Houston Wire & Cable (HWCC) 10-Q 10 Aug 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 01, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	000-52046
Entity Registrant Name	Houston Wire & Cable CO
Entity Central Index Key	0001356949
Entity Tax Identification Number	36-4151663
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	10201 North Loop East
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77029
City Area Code	(713)
Local Phone Number	609-2100
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	HWCC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,555,248

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash	$ 5,696	$ 4,096
Accounts receivable, net:
Trade	43,593	50,325
Other	2,921	6,640
Inventories, net	106,018	114,069
Income taxes	1,314	1,353
Prepaids and other current assets	2,885	1,833
Total current assets	162,427	178,316
Property and equipment, net	15,774	14,589
Intangible assets, net	9,521	10,282
Goodwill	22,353	22,353
Deferred income taxes	900	600
Operating lease right-of-use assets, net	12,244	13,481
Other assets	380	527
Total assets	223,599	240,148
Current liabilities:
Trade accounts payable	10,212	13,858
Accrued and other current liabilities	14,932	23,261
Operating lease liabilities	2,803	2,742
Total current liabilities	27,947	39,861
Revolver Debt	74,540	83,500
Paycheck Protection Program Loan	6,185
Operating lease long term liabilities	9,946	11,182
Other long term liabilities	2,227	1,977
Total liabilities	120,845	136,520
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value; 100,000,000 shares authorized: 20,988,952 shares issued: 16,591,818 and 16,556,950 outstanding at June 30, 2020 and December 31, 2019, respectively	21	21
Additional paid-in-capital	52,484	52,304
Retained earnings	107,008	108,626
Treasury stock, at cost	(56,759)	(57,323)
Total stockholders’ equity	102,754	103,628
Total liabilities and stockholders’ equity	$ 223,599	$ 240,148

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	20,988,952	20,988,952
Common stock, outstanding	16,591,818	16,556,950

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Sales	$ 66,777	$ 85,326	$ 150,310	$ 170,596
Cost of sales	52,541	64,789	116,482	128,800
Gross profit	14,236	20,537	33,828	41,796
Operating expenses:
Salaries and commissions	8,407	9,244	17,881	18,424
Other operating expenses	7,029	7,729	14,594	15,392
Depreciation and amortization	815	534	1,582	1,087
Impairment charge	173		373
Total operating expenses	16,424	17,507	34,430	34,903
Operating income (loss)	(2,188)	3,030	(602)	6,893
Interest expense	474	738	1,287	1,479
Income (loss) before income taxes	(2,662)	2,292	(1,889)	5,414
Income tax (benefit) expense	(499)	649	(271)	1,487
Net income (loss)	$ (2,163)	$ 1,643	$ (1,618)	$ 3,927
Earnings (loss) per share:
Basic	$ (0.13)	$ 0.10	$ (0.10)	$ 0.24
Diluted	$ (0.13)	$ 0.10	$ (0.10)	$ 0.24
Weighted average common shares outstanding:
Basic	16,442,493	16,504,471	16,414,976	16,491,236
Diluted	16,442,493	16,597,496	16,414,976	16,571,113

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance, value at Dec. 31, 2018	$ 21	$ 53,514	$ 105,975	$ (58,832)	$ 100,678
Balance at Beginning (in shares) at Dec. 31, 2018	20,988,952			(4,377,301)
Net income			2,284		2,284
Amortization of unearned stock compensation		342			342
Repurchase of treasury shares				$ (8)	(8)
Repurchase of treasury shares (in shares)				(1,506)
Ending balance, value at Mar. 31, 2019	$ 21	53,856	108,360	$ (58,824)	103,413
Balance at Ending (in shares) at Mar. 31, 2019	20,988,952			(4,376,556)
Settlement of director’s deferred compensation				$ 16	16
Settlement of director's deferred compensation (in shares)				2,251
Cumulative effect of accounting change			101		101
Beginning balance, value at Dec. 31, 2018	$ 21	53,514	105,975	$ (58,832)	100,678
Balance at Beginning (in shares) at Dec. 31, 2018	20,988,952			(4,377,301)
Net income					3,927
Ending balance, value at Jun. 30, 2019	$ 21	53,620	110,003	$ (58,296)	105,348
Balance at Ending (in shares) at Jun. 30, 2019	20,988,952			(4,343,770)
Beginning balance, value at Mar. 31, 2019	$ 21	53,856	108,360	$ (58,824)	103,413
Balance at Beginning (in shares) at Mar. 31, 2019	20,988,952			(4,376,556)
Net income			1,643		1,643
Amortization of unearned stock compensation		365			365
Impact of released vested restricted stock units		(601)		$ 601
Impact of released vested restricted stock units (in shares)				44,737
Repurchase of treasury shares				$ (73)	(73)
Repurchase of treasury shares (in shares)				(11,951)
Ending balance, value at Jun. 30, 2019	$ 21	53,620	110,003	$ (58,296)	105,348
Balance at Ending (in shares) at Jun. 30, 2019	20,988,952			(4,343,770)
Beginning balance, value at Dec. 31, 2019	$ 21	52,304	108,626	$ (57,323)	103,628
Balance at Beginning (in shares) at Dec. 31, 2019	20,988,952			(4,432,002)
Net income			545		545
Amortization of unearned stock compensation		328			328
Impact of released vested restricted stock units		(356)		$ 356
Impact of released vested restricted stock units (in shares)				27,510
Ending balance, value at Mar. 31, 2020	$ 21	52,276	109,171	$ (56,967)	104,501
Balance at Ending (in shares) at Mar. 31, 2020	20,988,952			(4,404,492)
Beginning balance, value at Dec. 31, 2019	$ 21	52,304	108,626	$ (57,323)	103,628
Balance at Beginning (in shares) at Dec. 31, 2019	20,988,952			(4,432,002)
Net income					(1,618)
Ending balance, value at Jun. 30, 2020	$ 21	52,484	107,008	$ (56,759)	102,754
Balance at Ending (in shares) at Jun. 30, 2020	20,988,952			(4,397,134)
Beginning balance, value at Mar. 31, 2020	$ 21	52,276	109,171	$ (56,967)	104,501
Balance at Beginning (in shares) at Mar. 31, 2020	20,988,952			(4,404,492)
Net income			(2,163)		(2,163)
Amortization of unearned stock compensation		440			440
Impact of released vested restricted stock units		(232)		$ 232
Impact of released vested restricted stock units (in shares)				18,026
Repurchase of treasury shares				$ (24)	(24)
Repurchase of treasury shares (in shares)				(10,668)
Ending balance, value at Jun. 30, 2020	$ 21	$ 52,484	$ 107,008	$ (56,759)	$ 102,754
Balance at Ending (in shares) at Jun. 30, 2020	20,988,952			(4,397,134)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities
Net income (loss)	$ (1,618)	$ 3,927
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Impairment charge	373
Depreciation and amortization	1,582	1,087
Amortization of unearned stock compensation	768	707
Non-cash lease expense	1,793	1,968
Provision for refund liability	77	471
Provision for inventory obsolescence	1,273	459
Deferred income taxes	(300)	460
Other non-cash items	68	83
Changes in operating assets and liabilities:
Accounts receivable	10,374	75
Inventories	6,778	(12,407)
Prepaids	(952)	(1,371)
Other assets	18	(550)
Lease payments	(1,800)	(1,963)
Book overdraft		330
Trade accounts payable	(3,646)	2,106
Accrued and other current liabilities	(8,702)	2,235
Income taxes	39	(142)
Other operating activities	250	359
Net cash provided by (used in) operating activities	6,375	(2,166)
Investing activities
Expenditures for property and equipment	(1,626)	(875)
Net cash used in investing activities	(1,626)	(875)
Financing activities
Borrowings on revolver	162,681	175,417
Payments on revolver	(171,641)	(173,626)
Proceeds from Paycheck Protection Program loan	6,185
Payment of dividends	(1)	(30)
Purchase of treasury stock/stock surrendered on vested awards	(24)	(65)
Lease payments	(349)	(48)
Net cash (used in) provided by financing activities	(3,149)	1,648
Net change in cash	1,600	(1,393)
Cash at beginning of period	4,096	1,393
Cash at end of period	5,696
Supplemental disclosures of non-cash activities
Purchase of assets under finance leases	$ 752	$ 407

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	1. Basis of Presentation and Principles of Consolidation Houston Wire & Cable Company (the “Company”), through its wholly owned subsidiaries, provides industrial products including electrical wire and cable, steel wire rope and hardware, and fasteners to the U.S. market through twenty-one fourteen The consolidated financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 have been prepared following accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the results of these interim periods have been included. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. All significant intercompany balances and transactions have been eliminated. The Company has evaluated subsequent events through the time these financial statements in this Form 10-Q were filed with the Securities and Exchange Commission (the “SEC”). The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The most significant estimates are those relating to the allowance for doubtful accounts, the refund liability, the inventory obsolescence reserve, vendor rebates, the realization of deferred tax assets and the valuation of goodwill and indefinite-lived assets. Actual results could differ materially from the estimates and assumptions used for the preparation of the financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC. Risks and Uncertainties The Company is currently subject to additional risks and uncertainties due to the COVID-19 pandemic. The pandemic, and governmental and other actions taken in response to it, have had an adverse effect on the demand for the Company’s products and on its results of operations, and the virus continues to spread. Capital markets and economies worldwide have been negatively impacted by the COVID-19 pandemic, and it is possible that the impact could cause an extended local and/or global economic recession. Such economic disruption could have a material adverse effect on our business as companies in many industries curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support specific industries and their economies as a whole. However, the overall effectiveness of these actions remains uncertain. The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be materially adversely affected by delays in payments of outstanding receivables, supply chain disruptions, uncertain or reduced demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these financial statements, the extent to which the COVID-19 pandemic may materially adversely affect the Company’s financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Standards The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are ASUs that were recently adopted by the Company. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update eliminate, add and modify certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. The Company adopted this ASU in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40); Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The amendments in this update require implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the non-cancellable term of the cloud computing arrangement plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company adopted this ASU in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses.” This ASU, among other narrow-scope improvements, clarifies guidance around how to report expected recoveries. This ASU permits organizations to record expected recoveries on assets purchased with credit deterioration. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The effective date and transition methodology are the same as in ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB deferred the effective dates of these ASUs for smaller reporting companies (“SRC”) to fiscal years beginning after December 15, 2022. As of June 30, 2020, the Company qualifies as a SRC and expects to adopt these ASUs in the first quarter of 2023. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether certain exceptions apply in a given period. This ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: a) Franchise taxes that are partially based on income; b) Transactions with a government that result in a step up in the tax basis of goodwill; c) Separate financial statements of legal entities that are not subject to tax; and d) Enacted changes in tax laws in interim periods. For public business entities, ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently assessing the impact of this ASU on its consolidated financial statements.

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings per Share	2. Earnings per Share Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings per share include the dilutive effects of options and unvested restricted stock awards and units. The following reconciles the denominator used in the calculation of diluted earnings (loss) per share Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Denominator: Weighted average common shares outstanding for basic earnings per share 16,442,493 16,504,471 16,414,976 16,491,236 Effect of dilutive securities — 93,025 — 79,877 Weighted average common shares outstanding for diluted earnings per share 16,442,493 16,597,496 16,414,976 16,571,113 Stock awards to purchase 940,682 275,494 961,526 286,141

Debt

Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	3. Debt On March 12, 2019 and December 10, 2019, the Company, as guarantor, HWC Wire & Cable Company and Vertex, as borrowers, and Bank of America, N.A., as agent and lender, entered into a Second and Third Amendments, respectively, to the Fourth Amended and Restated Loan and Security Agreement (such agreement, as so amended, the “Loan Agreement”). The Second Amendment extends the expiration date until March 12, 2024 115 50 Portions of the loan may be converted to LIBOR loans in minimum amounts of $1.0 million and integral multiples of $0.1 million. LIBOR loans bear interest at the British Bankers Association LIBOR Rate plus 100 to 150 basis points based on availability, and loans not converted to LIBOR loans bear interest at a fluctuating rate equal to the greatest of the agent’s prime rate, the federal funds rate plus 50 basis points, or 30-day LIBOR plus 150 basis points. 25 Availability under the Loan Agreement is limited to a borrowing base equal to 85 70 90 The Loan Agreement is secured by substantially all of the property of the Company, other than real estate. The Loan Agreement includes, among other things, covenants that require the Company to maintain a specified minimum fixed charge coverage ratio, unless certain availability levels exist. Additionally, the Loan Agreement allows for the unlimited payment of dividends and repurchases of stock, subject to the absence of events of default and maintenance of a fixed charge coverage ratio and minimum level of availability. The Loan Agreement contains certain provisions that may cause the debt to be classified as a current liability, in accordance with GAAP, if availability falls below certain thresholds, even though the ultimate maturity date under the Loan Agreement remains March 12, 2024. At June 30, 2020, the Company was in compliance with the availability-based covenants governing its indebtedness. The carrying amount of long-term debt approximates fair value as it bears interest at variable rates. The fair value is a Level 2 measurement as defined in ASC Topic 820, “Fair Value Measurement.” On May 4, 2020, the Company received a $ 6.2 million 80 90 60 40 the interest rate on the balance of the loan will not exceed 1.0% per annum.

Impairment of Goodwill and Inta

Impairment of Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of Goodwill and Intangible Assets	4. Impairment of Goodwill and Intangible Assets The Company tests goodwill and indefinite lived intangibles for impairment at least annually or more frequently whenever events or circumstances occur indicating that it might be impaired. During the first and second quarter of 2020, the Company’s market capitalization declined significantly, driven by current macroeconomic and geopolitical conditions due in large part to the COVID-19 outbreak, which has contributed to a decline in demand for the Company’s products, a decline in overall financial performance, partially due to the decline in oil prices, and decline in industry and market conditions. Based on these events, the Company concluded that it was more-likely-than-not that the fair values of certain of its reporting units were less than their carrying values. Therefore, the Company performed an interim goodwill impairment test for both the first and second quarter. Goodwill impairment is evaluated at each of the four 12.5 million 9.8 million 0.1 million 0.1 million 0.2 million

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The effective tax rate for the six months ended June 30, 2020 was 14.3 27.5 The CARES Act was signed into law on March 27, 2020. The CARES Act contains several tax law changes for corporations, including modifications for net operating loss carrybacks, the refundability of prior-year minimum tax liability, limitations on business interest and limitations on charitable contribution deductions. These benefits did not impact the Company’s tax provision for the three months ended June 30, 2020.

Incentive Plans

Incentive Plans	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Incentive Plans	6. Incentive Plans Stock Option Awards There were no Restricted Stock Awards and Restricted Stock Units On June 26, 2020, the Board of Directors granted 10,000 June 26, 2021 June 26, 2022 Following the Annual Meeting of Stockholders on May 7, 2019, the Company granted restricted stock units with a grant date value of $ 60,000 58,920 On March 12, 2019, the Board of Directors granted 52,910 13,228 December 31, 2021 three year Total stock-based compensation cost was $ 0.4 million 0.8 million 0.7 million

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies The Company had outstanding under the Loan Agreement letters of credit totaling $ 0.7 million From time to time, the Company is involved in lawsuits that are brought against it in the normal course of business. The Company is not currently a party to any legal proceedings that it expects, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position, cash flows, or results from operations.

Basis of Presentation and Pri_2

Basis of Presentation and Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Risks and Uncertainties	Risks and Uncertainties The Company is currently subject to additional risks and uncertainties due to the COVID-19 pandemic. The pandemic, and governmental and other actions taken in response to it, have had an adverse effect on the demand for the Company’s products and on its results of operations, and the virus continues to spread. Capital markets and economies worldwide have been negatively impacted by the COVID-19 pandemic, and it is possible that the impact could cause an extended local and/or global economic recession. Such economic disruption could have a material adverse effect on our business as companies in many industries curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support specific industries and their economies as a whole. However, the overall effectiveness of these actions remains uncertain. The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be materially adversely affected by delays in payments of outstanding receivables, supply chain disruptions, uncertain or reduced demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these financial statements, the extent to which the COVID-19 pandemic may materially adversely affect the Company’s financial condition, liquidity, or results of operations is uncertain.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are ASUs that were recently adopted by the Company. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update eliminate, add and modify certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project. The Company adopted this ASU in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40); Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The amendments in this update require implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the non-cancellable term of the cloud computing arrangement plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company adopted this ASU in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses.” This ASU, among other narrow-scope improvements, clarifies guidance around how to report expected recoveries. This ASU permits organizations to record expected recoveries on assets purchased with credit deterioration. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The effective date and transition methodology are the same as in ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB deferred the effective dates of these ASUs for smaller reporting companies (“SRC”) to fiscal years beginning after December 15, 2022. As of June 30, 2020, the Company qualifies as a SRC and expects to adopt these ASUs in the first quarter of 2023. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether certain exceptions apply in a given period. This ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: a) Franchise taxes that are partially based on income; b) Transactions with a government that result in a step up in the tax basis of goodwill; c) Separate financial statements of legal entities that are not subject to tax; and d) Enacted changes in tax laws in interim periods. For public business entities, ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently assessing the impact of this ASU on its consolidated financial statements.

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
The following reconciles the denominator used in the calculation of diluted earnings (loss) per share	The following reconciles the denominator used in the calculation of diluted earnings (loss) per share Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Denominator: Weighted average common shares outstanding for basic earnings per share 16,442,493 16,504,471 16,414,976 16,491,236 Effect of dilutive securities — 93,025 — 79,877 Weighted average common shares outstanding for diluted earnings per share 16,442,493 16,597,496 16,414,976 16,571,113

Basis of Presentation and Pri_3

Basis of Presentation and Principles of Consolidation (Details Narrative)	6 Months Ended
	Jun. 30, 2020Number
Accounting Policies [Abstract]
Number of location	21
Number of states	14

The following reconciles the de

The following reconciles the denominator used in the calculation of diluted earnings (loss) per share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Denominator:
Weighted average common shares outstanding for basic earnings per share	16,442,493	16,504,471	16,414,976	16,491,236
Effect of dilutive securities		93,025		79,877
Weighted average common shares outstanding for diluted earnings per share	16,442,493	16,597,496	16,414,976	16,571,113

Earnings per Share (Details Nar

Earnings per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Options to purchase stock awards	940,682	275,494	961,526	286,141

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	May 04, 2020	Dec. 10, 2019	Mar. 12, 2019	Jun. 30, 2020
Line of Credit Facility [Line Items]
Description of loan converted				Portions of the loan may be converted to LIBOR loans in minimum amounts of $1.0 million and integral multiples of $0.1 million.
Description of interest rate				LIBOR loans bear interest at the British Bankers Association LIBOR Rate plus 100 to 150 basis points based on availability, and loans not converted to LIBOR loans bear interest at a fluctuating rate equal to the greatest of the agent’s prime rate, the federal funds rate plus 50 basis points, or 30-day LIBOR plus 150 basis points.
Percentage of unused capacity commitment fee				25.00%
Payroll Protection Program [Member] | Bank Of America [Member]
Line of Credit Facility [Line Items]
Loan face amount	$ 6,200,000
Payroll related expenses	60.00%
Non-payroll expenses	40.00%
Loan interest rate	the interest rate on the balance of the loan will not exceed 1.0% per annum.
Payroll Protection Program [Member] | Bank Of America [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Forgiveness percentage	80.00%
Payroll Protection Program [Member] | Bank Of America [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Forgiveness percentage	90.00%
Second Amended And Restated Loan And Security Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Minimum amount outstanding			Mar. 12, 2024
Third Amended And Restated Loan And Security Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Minimum amount outstanding		$ 115,000,000,000
Additional commitment amount		$ 50,000,000,000
Fourth Amended and Restated Loan and Security Agreement (the 2015 Loan Agreement) [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Percentage of the value of eligible accounts receivable				85.00%
Percentage of the value of eligible inventory				70.00%
Percentage of the value of net orderly liquidation				90.00%
Description of collateral				The Loan Agreement is secured by substantially all of the property of the Company, other than real estate.

Impairment of Goodwill and In_2

Impairment of Goodwill and Intangible Assets (Details Narrative)	1 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2020USD ($)Number	Dec. 31, 2019USD ($)
Indefinite-lived Intangible Assets [Line Items]
Number of reporting units | Number			4
Goodwill	$ 22,353,000		$ 22,353,000	$ 22,353,000
Southern Wire Reporting Unit [Member]
Indefinite-lived Intangible Assets [Line Items]
Goodwill	12,500,000		12,500,000
Vertex Reporting Unit [Member]
Indefinite-lived Intangible Assets [Line Items]
Goodwill	9,800,000		$ 9,800,000
Vertex Reporting Unit [Member] | Trade Names [Member]
Indefinite-lived Intangible Assets [Line Items]
Impairment charge	100,000
Southwest Reporting Unit [Member] | Trade Names [Member]
Indefinite-lived Intangible Assets [Line Items]
Impairment charge	$ 100,000	$ 200,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	14.30%	27.50%

Incentive Plans (Details Narrat

Incentive Plans (Details Narrative) - USD ($)	Jun. 26, 2020	May 07, 2019	Mar. 12, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards granted						0	0
Stock-based compensation cost						$ 768,000	$ 707,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting date			Dec. 31, 2021
Term of vesting period			3 years
Board of Directors Chairman [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units grants	10,000
Board of Directors Chairman [Member] | Restricted Stock [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting date	Jun. 26, 2021
Board of Directors Chairman [Member] | Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting date	Jun. 26, 2022
Non Employee Directors [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units grants		58,920
Number of units grants, value		$ 60,000
President And Chief Executive Officer [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted under plan			52,910
Chief Financial Officer [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted under plan			13,228
Employees And Non Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation cost				$ 400,000	$ 400,000	$ 800,000	$ 700,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	Jun. 30, 2020USD ($)
Loan Agreement [Member] | Vendors [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Outstanding line of credit	$ 700,000