Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 25, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | ACME UNITED CORP | ||
Entity Central Index Key | 2098 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
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 | 3,298,605 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Public Float | $46,515,889 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Operations | ||
Net sales | $107,222,306 | $89,576,777 |
Cost of goods sold | 69,036,695 | 57,752,733 |
Gross profit | 38,185,611 | 31,824,044 |
Selling, general and administrative expenses | 30,791,150 | 25,944,948 |
Operating income | 7,394,461 | 5,879,096 |
Interest: | ||
Interest expense | -490,110 | -502,407 |
Interest income | 16,624 | 152,073 |
Interest expense, net | -473,486 | -350,334 |
Other expense | -118,250 | -34,871 |
Total other expense, net | -591,736 | -385,205 |
Income before income tax expense | 6,802,725 | 5,493,891 |
Income tax expense | 2,013,720 | 1,490,986 |
Net income | $4,789,005 | $4,002,905 |
Basic earnings per share | $1.48 | $1.26 |
Diluted earnings per share | $1.36 | $1.22 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income | ||
Net income | $4,789,005 | $4,002,905 |
Other comprehensive (loss) income - | ||
Foreign currency translation | -858,118 | -138,993 |
Change in net prior service credit and actuarial losses, net of income tax expense | -104,459 | 241,365 |
Total other comprehensive (loss) income | -962,577 | 102,372 |
Comprehensive income | $3,826,428 | $4,105,277 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $2,285,660 | $11,643,764 |
Accounts receivable, less allowance | 19,477,128 | 15,629,275 |
Inventories | 33,671,198 | 28,218,883 |
Deferred income taxes | 256,676 | 330,640 |
Prepaid expenses and other current assets | 1,820,744 | 1,163,044 |
Total current assets | 57,511,406 | 56,985,606 |
Property, plant and equipment: | ||
Land | 435,876 | 596,785 |
Buildings | 5,126,057 | 5,854,255 |
Machinery and equipment | 10,066,843 | 8,904,982 |
Total property, plant and equipment | 15,628,776 | 15,356,022 |
Less: accumulated depreciation | 8,698,235 | 9,419,761 |
Net plant, property and equipment | 6,930,541 | 5,936,261 |
Intangible assets, less accumulated amortization | 12,554,611 | 4,071,897 |
Goodwill | 1,375,000 | |
Deferred income taxes | 812,649 | 945,709 |
Other assets | 123,879 | 139,506 |
Total assets | 79,308,086 | 68,078,979 |
Current liabilities: | ||
Accounts payable | 7,773,021 | 4,788,717 |
Other accrued liabilities | 7,590,159 | 5,087,233 |
Total current liabilities | 15,363,180 | 9,875,950 |
Long-term debt | 24,146,841 | 22,911,829 |
Other accrued liabilities - non current | 370,009 | 285,955 |
Total liabilities | 39,880,030 | 33,073,734 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $2.50: authorized 8,000,000 shares; issued - 4,653,424 shares in 2014 and 4,563,174 shares in 2013, including treasury stock | 11,632,805 | 11,407,180 |
Treasury stock, at cost, 1,362,072 shares in 2014 and 2013 | -12,283,251 | -12,283,251 |
Additional paid-in capital | 7,941,330 | 6,466,388 |
Accumulated other comprehensive loss | -1,647,098 | -684,521 |
Retained earnings | 33,784,270 | 30,099,449 |
Total stockholders' equity | 39,428,056 | 35,005,245 |
Total liabilities and stockholders' equity | $79,308,086 | $68,078,979 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | 4,653,424 | 4,563,174 |
Treasury stock, shares | 1,362,072 | 1,362,072 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
Balance at Dec. 31, 2012 | $11,218,055 | ($12,283,251) | $5,636,274 | ($786,893) | $27,082,118 | $30,866,303 |
Balance (shares) at Dec. 31, 2012 | 3,125,452 | |||||
Net income | 4,002,905 | 4,002,905 | ||||
Total other comprehensive income (loss) | 102,372 | 102,372 | ||||
Stock compensation expense | 490,060 | 490,060 | ||||
Distribution to shareholders | -985,574 | -985,574 | ||||
Issuance of common stock | 189,125 | 340,054 | 529,179 | |||
Issuance of common stock (shares) | 75,650 | 75,650 | ||||
Balance at Dec. 31, 2013 | 11,407,180 | -12,283,251 | 6,466,388 | -684,521 | 30,099,449 | 35,005,245 |
Balance (shares) at Dec. 31, 2013 | 3,201,102 | |||||
Net income | 4,789,005 | 4,789,005 | ||||
Total other comprehensive income (loss) | -962,577 | -962,577 | ||||
Stock compensation expense | 561,856 | 561,856 | ||||
Distribution to shareholders | -1,104,184 | -1,104,184 | ||||
Issuance of common stock | 225,625 | 913,086 | 1,138,711 | |||
Issuance of common stock (shares) | 90,250 | 90,250 | ||||
Balance at Dec. 31, 2014 | $11,632,805 | ($12,283,251) | $7,941,330 | ($1,647,098) | $33,784,270 | $39,428,056 |
Balance (shares) at Dec. 31, 2014 | 3,291,352 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | ||
Net income | $4,789,005 | $4,002,905 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 1,183,871 | 934,238 |
Amortization | 516,187 | 270,644 |
Stock compensation expense | 561,856 | 490,060 |
Deferred income taxes | 207,024 | 94,010 |
Gain on disposal of property, plant and equipment | -200,000 | |
Changes in operating assets and liabilities | ||
Accounts receivable | -1,729,980 | 785,952 |
Inventories | -4,391,815 | 2,056,469 |
Prepaid expenses and other current assets | -268,052 | 333,099 |
Accounts payable | 1,879,889 | -1,751,664 |
Other accrued liabilities | 2,101,035 | -740,246 |
Total adjustments | -139,985 | 2,472,561 |
Net cash provided by operating activities | 4,649,020 | 6,475,466 |
Investing Activities: | ||
Purchase of plant, property and equipment | -2,042,173 | -4,591,929 |
Purchase of patents and trademarks | -118,470 | -102,140 |
Proceeds from the sales of plant, property and equipment | 773,104 | |
Payment received on mortgage receivable | 1,726,888 | |
Acquisition of First Aid Only, Inc. | -13,805,884 | |
Net cash used by investing activities | -15,193,423 | -2,967,181 |
Financing Activities: | ||
Net borrowings (repayment) of long-term debt | 1,235,012 | -1,408,000 |
Distributions to shareholders | -1,064,050 | -728,392 |
Issuance of common stock | 1,138,711 | 529,179 |
Net cash provided (used) by financing activities | 1,309,673 | -1,607,214 |
Effect of exchange rate changes | -123,375 | -7,172 |
Net (decrease) increase in cash and cash equivalents | -9,358,104 | 1,893,900 |
Cash and cash equivalents at beginning of year | 11,643,764 | 9,749,864 |
Cash and cash equivalents at end of year | 2,285,660 | 11,643,764 |
Supplemental cash flow information | ||
Cash paid for income taxes | 1,421,677 | 1,820,671 |
Cash paid for interest expense | $489,351 | $505,225 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Operations |
The operations of Acme United Corporation (the “Company”) consist of three reportable segments. The operations of the Company are structured and evaluated based on geographic location. The three reportable segments operate in the United States (including Asian operations), Canada and Europe. Principal products across all segments are scissors, shears, knives, rulers, pencil sharpeners, first aid kits, and related products which are sold primarily to wholesale, contract and retail stationery distributors, office supply super stores, mass market retailers, industrial distributors, school supply distributors, drug store retailers, sporting goods stores, hardware chains and wholesale florists. |
Accounting_Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Accounting Policies | 2. Accounting Policies |
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most sensitive and significant accounting estimates relate to customer rebates, valuation allowances for deferred income tax assets, obsolete and slow-moving inventories, potentially uncollectible accounts receivable, pension liability and accruals for income taxes. Actual results could differ from those estimates. | |
Principles of Consolidation - The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned by the Company. All significant intercompany accounts and transactions are eliminated in consolidation. | |
Translation of Foreign Currency - For foreign operations whose functional currencies are not U.S. dollars, assets and liabilities are translated at rates in effect at the end of the year; revenues and expenses are translated at average rates in effect during the year. Resulting translation adjustments are made directly to accumulated other comprehensive loss. Foreign currency transaction gains and losses are recognized in operating results. Foreign currency transaction losses, which are included in other expense, net, were $117,347 in 2014 and $88,125 in 2013. | |
Cash Equivalents - Investments with an original maturity of three months or less, as well as time deposits and certificates of deposit that are readily redeemable at the date of purchase, are considered cash equivalents. | |
Accounts Receivable - Accounts receivable are shown less an allowance for doubtful accounts of $128,318 at December 31, 2014 and $227,891 at December 31, 2013. | |
Inventories - Inventories are stated at the lower of cost, determined by the first-in, first-out method, or market. | |
Property, Plant and Equipment and Depreciation – Property, plant and equipment is recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the assets, which range from 3 to 30 years. | |
Intangible Assets– Intangible assets with finite useful lives are recorded at cost upon acquisition, and amortized over the term of the related contract or useful life, as applicable. Intangible assets held by the Company with finite useful lives include patents and trademarks. Patents and trademarks are amortized over their estimated useful lives. The weighted average amortization period for intangible assets at December 31, 2014 was 14 years. The Company periodically reviews the values recorded for intangible assets to assess recoverability from future operations whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. At December 31, 2014 and 2013, the Company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would that would require a test of recoverability on those assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. | |
Deferred Income Taxes - Deferred income taxes are provided for the differences between the financial statement and tax bases of assets and liabilities, and on operating loss carryovers, using tax rates in effect in years in which the differences are expected to reverse. | |
Revenue Recognition – The Company recognizes revenue from the sales of its products when ownership transfers to the customers, which occurs either at the time of shipment or upon delivery based upon contractual terms with the customer. The Company recognizes customer program costs, including rebates, cooperative advertising, slotting fees and other sales related discounts, as a reduction to sales. | |
Research and Development – Research and development costs ($665,000 in 2014 and $602,985 in 2013) are expensed as incurred. | |
Shipping Costs – The costs of shipping product to our customers ($4,399,364 in 2014 and $3,244,487 in 2013) are included in selling, general and administrative expenses. | |
Advertising Costs – The Company expenses the production costs of advertising the first time that the related advertising takes place. Advertising costs ($1,660,687 in 2014 and $1,484,782 in 2013) are included in selling, general and administrative expenses. | |
Subsequent Events - The Company has evaluated events and transactions subsequent to December 31, 2014 through the date the consolidated financial statements were included in this Form 10-K and filed with the SEC. | |
Concentration – The Company performs ongoing credit evaluations of its customers and generally does not require collateral for the extension of credit. Allowances for credit losses are provided and have been within management's expectations. At December 31, 2013, with respect to concentration risk related to accounts receivable, the Company had one customer that accounted for greater than 10% of total net receivables. In 2014 and 2013, the Company had two customers that individually exceeded 10% of consolidated net sales. Net sales to these customers amounted to approximately 14% and 12% in 2014 and approximately 16% and 15% in 2013. | |
Recently Issued Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update on the reporting of amounts reclassified out of accumulated other comprehensive income, to improve the transparency of reporting. These reclassifications present the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income – but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The Company adopted this standard for reporting periods beginning after December 15, 2012. The adoption of this accounting standard has not had an impact on our consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”). ASU 2014-090 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company intends to adopt and implement ASU 2014-09 during the first quarter of fiscal 2017. Management is evaluating the provisions of this statement and evaluating what impact the adoption of ASU 20104-09 may have on the Company’s financial position or results of operations. | |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 3. Inventories | ||||||||
December 31, | |||||||||
Inventories consisted of: | 2014 | 2013 | |||||||
Finished goods | $ | 28,712,961 | $ | 26,004,042 | |||||
Work in process | 522,377 | 186,507 | |||||||
Materials and supplies | 4,435,860 | 2,028,333 | |||||||
$ | 33,671,198 | $ | 28,218,883 | ||||||
Inventories are stated net of valuation allowances for slow moving and obsolete inventory of $825,087 as of December 31, 2014 and $557,070 as of December 31, 2013. | |||||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets and Goodwill | 4. Intangible Assets and Goodwill | ||||||||
December 31, | |||||||||
Intangible assets consisted of: | 2014 | 2013 | |||||||
First Aid Only Tradename, Customer List | $ | 8,910,000 | $ | — | |||||
Patents | 2,111,978 | 2,054,316 | |||||||
Trademarks | 663,698 | 632,458 | |||||||
Pac-Kit Tradename, Customer List | 1,500,000 | 1,500,000 | |||||||
C-Thru, Customer List | 1,050,000 | 1,050,000 | |||||||
Goodwill | 1,375,000 | — | |||||||
15,610,676 | 5,236,774 | ||||||||
Accumulated amortization | 1,681,065 | 1,164,877 | |||||||
$ | 13,929,611 | $ | 4,071,897 | ||||||
Amortization expense for patents and trademarks for the years ended December 31, 2014, and 2013 were $516,187 and $270,644, respectively. The estimated aggregate amortization expense for each of the next five succeeding years, calculated on a similar basis, is as follows: 2015 - $710,924; 2016 - $709,099; 2017 - $705,156; 2018 - $684,146; and 2019 - $633,903. | |||||||||
Other_Accrued_Liabilities
Other Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Other Accrued Liabilities | 5. Other Accrued Liabilities | ||||||||
Other current and long-term accrued liabilities consisted of: | |||||||||
December 31, | 2014 | 2013 | |||||||
Customer rebates | $ | 4,128,082 | $ | 3,092,971 | |||||
Remediation liability | 265,876 | 39,044 | |||||||
Pension liability | 219,842 | 183,034 | |||||||
Other | 3,346,368 | 2,058,159 | |||||||
$ | 7,960,168 | $ | 5,373,208 | ||||||
Pension_and_Profit_Sharing
Pension and Profit Sharing | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Pension and Profit Sharing | 6. Pension and Profit Sharing | ||||||||||||||||
United States employees, hired prior to July 1, 1993, are covered by a funded, defined benefit pension plan. The benefits of this pension plan are based on years of service and the average compensation of the highest three consecutive years during the last ten years of employment. In December 1995, the Company's Board of Directors approved an amendment to the United States pension plan that terminated all future benefit accruals as of February 1, 1996, without terminating the pension plan. | |||||||||||||||||
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 contributed $190,118 to the plan and expects to contribute approximately $200,000 during 2015. | |||||||||||||||||
The plan asset weighted average allocation at December 31, 2014 and December 31, 2013, by asset category, were as follows: | |||||||||||||||||
Asset Category | 2014 | 2013 | |||||||||||||||
Equity Securities | 68% | 70% | |||||||||||||||
Fixed Income Securities | 29% | 29% | |||||||||||||||
Other Securities / Investments | 3% | 1% | |||||||||||||||
Total | 100% | 100% | |||||||||||||||
The Company’s investment policy for the pension plan is to minimize risk by balancing investments between equity securities and fixed income securities, utilizing a weighted average approach of 68% equity securities, 29% fixed income securities, and 3% cash investments. Plan funds are invested in long-term obligations with a history of moderate to low risk. | |||||||||||||||||
As of December 31, 2014 and 2013, equity securities in the pension plan included 10,000 shares of the Company's Common Stock, having a market value of $199,900 and $149,000, respectively. | |||||||||||||||||
The pension plan asset information included below is presented at fair value. ASC 820 establishes a framework for measuring fair value and requires disclosures about assets and liabilities measured at fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: | |||||||||||||||||
· | Level 1 – Inputs to the valuation methodology based on unadjusted quoted market prices in active markets that are accessible at the measurement date. | ||||||||||||||||
· | Level 2 – Inputs to the valuation methodology that include quoted market prices that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. | ||||||||||||||||
· | Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||||||||||||||||
The following tables present the pension plan assets by level within the fair value hierarchy as of December 31, 2014 and 2013: | |||||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money Market Fund | $ | 67,909 | $ | — | $ | — | $ | 67,909 | |||||||||
Acme United Common Stock | 199,900 | — | — | 199,900 | |||||||||||||
Equity Common and Collected Funds | — | 953,140 | — | 953,140 | |||||||||||||
Fixed Income Common and Collected Funds | — | 463,586 | — | 463,586 | |||||||||||||
Total | $ | 267,809 | $ | 1,416,726 | $ | — | $ | 1,684,535 | |||||||||
2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money Market Fund | $ | 8,322 | $ | — | $ | — | $ | 8,322 | |||||||||
Acme United Common Stock | 149,000 | — | — | 149,000 | |||||||||||||
Equity Common and Collected Funds | — | 1,054,416 | — | 1,054,416 | |||||||||||||
Fixed Income Common and Collected Funds | — | 491,864 | — | 491,864 | |||||||||||||
Total | $ | 157,322 | $ | 1,546,280 | $ | — | $ | 1,703,602 | |||||||||
Other disclosures related to the pension plan follow: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assumptions used to determine benefit obligation: | |||||||||||||||||
Discount rate | 3.23 | % | 3.78 | % | |||||||||||||
Changes in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | (1,886,636 | ) | $ | (2,225,693 | ) | |||||||||||
Interest cost | (69,806 | ) | (64,649 | ) | |||||||||||||
Service cost | (25,000 | ) | (40,000 | ) | |||||||||||||
Actuarial gain (loss) | (256,446 | ) | 51,022 | ||||||||||||||
Benefits and plan expenses paid | 333,511 | 392,684 | |||||||||||||||
Benefit obligation at end of year | (1,904,377 | ) | (1,886,636 | ) | |||||||||||||
Changes in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 1,703,602 | 1,325,402 | |||||||||||||||
Actual return on plan assets | 124,326 | 288,429 | |||||||||||||||
Employer contribution | 190,118 | 482,455 | |||||||||||||||
Benefits and plan expenses paid | (333,511 | ) | (392,684 | ) | |||||||||||||
Fair value of plan assets at end of year | 1,684,535 | 1,703,602 | |||||||||||||||
Funded status | $ | (219,842 | ) | $ | (183,034 | ) | |||||||||||
2014 | 2013 | ||||||||||||||||
Assumptions used to determine net periodic benefit cost: | |||||||||||||||||
Discount rate | 3.78 | % | 2.99 | % | |||||||||||||
Expected return on plan assets | 6 | % | 6 | % | |||||||||||||
Components of net benefit expense: | |||||||||||||||||
Interest cost | $ | 69,806 | $ | 64,649 | |||||||||||||
Service cost | 25,000 | 40,000 | |||||||||||||||
Expected return on plan assets | (93,292 | ) | (69,439 | ) | |||||||||||||
Amortization of prior service costs | 9,155 | 9,154 | |||||||||||||||
Amortization of actuarial loss | 116,118 | 141,171 | |||||||||||||||
Net periodic benefit cost | $ | 126,787 | $ | 185,535 | |||||||||||||
The Company employs a building block approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term historical relationships between equity securities and fixed income securities are preserved consistent with the widely-accepted capital market principle that assets with higher volatility generate higher returns over the long run. Our expected 6% long-term rate of return on plan assets is determined based on long-term historical performance of plan assets, current asset allocation and projected long-term rates of return. | |||||||||||||||||
The following table discloses the change recorded in other comprehensive income related to benefit costs: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of the year | $ | 1,279,751 | $ | 1,700,089 | |||||||||||||
Change in net loss | 225,412 | (270,011 | ) | ||||||||||||||
Amortization of actuarial loss | (116,118 | ) | (141,173 | ) | |||||||||||||
Amortization of prior service cost | (9,155 | ) | (9,154 | ) | |||||||||||||
Change recognized in other comprehensive income | 100,139 | (420,338 | ) | ||||||||||||||
Total recognized in other comprehensive income | $ | 1,379,890 | $ | 1,279,751 | |||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income: | |||||||||||||||||
Net actuarial loss | $ | 1,368,025 | $ | 1,258,731 | |||||||||||||
Prior service cost | 11,865 | 21,020 | |||||||||||||||
Total | $ | 1,379,890 | $ | 1,279,751 | |||||||||||||
In 2015, net periodic benefit cost will include approximately $115,000 of net actuarial loss and $9,000 of prior service cost. | |||||||||||||||||
The following benefits are expected to be paid: | |||||||||||||||||
2015 | $ | 238,000 | |||||||||||||||
2016 | 224,000 | ||||||||||||||||
2017 | 208,000 | ||||||||||||||||
2018 | 192,000 | ||||||||||||||||
2019 | 176,000 | ||||||||||||||||
Years 2020 - 2024 | 657,000 | ||||||||||||||||
The Company also has a The Company also has a qualified, profit sharing plan covering substantially all of its United States employees. Annual Company contributions to this profit sharing plan are determined by the Company’s Compensation Committee. For the years ended December 31, 2014 and 2013, the Company contributed 50% of employee’s contributions, up to the first 6% contributed by each employee. Total contribution expense under this profit sharing plan was $163,688 in 2014 and $139,421 in 2013. | |||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Taxes | 7. Income Taxes | ||||||||||
The amounts of income tax expense (benefit) reflected in operations is as follows: | |||||||||||
2014 | 2013 | ||||||||||
Current: | |||||||||||
Federal | $ | 1,063,043 | $ | 899,928 | |||||||
State | 171,003 | 118,092 | |||||||||
Foreign | 572,660 | 539,162 | |||||||||
1,806,706 | 1,557,182 | ||||||||||
Deferred: | |||||||||||
Federal | 184,616 | (59,240 | ) | ||||||||
State | 22,398 | (6,596 | ) | ||||||||
Foreign | — | (360 | ) | ||||||||
207,014 | (66,196 | ) | |||||||||
$ | 2,013,720 | $ | 1,490,986 | ||||||||
The current state tax provision was comprised of taxes on income, the minimum capital tax and other franchise taxes related to the jurisdictions in which the Company's facilities are located. | |||||||||||
A summary of United States and foreign income before income taxes follows: | |||||||||||
2014 | 2013 | ||||||||||
United States | $ | 3,877,541 | $ | 2,306,909 | |||||||
Foreign | 2,925,184 | 3,186,982 | |||||||||
$ | 6,802,725 | $ | 5,493,891 | ||||||||
As discussed in Note 10 below, for segment reporting, Direct Import sales are included in the United States segment. However, the revenues are earned by our Hong Kong subsidiary and related income taxes are paid in Hong Kong whose rate approximates 16.5%. As such, income of the Asian subsidiary is included in the foreign income before taxes. | |||||||||||
The following schedule reconciles the amounts of income taxes computed at the United States statutory rates to the actual amounts reported in operations. | |||||||||||
2014 | 2013 | ||||||||||
Federal income taxes at 34% statutory rate | $ | 2,203,901 | $ | 1,867,923 | |||||||
State and local taxes, net of federal income tax effect | 131,505 | 73,587 | |||||||||
Permanent items | 11,693 | 61,750 | |||||||||
Foreign tax rate difference | (471,469 | ) | (515,729 | ) | |||||||
Change in deferred income tax valuation allowance | 138,090 | 3,455 | |||||||||
Provision for income taxes | $ | 2,013,720 | $ | 1,490,986 | |||||||
The following summarizes deferred income tax assets and liabilities: | |||||||||||
2014 | 2013 | ||||||||||
Deferred income tax liabilities: | |||||||||||
Plant, property and equipment | $ | 469,247 | $ | 450,705 | |||||||
469,247 | 450,705 | ||||||||||
Deferred income tax assets: | |||||||||||
Asset valuations | 608,905 | 508,686 | |||||||||
Contribution carryforward | 110,700 | ||||||||||
Operating loss carryforwards and credits | 138,090 | 2,205,244 | |||||||||
Pension | 166,625 | 178,908 | |||||||||
Foreign tax credit | 28,049 | 43,575 | |||||||||
Other | 734,993 | 885,185 | |||||||||
1,676,662 | 3,932,298 | ||||||||||
Net deferred income tax asset before valuation allowance | 1,207,415 | 3,481,593 | |||||||||
Valuation allowance | (138,090 | ) | (2,205,244 | ) | |||||||
Net deferred income tax asset | $ | 1,069,325 | $ | 1,276,349 | |||||||
In 2014, the Company evaluated its tax positions for years which remain subject to examination by major tax jurisdictions, in accordance with the requirements of ASC 740 and as a result concluded no adjustment was necessary. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s evaluation of uncertain tax positions was performed for the tax years ended December 31, 2011 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2014. | |||||||||||
In accordance with the Company’s accounting policies, any interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | |||||||||||
The Company provides deferred income taxes on foreign subsidiary earnings, which are not considered permanently reinvested. Earnings permanently reinvested would become taxable upon the sale or liquidation of a foreign subsidiary or upon the remittance of dividends. During 2014, the Company repatriated a total of $11.8 million of foreign earnings, consisting of $10.5 million from its Hong Kong subsidiary and $1.3 million from its Canadian subsidiary. U.S. income taxes on those repatriated earnings have been partially offset by foreign tax credits. The Company plans to continue to repatriate future earnings of its Canadian subsidiary and will provide for U.S. income taxes accordingly. Foreign subsidiary earnings of $3,177,348 and $13,884,269 are considered permanently reinvested as of December 31, 2014 and 2013, respectively, and no deferred income taxes have been provided on these foreign earnings. | |||||||||||
Due to the uncertain nature of the realization of the Company's deferred income tax assets based on past performance of its German subsidiary and carry forward expiration dates, the Company has recorded a valuation allowance for the amount of deferred income tax assets which are not expected to be realized. This valuation allowance, all of which is related to deferred tax assets resulting from net operating losses of the Company’s German subsidiary, is subject to periodic review, and if the allowance is reduced, the tax benefit will be recorded in future operations as a reduction of the Company's tax expense. | |||||||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt | |
Debt | 8. Debt |
Long term debt consists of borrowings under the Company’s revolving loan agreement with HSBC Bank, N.A. As of December 31, 2014, $24,146,841 was outstanding and $15,853,159 was available for borrowing under the Company’s revolving loan agreement. | |
On April 25, 2013, the Company amended its 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% (rate was 2% at December 31, 2014). 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. During the fourth quarter of 2013, the Company and HSBC agreed to make certain technical amendments to a covenant of the amended loan agreement to accommodate the purchase of the Rocky Mount facility. Funds borrowed under the agreement may be used for working capital, general operating expenses, share repurchases, acquisitions and certain other purposes. Under the amended loan agreement, the Company continues to be required to maintain specific amounts of tangible net worth, a debt/net worth ratio, and a fixed charge coverage ratio. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies |
The Company leases certain office, manufacturing and warehouse facilities and various equipment under non-cancelable operating leases. Total rent expense was $894,685 and $893,509 in 2014 and 2013, respectively. Minimum annual rental commitments under non-cancelable leases with remaining terms of one year or more as of December 31, 2014 are as follows: 2015 - $1,122,523; 2016 - $757,120; 2017 - $685,726; 2018 - $690,597; 2019 – $668,100 and thereafter - $1,009,960. | |
There are no pending material legal proceedings to which the Company is a party or, to the actual knowledge of the Company, contemplated by any governmental authority. | |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Information | |||||||||||||||||
Segment Information | 10. 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 include (1) United States; (2) Canada and (3) Europe. The financial results for the Company’s Asian operations have been aggregated with the results of its United States operations to form one reportable segment called the “United States segment”. Sales in the United States segment include both domestic sales as well as direct import sales. Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and first aid products for school, office, home, hardware, sporting goods and industrial use. | |||||||||||||||||
Domestic sales orders are filled from the Company’s distribution centers in North Carolina, Connecticut and Washington. 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 16% and 17% of the Company’s total net sales in 2014 and 2013, respectively. | |||||||||||||||||
The Chief Operating Decision Maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment revenues are defined as total revenues, including both external customer revenue and inter-segment revenue. Segment operating earnings are defined as segment revenues, less cost of goods sold and operating expenses. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Inter-segment amounts are eliminated to arrive at consolidated financial results. | |||||||||||||||||
Financial data by segment: | |||||||||||||||||
2014 | |||||||||||||||||
(000's omitted) | United States | Canada | Europe | Consolidated | |||||||||||||
Net sales | $ | 91,298 | $ | 8,841 | $ | 7,083 | $ | 107,222 | |||||||||
Operating income | 6,760 | 625 | 9 | 7,394 | |||||||||||||
Assets | 70,525 | 4,363 | 4,419 | 79,308 | |||||||||||||
Additions to property, plant and equipment | 2,011 | 12 | 19 | 2,042 | |||||||||||||
Depreciation and amortization | 1,618 | 7 | 75 | 1,700 | |||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 73,608 | $ | 8,092 | $ | 7,877 | $ | 89,577 | |||||||||
Operating income | 5,082 | 557 | 240 | 5,879 | |||||||||||||
Assets | 57,068 | 5,329 | 5,682 | 68,079 | |||||||||||||
Additions to property, plant and equipment | 4,500 | 47 | 45 | 4,592 | |||||||||||||
Depreciation and amortization | 1,116 | 9 | 80 | 1,205 | |||||||||||||
The following is a reconciliation of segment operating income to consolidated income before taxes: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total operating income | $ | 7,394 | $ | 5,879 | |||||||||||||
Interest expense, net | 473 | 350 | |||||||||||||||
Other expense, net | 118 | 35 | |||||||||||||||
Consolidated income before taxes | $ | 6,803 | $ | 5,494 | |||||||||||||
Net Income | $ | 4,789 | $ | 4,003 | |||||||||||||
The table below presents revenue by geographic area. Revenues are attributed to countries based on location of the customer. | |||||||||||||||||
Revenues | 2014 | 2013 | |||||||||||||||
United States | $ | 90,366 | $ | 72,676 | |||||||||||||
International: | |||||||||||||||||
Canada | 8,841 | 8,092 | |||||||||||||||
Europe | 7,083 | 7,877 | |||||||||||||||
Other | 932 | 932 | |||||||||||||||
Total International | $ | 16,856 | $ | 16,901 | |||||||||||||
Total Revenues | $ | 107,222 | $ | 89,577 | |||||||||||||
Stock_Option_Plans
Stock Option Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||
Stock Option Plans | 11. Stock Option Plans | ||||||||||||||||||||||
The Company has two plans under which it grants stock options: the 2005 Non-Salaried Director Stock Option Plan and the 2012 Employee Stock Option Plan; and two plans under which the Company no longer grants options but under which certain options remain outstanding: the 1996 Non-Salaried Director Stock Option Plan and the 2002 Employee stock Option Plan. | |||||||||||||||||||||||
The Employee Plan, which became effective April 23, 2012, provides for the issuance of incentive and nonqualified stock options at an exercise price equal to the fair market value of the Common Stock on the date the option is granted. The terms of the options granted are subject to the provisions of the Employee Plan. Options granted under the Employee Plan vest 25% one day after the first anniversary of the grant date and 25% one day after each of the next three anniversaries. As of December 31, 2014, the number of shares available for grant under the Employee Plan was 14,975. Under the terms of the Employee Plan, no option may be granted under that plan after the tenth anniversary of the adoption of the plan. Options outstanding under the Company’s 2002 Employee Stock Option Plan have the same vesting schedule as the 2012 Employee plan. | |||||||||||||||||||||||
The Director Plan, as amended, provides for the issuance of stock options for up to 180,000 shares of the Company's common stock to non-salaried directors. Under the Director Plan, Directors elected on April 25, 2005 and at subsequent Annual Meetings who have not received any prior grant under this or previous plans receive an initial grant of an option to purchase 5,000 shares of Common Stock (the “Initial Option”). Each year, each elected Director not receiving an Initial Option will receive a 5,000 share option (the “Annual Option”). The Initial Option vests 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each Annual Option becomes fully exercisable one day after the date of grant. The exercise price of each option granted equals the fair market value of the Common Stock on the date the option is granted, and expires ten (10) years from the date of grant. As of December 31, 2014, the number of shares available for grant under the Director Plan was 21,500. | |||||||||||||||||||||||
A summary of changes in options issued under the Company’s stock option plans follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Options outstanding at the beginning of the year | 1,236,063 | 1,118,688 | |||||||||||||||||||||
Options granted | 214,500 | 220,500 | |||||||||||||||||||||
Options forfeited | (2,500 | ) | (27,475 | ) | |||||||||||||||||||
Options exercised | (90,250 | ) | (75,650 | ) | |||||||||||||||||||
Options outstanding at the end of the year | 1,357,813 | 1,236,063 | |||||||||||||||||||||
Options exercisable at the end of the year | 880,743 | 771,208 | |||||||||||||||||||||
Common stock available for future grants at the end of the year | 36,475 | 38,975 | |||||||||||||||||||||
Weighted average exercise price per share: | |||||||||||||||||||||||
Granted | $ | 16.68 | $ | 13.38 | |||||||||||||||||||
Forfeited | 14.22 | 12.17 | |||||||||||||||||||||
Exercised | 12.62 | 6.89 | |||||||||||||||||||||
Outstanding | 12.35 | 11.61 | |||||||||||||||||||||
Exercisable | 11.53 | 11.64 | |||||||||||||||||||||
A summary of options outstanding at December 31, 2014 is as follows: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted- | Weighted- | Number Exercisable | Weighted- | ||||||||||||||||||
Average Remaining Contractual Life (Years) | Average Exercise Price | Average Exercise Price | |||||||||||||||||||||
$6.81 to $10.25 | 500,188 | 6 | $ | 9.44 | 430,243 | $ | 9.37 | ||||||||||||||||
$10.26 to $13.62 | 302,875 | 6 | 11.7 | 211,625 | 11.97 | ||||||||||||||||||
$13.63 to $15.33 | 309,750 | 5 | 14.38 | 188,375 | 14.72 | ||||||||||||||||||
$15.34 to $17.03 | 245,000 | 8 | 16.56 | 50,500 | 16.14 | ||||||||||||||||||
1,357,813 | 880,743 | ||||||||||||||||||||||
The weighted average remaining contractual life of all outstanding stock options is 6 years. | |||||||||||||||||||||||
Stock Based Compensation | |||||||||||||||||||||||
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of employee and non-employee director stock options. The determination of the fair value of stock-based payment awards on the date of grant, using an option-pricing model, is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected term”), the estimated volatility of the Company’s Common Stock price over the expected term (“volatility”) and the number of options that will not fully vest in accordance with applicable vesting requirements (“forfeitures”). | |||||||||||||||||||||||
The Company estimates the expected term of options granted by evaluating various factors, including the vesting period, historical employee information, as well as current and historical stock prices and market conditions. The Company estimates the volatility of its common stock by calculating historical volatility based on the closing stock price on the last day of each of the 60 months leading up to the month the option was granted. The risk-free interest rate that the Company uses in the option valuation model is the interest rate on U.S. Treasury zero-coupon bond issues with remaining terms similar to the expected term of the options granted. Historical information was the basis for calculating the dividend yield. The Company is required to estimate forfeitures at the time of grant and to revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company used a mix of historical data and future assumptions to estimate pre-vesting option forfeitures and to record stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized over the requisite service periods of the awards, which are generally the vesting periods. | |||||||||||||||||||||||
The assumptions used to value option grants for the twelve months ended December 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Expected life in years | 5 | 5 | |||||||||||||||||||||
Interest rate | 1.53 – 1.77% | 0.70 – 1.45% | |||||||||||||||||||||
Volatility | .245-.282 | .317-.328 | |||||||||||||||||||||
Dividend yield | 2.00% | 2.10% - 2.70% | |||||||||||||||||||||
Total stock-based compensation recognized in the Company’s consolidated statements of operations for the years ended December 31, 2014 and 2013 was $561,856 and $490,060, respectively. At December 31, 2014, there was approximately $1,040,024 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based payments granted to the Company’s employees. As of December 31, 2014, the remaining unamortized expense is expected to be recognized over a weighted average period of 3 years. | |||||||||||||||||||||||
The weighted average fair value at the date of grant for options granted during 2014 and 2013 was $3.27 and $3.19 per option, respectively. The aggregate intrinsic value of outstanding options was $10,363,091 at December 31, 2014. The aggregate intrinsic value of exercisable options was $7,454,633 at December 31, 2014. The aggregate intrinsic value of options exercised during 2014 was $377,725. | |||||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | 12. Earnings Per Share | ||||||||
The calculation of earnings per share follows: | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income | $ | 4,789,005 | $ | 4,002,905 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share: | |||||||||
Weighted average shares outstanding | 3,239,753 | 3,167,764 | |||||||
Effect of dilutive employee stock options | 285,750 | 115,698 | |||||||
Denominator for dilutive earnings per share | 3,525,504 | 3,283,461 | |||||||
Basic earnings per share | $ | 1.48 | $ | 1.26 | |||||
Dilutive earnings per share | $ | 1.36 | $ | 1.22 | |||||
For 2014 and 2013, respectively, 183,000 and 479,750 stock options were excluded from diluted earnings per share calculations because they would have been anti-dilutive. | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive (Loss) Income | 13. Accumulated Other Comprehensive (loss) income | ||||||||||||
The components of accumulated other comprehensive (loss) income follow: | |||||||||||||
Foreign currency translation adjustment | Net prior service credit and actuarial losses | Total | |||||||||||
Balances, December 31, 2012 | $ | 245,346 | $ | (1,032,238 | ) | $ | (786,893 | ) | |||||
Change in net prior service credit | |||||||||||||
and actuarial losses, net of tax | 241,365 | 241,365 | |||||||||||
Translation adjustment | (138,993 | ) | (138,993 | ) | |||||||||
Balances, December 31, 2013 | $ | 106,353 | $ | (790,873 | ) | $ | (684,521 | ) | |||||
Change in net prior service credit | |||||||||||||
and actuarial losses, net of tax | (104,459 | ) | (104,459 | ) | |||||||||
Translation adjustment | (858,118 | ) | (858,118 | ) | |||||||||
Balances, December 31, 2014 | $ | (751,765 | ) | $ | (895,332 | ) | $ | (1,647,098 | ) | ||||
Financial_Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Financial Instruments | |
Financial Instruments | 14. Financial Instruments |
The carrying value of the Company’s bank debt is a reasonable estimate of fair value because of the nature of its payment terms. | |
Quarterly_Data_unaudited
Quarterly Data (unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Data (unaudited) | 15. Quarterly Data (unaudited) | ||||||||||||||||||||
Quarters (000's omitted, except per share data) | |||||||||||||||||||||
2014 | First | Second | Third | Fourth | Total | ||||||||||||||||
Net sales | $ | 19,152 | $ | 33,396 | $ | 30,008 | $ | 24,666 | $ | 107,222 | |||||||||||
Cost of goods sold | 12,275 | 21,675 | 19,393 | 15,694 | 69,037 | ||||||||||||||||
Net income | 368 | 2,543 | 1,189 | 689 | 4,789 | ||||||||||||||||
Basic earnings per share | $ | 0.12 | $ | 0.79 | $ | 0.37 | $ | 0.21 | $ | 1.48 | |||||||||||
Diluted earnings per share | $ | 0.11 | $ | 0.72 | $ | 0.34 | $ | 0.19 | $ | 1.36 | |||||||||||
Dividends per share | $ | 0.08 | $ | 0.08 | $ | 0.09 | $ | 0.09 | $ | 0.34 | |||||||||||
2013 | First | Second | Third | Fourth | Total | ||||||||||||||||
Net sales | $ | 17,651 | $ | 28,412 | $ | 22,135 | $ | 21,379 | $ | 89,577 | |||||||||||
Cost of goods sold | 11,224 | 18,330 | 14,195 | 14,004 | 57,753 | ||||||||||||||||
Net income | 309 | 2,211 | 959 | 524 | 4,003 | ||||||||||||||||
Basic earnings per share | $ | 0.1 | $ | 0.7 | $ | 0.3 | $ | 0.16 | $ | 1.26 | |||||||||||
Diluted earnings per share | $ | 0.1 | $ | 0.68 | $ | 0.29 | $ | 0.15 | $ | 1.22 | |||||||||||
Dividends per share | $ | 0.07 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.31 | |||||||||||
Earnings per share were computed independently for each of the quarters presented. Therefore, the sum of the four quarterly earnings per share amounts may not necessarily equal the earnings per share for the year. | |||||||||||||||||||||
Sale_of_Property
Sale of Property | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Sale Of Property | |||||||||||||||||
Sale of Property | 16. Sale of Property | ||||||||||||||||
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. 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 applicable governmental standards. The Company is in the process of winding down its monitoring activities at the site and is waiting for final approval from the Connecticut Department of Environmental Protection. At December 31, 2014, the Company had approximately $6,000 remaining in its accrual related to the environmental remediation, all of which was classified as a current liability at that date. | |||||||||||||||||
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. 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 costs. | |||||||||||||||||
Remediation work on the Fremont project began in the third quarter of 2014 and is expected to 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 after the completion of the remediation and be complete by the end of 2020. | |||||||||||||||||
The gain on the sale of the Fremont property 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 | |||||||||||||||
The change in the accrual for environmental remediation for the twelve months ended December 31, 2014 follows (in thousands): | |||||||||||||||||
Balance at | Estimated Costs | Payments | Balance at | ||||||||||||||
31-Dec-13 | 31-Dec-14 | ||||||||||||||||
Fremont, NC | — | $ | 300 | $ | (40 | ) | $ | 260 | |||||||||
Bridgeport, CT | $ | 39 | — | $ | (33 | ) | $ | 6 | |||||||||
Total | $ | 39 | $ | 300 | $ | (57 | ) | $ | 266 | ||||||||
Business_Combination
Business Combination | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combination | |||||||||
Business Combination | 17. Business Combinations | ||||||||
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. 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 which consist of trade names, customer relationship, covenant not-to-compete and goodwill. In addition, the Company assumed approximately $1.2 million in accounts payables and accrued expenses. During the twelve months ended December 31, 2014, the Company incurred a total of approximately $100,000, 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 | ||||||||
Customer Relationships | 5,430 | ||||||||
Trade Name | 3,410 | ||||||||
Covenant Not-to-Compete | 70 | ||||||||
Goodwill | 1,340 | ||||||||
Total assets | $ | 15,071 | |||||||
Liabilities | |||||||||
Accounts Payable | $ | 1,019 | |||||||
Accrued Expense | 252 | ||||||||
Total liabilities | $ | 1,271 | |||||||
Net sales from the date of acquisition through December 31, 2014 attributable to First Aid Only were approximately $10.4 million. Net income from the date of acquisition through December 31, 2014 attributable to First Aid Only was $500,000. | |||||||||
Pro forma results of operations (unaudited and in thousands) of the Company for the years ended December 31, 2014 and 2013 as if the First Aid Only acquisition occurred on January 1 of that year are as follows: | |||||||||
Year ended | Year Ended | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Net Sales | $ | 114,300 | $ | 107,200 | |||||
Net Income | 4,900 | 4,500 | |||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies Policies | |
Estimates | Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most sensitive and significant accounting estimates relate to customer rebates, valuation allowances for deferred income tax assets, obsolete and slow-moving inventories, potentially uncollectible accounts receivable, pension liability and accruals for income taxes. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned by the Company. All significant intercompany accounts and transactions are eliminated in consolidation. |
Translation of Foreign Currency | Translation of Foreign Currency - For foreign operations whose functional currencies are not U.S. dollars, assets and liabilities are translated at rates in effect at the end of the year; revenues and expenses are translated at average rates in effect during the year. Resulting translation adjustments are made directly to accumulated other comprehensive loss. Foreign currency transaction gains and losses are recognized in operating results. Foreign currency transaction losses, which are included in other expense, net, were $117,347 in 2014 and $88,125 in 2013. |
Cash Equivalents | Cash Equivalents - Investments with an original maturity of three months or less, as well as time deposits and certificates of deposit that are readily redeemable at the date of purchase, are considered cash equivalents. |
Accounts Receivable | Accounts Receivable - Accounts receivable are shown less an allowance for doubtful accounts of $128,318 at December 31, 2014 and $227,891 at December 31, 2013. |
Inventories | Inventories - Inventories are stated at the lower of cost, determined by the first-in, first-out method, or market. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation – Property, plant and equipment is recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the assets, which range from 3 to 30 years. |
Intangible Assets | Intangible Assets– Intangible assets with finite useful lives are recorded at cost upon acquisition, and amortized over the term of the related contract or useful life, as applicable. Intangible assets held by the Company with finite useful lives include patents and trademarks. Patents and trademarks are amortized over their estimated useful lives. The weighted average amortization period for intangible assets at December 31, 2014 was 14 years. The Company periodically reviews the values recorded for intangible assets to assess recoverability from future operations whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. At December 31, 2014 and 2013, the Company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would that would require a test of recoverability on those assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. |
Deferred Income Taxes | Deferred Income Taxes - Deferred income taxes are provided for the differences between the financial statement and tax bases of assets and liabilities, and on operating loss carryovers, using tax rates in effect in years in which the differences are expected to reverse. |
Revenue Recognition | Revenue Recognition – The Company recognizes revenue from the sales of its products when ownership transfers to the customers, which occurs either at the time of shipment or upon delivery based upon contractual terms with the customer. The Company recognizes customer program costs, including rebates, cooperative advertising, slotting fees and other sales related discounts, as a reduction to sales. |
Research and Development | Research and Development – Research and development costs ($665,000 in 2014 and $602,985 in 2013) are expensed as incurred. |
Shipping Costs | Shipping Costs – The costs of shipping product to our customers ($4,399,364 in 2014 and $3,244,487 in 2013) are included in selling, general and administrative expenses. |
Advertising Costs | Advertising Costs – The Company expenses the production costs of advertising the first time that the related advertising takes place. Advertising costs ($1,660,687 in 2014 and $1,484,782 in 2013) are included in selling, general and administrative expenses. |
Subsequent Events | Subsequent Events - The Company has evaluated events and transactions subsequent to December 31, 2014 through the date the consolidated financial statements were included in this Form 10-K and filed with the SEC. |
Concentration | Concentration – The Company performs ongoing credit evaluations of its customers and generally does not require collateral for the extension of credit. Allowances for credit losses are provided and have been within management's expectations. At December 31, 2013, with respect to concentration risk related to accounts receivable, the Company had one customer that accounted for greater than 10% of total net receivables. In 2014 and 2013, the Company had two customers that individually exceeded 10% of consolidated net sales. Net sales to these customers amounted to approximately 14% and 12% in 2014 and approximately 16% and 15% in 2013. |
Recently issued accounting standards | Recently Issued Accounting Standards |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update on the reporting of amounts reclassified out of accumulated other comprehensive income, to improve the transparency of reporting. These reclassifications present the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income – but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The Company adopted this standard for reporting periods beginning after December 15, 2012. The adoption of this accounting standard has not had an impact on our consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”). ASU 2014-090 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. The Company intends to adopt and implement ASU 2014-09 during the first quarter of fiscal 2017. Management is evaluating the provisions of this statement and evaluating what impact the adoption of ASU 20104-09 may have on the Company’s financial position or results of operations. | |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | December 31, | ||||||||
Inventories consisted of: | 2014 | 2013 | |||||||
Finished goods | $ | 28,712,961 | $ | 26,004,042 | |||||
Work in process | 522,377 | 186,507 | |||||||
Materials and supplies | 4,435,860 | 2,028,333 | |||||||
$ | 33,671,198 | $ | 28,218,883 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets and Goodwill | December 31, | ||||||||
Intangible assets consisted of: | 2014 | 2013 | |||||||
First Aid Only Tradename, Customer List | $ | 8,910,000 | $ | — | |||||
Patents | 2,111,978 | 2,054,316 | |||||||
Trademarks | 663,698 | 632,458 | |||||||
Pac-Kit Tradename, Customer List | 1,500,000 | 1,500,000 | |||||||
C-Thru, Customer List | 1,050,000 | 1,050,000 | |||||||
Goodwill | 1,375,000 | — | |||||||
15,610,676 | 5,236,774 | ||||||||
Accumulated amortization | 1,681,065 | 1,164,877 | |||||||
$ | 13,929,611 | $ | 4,071,897 | ||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Other current and long-term accrued liabilities consisted of: | ||||||||
December 31, | 2014 | 2013 | |||||||
Customer rebates | $ | 4,128,082 | $ | 3,092,971 | |||||
Remediation liability | 265,876 | 39,044 | |||||||
Pension liability | 219,842 | 183,034 | |||||||
Other | 3,346,368 | 2,058,159 | |||||||
$ | 7,960,168 | $ | 5,373,208 | ||||||
Pension_and_Profit_Sharing_Tab
Pension and Profit Sharing (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Plan Asset Allocation | Asset Category | 2014 | 2013 | ||||||||||||||
Equity Securities | 68% | 70% | |||||||||||||||
Fixed Income Securities | 29% | 29% | |||||||||||||||
Other Securities / Investments | 3% | 1% | |||||||||||||||
Total | 100% | 100% | |||||||||||||||
Pension Plan Assets by Level | 2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Money Market Fund | $ | 67,909 | $ | — | $ | — | $ | 67,909 | |||||||||
Acme United Common Stock | 199,900 | — | — | 199,900 | |||||||||||||
Equity Common and Collected Funds | — | 953,140 | — | 953,140 | |||||||||||||
Fixed Income Common and Collected Funds | — | 463,586 | — | 463,586 | |||||||||||||
Total | $ | 267,809 | $ | 1,416,726 | $ | — | $ | 1,684,535 | |||||||||
2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Money Market Fund | $ | 8,322 | $ | — | $ | — | $ | 8,322 | |||||||||
Acme United Common Stock | 149,000 | — | — | 149,000 | |||||||||||||
Equity Common and Collected Funds | — | 1,054,416 | — | 1,054,416 | |||||||||||||
Fixed Income Common and Collected Funds | — | 491,864 | — | 491,864 | |||||||||||||
Total | $ | 157,322 | $ | 1,546,280 | $ | — | $ | 1,703,602 | |||||||||
Changes in Benefit Obligation | 2014 | 2013 | |||||||||||||||
Assumptions used to determine benefit obligation: | |||||||||||||||||
Discount rate | 3.23 | % | 3.78 | % | |||||||||||||
Changes in benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | (1,886,636 | ) | $ | (2,225,693 | ) | |||||||||||
Interest cost | (69,806 | ) | (64,649 | ) | |||||||||||||
Service cost | (25,000 | ) | (40,000 | ) | |||||||||||||
Actuarial gain (loss) | (256,446 | ) | 51,022 | ||||||||||||||
Benefits and plan expenses paid | 333,511 | 392,684 | |||||||||||||||
Benefit obligation at end of year | (1,904,377 | ) | (1,886,636 | ) | |||||||||||||
Changes in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 1,703,602 | 1,325,402 | |||||||||||||||
Actual return on plan assets | 124,326 | 288,429 | |||||||||||||||
Employer contribution | 190,118 | 482,455 | |||||||||||||||
Benefits and plan expenses paid | (333,511 | ) | (392,684 | ) | |||||||||||||
Fair value of plan assets at end of year | 1,684,535 | 1,703,602 | |||||||||||||||
Funded status | $ | (219,842 | ) | $ | (183,034 | ) | |||||||||||
Components of Net Benefit Expense | 2014 | 2013 | |||||||||||||||
Assumptions used to determine net periodic benefit cost: | |||||||||||||||||
Discount rate | 3.78 | % | 2.99 | % | |||||||||||||
Expected return on plan assets | 6 | % | 6 | % | |||||||||||||
Components of net benefit expense: | |||||||||||||||||
Interest cost | $ | 69,806 | $ | 64,649 | |||||||||||||
Service cost | 25,000 | 40,000 | |||||||||||||||
Expected return on plan assets | (93,292 | ) | (69,439 | ) | |||||||||||||
Amortization of prior service costs | 9,155 | 9,154 | |||||||||||||||
Amortization of actuarial loss | 116,118 | 141,171 | |||||||||||||||
Net periodic benefit cost | $ | 126,787 | $ | 185,535 | |||||||||||||
Amounts Recognized in Other Comprehensive Income | 2014 | 2013 | |||||||||||||||
Balance at beginning of the year | $ | 1,279,751 | $ | 1,700,089 | |||||||||||||
Change in net loss | 225,412 | (270,011 | ) | ||||||||||||||
Amortization of actuarial loss | (116,118 | ) | (141,173 | ) | |||||||||||||
Amortization of prior service cost | (9,155 | ) | (9,154 | ) | |||||||||||||
Change recognized in other comprehensive income | 100,139 | (420,338 | ) | ||||||||||||||
Total recognized in other comprehensive income | $ | 1,379,890 | $ | 1,279,751 | |||||||||||||
Net actuarial loss | $ | 1,368,025 | $ | 1,258,731 | |||||||||||||
Prior service cost | 11,865 | 21,020 | |||||||||||||||
Total | $ | 1,379,890 | $ | 1,279,751 | |||||||||||||
Benefits Expected to be Paid | |||||||||||||||||
2015 | $ | 238,000 | |||||||||||||||
2016 | 224,000 | ||||||||||||||||
2017 | 208,000 | ||||||||||||||||
2018 | 192,000 | ||||||||||||||||
2019 | 176,000 | ||||||||||||||||
Years 2020 - 2024 | 657,000 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Tax Expense (Benefit) | 2014 | 2013 | |||||||||
Current: | |||||||||||
Federal | $ | 1,063,043 | $ | 899,928 | |||||||
State | 171,003 | 118,092 | |||||||||
Foreign | 572,660 | 539,162 | |||||||||
1,806,706 | 1,557,182 | ||||||||||
Deferred: | |||||||||||
Federal | 184,616 | (59,240 | ) | ||||||||
State | 22,398 | (6,596 | ) | ||||||||
Foreign | — | (360 | ) | ||||||||
207,014 | (66,196 | ) | |||||||||
$ | 2,013,720 | $ | 1,490,986 | ||||||||
US and Foreign Income Before Income Taxes | 2014 | 2013 | |||||||||
United States | $ | 3,877,541 | $ | 2,306,909 | |||||||
Foreign | 2,925,184 | 3,186,982 | |||||||||
$ | 6,802,725 | $ | 5,493,891 | ||||||||
US Statutory Rate Reconciliation | 2014 | 2013 | |||||||||
Federal income taxes at 34% statutory rate | $ | 2,203,901 | $ | 1,867,923 | |||||||
State and local taxes, net of federal income tax effect | 131,505 | 73,587 | |||||||||
Permanent items | 11,693 | 61,750 | |||||||||
Foreign tax rate difference | (471,469 | ) | (515,729 | ) | |||||||
Change in deferred income tax valuation allowance | 138,090 | 3,455 | |||||||||
Provision for income taxes | $ | 2,013,720 | $ | 1,490,986 | |||||||
Deferred Tax Assets and Liabilities | 2014 | 2013 | |||||||||
Deferred income tax liabilities: | |||||||||||
Plant, property and equipment | $ | 469,247 | $ | 450,705 | |||||||
469,247 | 450,705 | ||||||||||
Deferred income tax assets: | |||||||||||
Asset valuations | 608,905 | 508,686 | |||||||||
Contribution carryforward | 110,700 | ||||||||||
Operating loss carryforwards and credits | 138,090 | 2,205,244 | |||||||||
Pension | 166,625 | 178,908 | |||||||||
Foreign tax credit | 28,049 | 43,575 | |||||||||
Other | 734,993 | 885,185 | |||||||||
1,676,662 | 3,932,298 | ||||||||||
Net deferred income tax asset before valuation allowance | 1,207,415 | 3,481,593 | |||||||||
Valuation allowance | (138,090 | ) | (2,205,244 | ) | |||||||
Net deferred income tax asset | $ | 1,069,325 | $ | 1,276,349 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Information Tables | |||||||||||||||||
Financial Data By Segment Table | Financial data by segment: | ||||||||||||||||
2014 | |||||||||||||||||
(000's omitted) | United States | Canada | Europe | Consolidated | |||||||||||||
Net sales | $ | 91,298 | $ | 8,841 | $ | 7,083 | $ | 107,222 | |||||||||
Operating income | 6,760 | 625 | 9 | 7,394 | |||||||||||||
Assets | 70,525 | 4,363 | 4,419 | 79,308 | |||||||||||||
Additions to property, plant and equipment | 2,011 | 12 | 19 | 2,042 | |||||||||||||
Depreciation and amortization | 1,618 | 7 | 75 | 1,700 | |||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 73,608 | $ | 8,092 | $ | 7,877 | $ | 89,577 | |||||||||
Operating income | 5,082 | 557 | 240 | 5,879 | |||||||||||||
Assets | 57,068 | 5,329 | 5,682 | 68,079 | |||||||||||||
Additions to property, plant and equipment | 4,500 | 47 | 45 | 4,592 | |||||||||||||
Depreciation and amortization | 1,116 | 9 | 80 | 1,205 | |||||||||||||
Reconciliation of Segment Operating Income to Consolidated Income Before Taxes | 2014 | 2013 | |||||||||||||||
Total operating income | $ | 7,394 | $ | 5,879 | |||||||||||||
Interest expense, net | 473 | 350 | |||||||||||||||
Other expense, net | 118 | 35 | |||||||||||||||
Consolidated income before taxes | $ | 6,803 | $ | 5,494 | |||||||||||||
Net Income | $ | 4,789 | $ | 4,003 | |||||||||||||
Revenue by Geographic Area | Revenues | 2014 | 2013 | ||||||||||||||
United States | $ | 90,366 | $ | 72,676 | |||||||||||||
International: | |||||||||||||||||
Canada | 8,841 | 8,092 | |||||||||||||||
Europe | 7,083 | 7,877 | |||||||||||||||
Other | 932 | 932 | |||||||||||||||
Total International | $ | 16,856 | $ | 16,901 | |||||||||||||
Total Revenues | $ | 107,222 | $ | 89,577 | |||||||||||||
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||
Stock Option Activity | 2014 | 2013 | |||||||||||||||||||||
Options outstanding at the beginning of the year | 1,236,063 | 1,118,688 | |||||||||||||||||||||
Options granted | 214,500 | 220,500 | |||||||||||||||||||||
Options forfeited | (2,500 | ) | (27,475 | ) | |||||||||||||||||||
Options exercised | (90,250 | ) | (75,650 | ) | |||||||||||||||||||
Options outstanding at the end of the year | 1,357,813 | 1,236,063 | |||||||||||||||||||||
Options exercisable at the end of the year | 880,743 | 771,208 | |||||||||||||||||||||
Common stock available for future grants at the end of the year | 36,475 | 38,975 | |||||||||||||||||||||
Weighted average exercise price per share: | |||||||||||||||||||||||
Granted | $ | 16.68 | $ | 13.38 | |||||||||||||||||||
Forfeited | 14.22 | 12.17 | |||||||||||||||||||||
Exercised | 12.62 | 6.89 | |||||||||||||||||||||
Outstanding | 12.35 | 11.61 | |||||||||||||||||||||
Exercisable | 11.53 | 11.64 | |||||||||||||||||||||
Summary of Options Outstanding | Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted- | Weighted- | Number Exercisable | Weighted- | ||||||||||||||||||
Average Remaining Contractual Life (Years) | Average Exercise Price | Average Exercise Price | |||||||||||||||||||||
$6.81 to $10.25 | 500,188 | 6 | $ | 9.44 | 430,243 | $ | 9.37 | ||||||||||||||||
$10.26 to $13.62 | 302,875 | 6 | 11.7 | 211,625 | 11.97 | ||||||||||||||||||
$13.63 to $15.33 | 309,750 | 5 | 14.38 | 188,375 | 14.72 | ||||||||||||||||||
$15.34 to $17.03 | 245,000 | 8 | 16.56 | 50,500 | 16.14 | ||||||||||||||||||
1,357,813 | 880,743 | ||||||||||||||||||||||
Assumptions Used to Value Option Grants | 2014 | 2013 | |||||||||||||||||||||
Expected life in years | 5 | 5 | |||||||||||||||||||||
Interest rate | 1.53 – 1.77% | 0.70 – 1.45% | |||||||||||||||||||||
Volatility | .245-.282 | .317-.328 | |||||||||||||||||||||
Dividend yield | 2.00% | 2.10% - 2.70% | |||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | 2014 | 2013 | |||||||
Numerator: | |||||||||
Net income | $ | 4,789,005 | $ | 4,002,905 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share: | |||||||||
Weighted average shares outstanding | 3,239,753 | 3,167,764 | |||||||
Effect of dilutive employee stock options | 285,750 | 115,698 | |||||||
Denominator for dilutive earnings per share | 3,525,504 | 3,283,461 | |||||||
Basic earnings per share | $ | 1.48 | $ | 1.26 | |||||
Dilutive earnings per share | $ | 1.36 | $ | 1.22 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Comprehensive (Loss) Income | Foreign currency translation adjustment | Net prior service credit and actuarial losses | Total | ||||||||||
Balances, December 31, 2012 | $ | 245,346 | $ | (1,032,238 | ) | $ | (786,893 | ) | |||||
Change in net prior service credit | |||||||||||||
and actuarial losses, net of tax | 241,365 | 241,365 | |||||||||||
Translation adjustment | (138,993 | ) | (138,993 | ) | |||||||||
Balances, December 31, 2013 | $ | 106,353 | $ | (790,873 | ) | $ | (684,521 | ) | |||||
Change in net prior service credit | |||||||||||||
and actuarial losses, net of tax | (104,459 | ) | (104,459 | ) | |||||||||
Translation adjustment | (858,118 | ) | (858,118 | ) | |||||||||
Balances, December 31, 2014 | $ | (751,765 | ) | $ | (895,332 | ) | $ | (1,647,098 | ) | ||||
Quarterly_Data_Tables
Quarterly Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Data | Quarters (000's omitted, except per share data) | ||||||||||||||||||||
2014 | First | Second | Third | Fourth | Total | ||||||||||||||||
Net sales | $ | 19,152 | $ | 33,396 | $ | 30,008 | $ | 24,666 | $ | 107,222 | |||||||||||
Cost of goods sold | 12,275 | 21,675 | 19,393 | 15,694 | 69,037 | ||||||||||||||||
Net income | 368 | 2,543 | 1,189 | 689 | 4,789 | ||||||||||||||||
Basic earnings per share | $ | 0.12 | $ | 0.79 | $ | 0.37 | $ | 0.21 | $ | 1.48 | |||||||||||
Diluted earnings per share | $ | 0.11 | $ | 0.72 | $ | 0.34 | $ | 0.19 | $ | 1.36 | |||||||||||
Dividends per share | $ | 0.08 | $ | 0.08 | $ | 0.09 | $ | 0.09 | $ | 0.34 | |||||||||||
2013 | First | Second | Third | Fourth | Total | ||||||||||||||||
Net sales | $ | 17,651 | $ | 28,412 | $ | 22,135 | $ | 21,379 | $ | 89,577 | |||||||||||
Cost of goods sold | 11,224 | 18,330 | 14,195 | 14,004 | 57,753 | ||||||||||||||||
Net income | 309 | 2,211 | 959 | 524 | 4,003 | ||||||||||||||||
Basic earnings per share | $ | 0.1 | $ | 0.7 | $ | 0.3 | $ | 0.16 | $ | 1.26 | |||||||||||
Diluted earnings per share | $ | 0.1 | $ | 0.68 | $ | 0.29 | $ | 0.15 | $ | 1.22 | |||||||||||
Dividends per share | $ | 0.07 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.31 | |||||||||||
Sale_of_Property_Tables
Sale of Property (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Sale Of Property Tables | |||||||||||||||||
Accrual for Environmental Remediation Table | (in thousands): | ||||||||||||||||
Balance at | Estimated Costs | Payments | Balance at | ||||||||||||||
31-Dec-13 | 31-Dec-14 | ||||||||||||||||
Fremont, NC | — | $ | 300 | $ | (40 | ) | $ | 260 | |||||||||
Bridgeport, CT | $ | 39 | — | $ | (33 | ) | $ | 6 | |||||||||
Total | $ | 39 | $ | 300 | $ | (57 | ) | $ | 266 | ||||||||
Gain on Sale | (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 | |||||||||||||||
Business_Combination_Business_
Business Combination - Business Combination (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combination - Business Combination Tables | |||||||||
Purchase Price Allocation | Assets: | ||||||||
Accounts Receivable | $ | 2,544 | |||||||
Inventory | 1,704 | ||||||||
Equipment | 463 | ||||||||
Prepaid expenses | 110 | ||||||||
Customer Relationships | 5,430 | ||||||||
Trade Name | 3,410 | ||||||||
Covenant Not-to-Compete | 70 | ||||||||
Goodwill | 1,340 | ||||||||
Total assets | $ | 15,071 | |||||||
Liabilities | |||||||||
Accounts Payable | $ | 1,019 | |||||||
Accrued Expense | 252 | ||||||||
Total liabilities | $ | 1,271 | |||||||
Proforma Results of Operations | Year ended | Year Ended | |||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Net Sales | $ | 114,300 | $ | 107,200 | |||||
Net Income | 4,900 | 4,500 | |||||||
Accounting_Policies_Accounting
Accounting Policies - Accounting Policies (Detail Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign currency transaction losses during period | $117,347 | $88,125 |
Allowance for doubtful accounts | 128,318 | 227,891 |
Weighted average intangible assets amortization period | 14 years | |
Research and development costs during period | 665,000 | 602,985 |
Shipping costs during period | 4,399,364 | 3,244,487 |
Advertising costs during period | $1,660,687 | $1,484,782 |
Major Customer No. 1 | ||
Net sales to major customers | 14.00% | 16.00% |
Major Customer No. 2 | ||
Net sales to major customers | 12.00% | 15.00% |
Greater Than 10% of Total Net Receivables | ||
Number of major customers | 1 | |
Exceeded 10% of Consolidated Net Sales | ||
Number of major customers | 2 | 2 |
Minimum Range | ||
Asset useful life | 3 years | |
Maximum Range | ||
Asset useful life | 30 years |
Inventories_Details_Narrative
Inventories (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Inventory valuation allowance | $825,087 | $557,070 |
Inventories_Inventories_Table_
Inventories - Inventories Table (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Finished goods | $28,712,961 | $26,004,042 |
Work in process | 522,377 | 186,507 |
Materials and supplies | 4,435,860 | 2,028,333 |
Total inventories | $33,671,198 | $28,218,883 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense - patents and trademarks | $516,187 | $270,644 |
2015 | 710,924 | |
2016 | 709,099 | |
2017 | 705,156 | |
2018 | 684,146 | |
2019 | $633,903 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Patents | $2,111,978 | $2,054,316 | |
Trademarks | 663,698 | 632,458 | |
C-Thru,Customer List | 1,050,000 | 1,050,000 | |
Goodwill | 1,375,000 | ||
Total Intangible Assets | 15,610,676 | 5,236,774 | |
Accumulated amortization | 1,681,065 | 1,164,877 | |
Net Intangible Assets | 13,929,611 | 4,071,897 | |
First Aid Only, Inc. | |||
Tradename, Customer List | 8,910,000 | ||
Goodwill | 1,340,000 | ||
Pac-Kit | |||
Tradename, Customer List | $1,500,000 | $1,500,000 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Payables and Accruals [Abstract] | ||
Customer rebates | $4,128,082 | $3,092,971 |
Remediation liability | 265,876 | 39,044 |
Pension liability | 219,842 | 183,034 |
Other | 3,346,368 | 2,058,159 |
Total accrued liabilities | $7,960,168 | $5,373,208 |
Pension_and_Profit_Sharing_Pla
Pension and Profit Sharing - Plan Asset Allocation (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Plan asset weighted average allocation | 100.00% | 100.00% |
Equity Securities | ||
Plan asset weighted average allocation | 68.00% | 70.00% |
Fixed Income Securities | ||
Plan asset weighted average allocation | 29.00% | 29.00% |
Other Securities/Investments | ||
Plan asset weighted average allocation | 3.00% | 1.00% |
Pension_and_Profit_Sharing_Pen
Pension and Profit Sharing - Pension Plan Assets by Fair Value Hiearchy (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension plan assets | $1,684,535 | $1,703,602 | $1,325,402 |
Money Market Fund | |||
Pension plan assets | 67,909 | 8,322 | |
Acme United Common Stock | |||
Pension plan assets | 199,900 | 149,000 | |
Equity Common and Collected Funds | |||
Pension plan assets | 953,140 | 1,054,416 | |
Fixed Income Common and Collected Funds | |||
Pension plan assets | 463,586 | 491,864 | |
Level 1 | |||
Pension plan assets | 267,809 | 157,322 | |
Level 1 | Money Market Fund | |||
Pension plan assets | 67,909 | 8,322 | |
Level 1 | Acme United Common Stock | |||
Pension plan assets | 199,900 | 149,000 | |
Level 2 | |||
Pension plan assets | 1,416,726 | 1,546,280 | |
Level 2 | Equity Common and Collected Funds | |||
Pension plan assets | 953,140 | 1,054,416 | |
Level 2 | Fixed Income Common and Collected Funds | |||
Pension plan assets | $463,586 | $491,864 |
Pension_and_Profit_Sharing_Ben
Pension and Profit Sharing - Benefit Obligation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions used to determine benefit obligation: | |||
Discount rate | 3.23% | 3.78% | |
Benefit obligation at beginning of year | ($1,904,377) | ($1,886,636) | ($2,225,693) |
Interest cost | -69,806 | -64,649 | |
Service cost | -9,000 | -25,000 | -40,000 |
Actuarial gain (loss) | 115,000 | -256,446 | 51,022 |
Benefits and plan expenses paid | 333,511 | 392,684 | |
Benefit obligation at end of year | ($1,904,377) | ($1,886,636) |
Pension_And_Profit_Sharing_Cha
Pension And Profit Sharing - Changes In Plan Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Fair value of plan assets at beginning of year | $1,703,602 | $1,325,402 |
Actual return on plan assets | 124,326 | 288,429 |
Employer contribution | 190,118 | 482,455 |
Benefits and plan expenses paid | -333,511 | -392,684 |
Fair value of plan assets at end of year | 1,684,535 | 1,703,602 |
Funded status | ($219,842) | ($183,034) |
Pension_and_Profit_Sharing_Per
Pension and Profit Sharing - Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.78% | 2.99% | |
Expected return on plan assets | 6.00% | 6.00% | |
Interest cost | $69,806 | $64,649 | |
Service cost | 9,000 | 25,000 | 40,000 |
Expected return on plan assets | -93,292 | -69,439 | |
Amortization of prior service costs | 9,155 | 9,154 | |
Amortization of actuarial loss | 116,118 | 141,171 | |
Net periodic benefit cost | $126,787 | $185,535 |
Pension_and_Profit_Sharing_Amo
Pension and Profit Sharing - Amounts Recognized in Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Balance at beginning of the year | $1,279,751 | $1,700,089 |
Change in net loss | 225,412 | -270,011 |
Amortization of actuarial loss | -116,118 | -141,173 |
Amortization of prior service cost | -9,155 | -9,154 |
Change recognized in other comprehensive income | 100,139 | -420,338 |
Total recognized in other comprehensive income | 1,379,890 | 1,279,751 |
Net actuarial loss | 1,368,025 | 1,258,731 |
Prior service cost | 11,865 | 21,020 |
Total | $1,379,890 | $1,279,751 |
Pension_and_Profit_Sharing_Est
Pension and Profit Sharing - Estimated Future Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $238,000 |
2016 | 224,000 |
2017 | 208,000 |
2018 | 192,000 |
2019 | 176,000 |
Years 2020 - 2024 | $657,000 |
Pension_and_Profit_Sharing_Det
Pension and Profit Sharing (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Company contributions to plan | $190,118 | ||
Expected plan contributions during 2015 | 200,000 | ||
Company shares included in plan | 10,000 | 10,000 | |
Market value of Company shares included in plan | 199,900 | 149,000 | |
Expected long-term rate of return on plan assets | 6.00% | 6.00% | |
Net actuarial loss | -115,000 | 256,446 | -51,022 |
Prior service cost | 9,000 | 25,000 | 40,000 |
Company contributions to profit sharing plan | 50.00% | ||
Employee contributions to profit sharing plan | 6.00% | ||
Total profit sharing contribution expense | $163,688 | $139,421 | |
Equity Securities | |||
Pension plan target asset allocation | 68.00% | ||
Fixed Income Securities | |||
Pension plan target asset allocation | 29.00% | ||
Cash Investments | |||
Pension plan target asset allocation | 3.00% |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign earnings repatriated during period | $11,800,000 | |
Foreign subsidiary earnings | 3,177,348 | 13,884,269 |
Hong Kong income tax rate | 16.50% | |
Hong Kong | ||
Foreign earnings repatriated during period | 10,500,000 | |
Canada | ||
Foreign earnings repatriated during period | $1,300,000 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Federal | $1,063,043 | $899,928 |
State | 171,003 | 118,092 |
Foreign | 572,660 | 539,162 |
Total Current | 1,806,706 | 1,557,182 |
Federal | 184,616 | -59,240 |
State | 22,398 | -6,596 |
Foreign | -360 | |
Total Deferred | 207,014 | -66,196 |
Total Income Tax Expense (Benefit) | $2,013,720 | $1,490,986 |
Income_Taxes_US_and_Foreign_In
Income Taxes - US and Foreign Income Before Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
United States | $3,877,541 | $2,306,909 |
Foreign | 2,925,184 | 3,186,982 |
Total | $6,802,725 | $5,493,891 |
Income_Taxes_US_Statutory_Rate
Income Taxes - US Statutory Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Federal income taxes at 34% statutory rate | $2,203,901 | $1,867,923 |
State and local taxes, net of federal income tax effect | 131,505 | 73,587 |
Permanent items | 11,693 | 61,750 |
Foreign tax rate difference | -471,469 | -515,729 |
Change in deferred income tax valuation allowance | 138,090 | 3,455 |
Provision for income taxes | $2,013,720 | $1,490,986 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Plant, property and equipment | $469,247 | $450,705 |
Total | 469,247 | 450,705 |
Asset valuations | 608,905 | 508,686 |
Contribution carryforward | 110,700 | |
Operating loss carryforwards and credits | 138,090 | 2,205,244 |
Pension | 166,625 | 178,908 |
Foreign tax credit | 28,049 | 43,575 |
Other | 734,993 | 885,185 |
Total | 1,676,662 | 3,932,298 |
Net deferred income tax asset before valuation allowance | 1,207,415 | 3,481,593 |
Valuation allowance | -138,090 | -2,205,244 |
Net deferred income tax asset | $1,069,325 | $1,276,349 |
Debt_Details_Narrative
Debt (Details Narrative) (USD $) | 1 Months Ended | |||
Apr. 30, 2013 | Dec. 31, 2014 | Apr. 25, 2013 | Apr. 05, 2012 | |
Debt Details Narrative | ||||
Outstanding borrowings under revolving loan agreement | $24,146,841 | |||
Amount available for borrowing under revolving loan agreement | 15,853,159 | |||
Credit facility borrowing capacity | $40,000,000 | $30,000,000 | ||
Interest rate of LIBOR plus percentage | 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 continues to be required to maintain specific amounts of tangible net worth, a debt/net worth ratio, and a fixed charge coverage ratio. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $894,685 | $893,509 |
Minimum Annual Rental Commitments | ||
2015 | 1,122,523 | |
2016 | 757,120 | |
2017 | 685,726 | |
2018 | 690,597 | |
2019 | 668,100 | |
Thereafter | $1,009,960 |
Segment_Information_Details_Na
Segment Information (Details Narrative) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Information Details Narrative | ||
Direct import sales to total net sales ratio | 16.00% | 17.00% |
Segment_Information_Financial_
Segment Information - Financial Data by Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $24,666,000 | $30,008,000 | $33,396,000 | $19,152,000 | $21,379,000 | $22,135,000 | $28,412,000 | $17,651,000 | $107,222,306 | $89,576,777 |
Operating income | 7,394,461 | 5,879,096 | ||||||||
Assets | 79,308,086 | 68,078,979 | 79,308,086 | 68,078,979 | ||||||
Additions to property, plant and equipment | 2,042,000 | 4,592,000 | ||||||||
Depreciation and amortization | 1,700,000 | 1,205,000 | ||||||||
United States | ||||||||||
Net sales | 91,298,000 | 73,608,000 | ||||||||
Operating income | 6,760,000 | 5,082,000 | ||||||||
Assets | 70,525,000 | 57,068,000 | 70,525,000 | 57,068,000 | ||||||
Additions to property, plant and equipment | 2,011,000 | 4,500,000 | ||||||||
Depreciation and amortization | 1,618,000 | 1,116,000 | ||||||||
Canada | ||||||||||
Net sales | 8,841,000 | 8,092,000 | ||||||||
Operating income | 625,000 | 557,000 | ||||||||
Assets | 4,363,000 | 5,329,000 | 4,363,000 | 5,329,000 | ||||||
Additions to property, plant and equipment | 12,000 | 47,000 | ||||||||
Depreciation and amortization | 7,000 | 9,000 | ||||||||
Europe | ||||||||||
Net sales | 7,083,000 | 7,877,000 | ||||||||
Operating income | 9,000 | 240,000 | ||||||||
Assets | 4,419,000 | 5,682,000 | 4,419,000 | 5,682,000 | ||||||
Additions to property, plant and equipment | 19,000 | 45,000 | ||||||||
Depreciation and amortization | $75,000 | $80,000 |
Reconciliation_of_Segment_Oper
Reconciliation of Segment Operating Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Segment Operating Income Details | ||||||||||
Total operating income | $7,394,461 | $5,879,096 | ||||||||
Interest expense, net | 473,486 | 350,334 | ||||||||
Other expense, net | 118,250 | 34,871 | ||||||||
Consolidated income before taxes | 6,802,725 | 5,493,891 | ||||||||
Net income | $689,000 | $1,189,000 | $2,543,000 | $368,000 | $524,000 | $959,000 | $2,211,000 | $309,000 | $4,789,005 | $4,002,905 |
Segment_Revenues_Details
Segment Revenues (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Total Revenues | $107,222,306 | $89,576,777 |
United States | ||
Total Revenues | 90,366,000 | 72,676,000 |
Canada | ||
Total Revenues | 8,841,000 | 8,092,000 |
Europe | ||
Total Revenues | 7,083,000 | 7,877,000 |
Other International | ||
Total Revenues | 932,000 | 932,000 |
Total International | ||
Total Revenues | $16,856,000 | $16,901,000 |
Stock_Option_Plans_Details_Nar
Stock Option Plans (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Shares available for grant | 36,475 | 38,975 |
Weighted average remaining contractual term | 6 years | |
Stock-based compensation | $561,856 | $490,060 |
Unrecognized compensation cost | 1,040,024 | |
Unrecognized compensation cost recognition period | 3 years | |
Weighted average fair value at the date of grant | $3.27 | $3.19 |
Aggregate intrinsic value of outstanding options | 10,363,091 | |
Aggregate intrinsic value of exercisable options | 7,454,633 | |
Aggregate intrinsic value of options exercised | $377,725 | |
Employee Plan | ||
Vesting term | Options granted under the Employee Plan vest 25% one day after the first anniversary of the grant date and 25% one day after each of the next three anniversaries. | |
Under the terms of the Employee Plan, no option may be granted under that plan after the tenth anniversary of the adoption of the plan. Options outstanding under the Company’s 2002 Employee Stock Option Plan have the same vesting schedule as the 2012 Employee plan. | ||
Shares available for grant | 14,975 | |
Director Plan | ||
Vesting term | The Initial Option vests 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each Annual Option becomes fully exercisable one day after the date of grant. The exercise price of each option granted equals the fair market value of the Common Stock on the date the option is granted, and expires ten (10) years from the date of grant. | |
Shares available for grant | 21,500 | |
Shares authorized under plan | 180,000 | |
Shares offered under initial option | 5,000 | |
Shares offered under annual option | 5,000 |
Stock_Option_Plans_Stock_Optio
Stock Option Plans - Stock Option Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options outstanding at the beginning of the year | 1,236,063 | 1,118,688 |
Options granted | 214,500 | 220,500 |
Options forfeited | -2,500 | -27,475 |
Options exercised | -90,250 | -75,650 |
Options outstanding at the end of the year | 1,357,813 | 1,236,063 |
Options exercisable at the end of the year | 880,743 | 771,208 |
Common stock available for future grants at the end of the year | 36,475 | 38,975 |
Granted | $16.68 | $13.38 |
Forfeited | $14.22 | $12.17 |
Exercised | $12.62 | $6.89 |
Outstanding | $12.35 | $11.61 |
Exercisable | $11.53 | $11.64 |
Stock_Option_Plans_Summary_of_
Stock Option Plans - Summary of Options Outstanding (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Number outstanding | 1,357,813 |
Number exercisable | 880,743 |
$6.81-$10.25 | |
Range of exercise prices, lower range | $6.81 |
Range of exercise prices, upper range | $10.25 |
Number outstanding | 500,188 |
Options outstanding weighted-average remaining contractual life (years) | 6 years |
Options outstanding weighted-average exercise price | $9.44 |
Number exercisable | 430,243 |
Options exercisable weighted-average exercise price | $9.37 |
$10.26-$13.62 | |
Range of exercise prices, lower range | $10.26 |
Range of exercise prices, upper range | $13.62 |
Number outstanding | 302,875 |
Options outstanding weighted-average remaining contractual life (years) | 6 years |
Options outstanding weighted-average exercise price | $11.70 |
Number exercisable | 211,625 |
Options exercisable weighted-average exercise price | $11.97 |
$13.63-$15.33 | |
Range of exercise prices, lower range | $13.63 |
Range of exercise prices, upper range | $15.33 |
Number outstanding | 309,750 |
Options outstanding weighted-average remaining contractual life (years) | 5 years |
Options outstanding weighted-average exercise price | $14.38 |
Number exercisable | 188,375 |
Options exercisable weighted-average exercise price | $14.72 |
$15.34-$17.03 | |
Range of exercise prices, lower range | $15.34 |
Range of exercise prices, upper range | $17.03 |
Number outstanding | 245,000 |
Options outstanding weighted-average remaining contractual life (years) | 8 years |
Options outstanding weighted-average exercise price | $16.56 |
Number exercisable | 50,500 |
Options exercisable weighted-average exercise price | $16.14 |
Stock_Option_Plans_Assumptions
Stock Option Plans - Assumptions Used to Value Option Grants (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected life in years | 5 years | 5 years |
Interest rate, minimum | 1.53% | 0.70% |
Interest rate, maximum | 1.77% | 1.45% |
Volatility, minimum | 0.25% | 0.32% |
Volatility, maximum | 0.28% | 0.33% |
Dividend yield | 2.00% | 2.10% - 2.70% |
Earnings_Per_Share_Details_Nar
Earnings Per Share (Details Narrative) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ||
Options excluded from earnings per share calculation | 183,000 | 479,750 |
Earnings_Per_Share_Earnings_Pe
Earnings Per Share - Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ||||||||||
Net income | $689,000 | $1,189,000 | $2,543,000 | $368,000 | $524,000 | $959,000 | $2,211,000 | $309,000 | $4,789,005 | $4,002,905 |
Weighted average shares outstanding | 3,239,753 | 3,167,764 | ||||||||
Effect of dilutive employee stock options | 285,750 | 115,698 | ||||||||
Denominator for dilutive earnings per share | 3,525,504 | 3,283,461 | ||||||||
Basic earnings per share | $0.21 | $0.37 | $0.79 | $0.12 | $0.16 | $0.30 | $0.70 | $0.10 | $1.48 | $1.26 |
Dilutive earnings per share | $0.19 | $0.34 | $0.72 | $0.11 | $0.15 | $0.29 | $0.68 | $0.10 | $1.36 | $1.22 |
Comprehensive_Income_Accumulat
Comprehensive Income - Accumulated Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive income, beginning balance | ($684,521) | ($786,893) |
Change in net prior service credit and actuarial losses, net of tax | -104,459 | 241,365 |
Translation adjustment | -858,118 | -138,993 |
Accumulated other comprehensive income, ending balance | -1,647,098 | -684,521 |
Foreign Currency Translation Adjustment | ||
Accumulated other comprehensive income, beginning balance | 106,353 | 245,346 |
Translation adjustment | -858,118 | -138,993 |
Accumulated other comprehensive income, ending balance | -751,765 | 106,353 |
Net Prior Service Credit and Actuarial Losses | ||
Accumulated other comprehensive income, beginning balance | -790,873 | -1,032,238 |
Change in net prior service credit and actuarial losses, net of tax | -104,459 | 241,365 |
Accumulated other comprehensive income, ending balance | ($895,332) | ($790,873) |
Quarterly_Data_Quarterly_Data_
Quarterly Data - Quarterly Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Net sales | $24,666,000 | $30,008,000 | $33,396,000 | $19,152,000 | $21,379,000 | $22,135,000 | $28,412,000 | $17,651,000 | $107,222,306 | $89,576,777 |
Cost of goods sold | 15,694,000 | 19,393,000 | 21,675,000 | 12,275,000 | 14,004,000 | 14,195,000 | 18,330,000 | 11,224,000 | 69,036,695 | 57,752,733 |
Net income | $689,000 | $1,189,000 | $2,543,000 | $368,000 | $524,000 | $959,000 | $2,211,000 | $309,000 | $4,789,005 | $4,002,905 |
Basic earnings per share | $0.21 | $0.37 | $0.79 | $0.12 | $0.16 | $0.30 | $0.70 | $0.10 | $1.48 | $1.26 |
Diluted earnings per share | $0.19 | $0.34 | $0.72 | $0.11 | $0.15 | $0.29 | $0.68 | $0.10 | $1.36 | $1.22 |
Dividends per share | $0.09 | $0.09 | $0.08 | $0.08 | $0.08 | $0.08 | $0.08 | $0.07 | $0.34 | $0.31 |
Sale_of_Property_Details_Narra
Sale of Property (Details Narrative) (USD $) | 1 Months Ended | 0 Months Ended | ||
Dec. 31, 2008 | Apr. 07, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accrual for environmental remediation and monitoring | $265,876 | $39,044 | ||
Bridgeport, CT | ||||
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. The property consists of approximately four acres of land and 48,000 sq. feet of warehouse space. The property was the site of the original Acme United scissor factory which opened in 1887 and was closed in 1996. | |||
Proceeds from sale of assets | 2,500,000 | |||
Mortgage receivable from sale of property | 2,000,000 | |||
Undiscounted environmental remediation liability | 1,800,000 | |||
Accrual for environmental remediation and monitoring | 6,000 | 39,000 | ||
Accrual for environmental remediation and monitoring, current | 6,000 | |||
Fremont, NC | ||||
Proceeds from sale of assets | 850,000 | |||
Undiscounted environmental remediation liability | 300,000 | |||
Accrual for environmental remediation and monitoring | $260,000 | $0 | ||
Minimum environmental remediation monitoring period (in years) | 5 years |
Sale_of_Property_Details
Sale of Property (Details) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Apr. 07, 2014 | |
Less: | ||
Gain on Sale | $200,000 | |
Fremont, NC | ||
Sales Price | 850,000 | |
Less: | ||
Transaction costs | 75,000 | |
Land | 140,000 | |
Building and Equipment (gross book value) | 1,715,000 | |
Building and Equipment - accum. Depreciation | 1,580,000 | |
Building and Equipment (net book value) | 135,000 | |
Environmental Remediation Liability | 300,000 | |
Gain on Sale | $200,000 |
Contingencies_Accrual_for_Envi
Contingencies - Accrual for Environmental Remediation (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Environmental remediation accrual at December 31, 2013 | $39,044 |
Estimated Costs | 300,000 |
Payments | -57,000 |
Environmental remediation accrual at December 31, 2014 | 265,876 |
Fremont, NC | |
Environmental remediation accrual at December 31, 2013 | 0 |
Estimated Costs | 300,000 |
Payments | -40,000 |
Environmental remediation accrual at December 31, 2014 | 260,000 |
Bridgeport, CT | |
Environmental remediation accrual at December 31, 2013 | 39,000 |
Payments | -33,000 |
Environmental remediation accrual at December 31, 2014 | $6,000 |
Business_Combination_Details_N
Business Combination (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 7 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2014 | |
Net sales | $24,666,000 | $30,008,000 | $33,396,000 | $19,152,000 | $21,379,000 | $22,135,000 | $28,412,000 | $17,651,000 | $107,222,306 | $89,576,777 | ||
Net income | 689,000 | 1,189,000 | 2,543,000 | 368,000 | 524,000 | 959,000 | 2,211,000 | 309,000 | 4,789,005 | 4,002,905 | ||
First Aid Only, Inc. | ||||||||||||
Purchase price | 13,800,000 | |||||||||||
Purchase price allocation to equipment and other assets | 600,000 | 600,000 | ||||||||||
Purchase price allocated to inventory | 1,704,000 | 1,704,000 | ||||||||||
Purchase price allocated to accounts receivables | 2,544,000 | 2,544,000 | ||||||||||
Purchase price allocated to intangible assets | 10,300,000 | 10,300,000 | ||||||||||
Purchase price allocated to accounts payables and accrued expenses | 1,200,000 | 1,200,000 | ||||||||||
Net sales | 10,400,000 | |||||||||||
Net income | 500,000 | |||||||||||
Integration and transaction costs | $100,000 |
Business_Combination_Purchase_
Business Combination Purchase Price Allocation (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Assets: | ||
Goodwill | $1,375,000 | |
First Aid Only, Inc. | ||
Assets: | ||
Accounts Receivable | 2,544,000 | |
Inventory | 1,704,000 | |
Equipment | 463,000 | |
Prepaid expenses | 110,000 | |
Customer Relationships | 5,430,000 | |
Trade Name | 3,410,000 | |
Covenant Not-to-Compete | 70,000 | |
Goodwill | 1,340,000 | |
Total assets | 15,071,000 | |
Liabilities: | ||
Accounts Payable | 1,019,000 | |
Accrued Expense | 252,000 | |
Total liabilities | $1,271,000 |
Business_Combination_Proforma_
Business Combination - Proforma Results of Operations (Details) (First Aid Only, Inc., USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
First Aid Only, Inc. | ||
Unaudited proforma net sales during period | $114,300,000 | $107,200,000 |
Unaudited proforma net income during period | $4,900,000 | $4,500,000 |