Tile Shop (TTSH) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Entity Registrant Name	TILE SHOP HOLDINGS, INC.
Entity Central Index Key	1,552,800
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		51,320,463
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 12,829	$ 5,759
Trade receivables, net	2,261	1,712
Inventories	64,590	68,857
Income tax receivable	667	4,937
Deferred tax and other current assets	7,617	7,268
Total Current Assets	87,964	88,533
Property, plant and equipment, net	134,805	139,294
Deferred tax and other assets	26,865	24,363
Total Assets	249,634	252,190
Current liabilities:
Accounts payable	15,804	$ 13,759
Income tax payable	4,290
Other accrued liabilities	22,161	$ 18,393
Total Current Liabilities	42,255	32,152
Long-term debt, net	63,805	88,525
Capital lease obligation, net	838	890
Deferred rent	34,793	33,163
Other long-term liabilities	3,429	3,765
Total Liabilities	145,120	158,495
Stockholders’ Equity:
Common stock, par value $0.0001; authorized: 100,000,000 shares; issued and outstanding: 51,316,713 and 51,314,005 shares, respectively	$ 5	$ 5
Preferred stock, par value $0.0001; authorized: 10,000,000 shares; issued and outstanding: 0 shares
Additional paid-in-capital	$ 177,040	$ 174,371
Accumulated deficit	(72,532)	$ (80,681)
Accumulated other comprehensive income	1
Total Stockholders' Equity	104,514	$ 93,695
Total Liabilities and Stockholders' Equity	$ 249,634	$ 252,190

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized (in shares)	100,000,000	100,000,000
Common Stock, Shares Issued (in shares)	51,316,713	51,314,005
Common Stock, Shares Outstanding (in shares)	51,316,713	51,314,005
Preferred Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized (in shares)	10,000,000	10,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Preferred Stock, Shares Outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net sales	$ 75,706	$ 66,665	$ 148,669	$ 131,044
Cost of sales	24,413	20,163	46,405	39,609
Gross profit	51,293	46,502	102,264	91,435
Selling, general and administrative expenses	42,855	39,382	86,631	77,355
Income from operations	8,438	7,120	15,633	14,080
Interest expense	795	735	1,598	1,445
Other income (expense)	34	(4)	63	(72)
Income before income taxes	7,677	6,381	14,098	12,563
Provision for income taxes	(3,187)	(2,553)	(5,949)	(5,025)
Net income	$ 4,490	$ 3,828	$ 8,149	$ 7,538
Income per common share:
Basic (in dollars per share)	$ 0.09	$ 0.08	$ 0.16	$ 0.15
Diluted (in dollars per share)	$ 0.09	$ 0.07	$ 0.16	$ 0.15
Weighted average shares outstanding:
Basic (in shares)	51,125,985	51,003,063	51,125,605	51,001,589
Diluted (in shares)	51,388,602	51,323,770	51,212,955	51,361,967

Condensed Consolidates Statemen

Condensed Consolidates Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 4,490	$ 3,828	$ 8,149	$ 7,538
Other comprehensive income, net of tax
Currency translation adjustment	1		1
Other comprehensive income	1		1
Comprehensive income	$ 4,491	$ 3,828	$ 8,150	$ 7,538

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at (in shares) at Dec. 31, 2013	51,229,720
Balance at at Dec. 31, 2013	$ 5	$ 169,719		$ (91,228)		$ 78,496
Issuance of restricted shares (in shares)	76,066
Stock based compensation		4,617				4,617
Stock option exercises (in shares)	8,219
Stock option exercises		35				35
Net income				10,547		$ 10,547
Balance at (in shares) at Dec. 31, 2014	51,314,005					51,314,005
Balance at at Dec. 31, 2014	$ 5	174,371		$ (80,681)		$ 93,695
Stock based compensation		2,642				2,642
Stock option exercises (in shares)	2,708
Stock option exercises		27				27
Net income				$ 8,149		$ 8,149
Balance at (in shares) at Jun. 30, 2015	51,316,713					51,316,713
Balance at at Jun. 30, 2015	$ 5	$ 177,040		$ (72,532)	$ 1	$ 104,514
Foreign currency translation adjustments					$ 1	$ 1

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities
Net income	$ 8,149	$ 7,538
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of debt issuance costs	168	$ 101
Debt issuance cost writeoff	194
Depreciation and amortization	11,093	$ 9,226
Loss on disposals of property, plant and equipment	49	135
Deferred rent	1,629	4,599
Stock based compensation	2,642	$ 2,626
Deferred income taxes	(2,165)
Changes in operating assets and liabilities:
Trade receivables	(549)	$ (806)
Inventories	4,267	8,175
Prepaid expenses and other current assets	(465)	729
Accounts payable	2,645	(9,896)
Income tax receivable/ payable	8,560	3,499
Accrued expenses and other liabilities	2,573	185
Net cash provided by operating activities	$ 38,790	26,111
Cash Flows From Investing Activities
Proceeds from cash surrender value of life insurance policy		677
Purchases of property, plant and equipment	$ (7,597)	(25,434)
Proceeds from the sale of property, plant and equipment	9	212
Net cash used in investing activities	$ (7,588)	(24,545)
Cash Flows From Financing Activities
Release of restricted cash		754
Payments of long-term debt and capital lease obligations	$ (28,424)	(13,531)
Advances on line of credit	5,250	13,000
Proceeds from exercise of stock options	19	$ 5
Debt issuance costs	(968)
Security deposits	(10)	$ (29)
Net cash (used in) provided by financing activities	(24,133)	$ 199
Effect of exchange rate changes on cash	1
Net change in cash	7,070	$ 1,765
Cash and cash equivalents beginning of period	5,759	1,761
Cash and cash equivalents end of period	12,829	3,526
Purchases of property, plant and equipment included in accounts payable and accrued expenses	250	1,976
Cash paid for interest	1,807	1,427
Cash (received) paid for income taxes	$ (2,611)	$ 1,526

Note 1 - Background

Note 1 - Background	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	Note 1: Background The Tile Shop, LLC (“The Tile Shop”) was formed on December 30, 2002, as a Delaware limited liability company and began operations on January 1, 2003. Tile Shop Holdings, Inc. (“Holdings,” and together with its wholly owned subsidiaries, the “Company”) was incorporated under the laws of the state of Delaware in June 2012 to become the parent company of The Tile Shop, LLC. The Company is engaged in the sale of tile, stone, glass, and other flooring products. The Company also manufactures setting and maintenance materials in Michigan, Virginia, Oklahoma and Wisconsin. The Company’s primary market is retail sales to consumers, contractors, designers and small home builders. As of June 30, 2015, the Company had 110 stores in 31 states and an on-line retail operation. The Company also has distribution centers located in Michigan, Virginia, Oklahoma and Wisconsin. The Company has a sourcing operation located in China. The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature, including the elimination of all intercompany transactions. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015. These statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The accounting policies used in preparing these Condensed Consolidated Financial Statements are the same as those described in Note 1 to the Consolidated Financial Statements in such Form 10-K.

Note 2 - Inventories

Note 2 - Inventories	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 2: Inventories: Inventories are stated at the lower of cost (determined on the weighted average cost method) or market. Inventories consist primarily of merchandise held for sale. Inventories were comprised of the following as of June 30, 2015 and December 31, 2014: (in thousands) June 30, 2015 December 31, 2014 Finished goods $ 53,380 $ 58,323 Raw materials 2,571 2,356 Finished goods in transit 8,639 8,178 Total $ 64,590 $ 68,857 The Company records provisions for losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable.

Note 3 - Income Taxes

Note 3 - Income Taxes	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 3: Income taxes: The Company's effective tax rate on net income before income taxes for the three month periods ended June 30, 2015 and 2014 was 41.5% and 40.0%, respectively. For the three month periods ended June 30, 2015 and 2014, the Company recorded a provision for income taxes of $3.2 million and $2.6 million, respectively. The effective tax rate during the three month period ended June 30, 2015 was higher due to the impact of state tax rate changes on the Company’s deferred tax balances, which resulted in an unfavorable adjustment to tax expense. The Company's effective tax rate on net income before income taxes for the six month periods ended June 30, 2015 and 2014 was 42.2% and 40.0%, respectively. For the six month periods ended June 30, 2015 and 2014, the Company recorded a provision for income taxes of $5.9 million and $5.0 million, respectively. The effective tax rate during the six month period ended June 30, 2015 was higher due to the impact of state tax rate changes on the Company’s deferred tax balances, which resulted in an unfavorable adjustment to tax expense. The Company records interest and penalties relating to uncertain tax positions in income tax expense. As of June 30, 2015 and 2014, the Company has not recognized any liabilities for uncertain tax positions nor have interest and penalties related to uncertain tax positions been accrued.

Note 4 - Earnings Per Share

Note 4 - Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 4: Earnings Per Share: Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding, after taking into consideration all dilutive potential shares outstanding during the period. 8 Til e Sho p Holdings , Inc . an d Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) Basic and diluted earnings per share were calculated as follows: (dollars in thousands) (dollars in thousands) For the three months Ended June 30, For the six months Ended June 30, 2015 2014 2015 2014 Net income $ 4,490 $ 3,828 $ 8,149 $ 7,538 Weighted average basic shares outstanding 51,125,985 51,003,063 51,125,605 51,001,589 Effect of diluted securities attributable to stock based awards 262,617 320,707 87,350 360,378 Weighted average diluted shares outstanding 51,388,602 51,323,770 51,212,955 51,361,967 Income per common share: Basic $ 0.09 $ 0.08 $ 0.16 $ 0.15 Dilutive $ 0.09 $ 0.07 $ 0.16 $ 0.15 Anti-dilutive securities excluded from EPS calculation 761,401 920,118 1,056,177 875,620

Note 5 - Other Accrued Liabilit

Note 5 - Other Accrued Liabilities	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	Note 5: Other Accrued Liabilities Other accrued liabilities consisted of the following: (in thousands) June 30, 2015 December 31, 2014 Customer deposits $ 6,261 $ 5,038 Accrued wages and salaries 4,040 3,209 Current portion of debt and capital lease obligation 5,252 3,850 Sales return reserve 3,575 3,292 Taxes/other 3,032 2,600 Interest payable 1 404 Total accrued liabilities $ 22,161 $ 18,393

Note 6 - Long-term Debt

Note 6 - Long-term Debt	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Long-term Debt [Text Block]	Note 6: Long-term Debt On June 2, 2015, the Company and its operating subsidiary, The Tile Shop, LLC, entered into a credit agreement with Fifth Third Bank, Bank of America, N.A., and Huntington National Bank (the “Credit Agreement”). The Credit Agreement provides the Company with a $125.0 million senior secured credit facility, comprised of a five-year $50.0 million term loan and a $75.0 million revolving line of credit. The Credit Agreement is secured by virtually all of the assets of the Company, including but not limited to, inventory, receivables, equipment and real property. Borrowings pursuant to the Credit Agreement bear interest at either a base rate or a LIBOR-based rate, at the option of the Company. The LIBOR-based rate will range from LIBOR plus 1.50% to 2.00%, depending on The Tile Shop’s leverage ratio. The base rate is equal to the greatest of: (a) the Federal funds rate plus 0.50%, (b) the Fifth Third Bank “prime rate,” and (c) the Eurodollar rate plus 1.00%, in each case plus 0.50% to 1.00% depending on The Tile Shop’s leverage ratio. At June 30, 2015 the base interest rate was 4.00% and the LIBOR-based interest rate was 1.94%. Borrowings outstanding consisted of $18.0 million on the revolving line of credit and $50.0 million on the term loan as of June 30, 2015. Additional borrowings pursuant to the Credit Agreement may be used to support the Company’s growth and for working capital purposes. The Company incurred $1.0 million of debt issuance costs in connection with the Credit Agreement. These costs were capitalized as other current and other noncurrent assets that will be amortized over the five-year life of the credit agreement. The term loan requires quarterly principal payments as follows (in thousands): Period September 30, 2015 to June 30, 2017 $ 1,250 September 30, 2017 to June 30, 2018 1,875 September 30, 2018 to March 31, 2020 2,500 The Credit Agreement contains customary events of default, conditions to borrowings, and restrictive covenants, including restrictions on the Company’s ability to dispose of assets, make acquisitions, incur additional debt, incur liens, make investments, or enter into transactions with affiliates on other than terms that could be obtained in an arm’s length transaction. The Credit Agreement also includes financial and other covenants including covenants to maintain certain fixed charge coverage ratios and rent adjusted leverage ratios. In addition, except with respect to pro rata payments made by The Tile Shop or other subsidiaries to the Company or any other equity owner of such entity, the Credit Agreement prohibits the payments of cash dividends. The Company was in compliance with the covenants as of June 30, 2015. The Credit Agreement superseded and replaced in its entirety the Company’s senior secured credit facility with Bank of America, N.A. dated October 3, 2012, as amended on April 30, 2013, July 8, 2013, March 26, 2014 and September 29, 2014. The Company used the $50.0 million term loan and $23.0 million drawn on the line of credit pursuant to the Credit Agreement to refinance all of the existing indebtedness outstanding under the Company’s prior credit facility in the amount of approximately $73.0 million, which consisted of $72.8 million in unpaid principal and approximately $0.2 million in accrued and unpaid interest and fees. The Company also recorded a $0.2 million charge in interest expense to write-off of the unamortized deferred financing fees associated with the October 3, 2012 credit facility as of the date of the termination.

Note 7 - Fair Value of Financia

Note 7 - Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 7: Fair Value of Financial Instruments These condensed consolidated financial statements include the following financial instruments: cash and cash equivalents, trade receivables, accounts payable, accrued expenses, capital leases, notes payable, and debt. At June 30, 2015 and December 31, 2014, the carrying amount of the Company’s cash and cash equivalents, trade receivables, accounts payable and accrued expenses approximated their fair values due to their short-term maturities. The carrying value of the Company’s borrowings and capital lease obligation approximates fair value based upon the market interest rates available to the Company for debt and capital lease obligations with similar risk and maturities. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, the Company uses a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 – Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 – Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: ■ Quoted prices for similar assets or liabilities in active markets; ■ Quoted prices for identical or similar assets in non-active markets; ■ Inputs other than quoted prices that are observable for the asset or liability; and ■ Inputs that are derived principally from or corroborated by other observable market data. Level 3 – Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

Note 8 - Equity Incentive Plans

Note 8 - Equity Incentive Plans	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 8: Equity Incentive Plans Stock options: The Company measures and recognizes compensation expense for all stock-based awards at fair value. The financial statements for the three and six months ended June 30, 2015 and 2014 include compensation cost for the portion of outstanding awards that vested during those periods. The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. For the three and six months ended June 30, 2015 total stock based compensation expense related to stock options was $0.9 million and $1.7 million, respectively. For the three and six months ended June 30, 2014 total stock based compensation expense related to stock options was $0.8 million and $1.8 million, respectively. Stock based compensation is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. As of June 30, 2015, the Company had 2,672,500 outstanding stock options at a weighted average exercise price of $12.88. Restricted stock: The Company awards restricted common shares to selected employees, and non-employee directors. Recipients are not required to provide any consideration other than continued service. Company share awards are subject to certain restrictions on transfer, and all or part of the shares awarded may be subject to forfeiture upon the occurrence of certain events, including employment termination. The restricted stock is valued at its grant date fair value and expensed over the requisite service period or the vesting term of the awards. For the three and six months ended June 30, 2015 total stock based compensation expense related to restricted stock was $0.5 million and $1.0 million, respectively. For the three and six months ended June 30, 2014 total stock based compensation expense related to restricted stock was $0.4 million and $0.8 million, respectively. Stock based compensation is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. As of June 30, 2015, the Company had 189,235 outstanding restricted common shares.

Note 9 - New Market Tax Credit

Note 9 - New Market Tax Credit	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Investment Holdings [Text Block]	Note 9: New Market Tax Credit In July 2013 the Company entered into a financing transaction with Chase Community Equity or “Chase,”, and U.S. Bank Community, LLC or “U.S. Bank”, collectively the “investors” related to a $19.1 million acquisition, rehabilitation and construction of our new distribution and manufacturing center in Durant, Oklahoma. The investors made a capital contribution to, and Tile Shop Lending made a loan to Chase New Market Tax Credit, The Tile Shop of Oklahoma Investment Fund, LLC, and The Tile Shop Investment Fund LLC, or the “Investment Funds,” under a qualified New Markets Tax Credit, or “NMTC,” program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000, or the “Act,” and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities, or “CDEs.” CDEs are privately managed investment institutions that are certified to make qualified low-income community investments, or “QLICIs.” In July 2013 Tile Shop Lending loaned $13.5 million to the Investment Funds at an interest rate of 1.35% per year and with a maturity of September 30, 2043. The Investment Funds then contributed the loan to certain CDEs, which, in turn, loaned the funds on similar terms to Tile Shop of Oklahoma, LLC, an indirect, wholly-owned subsidiary. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by the investors, net of syndication fees) were used to partially fund the new manufacturing and distribution center project. 10 Til e Sho p Holdings , Inc . an d Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) In July 2013, the investors also contributed $5.6 million to the Investment Funds and, by virtue of such contribution, are entitled to substantially all of the tax benefits derived from the NMTCs, while we effectively received net loan proceeds equal to investor’s contributions to the Investment Fund. This transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase the investors’ interest. The Company believes that the investors will exercise the put option in September 2020 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require the Company to indemnify the investors for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. The Company has determined that the financing arrangement with the Investment Funds and CDEs contains a variable interest entity, or “VIE.” The ongoing activities of the Investment Funds – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Investment Funds. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to the structure; Chase’s and U.S. Bank Community LLC’s lack of a material interest in the underling economics of the project; and the fact that the Company is obligated to absorb losses of the Investment Fund. The Company concluded that they are the primary beneficiary of the VIE and consolidated the Investment Funds, as a VIE, in accordance with the accounting standards for consolidation. Chase’s and U.S. Bank Community LLC’s contributions of $4.4 million, net of syndication fees, are included in cash, restricted cash, and other long-term liabilities in the accompanying consolidated balance sheet. The benefit of this net $4.4 million contribution will be recognized as a decrease in depreciation expense as we amortize the contribution liability over the seven-year compliance period as it is being earned through the on-going compliance with the conditions of the NMTC program. Direct costs of $1.0 million incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans (40 years). Incremental costs to maintain the structure during the compliance period are recognized as incurred.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 10: Commitments and Contingencies The Company, two of its former executive officers, five of its outside directors, and certain companies affiliated with the directors, are defendants in a consolidated class action brought under the federal securities laws and now pending in the United States District Court for the District of Minnesota under the caption Beaver County Employees’ Retirement Fund, et al. v. Tile Shop Holdings, Inc., et al The Company also is a Defendant in a consolidated action brought derivatively on behalf of the Company by two shareholders of the Company. One action was first filed in the United States District Court for the District of Minnesota, and then voluntarily dismissed and re-filed in the Court of Chancery for the State of Delaware (“Delaware Chancery Court”). The second action was filed in Delaware Chancery Court. The two actions have since been consolidated by the Delaware Chancery Court under the caption In re Tile Shop Holdings, Inc. Stockholder Derivative Litigation. Given the uncertainty of litigation and the preliminary stage of these cases, the Company cannot reasonably estimate the possible loss or range of loss that may result from these actions. The Company maintains directors and officers liability insurance policies that may reduce the Company’s exposure, if any. In the event the Company incurs a loss, the Company will pursue recoveries to the maximum extent available under these policies. The Company is also, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, while the outcome of such claims and disputes cannot be predicted with certainty, the Company’s ultimate liability in connection with these matters is not expected to have a material adverse effect on the results of operations, financial position, or cash flows.

Note 11 - New Accounting Pronou

Note 11 - New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	Note 11: New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a final standard on revenue from contracts with customers. The new standard sets forth a single comprehensive model for recognizing and reporting revenue. The new standard is effective for the Company in its fiscal year 2018, and permits the use of either a retrospective or a cumulative effect transition method. The Company is currently assessing the impact of implementing the new guidance on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The guidance, is effective for the Company in its fiscal year 2016, and requires retrospective application. The Company anticipates reclassifying $2.2 million of unamortized debt issuance costs from other asset accounts to net against debt upon adopting this standard in the first quarter of 2016.

Note 2 - Inventories (Tables)

Note 2 - Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	(in thousands) June 30, 2015 December 31, 2014 Finished goods $ 53,380 $ 58,323 Raw materials 2,571 2,356 Finished goods in transit 8,639 8,178 Total $ 64,590 $ 68,857

Note 4 - Earnings Per Share (Ta

Note 4 - Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	(dollars in thousands) (dollars in thousands) For the three months Ended June 30, For the six months Ended June 30, 2015 2014 2015 2014 Net income $ 4,490 $ 3,828 $ 8,149 $ 7,538 Weighted average basic shares outstanding 51,125,985 51,003,063 51,125,605 51,001,589 Effect of diluted securities attributable to stock based awards 262,617 320,707 87,350 360,378 Weighted average diluted shares outstanding 51,388,602 51,323,770 51,212,955 51,361,967 Income per common share: Basic $ 0.09 $ 0.08 $ 0.16 $ 0.15 Dilutive $ 0.09 $ 0.07 $ 0.16 $ 0.15 Anti-dilutive securities excluded from EPS calculation 761,401 920,118 1,056,177 875,620

Note 5 - Other Accrued Liabil21

Note 5 - Other Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	(in thousands) June 30, 2015 December 31, 2014 Customer deposits $ 6,261 $ 5,038 Accrued wages and salaries 4,040 3,209 Current portion of debt and capital lease obligation 5,252 3,850 Sales return reserve 3,575 3,292 Taxes/other 3,032 2,600 Interest payable 1 404 Total accrued liabilities $ 22,161 $ 18,393

Note 6 - Long-term Debt (Tables

Note 6 - Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	Period September 30, 2015 to June 30, 2017 $ 1,250 September 30, 2017 to June 30, 2018 1,875 September 30, 2018 to March 31, 2020 2,500

Note 2 - Components of Inventor

Note 2 - Components of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finished goods	$ 53,380	$ 58,323
Raw materials	2,571	2,356
Finished goods in transit	8,639	8,178
Total	$ 64,590	$ 68,857

Note 3 - Income Taxes (Details

Note 3 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Liability for Uncertain Tax Positions, Noncurrent	$ 0	$ 0	$ 0	$ 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense			$ 0	$ 0
Effective Income Tax Rate Reconciliation, Percent	41.50%	40.00%	42.20%	40.00%
Income Tax Expense (Benefit)	$ 3,187,000	$ 2,553,000	$ 5,949,000	$ 5,025,000

Note 4 - Basic and Diluted Net

Note 4 - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 4,490	$ 3,828	$ 8,149	$ 7,538
Basic (in shares)	51,125,985	51,003,063	51,125,605	51,001,589
Effect of diluted securities attributable to stock based awards (in shares)	262,617	320,707	87,350	360,378
Weighted average diluted shares outstanding (in shares)	51,388,602	51,323,770	51,212,955	51,361,967
Income per common share:
Basic (in dollars per share)	$ 0.09	$ 0.08	$ 0.16	$ 0.15
Dilutive (in dollars per share)	$ 0.09	$ 0.07	$ 0.16	$ 0.15
Anti-dilutive securities excluded from EPS calculation (in shares)	761,401	920,118	1,056,177	875,620

Note 5 - Components of Accrued

Note 5 - Components of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Customer deposits	$ 6,261	$ 5,038
Accrued wages and salaries	4,040	3,209
Current portion of debt and capital lease obligation	5,252	3,850
Sales return reserve	3,575	3,292
Taxes/other	3,032	2,600
Interest payable	1	404
Total accrued liabilities	$ 22,161	$ 18,393

Note 6 - Long-term Debt (Detail

Note 6 - Long-term Debt (Details Textual) - USD ($)	Jun. 02, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Term Loan [Member]
Debt Instrument, Face Amount	$ 50,000,000
Loans Payable to Bank		$ 50,000,000		$ 50,000,000
Debt Issuance Cost				1
Amount Drawn From Credit Agreement For Refinancing of Debt		50,000,000		50,000,000
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000,000
Long-term Line of Credit		18,000,000		18,000,000
Amount Drawn From Credit Agreement For Refinancing of Debt		$ 23,000,000		$ 23,000,000
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Minimum [Member] | Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Maximum [Member] | Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Variable Rate		1.94%		1.94%
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member] | Base Rate [Member]
Debt Instrument, Variable Rate		4.00%		4.00%
Credit Agreement [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Debt Agreement Maximum Borrowing Capacity	$ 125,000,000
Debt Instrument Basis Spread On Federal Funds Rate	0.50%
Debt Instrument Basis Spread On Eurodollar Rate	1.00%
Term Loan [Member] | Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Debt Instrument, Term	5 years
Senior Secured Credit Facility [Member] | Bank of America [Member] | Debt Principal [Member]
Repayments of Long-term Debt				$ 72,800,000
Senior Secured Credit Facility [Member] | Bank of America [Member]
Repayments of Long-term Debt				73,000,000
Write off of Deferred Debt Issuance Cost				200,000
Interest Expense				200,000
Write off of Deferred Debt Issuance Cost				194,000
Interest Expense		$ 795,000	$ 735,000	$ 1,598,000	$ 1,445,000

Note 6 - Quarterly Principal Pa

Note 6 - Quarterly Principal Payments (Details) - Credit Agreement [Member] - Term Loan [Member] - Fifth Third Bank, Bank of America, and Huntington National Bank [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
September 30, 2015 to June 30, 2017 [Member]
Quarterly Payment Period	$ 1,250
September 30, 2017 to June 30, 2018 [Member]
Quarterly Payment Period	1,875
September 30, 2018 to March 31, 2020 [Member]
Quarterly Payment Period	$ 2,500

Note 8 - Equity Incentive Pla29

Note 8 - Equity Incentive Plans (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 0.9	$ 0.8	$ 1.7	$ 1.8
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 0.5	$ 0.4	$ 1	$ 0.8
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	189,235		189,235
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	2,672,500		2,672,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 12.88		$ 12.88

Note 9 - New Market Tax Credit

Note 9 - New Market Tax Credit (Details Textual) - USD ($) $ in Millions	1 Months Ended
	Jul. 31, 2013	Jul. 13, 2013
Chase and US Bank [Member]
Accounts, Notes, Loans and Financing Receivable, Net, Current		$ 19.1
Tax Credits Maximum Percent of Qualifying Investments		39.00%
Proceeds from Contributed Capital	$ 5.6
Contributed Capital Net Proceeds	4.4
Tile Shop Lending [Member]
Proceeds from Lines of Credit	$ 13.5
Debt Instrument, Interest Rate, Stated Percentage	1.35%
Deferred Finance Costs, Gross	$ 1
Investors And Tiles Shop Lending [Member] | Financing Agreement With Investments Funds And CDEs [Member]
Debt Instrument, Term	40 years

Note 11 - New Accounting Pron31

Note 11 - New Accounting Pronouncements (Details Textual) $ in Millions	1 Months Ended
	Jan. 31, 2016USD ($)
Other Current Liabilities [Member] | Scenario, Forecast [Member] | Accounting Standards Update 2015-03 [Member]
Prior Period Reclassification Adjustment	$ 2.2