Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Mar. 07, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | RCM TECHNOLOGIES INC | ||
Entity Central Index Key | 700,841 | ||
Trading Symbol | rcmt | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 12,239,758 | ||
Entity Public Float | $ 26.3 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,851 | $ 279 |
Accounts receivable, net | 46,080 | 45,170 |
Transit accounts receivable | 3,002 | 4,295 |
Prepaid expenses and other current assets | 3,706 | 3,327 |
Total current assets | 55,639 | 53,071 |
Property and equipment, net | 3,446 | 4,052 |
Other assets: | ||
Deposits | 215 | 212 |
Goodwill | 11,685 | 12,325 |
Intangible assets, net | 105 | 171 |
Deferred tax assets, net, domestic | 2,189 | |
Total other assets | 14,194 | 12,708 |
Total assets | 73,279 | 69,831 |
Current liabilities: | ||
Accounts payable and accrued expenses | 8,634 | 8,154 |
Transit accounts payable | 4,661 | 6,776 |
Accrued payroll and related costs | 7,780 | 7,185 |
Income taxes payable | 372 | 537 |
Liability for contingent consideration from acquisitions | 741 | 1,061 |
Total current liabilities | 22,188 | 23,713 |
Liability for contingent consideration from acquisitions | 1,350 | 170 |
Borrowings under line of credit | 27,279 | 14,311 |
Total liabilities | 51,248 | 38,576 |
Stockholders’ equity: | ||
Preferred stock, $1.00 par value; 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.05 par value; 40,000,000 shares authorized; 15,017,522 shares issued and 12,194,350 shares outstanding at December 30, 2017 and 14,716,940 shares issued and 11,953,080 shares outstanding at December 31, 2016 | 751 | 736 |
Additional paid-in capital | 104,540 | 115,607 |
Accumulated other comprehensive loss | (2,395) | (2,578) |
Accumulated deficit | (65,878) | (67,888) |
Treasury stock (2,823,172 shares at December 30, 2017 and 2,763,860 shares at December 31, 2016) at cost | (14,987) | (14,622) |
Stockholders’ equity | 22,031 | 31,255 |
Total liabilities and stockholders’ equity | 73,279 | 69,831 |
Domestic Tax Authority [Member] | ||
Current liabilities: | ||
Deferred tax liability | 148 | |
Foreign Tax Authority [Member] | ||
Current liabilities: | ||
Deferred tax liability | $ 431 | $ 234 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 30, 2017 | Dec. 31, 2016 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 15,017,522 | 14,716,940 |
Common stock, outstanding (in shares) | 12,194,350 | 11,953,080 |
Treasury stock, shares (in shares) | 2,823,172 | 2,763,860 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues | $ 186,737 | $ 176,448 |
Cost of services | 138,350 | 129,418 |
Gross profit | 48,387 | 47,030 |
Operating costs and expenses | ||
Selling, general and administrative | 40,385 | 40,063 |
Depreciation and amortization | 1,757 | 1,569 |
Legal, office closures and other charges | 1,447 | 1,283 |
Tax credit professional fees | 259 | 0 |
Change in contingent consideration | 781 | 285 |
Goodwill impairment | 3,478 | 0 |
Operating costs and expenses | 48,107 | 43,200 |
Operating income | 280 | 3,830 |
Other (expense) income | ||
Interest expense and other, net | (590) | (539) |
Gain on foreign currency transactions | 65 | 11 |
Other expense | (525) | (528) |
(Loss) income before income taxes | (245) | 3,302 |
Income tax (benefit) expense | (2,255) | 1,544 |
Net income | $ 2,010 | $ 1,758 |
Basic and diluted net income per share (in dollars per share) | $ 0.17 | $ 0.14 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Net income | $ 2,010 | $ 1,758 |
Other comprehensive income | 183 | 267 |
Total comprehensive income | $ 2,193 | $ 2,025 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance, January 2, 2016 (in shares) at Jan. 02, 2016 | 14,559,381 | 2,062,746 | ||||
Balance, January 2, 2016 at Jan. 02, 2016 | $ 728 | $ 114,331 | $ (2,845) | $ (69,646) | $ (10,365) | $ 32,203 |
Issuance of stock under employee stock purchase plan (in shares) | 81,225 | |||||
Issuance of stock under employee stock purchase plan | $ 4 | 364 | 368 | |||
Translation adjustment | 267 | $ 267 | ||||
Issuance of stock upon exercise of stock options (in shares) | 2,500 | 2,500 | ||||
Issuance of stock upon exercise of stock options | 15 | $ 15 | ||||
Issuance of stock upon vesting of restricted share units (in shares) | 73,834 | |||||
Issuance of stock upon vesting of restricted share units | $ 4 | (4) | ||||
Share based compensation expense | 901 | 901 | ||||
Common stock repurchase (in shares) | 701,114 | |||||
Common stock repurchase | $ (4,257) | (4,257) | ||||
Net income | 1,758 | 1,758 | ||||
Balance (in shares) at Dec. 31, 2016 | 14,716,940 | 2,763,860 | ||||
Balance at Dec. 31, 2016 | $ 736 | 115,607 | (2,578) | (67,888) | $ (14,622) | 31,255 |
Issuance of stock under employee stock purchase plan (in shares) | 90,931 | |||||
Issuance of stock under employee stock purchase plan | $ 4 | 390 | 394 | |||
Translation adjustment | 183 | $ 183 | ||||
Issuance of stock upon exercise of stock options (in shares) | 11,917 | 11,917 | ||||
Issuance of stock upon exercise of stock options | $ 1 | 64 | $ 65 | |||
Issuance of stock upon vesting of restricted share units (in shares) | 197,734 | |||||
Issuance of stock upon vesting of restricted share units | $ 10 | (10) | ||||
Share based compensation expense | 770 | 770 | ||||
Common stock repurchase (in shares) | 59,312 | |||||
Common stock repurchase | $ (365) | (365) | ||||
Net income | 2,010 | 2,010 | ||||
Dividends to stockholders | (12,194) | (12,194) | ||||
Dividends accrued | (87) | (87) | ||||
Balance (in shares) at Dec. 30, 2017 | 15,017,522 | 2,823,172 | ||||
Balance at Dec. 30, 2017 | $ 751 | $ 104,540 | $ (2,395) | $ (65,878) | $ (14,987) | $ 22,031 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 2,010 | $ 1,758 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,757 | 1,569 |
Increase in contingent consideration | 781 | 285 |
Goodwill impairment | 3,478 | 0 |
Share-based compensation expense | 770 | 901 |
Provision for losses on accounts receivable | 210 | 616 |
Deferred income tax (benefit) expense | (2,336) | 463 |
Changes in assets and liabilities: | ||
Accounts receivable | (459) | 5,427 |
Transit accounts receivable | 1,330 | 3,220 |
Prepaid expenses and other current assets | (293) | 1,228 |
Accounts payable and accrued expenses | (318) | (290) |
Transit accounts payable | (2,160) | (2,254) |
Accrued payroll and related costs | 483 | (1,473) |
Income taxes payable | (182) | 185 |
Total adjustments | 3,061 | 9,877 |
Net cash provided by operating activities | 5,071 | 11,635 |
Cash flows from investing activities: | ||
Property and equipment acquired | (1,040) | (846) |
Decrease in deposits | 15 | |
Cash payments for business acquired, net of cash acquired | (763) | 0 |
Net cash used in investing activities | (1,803) | (831) |
Cash flows from financing activities: | ||
Borrowings under line of credit | 92,918 | 83,605 |
Repayments on line of credit | (79,950) | (90,294) |
Sale of stock for employee stock purchase plan | 394 | 368 |
Exercise of stock options | 65 | 15 |
Common stock repurchases | (365) | (4,257) |
Dividends paid to shareholders | (12,194) | 0 |
Contingent consideration paid | (1,694) | (993) |
Net cash used in financing activities | (826) | (11,556) |
Effect of exchange rate changes on cash and cash equivalents | 130 | 46 |
Increase (decrease) in cash and cash equivalents | 2,572 | (706) |
Cash and cash equivalents at beginning of period | 279 | 985 |
Cash and cash equivalents at end of period | 2,851 | 279 |
Supplemental cash flow information: | ||
Interest | 500 | 464 |
Income taxes | 522 | 927 |
Non-cash investing activities: | ||
Non-cash consideration for business acquisitions | 1,896 | 695 |
Non-cash financing activities: | ||
Dividend declared but unpaid on unvested restricted share units | 87 | 0 |
Vesting of restricted share units | $ 1,294 | $ 473 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business and Basis of Presentation RCM Technologies , Inc. (the “Company” or “RCM”) is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering and information technology services. Additionally, the Company provides specialty health care staffing services through its Specialty Health Care Services group. RCM’s offices are primarily located in major metropolitan centers throughout North America. The consolidated financial statements are comprised of the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no Cash and Cash Equivalents The Company considers its holdings of highly liquid money-market instruments and certificates of deposits to be cash equivalents if the securities mature within 90 These investments are carried at cost, which approximates fair value. The Company’s cash balances are maintained in accounts held by major banks and financial institutions. The majority of these balances may $0.1 December 30, 2017 December 31, 2016, Fair Value of Financial Instruments The Company ’s carrying value of financial instruments, consisting primarily of accounts receivable, transit accounts receivable, accounts payable and accrued expenses, and transit accounts payable and borrowings under line of credit approximates fair value due to their liquidity or their short-term nature. The Company does not Accounts Receivable and Allowance for Doubtful Accounts The Company ’s accounts receivable are primarily due from trade customers. Credit is extended based on evaluation of customers’ financial condition and, generally, collateral is not Accrued and Unbilled Accounts Receivable and Work-in-Process Unbilled receivables primarily represent revenues earned whereby those services are ready to be billed as of the balance sheet ending date. Work-in-process primarily represents revenues earned under contracts which the Company is contractually precluded from invoicing until future dates as project milestones are realized. See Note 4 Transit Receivables and Transit Payables From time to time, the Company ’s Engineering segment enters into agreements to provide, among other things, construction management and engineering services. In certain circumstances, the Company may may no Under the terms of the agreements, the Company is typically not not The transit accounts receivable was $ 3.0 $4.7 $1.7 December 30, 2017. $4.3 $6.8 $2.5 December 31, 2016. Property and Equipment Property and equipment are stated at cost net of accumulated depreciation and amortization and are depreciated or amortized on the straight-line method at rates calculated to provide for retirement of assets at the end of their estimated useful lives. Most hardware and software as well as furniture and office equipment is depreciated or amortized over five Intangible Assets The Company ’s intangible assets have been generated through acquisitions. The Company maintains responsibility for valuing and determining the useful life of intangible assets. As a general rule, the Company amortizes restricted covenants over four six may third Canadian Sales Tax The Company is required to charge and collect sales tax for all Canadian clients and remits invoiced sales tax monthly to the Canadian taxing authorities whether collected or not. not Goodwill Goodwill is not 350 Intangibles - Goodwill and Other - Testing Indefinite-Lived Intangible Assets for Impairment” 350” December may three 2017 04, 350 December 30, 2017 2 As of December 30, 2017, $3.5 December 30, 2017. December 30, 2017 $2.0 may may not December 31, 2016. During all periods presented, the Company determined that the existing qualitative factors did not no not Long-Lived and Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not e recoverable. When it is probable that undiscounted future cash flows will not Software In accordance with “Accounting for Costs of Computer Software Developed or Obtained for Internal Use,” certain costs related to the development or purchase of internal-use software are capitalized and amortized over the estimated useful life of the software. During the fiscal years ended December 30, 2017 December 31, 2016, $594 $434, December 30, 2017 December 31, 2016 $1,841 $2,018, Income Taxes The Company makes judgments and interpretations based on enacted tax laws, published tax guidance, as well as estimates of future earnings. These judgments and interpretations affect the provision for income taxes, deferred tax assets and liabilities and the valuation allowance. The Company evaluated the deferred tax assets and determined on the basis of objective factors that the net assets will be realized through future years’ taxable income. In the event that actual results differ from these estimates and assessments, additional valuation allowances may not December 30, 2017 December 31, 2016. The Company accounts for income taxes in accordance with “Accounting for Income Taxes” which requires an asset and liability approach of accounting for income taxes. “Accounting for Income Taxes” requires assessment of the likelihood of realizing benefits associated with deferred tax assets for purposes of determining whether a valuation allowance is needed for such deferred tax assets. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The Tax Cuts and Jobs Act, which was enacted in December 2017, 35% 21%, 2018. $1.0 December 30, 2017. The Company also follows the provisions of “ Accounting for Uncertainty in Income Taxes” which prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. The Company’s policy is to record interest and penalty, if any, as interest expense. Revenue Recognition The Company derives its revenues from several sources. The Company ’s Engineering Services and Information Technology Services segments perform consulting and project solutions services. All of the Company’s segments perform staff augmentation services and derive revenue from permanent placement fees. The majority of the Company’s revenues are invoiced on a time and materials basis. Project Services The Company recognizes revenues in accordance with current revenue recognition standards under Accounting Standards Codification (“ASC”) 605, may 12 not not See description of revenue recognition policy for construction management and engineering services below in “transit receivables and transit payables.” Consulting and Staffing Services Revenues derived from consulting and staffing services are recorded on a gross basis as services are performed and associated costs have been incurred using employees of the Company. These services are typically billed on a time and material basis. In certain cases, the Company may ’s reported revenues are net of associated costs (effectively recognizing the net administrative fee only). Transit Receivables and Transit Payables From time to time, the Company ’s Engineering segment enters into agreements to provide, among other things, construction management and engineering services. In certain circumstances, the Company may may no During the fifty-two December 30, 2017, $38.9 $26.1 fifty-two December 31, 2016, $49.7 $27.3 14.0% fifty-two December 30, 2017 15.5% Under the terms of the agreements, the Company is typically not not The transit accounts receivable was $3.0 $4.7 $1.7 December 30, 2017. $4.3 $6.8 $2.5 December 31, 2016. Permanent Placement Services The Company earns permanent placement fees from providing permanent placement services. Fees for placements are recognized at the time the candidate commences employment. The Company guarantees its permanent placements on a prorated basis for 90 not 90 Permanent placement revenues were $2.6 $3.6 December 30, 2017 December 31, 2016, Concentration During the fiscal year ended December 30, 2017 , Sikorsky Aircraft represented 10.4% No 10% December 30, 2017 10.0% 14.9% 11.9%. December 30, 2017, 14.0% No 10% ten twenty 37.9%, 51.4% 65.2%, December 30, 2017. During the fiscal year ended December 31, 2016, no 10.0% December 31, 2016 10.0% 17.6%. December 31, 2016, $0.5 $8.4 17.0% No 10% ten twenty 31.8%, 47.7% 60.8%, December 31, 2016. Foreign Currency Translation The functional currency of the Company ’s Canadian and Serbian subsidiaries is the local currency. Assets and liabilities are translated at period-end exchange rates. Income and expense items are translated at weighted average rates of exchange prevailing during the year. Any translation adjustments are included in the accumulated other comprehensive income account in stockholders’ equity. Transactions executed in different currencies resulting in exchange adjustments are translated at spot rates and resulting foreign exchange transaction gains and losses are included in the results of operations. Comprehensive Income Comprehensive income consists of net income and foreign currency translation adjustments. Per Share Data Basic net income per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated using the weighted-average number of common shares plus dilutive potential common shares outstanding during the period. Potential dilutive common shares consist of stock options and other stock-based awards under the Company ’s stock compensation plans, when their impact is dilutive. Because of the Company’s capital structure, all reported earnings pertain to common shareholders and no Share - Based Compensation The Company recognizes share-based compensation over the vesting period of an award based on fair value at the grant date determined using the Black-Scholes option pricing model. Certain assumptions are used to determine the fair value of stock-based payment awards on the date of grant and require subjective judgment. Because employee stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not when share-based awards are granted. Circumstances may may 11 Restricted share units are recognized at their fair value. The amount of compensation cost is measured on the grant date fair value of the equity instrument issued. The compensation cost of the restricted share units is recognized over the vesting period of the restricted share units on a straight-line basis. Restricted share units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period assuming the grantee’s restricted stock unit fully vests. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying consolidated balance sheet. Dividends for restricted share units that ultimately do not Advertising Costs Advertising costs are expensed as incurred. Total advertising expense was $ 700 $643 December 30, 2017 December 31, 2016, |
Note 2 - Fiscal Year
Note 2 - Fiscal Year | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 2. FISCAL YEAR The Company follows a 52/53 December 31. Both of the fiscal years ended December 30, 2017 ( 2017 December 31, 2016 ( 2016 52 |
Note 3 - Use of Estimates and U
Note 3 - Use of Estimates and Uncertainties | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 3. USE OF ESTIMATES AND UNCERTAINTIES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The Company uses estimates to calculate an allowance for doubtful accounts on its accounts receivables, adequacy of reserves, goodwill impairment, if any, equity compensation, the tax rate applied and the valuation of certain assets and liability accounts. These estimates can be significant to the operating results and financial position of the Company. The Company has risk participation arrangements with respect to workers compensation and health care insurance. The amounts included in the Company ’s costs related to this risk participation are estimated and can vary based on changes in assumptions, the Company’s claims experience or the providers included in the associated insurance programs. The Company can be affected by a variety of factors including uncertainty relating to the performance of the general economy, competition, demand for the Company ’s services, adverse litigation and claims and the hiring, training and retention of key employees. Fair Value of Financial Instruments The Company ’s carrying value of financial instruments, consisting primarily of accounts receivable, transit accounts receivable, accounts payable and accrued expenses, and transit accounts payable and borrowings under line of credit approximates fair value due to their liquidity or their short-term nature. The Company does not |
Note 4 - Accounts Receivable, T
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNTS RECEIVABLE, TRANSIT ACCOUNTS RECEIVABLE AND TRANSIT ACCOUNTS PAYABLE The Company ’s accounts receivable are comprised as follows: December 30, 2017 December 31, 2016 Billed $ 31,448 $ 34,463 Accrued and unbilled 10,573 6,894 Work-in-progress 5,026 5,215 Allowance for sales discounts and doubtful accounts (967 ) (1,402 ) Accounts receivable, net $ 46,080 $ 45,170 Unbilled receivables primarily represent revenues earned whereby those services are ready to be billed as of the balance sheet ending date. Work-in-pro gress primarily represents revenues earned under contracts which the Company contractually invoices at future dates. The Company has a dispute with a customer that is a major utility in the United States. Essentially, the customer has not $6.9 $9.3 not no 2018. no not |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. PROPERTY AND EQUIPMENT Property and equipment are stated at cost and are depreciated on the straight-line method at rates calculated to provide for retirement of assets at the end of their estimated useful lives. The annual rates are 20% Property and equipment are comprised of the following: December 30, 2017 December 31, 2016 Equipment and furniture $ 938 $ 1,045 Computers and systems 6,172 5,521 Leasehold improvements 899 804 8,009 7,370 Less: accumulated depreciation and amortization 4,563 3,318 Property and equipment, net $ 3,446 $ 4,052 The Company periodically writes off fully depreciated and amortized assets. In the fiscal years ended December 30, 2017 December 31, 2016, $458 $2,705, December 30, 2017 December 31, 2016, $1,691 $1,489, |
Note 6 - Acquisitions
Note 6 - Acquisitions | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 6. ACQUISITIONS The purchase method of accounting in accordance with ASC 805, Future Contingent Payments As of December 30, 2017, six may 1 July 1, 2012 2 August 1, 2014 3 July 5, 2015, 4 December 31, 2016, 5 April 16, 2017 6 October 1, 2017, d.o.o. Beograd (Voždovac) (“PSR ”). The Company estimates future contingent payments at December 30, 2017 Fiscal Year Total December 29, 2018 $ 741 December 28, 2019 625 January 2, 2021 725 Estimated future contingent consideration payments $ 2,091 Estimates of future contingent payments are subject to significant judgment and actual payments may Potential future contingent payments to be made to all active acquisitions are capped at cumulative maximum of $4.1. December 30, 2017. not 820 10 35 3 The Company paid $ 1.7 $1.0 fifty-two December 30, 2017 December 31, 2016, The changes in the liability for contingent consideration from acquisitions for the fi fty- two December 30, 2017 December 31, 2016 Balance as of January 2, 2016 $ 1,800 Contingent payments made (993 ) Estimated contingent payments, acquisitions 139 Increase to contingent payment estimates 285 Balance as of December 31, 2016 $ 1,231 Contingent payments made (1,694 ) Estimated contingent payments, acquisitions 1,773 Increase to contingent payment estimates 781 Balance as of December 30, 2017 $ 2,091 AHP Effective December 31, 2016, ’s service offerings in the Chicago area. The purchase price for AHP was $695, 1 $275 January 2017; 2 $280 October 2018; 3 $140 2018. RAF Effective April 16, 2017, 1991 $133, 1 $123; 2 $10 2017. PSR Effective October 1, 2017 2006 3D 30 three 3,248 $1,000, $1,763 $485 $237. $58 |
Note 7 - Goodwill
Note 7 - Goodwill | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 7. GOODWILL Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired in business combinations. The Company is required to assess the carrying value of its reporting units that contain goodwill at least on an annual basis. The Company has the option to first two not December As more fully described in Footnote 1 – Summary of Significant Accounting Policies, the Company determined that its Information Technology segment incurred an impairment of goodwill of $3.5 2017. The changes in the carrying amount of goodwill for the fifty-two s ended December 30, 2017 December 31, 2016 Engineering Specialty Health Care Information Technology Total Balance as of January 2, 2016 $ 4,411 $ 1,703 $ 5,516 $ 11,630 Goodwill recorded, AHP acquisition - 695 - 695 Balance as of December 31, 2016 $ 4,411 $ 2,398 $ 5,516 $ 12,325 Goodwill recorded, RAF acquisition 133 - - 133 Goodwill recorded, PSR acquisition 2,705 - - 2,705 Goodwill impairment - - (3,478 ) (3,478 ) Balance as of December 30, 2017 $ 7,249 $ 2,398 $ 2,038 $ 11,685 |
Note 8 - Intangible Assets
Note 8 - Intangible Assets | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 8. INTANGIBLE ASSETS The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not ’s carrying amount, the asset is written down to its fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or fair value less cost to sell. The Company’s intangible assets consist of customer relationships and non-compete agreements. During all periods presented, the Company determined that no All of the Company ’s intangible assets are associated with its Engineering segment. Amortization expense for the fifty-two December 30, 2017 December 31, 2016 $66 $80, Schedule of Intangible Assets by class at December 30, 2017 December 31, 2016: December 30, 2017 December 31, 2016 Restricted covenants $ 17 $ 27 Customer relationships 88 144 Total intangible assets $ 105 $ 171 |
Note 9 - Line of Credit
Note 9 - Line of Credit | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. LINE OF CREDIT The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania which, as of December 30, 2017, $35 $5 December 11, 2019. December 8, 2017 $12.4 $1.3 2017, $1.0 179D four $4.6 one two 30 not December 30, 2017 December 31, 2016 2.7% 2.3%, All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company’s ability to borrow in order to pay dividends. As of December 30, 2017, Borrowings under the line of credit as of December 30, 2017 December 31, 2016 27.3 $14.3 December 30, 2017 December 31, 2016, $0.8 December 30, 2017, $6.9 February 2018 : On February 14, 2018, Company entered into a Tenth Amendment (the “Amendment”) to that certain Amended and Restated Loan and Security Agreement, dated as of February 19, 2009, $35.0 $40.0 |
Note 10 - Per Share Data
Note 10 - Per Share Data | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. The Company uses the treasury stock method to calculate the weighted-average shares used for diluted earnings per share. The number of common shares used to calculate basic and diluted earnings per share for the fiscal years ended December 30, 2017 December 31, 2016 Fiscal Years Ended December 30, 2017 December 31, 2016 Basic weighted average shares outstanding 11,995,341 12,302,558 Dilutive effect of outstanding restricted share units stock options 121,860 120,790 Weighted average dilutive shares outstanding 12,117,201 12,423,348 For the year ended December 30, 2017 no anti-dilutive shares not December 31, 2016 40,000 anti-dilutive shares not These shares were not Unissued shares of common stock were reserved for the following purposes: December 3 0, 201 7 December 31 , 2016 Exercise of options outstanding 0 42,000 Time-based restricted share units outstanding 87,034 197,734 Performance-based restricted share units outstanding 400,000 200,000 Future grants of options or shares 332,232 619,266 Shares reserved for employee stock purchase plan 177,280 268,211 Total 996,546 1,327,211 |
Note 11 - Share Based Compensat
Note 11 - Share Based Compensation | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. SHARE BASED COMPENSATION At December 30, 2017, the Company had two one three 10 may Share-based compensation expense of $ 770 $901 December 30, 2017 December 31, 2016, Share based compensation for the fiscal years ended December 30, 2017 and December 31, 2016 did not December 30, 2017 December 31, 2016 As of December 30, 2017, $0.4 2017. not may 2016, three 200,000 2017. December 30, 2017, no . 2014 2014 The 2014 ’s stockholders in December 2014, 625,000 In fiscal 2016, 2014 500,000 1,125,000 December 1, 2026. As of December 30, 2017, 2014 87,034 400,000 332,232 Employee Stock Purchase Plan The Company implemented the 2001 January 1, 2001. 85% 10% , subject to maximum purchases in any one 3,000 In fiscal 2015, 300,000 1,100,000 December 31, 2025. During the fiscal years ended December 30, 2017 December 31, 2016, 90,931 81,225 $394 $368, December 30, 2017, 177,280 December 30, 2017 December 31, 2016 $114 $108, Stock Option Awards Transactions related to all stock options under all plans are as follows: All Stock Options Outstanding Shares Weighted Average Exercise Price Options outstanding as of January 2, 2016 44,500 $ 8.12 Options granted - Options exercised, net (2,500 ) $ 5.62 Options forfeited/cancelled - Options outstanding as of December 31, 2016 42,000 $ 8.27 Options exercisable as of December 31, 2016 27,000 $ 9.47 Intrinsic value of outstanding stock options as of December 31, 2016 $ 6 Intrinsic value of stock options exercised in fiscal year ended December 31, 2016 $ 3 Weighted average grant date fair value of stock options issued during fiscal year ended December 31, 2016 N/A Options outstanding as of December 31, 2016 42,000 $ 8.27 Options granted - Options exercised, net (11,917 ) $ 6.00 Options forfeited in cashless exercises (5,083 ) $ 6.10 Options forfeited/cancelled (25,000 ) $ 9.81 Options outstanding as of December 30, 2017 - Options exercisable as of December 30, 2017 - Intrinsic value of outstanding stock options as of December 30, 2017 - Intrinsic value of stock options exercised in fiscal year ended December 30, 2017 17 Weighted average grant date fair value of stock options issued during fiscal year ended December 30, 2017 - Stock Option Awards (Continued) A summary of the status of our nonvested stock options outstanding as of December 30, 2017, Nonvested Stock Options Shares Weigh ted-Average Grant-Date Fair Value Nonvested at December 31, 2016 15,000 $ 2.33 Vested 15,000 $ 2.33 Forfeited - - Issued nonvested - - Nonvested at December 30, 2017 - - Time-Based Restricted Stock Units From time-to-time the Company issues time-based restricted stock units. These time-based restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period assuming the grantee’s restricted stock unit fully vests. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying consolidated balance sheet. Dividends for time-based restricted stock units that ultimately do not To date, the Company has only issued time-based restricted stock units under the 2007 2014 2007 2014 fifty-two December 30, 2017: Number of Time-Based Restricted Stock Units Weighted Average Grant Date Fair Value per Share Outstanding non-vested at December 31, 2016 197,734 $ 7.33 Granted 87,034 $ 5.88 Vested (197,734 ) $ 7.33 Forfeited or expired - - Outstanding non-vested at December 30, 2017 87,034 $ 5.88 Based on the closing price of the Company ’s common stock of $6.25 December 29, 2017 ( December 30, 2017), December 30, 2017 $0.5 December 30, 2017, $0.4 Performance Based Restricted Stock Units From time-to-time the Company issues performance-based restricted stock units to its executives. Performance-based restricted stock units are typically vested based on certain multi-year performance metrics as determined by the Board of Directors Compensation Committee. These performance-based restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period on any stock units that actually vest, if any. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying consolidated balance sheet. Dividends for performance-based restricted stock units that ultimately do not To date, the Company has only issued performance-based restricted stock units under the 2014 2017: Number of Performance- Based Restricted Stock Units Weighted Average Grant Date Fair Value per Share Outstanding non-vested at December 31, 2016 200,000 $ 5.36 Granted 200,000 $ 4.85 Vested - - Forfeited or expired - - Outstanding non-vested at December 30, 2017 400,000 $ 5.11 As of December 30, 2017, 400,000 no no Number of Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 2, 2016 209 $ 7.10 Granted – time-based vesting 63 $ 5.98 Granted – performance-based vesting 200 $ 5.36 Vested (74 ) $ 5.56 Forfeited or expired - - Outstanding non-vested at December 31, 2016 398 $ 6.34 Granted – time-based vesting 87 $ 5.88 Granted – performance-based vesting 200 $ 4.85 Vested (198 ) $ 7.33 Forfeited or expired - - Outstanding non-vested at December 30, 2017 487 $ 5.24 Based on the closing price of the Company ’s common stock of $6.25 December 29, 2017, December 30, 2017 $0.5 not may |
Note 12 - Treasury Stock Transa
Note 12 - Treasury Stock Transactions | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 12. TREASURY STOCK TRANSACTIONS On October 28, 2013, $5.0 12 September 30, 2014, October 31, 2015. On September 11, 2015, December 31, 2016. On August 9, 2016, $5.0 December 31, 2017. For the fiscal year ended December 30, 2017, repurchased 59,312 $5.54 December 31, 2016, 701,114 $6.07 $4.3 December 30, 2017, $2.5 |
Note 13 - New Accounting Standa
Note 13 - New Accounting Standards | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 13. NEW ACCOUNTING STANDARDS In May 2014, No. 2014 09, March 2016, 2016 08, 606 April 2016, 2016 10, 606 May 2016, 2016 12, 606 December 2016, 2016 20, “Technical Corrections and Improvements to Topic 606, not 90% five not The guidance is effective for fiscal years beginning on or after December 15, 2017 2018 first In February 2016 No. 2016 02 , Leases (Topic 842 first 2019, In March 2016, 2016 09, Compensation – Stock Compensation (Topic 718 2016 09 May 2017, 2017 09, Compensation – Stock Compensation (Topic 718 2017 09 718. 2016 09 2017 first not 2017 09 December 15, 2017. 2017 10 first 2018. not In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 December 15, 2018, may In August 2016, No. 2016 15, Statement of Cash Flows ( Topic 230 Classification of Certain Cash Receipts and Cash Payments 2016 15 December 15, 2017. The Company will adopt ASU 2016 15 first 2018. not In January 2017, No. 2017 01, Business Combinations” 805 December 15, 2017 2017 01 first 2018. not In January 2017, No. 2017 04, – Goodwill and Other” (Topic 350 1 2 December 15, 2019 December 30, 2017. |
Note 14 - Segment Information
Note 14 - Segment Information | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 14. SEGMENT INFORMATION The Company follows “Disclosures about Segments of an Enterprise and Related Information,” which establishes standards for companies to report information about operating segments, geographic areas and major customers. The accounting policies of each segment are the same as those described in the summary of significant accounting policies ( see Note 1 10 December 30, 2017.) Segment operating income includes selling, general and administrative expenses directly attributable to that segment as well as charges for allocating corporate costs to each of the operating segments. The following tables reflect the results of the segments consistent with the Company ’s management system: Fiscal Year Ended December 30, 2017 Engineering Specialty Health Care Information Technology Corporate Total Revenue $ 82,753 $ 71,316 $ 32,668 $ - $ 186,737 Cost of services 60,352 53,801 24,197 - 138,350 Gross profit 22,401 17,515 8,471 - 48,387 Selling, general and administrative 16,114 15,811 8,460 - 40,385 L egal, office closures and other - - - 1,447 1,447 Tax credit professional fees - - - 259 259 Change in contingent consideration 781 - - - 781 Goodwill impairment - - 3,478 - 3,478 Depreciation and amortization 1,186 386 185 - 1,757 Operating income (loss) $ 4,320 $ 1,318 $ (3,652 ) $ (1,706 ) $ 280 Total assets as of December 30, 2017 $ 35,121 $ 22,718 $ 6,288 $ 9,152 $ 73,279 Capital expenditures $ 472 $ 494 - $ 74 $ 1,040 Fiscal Year Ended December 31, 2016 Engineering Specialty Health Care Information Technology Corporate Total Revenue $ 73,853 $ 59,783 $ 42,812 $ - $ 176,448 Cost of services 54,182 44,091 31,145 - 129,418 Gross profit 19,671 15,692 11,667 - 47,030 Selling, general and administrative 15,168 13,947 10,948 - 40,063 L egal, office closures and other - - - 1,283 1,283 Change in contingent consideration 285 - - - 285 Depreciation and amortization 1,120 257 192 - 1,569 Operating income (loss) $ 3,098 $ 1,488 $ 527 $ (1,283 ) $ 3,830 Total assets $ 35,535 $ 18,565 $ 11,705 $ 4,026 $ 69,831 Capital expenditures $ 620 $ 149 $ 52 $ 25 $ 846 The Company derives a majority of its revenue from offices in the United States. Revenues reported for each operating segment are all from external customers. The Company is domiciled in the United States and its segments operate in the United States, Canada and Puerto Rico. Revenues by geographic area for the fiscal years ended December 30, 2017 December 31, 2016 Fiscal Year Ended December 30 , December 31 , 2017 2016 Revenues United States $ 152,232 $ 146,950 Canada 30,084 24,423 Puerto Rico 4,043 5,075 Serbia 378 - $ 186,737 $ 176,448 Total assets by geographic area as of the reported periods are as follows: Fiscal Year Ended December 30 , December 31 , 2017 2016 Total Assets United States $ 52,595 $ 53,842 Canada 15,419 13,953 Puerto Rico 1,891 2,036 Serbia 3,374 - $ 73,279 $ 69,831 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. INCOME TAXES On December 22, 2017, No. 118, 118” not may ’s estimates due to, among other things, changes in interpretations of the Tax Act, further legislation related to the Tax Act, changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates to estimates the Company has utilized to calculate the impacts of the Tax Act. The SEC has issued rules that would allow for a measurement period of up to one December 29, 2018. 118 fifty-two December 30, 2017. $1.2 $1.0 $0.2 Generally, the Company ’s relative income or loss generated in each of its jurisdictions can materially impact the overall effective income tax rate of the Company, particularly the ratio of Canadian and Serbian pretax income, versus U.S. pretax income. Current Canadian tax rates are approximately 26.5% 15.0% 20.0%. 2017 920.4% 46.8% not 2017 920.4% 2017, 2017 December 3 0, 201 7 December 31, 2016 Tax (benefit) expense on taxable (loss) at statutory rate of 34.0% $ (83 ) $ 1,123 State and Puerto Rico income taxes, net of Federal income tax benefit (248 ) 263 U SA 179D and Canadian R&D tax credits (603 ) - Permanent differences 458 186 Worthless stock deduction (2,861 ) - Foreign income tax rate s (92 ) 17 Impact on net deferred tax assets from 2018 Federal tax rate change 1,015 - Transition repatriation taxes 198 - Other (39 ) (45 ) Total income tax (benefit) expense $ (2,255 ) $ 1,544 The Company ’s statutory federal tax rate for the fifty-two December 30, 2017 34.0%. fifty-two $2.3 1 $248; 2 179D $603; 3 $458; 4 1996 2017 $2.9 5 $369; 5 2018 21%, $1.0 $0.2 2016 46.8% 1 2 The components of income tax expense (benefit) are as follows: Fiscal Years Ended December 30 , 201 7 December 31 , 2016 Current Federal $ (471 ) $ 688 State and local 118 402 Foreign 237 (3 ) (116 ) 1,087 Deferred Federal (1,841 ) 372 State (495 ) 108 Foreign 197 (23 ) (2,139 ) 457 Total $ (2,255 ) $ 1,544 The components of earnings before income taxes by United States and foreign jurisdictions were as follows: Fiscal Years Ended December 30 , 201 7 December 31 , 2016 United States $ (1,660 ) $ 3,430 Foreign Jurisdictions 1,415 (128 ) $ (245 ) $ 3,302 A reconciliation of the unrecognized tax benefits for the year December 30, 2017: Unrecognized Tax Benefits Balance as of December 31, 2016 $ 628 Charges for current year tax positions - Reserves for current year tax position - Balance as of December 30, 2017 $ 628 The total amount of unrecognized tax benefits relating to the Company ’s tax positions is subject to change based on future events including, but not not 12 The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes and records such amounts to interest expense. The Company recorded no December 30, 2017 December 31, 2016. At December 30, 2017 December 31, 2016, December 3 0, 201 7 December 31, 2016 Deferred tax assets: Allowance for doubtful accounts $ 235 $ 451 Federal and state net operating loss carryforward 2,501 - Reserves and accruals 435 394 Other 53 323 Total deferred tax assets 3,224 1,168 Deferred tax liabilities: Acquisition amortization, net (206 ) (100 ) Prepaid expense deferral (503 ) (750 ) Bonus depreciation to be reversed (326 ) (466 ) Canada deferred tax liability, net (431 ) (234 ) Total deferred tax liabilities (1,466 ) (1,550 ) Total deferred tax (liability) asset, net $ 1,758 $ (382 ) The Company conducts its operations in multiple tax jurisdictions in the United States, Canada, Puerto Rico and Serbia. The Company and its subsidiaries file a consolidated U.S. Federal income tax return and file in various states. The Company’s federal income tax returns have been examined through 2010. 2011, 2012, 2013 2015. 2009 2012. no 2012. no 2013. no 2007. |
Note 16 - Contingencies
Note 16 - Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 16. CONTINGENCIES From time to time, the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. As such, the Company is required to assess the likelihood of any adverse outcomes to these matters as well as potential ranges of losses and possible recoveries. The Company may not may $10.0 $9.3 December 30, 2017 . As of December 30, 2017, $0.1 The Company has a dispute with a customer that is a major utility in the United States. Essentially, the customer has not $6.9 , subject to an upward adjustment following disclosures by the customer in the arbitration. Additionally, as part of the arbitration process, the customer has asserted counter claims of $9.3 not no 2018. no not The Company is also subject to other pending legal proceedings and claims that arise from time to time in the ordinary course of its business, which may not |
Note 17 - Retirement Plans
Note 17 - Retirement Plans | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 1 7 . RETIREMENT PLANS Profit Sharing Plan s The Company maintains a 401 , Puerto Rico and Serbia (the “Retirement Plans”). The 401 401 401 may December 30, 2017 December 31, 2016 $477 $588, |
Note 18 - Commitments
Note 18 - Commitments | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 8 . COMMITMENTS Executive Severance Agreements with Rocco Campanelli and Kevin Miller The Company is a party to Executive Severance Agreements (the “Executive Severance Agreements”) as of February 28, 2014 , with Rocco Campanelli, the Company’s President and Chief Executive Officer and Kevin Miller, the Company’s Chief Financial Officer, which set forth the terms and conditions of certain payments to be made by the Company to each executive in the event, while employed by the Company, such executive experiences (a) a termination of employment unrelated to a “Change in Control” (as defined therein) or (b) there occurs a Change in Control and either (i) the executive’s employment is terminated for a reason related to the Change in Control or (ii) the executive remains continuously employed with the Company for a specified period of time following the Change in Control (i.e., twelve three not Leases The Company leases office facilities and various equipment under non-cancelable leases expiring at various dates through November 2022. Fiscal Years Amount 2018 $ 3,036 2019 1,695 2020 1,056 2021 516 2022 304 Total $ 6,607 Rent expense for the fiscal years ended December 30, 2017 December 31, 2016 $3,696 $3,186, The Company , from time to time, subleases space to other tenants at various office locations under lease agreements. During the fiscal year ended December 30, 2017, $12 December 31, 2016, no |
Note 19 - Related Party Transac
Note 19 - Related Party Transactions | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 19 . RELATED PARTY TRANSACTIONS Richard Machon, a director of the Company, from time to time provides consulting services to the Company or for clients of the Company through Mr. Machon ’s company, Machon & Associates. The Company did not 2017 $65 2016. |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 20. SUBSEQUENT EVENT S On February 14, 2018, Company entered into a Tenth Amendment (the “Amendment”) to that certain Amended and Restated Loan and Security Agreement, dated as of February 19, 2009, $35.0 $40.0 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 30, 2017 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II RCM TECHNOLOGIES, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Fiscal Years Ended December 30, 2017 and December 31, 2016 (Dollars in thousands, except share and per share amounts, unless otherwise indicated) Column A Column B Column C Column D Column E Description Balance at Beginning of Period Charged to Costs and Expenses Deduction Balance at End of Period Fiscal Year Ended December 30, 2017 Allowance for doubtful accounts on trade receivables $ 1,402 662 (1,097 ) $ 967 Provision for contingencies for legal matters $ 455 192 (522 ) $ 125 Fiscal Year Ended December 31, 2016 Allowance for doubtful accounts on trade receivables $ 1,432 650 (680 ) $ 1,402 Provision for contingencies for legal matters $ 214 455 (214 ) $ 455 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Description of Business and Basis of Presentation RCM Technologies , Inc. (the “Company” or “RCM”) is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering and information technology services. Additionally, the Company provides specialty health care staffing services through its Specialty Health Care Services group. RCM’s offices are primarily located in major metropolitan centers throughout North America. The consolidated financial statements are comprised of the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers its holdings of highly liquid money-market instruments and certificates of deposits to be cash equivalents if the securities mature within 90 These investments are carried at cost, which approximates fair value. The Company’s cash balances are maintained in accounts held by major banks and financial institutions. The majority of these balances may $0.1 December 30, 2017 December 31, 2016, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company ’s carrying value of financial instruments, consisting primarily of accounts receivable, transit accounts receivable, accounts payable and accrued expenses, and transit accounts payable and borrowings under line of credit approximates fair value due to their liquidity or their short-term nature. The Company does not |
Receivables, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts The Company ’s accounts receivable are primarily due from trade customers. Credit is extended based on evaluation of customers’ financial condition and, generally, collateral is not |
Accrued and Unbilled Accounts Receivable and Work in Process [Policy Text Block] | Accrued and Unbilled Accounts Receivable and Work-in-Process Unbilled receivables primarily represent revenues earned whereby those services are ready to be billed as of the balance sheet ending date. Work-in-process primarily represents revenues earned under contracts which the Company is contractually precluded from invoicing until future dates as project milestones are realized. See Note 4 |
Transit Receivable and Transit Payable [Policy Text Block] | Transit Receivables and Transit Payables From time to time, the Company ’s Engineering segment enters into agreements to provide, among other things, construction management and engineering services. In certain circumstances, the Company may may no Under the terms of the agreements, the Company is typically not not The transit accounts receivable was $ 3.0 $4.7 $1.7 December 30, 2017. $4.3 $6.8 $2.5 December 31, 2016. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost net of accumulated depreciation and amortization and are depreciated or amortized on the straight-line method at rates calculated to provide for retirement of assets at the end of their estimated useful lives. Most hardware and software as well as furniture and office equipment is depreciated or amortized over five |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets The Company ’s intangible assets have been generated through acquisitions. The Company maintains responsibility for valuing and determining the useful life of intangible assets. As a general rule, the Company amortizes restricted covenants over four six may third |
Canadian Sales Tax [Policy Text Block] | Canadian Sales Tax The Company is required to charge and collect sales tax for all Canadian clients and remits invoiced sales tax monthly to the Canadian taxing authorities whether collected or not. not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is not 350 Intangibles - Goodwill and Other - Testing Indefinite-Lived Intangible Assets for Impairment” 350” December may three 2017 04, 350 December 30, 2017 2 As of December 30, 2017, $3.5 December 30, 2017. December 30, 2017 $2.0 may may not December 31, 2016. During all periods presented, the Company determined that the existing qualitative factors did not no not |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Long-Lived and Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not e recoverable. When it is probable that undiscounted future cash flows will not |
Research, Development, and Computer Software, Policy [Policy Text Block] | Software In accordance with “Accounting for Costs of Computer Software Developed or Obtained for Internal Use,” certain costs related to the development or purchase of internal-use software are capitalized and amortized over the estimated useful life of the software. During the fiscal years ended December 30, 2017 December 31, 2016, $594 $434, December 30, 2017 December 31, 2016 $1,841 $2,018, |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company makes judgments and interpretations based on enacted tax laws, published tax guidance, as well as estimates of future earnings. These judgments and interpretations affect the provision for income taxes, deferred tax assets and liabilities and the valuation allowance. The Company evaluated the deferred tax assets and determined on the basis of objective factors that the net assets will be realized through future years’ taxable income. In the event that actual results differ from these estimates and assessments, additional valuation allowances may not December 30, 2017 December 31, 2016. The Company accounts for income taxes in accordance with “Accounting for Income Taxes” which requires an asset and liability approach of accounting for income taxes. “Accounting for Income Taxes” requires assessment of the likelihood of realizing benefits associated with deferred tax assets for purposes of determining whether a valuation allowance is needed for such deferred tax assets. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The Tax Cuts and Jobs Act, which was enacted in December 2017, 35% 21%, 2018. $1.0 December 30, 2017. The Company also follows the provisions of “ Accounting for Uncertainty in Income Taxes” which prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. The Company’s policy is to record interest and penalty, if any, as interest expense. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company derives its revenues from several sources. The Company ’s Engineering Services and Information Technology Services segments perform consulting and project solutions services. All of the Company’s segments perform staff augmentation services and derive revenue from permanent placement fees. The majority of the Company’s revenues are invoiced on a time and materials basis. Project Services The Company recognizes revenues in accordance with current revenue recognition standards under Accounting Standards Codification (“ASC”) 605, may 12 not not See description of revenue recognition policy for construction management and engineering services below in “transit receivables and transit payables.” Consulting and Staffing Services Revenues derived from consulting and staffing services are recorded on a gross basis as services are performed and associated costs have been incurred using employees of the Company. These services are typically billed on a time and material basis. In certain cases, the Company may ’s reported revenues are net of associated costs (effectively recognizing the net administrative fee only). Transit Receivables and Transit Payables From time to time, the Company ’s Engineering segment enters into agreements to provide, among other things, construction management and engineering services. In certain circumstances, the Company may may no During the fifty-two December 30, 2017, $38.9 $26.1 fifty-two December 31, 2016, $49.7 $27.3 14.0% fifty-two December 30, 2017 15.5% Under the terms of the agreements, the Company is typically not not The transit accounts receivable was $3.0 $4.7 $1.7 December 30, 2017. $4.3 $6.8 $2.5 December 31, 2016. Permanent Placement Services The Company earns permanent placement fees from providing permanent placement services. Fees for placements are recognized at the time the candidate commences employment. The Company guarantees its permanent placements on a prorated basis for 90 not 90 Permanent placement revenues were $2.6 $3.6 December 30, 2017 December 31, 2016, |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration During the fiscal year ended December 30, 2017 , Sikorsky Aircraft represented 10.4% No 10% December 30, 2017 10.0% 14.9% 11.9%. December 30, 2017, 14.0% No 10% ten twenty 37.9%, 51.4% 65.2%, December 30, 2017. During the fiscal year ended December 31, 2016, no 10.0% December 31, 2016 10.0% 17.6%. December 31, 2016, $0.5 $8.4 17.0% No 10% ten twenty 31.8%, 47.7% 60.8%, December 31, 2016. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of the Company ’s Canadian and Serbian subsidiaries is the local currency. Assets and liabilities are translated at period-end exchange rates. Income and expense items are translated at weighted average rates of exchange prevailing during the year. Any translation adjustments are included in the accumulated other comprehensive income account in stockholders’ equity. Transactions executed in different currencies resulting in exchange adjustments are translated at spot rates and resulting foreign exchange transaction gains and losses are included in the results of operations. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income consists of net income and foreign currency translation adjustments. |
Earnings Per Share, Policy [Policy Text Block] | Per Share Data Basic net income per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated using the weighted-average number of common shares plus dilutive potential common shares outstanding during the period. Potential dilutive common shares consist of stock options and other stock-based awards under the Company ’s stock compensation plans, when their impact is dilutive. Because of the Company’s capital structure, all reported earnings pertain to common shareholders and no |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share - Based Compensation The Company recognizes share-based compensation over the vesting period of an award based on fair value at the grant date determined using the Black-Scholes option pricing model. Certain assumptions are used to determine the fair value of stock-based payment awards on the date of grant and require subjective judgment. Because employee stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, the existing models may not when share-based awards are granted. Circumstances may may 11 Restricted share units are recognized at their fair value. The amount of compensation cost is measured on the grant date fair value of the equity instrument issued. The compensation cost of the restricted share units is recognized over the vesting period of the restricted share units on a straight-line basis. Restricted share units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period assuming the grantee’s restricted stock unit fully vests. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying consolidated balance sheet. Dividends for restricted share units that ultimately do not |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred. Total advertising expense was $ 700 $643 December 30, 2017 December 31, 2016, |
Fiscal Period, Policy [Policy Text Block] | The Company follows a 52/53 December 31. Both of the fiscal years ended December 30, 2017 ( 2017 December 31, 2016 ( 2016 52 |
Note 4 - Accounts Receivable,30
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 30, 2017 December 31, 2016 Billed $ 31,448 $ 34,463 Accrued and unbilled 10,573 6,894 Work-in-progress 5,026 5,215 Allowance for sales discounts and doubtful accounts (967 ) (1,402 ) Accounts receivable, net $ 46,080 $ 45,170 |
Note 5 - Property and Equipme31
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 30, 2017 December 31, 2016 Equipment and furniture $ 938 $ 1,045 Computers and systems 6,172 5,521 Leasehold improvements 899 804 8,009 7,370 Less: accumulated depreciation and amortization 4,563 3,318 Property and equipment, net $ 3,446 $ 4,052 |
Note 6 - Acquisitions (Tables)
Note 6 - Acquisitions (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Fiscal Year Total December 29, 2018 $ 741 December 28, 2019 625 January 2, 2021 725 Estimated future contingent consideration payments $ 2,091 Balance as of January 2, 2016 $ 1,800 Contingent payments made (993 ) Estimated contingent payments, acquisitions 139 Increase to contingent payment estimates 285 Balance as of December 31, 2016 $ 1,231 Contingent payments made (1,694 ) Estimated contingent payments, acquisitions 1,773 Increase to contingent payment estimates 781 Balance as of December 30, 2017 $ 2,091 |
Note 7 - Goodwill (Tables)
Note 7 - Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Engineering Specialty Health Care Information Technology Total Balance as of January 2, 2016 $ 4,411 $ 1,703 $ 5,516 $ 11,630 Goodwill recorded, AHP acquisition - 695 - 695 Balance as of December 31, 2016 $ 4,411 $ 2,398 $ 5,516 $ 12,325 Goodwill recorded, RAF acquisition 133 - - 133 Goodwill recorded, PSR acquisition 2,705 - - 2,705 Goodwill impairment - - (3,478 ) (3,478 ) Balance as of December 30, 2017 $ 7,249 $ 2,398 $ 2,038 $ 11,685 |
Note 8 - Intangible Assets (Tab
Note 8 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | December 30, 2017 December 31, 2016 Restricted covenants $ 17 $ 27 Customer relationships 88 144 Total intangible assets $ 105 $ 171 |
Note 10 - Per Share Data (Table
Note 10 - Per Share Data (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Fiscal Years Ended December 30, 2017 December 31, 2016 Basic weighted average shares outstanding 11,995,341 12,302,558 Dilutive effect of outstanding restricted share units stock options 121,860 120,790 Weighted average dilutive shares outstanding 12,117,201 12,423,348 |
Unissued Shares of Common Stock [Table Text Block] | December 3 0, 201 7 December 31 , 2016 Exercise of options outstanding 0 42,000 Time-based restricted share units outstanding 87,034 197,734 Performance-based restricted share units outstanding 400,000 200,000 Future grants of options or shares 332,232 619,266 Shares reserved for employee stock purchase plan 177,280 268,211 Total 996,546 1,327,211 |
Note 11 - Share Based Compens36
Note 11 - Share Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | All Stock Options Outstanding Shares Weighted Average Exercise Price Options outstanding as of January 2, 2016 44,500 $ 8.12 Options granted - Options exercised, net (2,500 ) $ 5.62 Options forfeited/cancelled - Options outstanding as of December 31, 2016 42,000 $ 8.27 Options exercisable as of December 31, 2016 27,000 $ 9.47 Intrinsic value of outstanding stock options as of December 31, 2016 $ 6 Intrinsic value of stock options exercised in fiscal year ended December 31, 2016 $ 3 Weighted average grant date fair value of stock options issued during fiscal year ended December 31, 2016 N/A Options outstanding as of December 31, 2016 42,000 $ 8.27 Options granted - Options exercised, net (11,917 ) $ 6.00 Options forfeited in cashless exercises (5,083 ) $ 6.10 Options forfeited/cancelled (25,000 ) $ 9.81 Options outstanding as of December 30, 2017 - Options exercisable as of December 30, 2017 - Intrinsic value of outstanding stock options as of December 30, 2017 - Intrinsic value of stock options exercised in fiscal year ended December 30, 2017 17 Weighted average grant date fair value of stock options issued during fiscal year ended December 30, 2017 - |
Schedule of Nonvested Share Activity [Table Text Block] | Nonvested Stock Options Shares Weigh ted-Average Grant-Date Fair Value Nonvested at December 31, 2016 15,000 $ 2.33 Vested 15,000 $ 2.33 Forfeited - - Issued nonvested - - Nonvested at December 30, 2017 - - |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of Time-Based Restricted Stock Units Weighted Average Grant Date Fair Value per Share Outstanding non-vested at December 31, 2016 197,734 $ 7.33 Granted 87,034 $ 5.88 Vested (197,734 ) $ 7.33 Forfeited or expired - - Outstanding non-vested at December 30, 2017 87,034 $ 5.88 Number of Performance- Based Restricted Stock Units Weighted Average Grant Date Fair Value per Share Outstanding non-vested at December 31, 2016 200,000 $ 5.36 Granted 200,000 $ 4.85 Vested - - Forfeited or expired - - Outstanding non-vested at December 30, 2017 400,000 $ 5.11 Number of Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 2, 2016 209 $ 7.10 Granted – time-based vesting 63 $ 5.98 Granted – performance-based vesting 200 $ 5.36 Vested (74 ) $ 5.56 Forfeited or expired - - Outstanding non-vested at December 31, 2016 398 $ 6.34 Granted – time-based vesting 87 $ 5.88 Granted – performance-based vesting 200 $ 4.85 Vested (198 ) $ 7.33 Forfeited or expired - - Outstanding non-vested at December 30, 2017 487 $ 5.24 |
Note 14 - Segment Information (
Note 14 - Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Fiscal Year Ended December 30, 2017 Engineering Specialty Health Care Information Technology Corporate Total Revenue $ 82,753 $ 71,316 $ 32,668 $ - $ 186,737 Cost of services 60,352 53,801 24,197 - 138,350 Gross profit 22,401 17,515 8,471 - 48,387 Selling, general and administrative 16,114 15,811 8,460 - 40,385 L egal, office closures and other - - - 1,447 1,447 Tax credit professional fees - - - 259 259 Change in contingent consideration 781 - - - 781 Goodwill impairment - - 3,478 - 3,478 Depreciation and amortization 1,186 386 185 - 1,757 Operating income (loss) $ 4,320 $ 1,318 $ (3,652 ) $ (1,706 ) $ 280 Total assets as of December 30, 2017 $ 35,121 $ 22,718 $ 6,288 $ 9,152 $ 73,279 Capital expenditures $ 472 $ 494 - $ 74 $ 1,040 Fiscal Year Ended December 31, 2016 Engineering Specialty Health Care Information Technology Corporate Total Revenue $ 73,853 $ 59,783 $ 42,812 $ - $ 176,448 Cost of services 54,182 44,091 31,145 - 129,418 Gross profit 19,671 15,692 11,667 - 47,030 Selling, general and administrative 15,168 13,947 10,948 - 40,063 L egal, office closures and other - - - 1,283 1,283 Change in contingent consideration 285 - - - 285 Depreciation and amortization 1,120 257 192 - 1,569 Operating income (loss) $ 3,098 $ 1,488 $ 527 $ (1,283 ) $ 3,830 Total assets $ 35,535 $ 18,565 $ 11,705 $ 4,026 $ 69,831 Capital expenditures $ 620 $ 149 $ 52 $ 25 $ 846 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Fiscal Year Ended December 30 , December 31 , 2017 2016 Revenues United States $ 152,232 $ 146,950 Canada 30,084 24,423 Puerto Rico 4,043 5,075 Serbia 378 - $ 186,737 $ 176,448 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Fiscal Year Ended December 30 , December 31 , 2017 2016 Total Assets United States $ 52,595 $ 53,842 Canada 15,419 13,953 Puerto Rico 1,891 2,036 Serbia 3,374 - $ 73,279 $ 69,831 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 3 0, 201 7 December 31, 2016 Tax (benefit) expense on taxable (loss) at statutory rate of 34.0% $ (83 ) $ 1,123 State and Puerto Rico income taxes, net of Federal income tax benefit (248 ) 263 U SA 179D and Canadian R&D tax credits (603 ) - Permanent differences 458 186 Worthless stock deduction (2,861 ) - Foreign income tax rate s (92 ) 17 Impact on net deferred tax assets from 2018 Federal tax rate change 1,015 - Transition repatriation taxes 198 - Other (39 ) (45 ) Total income tax (benefit) expense $ (2,255 ) $ 1,544 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Years Ended December 30 , 201 7 December 31 , 2016 Current Federal $ (471 ) $ 688 State and local 118 402 Foreign 237 (3 ) (116 ) 1,087 Deferred Federal (1,841 ) 372 State (495 ) 108 Foreign 197 (23 ) (2,139 ) 457 Total $ (2,255 ) $ 1,544 Fiscal Years Ended December 30 , 201 7 December 31 , 2016 United States $ (1,660 ) $ 3,430 Foreign Jurisdictions 1,415 (128 ) $ (245 ) $ 3,302 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Unrecognized Tax Benefits Balance as of December 31, 2016 $ 628 Charges for current year tax positions - Reserves for current year tax position - Balance as of December 30, 2017 $ 628 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 3 0, 201 7 December 31, 2016 Deferred tax assets: Allowance for doubtful accounts $ 235 $ 451 Federal and state net operating loss carryforward 2,501 - Reserves and accruals 435 394 Other 53 323 Total deferred tax assets 3,224 1,168 Deferred tax liabilities: Acquisition amortization, net (206 ) (100 ) Prepaid expense deferral (503 ) (750 ) Bonus depreciation to be reversed (326 ) (466 ) Canada deferred tax liability, net (431 ) (234 ) Total deferred tax liabilities (1,466 ) (1,550 ) Total deferred tax (liability) asset, net $ 1,758 $ (382 ) |
Note 18 - Commitments (Tables)
Note 18 - Commitments (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal Years Amount 2018 $ 3,036 2019 1,695 2020 1,056 2021 516 2022 304 Total $ 6,607 |
Schedule II - Valuation and Q40
Schedule II - Valuation and Qualifying Accounts and Reserves (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Column A Column B Column C Column D Column E Description Balance at Beginning of Period Charged to Costs and Expenses Deduction Balance at End of Period Fiscal Year Ended December 30, 2017 Allowance for doubtful accounts on trade receivables $ 1,402 662 (1,097 ) $ 967 Provision for contingencies for legal matters $ 455 192 (522 ) $ 125 Fiscal Year Ended December 31, 2016 Allowance for doubtful accounts on trade receivables $ 1,432 650 (680 ) $ 1,402 Provision for contingencies for legal matters $ 214 455 (214 ) $ 455 |
Note 1 - Summary of Significa41
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Cash and Cash Equivalents, at Carrying Value | $ 2,851 | $ 279 | $ 985 | |
Liabilities, Net | $ 1,700 | 2,500 | ||
Number of Reporting Units | 3 | |||
Goodwill, Impairment Loss | $ 3,478 | 0 | ||
Goodwill | 11,685 | 12,325 | 11,630 | |
Capitalized Computer Software, Additions | 594 | 434 | ||
Capitalized Computer Software, Net | 1,841 | 2,018 | ||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 1,000 | |||
Gross Billings | 38,900 | $ 49,700 | ||
Construction Revenue | 26,100 | 27,300 | ||
Sales Revenue, Services, Other | 2,600 | 3,600 | ||
Advertising Expense | 700 | 643 | ||
New York Power Authority [Member] | ||||
Accounts Receivable, Gross, Current | 8,400 | |||
Transit Accounts Payable [Member] | ||||
Accounts Payable, Current | $ 4,700 | $ 6,800 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Sikorsky Aircraft [Member] | ||||
Concentration Risk, Percentage | 10.40% | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | ||||
Concentration Risk, Percentage | 37.90% | 31.80% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Ten Largest Customers [Member] | ||||
Concentration Risk, Percentage | 51.40% | 47.70% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Twenty Largest Customers [Member] | ||||
Concentration Risk, Percentage | 65.20% | 60.80% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | New York City Board of Education [Member] | ||||
Concentration Risk, Percentage | 14.90% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | New York Power Authority [Member] | ||||
Concentration Risk, Percentage | 11.90% | 17.60% | ||
Total Accounts Receivable and Transit Accounts Receivable [Member] | Customer Concentration Risk [Member] | New York Power Authority [Member] | ||||
Concentration Risk, Percentage | 14.00% | 17.00% | ||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Information Technology [Member] | ||||
Goodwill, Impairment Loss | $ 3,478 | |||
Goodwill | 2,038 | $ 5,516 | 5,516 | |
Engineering [Member] | ||||
Goodwill, Impairment Loss | ||||
Goodwill | $ 7,249 | $ 4,411 | $ 4,411 | |
Engineering [Member] | Total Revenue From Agreements [Member] | ||||
Concentration Risk, Percentage | 14.00% | 15.50% | ||
Restricted Covenants [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Computers and Systems [Member] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Transit Accounts Receivable [Member] | ||||
Accounts Receivable, Gross, Current | $ 3,000 | $ 4,300 | ||
Transit Accounts Receivable [Member] | New York Power Authority [Member] | ||||
Accounts Receivable, Gross, Current | 500 | |||
Transit Accounts Payable [Member] | ||||
Accounts Payable, Current | 4,700 | 6,800 | ||
CANADA | ||||
Cash and Cash Equivalents, at Carrying Value | $ 100 | $ 100 |
Note 4 - Accounts Receivable,42
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable (Details Textual) - Collectibility of Receivables [Member] $ in Millions | Dec. 30, 2017USD ($) |
Loss Contingency, Receivable | $ 6.9 |
Loss Contingency, Estimate of Possible Loss | $ 9.3 |
Note 4 - Accounts Receivable,43
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Allowance for sales discounts and doubtful accounts | $ (967) | $ (1,402) |
Accounts receivable, net | 46,080 | 45,170 |
Billed Revenues [Member] | ||
Accounts receivable, current | 31,448 | 34,463 |
Unbilled Revenues [Member] | ||
Accounts receivable, current | 10,573 | 6,894 |
Work In Progress [Member] | ||
Accounts receivable, current | $ 5,026 | $ 5,215 |
Note 5 - Property and Equipme44
Note 5 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Annual Depreciation Rate | 20.00% | |
Write Off of Fully Depreciated Property and Equipment | $ 458 | $ 2,705 |
Depreciation | $ 1,691 | $ 1,489 |
Note 5 - Property and Equipme45
Note 5 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Property and equipment | $ 8,009 | $ 7,370 |
Less: accumulated depreciation and amortization | 4,563 | 3,318 |
Property and equipment, net | 3,446 | 4,052 |
Equipment and Furniture [Member] | ||
Property and equipment | 938 | 1,045 |
Computers and Systems [Member] | ||
Property and equipment | 6,172 | 5,521 |
Leasehold Improvements [Member] | ||
Property and equipment | $ 899 | $ 804 |
Note 6 - Acquisitions (Details
Note 6 - Acquisitions (Details Textual) $ in Thousands | Oct. 01, 2017USD ($) | Apr. 16, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2017USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Combinations, Acquisitions with Contingent Consideration Outstanding | 6 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 4,100 | |||||
Payment for Contingent Consideration Liability, Financing Activities | 1,694 | $ 993 | ||||
Allied Health Professionals, LLC [Member] | ||||||
Business Combination, Consideration Transferred | 695 | |||||
Payments to Acquire Businesses, Gross | $ 275 | |||||
Allied Health Professionals, LLC [Member] | Contingent Consideration Tied To Certain Gross Profit Targets Earned [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 140 | $ 140 | ||||
Allied Health Professionals, LLC [Member] | Unsecured Notes Payable [Member] | ||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 280 | |||||
RAF Services, Inc [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 10 | |||||
Business Combination, Consideration Transferred | $ 133 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 123 | |||||
PSR Engineering Solutions d.o.o. Beograd (Voždovac) [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 1,763 | |||||
Business Combination, Consideration Transferred | 3,248 | |||||
Payments to Acquire Businesses, Gross | 1,000 | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | 485 | |||||
Cash Acquired from Acquisition | 237 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 58 |
Note 6 - Acquisitions - Maximum
Note 6 - Acquisitions - Maximum Deferred Consideration Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
December 29, 2018 | $ 741 | |
December 28, 2019 | 625 | |
January 2, 2021 | 725 | |
Estimated future contingent consideration payments | 2,091 | |
Balance | 1,231 | $ 1,800 |
Contingent consideration paid | (1,694) | (993) |
Estimated contingent payments, acquisitions | 1,773 | 139 |
Increase to contingent payment estimates | 781 | 285 |
Balance | $ 2,091 | $ 1,231 |
Note 7 - Goodwill (Details Text
Note 7 - Goodwill (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill, Impairment Loss | $ 3,478 | $ 0 |
Note 7 - Goodwill - Changes in
Note 7 - Goodwill - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Balance | $ 12,325 | $ 11,630 |
Balance | 11,685 | 12,325 |
Goodwill impairment | (3,478) | 0 |
Allied Health Professionals, LLC [Member] | ||
Goodwill recorded, acquisition | 695 | |
RAF Services, Inc [Member] | ||
Goodwill recorded, acquisition | 133 | |
PSR Engineering Solutions d.o.o. Beograd (Voždovac) [Member] | ||
Goodwill recorded, acquisition | 2,705 | |
Engineering [Member] | ||
Balance | 4,411 | 4,411 |
Balance | 7,249 | 4,411 |
Goodwill impairment | ||
Engineering [Member] | Allied Health Professionals, LLC [Member] | ||
Goodwill recorded, acquisition | ||
Engineering [Member] | RAF Services, Inc [Member] | ||
Goodwill recorded, acquisition | 133 | |
Engineering [Member] | PSR Engineering Solutions d.o.o. Beograd (Voždovac) [Member] | ||
Goodwill recorded, acquisition | 2,705 | |
Specialty Health Care [Member] | ||
Balance | 2,398 | 1,703 |
Balance | 2,398 | 2,398 |
Goodwill impairment | ||
Specialty Health Care [Member] | Allied Health Professionals, LLC [Member] | ||
Goodwill recorded, acquisition | 695 | |
Specialty Health Care [Member] | RAF Services, Inc [Member] | ||
Goodwill recorded, acquisition | ||
Specialty Health Care [Member] | PSR Engineering Solutions d.o.o. Beograd (Voždovac) [Member] | ||
Goodwill recorded, acquisition | ||
Information Technology [Member] | ||
Balance | 5,516 | 5,516 |
Balance | 2,038 | 5,516 |
Goodwill impairment | (3,478) | |
Information Technology [Member] | Allied Health Professionals, LLC [Member] | ||
Goodwill recorded, acquisition | ||
Information Technology [Member] | RAF Services, Inc [Member] | ||
Goodwill recorded, acquisition | ||
Information Technology [Member] | PSR Engineering Solutions d.o.o. Beograd (Voždovac) [Member] | ||
Goodwill recorded, acquisition |
Note 8 - Intangible Assets (Det
Note 8 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 |
Amortization of Intangible Assets | $ 66 | $ 80 |
Note 8 - Intangible Assets - In
Note 8 - Intangible Assets - Intangible Assets by Class (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Intangible assets, net | $ 105 | $ 171 |
Restricted Covenants [Member] | ||
Intangible assets, net | 17 | 27 |
Customer Relationships [Member] | ||
Intangible assets, net | $ 88 | $ 144 |
Note 9 - Line of Credit (Detail
Note 9 - Line of Credit (Details Textual) - USD ($) $ in Thousands | Dec. 08, 2017 | Feb. 14, 2018 | Feb. 13, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Feb. 20, 2009 |
Long-term Line of Credit, Noncurrent | $ 27,279 | $ 14,311 | ||||
Citizens Bank of Pennsylvania [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000 | |||||
Line of Credit, Loan Covenants, Cash Dividend | $ 12,400 | |||||
Line of Credit, Loan Covenants, Waiver Granted, Amount of Legal Settlement and Office Closure Expenses Excluded | 1,300 | |||||
Line of Credit, Loan Covenants, Waiver Granted, Consulting Expenses Excluded | 1,000 | |||||
Line of Credit, Loan Covenants, Waiver Granted, Goodwill Impairment Expenses Excluded | $ 4,600 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 2.30% | ||||
Long-term Line of Credit, Noncurrent | $ 27,300 | $ 14,300 | ||||
Letters of Credit Outstanding, Amount | 800 | $ 800 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 6,900 | |||||
Citizens Bank of Pennsylvania [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000 | $ 35,000 | ||||
Citizens Bank of Pennsylvania [Member] | Letter of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 |
Note 10 - Per Share Data (Detai
Note 10 - Per Share Data (Details Textual) - shares | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 40,000 |
Note 10 - Per Share Data - Weig
Note 10 - Per Share Data - Weighted Average Number of Common Shares (Details) - shares | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Basic weighted average shares outstanding (in shares) | 11,995,341 | 12,302,558 |
Dilutive effect of outstanding restricted share units and stock options (in shares) | 121,860 | 120,790 |
Weighted average dilutive shares outstanding (in shares) | 12,117,201 | 12,423,348 |
Note 10 - Per Share Data - Unis
Note 10 - Per Share Data - Unissued Shares of Common Stock Were Reserved for the Following Purposes (Details) - shares | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Exercise of options outstanding (in shares) | 0 | 42,000 | 44,500 |
Future grants of options or shares (in shares) | 332,232 | 619,266 | |
Shares reserved for employee stock purchase plan (in shares) | 177,280 | 268,211 | |
Total (in shares) | 996,546 | 1,327,211 | |
Time-based Restricted Stock Units [Member] | |||
Restricted stock units outstanding (in shares) | 87,034 | 197,734 | |
Performance-based Restricted Stock Units [Member] | |||
Restricted stock units outstanding (in shares) | 400,000 | 200,000 |
Note 11 - Share Based Compens56
Note 11 - Share Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Dec. 29, 2017 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Allocated Share-based Compensation Expense | $ 770 | $ 901 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 400 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 996,546 | 1,327,211 | |||
Share Price | $ 6.25 | ||||
Dividends Payable | $ 87 | $ 0 | |||
The 2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,125,000 | 625,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 500,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 332,232 | ||||
Employee Stock Purchase Plan [Member] | |||||
Allocated Share-based Compensation Expense | $ 114 | $ 108 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 177,280 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 3,000 | ||||
Additional Shares of Common Stock Reserved for Future Issuance | 300,000 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,100,000 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 90,931 | 81,225 | |||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | $ 394 | $ 368 | |||
Performance-based Restricted Stock Units [Member] | |||||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 200,000 | 200,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 400,000 | ||||
Performance-based Restricted Stock Units [Member] | The 2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 200,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 400,000 | 200,000 | |||
Time-based Restricted Stock Units [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 87,000 | 63,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 500 | ||||
Time-based Restricted Stock Units [Member] | The 2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 87,034 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 487,000 | 398,000 | 209,000 | ||
Dividends Payable | $ 500 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 11 - Share Based Compens57
Note 11 - Share Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Options outstanding (in shares) | 42,000 | 44,500 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.27 | $ 8.12 |
Options granted (in shares) | 0 | |
Options granted, weighted average exercise price (in dollars per share) | ||
Options exercised, net (in shares) | (11,917) | (2,500) |
Options exercised, net, weighted average exercise price (in dollars per share) | $ 6 | $ 5.62 |
Options forfeited/cancelled (in shares) | (25,000) | |
Options forfeited/cancelled, weighted average exercise price (in dollars per share) | $ 9.81 | |
Options outstanding (in shares) | 0 | 42,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.27 | |
Options exercisable, net (in shares) | 0 | 27,000 |
Options exercisable, net, weighted average exercise price (in dollars per share) | $ 9.47 | |
Intrinsic value of outstanding stock options | $ 0 | $ 6 |
Intrinsic value of stock options exercised in fiscal year ended | $ 17 | $ 3 |
Options forfeited in cashless exercises (in shares) | (5,083) | |
Options forfeited in cashless exercises, weighted average exercise price (in dollars per share) | $ 6.10 | |
Weighted average grant date fair value of stock options issued during fiscal year ended (in dollars per share) | $ 0 |
Note 11 - Share Based Compens58
Note 11 - Share Based Compensation - Nonvested Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 30, 2017$ / sharesshares | |
Nonvested (in shares) | shares | 15,000 |
Nonvested, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 2.33 |
Vested (in shares) | shares | 15,000 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 2.33 |
Forfeited (in shares) | shares | 0 |
Forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0 |
Issued nonvested (in shares) | shares | 0 |
Issued nonvested, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0 |
Nonvested (in shares) | shares | 0 |
Nonvested, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0 |
Note 11 - Share-based Compensat
Note 11 - Share-based Compensation - Restricted Stock Units Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Vested (in shares) | (15,000) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 2.33 | |
Time-based Restricted Stock Units [Member] | ||
Granted (in shares) | 87,000 | 63,000 |
Granted, weighted average grant date fair value (in dollars per share) | $ 5.88 | $ 5.98 |
Time-based Restricted Stock Units [Member] | The 2007 and 2014 Plan [Member] | ||
Outstanding non-vested (in shares) | 197,734 | |
Outstanding non-vested, weighted average grant date fair value (in dollars per share) | $ 7.33 | |
Granted (in shares) | 87,034 | |
Granted, weighted average grant date fair value (in dollars per share) | $ 5.88 | |
Vested (in shares) | (197,734) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 7.33 | |
Forfeited or expired (in shares) | 0 | |
Forfeited or expired, weighted average grant date fair value (in dollars per share) | $ 0 | |
Outstanding non-vested (in shares) | 87,034 | 197,734 |
Outstanding non-vested, weighted average grant date fair value (in dollars per share) | $ 5.88 | $ 7.33 |
Time-based Restricted Stock Units [Member] | The 2014 Plan [Member] | ||
Outstanding non-vested (in shares) | 87,034 | |
Performance-based Restricted Stock Units [Member] | ||
Granted (in shares) | 200,000 | 200,000 |
Granted, weighted average grant date fair value (in dollars per share) | $ 4.85 | $ 5.36 |
Outstanding non-vested (in shares) | 400,000 | |
Performance-based Restricted Stock Units [Member] | The 2014 Plan [Member] | ||
Outstanding non-vested (in shares) | 200,000 | |
Outstanding non-vested, weighted average grant date fair value (in dollars per share) | $ 5.36 | |
Granted (in shares) | 200,000 | |
Granted, weighted average grant date fair value (in dollars per share) | $ 4.85 | |
Vested (in shares) | 0 | |
Vested, weighted average grant date fair value (in dollars per share) | $ 0 | |
Forfeited or expired (in shares) | 0 | |
Forfeited or expired, weighted average grant date fair value (in dollars per share) | $ 0 | |
Outstanding non-vested (in shares) | 400,000 | 200,000 |
Outstanding non-vested, weighted average grant date fair value (in dollars per share) | $ 5.11 | $ 5.36 |
Restricted Stock Units (RSUs) [Member] | ||
Outstanding non-vested (in shares) | 398,000 | 209,000 |
Outstanding non-vested, weighted average grant date fair value (in dollars per share) | $ 6.34 | $ 7.10 |
Vested (in shares) | (198,000) | (74,000) |
Vested, weighted average grant date fair value (in dollars per share) | $ 7.33 | $ 5.56 |
Forfeited or expired (in shares) | ||
Forfeited or expired, weighted average grant date fair value (in dollars per share) | ||
Outstanding non-vested (in shares) | 487,000 | 398,000 |
Outstanding non-vested, weighted average grant date fair value (in dollars per share) | $ 5.24 | $ 6.34 |
Note 12 - Treasury Stock Tran60
Note 12 - Treasury Stock Transactions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Aug. 09, 2016 | Oct. 28, 2013 | |
Treasury Stock, Value, Acquired, Cost Method | $ 365 | $ 4,257 | ||
Stock Repurchase Program 2013 [Member] | ||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | |||
Stock Repurchase Program, 2016 [Member] | ||||
Stock Repurchase Program, Authorized Amount | $ 5,000 | |||
Treasury Stock, Shares, Acquired | 59,312 | 701,114 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 5.54 | $ 6.07 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 4,300 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2,500 |
Note 14 - Segment Information -
Note 14 - Segment Information - Results of the Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues | $ 186,737 | $ 176,448 |
Cost of services | 138,350 | 129,418 |
Gross profit | 48,387 | 47,030 |
Selling, general and administrative | 40,385 | 40,063 |
Legal, office closures and other charges | 1,447 | 1,283 |
Tax credit professional fees | 259 | 0 |
Change in contingent consideration | 781 | 285 |
Goodwill impairment | 3,478 | 0 |
Depreciation and amortization | 1,757 | 1,569 |
Operating income (loss) | 280 | 3,830 |
Total assets | 73,279 | 69,831 |
Capital expenditures | 1,040 | 846 |
Engineering [Member] | ||
Revenues | 82,753 | 73,853 |
Cost of services | 60,352 | 54,182 |
Gross profit | 22,401 | 19,671 |
Selling, general and administrative | 16,114 | 15,168 |
Legal, office closures and other charges | ||
Tax credit professional fees | ||
Change in contingent consideration | 781 | 285 |
Goodwill impairment | ||
Depreciation and amortization | 1,186 | 1,120 |
Operating income (loss) | 4,320 | 3,098 |
Total assets | 35,121 | 35,535 |
Capital expenditures | 472 | 620 |
Specialty Health Care [Member] | ||
Revenues | 71,316 | 59,783 |
Cost of services | 53,801 | 44,091 |
Gross profit | 17,515 | 15,692 |
Selling, general and administrative | 15,811 | 13,947 |
Legal, office closures and other charges | ||
Tax credit professional fees | ||
Change in contingent consideration | ||
Goodwill impairment | ||
Depreciation and amortization | 386 | 257 |
Operating income (loss) | 1,318 | 1,488 |
Total assets | 22,718 | 18,565 |
Capital expenditures | 494 | 149 |
Information Technology [Member] | ||
Revenues | 32,668 | 42,812 |
Cost of services | 24,197 | 31,145 |
Gross profit | 8,471 | 11,667 |
Selling, general and administrative | 8,460 | 10,948 |
Legal, office closures and other charges | ||
Tax credit professional fees | ||
Change in contingent consideration | ||
Goodwill impairment | 3,478 | |
Depreciation and amortization | 185 | 192 |
Operating income (loss) | (3,652) | 527 |
Total assets | 6,288 | 11,705 |
Capital expenditures | 52 | |
Corporate Segment [Member] | ||
Revenues | ||
Cost of services | ||
Gross profit | ||
Selling, general and administrative | ||
Legal, office closures and other charges | 1,447 | 1,283 |
Tax credit professional fees | 259 | |
Change in contingent consideration | ||
Goodwill impairment | ||
Depreciation and amortization | ||
Operating income (loss) | (1,706) | (1,283) |
Total assets | 9,152 | 4,026 |
Capital expenditures | $ 74 | $ 25 |
Note 14 - Segment Information62
Note 14 - Segment Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues | ||
Revenues | $ 186,737 | $ 176,448 |
UNITED STATES | ||
Revenues | ||
Revenues | 152,232 | 146,950 |
CANADA | ||
Revenues | ||
Revenues | 30,084 | 24,423 |
PUERTO RICO | ||
Revenues | ||
Revenues | 4,043 | 5,075 |
SERBIA | ||
Revenues | ||
Revenues | $ 378 |
Note 14 - Segment Information63
Note 14 - Segment Information - Total Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Total Assets | ||
Total assets | $ 73,279 | $ 69,831 |
UNITED STATES | ||
Total Assets | ||
Total assets | 52,595 | 53,842 |
CANADA | ||
Total Assets | ||
Total assets | 15,419 | 13,953 |
PUERTO RICO | ||
Total Assets | ||
Total assets | 1,891 | 2,036 |
SERBIA | ||
Total Assets | ||
Total assets | $ 3,374 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Tax Adjustments, Settlements, and Unusual Provisions | $ 1,200 | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 1,000 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 198 | ||
Effective Income Tax Rate Reconciliation, Percent | 920.40% | 46.80% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |
Income Tax Expense (Benefit) | $ (2,255) | $ 1,544 | |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 603 | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 458 | 186 | |
Effective Income Tax Rate Reconciliation, Deduction, Amount | 2,861 | ||
Foreign Income Tax Expense (Benefit), Continuing Operations | (369) | ||
Income Tax Examination, Penalties and Interest Expense | 0 | $ 0 | |
Scenario, Forecast [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Puerto Rico Department of Treasury [Member] | |||
Income Tax Expense (Benefit) | $ (248) | ||
Foreign Tax Authority [Member] | Canada Revenue Agency [Member] | |||
Effective Income Tax Rate Reconciliation, Percent | 26.50% | ||
Foreign Tax Authority [Member] | Ministry of Finance, Republic of Serbia [Member] | Minimum [Member] | |||
Effective Income Tax Rate Reconciliation, Percent | 15.00% | ||
Foreign Tax Authority [Member] | Ministry of Finance, Republic of Serbia [Member] | Maximum [Member] | |||
Effective Income Tax Rate Reconciliation, Percent | 20.00% | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2011 [Member] | |||
Income Tax Examination, Year under Examination | 2,011 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2012 [Member] | |||
Income Tax Examination, Year under Examination | 2,012 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2013 [Member] | |||
Income Tax Examination, Year under Examination | 2,013 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2015 [Member] | |||
Income Tax Examination, Year under Examination | 2,015 | ||
State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | Earliest Tax Year [Member] | |||
Income Tax Examination, Year under Examination | 2,009 | ||
State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | Latest Tax Year [Member] | |||
Income Tax Examination, Year under Examination | 2,012 |
Note 15 - Income Taxes - Income
Note 15 - Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Tax (benefit) expense on taxable (loss) income at statutory rate of 34.0% | $ (83) | $ 1,123 |
State and Puerto Rico income taxes, net of Federal income tax benefit | (248) | 263 |
USA 179D and Canadian R&D tax credits | (603) | |
Permanent differences | 458 | 186 |
Worthless stock deduction | (2,861) | |
Foreign income tax rates | (92) | 17 |
Impact on net deferred tax assets from 2018 Federal tax rate change | 1,015 | |
Transition repatriation taxes | 198 | |
Other | (39) | (45) |
Total income tax (benefit) expense | $ (2,255) | $ 1,544 |
Note 15 - Income Taxes - Inco66
Note 15 - Income Taxes - Income Tax Provision Reconciliation (Details) (Parentheticals) | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Tax (benefit) expense on taxable (loss) income, statutory rate | 34.00% | 34.00% |
Note 15 - Income Taxes - The Co
Note 15 - Income Taxes - The Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Current | ||
Federal | $ (471) | $ 688 |
State and local | 118 | 402 |
Foreign | 237 | (3) |
(116) | 1,087 | |
Deferred | ||
Federal | (1,841) | 372 |
State | (495) | 108 |
Foreign | 197 | (23) |
(2,139) | 457 | |
Total income tax (benefit) expense | (2,255) | 1,544 |
United States | (1,660) | 3,430 |
Foreign Jurisdictions | 1,415 | (128) |
(Loss) income before income taxes | $ (245) | $ 3,302 |
Note 15 - Income Taxes - Unreco
Note 15 - Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Balance as of December 31, 2016 | $ 628 |
Charges for current year tax positions | |
Reserves for current year tax position | |
Balance as of December 30, 2017 | $ 628 |
Note 15 - Income Taxes - Deferr
Note 15 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 235 | $ 451 |
Federal and state net operating loss carryforward | 2,501 | |
Reserves and accruals | 435 | 394 |
Other | 53 | 323 |
Total deferred tax assets | 3,224 | 1,168 |
Deferred tax liabilities: | ||
Acquisition amortization, net | (206) | (100) |
Prepaid expense deferral | (503) | (750) |
Bonus depreciation to be reversed | (326) | (466) |
Canada deferred tax liability, net | (431) | (234) |
Total deferred tax liabilities | (1,466) | (1,550) |
Total deferred tax liability, net | $ 1,758 | |
Total deferred tax asset, net | $ (382) |
Note 16 - Contingencies (Detail
Note 16 - Contingencies (Details Textual) $ in Millions | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Loss Contingency, Damages Sought, Value | $ 10 |
Estimated Litigation Liability | 0.1 |
Collectibility of Receivables [Member] | |
Loss Contingency, Receivable | 6.9 |
Loss Contingency, Estimate of Possible Loss | $ 9.3 |
Note 17 - Retirement Plans (Det
Note 17 - Retirement Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 477 | $ 588 |
Note 18 - Commitments (Details
Note 18 - Commitments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Leases, Rent Expense | $ 3,696 | $ 3,186 |
Operating Leases, Income Statement, Sublease Revenue | $ 12 | $ 0 |
Note 18 - Commitments - Minimum
Note 18 - Commitments - Minimum Future Annual Operating Lease Commitments (Details) $ in Thousands | Dec. 30, 2017USD ($) |
2,018 | $ 3,036 |
2,019 | 1,695 |
2,020 | 1,056 |
2,021 | 516 |
2,022 | 304 |
Total | $ 6,607 |
Note 19 - Related Party Trans74
Note 19 - Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Machon and Associates [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 0 | $ 65 |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) - Citizens Bank of Pennsylvania [Member] - Revolving Credit Facility [Member] - USD ($) $ in Millions | Feb. 14, 2018 | Feb. 13, 2018 | Feb. 20, 2009 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 35 | ||
Subsequent Event [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40 | $ 35 |
Schedule II - Valuation and Q76
Schedule II - Valuation and Qualifying Accounts and Reserves - Schedule of Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Member] | ||
Balance at Beginning of Period | $ 1,402 | $ 1,432 |
Charged to Costs and Expenses | 662 | 650 |
Deduction | (1,097) | (680) |
Balance at End of Period | 967 | 1,402 |
Legal Reserve [Member] | ||
Balance at Beginning of Period | 455 | 214 |
Charged to Costs and Expenses | 192 | 455 |
Deduction | (522) | (214) |
Balance at End of Period | $ 125 | $ 455 |