Acme United (ACU) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 01, 2018
Document And Entity Information
Entity Registrant Name	ACME UNITED CORP
Entity Central Index Key	2,098
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
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	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,374,061
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,065	$ 9,338
Accounts receivable, less allowance	24,486	26,012
Inventories, net	41,900	40,087
Prepaid expenses and other current assets	2,766	2,381
Total current assets	70,217	77,818
Property, plant and equipment:
Land	1,432	1,429
Buildings	10,038	9,561
Machinery and equipment	16,696	16,243
Total property, plant and equipment	28,166	27,233
Less accumulated depreciation	14,008	13,505
Net property, plant and equipment	14,158	13,728
Goodwill	4,696	4,696
Intangible assets, less accumulated amortization	17,576	17,882
Other assets	599	606
Total assets	107,246	114,730
Current liabilities:
Accounts payable	7,483	11,151
Other accrued liabilities	3,670	5,633
Total current liabilities	11,153	16,784
Long-term debt	41,100	43,450
Mortgage payable, net of current portion	3,644	3,711
Other non-current liabilities	857	847
Total liabilities	56,754	64,792
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Common stock, par value $2.50: authorized 8,000,000 shares; issued - 4,838,071 shares in 2018 and 2017 including treasury stock	12,094	12,094
Additional paid-in capital	9,024	8,881
Retained earnings	44,860	44,467
Treasury stock, at cost - 1,464,010 shares in 2018 and 2017	(13,870)	(13,870)
Accumulated other comprehensive loss:
Minimum pension liability	(577)	(577)
Translation adjustment	(1,039)	(1,057)
Total accumulated other comprehensive loss	(1,616)	(1,634)
Total stockholders' equity	50,492	49,938
Total liabilities and stockholders' equity	$ 107,246	$ 114,730

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
STOCKHOLDERS' EQUITY
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	4,838,071	4,838,071
Treasury stock, shares	1,464,010	1,464,010

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements Of Operations
Net sales	$ 31,709	$ 27,745
Cost of goods sold	19,585	17,181
Gross profit	12,124	10,564
Selling, general and administrative expenses	10,759	9,350
Operating income	1,365	1,214
Non-operating items:
Interest expense	412	269
Interest income	(7)	(6)
Interest expense, net	405	263
Other (income) expense, net	(13)	13
Total other expense, net	392	276
Income before income tax expense	973	938
Income tax expense	209	279
Net income	$ 764	$ 659
Basic earnings per share	$ .23	$ .20
Diluted earnings per share	$ .21	$ .18
Weighted average number of common shares outstanding - denominator used for basic per share computations	3,374,000	3,329,000
Weighted average number of dilutive stock options outstanding	288,000	401,000
Denominator used for diluted per share computations	3,662,000	3,730,000
Dividends declared per share	$ .11	$ .10

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Consolidated Statements Of Comprehensive Income
Net income	$ 764	$ 659
Other comprehensive income:
Foreign currency translation adjustment	18	85
Comprehensive income	$ 782	$ 744

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 764	$ 659
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation	475	396
Amortization	306	278
Stock compensation expense	168	115
Changes in operating assets and liabilities:
Accounts receivable, net	1,501	(574)
Inventories, net	(1,774)	502
Prepaid expenses and other assets	(623)	(566)
Accounts payable	(3,645)	(1,591)
Other accrued liabilities	(1,747)	(2,271)
Total adjustments	(5,339)	(3,711)
Net cash used in operating activities	(4,575)	(3,052)
Cash flows from investing activities:
Purchase of property, plant and equipment	(897)	(504)
Acquisition of business		(7,233)
Net cash used in investing activities	(897)	(7,737)
Cash flows from financing activities:
Net (repayments) borrowings of long-term debt	(2,350)	11,436
Cash settlement of stock options	(45)	(231)
Repayments on mortgage	(67)
Proceeds from issuance of common stock		186
Distributions to shareholders	(371)	(332)
Net cash (used in) provided by financing activities	(2,833)	11,059
Effect of exchange rate changes on cash and cash equivalents	32	(6)
Net (decrease) increase in cash and cash equivalents	(8,273)	264
Cash and cash equivalents at beginning of period	9,338	5,911
Cash and cash equivalents at end of period	1,065	6,175
Supplemental cash flow information:
Cash paid for income taxes	297	59
Cash paid for interest	$ 404	$ 236

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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, 2017 for such disclosures. The condensed consolidated balance sheet as of December 31, 2017 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 2017 Annual Report on Form 10-K. The Company has evaluated events and transactions subsequent to March 31, 2018 and through the date these condensed consolidated financial statements were included in this Form 10-Q and filed with the SEC. Recently Issued and Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance that will change the requirements for accounting for leases. The principal change under the new accounting guidance is that lessees under leases classified as operating leases will recognize a right-of-use asset and a lease liability. Current lease accounting does not require lessees to recognize assets and liabilities arising under operating leases on the balance sheet. Under the new guidance, lessees (including lessees under leases classified as finance leases and operating leases) will recognize a right-to-use asset and a lease liability on the balance sheet, initially measured as the present value of lease payments under the lease. Expense recognition and cash flow presentation guidance will be based upon whether the lease is classified as an operating lease or a finance lease (the classification criteria for distinguishing between finance leases and operating leases is substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current guidance). The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating this guidance to determine its impact on the Company’s consolidated financial position, results of operations or cash flows of the Company. In August 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-14, which the effective date of 2014-09, Revenue from Contracts Customers 606), by one The Company has adopted the new guidance as of January 1, 2018 using the modified retrospective method. material effect on the condensed consolidated financial position, results of operations or cash flows of the Company beyond the increase in the level of disclosures In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . In February 2018, the FASB issued ASU No. 2018-02 Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2018
Contingencies
Contingencies	2. Contingencies 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.

Pension

Pension	3 Months Ended
	Mar. 31, 2018
Retirement Benefits [Abstract]
Pension	3. Pension In December 1995, the Company’s Board of Directors approved an amendment to the Company’s United States pension plan that terminated all future benefit accruals as of February 1, 1996, without terminating the pension plan. In accordance with the adoption of ASU 2017-07, the Company has retrospectively revised the presentation of the non-service components of periodic pension cost of $22,000 to “Interest and other expense, net” in the condensed consolidated statement of operations for the three months ended March 31, 2017, while service cost remains in “Selling, general and administrative expense.” Components of net periodic benefit cost are as follows (in thousands): Three Months Ended March 31, 2018 2017 Service cost $ 9 $ 9 Interest cost $ 10 $ 14 Expected return on plan assets (17 ) (20 ) Amortization of prior service costs — 2 Amortization of actuarial loss 22 26 Total non-service cost $ 15 $ 22 Net periodic pension cost $ 24 $ 31 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 2018, the Company is not required to contribute to the plan. As of March 31, 2018, the Company had not made any contributions to the plan in 2018.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	4. Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers Nature of Goods and Services The Company recognizes revenue from the sales of a broad line of products that are grouped into two main categories: (i) cutting and sharpening; and (ii) first aid and safety. The cutting and sharpening category includes scissors, knives, paper trimmers, pencil sharpeners and other sharpening tools. The first aid and safety category includes first aid kits and refills, over-the-counter medications and a variety of safety products. Revenue recognition is evaluated through the following five steps: (i) identification of the contract or contracts with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue is generated by the sale of the Company’s products to its customers. Sales contracts (purchase orders) generally have a single performance obligation that is satisfied at a point in time, with shipment or delivery, depending on the terms of the underlying contract. Revenue is measured based on the consideration specified in the contract. The amount of consideration we receive and revenue we recognize is impacted by incentives ("Customer Rebates"), including sales rebates, which are generally tied to sales volume levels, in-store promotional allowances, shared media and customer catalog allowances and other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowance for returns and discounts. We generally recognize Customer Rebate Costs as a deduction to gross sales at the time that the associated revenue is recognized. Significant Payment Terms Payment terms for each customer are dependent on the agreed upon contractual repayment terms. Typically between 30 and 90 days but, they vary dependent on the size of the customer and its risk profile to the Company. Some customers receive discounts for early payment. Product Returns The Company accepts product returns in the normal course of business. The Company estimates reserves for returns and the related refunds to customers based on historical experience. Reserves for returned merchandise are included as a component of “Accounts Receivables” in the condensed consolidated balance sheets. Practical Expedient Usage and Accounting Policy Elections The Company has determined to utilize the modified retrospective approach which requires cumulative effect adjustment to the opening balance of retained earnings in the current year. This opening adjustment is determined based on the impact of the new revenue standard’s application on contracts that were not completed as of January 1, 2018, the date of initial application of the standard. This election did not have an impact on the Company’s condensed consolidated financial statements. For the Company’s contracts that have an original duration of one year or less, the Company uses the practical expedient in ASC 606-10-32-18 applicable to such contracts and does not consider the time value of money in relation to significant financing components. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements. Per ASC 606-10-25-18B, the Company has elected to account for shipping and handling activities that occur after the customer has obtained control as a fulfillment activity instead of a performance obligation. Furthermore, shipping and handling activities performed before transfer of control of the product also do not constitute a separate and distinct performance obligation. The Company has elected to exclude from the transaction price those amounts which relate to sales and other taxes that are assessed by governmental authorities and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer. Applying the practical expedient in ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred. These costs are included in “Selling, general and administrative expenses.” The effect of applying this practical expedient did not have an impact on the Company’s condensed consolidated financial statements. Disaggregation of Revenues The following table represents external net sales disaggregated by product category: US Canada Europe Total Cutting & Sharpening $ 12,496 $ 1,552 $ 2,380 $ 16,428 First Aid & Safety $ 15,281 $ 15,281 Total Net Sales $ 27,777 $ 1,552 $ 2,380 $ 31,709

Debt and Shareholders' Equity

Debt and Shareholders' Equity	3 Months Ended
	Mar. 31, 2018
Debt And Shareholders Equity
Debt and Stockholders Equity	5. Debt and Shareholders’ Equity Under its revolving loan agreement with HSBC Bank, N.A., the Company can borrow up to $50 million at an interest rate of LIBOR plus 2.0%. All principal amounts outstanding under the agreement are required to be repaid in a single amount on May 6, 2019, the date the facility expires; interest is payable monthly. 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. Funds borrowed under the facility may be used for working capital, general operating expenses, share repurchases, acquisitions 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 March 31, 2018 and December 31, 2017, the Company had outstanding borrowings of $41,100,000 and $43,450,000, respectively, under the Company’s revolving loan agreement with HSBC. The decrease in debt outstanding was primarily due to the Company repatriating approximately $5.8 million from its foreign subsidiaries, a portion of which was used to pay down the debt under the Company’s credit facility. On October 26, 2017, the Company exercised its option to purchase its First Aid Only manufacturing and distribution center in Vancouver, WA for $4.0 million. The property consists of 53,000 square feet of office, manufacturing and warehouse space on 2.86 acres. The purchase was financed by a variable rate mortgage with HSBC Bank, N.A. at an interest rate of LIBOR plus 2.5%. Commencing on December 1, 2017, principal payments of $22,222 are due monthly, with all amounts outstanding due on maturity on October 31, 2024. During the three months ended March 31, 2018, the Company paid approximately $44,610 to optionees who had elected a net cash settlement of their respective options.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Information
Segment Information	6. 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 centers in North Carolina, Washington and Massachusetts. 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 7% of the Company’s total net sales for the three months ended March 31, 2018 and for the comparable period in 2017. 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. The following table sets forth certain financial data by segment for the three months ended March 31, 2018 and 2017: Financial data by segment: (in thousands) Three months ended Sales to external customers: 2018 2017 United States $ 27,777 $ 24,475 Canada 1,552 1,391 Europe 2,380 1,879 Consolidated $ 31,709 $ 27,745 Operating income: United States $ 1,116 $ 1,130 Canada 139 32 Europe 110 52 Consolidated $ 1,365 $ 1,214 Interest expense, net 405 263 Other (income) expense, net (13 ) 13 Consolidated income before income taxes $ 973 $ 938 Assets by segment: March 31 December 31 2018 2017 United States $ 97,372 $ 104,431 Canada 4,323 4,926 Europe 5,551 5,373 Consolidated $ 107,246 $ 114,730

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	7. 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 $168,351 and $115,000 for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, there was a total of $1,751,650 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share–based payments granted to the Company’s employees. As of that date, the remaining unamortized expense is expected to be recognized over a weighted average period of approximately three years.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements
Fair Value Measurements	8. Fair Value Measurements The carrying value of the Company’s bank debt is a reasonable estimate of fair value because of the nature of its payment terms and maturity.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Business Combinations	9. Business Combinations On February 1, 2017, the Company purchased the assets of Spill Magic, Inc., located in Santa Ana, CA and Smyrna, TN for $7.2 million in cash. The Spill Magic products are leaders in absorbents that encapsulate spills into dry powders that can be safely disposed. Many large retail chains use the Spill Magic products to remove liquids from broken glass containers, oil and gas spills, bodily fluids and solvents. The purchase price was allocated to assets acquired as follows (in thousands): Assets: Accounts receivable $ 684 Inventory 453 Equipment 296 Intangible assets 5,066 Goodwill 748 Total assets $ 7,247 Assuming Spill Magic assets were acquired on January 1, 2017, unaudited pro forma combined net sales for the three months ended March 31, 2017 for the Company would have been approximately $28.1 million. Unaudited pro forma combined net income for the three months ended March 31, 2017 for the Company would have been approximately $0.7 million. Net sales for the three months ended March 31, 2017 attributable to Spill Magic products were approximately $1.2 million. Net income for the three months ended March 31, 2017 attributable to Spill Magic products was approximately $0.1 million.

Pension (Tables)

Pension (Tables)	3 Months Ended
	Mar. 31, 2018
Pension Tables
Components of Net Benefit Cost	Three Months Ended March 31, 2018 2017 Service cost $ 9 $ 9 Interest cost $ 10 $ 14 Expected return on plan assets (17 ) (20 ) Amortization of prior service costs — 2 Amortization of actuarial loss 22 26 Total non-service cost $ 15 $ 22 Net periodic pension cost $ 24 $ 31

Revenue from Contracts with C17

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenues	US Canada Europe Total Cutting & Sharpening $ 12,496 $ 1,552 $ 2,380 $ 16,428 First Aid & Safety $ 15,281 $ 15,281 Total Net Sales $ 27,777 $ 1,552 $ 2,380 $ 31,709

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Information Tables
Financial Data By Segment Table	Financial data by segment: (in thousands) Three months ended Sales to external customers: 2018 2017 United States $ 27,777 $ 24,475 Canada 1,552 1,391 Europe 2,380 1,879 Consolidated $ 31,709 $ 27,745 Operating income: United States $ 1,116 $ 1,130 Canada 139 32 Europe 110 52 Consolidated $ 1,365 $ 1,214 Interest expense, net 405 263 Other (income) expense, net (13 ) 13 Consolidated income before income taxes $ 973 $ 938
Assets By Segment	Assets by segment: March 31 December 31 2018 2017 United States $ 97,372 $ 104,431 Canada 4,323 4,926 Europe 5,551 5,373 Consolidated $ 107,246 $ 114,730

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2018
Spill Magic
Purchase Price Allocation	Assets: Accounts receivable $ 684 Inventory 453 Equipment 296 Intangible assets 5,066 Goodwill 748 Total assets $ 7,247

Pension (Details Narrative)

Pension (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest and other expense, net	$ 405	$ 263
Revised presentation of non-service components of periodic pension cost
Interest and other expense, net		$ 22

Pension - Periodic Benefit Cost

Pension - Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Components of net periodic benefit cost:
Service cost	$ 9	$ 9
Interest cost	10	14
Expected return on plan assets	(17)	(20)
Amortization of prior service costs		2
Amortization of actuarial loss	22	26
Total non-service cost	15	22
Net periodic pension cost	$ 24	$ 31

Revenue from Contracts with C22

Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Total Net Sales	$ 31,709	$ 27,745
United States
Total Net Sales	27,777	24,475
Canada
Total Net Sales	1,552	1,391
Europe
Total Net Sales	2,380	$ 1,879
Cutting and Sharpening
Total Net Sales	16,428
Cutting and Sharpening | United States
Total Net Sales	12,496
Cutting and Sharpening | Canada
Total Net Sales	1,552
Cutting and Sharpening | Europe
Total Net Sales	2,380
First Aid and Safety
Total Net Sales	15,281
First Aid and Safety | United States
Total Net Sales	$ 15,281

Debt and Shareholders' Equity (

Debt and Shareholders' Equity (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Outstanding borrowings under revolving loan agreement		$ 41,100		$ 43,450
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
Repatriated earnings used to repay revolving loan agreement		$ 5,800
Cash paid to settle employee stock options		$ 45	$ 231
First Aid Only Distribution Center
Interest rate of LIBOR plus percentage	2.50%
Purchase price	$ 4,000,000
Variable rate mortgage interest rate	Interest rate of LIBOR plus 2.5%
Monthly payment	$ 22,222
Mortgage maturity date	Oct. 31, 2024

Segment Information - Financial

Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Sales to external customers	$ 31,709	$ 27,745
Operating income	1,365	1,214
Interest expense, net	405	263
Other (income) expense, net	(13)	13
Consolidated income before income taxes	973	938
Assets	107,246		$ 114,730
United States
Sales to external customers	27,777	24,475
Operating income	1,116	1,130
Assets	97,372		104,431
Canada
Sales to external customers	1,552	1,391
Operating income	139	32
Assets	4,323		4,926
Europe
Sales to external customers	2,380	1,879
Operating income	110	$ 52
Assets	$ 5,551		$ 5,373

Segment Information (Details Na

Segment Information (Details Narrative)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Information Details Narrative
Direct import sales to total net sales ratio	7.00%	7.00%

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock Based Compensation Details Narrative
Share-based compensation expense	$ 168	$ 115
Unrecognized compensation cost	$ 1,752
Unrecognized compensation cost recognition period	3 years

Business Combination (Details N

Business Combination (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Mar. 31, 2018	Mar. 31, 2017
Net sales		$ 31,709	$ 27,745
Net income		$ 1,365	1,214
Spill Magic
Purchase price	$ 7,200
Net sales			1,200
Net income			100
Unaudited proforma net sales during period			28,100
Unaudited proforma net income during period			$ 700

Business Combination Purchase P

Business Combination Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Feb. 28, 2017
Assets:
Goodwill	$ 4,696	$ 4,696
Spill Magic
Assets:
Accounts receivable			$ 684
Inventory			453
Equipment			296
Intangible assets			5,066
Goodwill			748
Total assets			$ 7,247