | (0.50%) |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Deferred tax assets [Abstract] | |||
Federal net operating loss carryforward | $ 46,183 | $ 45,537 | |
State loss carryforward | 3,706 | 4,400 | |
Goodwill | 19,688 | 22,339 | |
Other intangible assets | 3,071 | 3,431 | |
Allowance for bad debts | 600 | 876 | |
Stock-based compensation | 2,520 | 2,711 | |
Accrued expenses | 374 | 95 | |
Inventory | 39 | 49 | |
Fixed assets | 0 | 133 | |
Other | 1,266 | 1,215 | |
Total gross deferred tax assets | 77,447 | 80,786 | |
Deferred tax liabilities [Abstract] | |||
Fixed assets | (139) | 0 | |
Total gross deferred tax liabilities | (139) | 0 | |
Valuation allowance | (77,308) | (80,786) | |
Total net deferred liability | 0 | 0 | |
Change in amount of deferred tax asset valuation allowance | (3,478) | $ 4,475 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits | 0 | ||
Uncertain tax positions | 0 | ||
U.S. Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 135,832 | ||
U.S. Federal [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Expiration dates for operating loss carryforwards | Dec. 31, 2025 | ||
U.S. Federal [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Expiration dates for operating loss carryforwards | Dec. 31, 2035 | ||
Canadian Federal and Provincial [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 9,621 | ||
Canadian Federal and Provincial [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Expiration dates for operating loss carryforwards | Dec. 31, 2030 | ||
Canadian Federal and Provincial [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Expiration dates for operating loss carryforwards | Dec. 31, 2035 | ||
State Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 112,310 | ||
State Jurisdiction [Member] | Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Expiration dates for operating loss carryforwards | Dec. 31, 2015 | ||
State Jurisdiction [Member] | Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Expiration dates for operating loss carryforwards | Dec. 31, 2035 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Assets [Abstract] | |||
Cash equivalents | $ 507 | ||
Total | 507 | ||
Estimated fair value of Refill equipment on a nonrecurring basis | 49 | $ 58 | |
Impairment associated with barter credits | 196 | 0 | $ 1,069 |
Estimated fair value of barter credits on a nonrecurring basis | 0 | ||
Prepaid expenses and other current assets | 10 | ||
Fair value of barter credits recorded in other assets | $ 187 | ||
Fair Value Measurement Using Level 1 [Member] | |||
Current Assets [Abstract] | |||
Cash equivalents | 507 | ||
Total | $ 507 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic [Abstract] | |||||||||||
Income (loss) from continuing operations | $ 2,153 | $ (13,064) | $ (8,844) | ||||||||
Loss from discontinued operations | (296) | (403) | (1,862) | ||||||||
Net income (loss) | $ 44 | $ 1,324 | $ 726 | $ (237) | $ (3,526) | $ 217 | $ (6,406) | $ (3,753) | $ 1,857 | $ (13,467) | $ (10,706) |
Weighted average shares (in shares) | 25,190 | 24,339 | 23,935 | ||||||||
Basic earnings (loss) per share from continuing (in dollars per share) | $ 0.01 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) | $ 0.01 | $ (0.25) | $ (0.15) | $ 0.08 | $ (0.54) | $ (0.37) |
Basic loss per share from discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.01) | (0.01) | (0.08) |
Net income (loss) (in dollars per share) | $ 0 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) | $ 0.01 | $ (0.26) | $ (0.16) | $ 0.07 | $ (0.55) | $ (0.45) |
Diluted [Abstract] | |||||||||||
Income (loss) from continuing operations | $ 2,153 | $ (13,064) | $ (8,844) | ||||||||
Loss from discontinued operations | (296) | (403) | (1,862) | ||||||||
Net income (loss) | $ 44 | $ 1,324 | $ 726 | $ (237) | $ (3,526) | $ 217 | $ (6,406) | $ (3,753) | $ 1,857 | $ (13,467) | $ (10,706) |
Weighted average shares (in shares) | 25,190 | 24,339 | 23,935 | ||||||||
Potential shares arising from stock options, restricted stock, warrants and contingently issuable shares under the VCP (in shares) | 1,811 | 0 | 0 | ||||||||
Weighted average shares - diluted (in shares) | 27,001 | 24,339 | 23,935 | ||||||||
Diluted earnings (loss) per share from continuing operations (in dollars per share) | $ 0.01 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) | $ 0.01 | $ (0.25) | $ (0.15) | $ 0.08 | $ (0.54) | $ (0.37) |
Diluted loss per share from discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.01) | (0.01) | (0.08) |
Net income (loss) (in dollars per share) | $ 0 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) | $ 0.01 | $ (0.26) | $ (0.16) | $ 0.07 | $ (0.55) | $ (0.45) |
Adjust EBITDA | $ 15,000 | ||||||||||
Antidilutive Securities excluded from computation of earnings per share (in shares) | 1,267 | 3,154 | 2,611 |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segments [Abstract] | |||||||||||
Number of operating segments | Segment | 2 | ||||||||||
Number of reportable segments | Segment | 2 | ||||||||||
Canadian operations in total net sales | 5.10% | 6.70% | 8.40% | ||||||||
Canadian operations in property and equipment | 4.80% | 6.20% | |||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment net sales | $ 31,476 | $ 33,863 | $ 32,399 | $ 29,213 | $ 29,566 | $ 26,374 | $ 26,853 | $ 23,528 | $ 126,951 | $ 106,322 | $ 91,209 |
Segment income (loss) from operations | 726 | $ 1,833 | $ 1,261 | $ 320 | (2,989) | $ 803 | $ (2,195) | $ (2,358) | 4,140 | (6,739) | (4,419) |
Non-recurring costs | (275) | (2,881) | (777) | ||||||||
Depreciation and amortization | (634) | (10,432) | (10,655) | (11,333) | |||||||
Loss on disposal and impairment of property and equipment | (500) | (2,104) | (126) | ||||||||
Depreciation and amortization expense | 634 | 10,432 | 10,655 | 11,333 | |||||||
Capital expenditures | 7,842 | 7,922 | 7,300 | ||||||||
Identifiable assets | 64,873 | 65,748 | 64,873 | 65,748 | |||||||
Operating Segments [Member] | Water [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment net sales | 89,623 | 71,360 | 63,828 | ||||||||
Segment income (loss) from operations | 28,835 | 22,585 | 17,717 | ||||||||
Depreciation and amortization | (9,781) | (9,740) | (10,057) | ||||||||
Depreciation and amortization expense | 9,781 | 9,740 | 10,057 | ||||||||
Capital expenditures | 7,535 | 7,326 | 6,964 | ||||||||
Identifiable assets | 50,617 | 52,758 | 50,617 | 52,758 | |||||||
Operating Segments [Member] | Dispensers [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment net sales | 37,328 | 34,962 | 27,381 | ||||||||
Segment income (loss) from operations | 1,851 | 1,452 | 827 | ||||||||
Depreciation and amortization | (259) | (332) | (575) | ||||||||
Depreciation and amortization expense | 259 | 332 | 575 | ||||||||
Capital expenditures | 108 | 436 | 62 | ||||||||
Identifiable assets | 12,843 | 11,075 | 12,843 | 11,075 | |||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment income (loss) from operations | (15,339) | (15,136) | (10,727) | ||||||||
Depreciation and amortization | (392) | (583) | (701) | ||||||||
Depreciation and amortization expense | 392 | 583 | 701 | ||||||||
Capital expenditures | 199 | 160 | $ 274 | ||||||||
Identifiable assets | $ 1,413 | $ 1,915 | $ 1,413 | $ 1,915 |
Supplemental Cash Flow Inform58
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Cash Flow Supplemental Disclosures [Abstract] | |||
Cash paid for interest | $ 1,493 | $ 3,319 | $ 3,278 |
Noncash investing activities [Abstract] | |||
Assets acquired under capital leases | 345 | 427 | 0 |
Accrued capital expenditures | $ 1,054 | $ 615 | $ 1,313 |
Employee Retirement Savings P59
Employee Retirement Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Retirement Savings Plan [Abstract] | |||
Minimum eligibility age for employee retirement savings plan | 21 years | ||
Service period required for qualification | 2 months | ||
Vesting percentage for employee contribution | 100.00% | ||
Vesting percentage for employer contribution | 25.00% | ||
Number of years of employment required for full vesting | 4 years | ||
Number of hours of service required for year of service | 1000 hours | ||
Employer matching contribution percentage | 50.00% | ||
Maximum employee contribution percentage eligible for matching by the employer | 6.00% | ||
Percentage of employer matching which is subject to contingency | 50.00% | ||
Contribution expense | $ 147 | $ 87 | $ 47 |
Selected Quarterly Financial 60
Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information (Unaudited) [Abstract] | |||||||||||
Net sales | $ 31,476 | $ 33,863 | $ 32,399 | $ 29,213 | $ 29,566 | $ 26,374 | $ 26,853 | $ 23,528 | $ 126,951 | $ 106,322 | $ 91,209 |
Total operating costs and expenses | 30,750 | 32,030 | 31,138 | 28,893 | 32,555 | 25,571 | 29,048 | 25,886 | 122,811 | 113,061 | 95,628 |
Income (loss) from operations | 726 | 1,833 | 1,261 | 320 | (2,989) | 803 | (2,195) | (2,358) | 4,140 | (6,739) | (4,419) |
Net income (loss) | $ 44 | $ 1,324 | $ 726 | $ (237) | $ (3,526) | $ 217 | $ (6,406) | $ (3,753) | $ 1,857 | $ (13,467) | $ (10,706) |
Basic earnings (loss) per common share: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | $ 0.01 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) | $ 0.01 | $ (0.25) | $ (0.15) | $ 0.08 | $ (0.54) | $ (0.37) |
Loss from discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.01) | (0.01) | (0.08) |
Net income (loss) (in dollars per share) | 0 | 0.05 | 0.03 | (0.01) | (0.14) | 0.01 | (0.26) | (0.16) | 0.07 | (0.55) | (0.45) |
Diluted earnings (loss) per common share: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | 0.01 | 0.05 | 0.03 | (0.01) | (0.14) | 0.01 | (0.25) | (0.15) | 0.08 | (0.54) | (0.37) |
Loss from discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.01) | (0.01) | (0.01) | (0.08) |
Net income (loss) (in dollars per share) | $ 0 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) | $ 0.01 | $ (0.26) | $ (0.16) | $ 0.07 | $ (0.55) | $ (0.45) |
Incremental income from operations | $ 1,017 | ||||||||||
Depreciation expense | $ 634 | $ 10,432 | $ 10,655 | $ 11,333 |