Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 07, 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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity an Emerging Growth Company? | false | |
Is Entity a Small Business? | true | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 3,369,061 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 4,021 | $ 9,338 |
Accounts receivable, less allowance | 30,869 | 26,012 |
Inventories, net | 41,274 | 40,087 |
Prepaid expenses and other current assets | 2,270 | 2,381 |
Total current assets | 78,434 | 77,818 |
Property, plant and equipment: | ||
Land | 1,424 | 1,429 |
Buildings | 10,097 | 9,561 |
Machinery and equipment | 17,846 | 16,243 |
Total property, plant and equipment | 29,367 | 27,233 |
Less accumulated depreciation | 14,879 | 13,505 |
Net property, plant and equipment | 14,488 | 13,728 |
Goodwill | 4,696 | 4,696 |
Intangible assets, less accumulated amortization | 16,959 | 17,882 |
Other assets | 606 | 606 |
Total assets | 115,183 | 114,730 |
Current liabilities: | ||
Accounts payable | 6,654 | 11,151 |
Other accrued liabilities | 4,684 | 5,633 |
Total current liabilities | 11,338 | 16,784 |
Long-term debt | 47,028 | 43,450 |
Mortgage payable, net of current portion | 3,511 | 3,711 |
Other non-current liabilities | 815 | 847 |
Total liabilities | 62,692 | 64,792 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $2.50: authorized 8,000,000 shares; issued and outstanding - 4,838,071 shares in 2018 and 2017, including treasury stock | 12,094 | 12,094 |
Additional paid-in capital | 8,768 | 8,881 |
Retained earnings | 47,360 | 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 | (1,284) | (1,057) |
Total accumulated other comprehensive loss | (1,861) | (1,634) |
Total stockholders' equity | 52,491 | 49,938 |
Total liabilities and stockholders' equity | $ 115,183 | $ 114,730 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 |
Common stock, shares outstanding | 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidated Statements Of Operations | ||||
Net sales | $ 34,731 | $ 33,785 | $ 106,191 | $ 100,380 |
Cost of goods sold | 22,281 | 21,559 | 66,905 | 63,107 |
Gross profit | 12,450 | 12,226 | 39,286 | 37,273 |
Selling, general and administrative expenses | 11,077 | 10,256 | 32,923 | 30,178 |
Operating income | 1,373 | 1,970 | 6,363 | 7,095 |
Non-operating items: | ||||
Interest expense, net | 496 | 365 | 1,346 | 949 |
Other expense, net | 23 | 37 | 84 | 21 |
Total other expense, net | 519 | 402 | 1,430 | 970 |
Income before income tax expense | 854 | 1,568 | 4,933 | 6,125 |
Income tax expense | 47 | 366 | 926 | 1,418 |
Net income | $ 807 | $ 1,202 | $ 4,007 | $ 4,707 |
Basic earnings per share | $ .24 | $ .36 | $ 1.19 | $ 1.4 |
Diluted earnings per share | $ .23 | $ .32 | $ 1.12 | $ 1.25 |
Weighted average number of common shares outstanding - denominator used for basic per share computations | 3,374,000 | 3,373,000 | 3,374,000 | 3,351,000 |
Weighted average number of dilutive stock options outstanding | 177,000 | 421,000 | 200,000 | 414,000 |
Denominator used for diluted per share computations | 3,551,000 | 3,794,000 | 3,574,000 | 3,765,000 |
Dividends declared per share | $ .11 | $ .11 | $ .33 | $ .32 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidated Statements Of Comprehensive Income | ||||
Net income | $ 807 | $ 1,202 | $ 4,007 | $ 4,707 |
Other comprehensive income (loss): | ||||
Foreign currency translation | 8 | 234 | (227) | 528 |
Comprehensive income | $ 815 | $ 1,436 | $ 3,780 | $ 5,235 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 4,007 | $ 4,707 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 1,480 | 1,253 |
Amortization | 923 | 874 |
Stock compensation expense | 641 | 552 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,903) | (10,866) |
Inventories | (1,357) | 1,382 |
Prepaid expenses and other assets | (1) | (147) |
Accounts payable | (4,404) | 1,079 |
Other accrued liabilities | (882) | (30) |
Total adjustments | (8,503) | (5,903) |
Net cash used in operating activities | (4,496) | (1,196) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (2,252) | (2,401) |
Acquisition of business | (7,233) | |
Net cash used in investing activities | (2,252) | (9,634) |
Cash flows from financing activities: | ||
Net borrowings of long-term debt | 3,578 | 13,033 |
Cash settlement of stock options | (754) | (760) |
Proceeds from issuance of common stock | 649 | |
Distributions to stockholders | (1,114) | (1,037) |
Repayment on mortgage payable | (200) | |
Net cash provided by financing activities | 1,510 | 11,885 |
Effect of exchange rate changes on cash and cash equivalents | (79) | 55 |
Net decrease in cash and cash equivalents | (5,317) | 1,110 |
Cash and cash equivalents at beginning of period | 9,338 | 5,911 |
Cash and cash equivalents at end of period | 4,021 | 7,021 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 502 | 728 |
Cash paid for interest | $ 1,316 | $ 908 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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 September 30, 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 August 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-14, which defers the effective date of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the 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. The new standard requires a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. The Company will adopt this standard on January 1, 2019 using the prospective adoption approach. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements and related disclosures. At this time, the Company does not expect the adoption of ASU 2016-02 to have a material impact on its Consolidated Statements of Income. The Company is in the process of analyzing existing leases, practical expedients, and deploying its implementation strategy. 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. In June 2018, the FASB issued ASU 2018-07 Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosures Requirements for Defined Benefit Plans Income Statement - Reporting Comprehensive Income (Topic 220) |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Components of net periodic benefit cost are as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Service cost $ 7 $ 9 $ 25 $ 27 Interest cost $ 10 $ 8 $ 30 $ 36 Expected return on plan assets (17 ) (12 ) (51 ) (52 ) Amortization of prior service costs — (4 ) — — Amortization of actuarial loss 21 29 65 81 Total non-service cost $ 14 $ 21 $ 44 $ 65 Net periodic pension cost $ 21 $ 30 $ 69 $ 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 with respect to each year. As of September, 30, 2018, the Company had contributed $25,000 to the plan with respect to the year ending December 31, 2018; the amount contributed satisfied the Company’s funding obligations for that year. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 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 accordingly, 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: For the three months ended September 30, 2018 (amounts in 000's) US Canada Europe Total Cutting, Sharpening and Other $ 16,376 $ 1,691 $ 2,127 $ 20,194 First Aid and Safety 14,537 — — 14,537 Total Net Sales $ 30,913 $ 1,691 $ 2,127 $ 34,731 For the nine months ended September 30, 2018 (amounts in 000's) US Canada Europe Total Cutting, Sharpening and Other $ 48,680 $ 5,715 $ 7,008 $ 61,403 First Aid and Safety 44,788 — — 44,788 Total Net Sales $ 93,468 $ 5,715 $ 7,008 $ 106,191 |
Debt and Shareholders' Equity
Debt and Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Debt And Shareholders Equity | |
Debt and Shareholders Equity | 5. Debt and Shareholders’ Equity On May 24, 2018, the Company amended its revolving loan agreement with HSBC Bank, N.A. The amendment lowered the interest rate to LIBOR plus 1.75%; interest is payable monthly. In addition, the expiration date of the credit facility was extended to May 24, 2023. The prior interest rate was LIBOR plus 2%. The amount available for borrowing remains unchanged at $50 million. 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. The facility is intended to provide liquidity for growth, share repurchases, dividends, acquisitions, and other business activities. 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 zero, measured as of the end of each fiscal year. At September 30, 2018, the Company was in compliance with the covenants then in effect under the loan agreement. As of September 30, 2018 and December 31, 2017, the Company had outstanding borrowings of $47,028,000 and $43,450,000, respectively, under the Company’s revolving loan agreement with HSBC. 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 and interest are due monthly, with all amounts outstanding due on maturity on October 31, 2024. During the three and nine months ended September 30, 2018, the Company paid approximately $511,200 and $753,635, respectively, to optionees who had elected a net cash settlement of their respective options, which elections were subject to the approval of the Company. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 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 Massachusetts, Tennessee and California. 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 12% and 11% of the Company’s total net sales for the three and nine months ended September 30, 2018 compared to 10% and 12% for the comparable periods 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 and nine months ended September 30, 2018 and 2017: Financial data by segment: (in thousands) Three months ended Nine months ended Sales to external customers: 2018 2017 2018 2017 United States $ 30,913 $ 30,038 $ 93,468 $ 88,653 Canada 1,691 1,661 5,715 5,556 Europe 2,127 2,086 7,008 6,171 Consolidated $ 34,731 $ 33,785 $ 106,191 $ 100,380 Operating income (loss): United States $ 1,182 $ 1,730 $ 5,209 $ 6,149 Canada 193 209 876 744 Europe (2 ) 31 278 202 Consolidated 1,373 1,970 6,363 7,095 Interest expense, net 496 365 1,346 949 Other expense, net 23 37 84 21 Consolidated income before income taxes $ 854 $ 1,568 $ 4,933 $ 6,125 Assets by segment: ( in thousands ) September 30, December 31, 2018 2017 United States $ 105,071 $ 104,431 Canada 4,367 4,926 Europe 5,745 5,373 Consolidated $ 115,183 $ 114,730 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 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 $334,238 and $315,000 for the three months ended September 30, 2018 and 2017, respectively. Share-based compensation expenses were $641,418 and $551,717 for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018, there was a total of $2,337,200 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 | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 8. 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 Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 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. Customers, including 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 nine months ended September 30, 2017 for the Company would have been approximately $100.8 million. Unaudited pro forma combined net income for the nine months ended September 30, 2017 for the Company would have been approximately $4.8 million. Net sales for the three and nine months ended September 30, 2017 attributable to Spill Magic products were approximately $1.9 million and $4.9 million, respectively. Net income for the three and nine months ended September 30, 2017 attributable to Spill Magic products was approximately $0.2 million and $0.5 million, respectively. |
Pension (Tables)
Pension (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Pension And Profit Sharing Tables Abstract | |
Components of Net Benefit Cost | Three Months Ended Nine Months Ended 2018 2017 2018 2017 Service cost $ 7 $ 9 $ 25 $ 27 Interest cost $ 10 $ 8 $ 30 $ 36 Expected return on plan assets (17 ) (12 ) (51 ) (52 ) Amortization of prior service costs — (4 ) — — Amortization of actuarial loss 21 29 65 81 Total non-service cost $ 14 $ 21 $ 44 $ 65 Net periodic pension cost $ 21 $ 30 $ 69 $ 92 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | For the three months ended September 30, 2018 (amounts in 000's) US Canada Europe Total Cutting, Sharpening and Other $ 16,376 $ 1,691 $ 2,127 $ 20,194 First Aid and Safety 14,537 — — 14,537 Total Net Sales $ 30,913 $ 1,691 $ 2,127 $ 34,731 For the nine months ended September 30, 2018 (amounts in 000's) US Canada Europe Total Cutting, Sharpening and Other $ 48,680 $ 5,715 $ 7,008 $ 61,403 First Aid and Safety 44,788 — — 44,788 Total Net Sales $ 93,468 $ 5,715 $ 7,008 $ 106,191 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Information Tables Abstract | |
Financial Data By Segment Table | Financial data by segment: (in thousands) Three months ended Nine months ended Sales to external customers: 2018 2017 2018 2017 United States $ 30,913 $ 30,038 $ 93,468 $ 88,653 Canada 1,691 1,661 5,715 5,556 Europe 2,127 2,086 7,008 6,171 Consolidated $ 34,731 $ 33,785 $ 106,191 $ 100,380 Operating income (loss): United States $ 1,182 $ 1,730 $ 5,209 $ 6,149 Canada 193 209 876 744 Europe (2 ) 31 278 202 Consolidated 1,373 1,970 6,363 7,095 Interest expense, net 496 365 1,346 949 Other expense, net 23 37 84 21 Consolidated income before income taxes $ 854 $ 1,568 $ 4,933 $ 6,125 |
Assets By Segment | Assets by segment: ( in thousands ) September 30, December 31, 2018 2017 United States $ 105,071 $ 104,431 Canada 4,367 4,926 Europe 5,745 5,373 Consolidated $ 115,183 $ 114,730 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Required plan contributions during 2018 | $ 25 | ||||
Plan contributions during period | $ 25 | ||||
Other expense, net | $ 23 | $ 37 | $ 84 | $ 21 | |
Revised presentation of non-service components of periodic pension cost | |||||
Other expense, net | $ 21 | $ 65 |
Pension - Periodic Benefit Cost
Pension - Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 7 | $ 9 | $ 25 | $ 27 |
Interest cost | 10 | 8 | 30 | 36 |
Expected return on plan assets | (17) | (12) | (51) | (52) |
Amortization of prior service costs | (4) | |||
Amortization of actuarial loss | 21 | 29 | 65 | 81 |
Total non-service cost | 14 | 21 | 44 | 65 |
Net periodic pension cost | $ 21 | $ 30 | $ 69 | $ 92 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total Net Sales | $ 34,731 | $ 33,785 | $ 106,191 | $ 100,380 |
United States | ||||
Total Net Sales | 30,913 | 30,038 | 93,468 | 88,653 |
Canada | ||||
Total Net Sales | 1,691 | 1,661 | 5,715 | 5,556 |
Europe | ||||
Total Net Sales | 2,127 | $ 2,086 | 7,008 | $ 6,171 |
Cutting and Sharpening | ||||
Total Net Sales | 20,194 | 61,403 | ||
Cutting and Sharpening | United States | ||||
Total Net Sales | 16,376 | 48,680 | ||
Cutting and Sharpening | Canada | ||||
Total Net Sales | 1,691 | 5,715 | ||
Cutting and Sharpening | Europe | ||||
Total Net Sales | 2,127 | 7,008 | ||
First Aid and Safety | ||||
Total Net Sales | 14,537 | 44,788 | ||
First Aid and Safety | United States | ||||
Total Net Sales | $ 14,537 | $ 44,788 |
Debt and Shareholders' Equity (
Debt and Shareholders' Equity (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||
May 31, 2018 | Oct. 31, 2017 | Sep. 30, 2018 | Apr. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Outstanding borrowings under revolving loan agreement | $ 47,028 | $ 47,028 | $ 43,450 | ||||
Credit facility borrowing capacity | 50,000 | 50,000 | |||||
Cash paid to settle employee stock options | $ 511 | $ 754 | $ 760 | ||||
First Aid Only Distribution Center | |||||||
Interest rate of LIBOR plus percentage | 2.50% | ||||||
Purchase price | $ 4,000 | ||||||
Variable rate mortgage interest rate | Interest rate of LIBOR plus 2.5% | ||||||
Monthly payment | $ 22 | ||||||
Mortgage maturity date | Oct. 31, 2024 | ||||||
HSBC Bank | |||||||
Interest rate of LIBOR plus percentage | 1.75% | 2.00% | |||||
Credit facility interest rate | Interest rate of LIBOR plus 1.75% | Interest rate of LIBOR plus 2.0% | |||||
Facility fee per annum | 0.20% | ||||||
Credit facility expiration date | May 24, 2023 |
Segment Information - Financial
Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Sales to external customers | $ 34,731 | $ 33,785 | $ 106,191 | $ 100,380 | |
Operating income (loss) | 1,373 | 1,970 | 6,363 | 7,095 | |
Interest expense, net | 496 | 365 | 1,346 | 949 | |
Other expense, net | 23 | 37 | 84 | 21 | |
Consolidated income before income taxes | 854 | 1,568 | 4,933 | 6,125 | |
Assets | 115,183 | 115,183 | $ 114,730 | ||
United States | |||||
Sales to external customers | 30,913 | 30,038 | 93,468 | 88,653 | |
Operating income (loss) | 1,182 | 1,730 | 5,209 | 6,149 | |
Assets | 105,071 | 105,071 | 104,431 | ||
Canada | |||||
Sales to external customers | 1,691 | 1,661 | 5,715 | 5,556 | |
Operating income (loss) | 193 | 209 | 876 | 744 | |
Assets | 4,367 | 4,367 | 4,926 | ||
Europe | |||||
Sales to external customers | 2,127 | 2,086 | 7,008 | 6,171 | |
Operating income (loss) | (2) | $ 31 | 278 | $ 202 | |
Assets | $ 5,745 | $ 5,745 | $ 5,373 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Information Details Narrative Abstract | ||||
Direct import sales to total net sales ratio | 12.00% | 10.00% | 11.00% | 12.00% |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Based Compensation Details Narrative Abstract | ||||
Share-based compensation expense | $ 334 | $ 315 | $ 641 | $ 552 |
Unrecognized compensation cost | $ 2,337 | $ 2,337 | ||
Unrecognized compensation cost recognition period | 3 years |
Business Combination (Details N
Business Combination (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net sales | $ 34,731 | $ 33,785 | $ 106,191 | $ 100,380 | |
Net income | $ 1,373 | 1,970 | $ 6,363 | 7,095 | |
Spill Magic | |||||
Purchase price | $ 7,200 | ||||
Net sales | 1,900 | 4,900 | |||
Net income | $ 200 | 500 | |||
Unaudited proforma net sales during period | 100,800 | ||||
Unaudited proforma net income during period | $ 4,800 |
Business Combination Purchase P
Business Combination Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 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 |