Acme United (ACU) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Document And Entity Information
Entity Registrant Name	ACME UNITED CORP
Entity Central Index Key	2,098
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,324,955
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 6,272	$ 2,426
Accounts receivable, less allowance	25,909	19,565
Inventories:
Finished goods	33,037	29,803
Work in process	535	170
Raw materials and supplies	4,545	5,535
Total inventory	38,117	35,508
Prepaid expenses and other current assets	1,995	2,135
Total current assets	72,293	59,634
Property, plant and equipment:
Land	420	417
Buildings	5,691	5,418
Machinery and equipment	13,084	10,254
Total property, plant and equipment	19,195	16,089
Less accumulated depreciation	11,302	8,688
Net property, plant and equipment	7,893	7,401
Goodwill	1,406	1,406
Intangible assets, less amortization	16,768	11,951
Other assets	1,012	1,029
Total assets	99,372	81,421
Current liabilities:
Accounts payable	6,748	6,664
Other accrued liabilities	6,597	5,273
Total current liabilities	13,345	11,937
Long-term debt	39,706	25,913
Other	574	388
Total liabilities	53,625	38,238
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Common stock, par value $2.50: authorized 8,000,000 shares; issued - 4,788,965 shares in 2016 and 4,751,060 shares in 2015, including treasury stock	11,967	11,877
Additional paid-in capital	8,365	9,460
Retained earnings	41,648	37,340
Treasury stock, at cost - 1,464,010 shares in 2016 and 1,402,517 shares in 2015	(13,870)	(12,963)
Accumulated other comprehensive loss:
Minimum pension liability	(948)	(948)
Translation adjustment	(1,415)	(1,583)
Total accumulated other comprehensive loss	(2,363)	(2,531)
Total stockholders' equity	45,747	43,183
Total liabilities and stockholders' equity	$ 99,372	$ 81,421

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
STOCKHOLDERS' EQUITY
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	4,788,965	4,751,060
Treasury stock, shares	1,464,010	1,402,517

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidated Statements Of Operations
Net sales	$ 31,913	$ 29,903	$ 98,198	$ 86,694
Cost of goods sold	20,050	19,578	62,455	55,398
Gross profit	11,863	10,325	35,743	31,296
Selling, general and administrative expenses	9,723	8,334	28,008	24,603
Operating income	2,140	1,991	7,735	6,693
Non-operating items:
Interest expense, net	247	149	642	420
Other expense, net	65	92	38	149
Total other expense	312	241	680	569
Income before income taxes	1,828	1,750	7,055	6,124
Income tax expense	355	542	1,750	1,771
Net income	$ 1,473	$ 1,208	$ 5,305	$ 4,353
Basic earnings per share	$ .44	$ .36	$ 1.59	$ 1.31
Diluted earnings per share	$ .40	$ .33	$ 1.49	$ 1.18
Weighted average number of common shares outstanding - denominator used for basic per share computations	3,324,000	3,354,000	3,329,000	3,328,000
Weighted average number of dilutive stock options outstanding	317,000	345,000	233,000	370,000
Denominator used for diluted per share computations	3,641,000	3,699,000	3,562,000	3,698,000
Dividends declared per share	$ .10	$ .09	$ .30	$ .27

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidated Statements Of Comprehensive Income
Net income	$ 1,473	$ 1,208	$ 5,305	$ 4,353
Other comprehensive (loss) income -
Foreign currency translation	(26)	(129)	168	(591)
Comprehensive income	$ 1,447	$ 1,079	$ 5,473	$ 3,762

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities:
Net income	$ 5,305	$ 4,353
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation	1,097	970
Amortization	693	584
Stock compensation expense	306	442
Changes in operating assets and liabilities:
Accounts receivable	(5,145)	(4,205)
Inventories	(2,134)	(1,392)
Prepaid expenses and other current assets	219	(226)
Accounts payable	21	(371)
Other accrued liabilities	1,223	(844)
Total adjustments	(3,720)	(5,042)
Net cash provided (used) by operating activities	1,585	(689)
Investing Activities:
Purchase of property, plant, and equipment	(1,320)	(1,352)
Purchase of patents and trademarks	(29)	(52)
Acquisition of certain assets of Diamond Machining Technology	(6,971)
Proceeds from the sales of property, plant and equipment		5
Net cash used by investing activities	(8,320)	(1,399)
Financing Activities:
Borrowing of long-term debt	13,793	4,404
Cash settlement of stock options	(1,700)
Proceeds from issuance of common stock	390	1,139
Distributions to stockholders	(1,000)	(895)
Purchase of treasury stock	(907)	(162)
Net cash provided by financing activities	10,576	4,486
Effect of exchange rate changes on cash	5	(63)
Net change in cash and cash equivalents	3,846	2,335
Cash and cash equivalents at beginning of period	2,426	2,286
Cash and cash equivalents at end of period	$ 6,272	$ 4,621

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 — Basis of Presentation In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of a normal, recurring nature. However, the financial statements do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Company's Annual Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for such disclosures. The condensed consolidated balance sheet as of December 31, 2015 was derived from the audited consolidated balance sheet as of that date. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto, included in the Company’s 2015 Annual Report on Form 10-K. The Company has evaluated events and transactions subsequent to September 30, 2016 and through the date these condensed consolidated financial statements were included in this Form 10-Q and filed with the SEC. Recently Issued Accounting Guidance In March, 2016 the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) 2016-09, Compensation – Stock Compensation: Improvements to Employee Share Based Payment Accounting

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
Contingencies
Contingencies	Note 2 — Contingencies The Company is involved from time to time in disputes and other litigation in the ordinary course of business and may encounter other contingencies, which may include environmental and other matters. There are no pending material legal proceedings to which the registrant is a party, or, to the actual knowledge of the Company, contemplated by any governmental authority. In 2014, the Company sold its Fremont, NC distribution facility for $850,000 in cash. Under the terms of the sale agreement, the Company is responsible to remediate any environmental contamination on the property. 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 monitoring costs. Remediation work on the project has been completed. The monitoring period is expected to be completed by the end of 2020. The change in the accrual for environmental remediation for the nine months ended September 30, 2016 follows (in thousands): Balance at Payments Balance at Fremont, NC $ 80 $ (13 ) $ 67 Total $ 80 $ (13 ) $ 67

Pension

Pension	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Pension	Note 3 — Pension Components of net periodic benefit cost are as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Interest cost $ 15 $ 15 $ 44 $ 44 Service cost 6 6 19 19 Expected return on plan assets (23 ) (24 ) (69 ) (70 ) Amortization of prior service costs 2 2 7 7 Amortization of actuarial loss 28 36 84 92 $ 28 $ 35 $ 85 $ 92 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 2016, the Company is not required to contribute to the plan. As of September 30, 2016, the Company did not make any contributions to the plan in 2016.

Debt and Shareholders' Equity

Debt and Shareholders' Equity	9 Months Ended
	Sep. 30, 2016
Debt And Shareholders Equity
Debt and Stockholders Equity	Note 4 —Debt and Shareholders’ Equity On May 6, 2016, the Company amended its revolving credit loan agreement with HSBC Bank, N.A. The amended facility provides for borrowings of up to an aggregate of $50 million at an interest rate of LIBOR plus 2.0%. In addition, the Company must pay a facility fee, payable quarterly, in an amount equal to two tenths of one percent (.20%) per annum of the average daily unused portion of the revolving credit line. All principal amounts outstanding under the agreement are required to be repaid in a single amount on May 6, 2019, the date the agreement expires; interest is payable monthly. Funds borrowed under the agreement may be used for working capital, acquisitions, general operating expenses, share repurchases and certain other purposes. Under the revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified debt to net worth ratio and a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year. As of September 30, 2016 and December 31, 2015, the Company had outstanding borrowings of $39,706,009 and $25,912,652, respectively, under the Company’s revolving loan agreement with HSBC. During the three months ended September 30, 2016, the Company issued a total of 2,005 shares of common stock and received aggregate proceeds of $30,376 upon exercise of employee stock options. During the nine months ended September 30, 2016, the Company issued a total of 37,905 shares of common stock and received aggregate proceeds of approximately $420,376 upon exercise of employee stock options. During the three and nine months ended September 30, 2016, the Company paid approximately $700,000 and $1,700,000 respectively, to settle employee stock options. During the nine months ended September 30, 2016, the Company repurchased 61,493 shares of its Common Stock at an average price of $14.76. As of September 30, 2016, there were 41,229 shares that may be purchased under the repurchase program announced in 2010. The Company’s purchases during the nine months ended September 30, 2016 were effected pursuant to a Rule 10b5-1 plan.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Information
Segment Information	Note 5— Segment Information The Company reports financial information based on the organizational structure used by the Company’s chief operating decision makers for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, the Company’s chief operating decision makers review the financial results of both on a consolidated basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and safety products for school, office, home, hardware, sporting and industrial use. Domestic sales orders are filled primarily from the Company’s distribution center in North Carolina. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots. Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 15% and 19% of the Company’s total net sales for the three and nine months ended September 30, 2016 compared to 15% and 18% for the comparable periods in 2015. The chief operating decision maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Financial data by segment: (in thousands) Three months ended Nine months ended Sales to external customers: 2016 2015 2016 2015 United States $ 28,489 $ 26,160 $ 87,311 $ 75,943 Canada 1,585 1,669 5,623 5,726 Europe 1,839 2,074 5,264 5,025 Consolidated $ 31,913 $ 29,903 $ 98,198 $ 86,694 Operating income (loss): United States $ 1,974 $ 1,849 $ 7,165 $ 6,405 Canada 148 30 558 202 Europe 18 112 12 86 Consolidated $ 2,140 $ 1,991 $ 7,735 $ 6,693 Interest expense, net 247 149 642 420 Other expense, net 65 92 38 149 Consolidated income before income taxes $ 1,829 $ 1,750 $ 7,055 $ 6,124 Assets by segment: ( in thousands ) September 30, December 31, 2016 2015 United States $ 90,518 $ 73,688 Canada 4,559 3,709 Europe 4,295 4,024 Consolidated $ 99,372 $ 81,421

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	Note 6 – Stock Based Compensation The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period. Share-based compensation expenses were $122,001 and $138,710 for the three months ended September 30, 2016 and 2015, respectively. Share-based compensation expenses were $305,536 and $442,225 for the nine months ended September 30, 2016 and 2015, respectively. During the nine months ended September 30, 2016, the Company issued 163,000 options with a weighted average fair value of $4.08 per share. As of September 30, 2016, there was a total of $996,316 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share –based payments granted to the Company’s employees. The remaining unamortized expense is expected to be recognized over a weighted average period of approximately 2 years.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair Value Measurements	Note 7 – Fair Value Measurements The carrying value of the Company’s bank debt approximates fair value. Fair value was determined using a discounted cash flow analysis.

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combination	Note 8 – Business Combination On February 1, 2016, the Company acquired the assets of Vogel Capital, Inc., d/b/a Diamond Machining Technology (DMT) for $6.97 million in cash. DMT products are leaders in sharpening tools for knives, scissors, chisels, and other cutting tools. The DMT products use finely dispersed diamonds on the surfaces of sharpeners. The acquired assets include over 50 patents and trademarks. The purchase price was allocated to assets acquired and liabilities assumed as follows (in thousands): Assets: Accounts Receivable $ 1,145 Inventory 280 Equipment 262 Prepaid expenses 176 Intangible Assets 5,481 Total assets $ 7,344 Liabilities Accounts Payable $ 192 Accrued Expense 181 Total liabilities $ 373 Management’s assessment of the valuation of intangible assets is preliminary and finalization of the Company’s purchase price accounting assessment may result in changes to the valuation of the identified intangible assets. The Company will finalize the purchase price allocation as soon as practicable within the measurement period in accordance with Accounting Standards Codification Topic 805 “Business Combinations”. Net sales for the three months ended September 30, 2016 attributable to DMT products were approximately $1.3 million. Net income for the three months ended September 30, 2016 attributable to DMT products was approximately $200,000. Net sales for the nine months ended September 30, 2016 attributable to DMT products were approximately $3.6 million. Net income for the nine months ended September 30, 2016 attributable to DMT products was approximately $500,000. Assuming DMT was acquired on January 1, 2016, unaudited proforma combined net sales for the nine months ended September 30, 2016 for the Company would have been approximately $98.8 million. Unaudited proforma combined net income for the nine months ended September 30, 2016 for the Company would have been approximately $5.4 million.

Contingencies (Tables)

Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Contingencies Tables
Accrual for Environmental Remediation Table	Balance at Payments Balance at Fremont, NC $ 80 $ (13 ) $ 67 Total $ 80 $ (13 ) $ 67

Pension (Tables)

Pension (Tables)	9 Months Ended
	Sep. 30, 2016
Pension Tables
Components of Net Benefit Cost	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Interest cost $ 15 $ 15 $ 44 $ 44 Service cost 6 6 19 19 Expected return on plan assets (23 ) (24 ) (69 ) (70 ) Amortization of prior service costs 2 2 7 7 Amortization of actuarial loss 28 36 84 92 $ 28 $ 35 $ 85 $ 92

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Information Tables
Financial Data By Segment Table	Financial data by segment: (in thousands) Three months ended Nine months ended Sales to external customers: 2016 2015 2016 2015 United States $ 28,489 $ 26,160 $ 87,311 $ 75,943 Canada 1,585 1,669 5,623 5,726 Europe 1,839 2,074 5,264 5,025 Consolidated $ 31,913 $ 29,903 $ 98,198 $ 86,694 Operating income (loss): United States $ 1,974 $ 1,849 $ 7,165 $ 6,405 Canada 148 30 558 202 Europe 18 112 12 86 Consolidated $ 2,140 $ 1,991 $ 7,735 $ 6,693 Interest expense, net 247 149 642 420 Other expense, net 65 92 38 149 Consolidated income before income taxes $ 1,829 $ 1,750 $ 7,055 $ 6,124
Assets By Segment	Assets by segment: ( in thousands ) September 30, December 31, 2016 2015 United States $ 90,518 $ 73,688 Canada 4,559 3,709 Europe 4,295 4,024 Consolidated $ 99,372 $ 81,421

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combination Tables
Purchase Price Allocation	Assets: Accounts Receivable $ 1,145 Inventory 280 Equipment 262 Prepaid expenses 176 Intangible Assets 5,481 Total assets $ 7,344 Liabilities Accounts Payable $ 192 Accrued Expense 181 Total liabilities $ 373

Contingencies (Details Narrativ

Contingencies (Details Narrative) - Fremont, NC $ in Thousands	Apr. 07, 2014USD ($)
Proceeds from sale of assets	$ 850
Environmental remediation liability	$ 300

Contingencies - Accrual for Env

Contingencies - Accrual for Environmental Remediation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Environmental remediation accrual at December 31, 2015	$ 80
Payments	(13)
Environmental remediation accrual at September 30, 2016	67
Fremont, NC
Environmental remediation accrual at December 31, 2015	80
Payments	(13)
Environmental remediation accrual at September 30, 2016	$ 67

Pension - Periodic Benefit Cost

Pension - Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Components of net periodic benefit cost:
Interest cost	$ 15	$ 15	$ 44	$ 44
Service cost	6	6	19	19
Expected return on plan assets	(23)	(24)	(69)	(70)
Amortization of prior service costs	2	2	7	7
Amortization of actuarial loss	28	36	84	92
Net periodic benefit cost	$ 28	$ 35	$ 85	$ 92

Debt and Shareholders' Equity (

Debt and Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	May 31, 2016	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Debt And Shareholders Equity Details Narrative
Outstanding borrowings under revolving loan agreement		$ 39,706	$ 39,706	$ 25,913
Credit facility borrowing capacity	$ 50,000
Interest rate of LIBOR plus percentage	2.00%
Credit facility interest rate	Interest rate of LIBOR plus 2.0%
Facility fee per annum	0.20%
Credit facility expiration date	May 6, 2019
Common stock issued upon exercise of employee stock options (in shares)		2,005	37,905
Cash received upon exercise of employee stock options		$ 30	$ 420
Shares repurchased during period			61,493
Average repurchase price			$ 14.76
Shares that may be purchased under repurchase program		41,229	41,229
Cash paid to settle employee stock options		$ 700	$ 1,700

Segment Information - Financial

Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Sales to external customers	$ 31,913	$ 29,903	$ 98,198	$ 86,694
Operating income (loss)	2,140	1,991	7,735	6,693
Interest expense, net	247	149	642	420
Other expense, net	65	92	38	149
Consolidated income before income taxes	1,828	1,750	7,055	6,124
Assets	99,372		99,372		$ 81,421
United States
Sales to external customers	28,489	26,160	87,311	75,943
Operating income (loss)	1,974	1,849	7,165	6,405
Assets	90,518		90,518		73,688
Canada
Sales to external customers	1,585	1,669	5,623	5,726
Operating income (loss)	148	30	558	202
Assets	4,559		4,559		3,709
Europe
Sales to external customers	1,839	2,074	5,264	5,025
Operating income (loss)	18	$ 112	12	$ 86
Assets	$ 4,295		$ 4,295		$ 4,024

Segment Information (Details Na

Segment Information (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Information Details Narrative
Direct import sales to total net sales ratio	15.00%	15.00%	19.00%	18.00%

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock Based Compensation Details Narrative
Share-based compensation expense	$ 122	$ 139	$ 306	$ 442
Stock options granted during period (in shares)			163,000
Weighted average fair value of stock options granted during period			$ 4.08
Unrecognized compensation cost	$ 996		$ 996
Unrecognized compensation cost recognition period			2 years

Business Combination (Details N

Business Combination (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net sales		$ 31,913	$ 29,903	$ 98,198	$ 86,694
Net income		2,140	1,991	7,735	6,693
Unaudited proforma net sales during period			31,200	98,800	90,300
Unaudited proforma net income during period			$ 1,600	5,400	$ 5,600
Vogel Capital Inc. d/b/a Diamond Machining Technology
Purchase price	$ 6,970
Net sales		1,300		3,600
Net income		$ 200		$ 500

Business Combination Purchase P

Business Combination Purchase Price Allocation (Details) - Vogel Capital Inc. d/b/a Diamond Machining Technology $ in Thousands	Feb. 29, 2016USD ($)
Assets:
Accounts Receivable	$ 1,145
Inventory	280
Equipment	262
Prepaid expenses	176
Intangible Assets	5,481
Total assets	7,344
Liabilities:
Accounts Payable	192
Accrued Expense	181
Total liabilities	$ 373