Empire Resources (ERS) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 09, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	EMPIRE RESOURCES INC /NEW/
Entity Central Index Key	1,019,272
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ERS
Entity Common Stock, Shares Outstanding		8,403,150

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 5,719	$ 7,315
Trade accounts receivable (less allowance for doubtful accounts of $1,192 and $1,190)	64,143	60,525
Inventories	116,717	157,025
Deferred tax assets	5,102	5,101
Other current assets, including derivatives	4,177	10,601
Total current assets	195,858	240,567
Property and equipment, net	7,364	7,340
Total assets	203,222	247,907
Current liabilities:
Notes payable - banks (net of unamortized financing costs of $369 and $629)	108,556	138,517
Current maturities of mortgage payable	265	265
Subordinated convertible debt net of unamortized discount of $216	0	10,784
Trade accounts payable	26,403	35,741
Income taxes payable	3,429	2,092
Accrued expenses and derivative liabilities	9,417	6,177
Derivative liability for embedded conversion option	0	942
Dividends payable	339	213
Total current liabilities	148,409	194,731
Mortgage payable, net of current maturities	4,770	4,969
Deferred taxes payable	6	8
Total liabilities	153,185	199,708
Commitments (Note 18)
Stockholders' equity:
Common stock $0.01 par value, 20,000,000 shares authorized and 11,749,651 shares issued at September 30, 2016 and December 31, 2015	117	117
Additional paid-in capital	13,037	13,037
Retained earnings	44,858	42,749
Accumulated other comprehensive loss	(484)	(666)
Treasury stock, 3,327,371 and 3,218,691 shares at September 30, 2016 and December 31, 2015	(7,491)	(7,038)
Total stockholders' equity	50,037	48,199
Total liabilities and stockholders' equity	$ 203,222	$ 247,907

Consolidated Balance Sheets _Pa

Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts, trade accounts	$ 1,192	$ 1,190
Unamortized Debt Issuance Expense	369	629
Unamortized discount, subordinated convertible debt	$ 216	$ 216
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	11,749,651	11,749,651
Treasury stock (in shares)	3,327,371	3,218,691

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net sales	$ 113,599	$ 121,950	$ 358,235	$ 424,689
Cost of goods sold	108,088	116,603	341,536	406,488
Gross profit	5,511	5,347	16,699	18,201
Selling, general and administrative expenses	3,335	3,094	9,918	10,632
Operating income	2,176	2,253	6,781	7,569
Interest expense, net	786	1,419	3,128	4,665
Income before change in value of derivative liability	1,390	834	3,653	2,904
Reduction (increase) in value of derivative liability	0	(224)	942	1,184
Income before income taxes	1,390	610	4,595	4,088
Income taxes	502	295	1,596	1,314
Net income	$ 888	$ 315	$ 2,999	$ 2,774
Weighted average shares outstanding:
Basic	8,504	8,870	8,486	8,709
Diluted	8,536	8,898	10,137	11,736
Earnings per share:
Basic	$ 0.10	$ 0.04	$ 0.35	$ 0.32
Diluted	$ 0.10	$ 0.04	$ 0.25	$ 0.22

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 888	$ 315	$ 2,999	$ 2,774
Other comprehensive (loss)/income
Foreign currency translation adjustments	37	13	182	(242)
Comprehensive income	$ 925	$ 328	$ 3,181	$ 2,532

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows - operating activities:
Net income	$ 2,999	$ 2,774
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	543	487
Reduction in value of derivative liability	(942)	(1,184)
Amortization of convertible note discount	216	457
Imputed interest on vendor advance	0	(53)
Provision for doubtful accounts	(7)	(188)
Amortization of supply agreement	0	240
Deferred income taxes	(3)	73
Foreign exchange loss and other	928	437
Changes in:
Trade accounts receivable	(3,790)	13,043
Inventories	40,209	37,828
Other current assets	6,389	5,353
Trade accounts payable	(9,341)	(19,689)
Income taxes payable	1,335	(2,973)
Accrued expenses and derivative liabilities	3,232	2,649
Net cash provided by operating activities	41,768	39,254
Cash flows - investing activities:
Repayment related to supply agreement	0	2,500
Purchases of property and equipment	(159)	(237)
Net cash (used in)/provided by investing activities	(159)	2,263
Cash flows - financing activities:
Repayment of notes payable - banks	(30,514)	(33,978)
Repayment of convertible subordinated debt	(11,000)	0
Purchase of stock options	0	(922)
Excess tax benefit related to purchase of stock options	0	282
Repayments of mortgage loan	(199)	0
Deferred financing costs	(148)	(158)
Dividends paid	(766)	(884)
Treasury stock purchased	(453)	(1,407)
Net cash used in financing activities	(43,080)	(37,067)
Net (decrease)/increase in cash	(1,471)	4,450
Effect of exchange rate	(125)	(44)
Cash at beginning of period	7,315	1,130
Cash at end of period	5,719	5,536
Supplemental disclosures of cash flow information:
Interest	3,001	4,024
Income taxes	1,444	2,480
Non cash financing activities:
Dividend declared but not yet paid	$ 339	$ 217

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2015	$ 48,199	$ 117	$ 13,037	$ 42,749	$ (666)	$ (7,038)
Balance (in shares) at Dec. 31, 2015		11,750
Treasury stock acquired	(453)					(453)
Change in cumulative translation adjustment	182				182
Dividends declared ($0.105 per share)	(890)			(890)
Net income	2,999			2,999
Balance at Sep. 30, 2016	$ 50,037	$ 117	$ 13,037	$ 44,858	$ (484)	$ (7,491)
Balance (in shares) at Sep. 30, 2016		11,750

Consolidated Statement of Stoc8

Consolidated Statement of Stockholders' Equity [Parenthetical]	Sep. 30, 2016$ / shares
Dividends declared	$ 0.105

The Company

The Company	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. The Company The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Empire Resources Pacific Ltd., the Company’s sales agent in Australia, 8911 Kelso Drive, (organized in June 2015) the owner of the warehouse facility in Essex, Maryland, 6900 Quad Avenue, LLC, the former owner of a warehouse facility in Baltimore, Maryland which was sold in 2015, Imbali Metals BVBA, Empire Resources (UK) Ltd (organized in February 2015), and Empire Resources de Mexico, the Company’s operating subsidiaries in Europe and Mexico. All intercompany balances and transactions have been eliminated on consolidation. The Company purchases and sells semi-finished aluminum and steel products to a diverse customer base located in the Americas, Australia, Europe and New Zealand

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	2. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance, Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requiring additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. For public entities, this ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted for fiscal years and interim periods within those years beginning after December 15, 2016, the original effective date of the statement. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. The guidance will be effective for fiscal years beginning after December 15, 2015. ASU No. 2015-03 requires the new guidance to be applied on a retroactive basis. The Company adopted this guidance in the quarter ended March 31, 2016 and resulted in the Company reclassifying long term unamortized financing costs of $ 369 629 In July 2015, the FASB issued Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory ("ASU 2015-11") which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes- Balance Sheet Classification of Deferred Taxes. To simplify the presentation of deferred income taxes, the amendments in this ASU require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update apply to all entities that present a classified statement of financial position. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”) which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 with early adoption permitted. Under ASU 2016-02, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee’s right to use or control the use of a specified asset for the lease term. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Payments, which addresses the classification of certain specific cash receipts and payments within the statement of cash flows, with the objective of reducing the existing diversity in practice of such classifications. ASU 2016-15 is effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The guidance is to be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

Interim Financial Statements

Interim Financial Statements	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Condensed Financial Statements [Text Block]	3. Interim Financial Statements The condensed consolidated interim financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. The information and note disclosures normally included in complete financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company’s management is responsible for interim financial information. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, necessary to present fairly the Company’s financial position as of September 30, 2016 and the results of its operations and cash flows for the three and nine months ended September 30, 2016 and 2015. Interim results may not be indicative of the results that may be expected for the year.

Use of Estimates

Use of Estimates	9 Months Ended
	Sep. 30, 2016
Use Of Estimates [Abstract]
Use Of Estimates [Text Block]	4. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	5. Concentrations During the nine month periods ended September 30, 2016 and September 30, 2015 one customer, Ryerson Inc., accounted for 10.6% and 10.3 The Company purchases metal products from a limited number of suppliers throughout the world. Three suppliers, Hulamin Ltd, Southeast Aluminum and PT Alumindo Light Metal Industry Tbk (“PT. Alumindo”) accounted for an aggregate of 54 44 The loss of any one of the Company’s largest suppliers or a material default by any such supplier in its obligations to the Company could have a material adverse effect on the Company’s business

Stock Options

Stock Options	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	6. Stock Options Stock-based compensation for an award of equity instruments, including stock options, is recognized as an expense over the vesting period based on the fair value of the award at the grant date. As of September 30, 2016, there were outstanding employee stock options to acquire 50

Treasury Stock

Treasury Stock	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Treasury Stock [Text Block]	7. Treasury Stock On July 22, 2008, the Board of Directors authorized the Company to repurchase up to 2,000 1,821 5,670 109 330 453 1,407

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	8. Inventories Inventories, which consist of purchased semi-finished metal products, are stated at the lower of cost or market value. Cost is determined by the specific-identification method. Inventory is purchased for specific customer orders and the Company’s own inventory. The carrying amount of inventory which is hedged by futures contracts designated as fair value hedges, is adjusted to fair value.

Notes Payable-Banks

Notes Payable-Banks	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-term Debt [Text Block]	9. Notes Payable—Banks On June 19, 2014 the Company entered into an amended and restated committed credit agreement with Rabobank International, for itself and as lead arranger and agent, BNP Paribas, for itself and as syndication agent, and Société Générale, ABN AMRO, RB International, and Brown Brothers Harriman as well as a new uncommitted line of credit with Rabobank International, BNP Paribas and Société Générale. Both credit lines are secured, asset-based credit facilities. The committed credit facility provided for amounts up to $ 150,000 75,000 75,000 300,000 50,000 275,000 35,000 185,000 15,000 90,000 162,500 50,000 40,000 Amounts borrowed bear interest at Eurodollar, money market or base rates, at our option, plus an applicable margin. The credit agreements contain financial and other covenants, including but not limited to, covenants requiring maintenance of minimum tangible net working capital and compliance with leverage ratios, as well as an ownership minimum and limitations on other indebtedness, liens, distributions or dividends, and investments and dispositions of assets. As of September 30, 2016, the Company was in compliance with all covenants under this credit agreement. Both credit agreements provide that amounts under the facilities may be borrowed and repaid, and re-borrowed, subject to a borrowing base test. The committed and uncommitted lines of credit mature June 19, 2017 160,994 158,922 61,994 27,922 84,000 15,000 The Company’s wholly owned Belgian subsidiary, Imbali, maintained a line of credit with ING Belgium S.A./N.V., (“ING”) for a EUR 8,000 8,992 12,500 14,050 4,000 4,496 EURIBOR plus 1.9% 8,830 9,925 2,208 7,500 8,430 1,500

Convertible Subordinated Debt

Convertible Subordinated Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Subordinated Borrowings Disclosure [Text Block]	10. Convertible Subordinated Debt On June 3, 2011, the Company issued $ 12,000 10 11,000 265.82 1 3.762 4,000 As a result of transactions which caused adjustments to the conversion rate, the embedded conversion option was bifurcated and recorded as a separate derivative liability at a fair value at issuance of the notes of $ 2,829 0 224 942 1,184 0 130 216 457 The derivative liability had a carrying value of $ 0 December 31, 2015 June 30, 2015 June 3, 2011 Equity value $ 29,846 $ 35,215 $ 36,811 Volatility 60 % 30 % 70 % Risk free return 0.49 % 0.28 % 1.60 % Dividend yield 2.87 % 2.47 % 2.51 % Strike price $ 3.79 $ 3.84 $ 4.65 The majority of proceeds of the convertible subordinated debt was earmarked for a long term advance in connection with a supply agreement with the Indonesian company PT. Alumindo Light Metal Industry Tbk, (PT. Alumindo) a leading producer of high quality semi-finished aluminum products, and its affiliates. The agreement called for, and the Company provided a $ 10,000 278

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	11. Earnings per Share Basic earnings per share are based upon weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding during each period, plus potential dilutive shares of common stock from assumed exercise of the outstanding stock options using the treasury stock method and assumed conversion of subordinated debt. The convertible debt is assumed to have been converted at the beginning of the period and the related dilutive common shares assumed issued upon conversion are included in the denominator for the period up to the date the debt was repaid. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income $ 888 $ 315 $ 2,999 $ 2,774 Add back of interest on convertible subordinated debt, net of taxes 283 510 Add back of amortization of discount on convertible subordinated debt, net of taxes 134 283 Adjustment for change in value of convertible note derivative, net of taxes (859) (1,010) Numerator for diluted earnings per share $ 888 $ 315 $ 2,557 $ 2,557 Denominator: Weighted average shares outstanding-basic 8,504 8,870 8,486 8,709 Dilutive effect of convertible subordinated debt 1,623 2,884 Dilutive effect of stock options 32 28 28 143 Weighted average shares outstanding-diluted 8,536 8,898 10,137 11,736 Basic earnings per share $ 0.10 $ 0.04 $ 0.35 $ 0.32 Diluted earnings per share $ 0.10 $ 0.04 $ 0.25 $ 0.22 In computing earnings per share for the three months ended September 30, 2015 no effect has been given to the 2,884

Dividends

Dividends	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Dividend Disclosure [Text Block]	12. Dividends On March 23, 2016, the Company announced a cash dividend of $ 0.025 212 0.04 340 0.04 339

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	The Company uses derivative financial instruments designated as fair value hedges to manage its exposure to commodity price risk and foreign currency exchange risk inherent in its operations. It is the Company’s policy to hedge such risks to the extent practicable. The Company enters into high-grade aluminum futures contracts to limit its gross margin exposure by hedging the metal content element of firmly committed purchase and sales commitments. The Company also enters into foreign exchange forward contracts to hedge its exposure related to commitments to buy and sell metals as well as its accounts receivable denominated in international currencies. Derivatives designated Balance Sheet Location September 30, December 31, (Liability) asset derivatives: Aluminum futures contracts Other current assets, including derivatives - $ 3,892 Aluminum futures contracts Accrued expenses and derivative liabilities (1,883) - Foreign currency forward contracts Accrued expenses and derivative liabilities (89) (348) Total $ (1,972) $ 3,544 For the three and nine month periods ended September 30, 2016 and September 30, 2015, hedge ineffectiveness associated with derivatives designated as fair value hedges was insignificant, and no fair value hedges were derecognized. Location of Gain Derivatives in hedging or Three Months Ended Nine Months Ended relationships Recognized 2016 2015 2016 2015 Foreign currency forward contracts (a) Cost of goods sold $ 103 $ 283 $ (269) $ (196) Aluminum futures (b) Cost of goods sold (649) 7,175 3,299 17,171 Total $ (546) $ 7,458 $ 3,030 $ 16,975 a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months ended September 30, 2016 and 2015 and gains in the nine months ended September 30, 2016 and September 30, 2015 are included in cost of goods sold in the same respective amounts. b) Fair value hedge: the related hedged item is inventory and offsetting gains in the three months ended September 30, 2016 and offsetting losses in the three months ended September 30, 2015 and the nine months ended September 30, 2016 and 2015 are included in cost of goods sold in the same respective amounts.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	14. Fair Value Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, as described below: ⋅ Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ⋅ Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ⋅ Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Derivative contracts consisting of aluminum contracts and foreign currency contracts are valued using quoted market prices and significant other observable inputs. These financial instruments are typically exchange-traded and are generally classified within Level 1 or Level 2 of the fair value hierarchy depending on whether the exchange is deemed to be an active market or not. September 30, 2016 December 31, 2015 Level 1 Level 3 Level 2 Level 1 Level 2 Level 3 Assets: Inventories $ 107,962 $ 149,451 Aluminum futures contracts 3,892 Foreign currency forward contracts Liabilities: Foreign currency forward contracts $ 89 348 Embedded conversion option $ 942 Aluminum futures contracts 1,883

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Investments, All Other Investments [Abstract]
Financial Instruments Disclosure [Text Block]	15. Fair Value of Financial Instruments The carrying amounts of variable rate notes payable to the banks approximate fair value as of September 30, 2016 and December 31, 2015, because these notes reflect market changes to interest rates. The fair value of the subordinated convertible debt approximates its principal amount of $ 11,000

Business Segment and Geographic

Business Segment and Geographic Area Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	16. Business Segment and Geographic Area Information The Company’s only business segment is the sale and distribution of metals. Sales are attributed to countries based on location of customers as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States $ 82,764 $ 88,920 $ 261,816 $ 314,337 Europe 10,820 12,679 36,343 31,348 Canada 10,378 9,426 31,041 33,757 Australia & New Zealand 9,196 10,004 27,438 29,738 Latin America 441 921 1,597 15,509 $ 113,599 $ 121,950 $ 358,235 $ 424,689

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Comprehensive Income (Loss) Note [Text Block]	17. Accumulated Other Comprehensive (Loss) Three Months ended September 30, 2016 Foreign Currency Total Beginning balance $ (521) $ (521) Other comprehensive (loss) for the period 37 37 Ending balance $ (484) $ (484) Three Months ended September 30, 2015 Foreign Currency Total Beginning balance $ (589) $ (589) Other comprehensive income for the period 13 13 Ending balance $ (576) $ (576) Nine Months ended September 30, 2016 Foreign Currency Total Beginning balance $ (666) $ (666) Other comprehensive income for the period 182 182 Ending balance $ (484) $ (484) Nine Months ended September 30, 2015 Foreign Currency Total Beginning balance $ (334) $ (334) Other comprehensive loss for the period (242) (242) Ending balance $ (576) $ (576)

Commitments

Commitments	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	18. Commitments The Company had $ 64,202 29,422

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	19. Income Taxes For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to its year to date ordinary income. The effect on the tax rate related to income or loss attributable to the change in value of the derivative liability is separately computed and recognized as such income or loss occurs. The disproportionate relationship between income taxes and pre-tax income for the nine months ended September 30, 2016, results primarily from no deferred tax being provided on the non-taxable gain resulting from the change in the value of the derivative liability to the extent the gain exceeds the $ 216 The disproportionate relationship between income taxes and pre-tax income for the nine months ended September 30, 2015, results primarily from no deferred tax being provided on the non-taxable gain resulting from the change in the value of the derivative liability to the extent such gains exceeds the $ 457 The disproportionate relationship between income taxes and pre-tax income for the three months ended September 30, 2015, results primarily from no tax benefit being recognized on the non-deductible loss resulting from the change in the value of the derivative liability.

Convertible Subordinated Debt (

Convertible Subordinated Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Fair Value, by Balance Sheet Grouping [Table Text Block]	The following table summarizes the significant inputs resulting from the calculations as of December 31, 2015, June 30, 2015 and issuance: December 31, 2015 June 30, 2015 June 3, 2011 Equity value $ 29,846 $ 35,215 $ 36,811 Volatility 60 % 30 % 70 % Risk free return 0.49 % 0.28 % 1.60 % Dividend yield 2.87 % 2.47 % 2.51 % Strike price $ 3.79 $ 3.84 $ 4.65

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income $ 888 $ 315 $ 2,999 $ 2,774 Add back of interest on convertible subordinated debt, net of taxes 283 510 Add back of amortization of discount on convertible subordinated debt, net of taxes 134 283 Adjustment for change in value of convertible note derivative, net of taxes (859) (1,010) Numerator for diluted earnings per share $ 888 $ 315 $ 2,557 $ 2,557 Denominator: Weighted average shares outstanding-basic 8,504 8,870 8,486 8,709 Dilutive effect of convertible subordinated debt 1,623 2,884 Dilutive effect of stock options 32 28 28 143 Weighted average shares outstanding-diluted 8,536 8,898 10,137 11,736 Basic earnings per share $ 0.10 $ 0.04 $ 0.35 $ 0.32 Diluted earnings per share $ 0.10 $ 0.04 $ 0.25 $ 0.22

Derivative Financial Instrume30

Derivative Financial Instruments and Risk Management (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]	The Company’s unrealized assets and liabilities in respect of its fair value hedges measured at fair value are as follows: Derivatives designated Balance Sheet Location September 30, December 31, (Liability) asset derivatives: Aluminum futures contracts Other current assets, including derivatives - $ 3,892 Aluminum futures contracts Accrued expenses and derivative liabilities (1,883) - Foreign currency forward contracts Accrued expenses and derivative liabilities (89) (348) Total $ (1,972) $ 3,544
Schedule Of Derivatives Designated As Cash Flow Hedges [Table Text Block]	Location of Gain Derivatives in hedging or Three Months Ended Nine Months Ended relationships Recognized 2016 2015 2016 2015 Foreign currency forward contracts (a) Cost of goods sold $ 103 $ 283 $ (269) $ (196) Aluminum futures (b) Cost of goods sold (649) 7,175 3,299 17,171 Total $ (546) $ 7,458 $ 3,030 $ 16,975 a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months ended September 30, 2016 and 2015 and gains in the nine months ended September 30, 2016 and September 30, 2015 are included in cost of goods sold in the same respective amounts. b) Fair value hedge: the related hedged item is inventory and offsetting gains in the three months ended September 30, 2016 and offsetting losses in the three months ended September 30, 2015 and the nine months ended September 30, 2016 and 2015 are included in cost of goods sold in the same respective amounts.

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	Major categories of assets and liabilities measured at fair value at September 30, 2016 and December 31, 2015 are classified as follows: September 30, 2016 December 31, 2015 Level 1 Level 3 Level 2 Level 1 Level 2 Level 3 Assets: Inventories $ 107,962 $ 149,451 Aluminum futures contracts 3,892 Foreign currency forward contracts Liabilities: Foreign currency forward contracts $ 89 348 Embedded conversion option $ 942 Aluminum futures contracts 1,883

Business Segment and Geograph32

Business Segment and Geographic Area Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The Company’s only business segment is the sale and distribution of metals. Sales are attributed to countries based on location of customers as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States $ 82,764 $ 88,920 $ 261,816 $ 314,337 Europe 10,820 12,679 36,343 31,348 Canada 10,378 9,426 31,041 33,757 Australia & New Zealand 9,196 10,004 27,438 29,738 Latin America 441 921 1,597 15,509 $ 113,599 $ 121,950 $ 358,235 $ 424,689

Accumulated Other Comprehensi33

Accumulated Other Comprehensive (Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Changes in accumulated other comprehensive (loss) are as follows: Three Months ended September 30, 2016 Foreign Currency Total Beginning balance $ (521) $ (521) Other comprehensive (loss) for the period 37 37 Ending balance $ (484) $ (484) Three Months ended September 30, 2015 Foreign Currency Total Beginning balance $ (589) $ (589) Other comprehensive income for the period 13 13 Ending balance $ (576) $ (576) Nine Months ended September 30, 2016 Foreign Currency Total Beginning balance $ (666) $ (666) Other comprehensive income for the period 182 182 Ending balance $ (484) $ (484) Nine Months ended September 30, 2015 Foreign Currency Total Beginning balance $ (334) $ (334) Other comprehensive loss for the period (242) (242) Ending balance $ (576) $ (576)

Recently Issued Accounting Pr34

Recently Issued Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Unamortized Debt Issuance Expense	$ 369	$ 369	$ 629

Concentrations (Details Textual

Concentrations (Details Textual)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Customer One [Member] | Ryerson, Inc [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.60%	10.30%
Cost Of Goods, Total [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	54.00%	44.00%

Stock Options (Details Textual)

Stock Options (Details Textual) shares in Thousands	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	50

Treasury Stock (Details Textual

Treasury Stock (Details Textual) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jul. 22, 2008
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			2,000
Treasury stock acquired	$ 453
Repurchase One [Member]
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired	$ 5,670
Treasury Stock Shares Acquired Cost Method	1,821
Repurchase Two [Member]
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired	$ 453	$ 1,407
Treasury Stock Shares Acquired Cost Method	109	330

Notes Payable-Banks (Details Te

Notes Payable-Banks (Details Textual) € in Thousands, $ in Thousands	1 Months Ended	9 Months Ended
	Jun. 19, 2014USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2016EUR (€)	Sep. 30, 2016EUR (€)	Jul. 14, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Jul. 30, 2015USD ($)	Jul. 30, 2015EUR (€)	Dec. 18, 2014USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding		$ 61,994				$ 27,922				$ 275,000
Line of Credit Facility, Remaining Borrowing Capacity										40,000
Excess Capital										50,000
Line of Credit Facility, Current Borrowing Capacity		160,994				158,922
Line of Credit Facility, Commitment Fee Amount		8,992	€ 8,000
Line of Credit Facility, Fair Value of Amount Outstanding		$ 9,925		€ 8,830		8,430	€ 7,500
Line Of Credit Facility, Interest Rate, Variable Rate Basis		EURIBOR plus 1.9%	EURIBOR plus 1.9%
Borrowings [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding		$ 2,208				$ 1,500
Committed Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 162,500					185,000
Line of Credit Facility, Current Borrowing Capacity										35,000
Uncommitted Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding								$ 14,050	€ 12,500
Line of Credit Facility, Maximum Borrowing Capacity					$ 50,000					90,000
Line of Credit Facility, Current Borrowing Capacity										$ 15,000
Rabobank Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding								$ 4,496	€ 4,000
Committed Line Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding		$ 84,000
Line of Credit Facility, Expiration Date		Jun. 19, 2017	Jun. 19, 2017
Uncommitted Line Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding		$ 15,000
Line of Credit Facility, Expiration Date		Jun. 19, 2017	Jun. 19, 2017
Rabobank International [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding	$ 300,000
Line of Credit Facility, Maximum Borrowing Capacity	150,000
Line of Credit Facility, Remaining Borrowing Capacity	75,000
Line of Credit Facility, Increase (Decrease), Other, Net	$ 75,000

Convertible Subordinated Debt39

Convertible Subordinated Debt (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2015	Jun. 03, 2011
Debt Instrument [Line Items]
Equity value	$ 35,215	$ 29,846	$ 36,811
Volatility	30.00%	60.00%	70.00%
Risk free return	0.28%	0.49%	1.60%
Dividend yield	2.47%	2.87%	2.51%
Strike price	$ 3.84	$ 3.79	$ 4.65

Convertible Subordinated Debt40

Convertible Subordinated Debt (Details Textual) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 01, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Jun. 03, 2011USD ($)	Jun. 30, 2016USD ($)$ / shares
Debt Instrument [Line Items]
Convertible Subordinated Debt								$ 4,000
Unrealized Gain (Loss) on Derivatives		$ 0	$ 224	$ 942	$ 1,184
Related Party Loan Monthly Installment Upon Disagreement		$ 0	$ 130	216	457
Repayments of Convertible Debt	$ 11,000			$ 11,000	$ 0
Derivative Liability								0
Pt Alumindo [Member]
Debt Instrument [Line Items]
Due from Affiliates								$ 10,000
Convertible Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period							10.00%
Debt Instrument, Convertible, Conversion Ratio	265.82
Debt Instrument, Convertible, Conversion Price | $ / shares								$ 3.762
Derivative Liability, Fair Value, Amount Not Offset Against Collateral, Total								$ 2,829
Debt Instrument, Face Amount							$ 12,000	$ 1
Supply Agreement With Pt. Alumindo [Member]
Debt Instrument [Line Items]
Related Party Loan Monthly Installment						$ 278

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income	$ 888	$ 315	$ 2,999	$ 2,774
Add back of interest on convertible subordinated debt, net of taxes			283	510
Add back of amortization of discount on convertible subordinated debt, net of taxes			134	283
Adjustment for change in value of convertible note derivative, net of taxes			(859)	(1,010)
Numerator for diluted earnings per share	$ 888	$ 315	$ 2,557	$ 2,557
Denominator:
Weighted average shares outstanding-basic	8,504	8,870	8,486	8,709
Dilutive effect of convertible subordinated debt			1,623	2,884
Dilutive effect of stock options	32	28	28	143
Weighted average shares outstanding-diluted	8,536	8,898	10,137	11,736
Basic earnings per share	$ 0.10	$ 0.04	$ 0.35	$ 0.32
Diluted earnings per share	$ 0.10	$ 0.04	$ 0.25	$ 0.22

Earnings per Share (Details Tex

Earnings per Share (Details Textual)	3 Months Ended
	Sep. 30, 2015shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,884

Dividends (Details Textual)

Dividends (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Oct. 07, 2016	Jul. 14, 2016	Apr. 12, 2016	Sep. 30, 2016	Jul. 22, 2016	Mar. 23, 2016	Sep. 30, 2016	Sep. 30, 2015
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Cash Paid		$ 0.04		$ 0.04		$ 0.025
Payments of Dividends, Total			$ 212		$ 340		$ 766	$ 884
Subsequent Event [Member]
Dividends Payable [Line Items]
Payments of Dividends, Total	$ 339

Derivative Financial Instrume44

Derivative Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedges, Net, Total	$ (1,972)	$ 3,544
Other current assets, including derivatives Member] | Aluminum futures contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedges, Net, Total	0	3,892
Accrued Expenses and Derivative Liabilities [Member] | Foreign currency forward contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedges, Net, Total	(89)	(348)
Accrued Expenses and Derivative Liabilities [Member] | Aluminum futures contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedges, Net, Total	$ (1,883)	$ 0

Derivative Financial Instrume45

Derivative Financial Instruments and Risk Management (Details 1) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total		$ (546)	$ 7,458	$ 3,030	$ 16,975
Foreign currency forward contracts [Member] | Cost of goods sold [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	[1]	103	283	(269)	(196)
Aluminum futures [Member] | Cost of goods sold [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	[2]	$ (649)	$ 7,175	$ 3,299	$ 17,171
[1]	Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months ended September 30, 2016 and 2015 and gains in the nine months ended September 30, 2016 and September 30, 2015 are included in cost of goods sold in the same respective amounts.
[2]	Fair value hedge: the related hedged item is inventory and offsetting gains in the three months ended September 30, 2016 and offsetting losses in the three months ended September 30, 2015 and the nine months ended September 30, 2016 and 2015 are included in cost of goods sold in the same respective amounts.

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 1 [Member] | Inventories [Member]
Assets:
Assets, Fair Value Disclosure	$ 107,962	$ 149,451
Fair Value, Inputs, Level 1 [Member] | Foreign currency forward contracts [Member]
Liabilities:
Liabilities, Fair Value Disclosure	89	348
Fair Value, Inputs, Level 1 [Member] | Aluminum futures contracts [Member]
Assets:
Assets, Fair Value Disclosure		3,892
Liabilities:
Liabilities, Fair Value Disclosure	1,883
Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Forward [Member]
Assets:
Assets, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] | Embedded conversion option [Member]
Liabilities:
Liabilities, Fair Value Disclosure		$ 942

Fair Value of Financial Instr47

Fair Value of Financial Instruments (Details Textual) $ in Thousands	Dec. 31, 2015USD ($)
Fair Value of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	$ 11,000

Business Segment and Geograph48

Business Segment and Geographic Area Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Net sales	$ 113,599	$ 121,950	$ 358,235	$ 424,689
UNITED STATES
Segment Reporting Information [Line Items]
Net sales	82,764	88,920	261,816	314,337
Europe [Member]
Segment Reporting Information [Line Items]
Net sales	10,820	12,679	36,343	31,348
CANADA
Segment Reporting Information [Line Items]
Net sales	10,378	9,426	31,041	33,757
Australia & New Zealand [Member]
Segment Reporting Information [Line Items]
Net sales	9,196	10,004	27,438	29,738
Latin America [Member]
Segment Reporting Information [Line Items]
Net sales	$ 441	$ 921	$ 1,597	$ 15,509

Accumulated Other Comprehensi49

Accumulated Other Comprehensive (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, Foreign currency translation	$ (521)	$ (589)	$ (666)	$ (334)
Other comprehensive income (loss) for the period, Foreign Currency Translation	37	13	182	(242)
Ending balance, Foreign Currency Translation	(484)	(576)	(484)	(576)
Beginning balance	(521)	(589)	(666)	(334)
Other comprehensive income (loss) for the period	37	13	182	(242)
Ending balance	$ (484)	$ (576)	$ (484)	$ (576)

Commitments (Details Textual)

Commitments (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies [Line Items]
Letters of Credit Outstanding, Amount	$ 64,202	$ 29,422

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Line Items]
Amortization Of Debt Discount (Premium)	$ 216	$ 457