Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 24, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | ACME UNITED CORP | |
Entity Central Index Key | 2,098 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,374,061 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 7,021 | $ 5,911 |
Accounts receivable, less allowance | 31,579 | 20,021 |
Inventories: | ||
Finished goods | 30,911 | 33,972 |
Work in process | 184 | 188 |
Raw materials and supplies | 5,704 | 3,078 |
Total inventory | 36,799 | 37,238 |
Prepaid expenses and other current assets | 2,448 | 2,293 |
Total current assets | 77,847 | 65,463 |
Property, plant and equipment: | ||
Land | 427 | 413 |
Buildings | 6,232 | 5,669 |
Machinery and equipment | 15,808 | 13,428 |
Total property, plant and equipment | 22,467 | 19,510 |
Less accumulated depreciation | 13,018 | 11,537 |
Net property, plant and equipment | 9,449 | 7,973 |
Goodwill | 3,948 | 3,948 |
Intangible assets, less accumulated amortization | 18,929 | 13,988 |
Other assets | 765 | 694 |
Total assets | 110,938 | 92,066 |
Current liabilities: | ||
Accounts payable | 8,463 | 7,339 |
Other accrued liabilities | 5,520 | 5,481 |
Total current liabilities | 13,983 | 12,820 |
Long-term debt | 45,969 | 32,936 |
Other non-current liabilities | 266 | 190 |
Total liabilities | 60,218 | 45,946 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $2.50: authorized 8,000,000 shares; issued - 4,838,071 shares in 2017 and 4,788,965 in 2016, including treasury stock | 12,094 | 11,972 |
Additional paid-in capital | 8,812 | 8,493 |
Retained earnings | 45,492 | 41,861 |
Treasury stock, at cost - 1,464,010 shares in 2017 and 2016 | (13,870) | (13,870) |
Accumulated other comprehensive loss: | ||
Minimum pension liability | (664) | (664) |
Translation adjustment | (1,144) | (1,672) |
Total accumulated other comprehensive loss | (1,808) | (2,336) |
Total stockholders' equity | 50,720 | 46,120 |
Total liabilities and stockholders' equity | $ 110,938 | $ 92,066 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 4,838,071 | 4,788,965 |
Treasury stock, shares | 1,464,010 | 1,464,010 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidated Statements Of Operations | ||||
Net sales | $ 33,785 | $ 31,913 | $ 100,380 | $ 98,198 |
Cost of goods sold | 21,559 | 20,050 | 63,107 | 62,455 |
Gross profit | 12,226 | 11,863 | 37,273 | 35,743 |
Selling, general and administrative expenses | 10,277 | 9,723 | 30,243 | 28,008 |
Operating income | 1,949 | 2,140 | 7,030 | 7,735 |
Non-operating items: | ||||
Interest expense, net | 365 | 247 | 949 | 642 |
Other (income) expense, net | 16 | 65 | (44) | 38 |
Total other expense, net | 381 | 312 | 905 | 680 |
Income before income taxes | 1,568 | 1,828 | 6,125 | 7,055 |
Income tax expense | 366 | 355 | 1,418 | 1,750 |
Net income | $ 1,202 | $ 1,473 | $ 4,707 | $ 5,305 |
Basic earnings per share | $ .36 | $ .44 | $ 1.40 | $ 1.59 |
Diluted earnings per share | $ .32 | $ .40 | $ 1.25 | $ 1.49 |
Weighted average number of common shares outstanding - denominator used for basic per share computations | 3,373,000 | 3,324,000 | 3,351,000 | 3,329,000 |
Weighted average number of dilutive stock options outstanding | 421,000 | 317,000 | 414,000 | 233,000 |
Denominator used for diluted per share computations | 3,794,000 | 3,641,000 | 3,765,000 | 3,562,000 |
Dividends declared per share | $ .11 | $ 0.10 | $ 0.32 | $ .30 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidated Statements Of Comprehensive Income | ||||
Net income | $ 1,202 | $ 1,473 | $ 4,707 | $ 5,305 |
Other comprehensive income (loss): | ||||
Foreign currency translation | 234 | (26) | 528 | 168 |
Comprehensive income | $ 1,436 | $ 1,447 | $ 5,235 | $ 5,473 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 4,707 | $ 5,305 |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||
Depreciation | 1,253 | 1,097 |
Amortization | 874 | 693 |
Stock compensation expense | 552 | 306 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,866) | (5,145) |
Inventories | 1,382 | (2,134) |
Prepaid expenses and other assets | (147) | 219 |
Accounts payable | 1,079 | 21 |
Other accrued liabilities | (30) | 1,223 |
Total adjustments | (5,903) | (3,720) |
Net cash (used) provided by operating activities | (1,196) | 1,585 |
Cash flows from investing activities: | ||
Purchase of property, plant, and equipment | (2,401) | (1,320) |
Purchase of patents and trademarks | (29) | |
Acquisition of businesses | (7,233) | (6,971) |
Net cash used by investing activities | (9,634) | (8,320) |
Cash flows from financing activities: | ||
Net borrowings of long-term debt | 13,033 | 13,793 |
Cash settlement of stock options | (760) | (1,700) |
Proceeds from issuance of common stock | 649 | 390 |
Distributions to stockholders | (1,037) | (1,000) |
Purchase of treasury stock | (907) | |
Net cash provided by financing activities | 11,885 | 10,576 |
Effect of exchange rate changes on cash and cash equivalents | 55 | 5 |
Net decrease in cash and cash equivalents | 1,110 | 3,846 |
Cash and cash equivalents at beginning of period | 5,911 | 2,426 |
Cash and cash equivalents at end of period | 7,021 | 6,272 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 728 | 839 |
Cash paid for interest | $ 908 | $ 610 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of a normal, recurring nature. However, the financial statements do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2016 for such disclosures. The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated balance sheet as of that date. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K. The Company has evaluated events and transactions subsequent to September 30, 2017 and through the date these condensed consolidated financial statements were included in this Form 10-Q and filed with the SEC. Recently Issued and Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (FASB) issued Auditing Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. We adopted this guidance prospectively at the beginning of first quarter 2017 and it has not had a material impact on our financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new guidance clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We do not expect that ASU 2017-01 will have a material impact on our financial statements. In March 2016, the FASB issued ASU 2016-09 to improve the accounting for employee share-based payments. This standard simplifies several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows, as part of FASB’s simplification initiative to reduce cost and complexity in accounting standards while maintaining or improving the usefulness of the information provided to the users of financial statements. The new standard was effective for the Company beginning on January 1, 2017. The adoption of the new standard resulted in the recognition of excess tax benefits in the amount of approximately $350,000 in our provision for income taxes within the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2017, rather than additional paid-in capital. Additionally, our Condensed Consolidated Statement of Cash Flows now present excess tax benefits as an operating activity included in other accrued liabilities, adjusted prospectively. In February 2016, the FASB issued guidance that will change the requirements for accounting for leases. The principal change under the new accounting guidance is that lessees under leases classified as operating leases will recognize a right-of-use asset and a lease liability. Current lease accounting does not require lessees to recognize assets and liabilities arising under operating leases on the balance sheet. Under the new guidance, lessees (including lessees under leases classified as finance leases and operating leases) will recognize a right-to-use asset and a lease liability on the balance sheet, initially measured as the present value of lease payments under the lease. Expense recognition and cash flow presentation guidance will be based upon whether the lease is classified as an operating lease or a finance lease (the classification criteria for distinguishing between finance leases and operating leases is substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current guidance). The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements; the guidance provides certain practical expedients. The Company will evaluate this guidance in 2018 to determine its impact on the Company’s results of operations, cash flows and financial position. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2014-09 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ASU 2015-14 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Contingencies | |
Contingencies | 2. Contingencies The Company may be involved from time to time in disputes and other litigation in the ordinary course of business and may encounter other contingencies, which may include environmental and other matters. There are no pending material legal proceedings to which the registrant is a party, or, to the actual knowledge of the Company, contemplated by any governmental authority. In 2014, the Company sold its Fremont, NC distribution facility for $850,000 in cash. Under the terms of the sale agreement, the Company is responsible to remediate any environmental contamination on the property. In conjunction with the sale of the property, the Company recorded a liability of $300,000 in the second quarter of 2014, related to the remediation of the property. The accrual includes the total estimated costs of remedial activities and post-remediation monitoring costs. Remediation work on the project was completed in 2015. The monitoring period is expected to be completed by the end of 2020. The change in the accrual for environmental remediation for the nine months ended September 30, 2017 follows (in thousands): Balance at Payments Balance at Fremont, NC $ 57 $ (9 ) $ 48 |
Pension
Pension | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Pension | 3. Pension Components of net periodic benefit cost (income) are as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Components of Net Periodic Benefit Cost: Interest cost $ 8 $ 15 $ 36 $ 44 Service cost 9 6 27 19 Expected return on plan assets (12 ) (23 ) (52 ) (69 ) Amortization of prior service costs (4 ) 2 0 7 Amortization of actuarial loss 29 28 81 84 $ 30 $ 28 $ 92 $ 85 The Company’s funding policy with respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations. In 2017, the Company is not required to contribute to the plan. As of September 30, 2017, the Company had not made any contributions to the plan in 2017 and the Company does not anticipate that it will make any such contributions in the balance of 2017. |
Debt and Shareholders' Equity
Debt and Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Debt And Shareholders Equity | |
Debt and Stockholders Equity | 4. Debt and Shareholders’ Equity On January 27, 2017, the Company amended its revolving credit loan agreement with HSBC Bank, N.A. on a temporary basis in order to provide for the funding of the Company’s acquisition of the assets of Spill Magic, Inc. as described in Note 8 above. The amended facility provided for an increase in borrowings from $50 million to $55 million for the period commencing on April 1, 2017 and ending on September 30, 2017. Commencing October 1, 2017, the maximum amount outstanding at any time under the facility returned to $50 million. The interest rate on borrowings remains unchanged at a rate of LIBOR plus 2.0%. In addition, the amendment modified the debt to net worth ratio covenant applicable during the same nine month period. The Company must pay a facility fee, payable quarterly, in an amount equal to two tenths of one percent (.20%) per annum of the average daily unused portion of the revolving credit line. All principal amounts outstanding under the agreement are required to be repaid in a single amount on May 6, 2019, the date the loan agreement expires; interest is payable monthly. Funds borrowed under the agreement may be used for working capital, acquisitions, general operating expenses, share repurchases and certain other purposes. Under the revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified debt to net worth ratio and a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year. As of September 30, 2017 and December 31, 2016, the Company had outstanding borrowings of $45,969,000 and $32,936,000, respectively, under the Company’s revolving loan agreement with HSBC. During the three months ended September 30, 2017, the Company issued a total of 2,108 shares of common stock and received aggregate proceeds of $21,291 upon exercise of employee stock options. During the nine months ended September 30, 2017, the Company issued a total of 49,106 shares of common stock and received aggregate proceeds of $649,232 upon exercise of employee stock options. Also during the three and nine months ended September 30, 2017, the Company paid approximately $27,680 and $759,573, respectively, to optionees who had elected a net cash settlement of their respective options. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information | |
Segment Information | 5. Segment Information The Company reports financial information based on the organizational structure used by the Company’s chief operating decision makers for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada; and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, the Company’s chief operating decision makers review the financial results of both on a consolidated basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and safety products for school, office, home, hardware, sporting and industrial use. Domestic sales orders are filled primarily from the Company’s distribution centers in North Carolina, Washington, Massachusetts, California and Tennessee. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots. Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 10% and 12% of the Company’s total net sales for the three and nine months ended September 30, 2017 compared to 15% and 19% for the comparable periods in 2016. The chief operating decision maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. The following table sets forth certain financial data by segment for the three and nine months ended September 30, 2017 and 2016: Financial data by segment: (in thousands) Three months ended Nine months ended Sales to external customers: 2017 2016 2017 2016 United States $ 30,038 $ 28,489 $ 88,653 $ 87,311 Canada 1,661 1,585 5,556 5,623 Europe 2,086 1,839 6,171 5,264 Consolidated $ 33,785 $ 31,913 $ 100,380 $ 98,198 Operating income (loss): United States $ 1,709 $ 1,974 $ 6,084 $ 7,165 Canada 209 148 744 558 Europe 31 18 202 12 Consolidated $ 1,949 $ 2,140 $ 7,030 $ 7,735 Interest expense, net 365 247 949 642 Other (income) expense, net 16 65 (44 ) 38 Consolidated income before income taxes $ 1,568 $ 1,828 $ 6,125 $ 7,055 Assets by segment: ( in thousands ) September 30, December 31, 2017 2016 United States $ 101,420 $ 84,104 Canada 4,615 3,882 Europe 4,903 4,080 Consolidated $ 110,938 $ 92,066 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | 6. Stock Based Compensation The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period. Share-based compensation expenses were $315,000 and $122,001 for the three months ended September 30, 2017 and 2016, respectively. Share-based compensation expenses were $551,717 and $305,536 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, there was a total of $1,053,504 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share–based payments granted to the Company’s employees. As of that date, the remaining unamortized expense is expected to be recognized over a weighted average period of approximately three years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | 7. Fair Value Measurements The carrying value of the Company’s bank debt approximates fair value. Fair value was determined using a discounted cash flow analysis. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination | 8. Business Combinations A) Acquisition of the assets of Spill Magic, Inc. On February 1, 2017, the Company purchased the assets of Spill Magic, Inc., located in Santa Ana, CA and Smyrna, TN for $7.2 million in cash. The Spill Magic products are leaders in absorbents that encapsulate spills into dry powders that can be safely disposed. Many large retail chains use its products to remove liquids from broken glass containers, oil and gas spills, bodily fluids and solvents. The purchase price was allocated to assets acquired as follows (in thousands): Assets: Accounts receivable $ 684 Inventory 453 Equipment 296 Intangible assets 5,800 Total assets $ 7,233 Management’s assessment of the valuation of intangible assets is preliminary and finalization of the Company’s purchase price accounting assessment may result in changes to the valuation of the identified intangible assets. The Company will finalize, as of December 31, 2017, the purchase price allocation within the measurement period in accordance with Accounting Standards Codification Topic 805 “Business Combinations”. Assuming Spill Magic assets were acquired on January 1, 2017, unaudited pro forma combined net sales for the nine months ended September 30, 2017 for the Company would have been approximately $100.8 million. Unaudited pro forma combined net income for the nine months ended September 30, 2017 for the Company would have been approximately $4.8 million. Net sales for the three and nine months ended September 30, 2017 attributable to Spill Magic products were approximately $1.9 million and $4.9 million, respectively. Net income for the three and nine months ended September 30, 2017 attributable to Spill Magic products was approximately $0.2 million and $0.5 million, respectively. Assuming Spill Magic assets were acquired on January 1, 2016, unaudited proforma combined net sales for the three and nine months ended September 30, 2016, for the Company would have been approximately $33.6 million and $103.2 million, respectively. Unaudited proforma combined net income for the three and nine months ended September 30, 2016 for the Company would have been approximately $1.8 million and $6.1 million, respectively. B) Acquisition of the assets of Vogel Capital, Inc. On February 1, 2016, the Company acquired the assets of Vogel Capital, Inc., d/b/a Diamond Machining Technology (“DMT”) based in Marlborough, MA for $6.97 million in cash. The DMT products are leaders in sharpening tools for knives, scissors, chisels, and other cutting tools. The DMT products use finely dispersed diamonds on the surfaces of sharpeners. The acquired assets include over 50 patents and trademarks. The purchase price was allocated to assets acquired and liabilities assumed as follows (in thousands): Assets: Accounts receivable $ 1,145 Inventory 280 Equipment 262 Prepaid expenses 176 Intangible assets 5,481 Total assets $ 7,344 Liabilities Accounts payable $ 192 Accrued expense 181 Total liabilities $ 373 Assuming the assets of DMT were acquired on January 1, 2016, unaudited pro forma combined net sales for the nine months ended September 30, 2016 for the Company would have been approximately $98.8 million. Unaudited pro forma combined net income for the nine months ended September 30, 2016 for the Company would have been approximately $5.4 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company’s effective tax rates for the three and nine month periods ended September 30, 2017 were both 23%, compared to 19% and 25% during the same periods in 2016. In the nine months ended September 30, 2017, the Company recorded approximately $350,000 in excess tax benefits resulting from the adoption of ASU 2016-09 in 2017. Excluding the impact of the tax benefit, the effective tax rate would have been 29% for the nine months ended September 30, 2017. In 2016, the Company donated school products to the Kids In Need Foundation. Excluding the impact of the charitable donation in 2016, the effective tax rate for the three and nine months ended September 30, 2016 would have been 30%. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 10. Subsequent Event On October 26, 2017, the Company exercised its option to purchase its First Aid Only manufacturing and distribution center in Vancouver, WA for $4 million. The property consists of 53,000 square feet of office, manufacturing, and warehouse space on 2.86 acres. The purchase was financed by a variable rate mortgage, calculated using the 30 day LIBOR rate plus 2.5%, currently at 3.74% through HSBC Bank NA. |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Contingencies Tables | |
Accrual for Environmental Remediation Table | Balance at Payments Balance at Fremont, NC $ 57 $ (9 ) $ 48 |
Pension (Tables)
Pension (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Pension Tables | |
Components of Net Benefit Cost | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Components of Net Periodic Benefit Cost: Interest cost $ 8 $ 15 $ 36 $ 44 Service cost 9 6 27 19 Expected return on plan assets (12 ) (23 ) (52 ) (69 ) Amortization of prior service costs (4 ) 2 0 7 Amortization of actuarial loss 29 28 81 84 $ 30 $ 28 $ 92 $ 85 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information Tables | |
Financial Data By Segment Table | Financial data by segment: (in thousands) Three months ended Nine months ended Sales to external customers: 2017 2016 2017 2016 United States $ 30,038 $ 28,489 $ 88,653 $ 87,311 Canada 1,661 1,585 5,556 5,623 Europe 2,086 1,839 6,171 5,264 Consolidated $ 33,785 $ 31,913 $ 100,380 $ 98,198 Operating income (loss): United States $ 1,709 $ 1,974 $ 6,084 $ 7,165 Canada 209 148 744 558 Europe 31 18 202 12 Consolidated $ 1,949 $ 2,140 $ 7,030 $ 7,735 Interest expense, net 365 247 949 642 Other (income) expense, net 16 65 (44 ) 38 Consolidated income before income taxes $ 1,568 $ 1,828 $ 6,125 $ 7,055 |
Assets By Segment | Assets by segment: ( in thousands ) September 30, December 31, 2017 2016 United States $ 101,420 $ 84,104 Canada 4,615 3,882 Europe 4,903 4,080 Consolidated $ 110,938 $ 92,066 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Vogel Capital Inc. d/b/a Diamond Machining Technology | |
Purchase Price Allocation | Assets: Accounts receivable $ 1,145 Inventory 280 Equipment 262 Prepaid expenses 176 Intangible assets 5,481 Total assets $ 7,344 Liabilities Accounts payable $ 192 Accrued expense 181 Total liabilities $ 373 |
Spill Magic | |
Purchase Price Allocation | Assets: Accounts receivable $ 684 Inventory 453 Equipment 296 Intangible assets 5,800 Total assets $ 7,233 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Recognition of excess tax benefits | $ 350 |
Accounting Standards Update 201609 [Member] | |
Recognition of excess tax benefits | $ 350 |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - Fremont, NC $ in Thousands | Apr. 07, 2014USD ($) |
Proceeds from sale of assets | $ 850 |
Environmental remediation liability | $ 300 |
Contingencies - Accrual for Env
Contingencies - Accrual for Environmental Remediation (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Environmental remediation accrual at December 31, 2016 | $ 57 |
Payments | (9) |
Environmental remediation accrual at September 30, 2017 | 48 |
Fremont, NC | |
Environmental remediation accrual at December 31, 2016 | 57 |
Payments | (9) |
Environmental remediation accrual at September 30, 2017 | $ 48 |
Pension - Periodic Benefit Cost
Pension - Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net periodic benefit cost: | ||||
Interest cost | $ 8 | $ 15 | $ 36 | $ 44 |
Service cost | 9 | 6 | 27 | 19 |
Expected return on plan assets | (12) | (23) | (52) | (69) |
Amortization of prior service costs | (4) | 2 | 0 | 7 |
Amortization of actuarial loss | 29 | 28 | 81 | 84 |
Net periodic benefit cost | $ 30 | $ 28 | $ 92 | $ 85 |
Debt and Shareholders' Equity (
Debt and Shareholders' Equity (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2016 | |
Debt And Shareholders Equity Details Narrative | |||||||
Outstanding borrowings under revolving loan agreement | $ 45,969 | $ 45,969 | $ 32,936 | ||||
Credit facility borrowing capacity | $ 55,000 | $ 55,000 | $ 50,000 | $ 55,000 | |||
Interest rate of LIBOR plus percentage | 2.00% | ||||||
Credit facility interest rate | Interest rate of LIBOR plus 2.0% | ||||||
Facility fee per annum | 0.20% | ||||||
Credit facility expiration date | May 6, 2019 | ||||||
Common stock issued upon exercise of employee stock options (in shares) | 2,108 | 49,106 | |||||
Cash received upon exercise of employee stock options | $ 21 | $ 649 | |||||
Cash paid to settle employee stock options | $ 28 | $ 760 | $ 1,700 |
Segment Information - Financial
Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Sales to external customers | $ 33,785 | $ 31,913 | $ 100,380 | $ 98,198 | |
Operating income (loss) | 1,949 | 2,140 | 7,030 | 7,735 | |
Interest expense, net | 365 | 247 | 949 | 642 | |
Other (income) expense, net | 16 | 65 | (44) | 38 | |
Consolidated income before income taxes | 1,568 | 1,828 | 6,125 | 7,055 | |
Assets | 110,938 | 110,938 | $ 92,066 | ||
United States | |||||
Sales to external customers | 30,038 | 28,489 | 88,653 | 87,311 | |
Operating income (loss) | 1,709 | 1,974 | 6,084 | 7,165 | |
Assets | 101,420 | 101,420 | 84,104 | ||
Canada | |||||
Sales to external customers | 1,661 | 1,585 | 5,556 | 5,623 | |
Operating income (loss) | 209 | 148 | 744 | 558 | |
Assets | 4,615 | 4,615 | 3,882 | ||
Europe | |||||
Sales to external customers | 2,086 | 1,839 | 6,171 | 5,264 | |
Operating income (loss) | 31 | $ 18 | 202 | $ 12 | |
Assets | $ 4,903 | $ 4,903 | $ 4,080 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Information Details Narrative | ||||
Direct import sales to total net sales ratio | 10.00% | 15.00% | 12.00% | 19.00% |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Based Compensation Details Narrative | ||||
Share-based compensation expense | $ 315 | $ 122 | $ 552 | $ 306 |
Unrecognized compensation cost | $ 1,054 | $ 1,054 | ||
Unrecognized compensation cost recognition period | 3 years |
Business Combination (Details N
Business Combination (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 33,785 | $ 31,913 | $ 100,380 | $ 98,198 | ||
Net income | 1,949 | 2,140 | 7,030 | 7,735 | ||
Vogel Capital Inc. d/b/a Diamond Machining Technology | ||||||
Purchase price | $ 6,970 | |||||
Unaudited proforma net sales during period | 98,800 | |||||
Unaudited proforma net income during period | 5,400 | |||||
Spill Magic | ||||||
Purchase price | $ 7,200 | |||||
Net sales | 1,900 | 4,900 | ||||
Net income | $ 200 | 500 | ||||
Unaudited proforma net sales during period | 33,600 | 100,800 | 103,200 | |||
Unaudited proforma net income during period | $ 1,800 | $ 4,800 | $ 6,100 |
Business Combination Purchase P
Business Combination Purchase Price Allocation (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Feb. 29, 2016 |
Vogel Capital Inc. d/b/a Diamond Machining Technology | ||
Assets: | ||
Accounts receivable | $ 1,145 | |
Inventory | 280 | |
Equipment | 262 | |
Prepaid expenses | 176 | |
Intangible assets | 5,481 | |
Total assets | 7,344 | |
Liabilities: | ||
Accounts payable | 192 | |
Accrued expense | 181 | |
Total liabilities | $ 373 | |
Spill Magic | ||
Assets: | ||
Accounts receivable | $ 684 | |
Inventory | 453 | |
Equipment | 296 | |
Intangible assets | 5,800 | |
Total assets | $ 7,233 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.00% | 19.00% | 23.00% | 25.00% |
Recognition of excess tax benefits | $ 350 | |||
Effective rate excluding tax benefits | 29.00% | |||
Effective rate excluding donation | 30.00% |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | |
Oct. 31, 2017 | Jan. 31, 2017 | |
Interest rate of LIBOR plus percentage | 2.00% | |
First Aid Only Facility | ||
Purchase price | $ 4,000 | |
Interest rate of LIBOR plus percentage | 2.50% | |
Variable rate mortgage interest rate | 3.74% |