The Eastern Company (EML) 10-Q 1 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Apr. 04, 2015	Apr. 28, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	EASTERN CO
Entity Central Index Key	31107
Current Fiscal Year End Date	-1
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		6,244,391
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	4-Apr-15

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Apr. 04, 2015	Jan. 03, 2015
Current Assets
Cash and cash equivalents	$14,135,291	$15,834,444
Accounts receivable, less allowances: $416,000 - 2015; $414,000 - 2014	19,261,425	17,064,245
Inventories	34,161,532	34,402,197
Prepaid expenses and other assets	2,791,034	2,659,737
Recoverable income taxes receivable	0	380,000
Deferred income taxes	950,024	950,024
Total Current Assets	71,299,306	71,290,647
Property, Plant and Equipment	63,506,975	62,970,497
Accumulated depreciation	-35,568,640	-34,919,067
Net Property, Plant and Equipment	27,938,335	28,051,430
Goodwill	14,796,385	14,960,354
Trademarks	174,662	174,662
Patents, technology and other intangibles net of accumulated amortization	2,398,441	2,498,570
Deferred income taxes	4,108,379	4,294,893
Total Other Assets	21,477,867	21,928,479
TOTAL ASSETS	120,715,508	121,270,556
Current Liabilities
Accounts payable	8,206,809	8,256,600
Accrued compensation	1,555,950	2,916,832
Other accrued expenses	2,151,947	1,201,114
Current portion of long-term debt	1,071,429	1,071,429
Total Current Liabilities	12,986,135	13,445,975
Other long-term liabilities	564,669	564,669
Long-term debt, less current portion	2,857,143	3,214,285
Accrued postretirement benefits	2,947,514	2,905,908
Accrued pension cost	26,445,275	26,164,812
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: 8,939,120 shares in 2015 and 8,938,742 shares in 2014	28,939,556	28,932,058
Treasury Stock: 2,694,729 shares in 2015 and 2014	-19,105,723	-19,105,723
Retained earnings	87,867,776	87,680,667
Accumulated other comprehensive income (loss):
Foreign currency translation	260,847	855,179
Unrecognized net pension and postretirement benefit costs, net of tax	-23,047,684	-23,387,274
Accumulated other comprehensive loss	-22,786,837	-22,532,095
Total Shareholders' Equity	74,914,772	74,974,907
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$120,715,508	$121,270,556

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)	Apr. 04, 2015	Jan. 03, 2015
Current Assets
Accounts receivable, allowances	$416,000	$414,000
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)	8,939,120	8,938,742
Treasury Stock, shares (in shares)	2,694,729	2,694,729

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract]
Net sales	$36,876,842	$35,849,126
Cost of products sold	-29,541,664	-28,335,720
Gross margin	7,335,178	7,513,406
Selling and administrative expenses	-5,963,695	-5,216,289
Operating profit	1,371,483	2,297,117
Interest expense	-52,825	-68,569
Other income	7,007	7,283
Income before income taxes	1,325,665	2,235,831
Income taxes	451,714	732,946
Net income	$873,951	$1,502,885
Earnings per share:
Basic (in dollars per share)	$0.14	$0.24
Diluted (in dollars per share)	$0.14	$0.24
Cash dividends per share: (in dollars per share)	$0.11	$0.11

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$873,951	$1,502,885
Other comprehensive (loss) income:
Change in foreign currency translation	-594,332	-366,529
Change in pension and postretirement benefit costs, net of taxes of: 2015 - $186,514 2014 - $100,350	339,590	184,330
Total other comprehensive (loss) income	-254,742	-182,199
Comprehensive income	$619,209	$1,320,686

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Other comprehensive (loss) income:
Change in pension and postretirement benefit costs, taxes	$186,514	$100,350

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Operating Activities
Net income	$873,951	$1,502,885
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization	959,857	823,320
Loss on sale of equipment and other assets	0	85,623
Provision for doubtful accounts	0	27,374
Issuance of Common Stock for directors' fees	7,498	7,490
Changes in operating assets and liabilities:
Accounts receivable	-2,317,994	-1,993,182
Inventories	33,403	299,770
Prepaid expenses and other	-140,975	-176,412
Prepaid pension cost	807,838	539,852
Recoverable taxes receivable	380,000	0
Other assets	57,208	-48,591
Accounts payable	-14,302	1,048,202
Accrued compensation	-1,349,334	-1,640,177
Other accrued expenses	1,029,720	-62,850
Net cash provided by operating activities	326,870	413,304
Investing Activities
Purchases of property, plant and equipment	-820,161	-690,041
Net cash used in investing activities	-820,161	-690,041
Financing Activities
Principal payments on long-term debt	-357,142	-357,142
Dividends paid	-686,841	-684,438
Net cash used in financing activities	-1,043,983	-1,041,580
Effect of exchange rate changes on cash	-161,879	-151,708
Net change in cash and cash equivalents	-1,699,153	-1,470,025
Cash and cash equivalents at beginning of period	15,834,444	19,988,361
Cash and cash equivalents at end of period	$14,135,291	$18,518,336

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Apr. 04, 2015
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 January 3, 2015 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 January 3, 2015 has been derived from the audited consolidated balance sheet at that date.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Apr. 04, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Note B – Earnings Per Share
	The denominators used in the earnings per share computations follow:
		Three Months Ended
		4-Apr-15	29-Mar-14
	Basic:
	Weighted average shares outstanding	6,244,088	6,222,213
	Diluted:
	Weighted average shares outstanding	6,244,088	6,222,213
	Dilutive stock options	-	16,936
	Denominator for diluted earnings per share	6,244,088	6,239,149

Inventories

Inventories	3 Months Ended
	Apr. 04, 2015
Inventories [Abstract]
Inventories	Note C – Inventories
	The components of inventories follow:
		4-Apr-15	3-Jan-15
	Raw material and component parts	$   9,155,290	$    9,219,341
	Work in process	7,037,276	7,074,950
	Finished goods	17,968,966	18,107,906
		$34,161,532	$  34,402,197

Segment_Information

Segment Information	3 Months Ended
	Apr. 04, 2015
Segment Information [Abstract]
Segment Information	Note D – Segment Information
	Segment financial information follows:
		Three Months Ended
		4-Apr-15			29-Mar-14
	Revenues:
	Sales to unaffiliated customers:
	Industrial Hardware	$	14,786,666		$	14,130,751
	Security Products		14,100,916			12,547,036
	Metal Products		7,989,260			9,171,339
		$	36,876,842		$	35,849,126
	Income before income taxes:
	Industrial Hardware	$	731,545		$	1,095,834
	Security Products		786,291			555,287
	Metal Products		(146,353	)		645,996
	Operating Profit		1,371,483			2,297,117
	Interest expense		(52,825	)		(68,569	)
	Other income		7,007			7,283
	Income before income taxes	$	1,325,665		$	2,235,831

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Apr. 04, 2015
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note E – Recent Accounting Pronouncements
	In April 2015, the FASB issued authoritative guidance which simplifies the presentation of debt issuance costs. The amendments in this accounting standard update require debt issuance costs be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability.  The amendments in this accounting standard update are to be applied retrospectively and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  The adoption of the new guidance is not expected to have a material impact on the consolidated financial statements of the Company.
	In February 2015, the FASB issued authoritative guidance which amends certain requirements for determining whether a variable interest entity must be consolidated.  The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  The adoption of the new guidance is not expected to have a material impact on the consolidated financial statements of the Company.
	In January 2015, the FASB issued authoritative guidance that modifies reporting of extraordinary items in the income statement.  The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  The adoption of the new guidance is not expected to have a material impact 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	3 Months Ended
	Apr. 04, 2015
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 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 United Bank (“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 required 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.  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 2014 and for the three month period ended April 4, 2015.

Goodwill

Goodwill	3 Months Ended
	Apr. 04, 2015
Goodwill [Abstract]
Goodwill	Note G – Goodwill
	The following is a roll-forward of goodwill from year-end 2014 to the end of the first quarter 2015:
		Industrial			Security		Metal
		Hardware			Products		Products
		Segment			Segment		Segment		Total
	Beginning balance	$	1,901,312		$	13,059,042	$	—	$	14,960,354
	Foreign exchange		(163,969	)		—		—		(163,969	)
	Ending balance	$	1,737,343		$	13,059,042	$	—	$	14,796,385

Intangibles

Intangibles	3 Months Ended
	Apr. 04, 2015
Intangibles [Abstract]
Intangibles	Note H – Intangibles
	The gross carrying amount and accumulated amortization of amortizable intangible assets:
		Industrial Hardware Segment		Security Products Segment		Metal Products Segment			Total	Weighted-Average Amortization Period (Years)
	2015 Gross Amount
	Patents and developed technology	$	2,431,010	$	1,029,423	$	--	$	3,460,433	15.7
	Customer relationships		--		449,706		--		449,706	5
	Non-compete agreements		--		407,000		--		407,000	5
	Intellectual property		--		307,370		--		307,370	5
	Total Gross Intangibles	$	2,431,010	$	2,193,499	$	--	$	4,624,509	12.7
	2015 Accumulated Amortization
	Patents and developed technology	$	1,617,196	$	550,668	$	--	$	2,167,864
	Customer relationships		--		22,485		--		22,485
	Non-compete agreements		--		20,350		--		20,350
	Intellectual property		--		15,369		--		15,369
	Accumulated Amortization	$	1,617,196	$	608,872	$	--	$	2,226,068
	Net April 4, 2015 per Balance Sheet	$	813,814	$	1,584,627	$	--	$	2,398,441
	2014 Gross Amount
	Patents and developed technology	$	2,494,261	$	1,025,303	$	--	$	3,519,564	15.7
	Customer relationships		--		449,706		--		449,706	5
	Non-compete agreements		--		407,000		--		407,000	5
	Intellectual property		--		307,370		--		307,370	5
	Total Gross Intangibles	$	2,294,261	$	2,189,379	$	--	$	4,683,640	12.7
	2014 Accumulated Amortization
	Patents and developed technology	$	1,649,655	$	535,415	$	--	$	2,185,070
	Customer relationships		--		--		--		--
	Non-compete agreements		--		--		--		--
	Intellectual property		--		--		--		--
	Accumulated Amortization	$	1,649,655	$	535,415	$	--	$	2,185,070
	Net January 3, 2015 per Balance Sheet	$	844,606	$	1,653,964	$	--	$	2,498,570

Retirement_Benefit_Plans

Retirement Benefit Plans	3 Months Ended
	Apr. 04, 2015
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 first quarter of fiscal 2015 and 2014 follow:
		Pension Benefits						Postretirement Benefits
		Three Months Ended							Three Months Ended
		April 4,			March 29,				April 4,			March 29,
		2015			2014				2015			2014
	Service cost	$	964,987		$	698,424			$	54,393		$	42,000
	Interest cost		859,259			829,299				38,729			40,250
	Expected return on plan assets		(1,287,914	)		(1,202,632	)			(22,984	)		(22,250	)
	Amortization of prior service cost		54,647			54,647				(5,972	)		(6,000	)
	Amortization of the net loss		472,728			236,033				4,701			--
	Net periodic benefit cost	$	1,063,707		$	615,771			$	68,867		$	54,000
	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 2015, the Company expects to contribute $3.0 million into its pension plans and $150,000 into its postretirement plan. As of April 4, 2015, the Company has made contributions totaling approximately $0 into its pension plans and $32,000 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 $52,266 and $52,491 in the first quarter of 2015 and 2014, respectively.

Stock_Based_Compensation_and_S

Stock Based Compensation and Stock Options	3 Months Ended
	Apr. 04, 2015
Stock Based Compensation and Stock Options [Abstract]
Stock Based Compensation and Stock Options	Note J – Stock Based Compensation and Stock Options
	The Company has a stock option plan for officers, other key employees, and non-employee directors. As of April 4, 2015 the 2010 plan had 500,000 shares reserved for future grant and issuance.  Incentive stock options granted under the 2010 plan 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 2010 plan, 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 quarter of 2015 or 2014.
	At April 4, 2015, there were no outstanding or exercisable options.

Income_Taxes

Income Taxes	3 Months Ended
	Apr. 04, 2015
Income Tax [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 2011 and non-U.S. income tax examinations by tax authorities prior to 2009.
	The Company repatriated approximately $1.2 million and $1.1 million in cash from its foreign subsidiaries in the first three months of 2015 and 2014, respectively.  The impact on the effective tax rate was less than 1% in either period.
	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 three months ended April 4, 2015.  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	3 Months Ended
	Apr. 04, 2015
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 April 4, 2015 and January 3, 2015, there were no significant concentrations of credit risk. No one customer represented more than 10% of the Company’s net trade receivables at April 4, 2015 or at January 3, 2015.  The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable.
	Interest Rate Risk
	On April 4, 2015, 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 April 4, 2015 or January 3, 2015.

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Apr. 04, 2015
Earnings Per Share [Abstract]
Denominators used in the earnings per share computations	The denominators used in the earnings per share computations follow:
		Three Months Ended
		4-Apr-15	29-Mar-14
	Basic:
	Weighted average shares outstanding	6,244,088	6,222,213
	Diluted:
	Weighted average shares outstanding	6,244,088	6,222,213
	Dilutive stock options	-	16,936
	Denominator for diluted earnings per share	6,244,088	6,239,149

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Apr. 04, 2015
Inventories [Abstract]
Components of inventories	The components of inventories follow:
		4-Apr-15	3-Jan-15
	Raw material and component parts	$   9,155,290	$    9,219,341
	Work in process	7,037,276	7,074,950
	Finished goods	17,968,966	18,107,906
		$34,161,532	$  34,402,197

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Apr. 04, 2015
Segment Information [Abstract]
Segment financial information	Segment financial information follows:
		Three Months Ended
		4-Apr-15			29-Mar-14
	Revenues:
	Sales to unaffiliated customers:
	Industrial Hardware	$	14,786,666		$	14,130,751
	Security Products		14,100,916			12,547,036
	Metal Products		7,989,260			9,171,339
		$	36,876,842		$	35,849,126
	Income before income taxes:
	Industrial Hardware	$	731,545		$	1,095,834
	Security Products		786,291			555,287
	Metal Products		(146,353	)		645,996
	Operating Profit		1,371,483			2,297,117
	Interest expense		(52,825	)		(68,569	)
	Other income		7,007			7,283
	Income before income taxes	$	1,325,665		$	2,235,831

Goodwill_Tables

Goodwill (Tables)	3 Months Ended
	Apr. 04, 2015
Goodwill [Abstract]
Roll-forward of goodwill	The following is a roll-forward of goodwill from year-end 2014 to the end of the first quarter 2015:
		Industrial			Security		Metal
		Hardware			Products		Products
		Segment			Segment		Segment		Total
	Beginning balance	$	1,901,312		$	13,059,042	$	—	$	14,960,354
	Foreign exchange		(163,969	)		—		—		(163,969	)
	Ending balance	$	1,737,343		$	13,059,042	$	—	$	14,796,385

Intangibles_Tables

Intangibles (Tables)	3 Months Ended
	Apr. 04, 2015
Intangibles [Abstract]
Gross carrying amount and accumulated amortization of amortizable intangible assets	The gross carrying amount and accumulated amortization of amortizable intangible assets:
		Industrial Hardware Segment		Security Products Segment		Metal Products Segment			Total	Weighted-Average Amortization Period (Years)
	2015 Gross Amount
	Patents and developed technology	$	2,431,010	$	1,029,423	$	--	$	3,460,433	15.7
	Customer relationships		--		449,706		--		449,706	5
	Non-compete agreements		--		407,000		--		407,000	5
	Intellectual property		--		307,370		--		307,370	5
	Total Gross Intangibles	$	2,431,010	$	2,193,499	$	--	$	4,624,509	12.7
	2015 Accumulated Amortization
	Patents and developed technology	$	1,617,196	$	550,668	$	--	$	2,167,864
	Customer relationships		--		22,485		--		22,485
	Non-compete agreements		--		20,350		--		20,350
	Intellectual property		--		15,369		--		15,369
	Accumulated Amortization	$	1,617,196	$	608,872	$	--	$	2,226,068
	Net April 4, 2015 per Balance Sheet	$	813,814	$	1,584,627	$	--	$	2,398,441
	2014 Gross Amount
	Patents and developed technology	$	2,494,261	$	1,025,303	$	--	$	3,519,564	15.7
	Customer relationships		--		449,706		--		449,706	5
	Non-compete agreements		--		407,000		--		407,000	5
	Intellectual property		--		307,370		--		307,370	5
	Total Gross Intangibles	$	2,294,261	$	2,189,379	$	--	$	4,683,640	12.7
	2014 Accumulated Amortization
	Patents and developed technology	$	1,649,655	$	535,415	$	--	$	2,185,070
	Customer relationships		--		--		--		--
	Non-compete agreements		--		--		--		--
	Intellectual property		--		--		--		--
	Accumulated Amortization	$	1,649,655	$	535,415	$	--	$	2,185,070
	Net January 3, 2015 per Balance Sheet	$	844,606	$	1,653,964	$	--	$	2,498,570

Retirement_Benefit_Plans_Table

Retirement Benefit Plans (Tables)	3 Months Ended
	Apr. 04, 2015
Retirement Benefit Plans [Abstract]
Significant disclosures relating to benefit plans	Significant disclosures relating to these benefit plans for the first quarter of fiscal 2015 and 2014 follow:
		Pension Benefits						Postretirement Benefits
		Three Months Ended							Three Months Ended
		April 4,			March 29,				April 4,			March 29,
		2015			2014				2015			2014
	Service cost	$	964,987		$	698,424			$	54,393		$	42,000
	Interest cost		859,259			829,299				38,729			40,250
	Expected return on plan assets		(1,287,914	)		(1,202,632	)			(22,984	)		(22,250	)
	Amortization of prior service cost		54,647			54,647				(5,972	)		(6,000	)
	Amortization of the net loss		472,728			236,033				4,701			--
	Net periodic benefit cost	$	1,063,707		$	615,771			$	68,867		$	54,000

Earnings_Per_Share_Details

Earnings Per Share (Details)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Basic [Abstract]
Weighted average shares outstanding (in shares)	6,244,088	6,222,213
Diluted [Abstract]
Weighted average shares outstanding (in shares)	6,244,088	6,222,213
Dilutive stock options (in shares)	0	16,936
Denominator for diluted earnings per share (in shares)	6,244,088	6,239,149

Inventories_Details

Inventories (Details) (USD $)	Apr. 04, 2015	Jan. 03, 2015
Components of inventories [Abstract]
Raw material and component parts	$9,155,290	$9,219,341
Work in process	7,037,276	7,074,950
Finished goods	17,968,966	18,107,906
Inventories	$34,161,532	$34,402,197

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Segment Reporting Information [Line Items]
Revenues, sales to unaffiliated customers	$36,876,842	$35,849,126
Operating Profit	1,371,483	2,297,117
Interest expense	-52,825	-68,569
Other income	7,007	7,283
Income before income taxes	1,325,665	2,235,831
Industrial Hardware [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues, sales to unaffiliated customers	14,786,666	14,130,751
Operating Profit	731,545	1,095,834
Security Products [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues, sales to unaffiliated customers	14,100,916	12,547,036
Operating Profit	786,291	555,287
Metal Products [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues, sales to unaffiliated customers	7,989,260	9,171,339
Operating Profit	($146,353)	$645,996

Debt_Details

Debt (Details) (USD $)	0 Months Ended		3 Months Ended
	Jan. 25, 2012	Jan. 29, 2010	Apr. 04, 2015	Jan. 01, 2011
Debt Instrument [Line Items]
Minimum tangible net worth			55,000,000	$43,000,000
Tangible net worth (in hundredths)				50.00%
Revolving Credit Line [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		10,000,000
Maturity date of loan		31-Jan-14	1-Jul-16
Description of variable rate basis	LIBOR rate or People's Prime rate		LIBOR
Basis spread on variable rate (in hundredths)	2.25%		2.25%
Floor rate of loan (in hundredths)	3.25%
Loan Agreement [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio as multiple, minimum			1.1
Leverage ratio as multiple, maximum			1.75
Term Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		5,000,000
Fixed rate of interest (in hundredths)			4.98%
2012 Term Loan [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	5,000,000
Fixed rate of interest (in hundredths)			3.90%

Goodwill_Details

Goodwill (Details) (USD $)	3 Months Ended
	Apr. 04, 2015
Goodwill [Roll Forward]
Beginning balance	$14,960,354
Foreign exchange	-163,969
Ending balance	14,796,385
Industrial Hardware Segment [Member]
Goodwill [Roll Forward]
Beginning balance	1,901,312
Foreign exchange	-163,969
Ending balance	1,737,343
Security Products Segment [Member]
Goodwill [Roll Forward]
Beginning balance	13,059,042
Foreign exchange	0
Ending balance	13,059,042
Metal Products Segment [Member]
Goodwill [Roll Forward]
Beginning balance	0
Foreign exchange	0
Ending balance	$0

Intangibles_Details

Intangibles (Details) (USD $)	3 Months Ended	12 Months Ended
	Apr. 04, 2015	Jan. 03, 2015
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	$4,624,509	$4,683,640
Accumulated Amortization	2,226,068	2,185,070
Net as per Balance Sheet	2,398,441	2,498,570
Weighted Average Amortization Period	12 years 8 months 12 days	12 years 8 months 12 days
Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	2,431,010	2,294,261
Accumulated Amortization	1,617,196	1,649,655
Net as per Balance Sheet	813,814	844,606
Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	2,193,499	2,189,379
Accumulated Amortization	608,872	535,415
Net as per Balance Sheet	1,584,627	1,653,964
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
Patents and developed technology [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	3,460,433	3,519,564
Accumulated Amortization	2,167,864	2,185,070
Weighted Average Amortization Period	15 years 8 months 12 days	15 years 8 months 12 days
Patents and developed technology [Member] | Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	2,431,010	2,494,261
Accumulated Amortization	1,617,196	1,649,655
Patents and developed technology [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	1,029,423	1,025,303
Accumulated Amortization	550,668	535,415
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
Customer relationships [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	449,706	449,706
Accumulated Amortization	22,485	0
Weighted Average Amortization Period	5 years	5 years
Customer relationships [Member] | Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	0	0
Customer relationships [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	449,706	449,706
Accumulated Amortization	22,485	0
Customer relationships [Member] | Metal Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	0	0
Non-compete agreements [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	407,000	407,000
Accumulated Amortization	20,350	0
Weighted Average Amortization Period	5 years	5 years
Non-compete agreements [Member] | Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	0	0
Non-compete agreements [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	407,000	407,000
Accumulated Amortization	20,350	0
Non-compete agreements [Member] | Metal Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	0	0
Intellectual property [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	307,370	307,370
Accumulated Amortization	15,369	0
Weighted Average Amortization Period	5 years	5 years
Intellectual property [Member] | Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	0	0
Intellectual property [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	307,370	307,370
Accumulated Amortization	15,369	0
Intellectual property [Member] | Metal Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	$0	$0

Retirement_Benefit_Plans_Detai

Retirement Benefit Plans (Details) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
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)	$52,266	$52,491
Pension Benefits [Member]
Significant disclosures relating to benefit plans [Abstract]
Service cost	964,987	698,424
Interest cost	859,259	829,299
Expected return on plan assets	-1,287,914	-1,202,632
Amortization of prior service cost	54,647	54,647
Amortization of the net loss	472,728	236,033
Net periodic benefit cost	1,063,707	615,771
Contributions required by the Company in defined benefit plan in 2015	3,000,000
Contributions made by Company	0
Postretirement Benefits [Member]
Significant disclosures relating to benefit plans [Abstract]
Service cost	54,393	42,000
Interest cost	38,729	40,250
Expected return on plan assets	-22,984	-22,250
Amortization of prior service cost	-5,972	-6,000
Amortization of the net loss	4,701	0
Net periodic benefit cost	68,867	54,000
Contributions required by the Company in defined benefit plan in 2015	150,000
Contributions made by Company	$32,000

Stock_Based_Compensation_and_S1

Stock Based Compensation and Stock Options (Details)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	0	0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value of stock on grant date for exercise price, minimum (in hundredths)	100.00%
Options granted (in shares)	0
Outstanding at end of period (in shares)	0
Options exercisable (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

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Income Tax Examination [Line Items]
Repatriated amount from its foreign subsidiaries	$1,200,000	$1,100,000
Significant changes to the amount of unrecognized tax benefits	$0	$0
Maximum [Member]
Income Tax Examination [Line Items]
Impact on the effective tax rate (in hundredths)	1.00%	1.00%

Financial_Instruments_and_Fair1

Financial Instruments and Fair Value Measurements (Details)	Apr. 04, 2015	Jan. 03, 2015
	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%