Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 6,964,458 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 381 | $ 373 |
Restricted cash | 675 | 644 |
Accounts receivable, less allowance for doubtful accounts of $483 at March 31, 2018 and $332 at December 31, 2017 | 11,249 | 9,052 |
Inventories | 14,862 | 13,708 |
Contract assets | 4,766 | 2,979 |
Other current assets | 1,380 | 1,544 |
Total current assets | 33,313 | 28,300 |
Machinery and equipment | 34,636 | 40,124 |
Less: Accumulated depreciation | 27,089 | 32,949 |
Net machinery and equipment | 7,547 | 7,175 |
Goodwill | 10,808 | 10,808 |
Intangible assets, net | 2,701 | 2,740 |
Investment in partnerships | 1,931 | 1,616 |
Other assets, net | 3,702 | 3,835 |
Total assets | 60,002 | 54,474 |
Current liabilities: | ||
Current maturities of long-term debt | 2,063 | 2,040 |
Accounts payable | 12,966 | 10,423 |
Accrued salaries, wages and commissions | 2,503 | 3,113 |
Other accrued liabilities | 4,286 | 3,739 |
Total current liabilities | 21,818 | 19,315 |
Long-term debt, less current maturities | 10,948 | 9,321 |
Other postretirement benefit obligations | 444 | 455 |
Accrued pension liabilities | 795 | 772 |
Other long-term liabilities | 3,114 | 3,172 |
Total liabilities | 37,119 | 33,035 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $1.00 par value, authorized 1,000 shares; none issued and outstanding | ||
Common stock, $1.00 par value per share; 20,000 shares authorized; 6,944 and 6,900 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 6,944 | 6,900 |
Additional paid-in capital | 22,138 | 21,581 |
Accumulated deficit | (5,287) | (6,056) |
Accumulated other comprehensive loss | (647) | (733) |
Total shareholders' equity | 23,148 | 21,692 |
Non-controlling interest | (265) | (253) |
Total equity | 22,883 | 21,439 |
Total liabilities and equity | $ 60,002 | $ 54,474 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Consolidated Condensed Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 483 | $ 332 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 6,944,000 | 6,900,000 |
Common stock, shares outstanding | 6,944,000 | 6,900,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Condensed Statements of Operations [Abstract] | ||
Sales, net | $ 25,363 | $ 21,215 |
Cost of sales | 16,951 | 15,381 |
Gross profit | 8,412 | 5,834 |
Operating expenses: | ||
Sales and marketing | 2,840 | 2,311 |
General and administrative | 3,061 | 2,558 |
Research and development | 1,159 | 1,153 |
Total operating expenses | 7,060 | 6,022 |
Operating income (loss) | 1,352 | (188) |
Interest expense | (188) | (182) |
Other income (expense) | (220) | 56 |
Income (loss) from continuing operations before income taxes and discontinued operations | 944 | (314) |
Income tax expense | 187 | 64 |
Income (loss) from continuing operations before discontinued operations | 757 | (378) |
Loss on sale of discontinued operations (Note 3) | (164) | |
Loss from discontinued operations (Note 3) | (113) | |
Net income (loss) | 757 | (655) |
Less: Loss allocated to non-controlling interest | (12) | (385) |
Net income (loss) attributable to IntriCon shareholders | $ 769 | $ (270) |
Basic income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | $ 0.11 | $ 0 |
Discontinued operations | (0.04) | |
Net income (loss) per share: | 0.11 | (0.04) |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | 0.10 | 0 |
Discontinued operations | (0.04) | |
Net income (loss) per share: | $ 0.10 | $ (0.04) |
Average shares outstanding: | ||
Basic | 6,929 | 6,826 |
Diluted | 7,843 | 6,826 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Condensed Statements of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $ 757 | $ (655) |
Interest rate swap, net of taxes of $0 | 4 | 12 |
Pension and postretirement obligations, net of taxes of $0 | 5 | 5 |
Foreign currency translation adjustment, net of taxes of $0 | 78 | 45 |
Comprehensive income (loss) | $ 844 | $ (593) |
Consolidated Condensed Stateme6
Consolidated Condensed Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Condensed Statements of Comprehensive Income (Loss) [Abstract] | ||
Interest rate swap, tax | $ 0 | $ 0 |
Pension and postretirement obligations, tax | 0 | 0 |
Foreign currency translation adjustment, tax | $ 0 | $ 0 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 757 | $ (655) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 654 | 562 |
Stock-based compensation | 333 | 218 |
Loss on sale of discontinued operations | 164 | |
Change in allowance for doubtful accounts | 151 | (3) |
Equity in loss of partnerships | 116 | 12 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,407) | (888) |
Inventories | (1,183) | (553) |
Other assets | (1,648) | (631) |
Accounts payable | 2,262 | 1,670 |
Accrued expenses | (316) | (531) |
Other liabilities | 26 | 51 |
Net cash used in operating activities | (1,255) | (584) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (485) | (273) |
Investment in partnerships | (164) | (94) |
Net cash used in investing activities | (649) | (367) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 6,106 | 4,520 |
Repayments of long-term borrowings | (4,550) | (3,920) |
Proceeds from employee stock purchases and exercise of stock options | 267 | 60 |
Change in restricted cash | (55) | (21) |
Net cash provided by financing activities | 1,768 | 639 |
Effect of exchange rate changes on cash | 144 | 25 |
Net increase (decrease) in cash | 8 | (287) |
Cash, beginning of period | 373 | 667 |
Cash, end of period | 381 | $ 380 |
Noncash Transactions: | ||
Investment in partnerships through liability incurred | 308 | |
Acquisition of property, plant and equipment in accounts payable | $ 305 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 201 8 and December 31, 2017 , and the consolidated results of its operations and cash flows for the three months ended March 31, 201 8 and 20 17 . 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. 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. In December 2017, the Company acquired the remaining 80 -percent stake in Hearing Help Express, Inc. (referred to as “Hearing Help Express” or “HHE”), a direct-to-consumer mail order hearing aid provider, for $650 in cash, repayment of $1,833 in debt to HHE’s 80% holder and an earn-out. The results of HHE were consolidated into the Company’s financial statements beginning October 31, 2016. Prior to the acquisition of 100% ownership in December 2017, the Company allocated income and losses to the noncontrolling interest based on ownership percentage. In January 2018, the Company closed on the additional 33% stake in Soundperience, bringing its total ownership to 49% and its total investment to 1,500 Euros consisting of an equity investment and license agreement. Soundperience has designed self-fitting hearing aid technology. The Company does not anticipate the Soundperience business will have a notable financial impact on operating results, but rather will provide the Company with exclusive access in the United States to critical software technology. Soundperience’s self-fitting hearing aid technology is being used in the German market today, most notably through Signison, the Company’s joint venture with the majority owner of Soundperience. Soundperience and Signison are 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 financial statements. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
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. This guidance 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 became effective January 1, 2018. The adoption of this new standard did not have a material impact on the Company’s 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. The Company is currently evaluating the effect this new standard will have on the Company’s 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 but anticipates it will be required to record additional lease liabilities and corresponding rights to use assets. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 3. Discontinued Operations The following table shows the results of the cardiac diagnostic monitoring discontinued operation s: Three Months Ended March 31, March 31, 2018 2017 Sales, net $ - $ 140 Operating costs and expenses - (253) Loss from discontinued operations - (113) 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 |
Changes In Accounting Policies
Changes In Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Changes In Accounting Policies [Abstract] | |
Changes In Accounting Policies | 4 . Changes in Accounting Policies The Company’s significant accounting policies are detailed in "Note 1: Summary of Significant Accounting Policies" of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 "Topic 606. Revenue from Contracts with Customers” (Topic 606). Topic 606 supersedes the revenue recognition requirements previously set forth in the Accounting Standards Codification (ASC) Topic 605 “Revenue Recognition,” and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted Topic 606 with a date of initial application of January 1, 2018. The Company applied Topic 606 retrospectively using the practical expedient in ASC 606-10-65-1(f)(3 ). The Company notes that all previously reported historical amounts are adjusted for the impact of ASC 606. Changes to the Company’s significant accounting policies as a result of adopting Topic 606 are discussed below: Revenue recognition - Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including noncash consideration, consideration paid or payable to customers and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer, as further described below under “ Performance obligations ”. Individual promised goods and services in a contract are considered a performance obligation and accounted for separately if the individual good or service is distinct, i.e., the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated stand-alone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs under ASC 340-40 or other applicable guidance are met. Cost of revenues consist primarily of direct labor, manufacturing overhead, materials and components. The Company excludes from revenue taxes collected from a customer that are assessed by a governmental authority and imposed on and concurrent with a specific revenue-producing transaction. The Company includes shipping and handling fees in sales. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet as further described below under “ Receivables, net ”, “ Contract assets ” and “ Contract liabilities ”. When more than one party is involved in providing goods or services to a customer, an entity determines whether it is a principal or an agent in these transactions by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis if it controls a promised good or service before transferring that good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. Performance obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation in proportion to the standalone selling price for each and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s various performance obligations and the timing or method of revenue recognition in each of the Company’s markets are discussed below: Medical market - Customer orders from the medical market consist of a specified number of assembled and customized parts that the customer further integrates into their production process to produce market ready products. Customer orders do not include additional follow-on goods or services. With the exception of prompt payment discounts, the transaction price for medical market products is the invoiced amount, as variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. All of the Company’s products manufactured for the medical market are designed to each customer's specifications, do not have an alternative use and cannot be sold or redirected by the Company to others. The Company has an enforceable right to payment for any finished or in-process units, including a reasonable margin, if the customer terminates the contract for reasons other than the Company’s failure to perform as promised. Control of these units is deemed to transfer to the customer over time during the manufacturing process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Each order is for a series of distinct units that comprise a single performance obligation. Consequently, the transaction price is recognized as revenue over time based on actual costs incurred in the manufacturing process to date relative to total expected costs to produce all ordered units. Medical market products are invoiced when shipped and paid within normal commercial terms. The Company records a contract asset for revenue recognized over time in the production process for customized products that have not been shipped or invoiced to the customer. Hearing health market - Customer orders from the hearing health market consist of hearing aid devices and related accessories. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. With the exception of prompt payment discounts, the transaction price for the hearing health market s products is the invoiced amount, as variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Nearly all of the Company’s products manufactured for the hearing health market could be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery, and therefore have an alternative use to the Company. Generally, revenue is recognized upon the transfer of control of the products which is based on shipment terms; however, in certain cases the amount of shipment is adjusted for expected future returns and related consideration received. Professional audio market - The Company sells body-worn audio devices with application in the aviation, fire, law enforcement, safety and military markets as well as for performers and production staff in the music and stage performance markets. Each unit on a customer’s purchase order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit is separately identifiable from the others because one does not significantly affect, modify or customize another. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting the transaction price are not present. Invoiced amounts are deemed to approximate standalone selling price, such that a relative standalone selling price allocation between performance obligations is not required. The products manufactured for the professional audio market could be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery and therefore have an alternative use to the Company. Transfer of control of the goods, and revenue recognition, occurs at the point in time of shipment or delivery of the products to the customer depending on the applicable shipping terms. Professional audio market products are billed when shipped and paid within normal commercial terms. Hearing health direct-to-consumer (DTC) market - The hearing health DTC business distributes hearing aids and related accessories to the end consumer and is the Company’s only business market that generates revenue from sales to the end consumer. The Company also sells a limited number of service plans for the hearing aids. Each product or service is a distinct performance obligation as each is independently useful either on its own or together with other products procured from the Company or other vendors and each product or service is separately identifiable from the others because one does not significantly affect, modify or customize another. Invoiced amounts are deemed to approximate standalone selling price, therefore a relative standalone selling price allocation between performance obligations is not required. The hearing health DTC business offers a 60 -day trial period to the end consumer for hearing aids , during which customers can return the hearing aids for a full refund or exchange for a different hearing aid. The Company invoices for the hearing aids and recognizes revenue only after completion of the 60-day trial period, when the customer’s commitment to the arrangement is deemed to exist and an enforceable right to payment is established. The transaction price for hearing aid accessories and service plans is the invoiced amount, as variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Hearing aid accessories are billed and revenue is recognized upon shipment to the customer. Invoices are paid within normal commercial terms. Annual service plans are billed along with the hearing aid at the end of the 60-day trial period or upon renewal of the service plan, and paid within normal commercial terms. As the customer consumes the benefits of the service plan relatively evenly over the plan term, revenue for service plans is recognized on a straight-line basis commencing at the end of the trial period. Receivables, net – Excluding the hearing health direct-to- consumer market , amounts recorded in receivables, net, on the consolidated balance sheet include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. An allowance for doubtful accounts is maintained to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. For the hearing health direct-to-consumer market, receivables, net, include amounts billed and currently due from customers and amounts to become due from customers on trial programs. The amounts due are stated at their net estimated realizable value. An allowance for doubtful accounts is maintained to provide for the estimated amount of receivables that will not be collected. Contract A ssets - Contract assets primarily include unbilled amounts recognized as revenue for customized products manufactured for the medical market. The customized goods have no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company begins revenue recognition when these goods enter the manufacturing process and continues based on a measure of progress toward completion using a cost-to-cost input method that considers labor and overhead costs incurred and materials used to date in the manufacturing process relative to total expected production costs. Given the relatively short duration of the production process, contract assets are classified as current. Contract assets are reclassified to accounts receivable upon shipment of and invoicing for the products, at which point the right to consideration becomes unconditional. Sales C ommissions - Sales commissions paid to sales representatives are eligible for capitalization as they are incremental costs that would not have been incurred without entering into a specific sales arrangement and are recoverable through the expected margin on the transaction. The company has elected to apply the practical expedient provided by ASC 340-40-25-4 and recognize the incremental costs of obtaining contracts as an expense when incurred, as the amortization period of the assets that would have otherwise been recognized is one year or less. These costs are included in sales and marketing expenses on the consolidated statements of operations . Product Warranty - The Company offers warranties on various products and services. These warranties are assurance type warranties not sold on a standalone basis, and therefore are not considered distinct performance obligations. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. |
Significant Changes Due To Topi
Significant Changes Due To Topic 606 | 3 Months Ended |
Mar. 31, 2018 | |
Significant Changes Due To Topic 606 [Abstract] | |
Significant Changes Due To Topic 606 | 5. Significant Changes Due to Topic 606 Sales of Customized Medical Products - The primary factor impacting the timing of the Company’s reported net income (loss) in the financial statements as a result of the adoption of Topic 606 is the acceleration of revenue and associated cost of sales recognized from the sale of customized medical products. For sales of these products, the Company previously recognized revenue at a point in time when the products were completed and shipped to the customer. Under Topic 606, if control of the products is transferred to the customer over the manufacturing process and the criteria for over time revenue recognition are otherwise met, revenue is recognized as products are manufactured utilizing an appropriate measure of progress toward satisfaction of the performance obligation. T he Company’s contracts with customers for the production of customized medical products meet the criteria for over time revenue recognition ; therefore, the Company utilizes an input method based on actual costs incurred in the manufacturing process to date relative to total expected production costs as a measure of progress toward transfer of control of the products to the customer and recognizes revenue on that basis. Amounts recognized as revenue but not yet shipped or billed to the customer are recorded as contract assets. See Note 4 for further discussion. Principal vs. Agent Role in Sales under Supply Arrangement - The Company has determined that the nature of its promise to a third-party supplier is a performance obligation to provide the integrated hearing aid products to its customers and that the associated sales contracts meet the control criteria necessary to qualify the Company as the principal in the transactions. As a result, gross reporting of revenues for sales under the supply arrangement is appropriate under Topic 606 and the profit sharing amount due to the third party is reported as cost of sales. Impacts on financial statements Previously reported amounts for sales, cost of sales, contract assets and contract liabilities have been retrospectively adjusted to provide amounts comparable to the reporting under Topic 606. The following tables summarize the effects of adopting this accounting standard on the Company’s unaudited Consolidated Financial Statements Consolidated Statement of Operations: Three Months Ended March 31, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended March 31, 2017, as adjusted Sales, net $ 20,088 $ 1,127 $ 21,215 Cost of sales 14,412 969 15,381 Gross profit 5,676 158 5,834 Operating expenses: Sales and marketing 2,311 - 2,311 General and administrative 2,558 - 2,558 Research and development 1,153 - 1,153 Total operating expenses 6,022 - 6,022 Operating income (loss) (346) 158 (188) Interest expense (182) - (182) Other income 56 - 56 Income (loss) from continuing operations before income taxes and discontinued operations (472) 158 (314) Income tax expense 64 - 64 Income (loss) from continuing operations before discontinued operations (536) 158 (378) Loss on sale of discontinued operations (Note 3) (164) - (164) Loss from discontinued operations (Note 3) (113) - (113) Net income (loss) (813) 158 (655) Less: Loss allocated to non-controlling interest (385) - (385) Net income (loss) attributable to IntriCon shareholders $ (428) $ 158 $ (270) Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ (0.02) $ 0.02 $ 0.00 Discontinued operations (0.04) - $ (0.04) Net income (loss) per share: $ (0.06) $ 0.02 $ (0.04) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ (0.02) $ 0.02 $ 0.00 Discontinued operations (0.04) - (0.04) Net income (loss) per share: $ (0.06) $ 0.02 $ (0.04) Average shares outstanding: Basic 6,826 6,826 6,826 Diluted 6,826 6,826 6,826 Consolidated Statement of Comprehensive Income (Loss): Three Months Ended March 31, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended March 31, 2017, as adjusted Net income (loss) $ (813) $ 158 $ (655) Consolidated Statement of Cash Flows: Three Months Ended March 31, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended March 31, 2017, as adjusted Net income (loss) $ (813) $ 158 $ (655) Inventories (905) 352 (553) Other current assets (121) (510) (631) Prior Year Consolidated Balance Sheet: December 31, 2017, as reported Effect of Adoption of ASC 606 December 31, 2017, as adjusted Inventories $ 15,397 $ (1,689) $ 13,708 Contract assets - 2,979 2,979 Other accrued liabilities 3,224 515 3,739 Accumulated deficit (6,831) 775 (6,056) In addition, the cumulative impact to the Company’s retained earnings at January 1, 2017 was $518 . Transaction price allocated to remaining performance obligations - The Company’s remaining performance obligations as of March 31, 2018 primarily include uncompleted production of customized products for which control transfers to the customer over time, certain uncompleted product sales for orders received and future obligations under service plan arrangements recognized over time. The Company has elected to apply the practical expedient provided in ASC 606-10-50-14 and not disclose information about the amount of transaction price allocated to these remaining performance obligations as they all have original expected durations of one year or less. The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers. March 31, 2018 December 31, 2017, as adjusted Receivables, included in "Accounts receivable, less allowance for doubtful accounts" $ 11,249 $ 9,052 Contract assets, included in other current assets 4,766 2,979 Contract liabilities, included in other current liabilities 515 - Significant changes in contract assets and contract liabilities during the period are as follows: For the three months ended March 31, 2018 Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of beginning contract liabilities to revenue, as a result of performance obligations satisfied $ - $ 298 Cash received in advance and not recognized as revenue - (312) Reclassification of beginning contract assets to accounts receivable, as a result of right to consideration becoming unconditional - - Contract assets recognized, net of reclassification to accounts receivable 1,787 Cumulative catch-up from a change in the timeframe for recognition of revenue arising from a contract liability - - Increase as a result of cumulative catch-up adjustment arising from changes in the estimate of costs incurred relative to total amounts projected, excluding amounts transferred to receivables during the period. - Net Change $ 1,787 $ (14) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Geographic Information [Abstract] | |
Segment Reporting | 6. 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 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 and incorporated by reference from “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 1 to the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 201 7. 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 March 31, 2018 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 23,572 $ 1,791 $ 25,363 Income (loss) from continuing operations 1,210 (453) 757 Identifiable assets (excluding goodwill) 42,121 6,640 48,761 Goodwill 9,551 1,257 10,808 Depreciation and amortization 604 50 654 Capital expenditures 475 10 485 At and for the Three Months Ended March 31, 2017 (as adjusted) Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 19,799 $ 1,416 $ 21,215 Income (loss) from continuing operations 75 (453) (378) Identifiable assets (excluding goodwill) 30,416 4,036 34,452 Goodwill 9,551 1,004 10,555 Depreciation and amortization 495 67 562 Capital expenditures 213 60 273 |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Geographic Information [Abstract] | |
Geographic Information | 7 . Geographic Information The geographical distribution of long-lived assets to geographical areas consisted of the following at: March 31, December 31, 2018 2017 United States $ 5,834 $ 5,407 Singapore 1,205 1,254 All other 508 514 Consolidated $ 7,547 $ 7,175 Long-lived assets consist of property and equipment. Excluded from long-lived assets are investments in partnerships, patents, license agreements, intangible assets 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 months ended March 31, 201 8 and 201 7 were as follows: Three Months Ended Net Sales to Geographical Areas March 31, 2018 March 31, 2017 (as adjusted) United States $ 20,459 $ 16,650 Europe 2,278 2,478 Asia 2,468 1,910 All other 158 177 Consolidated $ 25,363 $ 21,215 Geographic net sales are allocated based on the location of the customer. For the three months ended March 31, 201 8 , one customer accounted for 54% of the Company’s consolidated net sales. For the three months ended March 31, 2017, one customer accounted for 45 % of the Company’s consolidated net sales. At March 31, 2018, two customers combined accounted for 39% of the Company’s consolidated accounts receivable. At December 31, 2017, two customers combined accounted for 33% of the Company’s consolidated accounts receivable. At March 31, 2018, one customer combined accounted for 83% of the Company’s consolidated contract assets. At December 31, 2017, one customer combined accounted for 62% of the Company’s consolidated contract assets. |
Investment In Partnerships
Investment In Partnerships | 3 Months Ended |
Mar. 31, 2018 | |
Investment In Partnerships [Abstract] | |
Investment In Partnerships | 8 . I nvestment in Partnerships Investment in partnerships consisted of the followin g: March 31, December 31, 2018 2017 Investment in Soundperience $ 1,196 $ 842 Investment in Signison 482 498 Other 253 276 Total $ 1,931 $ 1,616 As of March 31, 201 8 , the Company held a 49% ownership interest in Soundperience. In January 2018, the Company acquired an additional 33% stake in Soundperience. Soundperience is accounted for in the Company’s financial statements using the equity method as of January 31, 2018 . Prior to this time period the investment was accounted for under the cost method. The Company’s investment in Soundperience exceeded the underlying interest in net equity of the Company. As a result, the Company assigned the excess investment to related intangible assets, and includes the amortization of those intangibles within the equity in the income (losses) of Soundperience, which are included in other income (expenses) in the consolidated statements of operations. Soundperience’s income (loss) in earnings is immaterial for the periods presented. The Company is finalizing the impact of Soundperience and the investment in the second quarter of 2018. The Company has a 50% stake in Signison as of March 31, 201 8 . Signison is accounted for in the Company’s financial statements using the equity method. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventories [Abstract] | |
Inventories | 9 . Inventories Inventories consisted of the following at: Raw materials Work-in process Finished products and components Total March 31, 2018 Domestic $ 7,660 $ 2,107 $ 1,360 $ 11,127 Foreign 2,143 601 991 3,735 Total $ 9,803 $ 2,708 $ 2,351 $ 14,862 Decemr 31, 2017 (as adjusted) Domestic $ 6,924 $ 1,791 $ 1,366 $ 10,081 Foreign 2,258 514 855 3,627 Total $ 9,182 $ 2,305 $ 2,221 $ 13,708 |
Short And Long-Term Debt
Short And Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Short And Long-Term Debt [Abstract] | |
Short And Long-Term Debt | 10 . Short and Long-Term Debt Short and long-term debt is summarized as follows: March 31, December 31, 2018 2017 Domestic asset-based revolving credit facility $ 5,865 $ 4,000 Capital expenditure loan facility - - Foreign overdraft and letter of credit facility 1,253 1,250 Domestic term loan 6,000 6,250 Unamortized finance costs (107) (139) Total debt 13,011 11,361 Less: current maturities (2,063) (2,040) Total long-term debt $ 10,948 $ 9,321 D omestic Credit Facilities The Company and its domestic subsidiaries are parties to a credit facility with CIBC Bank USA (formerly known as The PrivateBank and Trust Company). The credit facility, as amended through March 31, 2018, 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; § a $2,500 capital expenditure loan facility under which the Company at its election, can draw up to $2,500 for qualifying capital expenditures over th e period ending December 15, 2018 , with monthly amortization commencing after such time; and § a term loan in the original amount of $6,500 . The credit facility matures on December 15, 2022. 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 5.26% for the three months ended March 31, 2018 and 5.51% for the year ended December 31, 2017. The total availability on the revolving credit facility was approximately $3,135 and $5,000 at March 31, 201 8 and December 31, 201 7 , 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 December 15, 2022. 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 covenants under the facility as of March 31, 201 8 . 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 4.26% and 3.87% for the three months ended March 31, 2018 and the year ended December 31, 2017, respectively. The total remaining availability on the international senior secured credit agreement was approximately $571 and $545 at March 31, 201 8 and December 31, 201 7, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income taxes | 11 . Income Taxes Income tax expense for the three months ended March 31 , 2018 was $ 187 compared to $ 64 for the same period in 2017. The expense for the three months ended March 31, 2018 and 2017, was due to both domestic and foreign operations. The Company has net operating loss carryforwards for U.S. federal income tax purposes, however, due to the new tax legislation , there are limitations on the use of certain of the carryforwards . The following was the income (loss) before income taxes for each jurisdiction in which the Company has operations for the three months ended March 31, 201 8 and 2017 . Three Months Ended March 31, 2018 March 31, 2017 (as adjusted) United States $ 840 $ (229) Singapore 248 (93) Indonesia 21 16 United Kingdom (236) (125) Germany 71 117 Income (loss) before income taxes $ 944 $ (314) |
Shareholders' Equity And Stock-
Shareholders' Equity And Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Shareholders' Equity And Stock-Based Compensation | 12. 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 (“RSUs”) and other equity-based awards. Under all awards, the terms are fixed on the grant date. The Company granted 87 RSUs in the first quarter of 2018. The closing price of the Company’s common stock on the date of grant was $20.25 . The RSUs vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant at which time the units are unrestricted and become common stock. The Company also has granted stock options under the plans. Options granted under the plans generally vest over three years and have a maximum term of 10 years. Stock award activity as of and during the three months ended March 31, 2018 was as follows: Outstanding Awards Weighted-average Aggregate Stock Options RSUs Total Exercise Price (a) Intrinsic Value Outstanding at December 31, 2017 1,453 - 1,453 $ 5.95 Forfeited, cancelled or expired (18) - (18) 7.93 Granted - 87 87 - Exercised (45) - (45) 6.55 Outstanding at March 31, 2018 1,390 87 1,477 $ 5.62 $ 21,233 Exercisable at March 31, 2018 1,056 - 1,056 $ 5.57 $ 15,248 Available for future grant at December 31, 2017 251 Available for future grant at March 31, 2018 197 (a) The weighted average exercise price calculation does not include outstanding RSUs The number of shares available for future grants at March 31, 2018 does not include a total of up to 886 shares subject to options outstanding under the 2006 plan as of March 31, 201 8 , 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. The weighted average fair value of options granted was $ 3.98 for options granted during the three months ended March 31, 201 7 . 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 opti ons . The risk-free rates for the expected terms of the stock options are based on the U.S. Treasury yield curve in effect at the time of grant. The weighted average remaining contractual life of options outstanding and exercisable was 5.84 years and 4.62 years as of March 31, 2018. The Company recorded $ 333 of non-cash stock compensation expense for the three months ended March 31, 201 8 . The Company recorded $ 218 of non-cash stock compensation expense for the three months ended March 31, 2017. As of March 31, 2018 , there was $1,097 and $1,623 of total unrecognized stock compensation costs related to non-vested stock option and RSU awards , respectively, that are expected to be recognized over a weighted-average period of 1.93 and 2.77 years. The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, through March 31, 2018 , provides that a maximum of 300 shares may be sold under the Purchase Plan. There were a total of 3 shares purchased under the plan for the three months ended March 31, 201 8 and a total of 4 shares purchased for the three months ended March 31, 201 7 . |
Income (Loss) Per Share
Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Income (Loss) Per Share [Abstract] | |
Income (Loss) Per Share | 13 . Income (loss) Per Share The following table presents a reconciliation between basic and diluted earnings per share: Three Months Ended March 31, 2018 March 31, 2017 (as adjusted) Numerator: Income (loss) from continuing operations before income taxes and discontinued operations $ 757 $ (378) Loss on sale of discontinued operations - (164) Loss from discontinued operations, net of income taxes - (113) Net income (loss) 757 (655) Less: loss allocated to non-controlling interest (12) (385) Net income (loss) attributable to shareholders $ 769 $ (270) Denominator: Basic – weighted shares outstanding 6,929 6,826 Weighted shares assumed upon exercise of stock options 914 - Diluted – weighted shares outstanding 7,843 6,826 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.11 $ 0.00 Discontinued operations - $ (0.04) Net income (loss) per share: $ 0.11 $ (0.04) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.10 $ 0.00 Discontinued operations - $ (0.04) Net income (loss) per share: $ 0.10 $ (0.04) 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 and unvested restricted stock units 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 months ended March 31, 2017 were outstanding in the money options to purchase approximately 294 common shares because the effect would have been anti-dilutive due to the Company’s net loss in the period. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2018 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 14 . 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 $480 . 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 | 3 Months Ended |
Mar. 31, 2018 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 15 . Related-Party Transactions 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 months ended March 31, 2018 , the Company paid that firm approximately $ 103 for legal services and costs. For the three months ended March 31, 201 7 , the Company paid that firm approximately $72 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. |
Revenue By Market
Revenue By Market | 3 Months Ended |
Mar. 31, 2018 | |
Revenue By Market [Abstract] | |
Revenue By Market | 16 . Revenue by Market In the following table, revenue is disaggregated by market and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments . See Note 7, Geographic Information for revenue disaggregated by geographical market. Timing of revenue recognition for the three months ended March 31, 2018: Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical $ - $ 15,933 $ 15,933 Hearing Health 5,810 - 5,810 Professional Audio Communications 1,829 - 1,829 Hearing Health DTC Segment: Hearing Health DTC 1,791 - 1,791 Total Revenue $ 9,430 $ 15,933 $ 25,363 Timing of revenue recognition for the three months ended March 31, 2017 (as adjusted): Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical $ - $ 12,180 $ 12,180 Hearing Health 6,237 - 6,237 Professional Audio Communications 1,382 - 1,382 Hearing Health DTC Segment: - Hearing Health DTC 1,416 - 1,416 Total Revenue $ 9,035 $ 12,180 $ 21,215 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 7 . Subsequent Events None noted |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. This guidance 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 became effective January 1, 2018. The adoption of this new standard did not have a material impact on the Company’s 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. The Company is currently evaluating the effect this new standard will have on the Company’s 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 but anticipates it will be required to record additional lease liabilities and corresponding rights to use assets. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cardiac Diagnostic Monitoring Business [Member] | |
Summary Of Balance Sheet And Results Of Discontinued Operations | The following table shows the results of the cardiac diagnostic monitoring discontinued operation s: Three Months Ended March 31, March 31, 2018 2017 Sales, net $ - $ 140 Operating costs and expenses - (253) Loss from discontinued operations - (113) 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 |
Significant Changes Due To To27
Significant Changes Due To Topic 606 (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Changes Due To Topic 606 [Abstract] | |
Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Financial Statements | The following tables summarize the effects of adopting this accounting standard on the Company’s unaudited Consolidated Financial Statements Consolidated Statement of Operations: Three Months Ended March 31, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended March 31, 2017, as adjusted Sales, net $ 20,088 $ 1,127 $ 21,215 Cost of sales 14,412 969 15,381 Gross profit 5,676 158 5,834 Operating expenses: Sales and marketing 2,311 - 2,311 General and administrative 2,558 - 2,558 Research and development 1,153 - 1,153 Total operating expenses 6,022 - 6,022 Operating income (loss) (346) 158 (188) Interest expense (182) - (182) Other income 56 - 56 Income (loss) from continuing operations before income taxes and discontinued operations (472) 158 (314) Income tax expense 64 - 64 Income (loss) from continuing operations before discontinued operations (536) 158 (378) Loss on sale of discontinued operations (Note 3) (164) - (164) Loss from discontinued operations (Note 3) (113) - (113) Net income (loss) (813) 158 (655) Less: Loss allocated to non-controlling interest (385) - (385) Net income (loss) attributable to IntriCon shareholders $ (428) $ 158 $ (270) Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ (0.02) $ 0.02 $ 0.00 Discontinued operations (0.04) - $ (0.04) Net income (loss) per share: $ (0.06) $ 0.02 $ (0.04) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ (0.02) $ 0.02 $ 0.00 Discontinued operations (0.04) - (0.04) Net income (loss) per share: $ (0.06) $ 0.02 $ (0.04) Average shares outstanding: Basic 6,826 6,826 6,826 Diluted 6,826 6,826 6,826 Consolidated Statement of Comprehensive Income (Loss): Three Months Ended March 31, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended March 31, 2017, as adjusted Net income (loss) $ (813) $ 158 $ (655) Consolidated Statement of Cash Flows: Three Months Ended March 31, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended March 31, 2017, as adjusted Net income (loss) $ (813) $ 158 $ (655) Inventories (905) 352 (553) Other current assets (121) (510) (631) Prior Year Consolidated Balance Sheet: December 31, 2017, as reported Effect of Adoption of ASC 606 December 31, 2017, as adjusted Inventories $ 15,397 $ (1,689) $ 13,708 Contract assets - 2,979 2,979 Other accrued liabilities 3,224 515 3,739 Accumulated deficit (6,831) 775 (6,056) |
Summary of Information about Receivables, Contracts Assets, and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers. March 31, 2018 December 31, 2017, as adjusted Receivables, included in "Accounts receivable, less allowance for doubtful accounts" $ 11,249 $ 9,052 Contract assets, included in other current assets 4,766 2,979 Contract liabilities, included in other current liabilities 515 - Significant changes in contract assets and contract liabilities during the period are as follows: For the three months ended March 31, 2018 Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of beginning contract liabilities to revenue, as a result of performance obligations satisfied $ - $ 298 Cash received in advance and not recognized as revenue - (312) Reclassification of beginning contract assets to accounts receivable, as a result of right to consideration becoming unconditional - - Contract assets recognized, net of reclassification to accounts receivable 1,787 Cumulative catch-up from a change in the timeframe for recognition of revenue arising from a contract liability - - Increase as a result of cumulative catch-up adjustment arising from changes in the estimate of costs incurred relative to total amounts projected, excluding amounts transferred to receivables during the period. - Net Change $ 1,787 $ (14) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Geographic Information [Abstract] | |
Summary Of Data By Industry Segment | At and for the Three Months Ended March 31, 2018 Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 23,572 $ 1,791 $ 25,363 Income (loss) from continuing operations 1,210 (453) 757 Identifiable assets (excluding goodwill) 42,121 6,640 48,761 Goodwill 9,551 1,257 10,808 Depreciation and amortization 604 50 654 Capital expenditures 475 10 485 At and for the Three Months Ended March 31, 2017 (as adjusted) Body Worn Devices Hearing Health Direct-to-Consumer Total Revenue, net $ 19,799 $ 1,416 $ 21,215 Income (loss) from continuing operations 75 (453) (378) Identifiable assets (excluding goodwill) 30,416 4,036 34,452 Goodwill 9,551 1,004 10,555 Depreciation and amortization 495 67 562 Capital expenditures 213 60 273 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting, Geographic Information [Abstract] | |
Geographical Distribution Of Long-Lived Assets, Net | March 31, December 31, 2018 2017 United States $ 5,834 $ 5,407 Singapore 1,205 1,254 All other 508 514 Consolidated $ 7,547 $ 7,175 |
Geographical Distribution Of Net Sales | Three Months Ended Net Sales to Geographical Areas March 31, 2018 March 31, 2017 (as adjusted) United States $ 20,459 $ 16,650 Europe 2,278 2,478 Asia 2,468 1,910 All other 158 177 Consolidated $ 25,363 $ 21,215 |
Investment In Partnerships (Tab
Investment In Partnerships (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment In Partnerships [Abstract] | |
Investments in Partnerships | March 31, December 31, 2018 2017 Investment in Soundperience $ 1,196 $ 842 Investment in Signison 482 498 Other 253 276 Total $ 1,931 $ 1,616 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total March 31, 2018 Domestic $ 7,660 $ 2,107 $ 1,360 $ 11,127 Foreign 2,143 601 991 3,735 Total $ 9,803 $ 2,708 $ 2,351 $ 14,862 Decemr 31, 2017 (as adjusted) Domestic $ 6,924 $ 1,791 $ 1,366 $ 10,081 Foreign 2,258 514 855 3,627 Total $ 9,182 $ 2,305 $ 2,221 $ 13,708 |
Short And Long-Term Debt (Table
Short And Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Short And Long-Term Debt [Abstract] | |
Summary Of Short And Long-Term Debt | March 31, December 31, 2018 2017 Domestic asset-based revolving credit facility $ 5,865 $ 4,000 Capital expenditure loan facility - - Foreign overdraft and letter of credit facility 1,253 1,250 Domestic term loan 6,000 6,250 Unamortized finance costs (107) (139) Total debt 13,011 11,361 Less: current maturities (2,063) (2,040) Total long-term debt $ 10,948 $ 9,321 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income (Loss) Before Income Taxes For Each Jurisdiction | Three Months Ended March 31, 2018 March 31, 2017 (as adjusted) United States $ 840 $ (229) Singapore 248 (93) Indonesia 21 16 United Kingdom (236) (125) Germany 71 117 Income (loss) before income taxes $ 944 $ (314) |
Shareholders' Equity And Stoc34
Shareholders' Equity And Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Summary Of Award Activity | Outstanding Awards Weighted-average Aggregate Stock Options RSUs Total Exercise Price (a) Intrinsic Value Outstanding at December 31, 2017 1,453 - 1,453 $ 5.95 Forfeited, cancelled or expired (18) - (18) 7.93 Granted - 87 87 - Exercised (45) - (45) 6.55 Outstanding at March 31, 2018 1,390 87 1,477 $ 5.62 $ 21,233 Exercisable at March 31, 2018 1,056 - 1,056 $ 5.57 $ 15,248 Available for future grant at December 31, 2017 251 Available for future grant at March 31, 2018 197 (a) The weighted average exercise price calculation does not include outstanding RSUs |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income (Loss) Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Three Months Ended March 31, 2018 March 31, 2017 (as adjusted) Numerator: Income (loss) from continuing operations before income taxes and discontinued operations $ 757 $ (378) Loss on sale of discontinued operations - (164) Loss from discontinued operations, net of income taxes - (113) Net income (loss) 757 (655) Less: loss allocated to non-controlling interest (12) (385) Net income (loss) attributable to shareholders $ 769 $ (270) Denominator: Basic – weighted shares outstanding 6,929 6,826 Weighted shares assumed upon exercise of stock options 914 - Diluted – weighted shares outstanding 7,843 6,826 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.11 $ 0.00 Discontinued operations - $ (0.04) Net income (loss) per share: $ 0.11 $ (0.04) Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.10 $ 0.00 Discontinued operations - $ (0.04) Net income (loss) per share: $ 0.10 $ (0.04) |
Revenue By Market (Tables)
Revenue By Market (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue By Market [Abstract] | |
Schedule Of Net Revenue By Market | Timing of revenue recognition for the three months ended March 31, 2018: Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical $ - $ 15,933 $ 15,933 Hearing Health 5,810 - 5,810 Professional Audio Communications 1,829 - 1,829 Hearing Health DTC Segment: Hearing Health DTC 1,791 - 1,791 Total Revenue $ 9,430 $ 15,933 $ 25,363 Timing of revenue recognition for the three months ended March 31, 2017 (as adjusted): Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical $ - $ 12,180 $ 12,180 Hearing Health 6,237 - 6,237 Professional Audio Communications 1,382 - 1,382 Hearing Health DTC Segment: - Hearing Health DTC 1,416 - 1,416 Total Revenue $ 9,035 $ 12,180 $ 21,215 |
General (Details)
General (Details) - 3 months ended Mar. 31, 2018 € in Thousands, $ in Thousands | USD ($) | EUR (€) | USD ($) |
Hearing Help Express (HHE) [Member] | |||
Additional percentage acquired | 80.00% | ||
Purchase price, paid in cash | $ 650 | ||
Repayment in debt to HHE's 80% holder | $ 1,833 | ||
Percentage ownership after transaction | 100.00% | ||
Soundperience GmbH [Member] | |||
Additional percentage acquired | 33.00% | ||
Percentage ownership after transaction | 49.00% | ||
Equity method investment | € | € 1,500 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | Feb. 17, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Loss on sale of discontinued operations, net of income taxes | $ 164,000 | ||
Cardiac Diagnostic Monitoring Business [Member] | |||
Future revenue earn-out | $ 0 | ||
Cardiac Diagnostic Monitoring Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
Loss on sale of discontinued operations, net of income taxes | $ (164,000) |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Loss from discontinued operations | $ (113) |
Cardiac Diagnostic Monitoring Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |
Sales, net | 140 |
Operating costs and expenses | (253) |
Loss from discontinued operations | $ (113) |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Loss On Sale Of Discontinued Operations) (Details) - USD ($) $ in Thousands | Feb. 17, 2017 | Mar. 31, 2017 |
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 | |
Accrued liabilities | (15) | |
Net assets sold | 164 | |
Loss on sale of discontinued operations, net of income taxes | $ (164) |
Changes In Accounting Policies
Changes In Accounting Policies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Hearing Health Direct-to-consumer (DTC) Market [Member] | |
Trial period | 60 days |
Significant Changes Due To To42
Significant Changes Due To Topic 606 (Narrative) (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 518 |
Significant Changes Due To To43
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Statements of Operations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sales, net | $ 25,363 | $ 21,215 |
Cost of sales | 16,951 | 15,381 |
Gross profit | 8,412 | 5,834 |
Operating expenses: | ||
Sales and marketing | 2,840 | 2,311 |
General and administrative | 3,061 | 2,558 |
Research and development | 1,159 | 1,153 |
Total operating expenses | 7,060 | 6,022 |
Operating income (loss) | 1,352 | (188) |
Interest expense | (188) | (182) |
Other income | (220) | 56 |
Income (loss) from continuing operations before income taxes and discontinued operations | 944 | (314) |
Income tax expense | 187 | 64 |
Income (loss) from continuing operations before discontinued operations | 757 | (378) |
Loss on sale of discontinued operations (Note 3) | (164) | |
Loss from discontinued operations (Note 3) | (113) | |
Net income (loss) | 757 | (655) |
Less: Loss allocated to non-controlling interest | (12) | (385) |
Net income (loss) attributable to IntriCon shareholders | $ 769 | $ (270) |
Basic income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | $ 0.11 | $ 0 |
Discontinued operations | (0.04) | |
Net income (loss) per share: | 0.11 | (0.04) |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | 0.10 | 0 |
Discontinued operations | (0.04) | |
Net income (loss) per share: | $ 0.10 | $ (0.04) |
Average shares outstanding: | ||
Basic | 6,929 | 6,826 |
Diluted | 7,843 | 6,826 |
Accounting Standards Update 2014-09 [Member] | ||
Sales, net | $ 21,215 | |
Cost of sales | 15,381 | |
Gross profit | 5,834 | |
Operating expenses: | ||
Sales and marketing | 2,311 | |
General and administrative | 2,558 | |
Research and development | 1,153 | |
Total operating expenses | 6,022 | |
Operating income (loss) | (188) | |
Interest expense | (182) | |
Other income | 56 | |
Income (loss) from continuing operations before income taxes and discontinued operations | (314) | |
Income tax expense | 64 | |
Income (loss) from continuing operations before discontinued operations | (378) | |
Loss on sale of discontinued operations (Note 3) | (164) | |
Loss from discontinued operations (Note 3) | (113) | |
Net income (loss) | (655) | |
Less: Loss allocated to non-controlling interest | (385) | |
Net income (loss) attributable to IntriCon shareholders | $ (270) | |
Basic income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | $ 0 | |
Discontinued operations | (0.04) | |
Net income (loss) per share: | (0.04) | |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | 0 | |
Discontinued operations | (0.04) | |
Net income (loss) per share: | $ (0.04) | |
Average shares outstanding: | ||
Basic | 6,826 | |
Diluted | 6,826 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Sales, net | $ 1,127 | |
Cost of sales | 969 | |
Gross profit | 158 | |
Operating expenses: | ||
Operating income (loss) | 158 | |
Income (loss) from continuing operations before income taxes and discontinued operations | 158 | |
Income (loss) from continuing operations before discontinued operations | 158 | |
Net income (loss) | 158 | |
Net income (loss) attributable to IntriCon shareholders | $ 158 | |
Basic income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | $ 0.02 | |
Net income (loss) per share: | 0.02 | |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | 0.02 | |
Net income (loss) per share: | $ 0.02 | |
Average shares outstanding: | ||
Basic | 6,826 | |
Diluted | 6,826 | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Sales, net | $ 20,088 | |
Cost of sales | 14,412 | |
Gross profit | 5,676 | |
Operating expenses: | ||
Sales and marketing | 2,311 | |
General and administrative | 2,558 | |
Research and development | 1,153 | |
Total operating expenses | 6,022 | |
Operating income (loss) | (346) | |
Interest expense | (182) | |
Other income | 56 | |
Income (loss) from continuing operations before income taxes and discontinued operations | (472) | |
Income tax expense | 64 | |
Income (loss) from continuing operations before discontinued operations | (536) | |
Loss on sale of discontinued operations (Note 3) | (164) | |
Loss from discontinued operations (Note 3) | (113) | |
Net income (loss) | (813) | |
Less: Loss allocated to non-controlling interest | (385) | |
Net income (loss) attributable to IntriCon shareholders | $ (428) | |
Basic income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | $ (0.02) | |
Discontinued operations | (0.04) | |
Net income (loss) per share: | (0.06) | |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||
Continuing operations | (0.02) | |
Discontinued operations | (0.04) | |
Net income (loss) per share: | $ (0.06) | |
Average shares outstanding: | ||
Basic | 6,826 | |
Diluted | 6,826 |
Significant Changes Due To To44
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ 757 | $ (655) |
Accounting Standards Update 2014-09 [Member] | ||
Net income (loss) | (655) | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Net income (loss) | 158 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Net income (loss) | $ (813) |
Significant Changes Due To To45
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ 757 | $ (655) |
Inventories | $ (1,183) | (553) |
Accounting Standards Update 2014-09 [Member] | ||
Net income (loss) | (655) | |
Inventories | (553) | |
Other current assets | (631) | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Net income (loss) | 158 | |
Inventories | 352 | |
Other current assets | (510) | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Net income (loss) | (813) | |
Inventories | (905) | |
Other current assets | $ (121) |
Significant Changes Due To To46
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's Prior Year Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventories | $ 14,862 | $ 13,708 |
Contract assets | 4,766 | 2,979 |
Other accrued liabilities | 4,286 | 3,739 |
Accumulated deficit | $ (5,287) | (6,056) |
Accounting Standards Update 2014-09 [Member] | ||
Inventories | 13,708 | |
Contract assets | 2,979 | |
Other accrued liabilities | 3,739 | |
Accumulated deficit | (6,056) | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Inventories | (1,689) | |
Contract assets | 2,979 | |
Other accrued liabilities | 515 | |
Accumulated deficit | 775 | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Inventories | 15,397 | |
Other accrued liabilities | 3,224 | |
Accumulated deficit | $ (6,831) |
Significant Changes Due To To47
Significant Changes Due To Topic 606 (Summary of Information about Receivables, Contracts Assets, and Contract Liabilities from Contracts with Customers) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Significant Changes Due To Topic 606 [Abstract] | ||
Receivables, included in "Accounts receivable, less allowance for doubtful accounts" | $ 11,249 | $ 9,052 |
Contract assets, included in other current assets | 4,766 | $ 2,979 |
Contract liabilities, included in other current liabilities | $ 515 |
Significant Changes Due To To48
Significant Changes Due To Topic 606 (Significant Changes in Contract Assets and Contract Liabilities) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Significant Changes Due To Topic 606 [Abstract] | |
Reclassification of beginning contract liabilities to revenue, as a result of performance obligations satisfied | $ 298 |
Cash received in advance and not recognized as revenue | (312) |
Contract assets recognized, net of reclassification to accounts receivable | 1,787 |
Net Change in Contract Asset | 1,787 |
Net Change in Contract Liability | $ (14) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting, Geographic 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 | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue, net | $ 25,363 | $ 21,215 | |
Income (loss) from continuing operations | 757 | (378) | |
Identifiable assets (excluding goodwill) | 48,761 | 34,452 | |
Goodwill | 10,808 | 10,555 | $ 10,808 |
Depreciation and amortization | 654 | 562 | |
Capital expenditures | 485 | 273 | |
Body Worn Devices Segment [Member] | |||
Revenue, net | 23,572 | 19,799 | |
Income (loss) from continuing operations | 1,210 | 75 | |
Identifiable assets (excluding goodwill) | 42,121 | 30,416 | |
Goodwill | 9,551 | 9,551 | |
Depreciation and amortization | 604 | 495 | |
Capital expenditures | 475 | 213 | |
Hearing Health Direct-to-Consumer [Member] | |||
Revenue, net | 1,791 | 1,416 | |
Income (loss) from continuing operations | (453) | (453) | |
Identifiable assets (excluding goodwill) | 6,640 | 4,036 | |
Goodwill | 1,257 | 1,004 | |
Depreciation and amortization | 50 | 67 | |
Capital expenditures | $ 10 | $ 60 |
Geographic Information (Narrati
Geographic Information (Narrative) (Details) - customer | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Net Sales [Member] | One Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 1 | 1 | |
Percentage of risk | 54.00% | 45.00% | |
Accounts Receivable [Member] | Two Customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 2 | 2 | |
Percentage of risk | 39.00% | 33.00% | |
Contract Assets [Member] | One Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 1 | 1 | |
Percentage of risk | 83.00% | 62.00% |
Geographic Information (Geograp
Geographic Information (Geographical Distribution Of Long-Lived Assets, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 7,547 | $ 7,175 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 5,834 | 5,407 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 1,205 | 1,254 |
All Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 508 | $ 514 |
Geographic Information (Geogr53
Geographic Information (Geographical Distribution Of Net Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 25,363 | $ 21,215 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 20,459 | 16,650 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 2,278 | 2,478 |
Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 2,468 | 1,910 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 158 | $ 177 |
Investment In Partnerships (Nar
Investment In Partnerships (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Soundperience GmbH [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Additional percentage acquired | 33.00% |
Percentage ownership after transaction | 49.00% |
Signison [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method, ownership interest | 50.00% |
Investment In Partnerships (Inv
Investment In Partnerships (Investments in Partnerships) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Other | $ 253 | $ 276 |
Total | 1,931 | 1,616 |
Soundperience GmbH [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 1,196 | 842 |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 482 | $ 498 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 9,803 | $ 9,182 |
Work-in process | 2,708 | 2,305 |
Finished products and components | 2,351 | 2,221 |
Total | 14,862 | 13,708 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 7,660 | 6,924 |
Work-in process | 2,107 | 1,791 |
Finished products and components | 1,360 | 1,366 |
Total | 11,127 | 10,081 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 2,143 | 2,258 |
Work-in process | 601 | 514 |
Finished products and components | 991 | 855 |
Total | $ 3,735 | $ 3,627 |
Short And Long-Term Debt (Narra
Short And Long-Term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Short And Long-Term Debt Instrument [Line Items] | |||
Interest expense | $ 188,000 | $ 182,000 | |
Domestic Term-Loan [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Loan amount | 6,500,000 | ||
Quarterly installments | $ 250,000 | ||
Percentage of proceeds from certain asset sales required to pay down term loan | 100.00% | ||
Domestic Asset-based Revolving Credit Facility [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 9,000,000 | ||
Weighted average interest rate of debt instruments | 5.26% | 5.51% | |
Credit facility, available borrowing capacity | $ 3,135,000 | $ 5,000,000 | |
Letters Of Credit [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 200,000 | ||
Capital Expenditure Loan Facility [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 2,500,000 | ||
Foreign Overdraft And Letter Of Credit Facility [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Weighted average interest rate of debt instruments | 4.26% | 3.87% | |
Credit facility, available borrowing capacity | $ 571,000 | $ 545,000 | |
Foreign Overdraft And Letter Of Credit Facility [Member] | Minimum [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Basis spread on variable rate of debt instruments | 0.75% | ||
Foreign Overdraft And Letter Of Credit Facility [Member] | Maximum [Member] | |||
Short And Long-Term Debt Instrument [Line Items] | |||
Basis spread on variable rate of debt instruments | 2.50% |
Short And Long-Term Debt (Summa
Short And Long-Term Debt (Summary Of Short And Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized finance costs | $ (107) | $ (139) |
Total Debt | 13,011 | 11,361 |
Less: Current Maturities | (2,063) | (2,040) |
Total long-term debt | 10,948 | 9,321 |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 6,000 | 6,250 |
Domestic Asset-based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 5,865 | 4,000 |
Capital Expenditure Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | ||
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 1,253 | $ 1,250 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Abstract] | ||
Income tax expense | $ 187 | $ 64 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes For Each Jurisdiction) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Income (loss) from continuing operations before income taxes and discontinued operations | $ 944 | $ (314) |
United States IRS [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes, United States | 840 | (229) |
Singapore Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes, Foreign | 248 | (93) |
Indonesia [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes, Foreign | 21 | 16 |
United Kingdom [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes, Foreign | (236) | (125) |
Germany [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes, Foreign | $ 71 | $ 117 |
Shareholders' Equity And Stoc61
Shareholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares of common stock for which awards can be granted | 197 | 251 | |
Weighted average fair value of options granted | $ 3.98 | ||
Estimated forfeiture rate of stock options | 0.00% | ||
Weighted average remaining contractual life of options outstanding, years | 5 years 10 months 2 days | ||
Weighted average remaining contractual life of options exercisable, years | 4 years 7 months 13 days | ||
Stock option expense | $ 333 | $ 218 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs related to non-vested awards | $ 1,097 | ||
Unrecognized compensation costs related to non-vested awards, recognition period | 1 year 11 months 5 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Price | $ 20.25 | ||
Unrecognized compensation costs related to non-vested awards | $ 1,623 | ||
Unrecognized compensation costs related to non-vested awards, recognition period | 2 years 9 months 7 days | ||
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 | 886 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased for award | 3 | 4 | |
Maximum [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 |
Shareholders' Equity And Stoc62
Shareholders' Equity And Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Number of Shares, Outstanding | 1,453 |
Number of Shares, Options forfeited or cancelled | (18) |
Number of Shares, Options granted | 87 |
Number of Shares, Options exercised | (45) |
Number of Shares, Outstanding | 1,477 |
Number of Shares, Exercisable | 1,056 |
Number of Shares, Available for future grant at beginning of period | 251 |
Number of Shares, Available for future grant at end of period | 197 |
Weighted-average Exercise Price, Outstanding | $ / shares | $ 5.95 |
Weighted-average Exercise Price, Options forfeited or cancelled | $ / shares | 7.93 |
Weighted-average Exercise Price, Options exercised | $ / shares | 6.55 |
Weighted-average Exercise Price, Outstanding | $ / shares | 5.62 |
Weighted-average Exercise Price, Exercisable | $ / shares | $ 5.57 |
Aggregate Intrinsic Value, Outstanding | $ | $ 21,233 |
Aggregate Intrinsic Value, Exercisable | $ | $ 15,248 |
Stock Options [Member] | |
Number of Shares, Outstanding | 1,453 |
Number of Shares, Options forfeited or cancelled | (18) |
Number of Shares, Options exercised | (45) |
Number of Shares, Outstanding | 1,390 |
Number of Shares, Exercisable | 1,056 |
Restricted Stock Units (RSUs) [Member] | |
Number of Shares, Options granted | 87 |
Number of Shares, Outstanding | 87 |
Income (Loss) Per Share (Narrat
Income (Loss) Per Share (Narrative) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2018shares | |
Income (Loss) Per Share [Abstract] | |
Securities excluded from computation of diluted income per share | 294 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income (Loss) Per Share [Abstract] | ||
Income (loss) from continuing operations before income taxes and discontinued operations | $ 757 | $ (378) |
Loss on sale of discontinued operations | (164) | |
Loss from discontinued operations, net of income taxes | (113) | |
Net income (loss) | 757 | (655) |
Less: Loss allocated to non-controlling interest | (12) | (385) |
Net income (loss) attributable to IntriCon shareholders | $ 769 | $ (270) |
Basic - weighted shares outstanding | 6,929 | 6,826 |
Weighted shares assumed upon exercise of stock options | 914 | |
Diluted - weighted shares outstanding | 7,843 | 6,826 |
Continuing operations | $ 0.11 | $ 0 |
Discontinued operations | (0.04) | |
Net income (loss) per share: | 0.11 | (0.04) |
Continuing operations | 0.10 | 0 |
Discontinued operations | (0.04) | |
Net income (loss) per share: | $ 0.10 | $ (0.04) |
Legal Proceedings (Details)
Legal Proceedings (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Legal Proceedings [Abstract] | |
Selas SAS, Liabilities | $ 480 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related-Party Transactions [Abstract] | ||
Legal services and costs | $ 103 | $ 72 |
Revenue By Market (Schedule Of
Revenue By Market (Schedule Of Net Revenue By Market)(Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Major Customer [Line Items] | ||
Total Revenue | $ 25,363 | $ 21,215 |
Products and Services Transferred at Point in Time [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 9,430 | 9,035 |
Products and Services Transferred over Time [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 15,933 | 12,180 |
Body Worn Devices Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 23,572 | 19,799 |
Hearing Health Direct-to-Consumer [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 1,791 | 1,416 |
Medical [Member] | Body Worn Devices Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 15,933 | 12,180 |
Medical [Member] | Body Worn Devices Segment [Member] | Products and Services Transferred over Time [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 15,933 | 12,180 |
Hearing Health Market [Member] | Body Worn Devices Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 5,810 | 6,237 |
Hearing Health Market [Member] | Body Worn Devices Segment [Member] | Products and Services Transferred at Point in Time [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 5,810 | 6,237 |
Professional Audio Communications [Member] | Body Worn Devices Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 1,829 | 1,382 |
Professional Audio Communications [Member] | Body Worn Devices Segment [Member] | Products and Services Transferred at Point in Time [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 1,829 | 1,382 |
Hearing Health Direct-to-consumer (DTC) Market [Member] | Hearing Health Direct-to-Consumer [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | 1,791 | 1,416 |
Hearing Health Direct-to-consumer (DTC) Market [Member] | Hearing Health Direct-to-Consumer [Member] | Products and Services Transferred at Point in Time [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total Revenue | $ 1,791 | $ 1,416 |