Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | AG&E HOLDINGS INC. | |
Entity Central Index Key | 105,608 | |
Trading Symbol | wga | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 11,649,000 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 1,267,000 | $ 2,155,000 | $ 4,618,000 | $ 12,203,000 |
Cost of sales | 918,000 | 1,517,000 | 3,363,000 | 9,240,000 |
Gross margin | 349,000 | 638,000 | 1,255,000 | 2,963,000 |
Selling & administrative expenses | 934,000 | 973,000 | 3,432,000 | 3,114,000 |
Operating loss | (585,000) | (335,000) | (2,177,000) | (151,000) |
Other income, net | (1,000) | (1,000) | (38,000) | (3,000) |
Income tax expense | 1,000 | 0 | 2,000 | 4,000 |
Loss from continuing operations | (585,000) | (334,000) | (2,141,000) | (152,000) |
Discontinued Operations: | ||||
Earnings from discontinued operations | 0 | 0 | 0 | 88,000 |
Discontinued operations, net of income taxes | 0 | 0 | 0 | 88,000 |
Net loss | $ (585,000) | $ (334,000) | $ (2,141,000) | $ (64,000) |
Basic and Diluted earnings per share: | ||||
Continuing operations (in dollars per share) | $ (0.05) | $ (0.03) | $ (0.18) | $ (0.01) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net loss per share (in dollars per share) | $ (0.05) | $ (0.03) | $ (0.18) | $ (0.01) |
Basic and diluted average common shares outstanding (in shares) | 11,649,360 | 11,673,873 | 11,649,360 | 11,678,197 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 2,579,000 | $ 4,394,000 |
Accounts receivable, net | 611,000 | 723,000 |
Inventory | 478,000 | 584,000 |
Prepaid expenses & other assets | 156,000 | 290,000 |
Total current assets | 3,824,000 | 5,991,000 |
Property, plant & equipment, net | 15,000 | 32,000 |
Total assets | 3,839,000 | 6,023,000 |
Current liabilities: | ||
Accounts payable | 440,000 | 457,000 |
Accrued expenses | 163,000 | 208,000 |
Total current liabilities | 603,000 | 665,000 |
Total liabilities | 603,000 | 665,000 |
Shareholders' Equity: | ||
Common stock: authorized 25,000,000 shares $1.00 par value; shares issued and outstanding: 11,649,360 shares as of September 30, 2016 11,649,360 shares as of December 31, 2015 | 11,649,000 | 11,649,000 |
Additional paid-in capital | 5,090,000 | 5,090,000 |
Accumulated deficit | (13,471,000) | (11,330,000) |
Unearned compensation | (32,000) | (51,000) |
Total shareholders' equity | 3,236,000 | 5,358,000 |
Total liabilities & shareholders' equity | $ 3,839,000 | $ 6,023,000 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 11,649,360 | 11,649,360 |
Common stock, shares outstanding (in shares) | 11,649,360 | 11,649,360 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||||
Net (oss | $ (585,000) | $ (334,000) | $ (2,141,000) | $ (64,000) |
Net earnings from discontinued operations | 0 | 0 | 0 | 88,000 |
Net loss from continuing operations | (585,000) | (334,000) | (2,141,000) | (152,000) |
Adjustments to reconcile net ( loss) earnings to net cash used in operating activities: | ||||
Depreciation and amortization | 6,000 | 7,000 | 17,000 | 33,000 |
Bad debt expense | 0 | (62,000) | 1,000 | (9,000) |
Amortization of unearned compensation | 6,000 | 5,000 | 19,000 | 31,000 |
Gain on sale of fixed assets | 0 | 0 | (33,000) | 0 |
Decrease of long term receivable | 0 | 0 | 0 | 96,000 |
Changes in current assets & liabilities | ||||
Accounts receivable | 9,000 | 2,480,000 | 111,000 | 1,055,000 |
Inventory | 4,000 | (107,000) | 106,000 | 3,332,000 |
Prepaid expenses & other | 38,000 | (61,000) | 134,000 | 133,000 |
Accounts payable | 29,000 | (526,000) | (17,000) | (341,000) |
Accrued expenses | (72,000) | (232,000) | (45,000) | (1,362,000) |
Net cash (used in) provided by operating activities | (565,000) | 1,170,000 | (1,848,000) | 2,816,000 |
Cash (used in) provided by investing activities: | ||||
Proceeds from sale of fixed assets | 0 | 0 | 33,000 | 0 |
Proceeds from sale of discontinued operations | 0 | 0 | 0 | 77,000 |
Additions to plant & equipment | 0 | (1,000) | 0 | (2,000) |
Net cash (used in) provided by investing activities | 0 | (1,000) | 33,000 | 76,000 |
Cash used in financing activities: | ||||
Cash Dividend paid | 0 | (5,251,000) | 0 | (5,251,000) |
Net Cash used in financing activities | 0 | (5,251,000) | 0 | (5,251,000) |
Net decrease in cash | (565,000) | (4,082,000) | (1,815,000) | (2,360,000) |
Cash at beginning of period | 3,144,000 | 8,581,000 | 4,394,000 | 6,859,000 |
Cash at end of period | 2,579,000 | 4,499,000 | 2,579,000 | 4,499,000 |
Supplemental cash flow disclosure: | ||||
Interest paid | 0 | 0 | 0 | 0 |
Taxes paid | $ 0 | $ 0 | $ 0 | $ 4,000 |
Note 1
Note 1 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. AG&E Holdings Inc. (the “Company) through its wholly owned subsidiary American Gaming & Electronics, Inc. (“AG&E”) distributes parts and repairs and services gaming equipment and provides replacement monitors to casinos throughout the United States with offices in Las Vegas, Nevada and Hialeah, Florida. |
Note 2
Note 2 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the financial position and results of operations for the periods presented. These condensed consolidated financial statements were prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information or footnotes necessary for a complete presentation in conformity with accounting principles generally accepted in the United States. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three months and nine months ended September 30, 2016 are not necessarily indicative of the operating results for the full year. |
Note 3
Note 3 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. Basic earnings per share are based on the weighted average number of shares outstanding whereas diluted earnings per share include the dilutive effect of unexercised common stock equivalents. Potentially dilutive securities are excluded from diluted earnings per share calculations for periods with a net loss. |
Note 4
Note 4 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 4. Revenue from video gaming terminal sales with standard payment terms is recognized upon the passage of title and transfer of the risk of loss. The Company recognizes revenue even if it retains a form of title to products delivered to customers, provided the sole purpose is to enable the Company to recover the products in the event of a customer payment default and the arrangement does not prohibit the customer’s use of the product in the ordinary course of business. |
Note 5
Note 5 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5 |
Note 6
Note 6 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | 6. Certain amounts in previously issued financial statements have been reclassified to conform to the current year’s presentation. |
Note 7
Note 7 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 7. Discontinued Operations On September 12, 2014, the Company sold its LCD monitor business for approximately $7.2 million in cash. Due to the divestiture of the LCD business, reporting of this business has been included in discontinued operations for all periods presented. The following amounts related to the discontinued operations were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Condensed Consolidated Statement of Earnings: Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 Net sales $ 0 $ 0 $ 0 $ 0 Earnings from discontinued operations $ 0 $ 0 $ 0 $ 88,000 Discontinued operations, net of income taxes $ 0 $ 0 $ 0 $ 88,000 The earnings of $88,000 in the nine months ended September 30, 2015 is related to a reduction of the bad debt accruals of $60,000, a reduction in general accruals of $38,000 offset by an additional $10,000 of union pension settlement expense. |
Note 8
Note 8 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 8. Restricted Shares All restricted shares granted are governed by the Company’s Stock Award Plan, which was approved by shareholders in 2000 and amended in 2009. As of September 30, 2016, 36,000 restricted shares were outstanding on a stock dividend adjusted basis. Employees can earn the restricted shares in exchange for services to be provided to the Company over a three-year or five-year vesting period. Total unrecognized compensation cost related to unvested stock awards is approximately $32,000 and is expected to be recognized over a weighted average period of 1.25 years. The following table summarizes information regarding restricted share activity for the nine months ending September 30, 2016: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2015 56,283 $ 2.02 Granted 0 $ 0.00 Vested (20,283 ) $ 2.12 Forfeited 0 $ 0.00 Unvested, September 30, 2016 36,000 $ 2.00 |
Note 9
Note 9 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 9. Our inventory detail as of September 30, 2016 and December 31, 2015 was as follows: September 30, December 31, (in $000's) 2016 2015 (unaudited) Inventory: Raw materials $ 478 $ 584 Total $ 478 $ 584 |
Note 10
Note 10 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. On October 30, 2014, the Company terminated its credit facility with Wells Fargo Bank, N.A. Therefore, as of September 30, 2016, the Company had no outstanding bank debt. |
Note 11
Note 11 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. An income tax valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has net deferred tax assets of approximately $5.8 million at September 30, 2016, which are completely offset by a valuation allowance. As of September 30, 2016, the Company has net operating loss carry forwards for Federal income tax purposes of approximately $12,960,000, which are available to offset future Federal taxable income, if any, that begin to expire in 2021. The Company also has a net operating loss carry forward for Illinois state income tax purposes of approximately $12,432,000 as of September 30, 2016. The Company also has alternative minimum tax credit carry forwards of approximately $148,000, which are available to reduce future Federal regular income taxes, if any, over an indefinite period. No unrecognized tax benefits are set to expire in the next twelve months that may have an impact upon the Company’s effective tax rate. The Company files tax returns in the U.S. federal jurisdiction and various state jurisdictions. The tax years 2013, 2014 and 2015 remain open to examinations. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the nine months ended September 30, 2016, the Company did not recognize expense for interest or penalties related to income tax, and do not have any amounts accrued at September 30, 2016, as the Company does not believe it has taken any uncertain income tax positions. |
Note 12
Note 12 | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 12. The Company has evaluated subsequent events through the date the condensed consolidated financial statements were issued for the three months and nine months ended September 30, 2016. |
Note 7 (Tables)
Note 7 (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Statement [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended September 30 Nine Months Ended September 30 2016 2015 2016 2015 Net sales $ 0 $ 0 $ 0 $ 0 Earnings from discontinued operations $ 0 $ 0 $ 0 $ 88,000 Discontinued operations, net of income taxes $ 0 $ 0 $ 0 $ 88,000 |
Note 8 (Tables)
Note 8 (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2015 56,283 $ 2.02 Granted 0 $ 0.00 Vested (20,283 ) $ 2.12 Forfeited 0 $ 0.00 Unvested, September 30, 2016 36,000 $ 2.00 |
Note 9 (Tables)
Note 9 (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, (in $000's) 2016 2015 (unaudited) Inventory: Raw materials $ 478 $ 584 Total $ 478 $ 584 |
Note 7 (Details Textual)
Note 7 (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 12, 2014 | |
LCD Monitor [Member] | Reduction of Bad Debt Accrual [Member] | |||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | $ 60,000 | ||||
LCD Monitor [Member] | Reduction in General Accruals [Member] | |||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 38,000 | ||||
LCD Monitor [Member] | Additional Union Pension Settlement Expense [Member] | |||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 10,000 | ||||
LCD Monitor [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 7,200,000 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | $ 0 | $ 0 | $ 0 | 88,000 | |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | $ 0 | $ 0 | $ 0 | $ 88,000 |
Note 7 (Details)
Note 7 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
LCD Monitor [Member] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 0 | 0 | 0 | 88,000 |
Discontinued operations, net of income taxes | 0 | 0 | 0 | 88,000 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 0 | 0 | 0 | 88,000 |
Discontinued operations, net of income taxes | $ 0 | $ 0 | $ 0 | $ 88,000 |
Note 8 (Details Textual)
Note 8 (Details Textual) | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Restricted Stock [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Restricted Stock [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 36,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 32,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 91 days |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,155,028 |
Note 8 (Details)
Note 8 (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Unvested (in shares) | shares | 56,283 |
Unvested (in dollars per share) | $ / shares | $ 2.02 |
Granted (in shares) | shares | 0 |
Granted (in dollars per share) | $ / shares | $ 0 |
Vested (in shares) | shares | (20,283) |
Vested (in dollars per share) | $ / shares | $ 2.12 |
Forfeited (in shares) | shares | 0 |
Forfeited (in dollars per share) | $ / shares | $ 0 |
Unvested (in shares) | shares | 36,000 |
Unvested (in dollars per share) | $ / shares | $ 2 |
Note 9 (Details)
Note 9 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory: | ||
Raw materials | $ 478 | $ 584 |
Total | $ 478 | $ 584 |
Note 10 (Details Textual)
Note 10 (Details Textual) | Sep. 30, 2016USD ($) |
Debt, Current | $ 0 |
Note 11 (Details Textual)
Note 11 (Details Textual) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Tax Year 2013 [Member] | |
Open Tax Year | 2,013 |
Tax Year 2014 [Member] | |
Open Tax Year | 2,014 |
Latest Tax Year [Member] | |
Open Tax Year | 2,015 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards | $ 12,960,000 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards | 12,432,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 |
Deferred Tax Assets, Gross | 5,800,000 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 148,000 |