Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INTRICON CORP | |
Entity Central Index Key | 88,790 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 6,869,013 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash | $ 332 | $ 667 | |
Restricted cash | 649 | 595 | |
Accounts receivable, less allowance for doubtful accounts of $235 at September 30, 2017 and $170 at December 31, 2016 | 6,853 | 7,289 | |
Inventories | 14,899 | 12,343 | |
Other current assets | 1,105 | 957 | |
Current assets of discontinued operations | 123 | ||
Total current assets | 23,838 | 21,974 | |
Machinery and equipment | 40,700 | 40,152 | |
Less: Accumulated depreciation | 34,412 | 33,546 | |
Net machinery and equipment | 6,288 | 6,606 | |
Goodwill | 10,555 | 10,555 | |
Intangible assets, net | 2,779 | 2,920 | |
Investment in partnerships | 1,468 | 146 | |
Other assets, net | 914 | 1,557 | |
Total assets | [1] | 45,842 | 43,758 |
Current liabilities: | |||
Current maturities of long-term debt | 2,411 | 2,346 | |
Accounts payable | 8,410 | 6,722 | |
Accrued salaries, wages and commissions | 2,831 | 2,413 | |
Other accrued liabilities | 2,830 | 1,914 | |
Liabilities of discontinued operations | 123 | ||
Total current liabilities | 16,482 | 13,518 | |
Long-term debt, less current maturities | 7,014 | 9,284 | |
Other postretirement benefit obligations | 468 | 501 | |
Accrued pension liabilities | 754 | 737 | |
Other long-term liabilities | 685 | 707 | |
Total liabilities | [1] | 25,403 | 24,747 |
Commitments and contingencies (note 11) | |||
Shareholders' equity: | |||
Common stock, $1.00 par value per share; 20,000 shares authorized; 6,860 and 6,820 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 6,860 | 6,820 | |
Additional paid-in capital | 22,140 | 21,383 | |
Accumulated deficit | (7,349) | (8,633) | |
Accumulated other comprehensive loss | (740) | (1,014) | |
Total shareholders' equity | 20,911 | 18,556 | |
Non-controlling interest | (472) | 455 | |
Total equity | 20,439 | 19,011 | |
Total liabilities and equity | $ 45,842 | $ 43,758 | |
[1] | Assets of Hearing Help Express (HHE), a consolidated variable interest entity, that can only be used to settle obligations of HHE were $6,408 at September 30, 2017 and $5,159 at December 31, 2016, respectively. Liabilities of HHE, for which creditors do not have recourse to the general credit of IntriCon, were $6,167 at September 30, 2017 and $3,833 at December 31, 2016, respectively. |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Accounts receivable, allowance for doubtful accounts | $ 235 | $ 170 | |
Common shares, par value | $ 1 | $ 1 | |
Common shares, shares authorized | 20,000,000 | 20,000,000 | |
Common shares, shares issued | 6,860,000 | 6,820,000 | |
Common shares, shares outstanding | 6,860,000 | 6,820,000 | |
Assets | [1] | $ 45,842 | $ 43,758 |
Liabilities | [1] | 25,403 | 24,747 |
Hearing Help Express (HHE) [Member] | |||
Assets | 6,408 | 5,159 | |
Liabilities | $ 6,167 | $ 3,833 | |
[1] | Assets of Hearing Help Express (HHE), a consolidated variable interest entity, that can only be used to settle obligations of HHE were $6,408 at September 30, 2017 and $5,159 at December 31, 2016, respectively. Liabilities of HHE, for which creditors do not have recourse to the general credit of IntriCon, were $6,167 at September 30, 2017 and $3,833 at December 31, 2016, respectively. |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Condensed Statements of Operations [Abstract] | ||||
Sales, net | $ 24,034 | $ 15,570 | $ 66,083 | $ 50,262 |
Cost of sales | 16,469 | 12,028 | 46,261 | 37,789 |
Gross profit | 7,565 | 3,542 | 19,822 | 12,473 |
Operating expenses: | ||||
Sales and marketing | 2,342 | 1,041 | 6,857 | 3,357 |
General and administrative | 2,698 | 2,221 | 7,961 | 6,570 |
Research and development | 1,047 | 1,076 | 3,312 | 3,562 |
Restructuring charges | 132 | |||
Total operating expenses | 6,087 | 4,338 | 18,130 | 13,621 |
Operating income (loss) | 1,478 | (796) | 1,692 | (1,148) |
Interest expense | (177) | (135) | (548) | (387) |
Other expense | (337) | (181) | (328) | (472) |
Income (loss) from continuing operations before income taxes and discontinued operations | 964 | (1,112) | 816 | (2,007) |
Income tax expense | 47 | 33 | 165 | 119 |
Income (loss) from continuing operations before discontinued operations | 917 | (1,145) | 651 | (2,126) |
Loss on sale of discontinued operations (Note 3) | (164) | |||
Loss from discontinued operations (Note 3) | (194) | (128) | (759) | |
Net income (loss) | 917 | (1,339) | 359 | (2,885) |
Less: Loss allocated to non-controlling interest | (186) | (35) | (925) | (106) |
Net income (loss) attributable to IntriCon shareholders | $ 1,103 | $ (1,304) | $ 1,284 | $ (2,779) |
Basic income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ 0.16 | $ (0.16) | $ 0.23 | $ (0.32) |
Discontinued operations | (0.03) | (0.04) | (0.12) | |
Net income (loss) per share: | 0.16 | (0.19) | 0.19 | (0.44) |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | 0.15 | (0.16) | 0.22 | (0.32) |
Discontinued operations | (0.03) | (0.04) | (0.12) | |
Net income (loss) per share: | $ 0.15 | $ (0.19) | $ 0.18 | $ (0.44) |
Average shares outstanding: | ||||
Basic | 6,853 | 6,796 | 6,836 | 6,287 |
Diluted | 7,251 | 6,796 | 7,179 | 6,287 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Condensed Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net income (loss) | $ 917 | $ (1,339) | $ 359 | $ (2,885) |
Interest rate swap, net of taxes of $0 | 3 | 26 | 18 | (15) |
Pension and postretirement obligations, net of taxes of $0 | 5 | 5 | 15 | 15 |
Foreign currency translation adjustment, net of taxes of $0 | 116 | (33) | 241 | (158) |
Comprehensive income (loss) | $ 1,041 | $ (1,341) | $ 633 | $ (3,043) |
Consolidated Condensed Stateme6
Consolidated Condensed Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Condensed Statements of Comprehensive Income (Loss) [Abstract] | ||||
Interest rate swap, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Pension and postretirement obligations, tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 359 | $ (2,885) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,659 | 1,543 |
Stock-based compensation | 634 | 506 |
Gain on disposition of property | (55) | |
Loss on sale of discontinued operations | 164 | |
Change in allowance for doubtful accounts | 65 | (68) |
Equity in loss of partnerships | 281 | 175 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 249 | 2,346 |
Inventories | (2,615) | 1,189 |
Other assets | (658) | (527) |
Accounts payable | 1,712 | (1,856) |
Accrued expenses | 1,228 | (954) |
Other liabilities | 62 | 12 |
Net cash provided by (used in) operating activities | 3,140 | (574) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (984) | (1,557) |
Investment in Soundperience and Other | (730) | (164) |
Net cash used in investing activities | (1,714) | (1,721) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 10,906 | 14,923 |
Repayments of long-term debt | (13,110) | (15,921) |
Proceeds from equity offering, net of offering costs | 3,678 | |
Proceeds from employee stock purchases and exercise of stock options | 164 | 83 |
Change in restricted cash | (85) | (31) |
Net cash provided by (used in) financing activities | (2,125) | 2,732 |
Effect of exchange rate changes on cash | 364 | (202) |
Net increase (decrease) in cash | (335) | 235 |
Cash, beginning of period | 667 | 369 |
Cash, end of period | $ 332 | $ 604 |
General
General | 9 Months Ended |
Sep. 30, 2017 | |
General [Abstract] | |
General | 1. General In the opinion of management, the accompanying consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly IntriCon Corporation's (“IntriCon” or the “Company”) consolidated financial position as of September 30, 201 7 and December 31, 2016 , the consolidated results of its operations for the three and nine months e nded September 30, 201 7 and 20 16 and for the cash flows for t he nine months ended September 30, 2017 and 2016 . Results of operations for the interim periods are not necessarily indicative of the results of operations expected for the full year or any other interim period. In December 2016, the Company’s board of directors approved plans to discontinue its cardiac diagnostic monitoring business. The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC. For all periods presented, the Company classified this business as discontinued operations, and, accordingly, has reclassified historical financial data presented herein. See Note 3. The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. On January 19, 2017, the Company announced that it had exercised its option to acquire the remaining 80 percent stake in HHE. The transaction is expected to close in the fourth quarter of 2017. The results of HHE were consolidated into the Company’s financial statements beginning October 31, 2016. The Company allocates income and losses to the noncontrolling interest based on current ownership percentage, however, as part of the closing, IntriCon will likely absorb a portion of the losses previously allocated to the majority owner. The amount of losses previously allocated to the majority owner that we may have to absorb could range $500,000 and $700,000 . Losses incurred by HHE to date include non-cash amortization, acquisition related costs and operating results, all of which are related to prior periods and have no future cash impact The Company notes that HHE’s pro forma financial results were not included for 2016 as the company was in bankruptcy for the majority of 2016 and as such was not reflective of the normal operations of HHE. In April 2017, the Company entered into an agreement to acquire a 49% stake in Soundperience for 1,200 Euros. As of September 30, 2017, the Company hold s a 16% stake in Soundperience, which will increase to 49% upon the completion of certain milestones and payment of the purchase price for that equity. As of September 30, 2017, the Company has an equity investment and advance in Soundperience of $1,255 . Soundperien ce has designed self-fitting hearing aid technology. The Company’s self-fitting hearing aid technology is being used in the German market today, most notably th r ough our Signison joint venture with the owner of Soundperience. Both Soundperience and Signison will be accounted for in the Company’s financial statements using the equity method. The Company has evaluated subsequent events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the consolidated financial statements. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Retirement Benefits – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, guidance that requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The rules related to the timing of when costs are recognized or how they are measured have not changed. This amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component will be eligible for capitalization in inventory and other assets. This guidance becomes effective January 1, 2018. Early adoption is permitted. The Company does not anticipate that the adoption of this new standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This new standard simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed on or after January 1, 2017. The Company does not anticipate that the adoption of this new standard will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force (the “Task Force”). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This update is effective for years beginning after December 31, 2018. The Company has restricted cash balances and anticipates that the adoption of this new standard will change the cash amounts and financing activities on its statement of cash flows on its consolidated financial statements. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures. In May 2014, the FASB issued new accounting guidance related to revenue recognition, ASC 606. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company has established a timeline related to the implementation of the standard and believes the timeline is sufficient to implement the new standard. We are currently assessing the impact on the Company’s consolidated financial statements. The FASB has issued ASU 2016-10 and ASU 2016-12, which are also related to the revenue recognition standard ASC 606. The Company will adopt the new provisions of this accounting standard at the beginning of fiscal year 2018. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 3. Discontinued Operations The following table shows the discontinued cardiac diagnostic monitoring business balance sheet as of December 31, 2016: December 31, 2016 Accounts receivable, net $ 123 Current assets of discontinued operations $ 123 Accounts payable 22 Accrued compensation and other liabilities 101 Current liabilities of discontinued operations $ 123 The following table shows the results of the cardiac diagnostic monitoring discontinued operations: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Sales, net $ - $ 445 $ 140 $ 987 Operating costs and expenses - (639) (268) (1,746) Net loss from discontinued operations - (194) (128) (759) The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC for a future revenue earn-out that was valued by the Company at $0 . The Company recorded a loss on the sale of $164 . The net loss was computed as follows: Accounts receivable, net $ 179 Accrued liabilities (15) Net assets sold 164 Fair value of consideration received - Loss on sale of discontinued operations, net of income taxes $ 164 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting and Geographical Information [Abstract] | |
Segment Reporting | 4. Segment Reporting The Company currently operates in two reportable segments: body-worn devices and hearing health direct-to-consumer. The nature of distribution and services has been deemed separately identifiable. Therefore, segment reporting has been applied. Income (loss) from operations is total net revenues less cost of sales and operating expenses. Identifiable assets by industry segment include assets directly identifiable with those operations. The accounting policies applied to determine segment information are the same as those described in the summary of significant accounting policies described in Note 1 to the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The Company evaluates the performance of each segment based on income and loss from continuing operations before income taxes. The following table summarizes data by industry segment: At and for the Three Months Ended September 30, 2017 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 22,271 $ 1,763 $ 24,034 Income (loss) from continuing operations 1,121 (204) 917 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 506 48 554 Capital expenditures 350 16 366 At and for the Nine Months Ended September 30, 2017 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 61,495 $ 4,588 $ 66,083 Income (loss) from continuing operations 1,736 (1,085) 651 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 1,500 159 1,659 Capital expenditures 836 148 984 |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting and Geographical Information [Abstract] | |
Geographic Information | 5. Geographic Information The geographical distribution of long-lived assets to geographical areas consisted of the following at: September 30, December 31, 2017 2016 United States $ 4,570 $ 4,640 Singapore 1,195 1,413 Other – primarily United Kingdom and Indonesia 523 553 Consolidated $ 6,288 $ 6,606 Long-lived assets consist of property and equipment. Excluded from long-lived assets are investments in partnerships, patents, license agreements and goodwill. The Company capitalizes long-lived assets pertaining to the production of specialized parts. These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted cash flows exceeds the carrying value of the assets. The geographical distribution of net sales to geographical areas for the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 United States $ 19,605 $ 11,201 $ 52,804 $ 35,154 Europe 2,317 2,706 7,102 8,523 Asia 1,740 1,380 5,541 5,918 All other countries 372 283 636 667 Consolidated $ 24,034 $ 15,570 $ 66,083 $ 50,262 Geographic net sales are allocated based on the location of the customer. For the three and nine months ended September 30, 2017, one customer accounted for 51% and 49% , respectively, of the Company’s consolidated net sales. For both the three and nine months ended September 30, 2016, one customer accounted for 38% and 39% , respectively, of the Company’s consolidated net sales. At September 30, 2017, two customers combined accounted for 23% of the Company’s consolidated accounts receivable. At December 31, 2016, two customers combined accounted for 31% of the Company’s consolidated accounts receivable. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventories [Abstract] | |
Inventories | 6 . Inventories Inventories consisted of the following at: Raw materials Work-in process Finished products and components Total September 30, 2017 Domestic $ 6,334 $ 1,577 $ 3,150 $ 11,061 Foreign 2,125 810 903 3,838 Total $ 8,459 $ 2,387 $ 4,053 $ 14,899 December 31, 2016 Domestic $ 5,731 $ 1,324 $ 2,609 $ 9,664 Foreign 1,751 284 644 2,679 Total $ 7,482 $ 1,608 $ 3,253 $ 12,343 |
Short And Long-Term Debt
Short And Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Short And Long-Term Debt [Abstract] | |
Short And Long-Term Debt | 7 . Short and Long-Term Debt Short and long-term debt is summarized as follows: September 30, December 31, 2017 2016 Domestic Asset-Based Revolving Credit Facility $ 1,755 $ 3,218 Note Payable 2,000 2,000 Foreign Overdraft and Letter of Credit Facility 1,256 1,243 Domestic Term-Loan 4,500 5,250 Unamortized Finance Costs (86) (81) Total Debt 9,425 11,630 Less: Current Maturities (2,411) (2,346) Total Long-Term Debt $ 7,014 $ 9,284 Domestic Credit Facilities The Company and its domestic subsidiaries are parties to a credit facility with The PrivateBank and Trust Company. The credit fa cility, as amended through September 30, 201 7, provides for: § a $9,000 revolving credit facility, with a $200 sub facility for letters of credit. Under the revolving credit facility, the availability of funds depends on a borrowing base composed of stated percentages of the Company’s eligible trade receivables and eligible inventory, and eligible equipment less a reserve; and § a term loan in the original amount of $6,000 . On March 9, 2017, the Company and its domestic subsidiary, IntriCon, Inc., entered into a Tenth Amendment to the Loan and Security Agreement and Waiver (the “Tenth Amendment”) with The PrivateBank and Trust Company. The Tenth Amendment, among other things: § amended the minimum EBITDA (as defined in the Loan and Security Agreement), funded debt to EBITDA ratio and fixed charge coverage ratio covenants; and § waived defaults in the funded debt to EBITDA ratio and fixed charge coverage ratio covenants as of December 31, 2016. All of the borrowings under this agreement have been characterized as either a current or long-term liability on our balance sheet in accordance with the repayment terms described more fully below. Weighted average interest on the revolving credit facility was 7.11% for the nine months ended September 30, 2017 and 4.82% for the year ended December 31, 2016. The outstanding balance of the revolving credit facility was $1,755 and $3,218 at September 30, 2017 and December 31, 2016, respectively. The total availability on the revolving credit facility was approximately $5,632 and $5,121 at September 30, 2017 and December 31, 2016, respectively. The outstanding principal balance of the term loan, as amended, is payable in quarterly installments of $250 . Any remaining principal and accrued interest is payable on February 28, 2019. IntriCon is also required to use 100% of the net cash proceeds of certain asset sales (excluding inventory and certain other dispositions), sale of capital securities or issuance of debt to pay down the term loan. The Company was in compliance with the financial covenan ts under the facility as of September 30, 2017. Foreign Credit Facility In addition to its domestic credit facilities, the Company’s wholly-owned subsidiary, IntriCon, PTE LTD., entered into an international senior secured credit agreement with Oversea-Chinese Banking Corporation Ltd. that provides for an asset based line of credit. Borrowings bear interest at a rate of .75% to 2.5% over the lender’s prevailing prime lending rate. Weighted average interest on the international credit facilities was 3.95 % and 3.50% for the nine months ended September 30, 2017 and the year ended December 31, 2016. The outstanding balance was $1,256 and $1,243 at September 30, 2017 and December 31, 2016, respectively. The total remaining availability on the international senior secured credit agreement was approximately $524 and $455 at September 30, 2017 and December 31, 2016 , respectively. Note Payable HHE has a $2,000 note payable to the party holding 80% of its equity interest. The note is secured by substantially all of the assets of HHE. The note is payable over 48 months in quarterly installments with interest at 5% per year, except that interest only will be paid in the first twelve months, with the deferred payments to be made at maturity. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Income taxes | 8 . Income Taxes Income tax expense for the three and nine months ended September 30, 2017 was $ 47 and $165 compared to $ 33 and $119, respectively, for the same periods in 2016. The expense was primarily due to foreign operations. The Company has net operating loss carryforwards for U.S. federal income tax purposes and, consequently, minimal federal or state benefit or expense from the domest ic operations was recognized as the deferred tax asset has a full valuation allowance. The following was the income (loss) before income taxes for each jurisdiction in which the Company has operations for the three and nine months ended September 30, 201 7 and 201 6 . Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 United States $ 1,008 $ (1,250) $ 1,049 $ (2,664) Singapore 245 212 168 779 Indonesia 20 18 54 54 United Kingdom (184) (191) (595) (490) Germany (125) 99 140 314 Income (loss) before income taxes and discontinued operations $ 964 $ (1,112) $ 816 $ (2,007) |
Shareholders' Equity And Stock-
Shareholders' Equity And Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Shareholders' Equity And Stock-Based Compensation | 9 . Shareholders’ Equity and Stock-based Compensation The Company has a 2006 Equity Incentive Plan and a 2015 Equity Incentive Plan. The 2015 Equity Incentive Plan replaced the 2006 Equity Incentive Plan and new grants may not be made under the 2006 Plan. Under the 2015 Equity Incentive Plan, the Company may grant stock options, stock awards, stock appreciation rights, restricted stock units and other equity-based awards, although no such awards, other than stock options, had been granted as of September 30, 2017. Under all awards, the terms are fixed on the grant date. Generally, the exercise price of stock options equals the market price of the Company’s stock on the date of the grant. Options under the plans generally vest over three years, and have a maximum term of 10 years. The Compensation Committee of the Board of Directors has established a non-employee directors’ stock fee election program, referred to as the director’s program, and a non-employee director and executive officer stock purchase program, referred to as the management purchase program, as an award under the 2015 Plan. There were no shares purchased under the director program or the management purchase program during the three and nine months ended September 30, 2017 and 2016. Stock option act ivity during the nine months ended September 30 , 2017 was as follows: Weighted-average Aggregate Number of Shares Exercise Price Intrinsic Value Outstanding at December 31, 2016 1,385 $ 6.54 Options forfeited or cancelled (5) 7.36 Options granted 222 7.36 Options exercised (69) 5.50 Outstanding at September 30, 2017 1,533 $ 6.71 $ 8,566 Exercisable at September 30, 2017 1,118 $ 6.52 $ 6,539 Available for future grant at December 31, 2016 404 Available for future grant at September 30, 2017 189 The number of shares available for future grants at September 30, 201 7 does not include a total of up to 1,084 shares subject to options outstanding under the 2006 Equity Incentive Plan which will become available for grant under the 2015 Equity Incentive Plan in the event of the expiration , cancellation or surrender of such options. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of subjective assumptions, including the expected stock price volatility. Because the Company’s options have characteristics different from those of traded options, in the opinion of management, the existing models do not necessarily provide a reliable single measure of the fair value of its options. The weighted average exercise price of options granted was $7.05 and $7.36 for options granted during the three and nine months ended September 30, 201 7. The weighted average exercise price of options granted was $7.14 for options granted during the nine months ended September 30 , 2016 . The Company calculates expected volatility for stock options and awards using the Company’s historical volatility. The Company currently estimates a zero percent forfeiture rate for stock options, but will continue to review this estimate in future periods. The risk-free rates for the expected terms of the stock options and awards are based on the U.S. Treasury yield curve in effect at the time of grant. The weighted average remaining contractual life of options exercisable at September 30, 2017 was 4.02 years . The Company recorded $209 and $634 of non-cash stock option expense for the three and nine months ended September 30, 201 7, respectively . The Company recorded $159 and $506 of non-cash stock option expense for the three and nine months ended September 30, 2016, respectively . As of September 30, 201 7 , there was $1,198 of total unrecognized compen sation costs related to non-vested awards that are expected to be recognized over a weighted-average period of 1.95 years. The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, through September 30, 2017, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 3 and 10 shares purchased under the plan for the three and nine months ended September 30, 201 7, respectively, and a total of 5 and 14 shares purchased for the three and nine months ended September 30 , 2016, respectively . |
Income (Loss) Per Share
Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Income (Loss) Per Share [Abstract] | |
Income (Loss) Per Share | 10 . Income (Loss) Per Share The following table presents a reconciliation between basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Numerator: Income (loss) from continuing operations before discontinued operations $ 917 $ (1,145) $ 651 $ (2,126) Loss on sale of discontinued operations - - (164) - Loss from discontinued operations, net of income taxes - (194) (128) (759) Net income (loss) 917 (1,339) 359 (2,885) Less: loss allocated to non-controlling interest (186) (35) (925) (106) Net income (loss) attributable to shareholders $ 1,103 $ (1,304) $ 1,284 $ (2,779) Denominator: Basic – weighted shares outstanding 6,853 6,796 6,836 6,287 Weighted shares assumed upon exercise of stock options 398 - 343 - Diluted – weighted shares outstanding 7,251 6,796 7,179 6,287 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.16 $ (0.16) $ 0.23 $ (0.32) Discontinued operations - (0.03) (0.04) (0.12) Net income (loss) per share: $ 0.16 $ (0.19) $ 0.19 $ (0.44) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.15 $ (0.16) $ 0.22 (0.32) Discontinued operations - (0.03) (0.04) (0.12) Net income (loss) per share: $ 0.15 $ (0.19) $ 0.18 $ (0.44) The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share was based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted earnings per share. Individual components of basic and diluted income (loss) per share may not sum to the total income (loss) per share due to rounding. Excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2016 were outstanding in the money options to purchase approximately 73 and 161 common shares, respectively, because the effect would have been anti-dilutive due to the Company’s net loss in the period. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2017 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 11 . Legal Proceedings The Company is a defendant along with a number of other parties in lawsuits alleging that plaintiffs have or may have contracted asbestos-related diseases as a result of exposure to asbestos products or equipment containing asbestos sold by one or more named defendants. These lawsuits relate to the discontinued heat technologies segment which was sold in March 2005. Due to the non-informative nature of the complaints, the Company does not know whether any of the complaints state valid claims against the Company. Certain insurance carriers have informed the Company that the primary policies for the period August 1, 1970-1978 have been exhausted and that the carriers will no longer provide defense and insurance coverage under those policies. However, the Company has other primary and excess insurance policies that the Company believes afford coverage for later years. Some of these other primary insurers have accepted defense and insurance coverage for these suits, and some of them have either ignored the Company’s tender of defense of these cases, or have denied coverage, or have accepted the tenders but asserted a reservation of rights and/or advised the Company that they need to investigate further. Because settlement payments are applied to all years a litigant was deemed to have been exposed to asbestos, the Company believes that it will have funds available for defense and insurance coverage under the non-exhausted primary and excess insurance policies. However, unlike the older policies, the more recent policies have deductible amounts for defense and settlements costs that the Company will be required to pay; accordingly, the Company expects that its litigation costs will increase in the future. Further, many of the policies covering later years (approximately 1984 and thereafter) have exclusions for any asbestos products or operations, and thus do not provide insurance coverage for asbestos-related lawsuits. The Company does not believe that the asserted exhaustion of some of the primary insurance coverage for the 1970-1978 period will have a material adverse effect on its financial condition, liquidity, or results of operations. Management believes that the number of insurance carriers involved in the defense of the suits, and the significant number of policy years and policy limits under which these insurance carriers are insuring the Company, make the ultimate disposition of these lawsuits not material to the Company's consolidated financial position or results of operations. The Company’s former French subsidiary, Selas SAS, filed for insolvency in France. The Company may be subject to additional litigation or liabilities as a result of the French insolvency proceeding, including liabilities under guarantees aggregating approximately $460 . The Company is also involved in other lawsuits arising in the normal course of business. While it is not possible to predict with certainty the outcome of these matters, management is of the opinion that the disposition of these lawsuits and claims will not materially affect our consolidated financial position, liquidity or results of operations. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 12 . Related-Party Transactions One of the Company’s subsidiaries leases office and factory space from a partnership consisting of one p resent and two former officers of the subsidiary, including Mark Gorder, a member of the Company’s Board of Directors and the President and Chief Executive Officer of the Company. The subsidiary is required to pay all real estate taxes and operating expenses. The total base rent expense, real estate taxes and other charges incurred under the lease were approximately $124 and $372 for the three and nine months ended September 30, 201 7, respectively, and approximately $121 and $364 for the three and nine months ended September 30, 2016, respectively. The term of the lease runs to January 31, 2022. The partnership sold the property to an unaffiliated third party on October 13, 2017. The Company uses the law firm of Blank Rome LLP for legal services. A partner of that firm is the son-in-law of the Chairman of the Company’s Board of Directors. For the three and nine months ended September 30, 201 7 , the Company paid that firm approximately $29 and $94 , respectively, for legal services and costs. For the three and nine months ended September 30 , 2016 , the Company paid that firm approximately $50 and $183 , respectively, for legal services and costs. The Chairman of our Board of Directors is considered independent under applicable Nasdaq and Securities and Exchange Commission rules because (i) no payments were made to the Chairman or the partner directly in exchange for the services provided by the law firm and (ii) the amounts paid to the law firm did not exceed the thresholds contained in the Nasdaq standards. Furthermore, the aforementioned partner does not provide any legal services to the Company and is not involved in billing matters. The Company has a 50% ownership in Signison , which is a German based hearing health company . Signiso n owes the Company a note receivable balance of $465 as of September 30, 2017. |
Revenue By Market
Revenue By Market | 9 Months Ended |
Sep. 30, 2017 | |
Revenue By Market [Abstract] | |
Revenue By Market | 13 . Revenue by Market The following tables set forth, for the periods indicated, net revenue by market: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Medical $ 14,840 $ 8,814 $ 39,904 $ 27,832 Hearing Health 5,816 4,927 17,086 16,722 Hearing Health Direct-to-Consumer 1,763 - 4,588 - Professional Audio Communications 1,615 1,829 4,505 5,708 Total Revenue $ 24,034 $ 15,570 $ 66,083 $ 50,262 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Retirement Benefits – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, guidance that requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The rules related to the timing of when costs are recognized or how they are measured have not changed. This amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component will be eligible for capitalization in inventory and other assets. This guidance becomes effective January 1, 2018. Early adoption is permitted. The Company does not anticipate that the adoption of this new standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This new standard simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed on or after January 1, 2017. The Company does not anticipate that the adoption of this new standard will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force (the “Task Force”). The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This update is effective for years beginning after December 31, 2018. The Company has restricted cash balances and anticipates that the adoption of this new standard will change the cash amounts and financing activities on its statement of cash flows on its consolidated financial statements. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures. In May 2014, the FASB issued new accounting guidance related to revenue recognition, ASC 606. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company has established a timeline related to the implementation of the standard and believes the timeline is sufficient to implement the new standard. We are currently assessing the impact on the Company’s consolidated financial statements. The FASB has issued ASU 2016-10 and ASU 2016-12, which are also related to the revenue recognition standard ASC 606. The Company will adopt the new provisions of this accounting standard at the beginning of fiscal year 2018. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet | The following table shows the discontinued cardiac diagnostic monitoring business balance sheet as of December 31, 2016: December 31, 2016 Accounts receivable, net $ 123 Current assets of discontinued operations $ 123 Accounts payable 22 Accrued compensation and other liabilities 101 Current liabilities of discontinued operations $ 123 The following table shows the results of the cardiac diagnostic monitoring discontinued operations: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Sales, net $ - $ 445 $ 140 $ 987 Operating costs and expenses - (639) (268) (1,746) Net loss from discontinued operations - (194) (128) (759) The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC for a future revenue earn-out that was valued by the Company at $0 . The Company recorded a loss on the sale of $164 . The net loss was computed as follows: Accounts receivable, net $ 179 Accrued liabilities (15) Net assets sold 164 Fair value of consideration received - Loss on sale of discontinued operations, net of income taxes $ 164 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting and Geographical Information [Abstract] | |
Summary Of Data By Industry Segment | At and for the Three Months Ended September 30, 2017 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 22,271 $ 1,763 $ 24,034 Income (loss) from continuing operations 1,121 (204) 917 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 506 48 554 Capital expenditures 350 16 366 At and for the Nine Months Ended September 30, 2017 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 61,495 $ 4,588 $ 66,083 Income (loss) from continuing operations 1,736 (1,085) 651 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 1,500 159 1,659 Capital expenditures 836 148 984 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting and Geographical Information [Abstract] | |
Geographical Distribution Of Long-Lived Assets, Net | September 30, December 31, 2017 2016 United States $ 4,570 $ 4,640 Singapore 1,195 1,413 Other – primarily United Kingdom and Indonesia 523 553 Consolidated $ 6,288 $ 6,606 |
Geographical Distribution Of Net Sales | Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 United States $ 19,605 $ 11,201 $ 52,804 $ 35,154 Europe 2,317 2,706 7,102 8,523 Asia 1,740 1,380 5,541 5,918 All other countries 372 283 636 667 Consolidated $ 24,034 $ 15,570 $ 66,083 $ 50,262 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total September 30, 2017 Domestic $ 6,334 $ 1,577 $ 3,150 $ 11,061 Foreign 2,125 810 903 3,838 Total $ 8,459 $ 2,387 $ 4,053 $ 14,899 December 31, 2016 Domestic $ 5,731 $ 1,324 $ 2,609 $ 9,664 Foreign 1,751 284 644 2,679 Total $ 7,482 $ 1,608 $ 3,253 $ 12,343 |
Short And Long-Term Debt (Table
Short And Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Short And Long-Term Debt [Abstract] | |
Summary Of Short And Long-Term Debt | September 30, December 31, 2017 2016 Domestic Asset-Based Revolving Credit Facility $ 1,755 $ 3,218 Note Payable 2,000 2,000 Foreign Overdraft and Letter of Credit Facility 1,256 1,243 Domestic Term-Loan 4,500 5,250 Unamortized Finance Costs (86) (81) Total Debt 9,425 11,630 Less: Current Maturities (2,411) (2,346) Total Long-Term Debt $ 7,014 $ 9,284 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Income (Loss) Before Income Taxes By Jurisdiction | Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 United States $ 1,008 $ (1,250) $ 1,049 $ (2,664) Singapore 245 212 168 779 Indonesia 20 18 54 54 United Kingdom (184) (191) (595) (490) Germany (125) 99 140 314 Income (loss) before income taxes and discontinued operations $ 964 $ (1,112) $ 816 $ (2,007) |
Shareholders' Equity And Stoc28
Shareholders' Equity And Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Schedule Of Stock Option Activity | Weighted-average Aggregate Number of Shares Exercise Price Intrinsic Value Outstanding at December 31, 2016 1,385 $ 6.54 Options forfeited or cancelled (5) 7.36 Options granted 222 7.36 Options exercised (69) 5.50 Outstanding at September 30, 2017 1,533 $ 6.71 $ 8,566 Exercisable at September 30, 2017 1,118 $ 6.52 $ 6,539 Available for future grant at December 31, 2016 404 Available for future grant at September 30, 2017 189 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income (Loss) Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Numerator: Income (loss) from continuing operations before discontinued operations $ 917 $ (1,145) $ 651 $ (2,126) Loss on sale of discontinued operations - - (164) - Loss from discontinued operations, net of income taxes - (194) (128) (759) Net income (loss) 917 (1,339) 359 (2,885) Less: loss allocated to non-controlling interest (186) (35) (925) (106) Net income (loss) attributable to shareholders $ 1,103 $ (1,304) $ 1,284 $ (2,779) Denominator: Basic – weighted shares outstanding 6,853 6,796 6,836 6,287 Weighted shares assumed upon exercise of stock options 398 - 343 - Diluted – weighted shares outstanding 7,251 6,796 7,179 6,287 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.16 $ (0.16) $ 0.23 $ (0.32) Discontinued operations - (0.03) (0.04) (0.12) Net income (loss) per share: $ 0.16 $ (0.19) $ 0.19 $ (0.44) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.15 $ (0.16) $ 0.22 (0.32) Discontinued operations - (0.03) (0.04) (0.12) Net income (loss) per share: $ 0.15 $ (0.19) $ 0.18 $ (0.44) |
Revenue By Market (Tables)
Revenue By Market (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Revenue By Market [Abstract] | |
Schedule Of Net Revenue By Market | Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Medical $ 14,840 $ 8,814 $ 39,904 $ 27,832 Hearing Health 5,816 4,927 17,086 16,722 Hearing Health Direct-to-Consumer 1,763 - 4,588 - Professional Audio Communications 1,615 1,829 4,505 5,708 Total Revenue $ 24,034 $ 15,570 $ 66,083 $ 50,262 |
General (Details)
General (Details) € in Thousands | Jan. 19, 2017 | Sep. 30, 2017EUR (€) | Sep. 30, 2017USD ($) |
Hearing Help Express (HHE) [Member] | |||
Acquisition of remaining percentage stake | 80.00% | ||
Soundperience GmbH [Member] | |||
Ownership interest | 16.00% | ||
Purchase price | € | € 1,200 | ||
Equity method investment | $ 1,255,000 | ||
Soundperience GmbH [Member] | Scenario, Plan [Member] | |||
Ownership interest | 49.00% | ||
Maximum [Member] | Hearing Help Express (HHE) [Member] | |||
Majority owner losses required to be reclassified | $ 700,000 | ||
Minimum [Member] | Hearing Help Express (HHE) [Member] | |||
Majority owner losses required to be reclassified | $ 500,000 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | Feb. 17, 2017 | Sep. 30, 2017 |
Loss on sale of discontinued operations, net of income taxes | $ 164,000 | |
Cardiac Diagnostic Monitoring Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Future revenue earn-out | $ 0 | |
Loss on sale of discontinued operations, net of income taxes | $ 164,000 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Discontinued Operations Balance Sheet) (Details) - USD ($) $ in Thousands | Feb. 17, 2017 | Dec. 31, 2016 |
Current assets of discontinued operations | $ 123 | |
Current liabilities of discontinued operations | 123 | |
Discontinued Operations, Disposed of by Sale [Member] | Cardiac Diagnostic Monitoring Business [Member] | ||
Accounts receivable, net | $ 179 | 123 |
Current assets of discontinued operations | 123 | |
Accounts payable | 22 | |
Accrued compensation and other liabilities | 101 | |
Current liabilities of discontinued operations | $ 123 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - Cardiac Diagnostic Monitoring Business [Member] - Discontinued Operations, Disposed of by Sale [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales, net | $ 445 | $ 140 | $ 987 |
Operating costs and expenses | (639) | (268) | (1,746) |
Net loss from discontinued operations | $ (194) | $ (128) | $ (759) |
Discontinued Operations (Sche35
Discontinued Operations (Schedule Of Loss On Sale Of Discontinued Operations) (Details) - USD ($) $ in Thousands | Feb. 17, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Loss on sale of discontinued operations, net of income taxes | $ 164 | ||
Discontinued Operations, Disposed of by Sale [Member] | Cardiac Diagnostic Monitoring Business [Member] | |||
Accounts receivable, net | $ 179 | $ 123 | |
Accrued liabilities | (15) | ||
Net assets sold | 164 | ||
Fair value of consideration received | |||
Loss on sale of discontinued operations, net of income taxes | $ 164 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017segment | |
Segment Reporting and Geographical Information [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Summary Of D
Segment Reporting (Summary Of Data By Industry Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Revenue, net | $ 24,034 | $ 15,570 | $ 66,083 | $ 50,262 | |
Income (loss) from continuing operations | 917 | $ (1,145) | 651 | (2,126) | |
Identifiable assets (excluding goodwill) | 35,287 | 35,287 | |||
Goodwill | 10,555 | 10,555 | $ 10,555 | ||
Depreciation and amortization | 554 | 1,659 | 1,543 | ||
Capital expenditures | 366 | 984 | $ 1,557 | ||
Body Worn Devices [Member] | |||||
Revenue, net | 22,271 | 61,495 | |||
Income (loss) from continuing operations | 1,121 | 1,736 | |||
Identifiable assets (excluding goodwill) | 29,883 | 29,883 | |||
Goodwill | 9,551 | 9,551 | |||
Depreciation and amortization | 506 | 1,500 | |||
Capital expenditures | 350 | 836 | |||
Hearing Health Direct-to-Consumer [Member] | |||||
Revenue, net | 1,763 | 4,588 | |||
Income (loss) from continuing operations | (204) | (1,085) | |||
Identifiable assets (excluding goodwill) | 5,404 | 5,404 | |||
Goodwill | 1,004 | 1,004 | |||
Depreciation and amortization | 48 | 159 | |||
Capital expenditures | $ 16 | $ 148 |
Geographic Information (Narrati
Geographic Information (Narrative) (Details) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Net Sales [Member] | One Customer [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 1 | 1 | 1 | 1 | |
Percentage of sales and/or receivables | 51.00% | 38.00% | 49.00% | 39.00% | |
Accounts Receivable [Member] | Two Customers [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 2 | 2 | |||
Percentage of sales and/or receivables | 23.00% | 31.00% |
Geographic Information (Geograp
Geographic Information (Geographical Distribution Of Long-Lived Assets, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 6,288 | $ 6,606 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 4,570 | 4,640 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 1,195 | 1,413 |
Other - primarily United Kingdom and Indonesia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 523 | $ 553 |
Geographic Information (Geogr40
Geographic Information (Geographical Distribution Of Net Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 24,034 | $ 15,570 | $ 66,083 | $ 50,262 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 19,605 | 11,201 | 52,804 | 35,154 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 2,317 | 2,706 | 7,102 | 8,523 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 1,740 | 1,380 | 5,541 | 5,918 |
All Other Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 372 | $ 283 | $ 636 | $ 667 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 8,459 | $ 7,482 |
Work-in process | 2,387 | 1,608 |
Finished products and components | 4,053 | 3,253 |
Total | 14,899 | 12,343 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 6,334 | 5,731 |
Work-in process | 1,577 | 1,324 |
Finished products and components | 3,150 | 2,609 |
Total | 11,061 | 9,664 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 2,125 | 1,751 |
Work-in process | 810 | 284 |
Finished products and components | 903 | 644 |
Total | $ 3,838 | $ 2,679 |
Short And Long-Term Debt (Narra
Short And Long-Term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Short And Long-Term Debt Instrument [Line Items] | |||||
Interest expense | $ 177,000 | $ 135,000 | $ 548,000 | $ 387,000 | |
International Credit [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Credit facility, outstanding balance | 1,256,000 | 1,256,000 | $ 1,243,000 | ||
Credit facility, available borrowing capacity | 524,000 | 524,000 | 455,000 | ||
Domestic Term-Loan [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Loan amount | 6,000,000 | 6,000,000 | |||
Quarterly installments | $ 250,000 | ||||
Percentage of proceeds from certain asset sales required to pay down term loan | 100.00% | ||||
Debt | 4,500,000 | $ 4,500,000 | 5,250,000 | ||
Note Payable [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Debt | 2,000,000 | 2,000,000 | $ 2,000,000 | ||
Revolving Credit Facility [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 9,000,000 | $ 9,000,000 | |||
Weighted average interest rate of debt instruments | 7.11% | 7.11% | 4.82% | ||
Credit facility, outstanding balance | $ 1,755,000 | $ 1,755,000 | $ 3,218,000 | ||
Credit facility, available borrowing capacity | 5,632,000 | 5,632,000 | $ 5,121,000 | ||
Letters Of Credit [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 200,000 | $ 200,000 | |||
International Credit Facility [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Weighted average interest rate of debt instruments | 3.95% | 3.95% | 3.50% | ||
International Credit Facility [Member] | Minimum [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Interest rate of debt instruments | 0.75% | 0.75% | |||
International Credit Facility [Member] | Maximum [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Interest rate of debt instruments | 2.50% | 2.50% | |||
Hearing Help Express (HHE) [Member] | Note Payable [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Debt | $ 2,000,000 | $ 2,000,000 | |||
Debt instrument, frequency of periodic payment, months | P48M | ||||
Ownership percentage held by third party | 80.00% | ||||
Notes payable, interest rate | 5.00% | 5.00% | |||
Interest only payment term | 12 months |
Short And Long-Term Debt (Summa
Short And Long-Term Debt (Summary Of Short And Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Unamortized finance costs | $ (86) | $ (81) |
Total Debt | 9,425 | 11,630 |
Less: Current Maturities | (2,411) | (2,346) |
Total long-term debt | 7,014 | 9,284 |
Domestic Asset-Based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,755 | 3,218 |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 2,000 | 2,000 |
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,256 | 1,243 |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 4,500 | $ 5,250 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Abstract] | ||||
Income tax expense | $ 47 | $ 33 | $ 165 | $ 119 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes By Jurisdiction) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Income (loss) from continuing operations before income taxes and discontinued operations | $ 964 | $ (1,112) | $ 816 | $ (2,007) |
United States IRS [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income (loss) before income taxes, United States | 1,008 | (1,250) | 1,049 | (2,664) |
Singapore Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income (loss) before income taxes, Foreign | 245 | 212 | 168 | 779 |
Indonesia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income (loss) before income taxes, Foreign | 20 | 18 | 54 | 54 |
United Kingdom [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income (loss) before income taxes, Foreign | (184) | (191) | (595) | (490) |
Germany [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income (loss) before income taxes, Foreign | $ (125) | $ 99 | $ 140 | $ 314 |
Shareholders' Equity And Stoc46
Shareholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of shares of common stock for which awards can be granted | 189,000 | 189,000 | 404,000 | ||
Weighted average fair value of options granted | $ 7.05 | $ 7.36 | $ 7.14 | ||
Estimated forfeiture rate of stock options | 0.00% | ||||
Weighted average remaining contractual life of options exercisable, years | 4 years 7 days | ||||
Stock option expense | $ 209 | $ 159 | $ 634 | $ 506 | |
Unrecognized compensation costs related to non-vested awards | $ 1,198 | $ 1,198 | |||
Unrecognized compensation costs related to non-vested awards, recognition period | 1 year 11 months 12 days | ||||
Proceeds from equity offering, net of offering costs | $ 3,678 | ||||
2006 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of shares of common stock for which awards can be granted | 1,084,000 | 1,084,000 | |||
2006 & 2015 Equity Incentive Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of options under equity incentive plan | 3 years | ||||
Management Purchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares purchased for award | 0 | 0 | 0 | 0 | |
Director Purchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares purchased for award | 0 | 0 | 0 | 0 | |
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares purchased for award | 3,000 | 5,000 | 10,000 | 14,000 | |
Maximum [Member] | 2006 & 2015 Equity Incentive Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of options | 10 years | ||||
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares approved under purchase plan | 300,000 | 300,000 |
Shareholders' Equity And Stoc47
Shareholders' Equity And Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Number of Shares, Outstanding | 1,385 |
Number of Shares, Options forfeited or cancelled | (5) |
Number of Shares, Options granted | 222 |
Number of Shares, Options exercised | (69) |
Number of Shares, Outstanding | 1,533 |
Number of Shares, Exercisable | 1,118 |
Number of Shares, Available for future grant at beginning of period | 404 |
Number of Shares, Available for future grant at end of period | 189 |
Weighted-average Exercise Price, Outstanding | $ / shares | $ 6.54 |
Weighted-average Exercise Price, Options forfeited or cancelled | $ / shares | 7.36 |
Weighted-average Exercise Price, Options granted | $ / shares | 7.36 |
Weighted-average Exercise Price, Options exercised | $ / shares | 5.50 |
Weighted-average Exercise Price, Outstanding | $ / shares | 6.71 |
Weighted-average Exercise Price, Exercisable | $ / shares | $ 6.52 |
Aggregate Intrinsic Value, Outstanding | $ | $ 8,566 |
Aggregate Intrinsic Value, Exercisable | $ | $ 6,539 |
Income (Loss) Per Share (Narrat
Income (Loss) Per Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Income (Loss) Per Share [Abstract] | ||
Securities excluded from computation of diluted income per share | 73 | 161 |
Income (Loss) Per Share (Reconc
Income (Loss) Per Share (Reconciliation Between Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income (Loss) Per Share [Abstract] | ||||
Income (loss) from continuing operations before discontinued operations | $ 917 | $ (1,145) | $ 651 | $ (2,126) |
Loss on sale of discontinued operations | (164) | |||
Loss from discontinued operations, net of income taxes | (194) | (128) | (759) | |
Net income (loss) | 917 | (1,339) | 359 | (2,885) |
Less: Loss allocated to non-controlling interest | (186) | (35) | (925) | (106) |
Net income (loss) attributable to IntriCon shareholders | $ 1,103 | $ (1,304) | $ 1,284 | $ (2,779) |
Basic - weighted shares outstanding | 6,853 | 6,796 | 6,836 | 6,287 |
Weighted shares assumed upon exercise of stock options | 398 | 343 | ||
Diluted - weighted shares outstanding | 7,251 | 6,796 | 7,179 | 6,287 |
Continuing operations | $ 0.16 | $ (0.16) | $ 0.23 | $ (0.32) |
Discontinued operations | (0.03) | (0.04) | (0.12) | |
Net income (loss) per share: | 0.16 | (0.19) | 0.19 | (0.44) |
Continuing operations | 0.15 | (0.16) | 0.22 | (0.32) |
Discontinued operations | (0.03) | (0.04) | (0.12) | |
Net income (loss) per share: | $ 0.15 | $ (0.19) | $ 0.18 | $ (0.44) |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Legal Proceedings [Abstract] | |
Selas SAS, Liabilities | $ 460 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total base rent expense, real estate taxes and other charges | $ 124 | $ 121 | $ 372 | $ 364 |
Legal services and costs | $ 29 | $ 50 | $ 94 | $ 183 |
Signison [Member] | ||||
Ownership interest | 50.00% | 50.00% | ||
Note receivable | $ 465 | $ 465 |
Revenue By Market (Schedule Of
Revenue By Market (Schedule Of Net Revenue By Market)(Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue, Major Customer [Line Items] | ||||
Total Revenue | $ 24,034 | $ 15,570 | $ 66,083 | $ 50,262 |
Medical [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 14,840 | 8,814 | 39,904 | 27,832 |
Hearing Health [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 5,816 | 4,927 | 17,086 | 16,722 |
Hearing Health - Direct To Customer [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 1,763 | 4,588 | ||
Professional Audio Communications [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | $ 1,615 | $ 1,829 | $ 4,505 | $ 5,708 |