Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 18, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | EMPIRE RESOURCES INC /NEW/ | ||
Entity Central Index Key | 1,019,272 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 15,679,343 | ||
Trading Symbol | ERS | ||
Entity Common Stock, Shares Outstanding | 8,250,455 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 4,065 | $ 7,315 |
Trade accounts receivable (less allowance for doubtful accounts of $1,198 and $1,190) | 52,810 | 60,525 |
Inventories | 133,031 | 157,025 |
Deferred tax assets | 3,993 | 5,101 |
Other current assets, including derivatives | 4,342 | 10,601 |
Total current assets | 198,241 | 240,567 |
Property and equipment, net | 7,309 | 7,340 |
Total assets | 205,550 | 247,907 |
Current liabilities: | ||
Notes payable - banks, net of unamortized financing costs of $242 and $629 | 121,449 | 138,517 |
Current maturities of mortgage payable | 265 | 265 |
Subordinated convertible debt net of unamortized discount of $216 | 0 | 10,784 |
Trade accounts payable | 21,926 | 35,741 |
Income taxes payable | 913 | 2,092 |
Accrued expenses and derivative liabilities | 6,084 | 6,177 |
Derivative liability for embedded conversion option | 0 | 942 |
Dividends payable | 336 | 213 |
Total current liabilities | 150,973 | 194,731 |
Mortgage payable, net of current maturities | 4,704 | 4,969 |
Deferred taxes payable | 155 | 8 |
Total liabilities | 155,832 | 199,708 |
Commitments (Note R) | ||
Stockholders' equity: | ||
Common stock $0.01 par value, 20,000,000 shares authorized and 11,749,651 shares issued at December 31, 2016 and 2015 | 117 | 117 |
Additional paid-in capital | 13,037 | 13,037 |
Retained earnings | 44,824 | 42,749 |
Accumulated other comprehensive loss | (673) | (666) |
Treasury stock, 3,349,196 and 3,218,691 shares at December 31, 2016 and 2015, respectively | (7,587) | (7,038) |
Total stockholders' equity | 49,718 | 48,199 |
Total liabilities and stockholders' equity | $ 205,550 | $ 247,907 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts, trade accounts | $ 1,198 | $ 1,190 |
Unamortized Debt Issuance Expense | 242 | 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) | 3,349,196 | 3,218,691 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 458,864 | $ 521,736 |
Cost of goods sold | 437,050 | 498,881 |
Gross profit | 21,814 | 22,855 |
Selling, general and administrative expenses | 13,738 | 14,519 |
Operating income | 8,076 | 8,336 |
Interest expense, net | 3,901 | 6,000 |
Income before other expenses | 4,175 | 2,336 |
Other expenses | ||
Change in value of derivative liability | 942 | 1,792 |
Loss on sale of property and equipment | 0 | (244) |
Income before income taxes | 5,117 | 3,884 |
Income taxes | 1,816 | 1,075 |
Net income | $ 3,301 | $ 2,809 |
Weighted average shares outstanding: | ||
Basic (in shares) | 8,465 | 8,669 |
Diluted (in shares) | 9,713 | 11,685 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.39 | $ 0.32 |
Diluted (in dollars per share) | $ 0.29 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows - operating activities: | ||
Net income | $ 3,301 | $ 2,809 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 726 | 737 |
Loss on sale of property and equipment | 0 | 244 |
Change in value of derivative liability | (942) | (1,792) |
Amortization of convertible note discount | 216 | 586 |
Imputed interest on vendor advance | 0 | (56) |
Provision for doubtful accounts | 4 | 649 |
Amortization of supply agreement | 0 | 321 |
Deferred income taxes | 1,255 | (1,233) |
Foreign exchange loss and other | 1,360 | 676 |
Changes in: | ||
Trade accounts receivable | 7,226 | 27,793 |
Inventories | 22,853 | 33,898 |
Other current assets | 6,226 | 7,986 |
Trade accounts payable | (13,811) | (6,866) |
Income taxes payable | (1,430) | (2,089) |
Accrued expenses and derivative liabilities | 225 | 2,123 |
Net cash provided by operating activities | 27,209 | 65,786 |
Cash flows - investing activities: | ||
Repayment related to supply agreement | 0 | 3,333 |
Proceeds from sale of property and equipment | 0 | 3,768 |
Purchases of property and equipment | (160) | (7,278) |
Net cash (used in) investing activities | (160) | (177) |
Cash flows - financing activities: | ||
Repayment of notes payable - banks | (17,084) | (61,078) |
Repayment of subordinated convertible notes payable | (11,000) | |
Proceeds from mortgage loan for new warehouse | 0 | 5,300 |
Repayments of mortgage loan | (265) | (66) |
Deferred financing costs | (148) | (158) |
Dividends paid | (1,104) | (1,101) |
Treasury stock purchased | (549) | (1,583) |
Purchase of stock options | 0 | (922) |
Excess tax benefit related to stock options purchased | 0 | 281 |
Net cash (used in) financing activities | (30,150) | (59,327) |
Net increase/(decrease) in cash | (3,101) | 6,282 |
Effect of exchange rate | (149) | (97) |
Cash at beginning of year | 7,315 | 1,130 |
Cash at end of year | 4,065 | 7,315 |
Supplemental disclosures of cash flow information: | ||
Interest | 3,770 | 5,561 |
Income taxes | 2,081 | 2,657 |
Non cash financing activities: | ||
Dividend declared but not yet paid | $ 336 | $ 213 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2014 | $ 48,811 | $ 117 | $ 13,678 | $ 40,805 | $ (334) | $ (5,455) |
Balance (in shares) at Dec. 31, 2014 | 11,750 | |||||
Treasury stock acquired | (1,583) | (1,583) | ||||
Stock options purchased | (922) | (922) | ||||
Excess tax benefit related to purchase of stock options | 281 | 281 | ||||
Net change in cumulative translation adjustment | (332) | (332) | ||||
Dividends declared | (865) | (865) | ||||
Net income | 2,809 | 2,809 | ||||
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 | (549) | (549) | ||||
Net change in cumulative translation adjustment | (7) | (7) | ||||
Dividends declared | (1,226) | (1,226) | ||||
Net income | 3,301 | 3,301 | ||||
Balance at Dec. 31, 2016 | $ 49,718 | $ 117 | $ 13,037 | $ 44,824 | $ (673) | $ (7,587) |
Balance (in shares) at Dec. 31, 2016 | 11,750 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity [Parenthetical] - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Dividends declared | $ 0.145 | $ 0.10 |
Business
Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note A Business Empire Resources, Inc. (“the Company”) is engaged principally in the purchase, sale and distribution of value added semi-finished aluminum and steel products to a diverse customer base located throughout the Americas, Australia, Europe and New Zealand. The Company sells its products through its own marketing and sales personnel and through independent sales agents located in the U.S., Australia and Europe who receive commissions on sales. The Company purchases from several suppliers located throughout the world (see Note B [14]). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note B - Summary of Significant Accounting Policies Principles of consolidation: The 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, Empire Resources de Mexico, Imbali Metals BVBA (“Imbali”), and Empire Resources UK Ltd (organized in February 2015), the Company’s operating subsidiaries in Mexico and Europe. All intercompany balances and transactions have been eliminated in consolidation. [2] Revenue recognition: Revenue on product sales is recognized at the point in time when the product has been shipped or delivered, title and risk of loss has been transferred to the customer, and the following conditions are met: persuasive evidence of an arrangement exists, the price is fixed and determinable, and collectability of the resulting receivable is reasonably assured. Accounts receivable: Accounts receivable are stated as the outstanding balance due from customers, net of an allowance for doubtful accounts. The Company maintains a credit insurance policy with a 10 Inventories: Inventories which consist of purchased semi-finished metal products are stated at the lower of cost or market. Cost is determined by the specific-identification method. Inventory has generally been purchased for specific customer orders. The carrying amount of inventory which is hedged by futures contracts designated as fair value hedges is adjusted to fair value. [5] Property and equipment: Property and equipment are stated at cost and depreciated by the straight-line method over their estimated useful lives. Impaired assets are written down to their fair value. Derivatives: The Company recognizes all derivatives in the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through earnings. If the derivative is a hedge, depending upon the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings (fair value hedge), or recognized in other comprehensive income until the hedged item is recognized in earnings (cash flow hedge). The ineffective portion of a derivative’s change in fair value, if any, is immediately recognized in earnings. When a hedged item in a fair value hedge is sold, the adjustment in the carrying amount of the hedged item is recognized in earnings (see Note E). [7] Foreign currency translation: The functional currency of Empire Resources Pacific Ltd., a wholly-owned domestic subsidiary which acts as a sales agent in Australia and New Zealand, is the Australian dollar. The Company also has wholly owned foreign subsidiaries incorporated in Belgium and England which sell semi-finished metal products in Europe. The functional currency of the Belgian subsidiary is the Euro and that of the English subsidiary is the British Pound. Cumulative translation adjustments, which are charged or credited to accumulated other comprehensive income, arise from translation of functional currency amounts into U.S. dollars. Income taxes: The Company follows the asset and liability approach for deferred income taxes. This method provides that deferred tax assets and liabilities are recorded, using currently enacted tax rates, based upon the difference between the tax bases of assets and liabilities and their carrying amounts for financial statement purposes. Deferred tax asset valuation allowances are recorded when management believes that it is more likely than not that the related deferred tax assets will be not be realized. Per share data: Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share give effect to all dilutive outstanding stock options, using the treasury stock method and assumed conversion of subordinated debt (see Note O). Stock - based compensation: Stock-based compensation expense for an award of equity instruments, including stock options, is recognized over the vesting period based on the fair value of the award at the grant date. [11] Certain New 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 primarily sells its inventories pursuant to fixed formula price purchase orders and does not enter into transactions with multiple performance obligations. As such, even though the Company is evaluating the impact of the adoption of the new standard, the Company does not expect this standard to have a material impact on its revenue recognition. In August 2014 the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 2015-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. The term probable is used consistently with its use in Topic 450, Contingencies. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. 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 $ 242 629 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 accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We do not expect the adoption of this guidance will have a material impact on our financial statements. 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. [12] 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: · · · Derivative contracts consisting of aluminum future contracts and foreign currency forward 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. The conversion option embedded in convertible subordinated notes issued in 2011 was valued using Level 3 inputs. December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Inventories $ 117,682 $ 149,451 Aluminum futures contracts $ 774 3,892 Foreign currency forward contracts $ 752 - Liabilities: Embedded conversion option - $ 942 Foreign currency forward contracts - 348 Use of estimates: The preparation of financial statements in accordance with generally accepted accounting principles (“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. [14] Significant customers and concentration of suppliers: For the years ended December 31, 2016, and 2015, one customer accounted for 11.5 10 The Company’s purchase of metal products is from several suppliers located throughout the world. Three suppliers, PT. Alumindo Light Metal Industry Tbk (“PT. Alumindo”), Hulamin Ltd and Southeast Aluminium (China) Co. Ltd, accounted for 53 56 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments Disclosure [Text Block] | Note C Fair Value of Financial Instruments The carrying amounts of variable rate notes payable to the banks and the variable rate mortgage payable approximate fair value as of December 31, 2016 and 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 at December 31, 2015, which exceeds its carrying amount as a result of the unamortized discount related to the bifurcation of the embedded conversion option. Fair value of financial instruments are based on level 2 inputs. Derivative financial instruments are carried at fair value (see |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note D Property and Equipment December 31, 2016 2015 Estimated Useful Life Cost: Land $ 2,150 $ 2,150 Buildings and improvements 4,878 4,854 10 and 40 years Other equipment 1,843 1,707 3 to 5 years 8,871 8,711 Less: Accumulated depreciation 1,562 1,371 Net Book Value $ 7,309 $ 7,340 During 2015, the Company sold its warehouse facility in Baltimore, Maryland for $ 3,768 244 6,575 Depreciation expense was $ 190 185 |
Derivative Financial Instrument
Derivative Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note E Derivative Financial Instruments and Risk Management 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 its products denominated in international currencies, primarily the Australian dollar. Derivatives designated December 31, December 31, as fair value hedges Balance Sheet Location 2016 2015 Asset (liability) derivatives: Aluminum futures contracts Other current assets $ 774 3,892 Foreign currency forward contracts Other current assets/ (liabilities) 752 (348) Total $ 1,526 $ 3,544 For the years ended December 31, 2016, and 2015, hedge ineffectiveness associated with derivatives designated as fair value hedges was insignificant, and no fair value hedges were derecognized. Year Ended Derivatives in hedging Location of Gain or December 31, relationships (Loss) Recognized 2016 2015 Foreign currency forward contracts (a) Cost of goods sold $ (111) $ (540) Aluminum futures (b) Cost of goods sold 598 24,518 Total $ 487 $ 23,978 (a) Fair value hedge: the related hedged item is accounts receivable and accounts payable denominated in foreign currency and offsetting gains in 2016 and 2015, in the same respective amounts are included in cost of goods sold. (b) Fair value hedge: the related hedged item is inventory and offsetting losses in 2016 and 2015, in the same respective amounts are included in cost of goods sold in 2016 and 2015. |
Accrued expenses and derivative
Accrued expenses and derivative liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note F Accrued expenses and derivative liabilities December 31, 2016 2015 Accrued expenses $ 6,084 $ 5,829 Derivative liabilities - 348 $ 6,084 $ 6,177 |
Mortgage Payable
Mortgage Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable Disclosure [Text Block] | Note G Mortgage Payable On October 15, 2015 the Company entered into a $ 5,300 2025 22.1 Year Ending December 31, 2017 $ 265 2018 265 2019 265 2020 265 2021 265 Thereafter 3,644 $ 4,969 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | Note H - Notes Payable Prior to June 19, 2014, we were a party to credit agreement with Rabobank International, for itself and as lead arranger and agent, JPMorgan Chase, for itself and as syndication agent, and ABN AMRO, BNP Paribas, RBS Citizens, Société Générale, and Brown Brothers Harriman which provided for a $ 200,000 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 June 19, 2017 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 December 31, 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 line and uncommitted lines of credit mature June 19, 2017 151,608 158,922 40,008 27,922 Company does not currently have the liquid funds to repay the debt at maturity, the Company is negotiating a new line of credit and believes that it is probable that a new credit agreement will be in effect prior to the expiration of the current agreement; however there can be no assurances that it will be able to successfully conclude a new agreement. 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 8,416 12,500 13,150 4,000 4,208 EURIBOR plus 1.9%. 9,592 10,091 7,500 7,890 1,235 1,500 |
Convertible Subordinated Debt
Convertible Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Note I 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 $ 2,829 942 1,792 216 586 0 Prior to maturity, the derivative liability was valued using a lattice model using Level 3 inputs. This technique was selected because it embodies all of the types of inputs that the Company expects market participants would consider in determining the fair value of equity linked derivatives embedded in hybrid debt agreements. December 31, 2015 June 3, 2011 Equity value $ 29,846 $ 36,811 Volatility 60 % 70 % Risk free return 0.49 % 1.60 % Dividend yield 2.87 % 2.51 % Strike price $ 3.79 $ 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 a leading producer of high quality semi-finished aluminum products, and its affiliates, as described below. The agreement called for, and the Company provided a $ 10,000 278 Interest at the rate of 3.69 962 56 321 |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note J - Stock Options The Company’s 2006 Stock Option Plan (the “2006 Plan”), as amended, provides for the granting of options to purchase not more than an aggregate of 559,000 The 2006 Plan provides that it is to be administered by the board of directors, or by a committee appointed by the board of directors, which will be responsible for determining, subject to the provisions of the 2006 Plan, to whom the options are granted, the number of shares of common stock subject to an option, whether an option shall be incentive or non-qualified, the exercise price of each option (which, other than in the case of incentive stock options, may be less than the fair market value of the shares on the date of grant), the period during which each option may be exercised and the other terms and conditions of each option. No options may be granted under the 2006 Plan after June 26, 2016. Weighted Average Weighted Remaining Average contractual Aggregate Number of Exercise term Intrinsic Shares Price (years) Value Options outstanding and exercisable at December 31, 2014 400 4.73 $ 1,258 Options repurchased (350) $ 1.47 Options outstanding and exercisable at December 31, 2015 50 $ 1.63 3.72 $ 93 Options canceled - Options exercised - Options outstanding and exercisable at December 31, 2016 50 $ 1.63 2.71 $ 258 Options available for grant under 2006 Plan at December 31, 2016 - 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. On May 19 and May 20, 2015 the Company repurchased 350 922 281 50 |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Treasury Stock [Text Block] | Note K - Treasury Stock On July 22, 2008, the board of directors authorized the Company to repurchase up to 2,000 1,843 5,766 130 375 549 1,583 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note L Accumulated other comprehensive income/(Loss) Foreign Currency Year ended December 31, 2016 Translation Beginning balance $ (666) Other comprehensive loss (7) Ending balance $ (673) Foreign Currency Year ended December 31, 2015 Translation Beginning balance $ (334) Other comprehensive loss (332) Ending balance $ (666) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note M - Income Taxes Year Ended December 31, 2016 2015 U.S. $ 5,928 $ 3,259 Foreign (811) 625 $ 5,117 $ 3,884 Year Ended December 31, 2016 2015 Current U.S. Federal $ 361 $ 1,476 State and local 131 607 Foreign 69 225 561 2,308 Deferred U.S. Federal 975 (1,099) State and local 280 (134) Foreign - - 1,255 (1,233) $ 1,816 $ 1,075 Year Ended December 31, 2016 2015 Provision for taxes at statutory rate of 34% $ 1,740 $ 1,321 State and local taxes, net of federal tax effect 301 312 Permanent differences (a) (240) (426) Provision for/(reversal of) prior year unrecognized tax benefits 2 (103) Other 13 (29) $ 1,816 $ 1,075 (a) Prinicipally related to the change in the value of derivative liability for the embedded conversion option Year Ended December 31, 2016 2015 Deferred current tax assets Allowance for doubtful accounts $ 452 $ 447 Accrued expenses 196 478 Inventories 3,345 4,176 Derivative liability for embedded conversion option - 82 3,993 5,183 Deferred current tax liabilities Unamortized debt discount - (82) - (82) Net deferred current tax assets $ 3,993 $ 5,101 Deferred long-term tax liabilities Property and Equipment (155) (8) (155) (8) Net deferred long-term tax assets/(liabilities) (155) (8) Net deferred tax assets $ 3,838 $ 5,093 Foreign loss and income and related foreign income taxes primarily relates to the Company’s subsidiaries in Belgium, Imbali Metals BVBA, Empire Resources (UK) Limited and Empire Resources de Mexico. For US income tax purposes, the Company has elected to treat Imbali and Empire Resources (UK) as disregarded entities and include their taxable income or loss in the Company’s U.S. consolidated federal income tax return and separate state income tax returns. All three foregin entities are taxed as corporations in their respective countries. Due to U.S. tax rules dealing with constructive repatriation of earnings, if there are earnings of Empire Resources de Mexico, such earnings would also be included in the Company’s U.S. consolidated federal income tax return and separate state income tax return. Federal income taxes attributable to the subsidiaries taxable income are offset by tax credits for foreign taxes paid by the subsidiaries. Undistributed earnings of Imbali amounted to approximately $ 3,297 585 5 The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. 2016 2015 Balance at January 1 $ 67 $ 170 Reductions from settlements or filings with state tax authorities - - Reductions from lapse of statute of limitations (3) (20) Settlements - - Net increase/(decrease) for tax positions of prior years 6 (83) Balance at December 31 (a) $ 70 $ 67 (a) Liability included in income taxes payable in the consolidated balance sheets. The total amount of unrecognized tax benefits at December 31, 2016 and 2015 would impact the Company’s effective tax rate, if recognized. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company recognized additional accrued interest of approximately $ 5 44 27 22 The Company files a consolidated federal income tax return and also files income tax returns in various state jurisdictions. With certain exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by taxing authorities for years before 2013. |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note N - Employee Retirement Benefits The Company has implemented a salary reduction employee benefit plan, under Section 401(k) of the Internal Revenue Code. Employees may contribute up to the maximum amount allowable by law and the Company will provide a matching contribution of 50 2 Each employee’s pre-tax contributions are immediately vested upon participation in the plan. Years of service Vested 1 25 % 2 50 % 3 75 % 4 100 % 74 75 |
Per Share Data
Per Share Data | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note O Per Share Data Year Ended Ended December 31, 2016 2015 Numerator: Net income $ 3,301 $ 2,809 Add back of interest on convertible subordinated debt, net of taxes 283 680 Add back of amortization of discount on convertible subordinated debt, net of taxes 134 363 Adjustment for change in value of convertible note derivative, net of taxes (859) (1,569) Numerator for diluted earnings per share $ 2,859 $ 2,283 Denominator: Weighted average shares outstanding-basic 8,465 8,669 Dilutive effect of convertible subordinated debt 1,218 2,902 Dilutive effect of stock options 30 114 Weighted average shares outstanding-diluted 9,713 11,685 Basic earnings per share $ 0.39 $ 0.32 Diluted earnings per share $ 0.29 $ 0.20 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Dividend Disclosure [Text Block] | Note P D ividends On March 23, 2016, the Company announced a cash dividend of $ 0.025 212 0.04 340 0.04 339 0.04 336 The board of directors will review its dividend policy on a quarterly basis, and make a determination on future dividend distributions subject to the profitability and free cash flow and the other requirements of the business. |
Business Segment and Geographic
Business Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note Q Business Segment and Geographic Area Information Year Ended December 31, 2016 2015 United States $ 338,564 $ 385,729 Europe 44,510 38,569 Canada 37,211 42,522 Australia & New Zealand 34,707 39,312 Latin America 3,872 15,604 $ 458,864 $ 521,736 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note R - Commitments and Contingencies [1] Lease: Year Ending December 31, 2017 353 2018 361 2019 368 2020 361 2021 358 Thereafter 1,119 $ 2,920 Rent expense for the years ended December 31, 2016 and 2015 was $ 421 317 [2] Letters of credit: Outstanding letters of credit at December 31, 2016, amounted in total to approximately $ 41,243 29,422 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note S - Subsequent Event On March 30, 2017, the Company entered into a merger agreement to be acquired by Ta Chen Stainless Pipe Ltd. for $7 per common share in cash or a total price of approximately $58 million for all shares. The transaction is expected to close in the second quarter of 2017. The completion of the transaction is subject to certain customary conditions and there is no assurance that the transaction will be completed or that it will be completed in the second quarter of 2017. If the merger agreement is terminated under certain circumstances the Company will be obligated to pay a break-up fee of $1 million. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of consolidation: The 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, Empire Resources de Mexico, Imbali Metals BVBA (“Imbali”), and Empire Resources UK Ltd (organized in February 2015), the Company’s operating subsidiaries in Mexico and Europe. All intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition, Policy [Policy Text Block] | [2] Revenue recognition: Revenue on product sales is recognized at the point in time when the product has been shipped or delivered, title and risk of loss has been transferred to the customer, and the following conditions are met: persuasive evidence of an arrangement exists, the price is fixed and determinable, and collectability of the resulting receivable is reasonably assured. |
Accounts Receivable And Allowance, Policy [Policy Text Block] | Accounts receivable: Accounts receivable are stated as the outstanding balance due from customers, net of an allowance for doubtful accounts. The Company maintains a credit insurance policy with a 10 |
Inventory, Policy [Policy Text Block] | Inventories: Inventories which consist of purchased semi-finished metal products are stated at the lower of cost or market. Cost is determined by the specific-identification method. Inventory has generally been purchased for specific customer orders. The carrying amount of inventory which is hedged by futures contracts designated as fair value hedges is adjusted to fair value. |
Property, Plant and Equipment, Policy [Policy Text Block] | [5] Property and equipment: Property and equipment are stated at cost and depreciated by the straight-line method over their estimated useful lives. Impaired assets are written down to their fair value. |
Derivatives, Policy [Policy Text Block] | Derivatives: The Company recognizes all derivatives in the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through earnings. If the derivative is a hedge, depending upon the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings (fair value hedge), or recognized in other comprehensive income until the hedged item is recognized in earnings (cash flow hedge). The ineffective portion of a derivative’s change in fair value, if any, is immediately recognized in earnings. When a hedged item in a fair value hedge is sold, the adjustment in the carrying amount of the hedged item is recognized in earnings (see Note E). |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | [7] Foreign currency translation: The functional currency of Empire Resources Pacific Ltd., a wholly-owned domestic subsidiary which acts as a sales agent in Australia and New Zealand, is the Australian dollar. The Company also has wholly owned foreign subsidiaries incorporated in Belgium and England which sell semi-finished metal products in Europe. The functional currency of the Belgian subsidiary is the Euro and that of the English subsidiary is the British Pound. Cumulative translation adjustments, which are charged or credited to accumulated other comprehensive income, arise from translation of functional currency amounts into U.S. dollars. |
Income Tax, Policy [Policy Text Block] | Income taxes: The Company follows the asset and liability approach for deferred income taxes. This method provides that deferred tax assets and liabilities are recorded, using currently enacted tax rates, based upon the difference between the tax bases of assets and liabilities and their carrying amounts for financial statement purposes. Deferred tax asset valuation allowances are recorded when management believes that it is more likely than not that the related deferred tax assets will be not be realized. |
Earnings Per Share, Policy [Policy Text Block] | Per share data: Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share give effect to all dilutive outstanding stock options, using the treasury stock method and assumed conversion of subordinated debt (see Note O). |
Compensation Related Costs, Policy [Policy Text Block] | Stock - based compensation: Stock-based compensation expense for an award of equity instruments, including stock options, is recognized over the vesting period based on the fair value of the award at the grant date. |
New Accounting Pronouncements, Policy [Policy Text Block] | [11] Certain New 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 primarily sells its inventories pursuant to fixed formula price purchase orders and does not enter into transactions with multiple performance obligations. As such, even though the Company is evaluating the impact of the adoption of the new standard, the Company does not expect this standard to have a material impact on its revenue recognition. In August 2014 the FASB issued ASU 2014-15, Presentation of Financial Statements Going Concern (Subtopic 2015-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In connection with preparing financial statements for each annual and interim reporting period, an entity’s management should evaluate whether there are any conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. The term probable is used consistently with its use in Topic 450, Contingencies. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. 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 $ 242 629 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 accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We do not expect the adoption of this guidance will have a material impact on our financial statements. 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. |
Fair Value Measurement, Policy [Policy Text Block] | [12] 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: · · · Derivative contracts consisting of aluminum future contracts and foreign currency forward 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. The conversion option embedded in convertible subordinated notes issued in 2011 was valued using Level 3 inputs. December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Inventories $ 117,682 $ 149,451 Aluminum futures contracts $ 774 3,892 Foreign currency forward contracts $ 752 - Liabilities: Embedded conversion option - $ 942 Foreign currency forward contracts - 348 |
Use of Estimates, Policy [Policy Text Block] | Use of estimates: The preparation of financial statements in accordance with generally accepted accounting principles (“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. |
Major Customers, Policy [Policy Text Block] | [14] Significant customers and concentration of suppliers: For the years ended December 31, 2016, and 2015, one customer accounted for 11.5 10 The Company’s purchase of metal products is from several suppliers located throughout the world. Three suppliers, PT. Alumindo Light Metal Industry Tbk (“PT. Alumindo”), Hulamin Ltd and Southeast Aluminium (China) Co. Ltd, accounted for 53 56 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Major categories of assets and liabilities measured at fair value at December 31, 2016 and 2015 are classified as follows: December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Inventories $ 117,682 $ 149,451 Aluminum futures contracts $ 774 3,892 Foreign currency forward contracts $ 752 - Liabilities: Embedded conversion option - $ 942 Foreign currency forward contracts - 348 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are summarized as follows: December 31, 2016 2015 Estimated Useful Life Cost: Land $ 2,150 $ 2,150 Buildings and improvements 4,878 4,854 10 and 40 years Other equipment 1,843 1,707 3 to 5 years 8,871 8,711 Less: Accumulated depreciation 1,562 1,371 Net Book Value $ 7,309 $ 7,340 |
Derivative Financial Instrume30
Derivative Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 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 at December 31, 2016 and 2015 are as follows: Derivatives designated December 31, December 31, as fair value hedges Balance Sheet Location 2016 2015 Asset (liability) derivatives: Aluminum futures contracts Other current assets $ 774 3,892 Foreign currency forward contracts Other current assets/ (liabilities) 752 (348) Total $ 1,526 $ 3,544 |
Schedule Of Derivatives Designated As Cash Flow Hedges [Table Text Block] | The table below summarizes the realized gain or (loss) on the Company’s derivative instruments and their location in the income statement: Year Ended Derivatives in hedging Location of Gain or December 31, relationships (Loss) Recognized 2016 2015 Foreign currency forward contracts (a) Cost of goods sold $ (111) $ (540) Aluminum futures (b) Cost of goods sold 598 24,518 Total $ 487 $ 23,978 (a) Fair value hedge: the related hedged item is accounts receivable and accounts payable denominated in foreign currency and offsetting gains in 2016 and 2015, in the same respective amounts are included in cost of goods sold. (b) Fair value hedge: the related hedged item is inventory and offsetting losses in 2016 and 2015, in the same respective amounts are included in cost of goods sold in 2016 and 2015. |
Accrued expenses and derivati31
Accrued expenses and derivative liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule Of Accrued Expenses And Derivative Liabilities [Table Text Block] | Accrued expenses and derivative liabilities consist of the following: December 31, 2016 2015 Accrued expenses $ 6,084 $ 5,829 Derivative liabilities - 348 $ 6,084 $ 6,177 |
Mortgage Payable (Tables)
Mortgage Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following are the future maturities of the mortgage at December 31, 2016: Year Ending December 31, 2017 $ 265 2018 265 2019 265 2020 265 2021 265 Thereafter 3,644 $ 4,969 |
Convertible Subordinated Debt (
Convertible Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the significant inputs resulting from the calculations at issuance and year end: December 31, 2015 June 3, 2011 Equity value $ 29,846 $ 36,811 Volatility 60 % 70 % Risk free return 0.49 % 1.60 % Dividend yield 2.87 % 2.51 % Strike price $ 3.79 $ 4.65 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of stock option activity for the years ended December 31, 2016 and 2015: Weighted Average Weighted Remaining Average contractual Aggregate Number of Exercise term Intrinsic Shares Price (years) Value Options outstanding and exercisable at December 31, 2014 400 4.73 $ 1,258 Options repurchased (350) $ 1.47 Options outstanding and exercisable at December 31, 2015 50 $ 1.63 3.72 $ 93 Options canceled - Options exercised - Options outstanding and exercisable at December 31, 2016 50 $ 1.63 2.71 $ 258 Options available for grant under 2006 Plan at December 31, 2016 - |
ACCUMULATED OTHER COMPREHENSI35
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive income/(loss) for the years ended December 31, 2016 and 2015 on an after tax basis is as follows: Foreign Currency Year ended December 31, 2016 Translation Beginning balance $ (666) Other comprehensive loss (7) Ending balance $ (673) Foreign Currency Year ended December 31, 2015 Translation Beginning balance $ (334) Other comprehensive loss (332) Ending balance $ (666) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of income/(loss) before income taxes were as follows: Year Ended December 31, 2016 2015 U.S. $ 5,928 $ 3,259 Foreign (811) 625 $ 5,117 $ 3,884 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) consists of the following: Year Ended December 31, 2016 2015 Current U.S. Federal $ 361 $ 1,476 State and local 131 607 Foreign 69 225 561 2,308 Deferred U.S. Federal 975 (1,099) State and local 280 (134) Foreign - - 1,255 (1,233) $ 1,816 $ 1,075 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The U.S. statutory rate can be reconciled to the effective tax rate as follows: Year Ended December 31, 2016 2015 Provision for taxes at statutory rate of 34% $ 1,740 $ 1,321 State and local taxes, net of federal tax effect 301 312 Permanent differences (a) (240) (426) Provision for/(reversal of) prior year unrecognized tax benefits 2 (103) Other 13 (29) $ 1,816 $ 1,075 (a) Prinicipally related to the change in the value of derivative liability for the embedded conversion option |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities are composed of the following: Year Ended December 31, 2016 2015 Deferred current tax assets Allowance for doubtful accounts $ 452 $ 447 Accrued expenses 196 478 Inventories 3,345 4,176 Derivative liability for embedded conversion option - 82 3,993 5,183 Deferred current tax liabilities Unamortized debt discount - (82) - (82) Net deferred current tax assets $ 3,993 $ 5,101 Deferred long-term tax liabilities Property and Equipment (155) (8) (155) (8) Net deferred long-term tax assets/(liabilities) (155) (8) Net deferred tax assets $ 3,838 $ 5,093 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2016 and 2015 is as follows: 2016 2015 Balance at January 1 $ 67 $ 170 Reductions from settlements or filings with state tax authorities - - Reductions from lapse of statute of limitations (3) (20) Settlements - - Net increase/(decrease) for tax positions of prior years 6 (83) Balance at December 31 (a) $ 70 $ 67 (a) Liability included in income taxes payable in the consolidated balance sheets. |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Defined Contribution Plan Matching Contribution Vested Based On Length Of Service [Table Text Block] | The employees’ vesting of the Company’s matching contribution is based upon length of service as follows: Years of service Vested 1 25 % 2 50 % 3 75 % 4 100 % |
Per Share Data (Tables)
Per Share Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is the reconciliation of the numerators and denominators of the basic and diluted earnings per share: Year Ended Ended December 31, 2016 2015 Numerator: Net income $ 3,301 $ 2,809 Add back of interest on convertible subordinated debt, net of taxes 283 680 Add back of amortization of discount on convertible subordinated debt, net of taxes 134 363 Adjustment for change in value of convertible note derivative, net of taxes (859) (1,569) Numerator for diluted earnings per share $ 2,859 $ 2,283 Denominator: Weighted average shares outstanding-basic 8,465 8,669 Dilutive effect of convertible subordinated debt 1,218 2,902 Dilutive effect of stock options 30 114 Weighted average shares outstanding-diluted 9,713 11,685 Basic earnings per share $ 0.39 $ 0.32 Diluted earnings per share $ 0.29 $ 0.20 |
Business Segment and Geograph39
Business Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 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 non-ferrous and ferrous metals. Sales are attributed to countries based on location of customer. Sales to domestic and foreign customers were as follows: Year Ended December 31, 2016 2015 United States $ 338,564 $ 385,729 Europe 44,510 38,569 Canada 37,211 42,522 Australia & New Zealand 34,707 39,312 Latin America 3,872 15,604 $ 458,864 $ 521,736 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ending December 31, 2017 353 2018 361 2019 368 2020 361 2021 358 Thereafter 1,119 $ 2,920 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Assets, Fair Value Disclosure | $ 117,682 | $ 149,451 |
Aluminum Futures Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Assets, Fair Value Disclosure | 774 | 3,892 |
Embedded Conversion Option [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Liabilities, Fair Value Disclosure | 0 | 942 |
Foreign Currency Forward Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Assets, Fair Value Disclosure | 752 | 0 |
Liabilities, Fair Value Disclosure | $ 0 | $ 348 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage Of Provision For Accounts Receivable | 10.00% | |
Unamortized Debt Issuance Expense | $ 242 | $ 629 |
Cost Of Goods, Total [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 53.00% | 56.00% |
Sales Revenue, Goods, Net [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 11.50% | 10.00% |
Fair Value of Financial Instr43
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 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 8,871 | $ 8,711 |
Less: Accumulated depreciation | 1,562 | 1,371 |
Net Book Value | 7,309 | 7,340 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 2,150 | 2,150 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 4,878 | 4,854 |
Buildings and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Buildings and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 1,843 | $ 1,707 |
Other equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Other equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years |
Property and Equipment (Detai45
Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 190 | $ 185 |
Proceeds from Sale of Property, Plant, and Equipment, Total | 0 | 3,768 |
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 0 | (244) |
Property, Plant and Equipment, Additions | $ 6,575 |
Derivative Financial Instrume46
Derivative Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value Hedges, Net, Total | $ 1,526 | $ 3,544 |
Other current assets Member] | Aluminum futures contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value Hedges, Net, Total | 774 | 3,892 |
Other Current Assets Liabilities [Member] | Foreign currency forward contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value Hedges, Net, Total | $ 752 | $ (348) |
Derivative Financial Instrume47
Derivative Financial Instruments and Risk Management (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net, Total | $ 487 | $ 23,978 | |
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] | (111) | (540) |
Aluminum futures [Member] | Cost of goods sold [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net, Total | [2] | $ 598 | $ 24,518 |
[1] | Fair value hedge: the related hedged item is accounts receivable and accounts payable denominated in foreign currency and offsetting gains in 2016 and 2015, in the same respective amounts are included in cost of goods sold. | ||
[2] | Fair value hedge: the related hedged item is inventory and offsetting losses in 2016 and 2015, in the same respective amounts are included in cost of goods sold in 2016 and 2015. |
Accrued expenses and derivati48
Accrued expenses and derivative liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses and Derivative Liabilities [Line Items] | ||
Accrued expenses | $ 6,084 | $ 5,829 |
Derivative liabilities | 0 | 348 |
Accrued Expenses Derivative Liabilities | $ 6,084 | $ 6,177 |
Mortgage Payable (Details)
Mortgage Payable (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Mortgage Loans on Real Estate [Line Items] | |
2,017 | $ 265 |
2,018 | 265 |
2,019 | 265 |
2,020 | 265 |
2,021 | 265 |
Thereafter | 3,644 |
Long-term Debt, Total | $ 4,969 |
Mortgage Payable (Details Textu
Mortgage Payable (Details Textual) - Mortgage Loans [Member] | Oct. 15, 2015USD ($) |
Mortgage Loans on Real Estate [Line Items] | |
Debt Instrument, Face Amount | $ 5,300,000 |
Debt Instrument, Periodic Payment, Principal | $ 22,100 |
Debt Instrument, Term | 10 years |
Debt Instrument, Interest Rate Terms | 1.75% over LIBOR |
Debt Instrument, Maturity Year | 2,025 |
Notes Payable (Details Textual)
Notes Payable (Details Textual) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 19, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016EUR (€) | Jun. 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 | $ 200,000 | $ 40,008 | $ 27,922 | $ 275,000 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 40,000 | |||||||||
Excess Capital | 50,000 | |||||||||
Line of Credit Facility, Current Borrowing Capacity | 151,608 | 158,922 | ||||||||
Line of Credit Facility, Commitment Fee Amount | 8,416 | € 8,000 | ||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 10,091 | € 9,592 | 7,890 | € 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 | $ 1,235 | $ 1,500 | ||||||||
Committed Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 162,500 | 35,000 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 185,000 | |||||||||
Line of Credit Facility, Expiration Date | Jun. 19, 2017 | Jun. 19, 2017 | ||||||||
Uncommitted Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Amount Outstanding | $ 13,150 | € 12,500 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | 90,000 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 15,000 | |||||||||
Line of Credit Facility, Expiration Date | Jun. 19, 2017 | Jun. 19, 2017 | ||||||||
Rabobank Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Amount Outstanding | $ 4,208 | € 4,000 | ||||||||
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 Debt52
Convertible Subordinated Debt (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Jun. 03, 2011 | |
Debt Instrument [Line Items] | ||
Equity value | $ 29,846 | $ 36,811 |
Volatility | 60.00% | 70.00% |
Risk free return | 0.49% | 1.60% |
Dividend yield | 2.87% | 2.51% |
Strike price | $ 3.79 | $ 4.65 |
Convertible Subordinated Debt53
Convertible Subordinated Debt (Details Textual) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 01, 2016USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 03, 2011USD ($) | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 3.762 | |||
Convertible Subordinated Debt | $ 4,000 | |||
Unrealized Gain (Loss) on Derivatives | $ 942 | $ 1,792 | ||
Accounts Payable, Interest-bearing | 962 | |||
Related Party Loan Monthly Installment Upon Disagreement | $ 216 | 586 | ||
Related Party Loan Interest Rate Basis Upon Disagreement | 3.69% | |||
Amortization Of Intangible Assets | $ 0 | 321 | ||
Investment Income, Interest | 0 | 56 | ||
Derivative Liability | 0 | |||
Repayments of Convertible Debt | $ 11,000 | 11,000 | ||
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 | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral, Total | $ 2,829 | |||
Debt Instrument, Face Amount | $ 1 | $ 12,000 | ||
Supply Agreement With Pt. Alumindo [Member] | ||||
Debt Instrument [Line Items] | ||||
Related Party Loan Monthly Installment | $ 278 |
Stock Options (Details)
Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option [Line Items] | |||
Options outstanding and exercisable Number of Shares, Begining Balance | 50 | 400 | |
Options canceled, Shares | 0 | ||
Options exercised, Shares | 0 | ||
Options repurchased, Shares | (350) | ||
Options outstanding and exercisable Number of Shares, Ending Balance | 50 | 50 | 400 |
Options available for grant under 2006 Plan at December 31, 2015 | 0 | ||
Options outstanding and exercisable Weighted Average Exercise Price, Begining Balance | $ 1.63 | ||
Options repurchased, Weighted Average Exercise Price | $ 1.47 | ||
Options outstanding and exercisable Weighted Average Exercise Price, Ending Balance | $ 1.63 | $ 1.63 | |
Options outstanding and exercisable Weighted Average Exercise Price Remaining Contratual term | 2 years 8 months 16 days | 3 years 8 months 19 days | 4 years 8 months 23 days |
Options outstanding and exercisable Aggregate Intrinisic Value | $ 258 | $ 93 | $ 1,258 |
Stock Options (Details Textual)
Stock Options (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | May 20, 2015 | May 19, 2015 | |
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 | 350 | 350 | |
Payments for Stock Options | $ 0 | $ 922 | ||
Excess tax benefit related to purchase of stock options | 281 | |||
Additional Paid-in Capital [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payments for Stock Options | $ 922 | |||
Excess tax benefit related to purchase of stock options | $ 281 | |||
2006 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 559,000 |
TREASURY STOCK (Details Textual
TREASURY STOCK (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 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 | $ 549 | $ 1,583 | |
Repurchase One [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury stock acquired | $ 5,766 | 5,766 | |
Treasury Stock Shares Acquired Cost Method | 1,843 | ||
Repurchase Two [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury stock acquired | $ 549 | $ 1,583 | |
Treasury Stock Shares Acquired Cost Method | 130 | 375 |
ACCUMULATED OTHER COMPREHENSI57
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, Foreign currency translation | $ (666) | $ (334) |
Other comprehensive loss, Foreign Currency Translation | (7) | (332) |
Ending balance, Foreign Currency Translation | $ (673) | $ (666) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||
U.S. | $ 5,928 | $ 3,259 |
Foreign | (811) | 625 |
Income before income taxes | $ 5,117 | $ 3,884 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current | ||
U.S. Federal | $ 361 | $ 1,476 |
State and local | 131 | 607 |
Foreign | 69 | 225 |
Current Income Tax Expense (Benefit) | 561 | 2,308 |
Deferred | ||
U.S. Federal | 975 | (1,099) |
State and local | 280 | (134) |
Foreign | 0 | 0 |
Deferred income taxes | 1,255 | (1,233) |
Income Tax Expense (Benefit) | $ 1,816 | $ 1,075 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Taxes [Line Items] | |||
Provision for taxes at statutory rate of 34% | $ 1,740 | $ 1,321 | |
State and local taxes, net of federal tax effect | 301 | 312 | |
Permanent differences | [1] | (240) | (426) |
Provision for/(reversal of) prior year unrecognized tax benefits | 2 | (103) | |
Other | 13 | (29) | |
Income Tax Expense (Benefit) | $ 1,816 | $ 1,075 | |
[1] | Prinicipally related to the change in the value of derivative liability for the embedded conversion option |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred current tax assets | ||
Allowance for doubtful accounts | $ 452 | $ 447 |
Accrued expenses | 196 | 478 |
Inventories | 3,345 | 4,176 |
Derivative liability for embedded conversion option | 0 | 82 |
Deferred current tax assets, Total | 3,993 | 5,183 |
Deferred current tax liabilities | ||
Unamortized debt discount | 0 | (82) |
Deferred current tax liabilities, Total | 0 | (82) |
Net deferred current tax assets | 3,993 | 5,101 |
Deferred long-term tax liabilities | ||
Property and Equipment | (155) | (8) |
Deferred long-term tax liabilities, Total | (155) | (8) |
Net deferred long-term tax assets/(liabilities) | (155) | (8) |
Net deferred tax assets | $ 3,838 | $ 5,093 |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Income Taxes [Line Items] | ||||
Balance at January 1 | $ 67 | [1] | $ 170 | |
Reductions from settlements or filings with state tax authorities | 0 | 0 | ||
Reductions from lapse of statute of limitations | (3) | (20) | ||
Settlements | 0 | 0 | ||
Net increase for tax positions of prior years | 6 | |||
Net (decrease) for tax positions of prior years | (83) | |||
Balance at December 31 | [1] | $ 70 | $ 67 | |
[1] | Liability included in income taxes payable in the consolidated balance sheets. |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||
Percentage Of Withholding Tax | 5.00% | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 27 | $ 22 |
Unrecognized Tax Benefits, Value of Accrued Interest reversed | 5 | $ 44 |
MEXICO | ||
Income Taxes [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | 585 | |
IMBALI | ||
Income Taxes [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 3,297 |
Employee Retirement Benefits (D
Employee Retirement Benefits (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Year One [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 25.00% |
Year Two [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 50.00% |
Year Three [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 75.00% |
Year Four [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% |
Employee Retirement Benefits 65
Employee Retirement Benefits (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 2.00% | |
Condition For Forfeiture Of Non Vested Portion Of Matching Contribution | Employees who terminate prior to 100% vesting forfeit their non-vested portion of the Company’s matching contribution, | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 74 | $ 75 |
Per Share Data (Details)
Per Share Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||
Net income | $ 3,301 | $ 2,809 |
Add back of interest on convertible subordinated debt, net of taxes | 283 | 680 |
Add back of amortization of discount on convertible subordinated debt, net of taxes | 134 | 363 |
Adjustment for change in value of convertible note derivative, net of taxes | (859) | (1,569) |
Numerator for diluted earnings per share | $ 2,859 | $ 2,283 |
Denominator: | ||
Weighted average shares outstanding-basic (in shares) | 8,465 | 8,669 |
Dilutive effect of convertible subordinated debt (in shares) | 1,218 | 2,902 |
Dilutive effect of stock options (in shares) | 30 | 114 |
Weighted average shares outstanding-diluted (in shares) | 9,713 | 11,685 |
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.32 |
Diluted earnings per share (in dollars per share) | $ 0.29 | $ 0.20 |
Dividends (Details Textual)
Dividends (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jan. 11, 2017 | Oct. 07, 2016 | Jul. 14, 2016 | Dec. 30, 2016 | Sep. 30, 2016 | Jul. 22, 2016 | Apr. 12, 2016 | Mar. 23, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Dividends Payable [Line Items] | ||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.025 | ||||||
Payments of Dividends, Total | $ 339 | $ 340 | $ 212 | $ 1,104 | $ 1,101 | |||||
Subsequent Event [Member] | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Payments of Dividends, Total | $ 336 |
Business Segment and Geograph68
Business Segment and Geographic Area Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 458,864 | $ 521,736 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 338,564 | 385,729 |
Latin America [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,872 | 15,604 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 37,211 | 42,522 |
Australia & New Zealand [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 34,707 | 39,312 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 44,510 | $ 38,569 |
Commitments and Contingencies69
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies [Line Items] | |
2,017 | $ 353 |
2,018 | 361 |
2,019 | 368 |
2,020 | 361 |
2,021 | 358 |
Thereafter | 1,119 |
Operating Leases, Future Minimum Payments Due | $ 2,920 |
Commitments and Contingencies70
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 41,243 | $ 29,422 |
Operating Leases, Rent Expense | $ 421 | $ 317 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Subsequent Event [Member] $ / shares in Units, $ in Millions | 1 Months Ended |
Mar. 30, 2017USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Business Acquisition, Share Price | $ / shares | $ 7 |
Business Combination, Consideration Transferred | $ 58 |
Obligation To Pay Break-Up Fee | $ 1 |