Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 07, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'ACME UNITED CORP | ' |
Entity Central Index Key | '0000002098 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 3,236,107 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,426 | $11,644 |
Accounts receivable, less allowance | 30,794 | 15,629 |
Inventories: | ' | ' |
Finished goods | 26,121 | 26,004 |
Work in process | 295 | 187 |
Raw materials and supplies | 4,469 | 2,028 |
Total inventory | 30,885 | 28,219 |
Prepaid expenses and other current assets | 1,970 | 1,494 |
Total current assets | 66,075 | 56,986 |
Property, plant and equipment: | ' | ' |
Land | 454 | 597 |
Buildings | 4,516 | 5,854 |
Machinery and equipment | 9,977 | 8,905 |
Total property, plant and equipment | 14,947 | 15,356 |
Less accumulated depreciation | 8,370 | 9,420 |
Net property, plant and equipment | 6,577 | 5,936 |
Intangible assets | 14,251 | 4,072 |
Other assets | 1,084 | 1,085 |
Total assets | 87,987 | 68,079 |
Current liabilities: | ' | ' |
Accounts payable | 10,919 | 4,790 |
Other accrued liabilities | 7,466 | 5,087 |
Total current liabilities | 18,385 | 9,877 |
Long-term debt | 31,325 | 22,912 |
Other | 439 | 286 |
Total liabilities | 50,149 | 33,075 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value $2.50: authorized 8,000,000 shares; issued - 4,575,924 shares in 2014 and 4,563,174 shares in 2013, including treasury stock | 11,439 | 11,407 |
Additional paid-in capital | 6,907 | 6,466 |
Retained earnings | 32,498 | 30,099 |
Treasury stock, at cost - 1,362,072 shares | -12,283 | -12,283 |
Accumulated other comprehensive (loss) income: | ' | ' |
Minimum pension liability | -791 | -791 |
Translation adjustment | 68 | 106 |
Total accumulated other comprehensive (loss) income | -723 | -685 |
Total stockholders' equity | 37,838 | 35,004 |
Total liabilities and stockholders' equity | $87,987 | $68,079 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value | $2.50 | $2.50 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 4,575,924 | 4,563,174 |
Treasury stock, shares | 1,362,072 | 1,362,072 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements Of Operations | ' | ' | ' | ' |
Net sales | $33,396 | $28,412 | $52,548 | $46,063 |
Cost of goods sold | 21,675 | 18,331 | 33,950 | 29,554 |
Gross profit | 11,721 | 10,081 | 18,598 | 16,509 |
Selling, general and administrative expenses | 7,983 | 6,889 | 14,235 | 12,803 |
Operating income | 3,738 | 3,192 | 4,363 | 3,706 |
Interest: | ' | ' | ' | ' |
Interest expense | 108 | 122 | 197 | 249 |
Interest income | -2 | -48 | -9 | -106 |
Interest expense, net | 106 | 74 | 188 | 142 |
Other (income) expense, net | -3 | 25 | 16 | 28 |
Total other (income) expense, net | 103 | 99 | 204 | 171 |
Income before income taxes | 3,635 | 3,093 | 4,159 | 3,536 |
Income tax expense | 1,093 | 883 | 1,248 | 1,015 |
Net income | $2,542 | $2,210 | $2,911 | $2,520 |
Basic earnings per share | $0.79 | $0.70 | $0.91 | $0.80 |
Diluted earnings per share | $0.72 | $0.68 | $0.83 | $0.78 |
Weighted average number of common shares outstanding - denominator used for basic per share computations | 3,210,000 | 3,156,000 | 3,206,000 | 3,144,000 |
Weighted average number of dilutive stock options outstanding | 329,000 | 110,000 | 281,000 | 90,000 |
Denominator used for diluted per share computations | 3,539,000 | 3,266,000 | 3,488,000 | 3,234,000 |
Dividends declared per share | $0.08 | $0.08 | $0.16 | $0.15 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income | ' | ' | ' | ' |
Net income | $2,542 | $2,210 | $2,911 | $2,520 |
Other comprehensive (loss) / income - | ' | ' | ' | ' |
Foreign currency translation | 165 | -38 | -38 | -297 |
Comprehensive income | $2,707 | $2,172 | $2,873 | $2,223 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Activities: | ' | ' |
Net income | $2,911 | $2,520 |
Adjustments to reconcile net income to net cash used by operating activities: | ' | ' |
Depreciation | 541 | 455 |
Amortization | 174 | 135 |
Stock compensation expense | 300 | 272 |
Gain on disposal/sale of assets | -200 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -12,796 | -9,181 |
Inventories | -1,000 | 667 |
Prepaid expenses and other assets | -357 | -150 |
Accounts payable | 5,249 | 2,637 |
Other accrued liabilities | 1,989 | 69 |
Total adjustments | -6,100 | -5,096 |
Net cash used by operating activities | -3,189 | -2,576 |
Investing Activities: | ' | ' |
Purchase of property, plant, and equipment | -1,022 | -463 |
Purchase of patents and trademarks | -63 | -50 |
Acquisition of certain assets of First Aid Only, Inc. | -13,806 | ' |
Proceeds from the sales of property, plant and equipment | 773 | ' |
Net cash used by investing activities | -14,118 | -513 |
Financing Activities: | ' | ' |
Borrowing of long-term debt, net of repayments | 8,413 | 1,692 |
Proceeds from issuance of common stock | 173 | 322 |
Distributions to stockholders | -512 | -219 |
Purchase of treasury stock | ' | ' |
Net cash provided by financing activities | 8,074 | 1,794 |
Effect of exchange rate changes | 17 | 3 |
Net change in cash and cash equivalents | -9,218 | -1,292 |
Cash and cash equivalents at beginning of period | 11,644 | 9,750 |
Cash and cash equivalents at end of period | $2,426 | $8,458 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Note 1 — Basis of Presentation | |
In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of a normal, recurring nature. However, the financial statements do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2013 for such disclosures. The condensed consolidated balance sheet as of December 31, 2013 was derived from the audited consolidated balance sheet as of that date. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto, included in the Company’s 2013 Annual Report on Form 10-K. | |
The Company has evaluated events and transactions subsequent to June 30, 2014 and through the date these condensed consolidated financial statements were included in this Form 10-Q and filed with the SEC. | |
Contingencies
Contingencies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Contingencies | ' | ||||||||||||||||
Contingencies | ' | ||||||||||||||||
Note 2 — Contingencies | |||||||||||||||||
The Company is involved from time to time in disputes and other litigation in the ordinary course of business and may encounter other contingencies, which may include environmental and other matters. The Company presently has no matters other than the environmental remediation accrual described below. | |||||||||||||||||
In December 2008, the Company sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million, of which $2.0 million was secured by a mortgage on the property. The property consists of approximately four acres of land and 48,000 sq. feet of warehouse space. The property was the site of the Company’s original scissor factory which opened in 1887 and was closed in 1996. | |||||||||||||||||
Under the terms of the sale agreement, and as required by the Connecticut Transfer Act, the Company is required to remediate any environmental contamination on the property. During 2008, the Company hired an independent environmental consulting firm to conduct environmental studies in order to identify the extent of the environmental contamination on the property and to develop a remediation plan. As a result of those studies and the estimates prepared by the independent environmental consulting firm, the Company recorded an undiscounted liability of approximately $1.8 million related to the remediation of the property. This accrual included the costs of required investigation, remedial activities, and post-remediation operating and maintenance. | |||||||||||||||||
Remediation work on the project began in the third quarter of 2009 and was completed during the third quarter of 2012. At June 30, 2014, the Company had approximately $17,000 remaining in its accrual for environmental remediation, all of which was classified as a current liability at that date. | |||||||||||||||||
In addition to the completed remediation work, the Company, with the assistance of its independent environmental consulting firm, must continue to monitor contaminant levels on the property to ensure they comply with set governmental standards. The Company expects that the monitoring project will be completed by the end of 2014. | |||||||||||||||||
On April 7, 2014, the Company sold its Fremont, NC distribution facility for $850,000 in cash. The facility originally served as a manufacturing site for the Company’s scissors and rulers. Manufacturing at the site ceased in 2002. In connection with the sale and as part of the terms of the agreement, the Company is responsible to remediate any environmental contamination on the property. The Company hired an independent environmental consulting firm to conduct environmental studies in order to identify the extent of the environmental contamination on the property and to develop a remediation plan. As a result of those studies and the estimates prepared by the independent environmental consulting firm, and in conjunction with the sale of the property, the Company recorded a liability of $300,000 in the second quarter of 2014, related to the remediation of the property. The accrual includes the total estimated costs of remedial activities and post-remediation operating and maintenance. | |||||||||||||||||
Remediation work on the project is expected to begin in the third quarter of 2014 and be completed in the first half of 2015. In addition to the remediation work, the Company, with the assistance of its independent environmental consulting firm, must continue to monitor contaminant levels on the property to ensure they comply with set governmental standards. The Company expects that the monitoring period will last a period of five years and be complete by the year 2020. | |||||||||||||||||
The change in the accrual for environmental remediation for the three months ended June 30, 2014 follows (in thousands): | |||||||||||||||||
Balance at | Estimated Costs | Payments | Balance at | ||||||||||||||
31-Dec-13 | 30-Jun-14 | ||||||||||||||||
Fremont, NC | — | $ | 300 | $ | (35 | ) | $ | 265 | |||||||||
Bridgeport, CT | $ | 39 | — | $ | (22 | ) | $ | 17 | |||||||||
Total | $ | 39 | $ | 300 | $ | (57 | ) | $ | 282 | ||||||||
Pension
Pension | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension | ' | ||||||||||||||||
Note 3 — Pension | |||||||||||||||||
Components of net periodic benefit cost are as follows (in thousands): | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Interest cost | $ | 19 | $ | 16 | $ | 35 | $ | 33 | |||||||||
Service cost | 3 | 10 | 13 | 20 | |||||||||||||
Expected return on plan assets | (29 | ) | (17 | ) | (47 | ) | (35 | ) | |||||||||
Amortization of prior service costs | 2 | 2 | 5 | 5 | |||||||||||||
Amortization of actuarial loss | 23 | 35 | 58 | 71 | |||||||||||||
$ | 17 | $ | 47 | $ | 64 | $ | 93 | ||||||||||
The Company’s funding policy with respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations. In 2014, the Company is required to contribute approximately $235,000. As of June 30, 2014 the Company contributed approximately $160,000 to the plan. | |||||||||||||||||
Debt_and_Shareholders_Equity
Debt and Shareholders' Equity | 6 Months Ended |
Jun. 30, 2014 | |
Debt And Shareholders Equity | ' |
Debt and Stockholders Equity | ' |
Note 4 —Debt and Shareholders’ Equity | |
On April 25, 2013, the Company amended its revolving loan agreement with HSBC Bank N.A. dated April 5, 2012. The amendment increased the borrowing limit to $40 million from $30 million. The interest rate remains the same at LIBOR plus 1.75%. All principal amounts outstanding under the agreement are required to be repaid in a single amount on April 5, 2017, the date the agreement expires; interest is payable monthly. Funds borrowed under the agreement may be used for working capital, general operating expenses, share repurchases, acquisitions and certain other purposes. During the fourth quarter of 2013, the Company and HSBC made certain technical amendments to a covenant of the amended loan agreement to accommodate the purchase of the Rocky Mount facility. Under the amended loan agreement, the Company is required to maintain specific amounts of tangible net worth, a debt/net worth ratio, and a fixed charge coverage ratio. At June 30, 2014 the Company was in compliance with these covenants. | |
As of June 30, 2014 and December 31, 2013, the Company had outstanding borrowings of $31,324,528 and $22,911,829, respectively, under the Company’s revolving loan agreement with HSBC. | |
During the first six months of 2014, the Company issued a total of 12,750 shares of common stock and received aggregate proceeds of $173,410 upon the exercise of employee stock options. | |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Note 5— Segment Information | |||||||||||||||||
The Company reports financial information based on the organizational structure used by management for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, management reviews the financial results of both on a consolidated basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and safety products for school, office, home, hardware and industrial use. | |||||||||||||||||
Domestic sales orders are filled from the Company’s distribution center in North Carolina. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots. | |||||||||||||||||
Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 26% and 20% of the Company’s total net sales for the three and six months ended June 30, 2014 compared to 27% and 21% for the comparable periods in 2013. | |||||||||||||||||
The chief operating decision maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. | |||||||||||||||||
Financial data by segment: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
Sales to external customers: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 27,870 | $ | 23,496 | $ | 43,974 | $ | 37,721 | |||||||||
Canada | 3,673 | 3,139 | 5,184 | 4,765 | |||||||||||||
Europe | 1,853 | 1,777 | 3,390 | 3,577 | |||||||||||||
Consolidated | $ | 33,396 | $ | 28,412 | $ | 52,548 | $ | 46,063 | |||||||||
Operating income (loss): | |||||||||||||||||
United States | $ | 3,239 | $ | 2,701 | $ | 3,916 | $ | 3,267 | |||||||||
Canada | 527 | 475 | 559 | 463 | |||||||||||||
Europe | (28 | ) | 16 | (112 | ) | (24 | ) | ||||||||||
Consolidated | $ | 3,738 | $ | 3,192 | $ | 4,363 | $ | 3,706 | |||||||||
Interest expense, net | 106 | 74 | 188 | 142 | |||||||||||||
Other (income) expense , net | (3 | ) | 25 | 16 | 28 | ||||||||||||
Consolidated income before taxes | $ | 3,635 | $ | 3,093 | $ | 4,159 | $ | 3,536 | |||||||||
Assets by segment: | |||||||||||||||||
( in thousands ) | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 75,565 | $ | 57,068 | |||||||||||||
Canada | 7,676 | 5,329 | |||||||||||||||
Europe | 4,746 | 5,682 | |||||||||||||||
Consolidated | $ | 87,987 | $ | 68,079 | |||||||||||||
Stock_Based_Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Based Compensation | ' |
Note 6 – Stock Based Compensation | |
The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period. Share-based compensation expenses were $174,000 and $167,410 for the quarters ended June 30, 2014 and 2013, respectively. Share-based compensation expenses were $300,000 and $272,410 for the six months ended June 30, 2014 and 2013, respectively. During the three months ended June 30, 2014, the Company issued 42,500 options with a weighted average fair value of $3.36 per share. During the six months ended June 30, 2014 the Company issued 76,500 options with a weighted average fair value of $3.35. | |
As of June 30, 2014, there was a total of $874,191 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share –based payments granted to the Company’s employees. The remaining unamortized expense is expected to be recognized over a weighted average period of approximately 3 years. | |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Measurements | ' |
Fair Value Measurements | ' |
Note 7 – Fair Value Measurements | |
The carrying value of the Company’s bank debt and note receivable approximates fair value. Fair value was determined using a discounted cash flow analysis. | |
Business_Combination
Business Combination | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination | ' | ||||
Note 8 – Business Combination | |||||
On June 2, 2014, the Company purchased certain assets of First Aid Only, Inc. (“First Aid Only”), a supplier of Smart Compliance® first aid kits, refills, and safety products that meet regulatory requirements for a broad range of industries. First Aid Only pioneered consultative selling and support of first aid items to large corporate customers, and is recognized as an innovative leader in the safety products industry. The Company purchased inventory, accounts receivable, equipment, patents, trademarks and other intellectual property for approximately $13.8 million using funds borrowed under its revolving credit facility with HSBC. The Company recorded approximately $1.7 million for inventory, $2.5 million for accounts receivables and $0.6 million for equipment and other assets, as well as approximately $10.3 million for intangible assets expected to consist primarily of trade names, customer list and goodwill. Management’s assessment of the valuation of intangible assets is preliminary and finalization of the Company’s purchase accounting assessment may result in changes to the valuation of the identified intangible assets. The Company will finalize the purchase price allocation as soon as practicable within the measurement period in accordance with Accounting Standards Codification Topic 805 “Business Combinations”. In addition, the Company assumed approximately $1.2 million in accounts payables and accrued expenses. During the three and six months ended June 30, 2014, the Company incurred approximately $80,000 of integration and transaction costs associated with the acquisition. | |||||
The purchase price was allocated to assets acquired and liabilities assumed as follows (in thousands): | |||||
Assets: | |||||
Accounts Receivable | $ | 2,544 | |||
Inventory | 1,704 | ||||
Equipment | 463 | ||||
Prepaid expenses | 110 | ||||
Intangible Assets | 10,250 | ||||
Total assets | $ | 15,071 | |||
Liabilities | |||||
Accounts Payable | $ | 1,019 | |||
Accrued Expense | 252 | ||||
Total liabilities | $ | 1,271 | |||
Net sales for the three and six months ended June 30, 2014 attributable to First Aid Only were approximately $1.8 million. Net income for the three and six months ended June 30, 2014 attributable to First Aid Only was not material to the Company’s financial statements for those periods. | |||||
Assuming First Aid Only was acquired on January 1, 2014, unaudited proforma combined net sales for the three and six months ended June 30, 2014 for the Company would have been approximately $36.7 million and $59.6 million, respectively. Unaudited proforma combined net income for the three and six months ended June 30, 2014 for the Company would have been approximately $2.7 million and $3.1 million, respectively. | |||||
Assuming First Aid Only was acquired on January 1, 2013, unaudited proforma combined net sales for the three and six months ended June 30, 2013, for the Company would have been approximately $32.8 million and $54.0 million, respectively. Unaudited proforma combined net income for the three and six months ended June 30, 2013 for the Company would have been approximately $2.4 million and $2.7 million, respectively. | |||||
Sale_of_Property
Sale of Property | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Sale Of Property | ' | ||||||
Sale of Property | ' | ||||||
Note 9 –Sale of Property | |||||||
On April 7, 2014, the Company sold its Fremont, NC plant for $850,000 in cash. The facility originally served as a manufacturing site for the Company’s scissors and rulers. Manufacturing at the site ceased in 2002. Under the terms of the sale agreement, the Company is responsible to remediate any environmental contamination on the property. The Company hired an independent environmental consulting firm to conduct environmental studies in order to identify the extent of the environmental contamination on the property and to develop a remediation plan. As a result of those studies and the estimates prepared by the independent environmental consulting firm, and in conjunction with the sale of the property, the Company recorded a liability of $300,000 in the second quarter of 2014, related to the remediation of the property. The accrual includes the costs of remedial activities and post-remediation operating and maintenance. | |||||||
Remediation work on the project is expected to begin in the third quarter of 2014 and be completed in the first half of 2015. In addition to the remediation work, the Company, with the assistance of its independent environmental consulting firm, must continue to monitor contaminant levels on the property to ensure they comply with set governmental standards. The Company expects that the monitoring period will last a period of five years and be complete by the year 2020. | |||||||
The gain on the sale is calculated as follows: | |||||||
(in thousands) | |||||||
Sales Price | $ | 850 | |||||
Less: | |||||||
Transaction costs | 75 | ||||||
Land | 140 | ||||||
Building and Equipment (gross book value) | 1,715 | ||||||
Building and Equipment - accum. Depreciation | 1,580 | ||||||
Building and Equipment (net book value) | 135 | ||||||
Environmental Remediation Liability | 300 | ||||||
Gain on Sale | $ | 200 | |||||
Contingencies_Tables
Contingencies (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Contingencies Tables | ' | ||||||||||||||||
Accrual for Environmental Remediation Table | ' | ||||||||||||||||
Balance at | Estimated Costs | Payments | Balance at | ||||||||||||||
31-Dec-13 | 30-Jun-14 | ||||||||||||||||
Fremont, NC | — | $ | 300 | $ | (35 | ) | $ | 265 | |||||||||
Bridgeport, CT | $ | 39 | — | $ | (22 | ) | $ | 17 | |||||||||
Total | $ | 39 | $ | 300 | $ | (57 | ) | $ | 282 | ||||||||
Pension_Tables
Pension (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Pension Tables | ' | ||||||||||||||||
Components of Net Benefit Cost | ' | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Interest cost | $ | 19 | $ | 16 | $ | 35 | $ | 33 | |||||||||
Service cost | 3 | 10 | 13 | 20 | |||||||||||||
Expected return on plan assets | (29 | ) | (17 | ) | (47 | ) | (35 | ) | |||||||||
Amortization of prior service costs | 2 | 2 | 5 | 5 | |||||||||||||
Amortization of actuarial loss | 23 | 35 | 58 | 71 | |||||||||||||
$ | 17 | $ | 47 | $ | 64 | $ | 93 | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information Tables | ' | ||||||||||||||||
Financial Data By Segment Table | ' | ||||||||||||||||
Financial data by segment: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
Sales to external customers: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 27,870 | $ | 23,496 | $ | 43,974 | $ | 37,721 | |||||||||
Canada | 3,673 | 3,139 | 5,184 | 4,765 | |||||||||||||
Europe | 1,853 | 1,777 | 3,390 | 3,577 | |||||||||||||
Consolidated | $ | 33,396 | $ | 28,412 | $ | 52,548 | $ | 46,063 | |||||||||
Operating income (loss): | |||||||||||||||||
United States | $ | 3,239 | $ | 2,701 | $ | 3,916 | $ | 3,267 | |||||||||
Canada | 527 | 475 | 559 | 463 | |||||||||||||
Europe | (28 | ) | 16 | (112 | ) | (24 | ) | ||||||||||
Consolidated | $ | 3,738 | $ | 3,192 | $ | 4,363 | $ | 3,706 | |||||||||
Interest expense, net | 106 | 74 | 188 | 142 | |||||||||||||
Other (income) expense , net | (3 | ) | 25 | 16 | 28 | ||||||||||||
Consolidated income before taxes | $ | 3,635 | $ | 3,093 | $ | 4,159 | $ | 3,536 | |||||||||
Assets By Segment | ' | ||||||||||||||||
Assets by segment: | |||||||||||||||||
( in thousands ) | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 75,565 | $ | 57,068 | |||||||||||||
Canada | 7,676 | 5,329 | |||||||||||||||
Europe | 4,746 | 5,682 | |||||||||||||||
Consolidated | $ | 87,987 | $ | 68,079 | |||||||||||||
Business_Combination_Tables
Business Combination (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combination Tables | ' | ||||
Purchase Price Allocation | ' | ||||
Assets: | |||||
Accounts Receivable | $ | 2,544 | |||
Inventory | 1,704 | ||||
Equipment | 463 | ||||
Prepaid expenses | 110 | ||||
Intangible Assets | 10,250 | ||||
Total assets | $ | 15,071 | |||
Liabilities | |||||
Accounts Payable | $ | 1,019 | |||
Accrued Expense | 252 | ||||
Total liabilities | $ | 1,271 | |||
Sale_of_Property_Tables
Sale of Property (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Sale Of Property Tables | ' | ||||||
Gain on Sale | ' | ||||||
The gain on the sale is calculated as follows: | |||||||
(in thousands) | |||||||
Sales Price | $ | 850 | |||||
Less: | |||||||
Transaction costs | 75 | ||||||
Land | 140 | ||||||
Building and Equipment (gross book value) | 1,715 | ||||||
Building and Equipment - accum. Depreciation | 1,580 | ||||||
Building and Equipment (net book value) | 135 | ||||||
Environmental Remediation Liability | 300 | ||||||
Gain on Sale | $ | 200 | |||||
Contingencies_Details_Narrativ
Contingencies (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 07, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Bridgeport, CT | Bridgeport, CT | Bridgeport, CT | Fremont, NC | Fremont, NC | Fremont, NC | ||
Description of property sale | ' | ' | ' | ' | ' | ' | ' | ' |
In December 2008, the Company sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million, of which $2.0 million was secured by a mortgage on the property. The property consists of approximately four acres of land and 48,000 sq. feet of warehouse space. The property was the site of the Company’s original scissor factory which opened in 1887 and was closed in 1996. | ||||||||
Proceeds from sale of asset | ' | ' | $2,500 | ' | ' | $850 | ' | ' |
Mortgage receivable from sale of asset | ' | ' | 2,000 | ' | ' | ' | ' | ' |
Environmental remediation liability | ' | ' | 1,800 | ' | ' | 300 | ' | ' |
Accrual for environmental remediation and monitoring | 282 | 39 | ' | 17 | 39 | ' | 265 | 0 |
Accrual for environmental remediation and monitoring, current | ' | ' | ' | $17 | ' | ' | ' | ' |
Minimum environmental remediation monitoring period (in years) | ' | ' | ' | ' | ' | '5 years | ' | ' |
Contingencies_Accrual_for_Envi
Contingencies - Accrual for Environmental Remediation (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Environmental remediation accrual at December 31, 2013 | $39 |
Estimated Costs | 300 |
Payments | -57 |
Environmental remediation accrual at June 30, 2014 | 282 |
Bridgeport, CT | ' |
Environmental remediation accrual at December 31, 2013 | 39 |
Estimated Costs | 0 |
Payments | -22 |
Environmental remediation accrual at June 30, 2014 | 17 |
Fremont, NC | ' |
Environmental remediation accrual at December 31, 2013 | 0 |
Estimated Costs | 300 |
Payments | -35 |
Environmental remediation accrual at June 30, 2014 | $265 |
Pension_Details_Narrative
Pension (Details Narrative) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Compensation and Retirement Disclosure [Abstract] | ' |
Expected plan contributions during 2014 | $235 |
Plan contributions during period | $160 |
Pension_Periodic_Benefit_Cost_
Pension - Periodic Benefit Cost (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Interest cost | $19 | $16 | $35 | $33 |
Service cost | 3 | 10 | 13 | 20 |
Expected return on plan assets | -29 | -17 | -47 | -35 |
Amortization of prior service costs | 2 | 2 | 5 | 5 |
Amortization of actuarial loss | 23 | 35 | 58 | 71 |
Net periodic benefit cost | $17 | $47 | $64 | $93 |
Debt_and_Shareholders_Equity_D
Debt and Shareholders' Equity (Details Narrative) (USD $) | 1 Months Ended | 6 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2013 | Apr. 30, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 25, 2013 | Apr. 05, 2012 |
Debt And Shareholders Equity Details Narrative | ' | ' | ' | ' | ' | ' |
Outstanding borrowings under revolving loan agreement | ' | ' | $31,325 | $22,912 | ' | ' |
Credit facility borrowing capacity | ' | ' | ' | ' | 40,000 | 30,000 |
Interest rate of LIBOR plus percentage | 1.75% | 1.75% | ' | ' | ' | ' |
Credit facility interest rate | 'Interest rate of LIBOR plus 1.75% | ' | ' | ' | ' | ' |
Credit facility expiration date | 5-Apr-17 | ' | ' | ' | ' | ' |
Covenant terms and compliance | ' | ' | 'Under the amended loan agreement, the Company is required to maintain specific amounts of tangible net worth, a debt/net worth ratio, and a fixed charge coverage ratio. At June 30, 2014 the Company was in compliance with these covenants. | ' | ' | ' |
Common stock issued upon exercise of employee stock options (in shares) | ' | ' | 12,750 | ' | ' | ' |
Cash received upon exercise of employee stock options | ' | ' | $173 | ' | ' | ' |
Segment_Information_Financial_
Segment Information - Financial Data by Segment (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Sales to external customers | $33,396 | $28,412 | $52,548 | $46,063 | ' |
Operating income (loss) | 3,738 | 3,192 | 4,363 | 3,706 | ' |
Interest expense, net | 106 | 74 | 188 | 142 | ' |
Other (income) expense, net | -3 | 25 | 16 | 28 | ' |
Consolidated income before taxes | 3,635 | 3,093 | 4,159 | 3,536 | ' |
Assets | 87,987 | ' | 87,987 | ' | 68,079 |
United States | ' | ' | ' | ' | ' |
Sales to external customers | 27,870 | 23,496 | 43,974 | 37,721 | ' |
Operating income (loss) | 3,239 | 2,701 | 3,916 | 3,267 | ' |
Assets | 75,565 | ' | 75,565 | ' | 57,068 |
Canada | ' | ' | ' | ' | ' |
Sales to external customers | 3,673 | 3,139 | 5,184 | 4,765 | ' |
Operating income (loss) | 527 | 475 | 559 | 463 | ' |
Assets | 7,676 | ' | 7,676 | ' | 5,329 |
Europe | ' | ' | ' | ' | ' |
Sales to external customers | 1,853 | 1,777 | 3,390 | 3,577 | ' |
Operating income (loss) | -28 | 16 | -112 | -24 | ' |
Assets | $4,746 | ' | $4,746 | ' | $5,682 |
Segment_Information_Details_Na
Segment Information (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Information Details Narrative | ' | ' | ' | ' |
Direct import sales to total net sales ratio | 26.00% | 27.00% | 20.00% | 21.00% |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock Based Compensation Details Narrative | ' | ' | ' | ' |
Share-based compensation expense | $174 | $167 | $300 | $272 |
Stock options granted during period (in shares) | 42,500 | ' | 76,500 | ' |
Weighted average fair value of stock options granted during period | $3.36 | ' | $3.35 | ' |
Unrecognized compensation cost | $874 | ' | $874 | ' |
Unrecognized compensation cost recognition period | ' | ' | '3 years | ' |
Business_Combination_Details_N
Business Combination (Details Narrative) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 02, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | ' | $33,396 | $28,412 | $52,548 | $46,063 |
First Aid Only, Inc. | ' | ' | ' | ' | ' |
Purchase price | 13,800 | ' | ' | ' | ' |
Purchase price allocation to equipment and other assets | 600 | ' | ' | ' | ' |
Purchase price allocated to inventory | 1,704 | ' | ' | ' | ' |
Purchase price allocated to accounts receivables | 2,544 | ' | ' | ' | ' |
Purchase price allocated to intangible assets | 10,250 | ' | ' | ' | ' |
Purchase price allocated to accounts payables and accrued expenses | 1,200 | ' | ' | ' | ' |
Unaudited proforma net sales during period | ' | 36,700 | 32,800 | 59,600 | 54,000 |
Unaudited proforma net income during period | ' | 2,700 | 2,400 | 3,100 | 2,700 |
Net sales | ' | 1,800 | ' | 1,800 | ' |
Integration and transaction costs | $80 | ' | ' | ' | ' |
Business_Combination_Purchase_
Business Combination Purchase Price Allocation (Details) (First Aid Only, Inc., USD $) | Jun. 02, 2014 |
In Thousands, unless otherwise specified | |
First Aid Only, Inc. | ' |
Accounts Receivable | $2,544 |
Inventory | 1,704 |
Equipment | 463 |
Prepaid expenses | 110 |
Intangible Assets | 10,250 |
Total assets | 15,071 |
Accounts Payable | 1,019 |
Accrued Expense | 252 |
Total liabilities | $1,271 |
Sale_of_Property_Details_Narra
Sale of Property (Details Narrative) (Fremont, NC, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Apr. 07, 2014 |
Fremont, NC | ' |
Proceeds from sale of asset | $850 |
Environmental remediation liability | $300 |
Minimum environmental remediation monitoring period (in years) | '5 years |
Sale_of_Property_Details
Sale of Property (Details) (USD $) | 6 Months Ended | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Apr. 07, 2014 |
Fremont, NC | ||
Sales Price | ' | $850 |
Less: | ' | ' |
Transaction costs | ' | 75 |
Land | ' | 140 |
Building and Equipment (gross book value) | ' | 1,715 |
Building and Equipment - accum. Depreciation | ' | 1,580 |
Building and Equipment (net book value) | ' | 135 |
Environmental Remediation Liability | ' | 300 |
Gain on Sale | $200 | $200 |