Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 28, 2014 | Aug. 08, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CONTINENTAL MATERIALS CORP | ' |
Entity Central Index Key | '0000024104 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 1,650,167 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,017 | $924 |
Receivables, net | 24,544 | 22,600 |
Receivable for insured losses | 156 | 156 |
Inventories: | ' | ' |
Finished goods | 7,774 | 6,958 |
Work in process | 965 | 985 |
Raw materials and supplies | 8,854 | 8,269 |
Prepaid expenses | 1,674 | 1,357 |
Refundable income taxes | 334 | 812 |
Deferred income taxes | 225 | 1,173 |
Total current assets | 45,543 | 43,234 |
Property, plant and equipment, net | 19,059 | 19,009 |
Goodwill | 7,229 | 7,229 |
Amortizable intangible assets, net | 92 | 118 |
Prepaid royalties | 1,798 | 1,859 |
Other assets | 513 | 513 |
Deferred income taxes | 878 | ' |
Total assets | 75,112 | 71,962 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 15,576 | 12,879 |
Liability for unpaid claims covered by insurance | 156 | 156 |
Total current liabilities | 15,732 | 13,035 |
Revolving bank loan payable | 5,400 | 1,000 |
Long-term debt | ' | 3,408 |
Deferred income taxes | ' | 360 |
Other long-term liabilities | 2,268 | 2,095 |
SHAREHOLDERS' EQUITY | ' | ' |
Common shares, $0.25 par value; authorized 3,000,000 shares; issued 2,574,264 shares | 643 | 643 |
Capital in excess of par value | 1,827 | 1,815 |
Retained earnings | 64,961 | 65,529 |
Treasury shares, 927,986 and 936,097 at cost | -15,719 | -15,923 |
Total shareholders' equity | 51,712 | 52,064 |
Total liabilities and shareholders' equity | $75,112 | $71,962 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Common shares, par value (in dollars per share) | $0.25 | $0.25 |
Common shares, authorized shares | 3,000,000 | 3,000,000 |
Common shares, issued shares | 2,574,264 | 2,574,264 |
Treasury, shares | 924,097 | 936,097 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS | ' | ' | ' | ' |
Net sales | $37,367 | $32,857 | $64,191 | $59,070 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation, depletion and amortization) | 30,890 | 26,320 | 53,918 | 48,327 |
Depreciation, depletion and amortization | 743 | 844 | 1,481 | 1,659 |
Selling and administrative | 4,701 | 4,655 | 9,444 | 9,131 |
Williams EcoLogix project expenses | ' | 662 | ' | 710 |
Total costs and expenses | 36,333 | 32,483 | 64,842 | 59,829 |
Gain on disposition of property and equipment | 1 | -2 | 1 | -2 |
Operating loss | 1,034 | 374 | -651 | -759 |
Interest expense, net | -110 | -92 | -209 | -179 |
Other income, net | 5 | 5 | ' | 18 |
Income before income taxes | 929 | 287 | -860 | -920 |
Benefit from income taxes | 316 | 100 | -292 | -304 |
Net income | 613 | 187 | -568 | -616 |
Retained earnings, beginning of period | 64,348 | 65,585 | 65,529 | 66,388 |
Retained earnings, end of period | $64,961 | $65,772 | $64,961 | $65,772 |
Net income per basic and diluted share (in dollars per share) | $0.37 | $0.11 | ($0.34) | ($0.37) |
Average shares outstanding (in shares) | 1,650 | 1,646 | 1,647 | 1,643 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ' | ' |
Net cash used in operating activities | $605 | $1,777 |
Investing activities: | ' | ' |
Capital expenditures | -1,505 | -816 |
Net cash used in investing activities | -1,504 | -755 |
Cash proceeds from sale of property and equipment | 1 | 61 |
Financing activities: | ' | ' |
Borrowings against the revolving bank loan, net | 4,400 | ' |
Repayment of long term debt | -3,408 | -250 |
Payments to acquire treasury stock | ' | -125 |
Net cash provided by (used in) financing activities | 992 | -375 |
Net increase in cash and cash equivalents | 93 | 647 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 924 | 1,734 |
End of period | 1,017 | 2,381 |
Cash paid(received) during the three months for: | ' | ' |
Interest, net | 215 | 212 |
Income taxes refunded | ($481) | ($700) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 28, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
1.Basis of Presentation: | |
The unaudited interim condensed consolidated financial statements included herein are prepared pursuant to the Securities and Exchange Commission rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures normally accompanying the annual consolidated financial statements have been omitted. The condensed consolidated balance sheet of Continental Materials Corporation (the “Company”) as of December 28, 2013 has been derived from the audited consolidated balance sheet of the Company as of that date. The interim condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest annual report on Form 10-K. In the opinion of management, the condensed consolidated financial statements include all adjustments (none of which were other than normal recurring adjustments) necessary for a fair statement of the results for the interim periods. Certain reclassifications have been made to the 2013 consolidated financial statements to conform to the 2014 presentation. The reclassifications had no effect on the consolidated results of operations, the net increase in cash or the total assets, liabilities or shareholders’ equity of the Company. | |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 28, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
2.Income taxes are accounted for under the asset and liability method that requires deferred income taxes to reflect the future tax consequences attributable to differences between the tax and financial reporting bases of assets and liabilities. Deferred tax assets and liabilities recognized are based on the tax rates in effect in the year in which differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, based on available positive and negative evidence, it is “more likely than not” (greater than a 50% likelihood) that some or all of the net deferred tax assets will not be realized. | |
The Company has established a valuation reserve related to the carry-forward of all charitable contributions deductions arising from prior years and the portion of contributions in 2014 that the Company believes it will be unable to utilize prior to the expiration of their carry-forward periods. The Company also established a valuation reserve related to the carry-forward of the long-term capital loss related to the sale of the stock of Rocky Mountain Ready Mix Concrete, Inc. due to the uncertainty that the Company will be able to generate offsetable long-term capital gains prior to the expiration of the carry-forward period, December 31, 2014. For Federal purposes, net operating losses can be carried forward for a period of 20 years while alternative minimum tax credits can be carried forward indefinitely. For state purposes, net operating losses can be carried forward for periods ranging from 5 to 20 years for the states that the Company is required to file in. California Enterprise Zone credits can be carried forward indefinitely while Colorado credits can be carried forward for 7 years. | |
The Company’s income tax returns are subject to audit by the Internal Revenue Service (the “IRS”) and state tax authorities. The amounts recorded for income taxes reflect the Company’s tax positions based on research and interpretations of complex laws and regulations. The Company accrues liabilities related to uncertain tax positions taken or expected to be taken in its tax returns. The IRS has completed examinations for periods through 2009. Various state income tax returns also remain subject to examination. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 28, 2014 | |
FAIR VALUE MEASUREMENTS | ' |
FAIR VALUE MEASUREMENTS | ' |
3.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: | |
Level 1Quoted prices in active markets for identical assets or liabilities. | |
Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability including assumptions about risk. | |
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheet. | |
Cash and Cash Equivalents: The carrying amount approximates fair value and was valued as Level 1. | |
Revolving Bank Loan Payable: Fair value is estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model. The carrying amount of the Revolving Bank Loan Payable represents a reasonable estimate of the corresponding fair value as the Company’s debt is held at variable interest rates and was valued as Level 2. | |
Long-term Debt: Fair value was estimated based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model. The carrying amount of long-term debt represents a reasonable estimate of the corresponding fair value as the Company’s debt was held at variable interest rates and was valued as Level 2. | |
RECENTLY_ISSUED_ACCOUNTING_PRO
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 28, 2014 | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ' |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ' |
4.There are currently no significant prospective accounting pronouncements that are expected to have a material effect on the Company’s consolidated financial statements. | |
SEASONALITY_AND_CURRENT_ECONOM
SEASONALITY AND CURRENT ECONOMIC CONDITIONS | 6 Months Ended |
Jun. 28, 2014 | |
SEASONALITY AND CURRENT ECONOMIC CONDITIONS | ' |
SEASONALITY AND CURRENT ECONOMIC CONDITIONS | ' |
5.Operating results for the first six months of 2014 are not necessarily indicative of performance for the entire year due to the seasonality of most of our products. Historically, sales of the Evaporative Cooling segment are higher in the first and second quarters, sales of the Concrete, Aggregates and Construction Supplies (CACS) segment are higher in the second and third quarters and sales of the Heating and Cooling segment are higher in the third and fourth quarters. The sales of the Door segment are more evenly spread throughout the year. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 28, 2014 | |
EARNINGS PER SHARE | ' |
EARNINGS PER SHARE | ' |
6.There is no difference in the calculation of basic and diluted earnings per share (EPS) for the three-month or six-month periods ended June 28, 2014 and June 29, 2013 as the Company does not have any dilutive instruments. | |
INDUSTRY_SEGMENT_INFORMATION
INDUSTRY SEGMENT INFORMATION | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||||||||||
INDUSTRY SEGMENT INFORMATION | ' | ||||||||||||||||||||||||||||
INDUSTRY SEGMENT INFORMATION | ' | ||||||||||||||||||||||||||||
7.The Company operates primarily in two industry groups, Heating, Ventilation and Air Conditioning (HVAC) and Construction Products. The Company has identified two reportable segments within each of the industry groups: the Heating and Cooling segment and the Evaporative Cooling segment in the HVAC industry group and the CACS segment and the Door segment in the Construction Products industry group. | |||||||||||||||||||||||||||||
The Heating and Cooling segment produces and sells gas-fired wall furnaces, console heaters and fan coils from the Company’s wholly-owned subsidiary, Williams Furnace Co. (WFC) of Colton, California. The Evaporative Cooling segment produces and sells evaporative coolers from the Company’s wholly-owned subsidiary, Phoenix Manufacturing, Inc. (PMI) of Phoenix, Arizona. Sales of these two segments are nationwide, but are concentrated in the southwestern United States. Concrete, Aggregates and Construction Supplies are offered from numerous locations along the Southern Front Range of Colorado operated by the Company’s wholly-owned subsidiaries Castle Concrete Company and Transit Mix Concrete Co., of Colorado Springs and Transit Mix of Pueblo, Inc. of Pueblo, Colorado (the three companies collectively are referred to as “TMC”). The Door segment sells hollow metal doors, door frames and related hardware, wood doors, lavatory fixtures and electronic access and security systems from the Company’s wholly-owned subsidiary, McKinney Door and Hardware, Inc. (MDHI), which operates out of facilities in Pueblo and Colorado Springs, Colorado. Sales of these two segments are highly concentrated in the Southern Front Range of Colorado although door sales are also made throughout the United States. | |||||||||||||||||||||||||||||
In addition to the above reporting segments, an “Unallocated Corporate” classification is used to report the unallocated expenses of the corporate office which provides treasury, insurance and tax services as well as strategic business planning and general management services. Expenses related to the corporate information technology group are allocated to all locations, including the corporate office. An “Other” classification is used to report a real estate operation and the activity of Williams EcoLogix, Inc. (WEI). WEI is a wholly-owned subsidiary of Continental Materials Corporation which was set up in anticipation of distributing a product that was being developed by a third party. The expenses incurred were associated with the subsidiary’s sole employee and miscellaneous related expenses. Development of the product has ceased and the sole employee was terminated in February 2013. | |||||||||||||||||||||||||||||
The Company evaluates the performance of its segments and allocates resources to them based on a number of criteria including operating income, return on investment and other strategic objectives. Operating income is determined by deducting operating expenses from all revenues. In computing operating income, none of the following has been added or deducted: unallocated corporate expenses, interest, other income or loss or income taxes. | |||||||||||||||||||||||||||||
The following table presents information about reported segments for the six-month and three-month periods ended June 28, 2014 and June 29, 2013 along with the items necessary to reconcile the segment information to the totals reported in the financial statements (dollar amounts in thousands): | |||||||||||||||||||||||||||||
Construction Products | HVAC Products | ||||||||||||||||||||||||||||
Concrete, | Doors | Combined | Heating | Evaporative | Combined | Unallocated | Other | Total | |||||||||||||||||||||
Aggregates & | Construction | and | Cooling | HVAC | Corporate | ||||||||||||||||||||||||
Construction | Products | Cooling | Products | ||||||||||||||||||||||||||
Supplies | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Six Months ended June 28, 2014 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 27,341 | $ | 8,421 | $ | 35,762 | $ | 12,618 | $ | 15,804 | $ | 28,422 | $ | 7 | $ | — | $ | 64,191 | |||||||||||
Depreciation, depletion and amortization | 920 | 71 | 991 | 257 | 209 | 466 | 24 | — | 1,481 | ||||||||||||||||||||
Operating (loss) income | (1,358 | ) | 936 | (422 | ) | (399 | ) | 1,649 | 1,250 | (1,479 | ) | — | (651 | ) | |||||||||||||||
Segment assets | 35,727 | 7,320 | 43,047 | 16,095 | 13,415 | 29,510 | 2,421 | 134 | 75,112 | ||||||||||||||||||||
Capital expenditures (b) | 1,225 | 35 | 1,260 | 111 | 134 | 245 | — | — | 1,505 | ||||||||||||||||||||
Quarter ended June 28, 2014 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 17,023 | $ | 4,525 | $ | 21,548 | $ | 5,694 | $ | 10,121 | $ | 15,815 | $ | 4 | $ | — | $ | 37,367 | |||||||||||
Depreciation, depletion and amortization | 464 | 35 | 499 | 128 | 104 | 232 | 12 | — | 743 | ||||||||||||||||||||
Operating income (loss) | 225 | 541 | 766 | (369 | ) | 1,386 | 1,017 | (749 | ) | — | 1,034 | ||||||||||||||||||
Segment assets | 35,727 | 7,320 | 43,047 | 16,095 | 13,415 | 29,510 | 2,421 | 134 | 75,112 | ||||||||||||||||||||
Capital expenditures (b) | 602 | 1 | 603 | 55 | 40 | 95 | — | — | 698 | ||||||||||||||||||||
Construction Products | HVAC Products | ||||||||||||||||||||||||||||
Concrete, | Doors | Combined | Heating | Evaporative | Combined | Unallocated | Other | Total | |||||||||||||||||||||
Aggregates & | Construction | and | Cooling | HVAC | Corporate | ||||||||||||||||||||||||
Construction | Products | Cooling | Products | ||||||||||||||||||||||||||
Supplies | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Six Months ended June 29, 2013 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 19,594 | $ | 8,126 | $ | 27,720 | $ | 15,089 | $ | 16,226 | $ | 31,315 | $ | 6 | $ | 29 | $ | 59,070 | |||||||||||
Depreciation, depletion and amortization | 1,185 | 62 | 1,247 | 206 | 179 | 385 | 27 | — | 1,659 | ||||||||||||||||||||
Operating (loss) income | (2,122 | ) | 610 | (1,512 | ) | 1,214 | 1,843 | 3,057 | (1,530 | ) | (774 | ) | (759 | ) | |||||||||||||||
Segment assets (a) | 26,471 | 6,837 | 33,308 | 18,748 | 12,118 | 30,866 | 7,654 | 134 | 71,962 | ||||||||||||||||||||
Capital expenditures (b) | 147 | 39 | 186 | 384 | 240 | 624 | 6 | — | 816 | ||||||||||||||||||||
Quarter ended June 29, 2013 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 11,777 | $ | 4,401 | $ | 16,178 | $ | 5,530 | $ | 11,145 | $ | 16,675 | $ | 4 | $ | — | $ | 32,857 | |||||||||||
Depreciation, depletion and amortization | 607 | 31 | 638 | 103 | 89 | 192 | 14 | — | 844 | ||||||||||||||||||||
Operating (loss) income | (174 | ) | 494 | 320 | (80 | ) | 1,602 | 1,522 | (806 | ) | (662 | ) | 374 | ||||||||||||||||
Segment assets (a) | 26,471 | 6,837 | 33,308 | 18,748 | 12,118 | 30,866 | 7,654 | 134 | 71,962 | ||||||||||||||||||||
Capital expenditures (b) | 51 | 3 | 54 | 318 | 34 | 352 | (9 | ) | — | 397 | |||||||||||||||||||
(a) | Segment assets are as of December 28, 2013. | ||||||||||||||||||||||||||||
(b) | Capital expenditures are presented on the accrual basis of accounting. | ||||||||||||||||||||||||||||
There are no differences in the basis of segmentation or in the basis of measurement of segment profit or loss from the last Annual Report on Form 10-K. | |||||||||||||||||||||||||||||
AMORTIZABLE_INTANGIBLE_ASSETS
AMORTIZABLE INTANGIBLE ASSETS | 6 Months Ended |
Jun. 28, 2014 | |
AMORTIZABLE INTANGIBLE ASSETS | ' |
AMORTIZABLE INTANGIBLE ASSETS | ' |
8.Identifiable amortizable intangible assets as of June 28, 2014 include a restrictive land covenant and customer relationships. Collectively, these assets were carried at $92,000, net of $628,000 accumulated amortization. The pre-tax amortization expense for intangible assets during the quarter ended June 28, 2014 was $13,000 compared to $15,000 for the quarter ended June 29, 2013 and was $26,000 and $30,000 for the six months ended June 28, 2014 and June 29, 2013, respectively. | |
Based upon the intangible assets recorded on the balance sheet at June 28, 2014, amortization expense for the next five years is estimated to be as follows: 2014 – $52,000; 2015 – $45,000; 2016 – $21,000. | |
NONEMPLOYEE_DIRECTORS_SHAREBAS
NON-EMPLOYEE DIRECTORS SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 28, 2014 | |
NON-EMPLOYEE DIRECTORS SHARE-BASED COMPENSATION | ' |
NON-EMPLOYEE DIRECTORS SHARE-BASED COMPENSATION | ' |
9.The Company issued a total of 12,000 shares to the eight eligible board members effective February 12, 2014 as full payment for their 2014 retainer fee. The Company issued a total of 12,000 shares to the eight eligible board members effective February 11, 2013 as full payment for their 2013 retainer fee. All shares were issued under the 2010 Non-Employee Directors Stock Plan. | |
REVOLVING_BANK_LOAN_AND_LONGTE
REVOLVING BANK LOAN AND LONG-TERM DEBT | 6 Months Ended | |||
Jun. 28, 2014 | ||||
REVOLVING BANK LOAN AND LONG-TERM DEBT | ' | |||
REVOLVING BANK LOAN AND LONG-TERM DEBT | ' | |||
10.The Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) effective November 18, 2011. The Company entered into a Second Amendment to Credit Agreement effective March 20, 2014 to, among other things, (i) increase the Revolving Commitment to $18,000,000 from $15,000,000, (ii) terminate the Term Loan Commitment upon the repayment in full of the outstanding principal balance (and accrued interest thereon), (iii) modify the Borrowing Base calculation to provide for borrowing availability in respect of new Capital Expenditures, (iv) decrease the interest rates on the Revolving Loans beginning in the third quarter of 2014, and (v) extend the maturity date to May 1, 2016, in each case, on the terms and conditions set forth in the Second Amendment. Borrowings under the Credit Agreement are secured by the Company’s accounts receivable, inventories, machinery, equipment, vehicles, certain real estate and the common stock of all of the Company’s subsidiaries. The Company entered into a Third Amendment to Credit Agreement effective June 28, 2014 to defer the Fixed Charge Coverage Ratio covenant until the third quarter of fiscal 2014 and to add a minimum Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) requirement of $2,000,000 for the twelve months ended June 28, 2014, which the Company has met. Borrowings bear interest based on a London Interbank Offered Rate (LIBOR) or prime rate based option. | ||||
The Credit Agreement either limits or requires prior approval by the lender of additional borrowings, acquisition of stock of other companies, purchase of treasury shares and payment of cash dividends. Payment of accrued interest is due monthly or at the end of the applicable LIBOR period. | ||||
The Credit Agreement, as amended, also provides for the following: | ||||
· | The Revolving Commitment is $18,000,000. | |||
· | Borrowings under the Revolving Commitment are limited to (a) 80% of eligible accounts receivable, (b) the lesser of 50% of eligible inventories and $8,500,000 plus (c) the lesser of 80% of new Capital Expenditures not to exceed $4,000,000 in the aggregate and $2,000,000 with respect to each of Fiscal Years 2014 and 2015. | |||
· | The Minimum Fixed Charge Coverage Ratio is not permitted to be below 1.05 to 1.0 for the Computation Period ending June 28, 2014 increasing to 1.15 to 1.0 for the Computation Period ending September 27, 2014 and each Fiscal Quarter end thereafter. | |||
· | The Company must not permit Earnings Before Interest, Taxes, Depreciation and Amortization (Minimum EBITDA) to be less than $2,500,000 for the fiscal year ended December 28, 2013 or permit the Minimum EBITDA to be less than $1,500,000 for the trailing twelve-month period ending March 29, 2014. | |||
· | The Company must maintain a Minimum Tangible Net Worth as of the last day of any Computation Period of $35,000,000 increased by (but not decreased by) 50% of the Consolidated Net Income beginning with the 2013 fiscal year. | |||
· | The Balance Sheet Leverage Ratio as of the last day of any Computation Period may not exceed 1.00 to 1.00. | |||
· | The Company must pay within 120 days after the end of each Fiscal Year, an amount equal to fifty percent of Excess Cash Flow for such Fiscal Year. The lender waived this provision for the 2012 fiscal year. | |||
· | The maturity date of the credit facility is May 1, 2016. | |||
· | Interest rate pricing for the revolving credit facility is currently LIBOR plus 3.25% or the prime rate plus 1%. Commencing July 1, 2014, interest rate pricing will be lowered to LIBOR plus 3.00% or the prime rate plus .75%. An additional reduction is possible in the event the Fixed Charge Coverage Ratio is equal to or exceeds 1.5 to 1.0 with respect to any Computation Period ending on or after December 31, 2014. | |||
Definitions under the Credit Agreement as amended are as follows: | ||||
· | Minimum Tangible Net Worth is defined as net worth plus subordinated debt, minus intangible assets (goodwill, intellectual property, prepaid expenses, deposits and deferred charges), minus all obligations owed to the Company or any of its subsidiaries by any affiliate or any or its subsidiaries and minus all loans owed by its officers, stockholders, subsidiaries or employees. | |||
· | Excess Cash Flow is defined as meaning for any period, the remainder of (a) EBITDA for such period, minus (b) the sum, without duplication, of (i) scheduled repayments of principal of the term loan made during such period, plus (ii) voluntary prepayments of the term loan during such period, plus (iii) mandatory prepayments of the term loan during such period to the extent the amount of such mandatory prepayment was included in EBITDA for such period, plus (iv) cash payments made in such period with respect to capital expenditures, plus (v) all income taxes paid in cash by the Company during such period, plus (vi) cash interest expense of the Company during such period. | |||
· | Fixed Charge Coverage Ratio is defined as, for any computation period, the ratio of (a) the sum for such period of (i) EBITDA minus (ii) the sum of income taxes paid in cash and all unfinanced capital expenditures to (b) the sum for such period of (i) interest expense, plus (ii) required payments of principal of the term debt. | |||
· | Balance Sheet Leverage Ratio is defined as the ratio of Total Debt to Tangible Net Worth. | |||
As noted above, the Second Amendment to the Credit Agreement called for the payoff of the then outstanding balance of the term loan with borrowings against the new revolving line of credit. Outstanding funded debt (term debt and revolving credit) was $5,400,000 as of June 28, 2014 compared to $3,658,000 at June 29, 2013. The highest balance outstanding during the first six months of 2014 and 2013 was $8,000,000 and $3,908,000, respectively. Average outstanding funded debt was $5,175,000 and $3,721,000 for the first six months of 2014 and 2013, respectively. At June 28, 2014, the Company had outstanding letters of credit totaling $5,415,000. At all times since the inception of the Credit Agreement, the Company has had sufficient qualifying and eligible assets such that the available borrowing capacity exceeded the cash needs of the Company and this situation is expected to continue for the foreseeable future. | ||||
The Company believes that its existing cash balance, anticipated cash flow from operations and borrowings available under the Credit Agreement, will be sufficient to cover expected cash needs, including planned capital expenditures, for the next twelve months. The Company expects to meet or exceed the Minimum Fixed Charge Coverage Ratio of 1.15 to 1.00 for all succeeding Computation Periods. | ||||
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Jun. 28, 2014 | |
LEGAL PROCEEDINGS | ' |
LEGAL PROCEEDINGS | ' |
11.The Company is involved in litigation matters related to its business, principally product liability matters related to the gas-fired heating products and fan coil products in the Heating and Cooling segment. In the Company’s opinion, none of these proceedings, when concluded, will have a material adverse effect on the Company’s consolidated results of operations, cash flows or financial condition as the Company has established adequate accruals for matters that are probable and estimable. The Company does not accrue estimated future legal costs related to the defense of these matters but rather expenses them as incurred. | |
INDUSTRY_SEGMENT_INFORMATION_T
INDUSTRY SEGMENT INFORMATION (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||||||||||
INDUSTRY SEGMENT INFORMATION | ' | ||||||||||||||||||||||||||||
Schedule of information about reported segments along with the items necessary to reconcile the segment information to totals reported in financial statements | ' | ||||||||||||||||||||||||||||
Construction Products | HVAC Products | ||||||||||||||||||||||||||||
Concrete, | Doors | Combined | Heating | Evaporative | Combined | Unallocated | Other | Total | |||||||||||||||||||||
Aggregates & | Construction | and | Cooling | HVAC | Corporate | ||||||||||||||||||||||||
Construction | Products | Cooling | Products | ||||||||||||||||||||||||||
Supplies | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Six Months ended June 28, 2014 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 27,341 | $ | 8,421 | $ | 35,762 | $ | 12,618 | $ | 15,804 | $ | 28,422 | $ | 7 | $ | — | $ | 64,191 | |||||||||||
Depreciation, depletion and amortization | 920 | 71 | 991 | 257 | 209 | 466 | 24 | — | 1,481 | ||||||||||||||||||||
Operating (loss) income | (1,358 | ) | 936 | (422 | ) | (399 | ) | 1,649 | 1,250 | (1,479 | ) | — | (651 | ) | |||||||||||||||
Segment assets | 35,727 | 7,320 | 43,047 | 16,095 | 13,415 | 29,510 | 2,421 | 134 | 75,112 | ||||||||||||||||||||
Capital expenditures (b) | 1,225 | 35 | 1,260 | 111 | 134 | 245 | — | — | 1,505 | ||||||||||||||||||||
Quarter ended June 28, 2014 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 17,023 | $ | 4,525 | $ | 21,548 | $ | 5,694 | $ | 10,121 | $ | 15,815 | $ | 4 | $ | — | $ | 37,367 | |||||||||||
Depreciation, depletion and amortization | 464 | 35 | 499 | 128 | 104 | 232 | 12 | — | 743 | ||||||||||||||||||||
Operating income (loss) | 225 | 541 | 766 | (369 | ) | 1,386 | 1,017 | (749 | ) | — | 1,034 | ||||||||||||||||||
Segment assets | 35,727 | 7,320 | 43,047 | 16,095 | 13,415 | 29,510 | 2,421 | 134 | 75,112 | ||||||||||||||||||||
Capital expenditures (b) | 602 | 1 | 603 | 55 | 40 | 95 | — | — | 698 | ||||||||||||||||||||
Construction Products | HVAC Products | ||||||||||||||||||||||||||||
Concrete, | Doors | Combined | Heating | Evaporative | Combined | Unallocated | Other | Total | |||||||||||||||||||||
Aggregates & | Construction | and | Cooling | HVAC | Corporate | ||||||||||||||||||||||||
Construction | Products | Cooling | Products | ||||||||||||||||||||||||||
Supplies | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Six Months ended June 29, 2013 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 19,594 | $ | 8,126 | $ | 27,720 | $ | 15,089 | $ | 16,226 | $ | 31,315 | $ | 6 | $ | 29 | $ | 59,070 | |||||||||||
Depreciation, depletion and amortization | 1,185 | 62 | 1,247 | 206 | 179 | 385 | 27 | — | 1,659 | ||||||||||||||||||||
Operating (loss) income | (2,122 | ) | 610 | (1,512 | ) | 1,214 | 1,843 | 3,057 | (1,530 | ) | (774 | ) | (759 | ) | |||||||||||||||
Segment assets (a) | 26,471 | 6,837 | 33,308 | 18,748 | 12,118 | 30,866 | 7,654 | 134 | 71,962 | ||||||||||||||||||||
Capital expenditures (b) | 147 | 39 | 186 | 384 | 240 | 624 | 6 | — | 816 | ||||||||||||||||||||
Quarter ended June 29, 2013 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 11,777 | $ | 4,401 | $ | 16,178 | $ | 5,530 | $ | 11,145 | $ | 16,675 | $ | 4 | $ | — | $ | 32,857 | |||||||||||
Depreciation, depletion and amortization | 607 | 31 | 638 | 103 | 89 | 192 | 14 | — | 844 | ||||||||||||||||||||
Operating (loss) income | (174 | ) | 494 | 320 | (80 | ) | 1,602 | 1,522 | (806 | ) | (662 | ) | 374 | ||||||||||||||||
Segment assets (a) | 26,471 | 6,837 | 33,308 | 18,748 | 12,118 | 30,866 | 7,654 | 134 | 71,962 | ||||||||||||||||||||
Capital expenditures (b) | 51 | 3 | 54 | 318 | 34 | 352 | (9 | ) | — | 397 | |||||||||||||||||||
(a) | Segment assets are as of December 28, 2013. | ||||||||||||||||||||||||||||
(b) | Capital expenditures are presented on the accrual basis of accounting. | ||||||||||||||||||||||||||||
INCOME_TAXES_Details
INCOME TAXES (Details) | 6 Months Ended |
Jun. 28, 2014 | |
Internal Revenue Service I R S [Member] | ' |
Net operating losses | ' |
Net operating losses carryforward period | '20 years |
State And Local Jurisdiction [Member] | Minimum [Member] | ' |
Net operating losses | ' |
Net operating losses carryforward period | '5 years |
State And Local Jurisdiction [Member] | Maximum [Member] | ' |
Net operating losses | ' |
Net operating losses carryforward period | '20 years |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (State And Local Jurisdiction [Member], C [O]) | 6 Months Ended |
Jun. 28, 2014 | |
State And Local Jurisdiction [Member] | C [O] | ' |
Tax credits | ' |
Tax credits carry-forward period | '7 years |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | |
EARNINGS PER SHARE | ' | ' | ' | ' |
Difference between the calculation of basic and diluted EPS (in dollars per share) | $0 | $0 | $0 | $0 |
INDUSTRY_SEGMENT_INFORMATION_D
INDUSTRY SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | $37,367 | $32,857 | $64,191 | $59,070 | ' |
Depreciation, depletion and amortization | 743 | 844 | 1,481 | 1,659 | ' |
Operating Income (Loss) | 1,034 | 374 | -651 | -759 | ' |
Segment assets | 75,112 | 71,962 | 75,112 | 71,962 | 71,962 |
Capital expenditures | 698 | 397 | 1,505 | 816 | ' |
Concrete Aggregates And Construction Supplies [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 17,023 | 11,777 | 27,341 | 19,594 | ' |
Depreciation, depletion and amortization | 464 | 607 | 920 | 1,185 | ' |
Operating Income (Loss) | 225 | -174 | -1,358 | -2,122 | ' |
Segment assets | 35,727 | 26,471 | 35,727 | 26,471 | ' |
Capital expenditures | 602 | 51 | 1,225 | 147 | ' |
Doors [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 4,525 | 4,401 | 8,421 | 8,126 | ' |
Depreciation, depletion and amortization | 35 | 31 | 71 | 62 | ' |
Operating Income (Loss) | 541 | 494 | 936 | 610 | ' |
Segment assets | 7,320 | 6,837 | 7,320 | 6,837 | ' |
Capital expenditures | 1 | 3 | 35 | 39 | ' |
Heating And Cooling [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 5,694 | 5,530 | 12,618 | 15,089 | ' |
Depreciation, depletion and amortization | 128 | 103 | 257 | 206 | ' |
Operating Income (Loss) | -369 | -80 | -399 | 1,214 | ' |
Segment assets | 16,095 | 18,748 | 16,095 | 18,748 | ' |
Capital expenditures | 55 | 318 | 111 | 384 | ' |
Evaporative Cooling [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 10,121 | 11,145 | 15,804 | 16,226 | ' |
Depreciation, depletion and amortization | 104 | 89 | 209 | 179 | ' |
Operating Income (Loss) | 1,386 | 1,602 | 1,649 | 1,843 | ' |
Segment assets | 13,415 | 12,118 | 13,415 | 12,118 | ' |
Capital expenditures | 40 | 34 | 134 | 240 | ' |
Corporate Non Segment [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 4 | 4 | 7 | 6 | ' |
Depreciation, depletion and amortization | 12 | 14 | 24 | 27 | ' |
Operating Income (Loss) | -749 | -806 | -1,479 | -1,530 | ' |
Segment assets | 2,421 | 7,654 | 2,421 | 7,654 | ' |
Capital expenditures | ' | -9 | ' | 6 | ' |
All Other Segments [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | 29 | ' |
Operating Income (Loss) | ' | -662 | ' | -774 | ' |
Segment assets | 134 | 134 | 134 | 134 | ' |
Construction Products [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 21,548 | 16,178 | 35,762 | 27,720 | ' |
Depreciation, depletion and amortization | 499 | 638 | 991 | 1,247 | ' |
Operating Income (Loss) | 766 | 320 | -422 | -1,512 | ' |
Segment assets | 43,047 | 33,308 | 43,047 | 33,308 | ' |
Capital expenditures | 603 | 54 | 1,260 | 186 | ' |
Heating Ventilation And Air Conditioning Products [Member] | ' | ' | ' | ' | ' |
INDUSTRY SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Revenues from external customers | 15,815 | 16,675 | 28,422 | 31,315 | ' |
Depreciation, depletion and amortization | 232 | 192 | 466 | 385 | ' |
Operating Income (Loss) | 1,017 | 1,522 | 1,250 | 3,057 | ' |
Segment assets | 29,510 | 30,866 | 29,510 | 30,866 | ' |
Capital expenditures | $95 | $352 | $245 | $624 | ' |
AMORTIZABLE_INTANGIBLE_ASSETS_
AMORTIZABLE INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
AMORTIZABLE INTANGIBLE ASSETS | ' | ' | ' | ' |
Accumulated amortization | $628 | ' | $628 | ' |
Amortization expense | 13 | 15 | 26 | 30 |
Estimated amortization expense | ' | ' | ' | ' |
2015 | 52 | ' | 52 | ' |
2016 | 45 | ' | 45 | ' |
2017 | $21 | ' | $21 | ' |
NONEMPLOYEE_DIRECTORS_SHAREBAS1
NON-EMPLOYEE DIRECTORS SHARE-BASED COMPENSATION (Details) (Director [Member]) | 0 Months Ended | |
Feb. 12, 2014 | Feb. 11, 2013 | |
director | ||
Director [Member] | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Number of shares issued to eligible board members | 12,000 | 12,000 |
Number of eligible board members | ' | 8 |
REVOLVING_BANK_LOAN_AND_LONGTE1
REVOLVING BANK LOAN AND LONG-TERM DEBT (Details) (USD $) | 0 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||
Jun. 28, 2014 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Mar. 20, 2014 | Mar. 21, 2013 | Jul. 01, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jun. 28, 2014 | Jul. 01, 2014 | Jun. 28, 2014 | Jun. 29, 2013 | |
Period Ending September272014 [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term Debt And Revolving Credit [Member] | Term Debt And Revolving Credit [Member] | ||||
December302012 To December282013 [Member] | Period Ending March292014 [Member] | Period Ending June282014 [Member] | Period Ending On Or After December312014 [Member] | Subsequent Event [Member] | Minimum [Member] | Debt Instrument Variable Rate Base London Inter Bank Offered Rate [Member] | Debt Instrument Variable Rate Base London Inter Bank Offered Rate [Member] | Debt Instrument Variable Rate Base Prime [Member] | Debt Instrument Variable Rate Base Prime [Member] | Debt Instrument Variable Rate Base Prime [Member] | ||||||||||
Subsequent Event [Member] | ||||||||||||||||||||
REVOLVING BANK LOAN AND LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum revolving credit facility line | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings as a percentage of eligible accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' |
Borrowings as a percentage of eligible inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Maximum inventory borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowings as a percentage of capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum line of credit borrowing amount based on aggregate new capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum annual line of credit borrowing amount for fiscal 2014 based on new capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum annual line of credit borrowing amount for fiscal 2015 based on new capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | 1.15 | ' | ' | 1.05 | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EBITDA requirements | 2,000,000 | ' | ' | ' | 2,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum tangible net worth threshold, base amount | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum tangible net worth threshold, percentage of the consolidated net income | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum balance sheet leverage ratio | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period after the end of each fiscal year, within which specified percentage of excess cash flow to be paid | ' | '120 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Specified percentage of excess cash flow to be paid after the end of each fiscal year | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | 'prime rate | ' | 'prime rate | ' | ' |
Percentage points added to the reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | 3.25% | ' | 1.00% | 0.75% | ' | ' |
Outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | 3,658,000 |
Highest balance outstanding during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | 3,908,000 |
Average outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,175,000 | 3,721,000 |
Outstanding amount of letters of credit total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,415,000 | ' |
Period over which existing cash balance, anticipated cash flow from operations and borrowings available under the credit agreement will be sufficient to cover expected cash needs | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |