The Eastern Company (EML) 10-Q 25 Jul 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 28, 2014	Jul. 23, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'EASTERN CO	'
Entity Central Index Key	'0000031107	'
Current Fiscal Year End Date	'--01-03	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	6,223,094
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	28-Jun-14	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Current Assets	'	'
Cash and cash equivalents	$19,377,313	$19,988,361
Accounts receivable, less allowances: $445,000 - 2014; $410,000 - 2013	18,346,692	16,284,603
Inventories	30,789,956	30,657,612
Prepaid expenses and other assets	2,869,741	3,244,686
Deferred income taxes	818,662	818,662
Total Current Assets	72,202,364	70,993,924
Property, Plant and Equipment	63,035,251	61,849,854
Accumulated depreciation	-35,676,329	-34,458,096
Net Property, Plant and Equipment	27,358,922	27,391,758
Goodwill	13,844,522	13,842,047
Trademarks	174,662	173,177
Patents, technology and other intangibles net of accumulated amortization	1,436,689	1,457,503
Total Other Assets	15,455,873	15,472,727
TOTAL ASSETS	115,017,159	113,858,409
Current Liabilities	'	'
Accounts payable	8,445,171	7,302,368
Accrued compensation	1,892,049	3,007,169
Other accrued expenses	900,789	1,519,338
Current portion of long-term debt	1,785,714	1,785,714
Total Current Liabilities	13,023,723	13,614,589
Deferred income taxes	1,312,473	1,111,755
Other long-term liabilities	248,417	248,417
Long-term debt, less current portion	3,571,429	4,285,714
Accrued postretirement benefits	2,339,272	2,232,872
Accrued pension cost	10,858,616	10,860,211
Shareholders' Equity	'	'
Voting Preferred Stock, no par value: Authorized and unissued: 1,000,000 shares	'	'
Nonvoting Preferred Stock, no par value: Authorized and unissued: 1,000,000 shares	'	'
Common Stock, no par value: Authorized: 50,000,000 shares Issued: 8,917,354 shares in 2014 and 8,916,897 shares in 2013	28,636,577	28,621,582
Treasury Stock: 2,694,729 shares in 2014 and 2013	-19,105,723	-19,105,723
Retained earnings	84,834,131	83,006,671
Accumulated other comprehensive income (loss):	'	'
Foreign currency translation	1,930,734	1,983,506
Unrecognized net pension and postretirement benefit costs, net of tax	-12,632,490	-13,001,185
Accumulated other comprehensive loss	-10,701,756	-11,017,679
Total Shareholders' Equity	83,663,229	81,504,851
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$115,017,159	$113,858,409

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Current Assets	'	'
Accounts receivable, allowances	$445,000	$410,000
Shareholders' Equity	'	'
Voting Preferred Stock, no par value (in dollars per share)	$0	$0
Voting Preferred Stock, shares authorized (in shares)	1,000,000	1,000,000
Nonvoting Preferred Stock, no par value (in dollars per share)	$0	$0
Nonvoting Preferred Stock, shares authorized (in shares)	1,000,000	1,000,000
Common Stock, no par value (in dollars per share)	$0	$0
Common Stock, shares authorized (in shares)	50,000,000	50,000,000
Common Stock, shares issued (in shares)	8,917,354	8,916,897
Treasury Stock, shares (in shares)	2,694,729	2,694,729

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract]	'	'	'	'
Net sales	$34,779,773	$39,247,980	$70,628,899	$73,940,154
Cost of products sold	-27,003,469	-30,717,138	-55,339,189	-59,142,732
Gross margin	7,776,304	8,530,842	15,289,710	14,797,422
Selling and administrative expenses	-4,988,364	-5,223,185	-10,204,653	-9,904,481
Operating profit	2,787,940	3,307,657	5,085,057	4,892,941
Interest expense	-64,626	-84,776	-133,195	-170,852
Other income	16,683	19,871	23,966	28,459
Income before income taxes	2,739,997	3,242,752	4,975,828	4,750,548
Income taxes	1,046,494	1,068,458	1,779,440	1,571,006
Net income	$1,693,503	$2,174,294	$3,196,388	$3,179,542
Earnings per share:	'	'	'	'
Basic (in dollars per share)	$0.27	$0.35	$0.51	$0.51
Diluted (in dollars per share)	$0.27	$0.35	$0.51	$0.51
Cash dividends per share: (in dollars per share)	$0.11	$0.10	$0.22	$0.20

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]	'	'	'	'
Net income	$1,693,503	$2,174,294	$3,196,388	$3,179,542
Other comprehensive income/(loss):	'	'	'	'
Change in foreign currency translation	313,757	-435,779	-52,772	-536,862
Change in pension and postretirement benefit costs, net of taxes of: 2014 - $200,718 and $100,368, respectively 2013 - $293,833 and $146,917, respectively	184,365	269,042	368,695	538,084
Total other comprehensive income/(loss)	498,122	-166,737	315,923	1,222
Comprehensive income	$2,191,625	$2,007,557	$3,512,311	$3,180,764

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Other comprehensive income/(loss):	'	'	'	'
Change in pension and postretirement benefit costs, taxes	$100,368	$146,917	$200,718	$293,833

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013
Operating Activities	'	'
Net income	$3,196,388	$3,179,542
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	1,666,843	1,948,878
Loss on sale of equipment and other assets	84,785	11,394
Provision for doubtful accounts	51,330	40,410
Issuance of Common Stock for directors' fees	14,994	11,253
Changes in operating assets and liabilities:	'	'
Accounts receivable	-2,096,292	-1,301,746
Inventories	-120,992	-387,175
Prepaid expenses and other	378,211	-224,680
Prepaid pension cost	579,764	1,327,949
Recoverable taxes receivable	0	750,000
Other assets	-96,529	-51,997
Accounts payable	1,137,942	454,402
Accrued compensation	-1,356,886	-1,397,640
Other accrued expenses	-297,302	165,827
Net cash provided by operating activities	3,142,256	4,526,417
Investing Activities	'	'
Purchases of property, plant and equipment	-1,608,421	-2,714,190
Net cash used in investing activities	-1,608,421	-2,714,190
Financing Activities	'	'
Principal payments on long-term debt	-714,285	-714,286
Proceeds from sales of Common Stock	0	13,580
Dividends paid	-1,368,927	-1,244,076
Net cash used in financing activities	-2,083,212	-1,944,782
Effect of exchange rate changes on cash	-61,671	-182,601
Net change in cash and cash equivalents	-611,048	-315,156
Cash and cash equivalents at beginning of period	19,988,361	18,482,144
Cash and cash equivalents at end of period	$19,377,313	$18,166,988

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jun. 28, 2014
Basis of Presentation [Abstract]	'
Basis of Presentation	'
	Note A – Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. Refer to the Company’s consolidated financial statements and notes thereto included in its Form 10-K for the year ended December 28, 2013 for additional information.
	The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interim periods have been reflected therein. All intercompany accounts and transactions are eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.
	The condensed consolidated balance sheet as of December 28, 2013 has been derived from the audited consolidated balance sheet at that date.

Earnings_Per_Share

Earnings Per Share	6 Months Ended
	Jun. 28, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	Note B – Earnings Per Share
	The denominators used in the earnings per share computations follow:
		Six Months Ended				Three Months Ended
		28-Jun-14		29-Jun-13		28-Jun-14		29-Jun-13
	Basic:
	Weighted average shares outstanding		6,222,444		6,220,171		6,222,676		6,220,569
	Diluted:
	Weighted average shares outstanding		6,222,444		6,220,171		6,222,676		6,220,569
	Dilutive stock options		17,063		17,262		17,190		17,456
	Denominator for diluted earnings per share		6,239,507		6,237,433		6,239,866		6,238,025

Inventories

Inventories	6 Months Ended
	Jun. 28, 2014
Inventories [Abstract]	'
Inventories	'
	Note C – Inventories
	The components of inventories follow:
		28-Jun-14		28-Dec-13
	Raw material and component parts	$	8,282,498	$	8,256,977
	Work in process		4,957,183		4,925,001
	Finished goods		17,550,275		17,475,634
		$	30,789,956	$	30,657,612

Segment_Information

Segment Information	6 Months Ended
	Jun. 28, 2014
Segment Information [Abstract]	'
Segment Information	'
	Note D – Segment Information
	Segment financial information follows:
		Six Months Ended						Three Months Ended
		28-Jun-14			29-Jun-13			28-Jun-14			29-Jun-13
	Revenues:
	Sales to unaffiliated customers:
	Industrial Hardware	$	29,195,398		$	31,615,564		$	15,064,647		$	16,399,474
	Security Products		24,967,882			23,957,489			12,420,846			12,977,338
	Metal Products		16,465,619			18,367,101			7,294,280			9,871,168
		$	70,628,899		$	73,940,154		$	34,779,773		$	39,247,980
	Income before income taxes:
	Industrial Hardware	$	2,566,403		$	2,063,104		$	1,470,569		$	1,459,117
	Security Products		1,445,451			1,237,434			890,165			988,732
	Metal Products		1,073,203			1,592,403			427,206			859,808
	Operating Profit		5,085,057			4,892,941			2,787,940			3,307,657
	Interest expense		(133,195	)		(170,852	)		(64,626	)		(84,776	)
	Other income		23,966			28,459			16,683			19,871
		$	4,975,828		$	4,750,548		$	2,739,997		$	3,242,752

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	6 Months Ended
	Jun. 28, 2014
Recent Accounting Pronouncements [Abstract]	'
Recent Accounting Pronouncements	'
	Note E – Recent Accounting Pronouncements
	In April 2014, the FASB issued authoritative guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. To qualify as a discontinued operation the standard requires a disposal to represent a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The standard also expands the disclosures for discontinued operations and requires new disclosures related to individually material dispositions that do not qualify as discontinued operations. The guidance is effective for fiscal years beginning after December 15, 2014, with early adoption permitted.  The Company will adopt this guidance with its fiscal year effective January 4, 2015 and does not expect any impact on the consolidated financial statements of the Company.  This guidance will impact the reporting of any future dispositions.
	In May 2014, the FASB issued authoritative guidance which impacts virtually all aspects of an entity's revenue recognition. The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted.  The Company has not determined the impact of the adoption of this guidance on the consolidated financial statements of the Company.
	The Company has implemented all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact on the consolidated financial statements of the Company.

Debt

Debt	6 Months Ended
	Jun. 28, 2014
Debt [Abstract]	'
Debt	'
	Note F – Debt
	On January 29, 2010, the Company signed a secure Loan Agreement (the “Loan Agreement”) with People’s United Bank (“People’s”) which included a $5,000,000 term portion (the “Original Term Loan”) and a $10,000,000 revolving credit portion.  On January 25, 2012, the Company amended the loan agreement by taking an additional $5,000,000 term loan (the “2012 Term Loan”).  Interest on the Original Term Loan portion of the Loan Agreement is fixed at 4.98%.  Interest on the 2012 Term Loan is fixed at 3.90%.  The interest rate on the revolving credit portion of the Loan Agreement varied based on the LIBOR rate or People’s Prime rate plus a margin spread of 2.25%, with a floor rate of 3.25% and a maturity date of January 31, 2014.  On January 23, 2014, the Company signed an amendment to its secured Loan Agreement with People’s which extended the maturity date of the $10,000,000 revolver portion of the Loan Agreement to July 1, 2016 and changed the interest rate to LIBOR plus 2.25%, eliminating the floor previously in place.
	The Company has loan covenants under the Loan Agreement which require the Company to maintain a fixed charge coverage ratio of at least 1.1 to 1, a leverage ratio of no more than 1.75 to 1, and minimum tangible net worth of $43 million as of the end of Fiscal 2010 increasing each year by 50% of consolidated net income.  This amount was approximately $52.8 million for Fiscal 2013.  As part of the amendment signed on January 23, 2014, the leverage ratio was eliminated and the minimum tangible net worth covenant was modified to a fixed $55 million, effective as of March 29, 2014.  In addition, the Company has restrictions on, among other things, new capital leases, purchases or redemptions of its capital stock, mergers and divestitures, and new borrowing.  The Company was in compliance with all covenants in 2013 and for the six month period ended June 28, 2014.

Goodwill

Goodwill	6 Months Ended
	Jun. 28, 2014
Goodwill [Abstract]	'
Goodwill	'
	Note G – Goodwill
	The following is a roll-forward of goodwill from year-end 2013 to the end of the second quarter 2014:
		Industrial		Security		Metal		Total
		Hardware		Products		Products
		Segment		Segment		Segment
	Beginning balance	$	2,008,231	$	11,833,816	$	-	$	13,842,047
	Foreign exchange		2,475		-		-		2,475
	Ending balance	$	2,010,706	$	11,833,816	$	-	$	13,844,522

Intangibles

Intangibles	6 Months Ended
	Jun. 28, 2014
Intangibles [Abstract]	'
Intangibles	'
	Note H – Intangibles
	Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Trademarks are not amortized as their lives are deemed to be indefinite.
	The gross carrying amount and accumulated amortization of amortizable intangible assets:
		Industrial		Security		Metal		Total		Weighted-Average
		Hardware		Products		Products				Amortization Period
		Segment		Segment		Segment				(Years)
	2014 Patents and developed technology
	Gross Amount:	$	2,658,566	$	1,051,805	$	-	$	3,710,371		15.8
	Accumulated Amortization:		1,730,696		542,986		-		2,273,682
	Net June 28, 2014 per Balance Sheet	$	927,870	$	508,819	$	-	$	1,436,689
	2013 Patents and developed technology
	Gross Amount:	$	2,595,931	$	1,041,250	$	-	$	3,710,371		16
	Accumulated Amortization:		1,676,440		503,238		-		2,273,682
	Net December 28, 2013 per Balance Sheet	$	919,491	$	538,012	$	-	$	1,457,503

Retirement_Benefit_Plans

Retirement Benefit Plans	6 Months Ended
	Jun. 28, 2014
Retirement Benefit Plans [Abstract]	'
Retirement Benefit Plans	'
	Note I – Retirement Benefit Plans
	The Company has non-contributory defined benefit pension plans covering certain U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded nonqualified supplemental retirement plans that provide certain current and former officers with benefits in excess of limits imposed by federal tax law.
	The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.
	Significant disclosures relating to these benefit plans for the second quarter and first six months of fiscal 2014 and 2013 follow:
		Pension Benefits
		Six Months Ended						Three Months Ended
		June 28,			June 29,			June 28,			June 29,
		2014			2013			2014			2013
	Service cost	$	1,396,848		$	1,504,062		$	698,424		$	752,030
	Interest cost		1,658,557			1,420,117			829,258			710,058
	Expected return on plan assets		(2,405,262	)		(2,201,824	)		(1,202,630	)		(1,100,912	)
	Amortization of prior service cost		109,293			122,715			54,646			61,359
	Amortization of the net loss		472,065			711,716			236,032			355,857
	Net periodic benefit cost	$	1,231,501		$	1,556,786		$	615,730		$	778,392
		Postretirement Benefits
		Six Months Ended						Three Months Ended
		June 28,			June 29,			June 28,			June 29,
		2014			2013			2014			2013
	Service cost	$	86,951		$	101,284		$	44,951		$	50,642
	Interest cost		78,741			71,043			38,491			35,521
	Expected return on plan assets		(47,406	)		(48,694	)		(25,156	)		(24,347	)
	Amortization of prior service cost		(11,945	)		(11,944	)		(5,945	)		(5,972	)
	Amortization of the net loss		-			9,430			--			4,715
	Net periodic benefit cost	$	106,341		$	121,119		$	52,341		$	60,559
	The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations.  In 2014, the Company expects to contribute $2.5 million into its pension plans and $63,000 into its postretirement plan. As of June 28, 2014, the Company has made contributions totaling approximately $635,000 into its pension plans and $13,000 to its postretirement plan and will make the remaining contributions as required during the remainder of the year.
	The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. The plan allows participants to make voluntary contributions of up to 100% of their annual compensation on a pretax basis, subject to IRS limitations. The plan provides for contributions by the Company at its discretion. The Company made contributions of $50,964 and $103,455 in the second quarter and first six months of 2014, respectively and $49,385 and $100,736 in the second quarter and first six months of 2013, respectively.

Stock_Based_Compensation_and_S

Stock Based Compensation and Stock Options	6 Months Ended
	Jun. 28, 2014
Stock Based Compensation and Stock Options [Abstract]	'
Stock Based Compensation and Stock Options	'
	Note J – Stock Based Compensation and Stock Options
	The Company has stock option plans for officers, other key employees, and non-employee directors. As of June 28, 2014 two plans have shares reserved for future issuance, the 1995 and 2010 plans.  Incentive stock options granted under the 1995 and 2010 plans must have exercise prices that are not less than 100% of the fair market value of the stock on the dates the options are granted. Restricted stock awards may also be granted to participants under the 2010 plan with restrictions determined by the Compensation Committee of the Company’s Board of Directors. Under the 1995 and 2010 plans, nonqualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company’s Board of Directors. No options or restricted stock were granted in the first six months of 2014 or 2013.
	As of June 28, 2014, there were 500,000 shares available for future grant under the above noted 2010 plan and there were no shares available for grant under the 1995 plan.  As of June 28, 2014, there were 520,000 shares of common stock reserved under all option plans for future issuance.
			Six Months Ended								Year Ended
			28-Jun-14								28-Dec-13
			Shares				Weighted - Average				Shares				Weighted - Average
							Exercise Price								Exercise Price
	Outstanding at beginning of period			20,000			$	13.58				21,000			$	13.58
	Exercised			-				-				(1,000	)			13.58
	Outstanding at end of period			20,000				13.58				20,000				13.58
	Options Outstanding and Exercisable
	Range of Exercise Prices				Outstanding as of June 28, 2014				Weighted- Average Remaining Contractual Life				Weighted- Average Exercise Price
	$	13.58				20,000				0.5			$	13.58
	At June 28, 2014, outstanding and exercisable options had an intrinsic value of $38,200.

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 28, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	Note K – Income Taxes
	The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions.  With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2010 and non-U.S. income tax examinations by tax authorities prior to 2008.  During the third quarter of 2013, the Internal Revenue Service completed its examination of the tax returns for Fiscal Years 2010 and 2011. There were no changes to the Company’s financial statements as a result of this audit.
	During the first six months of Fiscal 2014, the Company repatriated approximately $2.8 million in cash from its foreign subsidiaries.  The impact of this has been an increase in the effective tax rate by approximately 2.4%.
	The total amount of unrecognized tax benefits could increase or decrease within the next twelve months for a number of reasons, including the closure of federal, state and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB Accounting Standards Codification (“ASC”) 740.  There have been no significant changes to the amount of unrecognized tax benefits during the six months ended June 28, 2014.  The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months.

Financial_Instruments_and_Fair

Financial Instruments and Fair Value Measurements	6 Months Ended
	Jun. 28, 2014
Financial Instruments and Fair Value Measurements [Abstract]	'
Financial Instruments and Fair Value Measurements	'
	Note L - Financial Instruments and Fair Value Measurements
	Financial Risk Management Objectives and Policies
	The Company is exposed primarily to credit, interest rate and currency exchange rate risks which arise in the normal course of business.
	Credit Risk
	Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Company, as and when they become due. The primary credit risk for the Company is its receivable accounts with customers. The Company has established credit limits for customers and monitors their balances to mitigate the risk of loss. At June 28, 2014 and December 28, 2013, there were no significant concentrations of credit risk. No one customer represented more than 10% of the Company’s net trade receivables at June 28, 2014 or at December 28, 2013.  The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable.
	Interest Rate Risk
	On June 28, 2014, the Company has no exposure to the risk of changes in market interest rates as the interest rate on the outstanding debt is fixed at 4.98% and 3.90%.
	Fair Value Measurements
	Assets and liabilities that require fair value measurement are recorded at fair value using market and income valuation approaches and considering the Company’s and counterparty’s credit risk. The Company uses the market approach and the income approach to value assets and liabilities as appropriate. There are no assets or liabilities requiring fair value measurements on June 28, 2014 or December 28, 2013.

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	6 Months Ended
	Jun. 28, 2014
Earnings Per Share [Abstract]	'
Denominators used in the earnings per share computations	'
	The denominators used in the earnings per share computations follow:
		Six Months Ended				Three Months Ended
		28-Jun-14		29-Jun-13		28-Jun-14		29-Jun-13
	Basic:
	Weighted average shares outstanding		6,222,444		6,220,171		6,222,676		6,220,569
	Diluted:
	Weighted average shares outstanding		6,222,444		6,220,171		6,222,676		6,220,569
	Dilutive stock options		17,063		17,262		17,190		17,456
	Denominator for diluted earnings per share		6,239,507		6,237,433		6,239,866		6,238,025

Inventories_Tables

Inventories (Tables)	6 Months Ended
	Jun. 28, 2014
Inventories [Abstract]	'
Components of inventories	'
	The components of inventories follow:
		28-Jun-14		28-Dec-13
	Raw material and component parts	$	8,282,498	$	8,256,977
	Work in process		4,957,183		4,925,001
	Finished goods		17,550,275		17,475,634
		$	30,789,956	$	30,657,612

Segment_Information_Tables

Segment Information (Tables)	6 Months Ended
	Jun. 28, 2014
Segment Information [Abstract]	'
Segment financial information	'
	Segment financial information follows:
		Six Months Ended						Three Months Ended
		28-Jun-14			29-Jun-13			28-Jun-14			29-Jun-13
	Revenues:
	Sales to unaffiliated customers:
	Industrial Hardware	$	29,195,398		$	31,615,564		$	15,064,647		$	16,399,474
	Security Products		24,967,882			23,957,489			12,420,846			12,977,338
	Metal Products		16,465,619			18,367,101			7,294,280			9,871,168
		$	70,628,899		$	73,940,154		$	34,779,773		$	39,247,980
	Income before income taxes:
	Industrial Hardware	$	2,566,403		$	2,063,104		$	1,470,569		$	1,459,117
	Security Products		1,445,451			1,237,434			890,165			988,732
	Metal Products		1,073,203			1,592,403			427,206			859,808
	Operating Profit		5,085,057			4,892,941			2,787,940			3,307,657
	Interest expense		(133,195	)		(170,852	)		(64,626	)		(84,776	)
	Other income		23,966			28,459			16,683			19,871
		$	4,975,828		$	4,750,548		$	2,739,997		$	3,242,752

Goodwill_Tables

Goodwill (Tables)	6 Months Ended
	Jun. 28, 2014
Goodwill [Abstract]	'
Roll-forward of goodwill	'
	The following is a roll-forward of goodwill from year-end 2013 to the end of the second quarter 2014:
		Industrial		Security		Metal		Total
		Hardware		Products		Products
		Segment		Segment		Segment
	Beginning balance	$	2,008,231	$	11,833,816	$	-	$	13,842,047
	Foreign exchange		2,475		-		-		2,475
	Ending balance	$	2,010,706	$	11,833,816	$	-	$	13,844,522

Intangibles_Tables

Intangibles (Tables)	6 Months Ended
	Jun. 28, 2014
Intangibles [Abstract]	'
Gross carrying amount and accumulated amortization of amortizable intangible assets	'
	The gross carrying amount and accumulated amortization of amortizable intangible assets:
		Industrial		Security		Metal		Total		Weighted-Average
		Hardware		Products		Products				Amortization Period
		Segment		Segment		Segment				(Years)
	2014 Patents and developed technology
	Gross Amount:	$	2,658,566	$	1,051,805	$	-	$	3,710,371		15.8
	Accumulated Amortization:		1,730,696		542,986		-		2,273,682
	Net June 28, 2014 per Balance Sheet	$	927,870	$	508,819	$	-	$	1,436,689
	2013 Patents and developed technology
	Gross Amount:	$	2,595,931	$	1,041,250	$	-	$	3,710,371		16
	Accumulated Amortization:		1,676,440		503,238		-		2,273,682
	Net December 28, 2013 per Balance Sheet	$	919,491	$	538,012	$	-	$	1,457,503

Retirement_Benefit_Plans_Table

Retirement Benefit Plans (Tables)	6 Months Ended
	Jun. 28, 2014
Retirement Benefit Plans [Abstract]	'
Significant disclosures relating to benefit plans	'
	Significant disclosures relating to these benefit plans for the second quarter and first six months of fiscal 2014 and 2013 follow:
		Pension Benefits
		Six Months Ended						Three Months Ended
		June 28,			June 29,			June 28,			June 29,
		2014			2013			2014			2013
	Service cost	$	1,396,848		$	1,504,062		$	698,424		$	752,030
	Interest cost		1,658,557			1,420,117			829,258			710,058
	Expected return on plan assets		(2,405,262	)		(2,201,824	)		(1,202,630	)		(1,100,912	)
	Amortization of prior service cost		109,293			122,715			54,646			61,359
	Amortization of the net loss		472,065			711,716			236,032			355,857
	Net periodic benefit cost	$	1,231,501		$	1,556,786		$	615,730		$	778,392
		Postretirement Benefits
		Six Months Ended						Three Months Ended
		June 28,			June 29,			June 28,			June 29,
		2014			2013			2014			2013
	Service cost	$	86,951		$	101,284		$	44,951		$	50,642
	Interest cost		78,741			71,043			38,491			35,521
	Expected return on plan assets		(47,406	)		(48,694	)		(25,156	)		(24,347	)
	Amortization of prior service cost		(11,945	)		(11,944	)		(5,945	)		(5,972	)
	Amortization of the net loss		-			9,430			--			4,715
	Net periodic benefit cost	$	106,341		$	121,119		$	52,341		$	60,559

Stock_Based_Compensation_and_S1

Stock Based Compensation and Stock Options (Tables)	6 Months Ended
	Jun. 28, 2014
Stock Based Compensation and Stock Options [Abstract]	'
Stock option activity	'
	As of June 28, 2014, there were 500,000 shares available for future grant under the above noted 2010 plan and there were no shares available for grant under the 1995 plan.  As of June 28, 2014, there were 520,000 shares of common stock reserved under all option plans for future issuance.
			Six Months Ended								Year Ended
			28-Jun-14								28-Dec-13
			Shares				Weighted - Average				Shares				Weighted - Average
							Exercise Price								Exercise Price
	Outstanding at beginning of period			20,000			$	13.58				21,000			$	13.58
	Exercised			-				-				(1,000	)			13.58
	Outstanding at end of period			20,000				13.58				20,000				13.58
Options outstanding and exercisable	'
	Options Outstanding and Exercisable
	Range of Exercise Prices				Outstanding as of June 28, 2014				Weighted- Average Remaining Contractual Life				Weighted- Average Exercise Price
	$	13.58				20,000				0.5			$	13.58

Earnings_Per_Share_Details

Earnings Per Share (Details)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Basic [Abstract]	'	'	'	'
Weighted average shares outstanding (in shares)	6,222,676	6,220,569	6,222,444	6,220,171
Diluted [Abstract]	'	'	'	'
Weighted average shares outstanding (in shares)	6,222,676	6,220,569	6,222,444	6,220,171
Dilutive stock options (in shares)	17,190	17,456	17,063	17,262
Denominator for diluted earnings per share (in shares)	6,239,866	6,238,025	6,239,507	6,237,433

Inventories_Details

Inventories (Details) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Components of inventories [Abstract]	'	'
Raw material and component parts	$8,282,498	$8,256,977
Work in process	4,957,183	4,925,001
Finished goods	17,550,275	17,475,634
Inventories	$30,789,956	$30,657,612

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Segment Reporting Information [Line Items]	'	'	'	'
Revenues, sales to unaffiliated customers	$34,779,773	$39,247,980	$70,628,899	$73,940,154
Operating Profit	2,787,940	3,307,657	5,085,057	4,892,941
Interest expense	-64,626	-84,776	-133,195	-170,852
Other income	16,683	19,871	23,966	28,459
Income before income taxes	2,739,997	3,242,752	4,975,828	4,750,548
Industrial Hardware [Member] | Operating Segments [Member]	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenues, sales to unaffiliated customers	15,064,647	16,399,474	29,195,398	31,615,564
Operating Profit	1,470,569	1,459,117	2,566,403	2,063,104
Security Products [Member] | Operating Segments [Member]	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenues, sales to unaffiliated customers	12,420,846	12,977,338	24,967,882	23,957,489
Operating Profit	890,165	988,732	1,445,451	1,237,434
Metal Products [Member] | Operating Segments [Member]	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenues, sales to unaffiliated customers	7,294,280	9,871,168	16,465,619	18,367,101
Operating Profit	$427,206	$859,808	$1,073,203	$1,592,403

Debt_Details

Debt (Details) (USD $)	Jun. 28, 2014	Dec. 28, 2013	Jan. 01, 2011	Jun. 28, 2014	Dec. 28, 2013	Jan. 29, 2010	Jun. 28, 2014	Jun. 28, 2014	Jan. 29, 2010	Jun. 28, 2014	Jan. 25, 2012
				Revolving Credit Line [Member]	Revolving Credit Line [Member]	Revolving Credit Line [Member]	Loan Agreement [Member]	Term Loan [Member]	Term Loan [Member]	2012 Term Loan [Member]	2012 Term Loan [Member]
							Ratio
Debt Instrument [Line Items]	'	'	'	'	'	'	'	'	'	'	'
Maximum borrowing capacity	'	'	'	'	'	$10,000,000	'	'	$5,000,000	'	$5,000,000
Maturity date of loan	'	'	'	1-Jul-16	31-Jan-14	'	'	'	'	'	'
Fixed rate of interest (in hundredths)	'	'	'	'	'	'	'	4.98%	'	3.90%	'
Description of variable rate basis	'	'	'	'LIBOR	'LIBOR rate or People's Prime rate	'	'	'	'	'	'
Basis spread on variable rate (in hundredths)	'	'	'	2.25%	2.25%	'	'	'	'	'	'
Floor rate of loan (in hundredths)	'	'	'	'	3.25%	'	'	'	'	'	'
Fixed charge coverage ratio as multiple, minimum	'	'	'	'	'	'	1.1	'	'	'	'
Leverage ratio as multiple, maximum	'	'	'	'	'	'	1.75	'	'	'	'
Minimum tangible net worth	$55,000,000	$52,800,000	$43,000,000	'	'	'	'	'	'	'	'
Tangible net worth (in hundredths)	'	50.00%	50.00%	'	'	'	'	'	'	'	'

Goodwill_Details

Goodwill (Details) (USD $)	6 Months Ended
	Jun. 28, 2014
Goodwill [Roll Forward]	'
Beginning balance	$13,842,047
Foreign exchange	2,475
Ending balance	13,844,522
Industrial Hardware Segment [Member]	'
Goodwill [Roll Forward]	'
Beginning balance	2,008,231
Foreign exchange	2,475
Ending balance	2,010,706
Security Products Segment [Member]	'
Goodwill [Roll Forward]	'
Beginning balance	11,833,816
Foreign exchange	0
Ending balance	11,833,816
Metal Products Segment [Member]	'
Goodwill [Roll Forward]	'
Beginning balance	0
Foreign exchange	0
Ending balance	$0

Intangibles_Details

Intangibles (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 28, 2014	Dec. 28, 2013
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]	'	'
Net as per Balance Sheet	$1,436,689	$1,457,503
Patents and developed technology [Member]	'	'
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]	'	'
Gross Amount	3,710,371	3,637,181
Accumulated Amortization	2,273,682	2,179,678
Net as per Balance Sheet	1,436,689	1,457,503
Weighted Average Amortization Period	'15 years 9 months 18 days	'16 years
Patents and developed technology [Member] | Industrial Hardware Segment [Member]	'	'
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]	'	'
Gross Amount	2,658,566	2,595,931
Accumulated Amortization	1,730,696	1,676,440
Net as per Balance Sheet	927,870	919,491
Patents and developed technology [Member] | Security Products Segment [Member]	'	'
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]	'	'
Gross Amount	1,051,805	1,041,250
Accumulated Amortization	542,986	503,238
Net as per Balance Sheet	508,819	538,012
Patents and developed technology [Member] | Metal Products Segment [Member]	'	'
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]	'	'
Gross Amount	0	0
Accumulated Amortization	0	0
Net as per Balance Sheet	$0	$0
Technology and licenses [Member] | Minimum [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Useful lives of intangible assets	'5 years	'
Technology and licenses [Member] | Maximum [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Useful lives of intangible assets	'17 years	'

Retirement_Benefit_Plans_Detai

Retirement Benefit Plans (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Significant disclosures relating to benefit plans [Abstract]	'	'	'	'
Percentage of voluntary contributions allowed to participants, maximum (in hundredths)	'	'	100.00%	'
Contributions made by the Company under Section 401(k)	$50,964	$49,385	$103,455	$100,736
Pension Benefits [Member]	'	'	'	'
Significant disclosures relating to benefit plans [Abstract]	'	'	'	'
Service cost	698,424	752,030	1,396,848	1,504,062
Interest cost	829,258	710,058	1,658,557	1,420,117
Expected return on plan assets	-1,202,630	-1,100,912	-2,405,262	-2,201,824
Amortization of prior service cost	54,646	61,359	109,293	122,715
Amortization of the net loss	236,032	355,857	472,065	711,716
Net periodic benefit cost	615,730	778,392	1,231,501	1,556,786
Contributions required by the Company in defined benefit plan in 2014	'	'	2,500,000	'
Contributions made by Company	'	'	635,000	'
Postretirement Benefits [Member]	'	'	'	'
Significant disclosures relating to benefit plans [Abstract]	'	'	'	'
Service cost	44,951	50,642	86,951	101,284
Interest cost	38,491	35,521	78,741	71,043
Expected return on plan assets	-25,156	-24,347	-47,406	-48,694
Amortization of prior service cost	-5,945	-5,972	-11,945	-11,944
Amortization of the net loss	0	4,715	0	9,430
Net periodic benefit cost	52,341	60,559	106,341	121,119
Contributions required by the Company in defined benefit plan in 2014	'	'	63,000	'
Contributions made by Company	'	'	$13,000	'

Stock_Based_Compensation_and_S2

Stock Based Compensation and Stock Options (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 28, 2014	Dec. 28, 2013
	Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Number of plans that have shares reserved for further issuance	2	'
Percentage of fair market value of stock on grant date for exercise price, minimum (in hundredths)	100.00%	'
Options granted (in shares)	0	'
Shares of common stock reserved under all option plans for future issuance (in shares)	520,000	'
Stock Option Activity [Roll Forward]	'	'
Outstanding at beginning of period (in shares)	20,000	21,000
Exercised (in shares)	0	-1,000
Outstanding at end of period (in shares)	20,000	20,000
Weighted - Average Exercise Price [Roll Forward]	'	'
Outstanding at beginning of period (in dollars per share)	$13.58	$13.58
Exercised (in dollars per share)	$0	$13.58
Outstanding at end of period (in dollars per share)	$13.58	$13.58
Options Outstanding and Exercisable [Abstract]	'	'
Range of Exercise Price (in dollars per share)	$13.58	'
Outstanding as of September 28, 2013 (in shares)	20,000	'
Weighted - Average Remaining Contractual Life	'0 years 6 months	'
Weighted- Average Exercise Price (in dollars per share)	$13.58	'
Options outstanding and exercisable, intrinsic value	$38,200	'
1995 Plan [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Shares available for future grant (in shares)	0	'
2010 Plan [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Shares available for future grant (in shares)	500,000	'
Restricted Stock [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted stock granted (in shares)	0	'

Income_Taxes_Details

Income Taxes (Details) (USD $)	6 Months Ended
	Jun. 28, 2014
Income Taxes [Abstract]	'
Repatriated amount from its foreign subsidiaries	$2,800,000
Increase in the effective tax rate (in hundredths)	2.40%
Significant changes to the amount of unrecognized tax benefits	$0
Period over which unrecognized tax benefits will not increase or decrease	'12 months

Financial_Instruments_and_Fair1

Financial Instruments and Fair Value Measurements (Details)	Jun. 28, 2014	Dec. 28, 2013
	Customer	Customer
Credit Risk [Abstract]	'	'
Number of customers that represented more than 10% of trade receivables	0	0
Term Loan [Member]	'	'
Interest Rate Risk [Abstract]	'	'
Fixed rate of interest (in hundredths)	4.98%	'
2012 Term Loan [Member]	'	'
Interest Rate Risk [Abstract]	'	'
Fixed rate of interest (in hundredths)	3.90%	'