Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | ALPHA PRO TECH LTD | |
Entity Central Index Key | 884,269 | |
Trading Symbol | apt | |
Current Fiscal Year End Date | --12-31 | |
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) | 15,155,523 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash | $ 8,968,000 | $ 9,456,000 | [1] |
Investments | 252,000 | 607,000 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $83,000 and $67,000 as of September 30, 2017 and December 31, 2016, respectively | 5,445,000 | 4,648,000 | [1] |
Accounts receivable, unconsolidated affiliate | 450,000 | 174,000 | [1] |
Inventories | 9,464,000 | 10,994,000 | [1] |
Prepaid expenses and other current assets | 3,092,000 | 3,346,000 | [1] |
Deferred income tax assets | 438,000 | [1] | |
Total current assets | 27,671,000 | 29,663,000 | [1] |
Property and equipment, net | 3,001,000 | 2,646,000 | [1] |
Goodwill | 55,000 | 55,000 | [1] |
Definite-lived intangible assets, net | 23,000 | 34,000 | [1] |
Equity investments in unconsolidated affiliate | 3,877,000 | 3,538,000 | |
Total assets | 34,627,000 | 35,936,000 | [1] |
Current liabilities: | |||
Accounts payable | 1,048,000 | 1,005,000 | [1] |
Accrued liabilities | 977,000 | 1,460,000 | [1] |
Total current liabilities | 2,025,000 | 2,465,000 | [1] |
Deferred income tax liabilities | 256,000 | 807,000 | [1] |
Total liabilities | 2,281,000 | 3,272,000 | [1] |
Commitments | |||
Shareholders' equity: | |||
Common stock, $.01 par value: 50,000,000 shares authorized; 14,583,315 and 15,411,556 shares outstanding as of September 30, 2017 and December 31, 2016, respectively | 146,000 | 154,000 | [1] |
Additional paid-in capital | 6,600,000 | 9,990,000 | [1] |
Accumulated other comprehensive loss | (447,000) | (204,000) | [1] |
Retained earnings | 26,047,000 | 22,724,000 | [1] |
Total shareholders' equity | 32,346,000 | 32,664,000 | [1] |
Total liabilities and shareholders' equity | $ 34,627,000 | $ 35,936,000 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | [1] |
Allowance for doubtful accounts | $ 83,000 | $ 67,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Common stock, shares outstanding (in shares) | 14,583,315 | 15,411,556 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 12,049,000 | $ 11,779,000 | $ 34,082,000 | $ 36,334,000 |
Cost of goods sold, excluding depreciation and amortization | 7,337,000 | 7,263,000 | 20,589,000 | 23,032,000 |
Gross profit | 4,712,000 | 4,516,000 | 13,493,000 | 13,302,000 |
Operating expenses: | ||||
Selling, general and administrative | 3,450,000 | 3,158,000 | 10,269,000 | 9,950,000 |
Depreciation and amortization | 147,000 | 153,000 | 426,000 | 425,000 |
Total operating expenses | 3,597,000 | 3,311,000 | 10,695,000 | 10,375,000 |
Income from operations | 1,115,000 | 1,205,000 | 2,798,000 | 2,927,000 |
Other income: | ||||
Equity in income of unconsolidated affiliate | 105,000 | 242,000 | 339,000 | 433,000 |
Gain on sale of property | 385,000 | 385,000 | ||
Interest income, net | 1,000 | 1,000 | 3,000 | 3,000 |
Total other income | 491,000 | 243,000 | 727,000 | 436,000 |
Income before provision for income taxes | 1,606,000 | 1,448,000 | 3,525,000 | 3,363,000 |
Provision for income taxes | 503,000 | 429,000 | 1,068,000 | 1,040,000 |
Net income | $ 1,103,000 | $ 1,019,000 | $ 2,457,000 | $ 2,323,000 |
Basic earnings per common share (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.16 | $ 0.14 |
Diluted earnings per common share (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.16 | $ 0.14 |
Basic weighted average common shares outstanding (in shares) | 14,732,173 | 16,695,059 | 14,962,606 | 17,190,073 |
Diluted weighted average common shares outstanding (in shares) | 14,933,426 | 16,706,532 | 15,075,940 | 17,190,073 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 1,103,000 | $ 1,019,000 | $ 2,457,000 | $ 2,323,000 |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on marketable securities, net of tax | (208,000) | 28,000 | (243,000) | (50,000) |
Comprehensive income | $ 895,000 | $ 1,047,000 | $ 2,214,000 | $ 2,273,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance (in shares) at Dec. 31, 2016 | 15,411,556 | 15,411,556 | [1] | |||
Balance at Dec. 31, 2016 | $ 154,000 | $ 9,990,000 | $ (204,000) | $ 22,724,000 | $ 32,664,000 | [2] |
Common stock repurchased and retired (in shares) | (898,242) | |||||
Common stock repurchased and retired | $ (9,000) | (2,892,000) | (2,901,000) | |||
Stock-based compensation expense | 244,000 | $ 244,000 | ||||
Options exercised (in shares) | 70,001 | 70,001 | ||||
Options exercised | $ 1,000 | 124,000 | $ 125,000 | |||
Net income | 2,457,000 | 2,457,000 | ||||
Other comprehensive loss | (243,000) | $ (243,000) | ||||
Balance (in shares) at Sep. 30, 2017 | 14,583,315 | 14,583,315 | ||||
Balance at Sep. 30, 2017 | $ 146,000 | 6,600,000 | $ (447,000) | 26,047,000 | $ 32,346,000 | |
Cumulative-effect adjustment of change in accounting for stock-based compensation | $ (866,000) | $ 866,000 | ||||
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. | |||||
[2] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 2,457,000 | $ 2,323,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 244,000 | 115,000 | |
Depreciation and amortization | 426,000 | 425,000 | |
Equity in income of unconsolidated affiliate | (339,000) | (433,000) | |
Gain on sale of property | (385,000) | ||
Changes in assets and liabilities: | |||
Accounts receivable, net | (797,000) | (1,953,000) | |
Accounts receivable, unconsolidated affiliate | (276,000) | (11,000) | |
Inventories | 1,530,000 | 4,544,000 | |
Prepaid expenses and other current assets | 254,000 | 191,000 | |
Accounts payable and accrued liabilities | (440,000) | 815,000 | |
Net cash provided by operating activities | 2,674,000 | 6,016,000 | |
Cash Flows From Investing Activities: | |||
Purchase of property and equipment | (923,000) | (212,000) | |
Proceeds from sale of property | 537,000 | ||
Purchase of marketable securities | (41,000) | ||
Net cash used in investing activities | (386,000) | (253,000) | |
Cash Flows From Financing Activities: | |||
Repurchase of common stock | (2,901,000) | (3,689,000) | |
Proceeds from exercise of stock options | 125,000 | 17,000 | |
Net cash used in financing activities | (2,776,000) | (3,672,000) | |
Increase (decrease) in cash | (488,000) | 2,091,000 | |
Cash, beginning of the period | 9,456,000 | [1] | 9,681,000 |
Cash, end of the period | $ 8,968,000 | $ 11,772,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note 1 - The Company
Note 1 - The Company | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. The Company Alpha Pro Tech, Ltd. (“Alpha Pro Tech” or the “Company”) is in the business of protecting people, products and environments. The Company accomplishes this by developing, manufacturing and marketing a line of building supply products for the new home and re-roofing markets; a line of disposable protective apparel for the cleanroom, industrial and pharmaceutical markets; and a line of infection control products for the medical and dental markets. The Building Supply segment consists of construction weatherization products, such as housewrap and synthetic roof underlayment , as well as other woven material. The Disposable Protective Apparel segment consists of a complete line of shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats. The Infection Control segment consists of a line of face masks and eye shields. The Company ’s products are sold under the "Alpha Pro Tech" brand name and under private label, and are predominantly sold in the United States of America (“US”). |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Basis of Presentation The interim financial information included herein is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. These interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, omit certain information and note disclosures necessary to present the statements in accordance with US generally accepted accounting principles (“US GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings on Form 10 8 December 31, 2016, 10 “2016 10 March 8, 2017. nine September 30, 2017 10 not December 31, 2016 2016 10 not |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 3. S tock - Based Compensation The Company maintains a stock option plan under which the Company may The Company record s compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options. For the nine September 30, 2017, 25,000 nine September 30, 2016, 810,000 $244,000 $115,000 nine September 30, 2017 2016, Stock options to purchase 999,999 September 30, 2017, 1,065,000 December 31, 2016. The Company use s the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the life of the options. The risk-free interest rate for periods within the contractual life of the award is based on the US Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility and management’s expectations of future volatility. The Company uses an estimated dividend payout of zero, as the Company has not not The following table summarizes stock option activity for the nine September 30, 2017: Weighted Average Exercise Price Shares Per Option Options outstanding, December 31, 2016 1,065,000 $ 2.06 Granted to employees and non-employee directors 25,000 3.66 Exercised (70,001 ) 1.78 Canceled/expired/forfeited (20,000 ) 1.58 Options outstanding, Septermber 30, 2017 999,999 2.13 Options exercisable, September 30, 2017 330,000 1.96 As of September 30, 2017 , $602,000 1.70 As a result of the Company adopting Accounting Standards Update (“ ASU”) 2016 09, Compensation - Stock Compensation 718 Improvements to Employee Share-Based Payment Accounting March 31, 2017, one $866,000 |
Note 4 - Investments
Note 4 - Investments | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Investments As of September 30, 2017 December 31, 2016, $252,000 $607,000 The following provides information regarding the Company ’s marketable securities as of September 30, 2017 December 31, 2016: September 30, December 31, 2017 2016 Cost basis $ 543,000 $ 543,000 Gains previously recognized on warrants 380,000 380,000 Loss included in accumulated other comprehensive loss before tax benefit (671,000 ) (316,000 ) Fair value $ 252,000 $ 607,000 No nine September 30, 2017 December 31, 2016. $208,000 $28,000 three September 30, 2017 2016, September 30, 2017 2016, $105,000, $15,000 September 30, 2017 2016, $243,000 $50,000 nine September 30, 2017 2016, nine September 30, 2017 2016. $113,000 $31,000 nine September 30, 2017 2016, |
Note 5 - Recent Accounting Pron
Note 5 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 5. Recent Accounting Pronouncements Accounting Standards Update (“ ASU”) 2014 09, Revenue from Contracts with Customers 606 2014 09” 2014 09, may 2014 09 first December 15, 2017, not 2014 09 first 2018. no In November 2015, 2015 17, Income Taxes 740 Balance Sheet Classification of Deferred Taxes December 15, 2016 first 2017. $410,000 first 2017. not In January 2016, 2016 01, Financial Instruments Overall 825 10 Recognition and Measurement of Financial Assets and Financial Liabilities December 15, 2017. not not I n February 2016, 2016 02, Leases 842 December 15, 2018 not In March 2016, 2016 09, Compensation - Stock Compensation 718 Improvements to Employee Share-Based Payment Accounting December 15, 2016 he Company adopted this guidance during the quarter ended March 31, 2017, one $866,000 no Management periodically reviews new accounting standards that are issued. Management has not |
Note 6 - Inventories
Note 6 - Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. Inventories As of September 30, 2017 December 31, 2016, September 30, December 31, 2017 2016 Raw materials $ 4,081,000 $ 4,313,000 Work in process 1,609,000 2,535,000 Finished goods 3,774,000 4,146,000 $ 9,464,000 $ 10,994,000 |
Note 7 - Equity Investment in U
Note 7 - Equity Investment in Unconsolidated Affiliate | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 7 . Equity I nvestment in Unconsolidated Affiliate In 2005, , Harmony Plastics Private Limited (“Harmony”), was created with ownership interests of 41.66% 58.34% This joint venture positions Alpha ProTech Engineered Products, Inc. to respond to current and expected increased product demand for housewrap and synthetic roof underlayment and provides future capacity for sales of specialty roofing component products and custom products for industrial applications requiring high quality extrusion coated fabrics. In addition, the joint venture now supplies products for the Disposable Protective Apparel segment . The capital from the initial funding and a bank loan, which loan is guaranteed exclusively by the individual shareholders of Maple Industries and Associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India. Harmony currently has five three two 1 102,000 2 71,500 3 16,000 4 12,000 5 93,000 no In accordance with Accounting Standards Codification (“ASC”) 810, Consolidation not 810 not not The Company records its investment in Harmony as “equity investment in unconsolidated affiliate” in the accompanying condensed consolidated balance sheets. The Company records its equity interest in Harmony’s results of operations as “equity in income of unconsolidated affiliate” in the accompanying condensed consolidated statements of income. The Company periodically reviews its investment in Harmony for impairment. Management has determined that no September 30, 2017. For the three September 30, 2017 2016, $3,258,000 $3,716,000 nine September 30, 2017 2016, $11,097,000 $9,646,000 For the three September 30, 2017 2016, $105,000 $242,000, nine September 30, 2017 2016, $339,000 $433,000, As of September 30, 2017, $3,877,000, $1,450,000 $3,446,000, $942,000 $77,000 |
Note 8 - Accrued Liabilities
Note 8 - Accrued Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8 . Accrued Liabilities As of September 30, 2017 December 31, 2016, September 30, December 31, 2017 2016 Bonuses payable $ 696,000 $ 904,000 Payroll expenses 281,000 556,000 $ 977,000 $ 1,460,000 |
Note 9 - Basic and Diluted Earn
Note 9 - Basic and Diluted Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9 . Basic and Diluted Earnings Per Common Share The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three nine September 30, 2017 2016. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income (numerator) $ 1,103,000 $ 1,019,000 $ 2,457,000 $ 2,323,000 Shares (denominator): Basic weighted average common shares outstanding 14,732,173 16,695,059 14,962,606 17,190,073 Add: dilutive effect of common stock options 201,253 11,473 113,334 - Diluted weighted average common shares outstanding 14,933,426 16,706,532 15,075,940 17,190,073 Earnings per common share: Basic $ 0.07 $ 0.06 $ 0.16 $ 0.14 Diluted $ 0.07 $ 0.06 $ 0.16 $ 0.14 |
Note 10 - Activity of Business
Note 10 - Activity of Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10 . Activity of Business Segments The Company operates through three Building Supply : consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and synthetic roof underlayment, as well as other woven material. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment. Disposable Protective Apparel : consisting of a complete line of disposable protective clothing, such as shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods for the pharmaceutical, cleanroom, industrial and medical markets. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment. Infection Control : consisting of a line of face masks and eye shields. Segment data excludes charges allocated to the principal executive office and other unallocated expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales. The following table presents consolidated net sales for each segment for the three nine September 30, 2017 2016: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Building Supply $ 7,076,000 $ 7,022,000 $ 19,298,000 $ 21,700,000 Disposable Protective Apparel 3,845,000 3,698,000 10,914,000 11,147,000 Infection Control 1,128,000 1,059,000 3,870,000 3,487,000 Consolidated net sales $ 12,049,000 $ 11,779,000 $ 34,082,000 $ 36,334,000 The following table presents the reconciliation of consolidated segment income to consolidated net income for the three nine September 30, 2017 2016: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Building Supply $ 1,339,000 $ 1,618,000 $ 3,471,000 $ 4,287,000 Disposable Protective Apparel 764,000 617,000 1,977,000 1,327,000 Infection Control 396,000 375,000 1,405,000 1,211,000 Total segment income 2,499,000 2,610,000 6,853,000 6,825,000 Unallocated corporate overhead expenses 893,000 1,162,000 3,328,000 3,462,000 Provision for income taxes 503,000 429,000 1,068,000 1,040,000 Consolidated net income $ 1,103,000 $ 1,019,000 $ 2,457,000 $ 2,323,000 The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of September 30, 2017 December 31, 2016: September 30, December 31, 2017 2016 Building Supply $ 2,168,000 $ 2,208,000 Disposable Protective Apparel 341,000 346,000 Infection Control 14,000 140,000 Total segment assets 2,523,000 2,694,000 Unallocated corporate assets 556,000 41,000 Total consolidated assets $ 3,079,000 $ 2,735,000 |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 11 . Related Party Transactions The Company has historically used a law firm for various legal matters whose majority member was a member of the Company ’s Board of Directors. Effective March 31, 2017, three September 30, 2016, $95,000 nine September 30, 2017 2016, $65,000 $145,000, December 31, 2016, $163,000. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Commitments and Contingencies The Company is presently involved in protracted litigation against a competitor in an action styled Alpha Pro Tech, Inc. v. VWR International, LLC, pending in the U.S. District Court for the Eastern District of Pennsylvania, CV 12 1615, y originally sought damages for unfair trade practices and false advertising against the competitor, and the competitor has counterclaimed asserting similar claims against the Company. In August 2017, The Company is subject to other pending and threatened litigation actions in the ordinary course of business. Although it is not not |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 13. Subsequent Events The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of September 30, 2017 10 no |
Note 3 - Stock-based Compensa21
Note 3 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price Shares Per Option Options outstanding, December 31, 2016 1,065,000 $ 2.06 Granted to employees and non-employee directors 25,000 3.66 Exercised (70,001 ) 1.78 Canceled/expired/forfeited (20,000 ) 1.58 Options outstanding, Septermber 30, 2017 999,999 2.13 Options exercisable, September 30, 2017 330,000 1.96 |
Note 4 - Investments (Tables)
Note 4 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | September 30, December 31, 2017 2016 Cost basis $ 543,000 $ 543,000 Gains previously recognized on warrants 380,000 380,000 Loss included in accumulated other comprehensive loss before tax benefit (671,000 ) (316,000 ) Fair value $ 252,000 $ 607,000 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2017 2016 Raw materials $ 4,081,000 $ 4,313,000 Work in process 1,609,000 2,535,000 Finished goods 3,774,000 4,146,000 $ 9,464,000 $ 10,994,000 |
Note 8 - Accrued Liabilities (T
Note 8 - Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, December 31, 2017 2016 Bonuses payable $ 696,000 $ 904,000 Payroll expenses 281,000 556,000 $ 977,000 $ 1,460,000 |
Note 9 - Basic and Diluted Ea25
Note 9 - Basic and Diluted Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income (numerator) $ 1,103,000 $ 1,019,000 $ 2,457,000 $ 2,323,000 Shares (denominator): Basic weighted average common shares outstanding 14,732,173 16,695,059 14,962,606 17,190,073 Add: dilutive effect of common stock options 201,253 11,473 113,334 - Diluted weighted average common shares outstanding 14,933,426 16,706,532 15,075,940 17,190,073 Earnings per common share: Basic $ 0.07 $ 0.06 $ 0.16 $ 0.14 Diluted $ 0.07 $ 0.06 $ 0.16 $ 0.14 |
Note 10 - Activity of Busines26
Note 10 - Activity of Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Building Supply $ 7,076,000 $ 7,022,000 $ 19,298,000 $ 21,700,000 Disposable Protective Apparel 3,845,000 3,698,000 10,914,000 11,147,000 Infection Control 1,128,000 1,059,000 3,870,000 3,487,000 Consolidated net sales $ 12,049,000 $ 11,779,000 $ 34,082,000 $ 36,334,000 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Building Supply $ 1,339,000 $ 1,618,000 $ 3,471,000 $ 4,287,000 Disposable Protective Apparel 764,000 617,000 1,977,000 1,327,000 Infection Control 396,000 375,000 1,405,000 1,211,000 Total segment income 2,499,000 2,610,000 6,853,000 6,825,000 Unallocated corporate overhead expenses 893,000 1,162,000 3,328,000 3,462,000 Provision for income taxes 503,000 429,000 1,068,000 1,040,000 Consolidated net income $ 1,103,000 $ 1,019,000 $ 2,457,000 $ 2,323,000 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | September 30, December 31, 2017 2016 Building Supply $ 2,168,000 $ 2,208,000 Disposable Protective Apparel 341,000 346,000 Infection Control 14,000 140,000 Total segment assets 2,523,000 2,694,000 Unallocated corporate assets 556,000 41,000 Total consolidated assets $ 3,079,000 $ 2,735,000 |
Note 3 - Stock-based Compensa27
Note 3 - Stock-based Compensation (Details Textual) - USD ($) xbrli-pure in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 25,000 | 810,000 | ||
Allocated Share-based Compensation Expense | $ 244,000 | $ 115,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 999,999 | 1,065,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 602,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member] | ||||
Current Period Reclassification Adjustment | $ (866,000) | |||
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||||
Current Period Reclassification Adjustment | $ 866,000 |
Note 3 - Stock-based Compensa28
Note 3 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Options outstanding (in shares) | 1,065,000 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.06 | |
Granted to employees and non-employee directors (in shares) | 25,000 | 810,000 |
Granted to employees and non-employee directors, weighted average exercise price (in dollars per share) | $ 3.66 | |
Exercised (in shares) | (70,001) | |
Exercised, weighted average exercise price (in dollars per share) | $ 1.78 | |
Canceled/expired/forfeited (in shares) | (20,000) | |
Canceled/expired/forfeited, weighted average exercise price (in dollars per share) | $ 1.58 | |
Options outstanding, Septermber 30, 2017 (in shares) | 999,999 | |
Options outstanding, Septermber 30, 2017 (in dollars per share) | $ 2.13 | |
Options exercisable (in shares) | 330,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.96 |
Note 4 - Investments (Details T
Note 4 - Investments (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Available-for-sale Securities, Current | $ 252,000 | $ 252,000 | $ 607,000 | [1] | ||
Proceeds from Sale and Maturity of Marketable Securities | 0 | $ 0 | ||||
Marketable Securities, Unrealized Gain (Loss) | (208,000) | $ 28,000 | (243,000) | $ (50,000) | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 105,000 | $ 15,000 | $ 113,000 | $ 31,000 | ||
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note 4 - Investments - Availabl
Note 4 - Investments - Available-for-sale Marketable Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Gains previously recognized on warrants | $ 380,000 | $ 380,000 | |
Loss included in accumulated other comprehensive loss before tax benefit | (671,000) | (316,000) | |
Available-for-sale Securities, Current | 252,000 | 607,000 | [1] |
Marketable Securities [Member] | |||
Cost basis | 543,000 | 543,000 | |
Available-for-sale Securities, Current | $ 252,000 | $ 607,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note 5 - Recent Accounting Pr31
Note 5 - Recent Accounting Pronouncements (Details Textual) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 410,000 |
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member] | |
Current Period Reclassification Adjustment | (866,000) |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | |
Current Period Reclassification Adjustment | $ 866,000 |
Note 6 - Inventories - Inventor
Note 6 - Inventories - Inventories (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Raw materials | $ 4,081,000 | $ 4,313,000 | |
Work in process | 1,609,000 | 2,535,000 | |
Finished goods | 3,774,000 | 4,146,000 | |
$ 9,464,000 | $ 10,994,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note 7 - Equity Investment in33
Note 7 - Equity Investment in Unconsolidated Affiliate (Details Textual) | 3 Months Ended | 9 Months Ended | 141 Months Ended | |||
Sep. 30, 2017USD ($)ft² | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)ft² | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)ft² | Dec. 31, 2005 | |
Expense To Acquire Inventory | $ 3,258,000 | $ 3,716,000 | $ 11,097,000 | $ 9,646,000 | ||
Income (Loss) from Equity Method Investments | $ 105,000 | $ 242,000 | $ 339,000 | $ 433,000 | ||
INDIA | Harmony [Member] | ||||||
Number of Stores | 5 | 5 | 5 | |||
Number Of Stores Owned | 3 | 3 | 3 | |||
Number Of Stores Rented | 2 | 2 | 2 | |||
INDIA | Harmony [Member] | Manufacturing Building Products [Member] | ||||||
Area of Real Estate Property | ft² | 102,000 | 102,000 | 102,000 | |||
INDIA | Harmony [Member] | Manufacturing Coated Material and Sewing Proprietary Disposable Protective Apparel [Member] | ||||||
Area of Real Estate Property | ft² | 71,500 | 71,500 | 71,500 | |||
INDIA | Harmony [Member] | Sewing Proprietary Disposable Protective Apparel [Member] | ||||||
Area of Real Estate Property | ft² | 16,000 | 16,000 | 16,000 | |||
INDIA | Harmony [Member] | Coating Material [Member] | ||||||
Area of Real Estate Property | ft² | 12,000 | 12,000 | 12,000 | |||
INDIA | Harmony [Member] | Manufacturing Of Building Products [Member] | ||||||
Area of Real Estate Property | ft² | 93,000 | 93,000 | 93,000 | |||
Harmony [Member] | ||||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | |||||
Equity Method Investments | $ 3,877,000 | 3,877,000 | $ 3,877,000 | |||
Equity Method Investment, Aggregate Cost | 1,450,000 | 1,450,000 | 1,450,000 | |||
Cumulative Equity In Income Of Unconsolidated Affiliate | $ 3,446,000 | $ 3,446,000 | 3,446,000 | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 942,000 | |||||
Proceeds from Equity Method Investment, Distribution | $ 77,000 | |||||
Harmony [Member] | Alpha Pro Tech Engineered Products [Member] | ||||||
Equity Method Investment, Ownership Percentage | 41.66% | |||||
Harmony [Member] | Maple Industries and Associates [Member] | ||||||
Equity Method Investment, Ownership Percentage | 58.34% |
Note 8 - Accrued Liabilities -
Note 8 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Bonuses payable | $ 696,000 | $ 904,000 | |
Payroll expenses | 281,000 | 556,000 | |
$ 977,000 | $ 1,460,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note 9 - Basic and Diluted Ea35
Note 9 - Basic and Diluted Earnings Per Common Share - Reconciliation of Net Income and Number of Shares Used in Computations of Basic and Diluted EPS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 1,103,000 | $ 1,019,000 | $ 2,457,000 | $ 2,323,000 |
Shares (denominator): | ||||
Basic weighted average common shares outstanding (in shares) | 14,732,173 | 16,695,059 | 14,962,606 | 17,190,073 |
Add: dilutive effect of common stock options (in shares) | 201,253 | 11,473 | 113,334 | |
Diluted weighted average common shares outstanding (in shares) | 14,933,426 | 16,706,532 | 15,075,940 | 17,190,073 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.16 | $ 0.14 |
Diluted (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.16 | $ 0.14 |
Note 10 - Activity of Busines36
Note 10 - Activity of Business Segments (Details Textual) | 9 Months Ended |
Sep. 30, 2017 | |
Number of Operating Segments | 3 |
Note 10 - Activity of Busines37
Note 10 - Activity of Business Segments - Consolidated Net Sales (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 12,049,000 | $ 11,779,000 | $ 34,082,000 | $ 36,334,000 |
Building Supply [Member] | Operating Segments [Member] | ||||
Net sales | 7,076,000 | 7,022,000 | 19,298,000 | 21,700,000 |
Disposable Protective Apparel [Member] | Operating Segments [Member] | ||||
Net sales | 3,845,000 | 3,698,000 | 10,914,000 | 11,147,000 |
Infection Control [Member] | Operating Segments [Member] | ||||
Net sales | $ 1,128,000 | $ 1,059,000 | $ 3,870,000 | $ 3,487,000 |
Note 10 - Activity of Busines38
Note 10 - Activity of Business Segments - Reconciliation of Total Segment Income to Total Consolidated Net Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated net income | $ 1,103,000 | $ 1,019,000 | $ 2,457,000 | $ 2,323,000 |
Provision for income taxes | 503,000 | 429,000 | 1,068,000 | 1,040,000 |
Operating Segments [Member] | ||||
Consolidated net income | 2,499,000 | 2,610,000 | 6,853,000 | 6,825,000 |
Operating Segments [Member] | Building Supply [Member] | ||||
Consolidated net income | 1,339,000 | 1,618,000 | 3,471,000 | 4,287,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ||||
Consolidated net income | 764,000 | 617,000 | 1,977,000 | 1,327,000 |
Operating Segments [Member] | Infection Control [Member] | ||||
Consolidated net income | 396,000 | 375,000 | 1,405,000 | 1,211,000 |
Corporate, Non-Segment [Member] | ||||
Consolidated net income | $ 893,000 | $ 1,162,000 | $ 3,328,000 | $ 3,462,000 |
Note 10 - Activity of Busines39
Note 10 - Activity of Business Segments - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Consolidated assets | $ 3,079,000 | $ 2,735,000 |
Operating Segments [Member] | ||
Consolidated assets | 2,523,000 | 2,694,000 |
Operating Segments [Member] | Building Supply [Member] | ||
Consolidated assets | 2,168,000 | 2,208,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ||
Consolidated assets | 341,000 | 346,000 |
Operating Segments [Member] | Infection Control [Member] | ||
Consolidated assets | 14,000 | 140,000 |
Corporate, Non-Segment [Member] | ||
Consolidated assets | $ 556,000 | $ 41,000 |
Note 11 - Related Party Trans40
Note 11 - Related Party Transactions (Details Textual) - Director [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Legal Services, Related Party [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 95,000 | $ 65,000 | $ 145,000 | |
Related Law Firm [Member] | ||||
Due to Related Parties | $ 163,000 |