Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 07, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'DYNAMIC MATERIALS CORP | ' | ' |
Entity Central Index Key | '0000034067 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,934,094 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $215,127,331 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $10,617 | $8,200 |
Accounts receivable, net of allowance for doubtful accounts of $419 and $406, respectively | 38,715 | 36,981 |
Inventory, net | 41,550 | 48,320 |
Prepaid expenses and other | 4,375 | 4,469 |
Current deferred tax assets | 3,507 | 2,074 |
Total current assets | 98,764 | 100,044 |
PROPERTY, PLANT AND EQUIPMENT | 107,802 | 90,621 |
Less - accumulated depreciation | -42,787 | -36,645 |
Property, plant and equipment, net | 65,015 | 53,976 |
GOODWILL, net | 37,970 | 37,431 |
PURCHASED INTANGIBLE ASSETS, net | 36,458 | 41,958 |
DEFERRED TAX ASSETS | 505 | 804 |
OTHER ASSETS, net | 1,900 | 1,218 |
TOTAL ASSETS | 240,612 | 235,431 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 14,668 | 11,281 |
Accrued expenses | 3,966 | 4,564 |
Dividend payable | 550 | 540 |
Accrued income taxes | 2,811 | 406 |
Accrued employee compensation and benefits | 4,806 | 4,977 |
Customer advances | 1,025 | 1,363 |
Current debt obligations | 2,907 | 1,046 |
Current portion of capital lease obligations | 24 | 52 |
Current deferred tax liabilities | 435 | 149 |
Total current liabilities | 31,192 | 24,378 |
LINES OF CREDIT | 26,400 | 37,779 |
LONG-TERM DEBT | 0 | 55 |
CAPITAL LEASE OBLIGATIONS | 8 | 19 |
DEFERRED TAX LIABILITIES | 8,347 | 9,211 |
OTHER LONG-TERM LIABILITIES | 1,873 | 1,433 |
Total liabilities | 67,820 | 72,875 |
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8) | ' | ' |
STOCKHOLDERS’ EQUITY: | ' | ' |
Preferred stock, $0.05 par value; 4,000,000 shares authorized; no issued and outstanding shares | 0 | 0 |
Common stock, $0.05 par value; 25,000,000 shares authorized; 13,772,324 and 13,519,555 shares issued and outstanding, respectively | 689 | 676 |
Additional paid-in capital | 62,934 | 60,158 |
Retained earnings | 113,399 | 108,101 |
Other cumulative comprehensive loss | -4,230 | -6,463 |
Total Dynamic Materials Corporation’s stockholders’ equity | 172,792 | 162,472 |
Non-controlling interest | 0 | 84 |
Total stockholders’ equity | 172,792 | 162,556 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $240,612 | $235,431 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $419 | $406 |
Preferred stock, par value (in dollars per share) | $0.05 | $0.05 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.05 | $0.05 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 13,772,324 | 13,519,555 |
Common stock, shares outstanding | 13,772,324 | 13,519,555 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
NET SALES | $209,573 | $201,567 | $208,891 |
COST OF PRODUCTS SOLD | 150,059 | 141,859 | 153,445 |
Gross profit | 59,514 | 59,708 | 55,446 |
COSTS AND EXPENSES: | ' | ' | ' |
General and administrative expenses | 25,273 | 19,141 | 16,711 |
Selling and distribution expenses | 16,196 | 16,954 | 14,809 |
Amortization of purchased intangible assets | 6,348 | 6,210 | 5,707 |
Total costs and expenses | 47,817 | 42,305 | 37,227 |
INCOME FROM OPERATIONS | 11,697 | 17,403 | 18,219 |
OTHER INCOME (EXPENSE): | ' | ' | ' |
Other income (expense), net | -528 | -32 | 528 |
Interest expense | -648 | -832 | -1,945 |
Interest income | 7 | 13 | 8 |
INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST | 10,528 | 16,552 | 16,810 |
INCOME TAX PROVISION | 2,941 | 4,858 | 4,369 |
NET INCOME | 7,587 | 11,694 | 12,441 |
Less: Net income (loss) attributable to non-controlling interest | 92 | -2 | -50 |
NET INCOME ATTRIBUTABLE TO DYNAMIC MATERIALS CORPORATION | $7,495 | $11,696 | $12,491 |
INCOME PER SHARE: | ' | ' | ' |
Basic (in dollars per share) | $0.55 | $0.87 | $0.94 |
Diluted (in dollars per share) | $0.54 | $0.87 | $0.93 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ' | ' | ' |
Basic (in shares) | 13,533,566 | 13,264,636 | 13,089,691 |
Diluted (in shares) | 13,537,525 | 13,268,713 | 13,099,121 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.16 | $0.16 | $0.16 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income including non-controlling interest | $7,587 | $11,694 | $12,441 |
Change in cumulative foreign currency translation adjustment | 2,237 | 2,796 | -2,927 |
Total comprehensive income | 9,824 | 14,490 | 9,514 |
Comprehensive income (loss) attributable to non-controlling interest | 96 | 1 | -119 |
Comprehensive income attributable to Dynamic Materials Corporation | $9,728 | $14,489 | $9,633 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Cumulative Comprehensive Loss | Non-Controlling Interest |
In Thousands, except Share data, unless otherwise specified | ||||||
Balances at Dec. 31, 2010 | $135,084 | $661 | $52,451 | $88,210 | ($6,398) | $160 |
Balances (in shares) at Dec. 31, 2010 | ' | 13,224,696 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 12,441 | ' | ' | 12,491 | ' | -50 |
Change in cumulative foreign currency translation adjustment | -2,927 | ' | ' | ' | -2,858 | -69 |
Shares issued in connection with stock compensation plans | 177 | 7 | 170 | ' | ' | ' |
Shares issued in connection with stock compensation plans (in shares) | ' | 142,473 | ' | ' | ' | ' |
Tax impact of stock-based compensation | -35 | ' | -35 | ' | ' | ' |
Stock-based compensation | 3,397 | ' | 3,397 | ' | ' | ' |
Dividends declared | -2,136 | ' | ' | -2,136 | ' | ' |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 42 | ' | ' | ' | ' | 42 |
Balances at Dec. 31, 2011 | 146,043 | 668 | 55,983 | 98,565 | -9,256 | 83 |
Balances (in shares) at Dec. 31, 2011 | ' | 13,367,169 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 11,694 | ' | ' | 11,696 | ' | -2 |
Change in cumulative foreign currency translation adjustment | 2,796 | ' | ' | ' | 2,793 | 3 |
Shares issued in connection with stock compensation plans | 193 | 8 | 185 | ' | ' | ' |
Shares issued in connection with stock compensation plans (in shares) | ' | 152,386 | ' | ' | ' | ' |
Tax impact of stock-based compensation | -453 | ' | -453 | ' | ' | ' |
Stock-based compensation | 4,443 | ' | 4,443 | ' | ' | ' |
Dividends declared | -2,160 | ' | ' | -2,160 | ' | ' |
Balances at Dec. 31, 2012 | 162,556 | 676 | 60,158 | 108,101 | -6,463 | 84 |
Balances (in shares) at Dec. 31, 2012 | 13,519,555 | 13,519,555 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 7,587 | ' | ' | 7,495 | ' | 92 |
Change in cumulative foreign currency translation adjustment | 2,237 | ' | ' | ' | 2,233 | 4 |
Shares issued in connection with stock compensation plans | 295 | 13 | 282 | ' | ' | ' |
Shares issued in connection with stock compensation plans (in shares) | ' | 252,769 | ' | ' | ' | ' |
Tax impact of stock-based compensation | -907 | ' | -907 | ' | ' | ' |
Stock-based compensation | 3,401 | ' | 3,401 | ' | ' | ' |
Dividends declared | -2,197 | ' | ' | -2,197 | ' | ' |
Acquisition of minority interest | -180 | ' | ' | ' | ' | -180 |
Balances at Dec. 31, 2013 | $172,792 | $689 | $62,934 | $113,399 | ($4,230) | $0 |
Balances (in shares) at Dec. 31, 2013 | 13,772,324 | 13,772,324 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $7,587 | $11,694 | $12,441 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation (including capital lease amortization) | 6,547 | 5,537 | 5,492 |
Amortization of purchased intangible assets | 6,348 | 6,210 | 5,707 |
Amortization of deferred debt issuance costs | 102 | 124 | 649 |
Stock-based compensation | 3,401 | 4,443 | 3,397 |
Deferred income tax benefit | -1,767 | -1,267 | -1,587 |
Loss on disposal of property, plant and equipment | 50 | 0 | 35 |
Loss on impaired assets | 756 | 0 | 0 |
Change in: | ' | ' | ' |
Accounts receivable, net | -1,382 | 560 | -9,551 |
Inventory, net | 6,693 | -2,342 | -8,392 |
Prepaid expenses and other | 93 | 461 | -1,346 |
Accounts payable | 2,235 | -3,618 | -1,035 |
Customer advances | -365 | -578 | 465 |
Accrued expenses and other liabilities | 1,754 | -644 | 3,451 |
Net cash provided by operating activities | 32,052 | 20,580 | 9,726 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Acquisition of property, plant and equipment | -17,565 | -15,647 | -7,726 |
Acquisition of TRX Industries | 0 | -10,294 | 0 |
Acquisition of minority interest | -180 | 0 | 0 |
Change in other non-current assets | -494 | -224 | -5 |
Net cash used in investing activities | -18,239 | -26,165 | -7,731 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Payment on syndicated term loans | 0 | 0 | -22,247 |
Borrowings (repayments) on bank lines of credit, net | -9,592 | 12,174 | 24,191 |
Payment on loans with former owners of LRI | -63 | -1,176 | -36 |
Payment on Nord LB term loans | 0 | 0 | -627 |
Payment on capital lease obligations | -40 | -66 | -295 |
Payment of dividends | -2,187 | -2,155 | -2,130 |
Payment of deferred debt issuance costs | 0 | 0 | -435 |
Other | 295 | -260 | 184 |
Net cash provided by (used in) financing activities | -11,587 | 8,517 | -1,395 |
EFFECTS OF EXCHANGE RATES ON CASH | 191 | -8 | 104 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,417 | 2,924 | 704 |
CASH AND CASH EQUIVALENTS, beginning of the period | 8,200 | 5,276 | 4,572 |
CASH AND CASH EQUIVALENTS, end of the period | 10,617 | 8,200 | 5,276 |
Cash paid during the period for - | ' | ' | ' |
Interest | 631 | 746 | 1,280 |
Income taxes, net | $1,938 | $7,395 | $5,847 |
ORGANIZATION_AND_BUSINESS
ORGANIZATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION AND BUSINESS | ' |
ORGANIZATION AND BUSINESS | |
Dynamic Materials Corporation (“DMC”) was incorporated in the state of Colorado in 1971 and reincorporated in the state of Delaware during 1997. DMC is headquartered in Boulder, Colorado and has manufacturing facilities in the United States, Germany, France, Canada and Russia. Customers are located throughout the world. DMC currently operates under three business segments. We recently branded our Explosive Metalworking operations under the single name NobelClad. Our NobelClad segment is comprised of our U.S. Clad operations as well as the assets and operations purchased in the Nobelclad Europe S.A. (“Nobelclad France”) and Dynaplat GmbH and Co. KG (“Dynaplat”) acquisitions. The NobelClad segment metallurgically joins or alters metals by using explosives. We recently branded our Oilfield Products segment as DynaEnergetics, which is comprised entirely of DYNAenergetics GmbH and Co. KG (“DYNAenergetics”), its subsidiaries and sister companies. DynaEnergetics manufactures, markets, and sells oil field perforating equipment and explosives. Our third segment, formerly AMK Welding, was branded as AMK Technical Services and utilizes a number of welding technologies to weld components for manufacturers of jet engines, ground-based turbines and oilfield equipment. | |
2012 Acquisition | |
On January 3, 2012, we acquired the assets and operating business of Texas-based TRX Industries, Inc. (“TRX”), a manufacturer of perforating guns for our DynaEnergetics segment. TRX, which has now been integrated into DYNAenergetics US, had been a long-term supplier to DYNAenergetics US and, in recent years, accounted for a rapidly growing percentage of its perforating gun purchases. Our statements of operations include the effect of the TRX acquisition from the January 3, 2012 closing date. See Note 3 for additional disclosures regarding this acquisition. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Principles of Consolidation | ||||||||||||
The condensed consolidated financial statements include the accounts of DMC and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||||||||||||
Foreign Operations and Foreign Exchange Rate Risk | ||||||||||||
The functional currency for our foreign operations is the applicable local currency for each affiliate company. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated at exchange rates in effect at period-end, and the statements of operations are translated at the average exchange rates during the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are recorded as a separate component of stockholders’ equity and are included in other cumulative comprehensive income (loss). Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in income as unrealized (based on period-end translations) or realized upon settlement of the transactions. Cash flows from our operations in foreign countries are translated at actual exchange rates when known, or at the average rate for the period. As a result, amounts related to assets and liabilities reported in the consolidated statements of cash flows will not agree to changes in the corresponding balances in the consolidated balance sheets. The effects of exchange rate changes on cash balances held in foreign currencies are reported as a separate line item below cash flows from financing activities. | ||||||||||||
In September 2010, our German subsidiary, DYNAenergetics, entered into a currency swap agreement with its bank to economically hedge the currency risk associated with a large U.S. dollar order ($2,700) that was awarded to it. Under the agreement, DYNAenergetics agreed to exchange $2,700 for Euros at an exchange rate of 1.269 U.S. dollars per Euros between January 18, 2011 and April 30, 2011. We did not designate this derivative as a cash flow hedge for accounting purposes and as such, gains and losses related to changes in its valuation were recorded in the statement of operations. During the year ended December 31, 2011 we recorded gains on this currency swap agreement of $87. These gains are classified as other income (expense), net in our statement of operations. | ||||||||||||
In September 2011, DYNAenergetics entered into a new currency hedge agreement with its bank to hedge its risk on a new $2,500 order which is similar to the order described above. This hedge agreement, which was amended in December 2011, allowed DYNAenergetics to sell $2,500 for Euros at an exchange rate of 1.425 U.S. dollars per Euros if the market rate was under 1.25 or above 1.425 at the time of settlement. If the market rate upon settlement was between 1.25 and 1.425, the market rate would be used. The only exception to this would have been if the market exchange rate dropped below 1.25 any time prior to the settlement in which case the rate upon settlement would have been 1.425 even if the exchange rate subsequently rose back above 1.25 prior to settlement. As the market rate never went below 1.25 nor exceeded 1.425 at the time of settlement, the market rate was used at settlement. This hedge agreement expired on May 3, 2012. We did not designate this derivative as a cash flow hedge for accounting purposes and as such, gains and losses related to changes in its valuation were recorded in the statement of operations. | ||||||||||||
Cash and Cash Equivalents and Restricted Cash | ||||||||||||
For purposes of the consolidated financial statements, we consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||||
Accounts Receivable | ||||||||||||
We review our accounts receivable balance routinely to identify any specific customers with collectability issues. In circumstances where we are aware of a specific customer’s inability to meets its financial obligation to us, we record a specific allowance for doubtful accounts (with the offsetting expense charged to our statement of operations) against the amounts due reducing the net recognized receivable to the amount we estimate will be collected. | ||||||||||||
Inventories | ||||||||||||
Inventories are stated at the lower-of-cost (first-in, first-out) or market value. Cost elements included in inventory are material, labor, subcontract costs, and manufacturing overhead. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine reserve amounts, we regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. | ||||||||||||
Comprehensive reviews of DynaEnergetics' inventories were performed throughout 2013 to identify potentially excess, slow moving and obsolete inventory items. These reviews reflected management's efforts to reduce overall inventory levels and rationalize product line offerings. Additionally, our estimate for reserving, or writing-off, inventory changed from a combination of qualitative and quantitative considerations to a more specific quantitative analysis whereby inventory items which have not had sales for a certain duration are written-off after a prescribed period. | ||||||||||||
In 2013 we changed our inventory management philosophy and intend to aggressively reduce our investment in inventory. In connection with this philosophy, we identified certain inventories that we intend to liquidate and therefore revised our assumptions for calculating estimated inventory reserves, resulting in a change in estimate. We determined that our December 31, 2013 inventory reserves for our DynaEnergetics business segment should be increased by $1,800 to adequately provide for estimated requirements and recorded corresponding expense of $1,800 ($1,218, net of tax) in cost of products sold in our 2013 consolidated statement of operations. The impact of this change in estimate reduced earnings per share by $0.09 per share (basic and diluted) for the year ended December 31, 2013. | ||||||||||||
Inventories, net of reserves of $1,729 and $337 and most of which related to finished goods, consist of the following at December 31, 2013 and 2012 respectively: | ||||||||||||
2013 | 2012 | |||||||||||
Raw materials | $ | 13,122 | $ | 16,079 | ||||||||
Work-in-process | 10,188 | 12,133 | ||||||||||
Finished goods | 17,273 | 19,155 | ||||||||||
Supplies | 967 | 953 | ||||||||||
$ | 41,550 | $ | 48,320 | |||||||||
Shipping and handling costs incurred by us upon shipment to customers are included in cost of products sold in the accompanying consolidated statements of operations. | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are recorded at cost, except for assets acquired in acquisitions which are recorded at fair value. Additions, improvements, and betterments are capitalized. Maintenance and repairs are charged to operations as the costs are incurred. Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: | ||||||||||||
Buildings and improvements | 15-30 years | |||||||||||
Manufacturing equipment and tooling | 3-15 years | |||||||||||
Furniture, fixtures, and computer equipment | 3-10 years | |||||||||||
Other | 3-10 years | |||||||||||
Property, plant and equipment consist of the following at December 31, 2013 and 2012: | ||||||||||||
2013 | 2012 | |||||||||||
Land | $ | 2,864 | $ | 2,792 | ||||||||
Buildings and improvements | 34,147 | 24,203 | ||||||||||
Manufacturing equipment and tooling | 44,286 | 39,073 | ||||||||||
Furniture, fixtures and computer equipment | 14,254 | 7,148 | ||||||||||
Other | 4,948 | 3,534 | ||||||||||
Construction in process | $ | 7,303 | $ | 13,871 | ||||||||
$ | 107,802 | $ | 90,621 | |||||||||
Asset Impairments | ||||||||||||
Finite-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We compare the expected undiscounted future operating cash flows associated with these finite-lived assets to their respective carrying values to determine if they are fully recoverable. If the expected future operating cash flows of an asset are not sufficient to recover the carrying value, we estimate the fair value of the asset. Impairment is recognized when the carrying amount of the asset is not recoverable and when carrying value exceeds fair value. Long-lived assets to be disposed of, if any, are reported at the lower of carrying amount or fair value less cost to sell. For the year ended December 31, 2013 we recognized an impairment loss of approximately $756 (recorded in G&A expenses) associated with implementation costs for a systems implementation project at our Russian and Kazakhstan locations within our DynaEnergetics segment. We have subsequently made the strategic decision to abandon this system implementation project and, therefore, the impairment loss recognized represents writing down the carrying amount of this asset to zero. There were no asset impairments for the years ending December 31, 2012 and December 31, 2011. | ||||||||||||
Goodwill | ||||||||||||
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. The carrying value of goodwill is periodically reviewed for impairment (at a minimum annually) and whenever events or changes in circumstances indicate that the carrying amount of this asset may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include significant negative industry or economic trends, significant changes in the manner of our use of the acquired assets or our strategy, a significant decrease in the market value of the asset, and a significant change in legal factors or in the business climate that could affect the value of the asset. | ||||||||||||
We test goodwill for impairment by first performing a qualitative evaluation. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We may elect to bypass this qualitative assessment for certain of our reporting units and perform a two-step quantitative test. | ||||||||||||
Our reporting units for goodwill impairment testing are currently the same as our operating divisions and reportable business segments: NobelClad, DynaEnergetics and AMK Technical Services. Each of these three business segments represent separately managed strategic business units and our chief operating decision maker reviews financial results and evaluates operating performance at this level. | ||||||||||||
Our annual goodwill impairment testing for 2013 was completed as of December 31, 2013 for our NobelClad and DynaEnergetics reporting units (AMK Technical Services has no recorded goodwill). For NobelClad, which has been our core business segment for more than 40 years, we performed a qualitative assessment to test this reporting unit’s goodwill for impairment. For our DynaEnergetics reporting unit, which was initially established through a 2007 acquisition and has grown through subsequent acquisitions completed in 2009, 2010 and 2012, we elected to perform quantitative testing. Our quantitative testing utilized both an income approach (discounted cash flows) and a market approach consisting of a comparable public company earnings multiples methodology to estimate the fair value of this reporting unit. To determine the reasonableness of the estimated fair values, we carefully reviewed our assumptions to ensure that neither the income approach nor the market approach provided a significantly different valuation. | ||||||||||||
If the carrying value were to exceed the fair value for any reporting unit, we would then calculate and compare the estimated implied fair value of goodwill to the carrying amount of goodwill and record an impairment charge for any excess of carrying value over implied fair value. Our most recent impairment testing has resulted in a determination that the carrying value of goodwill did not exceed fair value and, consequently, that our goodwill was not impaired. A future impairment is possible and could occur if (i) operating results underperform what we have estimated or (ii) additional volatility of the capital markets or other factors should cause us to raise the discount rate percentage utilized in our discounted cash flow analysis or decrease the multiples utilized in our market-based analysis. While we believe our most recent estimates were appropriate based on our view of then current business trends, no assurance can be provided that impairment charges will not be required in the future. | ||||||||||||
The changes to the carrying amount of goodwill during the period are summarized below: | ||||||||||||
NobelClad | DynaEnergetics | Total | ||||||||||
Goodwill balance at December 31, 2011 | $ | 21,637 | $ | 15,870 | $ | 37,507 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | $ | (322 | ) | $ | (485 | ) | $ | (807 | ) | |||
Adjustment due to exchange rate differences | $ | 419 | $ | 312 | $ | 731 | ||||||
Goodwill balance at December 31, 2012 | $ | 21,734 | $ | 15,697 | $ | 37,431 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (353 | ) | (598 | ) | (951 | ) | ||||||
Adjustment due to exchange rate differences | 857 | 633 | 1,490 | |||||||||
Goodwill balance at December 31, 2013 | $ | 22,238 | $ | 15,732 | $ | 37,970 | ||||||
All of the goodwill shown above, which is primarily in Germany, is amortizable goodwill for tax purposes. | ||||||||||||
Purchased Intangible Assets | ||||||||||||
Our purchased intangible assets include core technology, customer relationships and trademarks/trade names. Impairment, if any, is calculated based upon our evaluation whereby, estimated undiscounted future cash flows associated with these assets or operations are compared with their carrying value to determine if a write-down to fair value is required. Finite lived intangible assets are amortized over the estimated useful life of the related assets which have a weighted average amortization period of 12 years in total. | ||||||||||||
The weighted average amortization periods of the intangible assets by asset category are as follows: | ||||||||||||
Core technology | 20 years | |||||||||||
Customer relationships | 9 years | |||||||||||
Trademarks / Trade names | 9 years | |||||||||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2013: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 23,391 | $ | (7,155 | ) | $ | 16,236 | |||||
Customer relationships | 45,269 | (25,813 | ) | 19,456 | ||||||||
Trademarks / Trade names | 2,510 | (1,744 | ) | 766 | ||||||||
Total intangible assets | $ | 71,170 | $ | (34,712 | ) | $ | 36,458 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2012: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,494 | $ | (5,749 | ) | $ | 16,745 | |||||
Customer relationships | 44,334 | (20,046 | ) | 24,288 | ||||||||
Trademarks / Trade names | 2,409 | (1,484 | ) | 925 | ||||||||
Total intangible assets | $ | 69,237 | $ | (27,279 | ) | $ | 41,958 | |||||
The change in the gross value of our purchased intangible assets from December 31, 2012 to December 31, 2013 is due solely to the impact of foreign currency translation adjustments. | ||||||||||||
Expected future amortization of intangible assets is as follows: | ||||||||||||
For the years ended December 31 - | ||||||||||||
2014 | $ | 6,289 | ||||||||||
2015 | 4,776 | |||||||||||
2016 | 4,776 | |||||||||||
2017 | 4,751 | |||||||||||
2018 | 3,468 | |||||||||||
Thereafter | 12,398 | |||||||||||
$ | 36,458 | |||||||||||
Other Assets | ||||||||||||
Included in other assets are net deferred debt issuance costs of $305 and $406 as of December 31, 2013 and 2012, respectively. On December 21, 2011, we entered into a new five-year syndicated credit agreement, which amended and restated in its entirety the prior syndicated agreement entered into on November 16, 2007. In connection with this amendment, $284 of costs associated with the prior term loan and the banks which are no longer in the syndicate were expensed. The outstanding balance of deferred debt issuance as of December 31, 2011 included additional costs of $435 that were incurred in connection with our amended and restated credit agreement and $95 of deferred debt issuance costs that were carried over from the prior agreement. These deferred debt issuance are being amortized over the five-year term of the amended and restated credit agreement which expires on December 21, 2016. | ||||||||||||
Customer Advances | ||||||||||||
On occasion, we require customers to make advance payments prior to the shipment of their orders in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. As of December 31, 2013 and 2012 customer advances totaled $1,025 and $1,363, respectively, and originated from several customers. | ||||||||||||
Revenue Recognition | ||||||||||||
Sales of clad metal products and welding services are generally based upon customer specifications set forth in customer purchase orders and require us to provide certifications relative to metals used, services performed, and the results of any non-destructive testing that the customer has requested be performed. All issues of conformity of the product to specifications are resolved before the product is shipped and billed. Products related to the DynaEnergetics segment, which include detonating cords, detonators, bi-directional boosters, and shaped charges, as well as, seismic related explosives and accessories, are standard in nature. In all cases, revenue is recognized only when all four of the following criteria have been satisfied: persuasive evidence of an arrangement exists; the price is fixed or determinable; delivery has occurred; and collection is reasonably assured. For contracts that require multiple shipments, revenue is recorded only for the units included in each individual shipment. If, as a contract proceeds toward completion, projected total cost on an individual contract indicates a probable loss, we will account for such anticipated loss. Revenue from sales of consigned inventory is recognized upon the use of the product by the consignee or according to the terms of the contract. | ||||||||||||
Earnings Per Share | ||||||||||||
Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards (“RSAs”), are considered participating securities for purposes of calculating earnings per share (“EPS”) and require the use of the two class method for calculating EPS. Under this method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below. | ||||||||||||
Computation and reconciliation of earnings per common share are as follows: | ||||||||||||
For the Year Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 7,495 | ||||||||||
Less income allocated to RSAs | (119 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,376 | 13,533,566 | $ | 0.55 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 3,959 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 7,495 | ||||||||||
Less income allocated to RSAs | (119 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,376 | 13,537,525 | $ | 0.54 | |||||||
For the Year Ended | ||||||||||||
December 31, 2012 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 11,696 | ||||||||||
Less income allocated to RSAs | (211 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 11,485 | 13,264,636 | $ | 0.87 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 4,077 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 11,696 | ||||||||||
Less income allocated to RSAs | (211 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 11,485 | 13,268,713 | $ | 0.87 | |||||||
For the Year Ended | ||||||||||||
December 31, 2011 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 12,491 | ||||||||||
Less income allocated to RSAs | (246 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 12,245 | 13,089,691 | $ | 0.94 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 9,430 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 12,491 | ||||||||||
Less income allocated to RSAs | (246 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 12,245 | 13,099,121 | $ | 0.93 | |||||||
Fair Value of Financial Instruments | ||||||||||||
The carrying values of cash and cash equivalents, trade accounts receivable and payable, accrued expenses, lines of credit and long-term debt approximate their fair value. | ||||||||||||
We had two foreign currency hedge agreements, which expired on April 30, 2011 and May 3, 2012, that were recorded at fair value. Fair value is defined as 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. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: | ||||||||||||
· Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. | ||||||||||||
· Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. | ||||||||||||
· Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. | ||||||||||||
The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. | ||||||||||||
Our foreign currency hedge agreements were not exchange listed and were therefore valued with models that use Level 2 inputs. | ||||||||||||
Income Taxes | ||||||||||||
We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities based on enacted tax laws and for tax credits. We recognize deferred tax assets for the expected future effects of all deductible temporary differences. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits which, more likely than not based on current circumstances, are not expected to be realized (see Note 6). | ||||||||||||
Concentration of Credit Risk and Off Balance Sheet Arrangements | ||||||||||||
Financial instruments, which potentially subject us to a concentration of credit risk, consist primarily of cash, cash equivalents, and accounts receivable. Generally, we do not require collateral to secure receivables. At December 31, 2013, we had no financial instruments with off-balance sheet risk of accounting losses other than the derivative discussed above. | ||||||||||||
Other Cumulative Comprehensive Loss | ||||||||||||
Other cumulative comprehensive loss as of December 31, 2013, 2012, and 2011 consisted entirely of currency translation adjustments. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In February 2013, the Financial Accounting Standards Board issued an accounting standards update which requires an entity to disclose amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This accounting standards update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this update did not have a material impact on our financial statements. | ||||||||||||
Reclassifications | ||||||||||||
Certain prior year balances in the consolidated financial statements and notes have been reclassified to conform to the 2013 presentation. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
ACQUISITIONS | ' | |||
ACQUISITIONS | ||||
TRX Industries | ||||
On January 3, 2012, we acquired the assets and operating business of Texas-based TRX Industries, Inc. (“TRX”), a manufacturer of perforating guns, for a purchase price of $10,294. TRX, which has now been integrated into our subsidiary DYNAenergetics US, had been a long-term supplier to DYNAenergetics US and, in recent years, accounted for a rapidly growing percentage of its perforating gun purchases. | ||||
The acquisition of TRX was structured as an asset purchase in an all-cash transaction. The purchase price was allocated to tangible and identifiable intangible assets based on their fair values as determined by appraisals performed as of the acquisition date on property, plant and equipment and discounted cash flow analysis on the identifiable intangible assets. The allocation of the purchase price to the assets of TRX was as follows: | ||||
Current assets | $ | 2,702 | ||
Property, plant and equipment | 2,227 | |||
Intangible assets | 5,365 | |||
Deferred tax assets | 40 | |||
Total assets acquired | 10,334 | |||
Current liabilities | 40 | |||
Total liabilities assumed | 40 | |||
Net assets acquired | $ | 10,294 | ||
We acquired identifiable finite-lived intangible assets as a result of the acquisition of TRX. The finite-lived intangible assets acquired were classified as customer relationships, totaling $5,365, and are being amortized over 6 years. These amounts are included in Purchased Intangible Assets and are further discussed in Note 2. | ||||
Pro Forma Statements of Operations | ||||
The following table presents the pro-forma combined results of operations for the year ended December 31, 2011 assuming (i) the acquisition of TRX had occurred on January 1; (ii) pro-forma amortization expense of the purchased intangible assets; (iii) pro-forma depreciation expense of the fair value of purchased property, plant and equipment; (iv) elimination of intercompany sales and (v) increase in interest expense for borrowing $10,000 to fund the acquisition of TRX: | ||||
(Unaudited) | ||||
For the Year Ended | ||||
31-Dec-11 | ||||
Net sales | $ | 216,014 | ||
Income from operations | $ | 20,022 | ||
Net income attributable to DMC | $ | 13,549 | ||
Net income per share: | ||||
Basic | $ | 1.01 | ||
Diluted | $ | 1.01 | ||
The pro-forma results above are not necessarily indicative of the operating results that would have actually occurred if the acquisition had been in effect on the dates indicated, nor are they necessarily indicative of future results of the combined companies. Since the above acquisition occurred on or before January 3, 2012, the actual results for the year ended December 31, 2012 reflect the full year impact of this acquisition. |
DEBT
DEBT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT | ' | |||||||
DEBT | ||||||||
Lines of credit consisted of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Syndicated credit agreement: | ||||||||
U.S. Dollar revolving loan | $ | 26,400 | $ | 31,900 | ||||
Euro revolving loan | — | 4,625 | ||||||
Canadian Dollar revolving loan | — | 1,254 | ||||||
Commerzbank line of credit | 2,856 | 981 | ||||||
29,256 | 38,760 | |||||||
Less current portion | (2,856 | ) | (981 | ) | ||||
Long-term lines of credit | $ | 26,400 | $ | 37,779 | ||||
Long-term debt consisted of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Loans with former owners of LRI | $ | 51 | $ | 120 | ||||
Less current maturities | (51 | ) | (65 | ) | ||||
Long-term debt | $ | — | $ | 55 | ||||
Syndicated Credit Agreement | ||||||||
On December 21, 2011, we entered into a five-year syndicated credit agreement (“credit facility”) which amended and restated in its entirety our prior syndicated credit facility entered into on November 16, 2007. The new credit facility, which provides revolving loan availability of $36,000, 16,000 Euros and 1,500 Canadian dollars, is through a syndicate of four banks, with JP Morgan Chase Bank, N.A. acting as administrative agent for the U.S. and Canadian dollar loans and JP Morgan Europe Ltd. acting as administrative agent for the Euro loans. The credit facility expires on December 21, 2016. Based upon our expected 2014 operating results, planned 2014 capital expenditures and expected changes in working capital levels during 2014, we expect our average 2014 borrowings to be equal to or exceed the amount of outstanding borrowings at December 31, 2013. Thus, we have classified all borrowings outstanding as of December 31, 2013 under our syndicated credit agreement as long-term lines of credit. | ||||||||
U.S. Dollar Revolving Loans: At our option, borrowings under the $36,000 revolving loan can be in the form of Alternate Base Rate loans (“ABR” borrowings are based on the greater of adjusted Prime rates, adjusted CD rates, or adjusted Federal Funds rates) or one, two, three, or six month London Interbank Offered Rate (“LIBOR”) loans. ABR loans bear interest at the defined ABR rate plus 0.00% (at our current leverage ratio) and LIBOR loans bear interest at the applicable LIBOR rate plus 1.25% (at our current leverage ratio). As of December 31, 2013, outstanding revolving loans totaled $26,400 and had an all-in interest rate of 1.42% based on the LIBOR rate. Our rates are subject to change based upon changes in our current leverage ratio. | ||||||||
Euro Revolving Loans: At our option, borrowings under the 16,000 Euro revolving loan can be based on one, two, three, or six month Euro Interbank Offered Rate (“EURIBOR”) rates and bear interest at the applicable EURIBOR rate plus 1.25% (at our current leverage ratio). As of December 31, 2013, there were no borrowings outstanding under our 16,000 Euro revolving loan. | ||||||||
Canadian Dollar Revolving Loans: At our option, borrowings under the $1,500 Canadian dollar revolving loan can be based on one, two, three or six month Canadian Dealer Offered Rate (“CDOR”) rates and bear interest at the applicable CDOR rate plus 1.5% (at our current leverage ratio). As of December 31, 2013, there were no borrowings outstanding under our $1,500 Canadian dollar revolving loan. | ||||||||
The syndicated credit facility is secured by the assets of DMC including accounts receivable, inventory, and fixed assets, as well as guarantees and share pledges by DMC. | ||||||||
Line of Credit with German Bank | ||||||||
We maintain a line of credit with a German bank for certain DYNAenergetics operations. This line of credit provides a borrowing capacity of 4,000 Euros and is also used by DYNAenergetics to issue bank guarantees to its customers to secure advance payments made by them. As of December 31, 2013, we had outstanding borrowings of 2,075 Euros ($2,856 based on the December 31, 2013 exchange rate). As of December 31, 2013, we had bank guarantees secured by the line of credit of $1,722. The line of credit bears interest at a EURIBOR-based variable rate which at December 31, 2013 was 3.85%. The line of credit has open-ended terms and can be canceled by the bank at any time. | ||||||||
Loans with Former Owners of LRI | ||||||||
In connection with our October 1, 2009 acquisition of LRI, we assumed loans with the former owners of LRI totaling $2,634 Canadian dollars. Following the acquisition, we immediately repaid $1,302 Canadian dollars of the loans, leaving a principal balance of $1,332 Canadian dollars, which was due in 35 equal installments beginning on December 1, 2011 with the final payment being due on October 1, 2014. Under the terms of our amended and restated credit facility, we were required to prepay the outstanding principal balance on certain of these loans in January 2012 in the amount of $1,080 Canadian dollars. As of December 31, 2013, the outstanding balance on these loans was $55 Canadian dollars ($51 based on the December 31, 2013 exchange rate). These loans bear interest at the prime rate plus 1.25% (4.25% at December 31, 2013). | ||||||||
Loan Covenants and Restrictions | ||||||||
Our existing loan agreements include various covenants and restrictions, certain of which relate to the payment of dividends or other distributions to stockholders; redemption of capital stock; incurrence of additional indebtedness; mortgaging, pledging or disposition of major assets; and maintenance of specified financial ratios. As of December 31, 2013, we were in compliance with all financial covenants and other provisions of our debt agreements. | ||||||||
Scheduled Debt Maturity | ||||||||
Our long-term debt, other than lines of credit, all matures by December 31, 2014. |
STOCK_OWNERSHIP_AND_BENEFIT_PL
STOCK OWNERSHIP AND BENEFIT PLANS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
STOCK OWNERSHIP AND BENEFIT PLANS | ' | |||||||||||||
STOCK OWNERSHIP AND BENEFIT PLANS | ||||||||||||||
On September 21, 2006, our stockholders approved, and we adopted, the 2006 Stock Incentive Plan (“2006 Plan”). On May 23, 2013, our stockholders approved an amendment to the 2006 Plan to increase the number of shares of common stock that may be issued under the 2006 Plan. The 2006 Plan provides for the grant of various types of equity-based incentives, including stock options, restricted stock, restricted stock units, stock appreciation rights, performance shares, performance units and other stock-based awards. There are a total of 1,617,500 shares available for grant under the 2006 Plan. As of December 31, 2013, we have granted an aggregate of 1,025,646 shares of restricted stock and restricted stock units under the 2006 Plan, leaving 591,854 shares available for future grant. | ||||||||||||||
The following table sets forth the total stock-based compensation expense included in the Consolidated Statements of Operations: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Cost of products sold | $ | 304 | $ | 324 | $ | 261 | ||||||||
General and administrative expenses | 2,913 | 3,018 | 2,431 | |||||||||||
Selling and distribution expenses | 184 | 1,101 | 705 | |||||||||||
Stock-based compensation expense before income taxes | 3,401 | 4,443 | 3,397 | |||||||||||
Income tax benefit | (990 | ) | (864 | ) | (918 | ) | ||||||||
Stock-based compensation expense, net of income taxes | $ | 2,411 | $ | 3,579 | $ | 2,479 | ||||||||
Earnings per share impact: | ||||||||||||||
Basic - net income | $ | 0.18 | $ | 0.27 | $ | 0.19 | ||||||||
Diluted - net income | $ | 0.18 | $ | 0.27 | $ | 0.19 | ||||||||
Our stock-based compensation expense results from restricted stock awards, restricted stock units and stock issued under the Employee Stock Purchase Plan. Our 2012 stock-based compensation expense includes $672 relating to the accelerated recognition of stock-based compensation expense resulting from accelerated vesting of restricted stock awards associated with our President and Chief Executive Officer’s planned retirement on March 1, 2013 and the December 31, 2012 retirement of another senior executive. During the first quarter of 2013 and, as a result of board actions taken in January 2013, we recorded a one-time expense of $2,965 associated with these management retirements. This expense included $894 of stock-based compensation, with the remainder representing cash payments. | ||||||||||||||
Restricted Stock Awards and Units: Restricted stock and restricted stock units granted to the executive officers and employees of DMC generally vest in one-third increments on the first, second, and third anniversary of the date of grant. Restricted stock granted to directors in 2012 and 2013 vest in one-third increments on the first, second, and third anniversary dates. In previous years, restricted stock granted to directors of DMC vested on the first anniversary of the date of grant. In 2008, we granted 90,000 restricted stock awards under a supplemental executive retirement plan, with 100% of these awards vesting on the fifth anniversary of the date of grant. The fair value of restricted stock and restricted stock unit awards is based on the fair value of DMC’s stock on the date of grant and is amortized to compensation expense over the vesting period on a straight line basis. | ||||||||||||||
A summary of the activity of our nonvested shares of restricted stock issued under the 2006 Plan for the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Balance at December 31, 2010 | 237,489 | $ | 32.82 | |||||||||||
Granted | 116,500 | 20.9 | ||||||||||||
Vested | (90,660 | ) | 24.16 | |||||||||||
Forfeited | (1,500 | ) | 18.79 | |||||||||||
Balance at December 31, 2011 | 261,829 | $ | 30.59 | |||||||||||
Granted | 116,900 | 20.74 | ||||||||||||
Vested | (136,344 | ) | 27.2 | |||||||||||
Balance at December 31, 2012 | 242,385 | $ | 27.75 | |||||||||||
Granted | 163,579 | 16.37 | ||||||||||||
Vested | (216,851 | ) | 27.95 | |||||||||||
Forfeited | (2,000 | ) | 22.05 | |||||||||||
Balance at December 31, 2013 | 187,113 | $ | 17.63 | |||||||||||
On March 1, 2013 Kevin Longe, our President and Chief Executive Officer, was granted 30,000 shares of restricted stock outside of our 2006 Plan per specific exemptions in the Nasdaq regulations. The exemption relates to equity compensation agreed upon at an arms length basis to hire a new executive or director if the terms of the grant are promptly disclosed after the award. These shares will vest in one-third increments on the first, second, and third anniversary of the date of grant. | ||||||||||||||
A summary of the activity of our nonvested restricted stock units for the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||||
Share | Weighted Average | |||||||||||||
Units | Grant Date | |||||||||||||
Fair Value | ||||||||||||||
Balance at December 31, 2010 | 34,583 | $ | 19.59 | |||||||||||
Granted | 32,500 | 20.45 | ||||||||||||
Vested | (13,085 | ) | 18.24 | |||||||||||
Balance at December 31, 2011 | 53,998 | $ | 20.43 | |||||||||||
Granted | 50,200 | 20.44 | ||||||||||||
Vested | (20,769 | ) | 20.43 | |||||||||||
Forfeited | (3,000 | ) | 21.15 | |||||||||||
Balance at December 31, 2012 | 80,429 | $ | 20.41 | |||||||||||
Granted | 56,217 | 15.67 | ||||||||||||
Vested | (35,001 | ) | 20.88 | |||||||||||
Forfeited | (2,300 | ) | 19.01 | |||||||||||
Balance at December 31, 2013 | 99,345 | $ | 17.59 | |||||||||||
As of December 31, 2013, there was $2,480 and $1,020 of total unrecognized stock-based compensation related to unvested restricted stock awards and restricted stock units, respectively. The cost is expected to be recognized over a weighted average period of 1.89 years and 1.83 years for the restricted stock awards and restricted stock units, respectively. | ||||||||||||||
Stock Options: Our incentive stock options were granted at exercise prices that equaled the fair market value of the stock at the date of grant based upon the closing sales price of DMC’s common stock on that date. Incentive stock options generally vested 25% annually and expired ten years from the date of grant. Non-statutory stock options were generally granted at exercise prices that equaled the fair market value of the stock at the date of grant. We have not granted options since 2006. | ||||||||||||||
A summary of stock option activity for the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual Term | |||||||||||||
Balance at December 31, 2010 | 19,700 | $ | 12.74 | |||||||||||
Exercised | (4,200 | ) | 4.71 | |||||||||||
Balance at December 31, 2011 | 15,500 | $ | 14.92 | |||||||||||
Exercised | — | — | ||||||||||||
Balance at December 31, 2012 | 15,500 | $ | 14.92 | |||||||||||
Exercised | (1,500 | ) | 3.72 | |||||||||||
Balance at December 31, 2013 | 14,000 | $ | 16.12 | 1.32 | $ | 79 | ||||||||
Exercisable at December 31, 2013 | 14,000 | $ | 16.12 | 1.32 | $ | 79 | ||||||||
The intrinsic value of options exercised for the years ended December 31, 2013, 2012, and 2011 was $28, $0 and $74, respectively. As of December 31, 2013 and 2012, there was no unrecognized stock-based compensation cost related to unvested stock options. | ||||||||||||||
The following table summarizes information about employee stock options outstanding and exercisable at December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Number of Options | Average | |||||||||||||
Outstanding and | Remaining | Weighted | ||||||||||||
Exercisable at | Contractual Life | Average | ||||||||||||
Exercise Prices | 31-Dec-13 | in Years | Exercise Price | |||||||||||
$4.87 | 4,000 | 1.06 | $ | 4.87 | ||||||||||
$20.62 | 10,000 | 1.42 | $ | 20.62 | ||||||||||
14,000 | 1.32 | $ | 16.12 | |||||||||||
Employee Stock Purchase Plan | ||||||||||||||
We have an Employee Stock Purchase Plan (“ESPP”) which is authorized to issue up to 600,000 shares of which 135,366 shares remain available for future purchases. The offerings begin on the first day following each previous offering (“Offering Date”) and end six months from the offering date (“Purchase Date”). The ESPP provides that full time employees may authorize DMC to withhold up to 15% of their earnings, subject to certain limitations, to be used to purchase common stock of DMC at the lesser of 85% of the fair market value of DMC’s common stock on the Offering Date or the Purchase Date. In connection with the ESPP, 22,689; 14,717; and 8,688 shares of our stock were purchased during the years ended December 31, 2013, 2012, and 2011, respectively. Our total stock-based compensation expense for 2013, 2012, and 2011 includes $76, $58, and $57 respectively, in compensation expense associated with the ESPP. | ||||||||||||||
401(k) Plan | ||||||||||||||
We offer a contributory 401(k) plan to our employees. We make matching contributions equal to 100% of each employee’s contribution up to 3% of qualified compensation and 50% of the next 2% of qualified compensation contributed by each employee. Total DMC contributions were $485, $431, and $379 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
Defined Benefit Plans | ||||||||||||||
We have defined benefit pension plans at certain foreign subsidiaries for which we have recorded an unfunded pension obligation of $910 and $807 as of December 31, 2013 and 2012, respectively, which is included in other long-term liabilities in the Consolidated Balance Sheets. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
INCOME TAXES | |||||||||||||
The domestic and foreign components of income before tax for our operations for the years ended December 31 are summarized below: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 7,058 | $ | 7,716 | $ | 12,550 | |||||||
Foreign | 3,470 | 8,836 | 4,260 | ||||||||||
$ | 10,528 | $ | 16,552 | $ | 16,810 | ||||||||
The components of the provision for income taxes for the years ended December 31 are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current - Federal | $ | 1,585 | $ | 3,774 | $ | 4,260 | |||||||
Current - State | 94 | 148 | 137 | ||||||||||
Current - Foreign | 3,029 | 2,203 | 1,559 | ||||||||||
Current income tax expense | 4,708 | 6,125 | 5,956 | ||||||||||
Deferred - Federal | (390 | ) | (314 | ) | (295 | ) | |||||||
Deferred - State | (86 | ) | (21 | ) | (24 | ) | |||||||
Deferred - Foreign | |||||||||||||
Net operating losses | 623 | 176 | 71 | ||||||||||
Other | (1,914 | ) | (1,108 | ) | (1,339 | ) | |||||||
Deferred income tax benefit | (1,767 | ) | (1,267 | ) | (1,587 | ) | |||||||
Income tax provision | $ | 2,941 | $ | 4,858 | $ | 4,369 | |||||||
A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 35% in December 31, 2013, 2012, and 2011 to income before taxes for the years ended December 31 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax at statutory rate | $ | 3,652 | $ | 5,793 | $ | 5,900 | |||||||
State and local tax items not included below, net | 815 | 431 | 209 | ||||||||||
Effect of difference between U.S. Federal and foreign tax rates | (1,655 | ) | (1,459 | ) | (554 | ) | |||||||
Permanent differences: | |||||||||||||
Foreign interest expense | (434 | ) | (859 | ) | (784 | ) | |||||||
U.S. manufacturing tax deduction | (224 | ) | (356 | ) | (414 | ) | |||||||
German tax audit settlement | 812 | — | — | ||||||||||
Deemed repatriation of foreign earnings | (914 | ) | 914 | — | |||||||||
Intercompany distributions | 1,250 | — | — | ||||||||||
Foreign equity compensation | 228 | 247 | 196 | ||||||||||
Other | 165 | 79 | 83 | ||||||||||
Current year tax credits | (649 | ) | (29 | ) | (142 | ) | |||||||
Impact of statutory tax rate change | (6 | ) | 198 | (31 | ) | ||||||||
Other | (99 | ) | (101 | ) | (94 | ) | |||||||
Provision for income taxes | $ | 2,941 | $ | 4,858 | $ | 4,369 | |||||||
In January 2013, the United States Congress authorized, and the President signed into law, legislation which retroactively changed federal tax laws for 2012. Since this legislation was enacted in 2013, the financial statement benefit from these changes, totaling $914, was reflected in the provision for income taxes in the consolidated statement of operations during the twelve months ended December 31, 2013. Tax returns of our German subsidiaries have been under routine examination by the German tax authorities for most of 2013. During 2013, German tax authorities proposed and we agreed to a settlement. The key provisions of the settlement resulted in a net reduction of the subsidiaries' loss carryforwards, which reduced the non-current deferred tax assets associated with these carryforwards that were recorded on our books. Thus, we recorded an additional $812 in income tax expense to reflect these reductions. | |||||||||||||
Our deferred tax assets and liabilities at December 31, 2013 and 2012 consist of the following: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Income tax credit carryforward | $ | 50 | $ | 584 | |||||||||
Net foreign operating loss carryforward | 5,396 | 6,019 | |||||||||||
Inventory differences | 2,424 | 1,451 | |||||||||||
Allowance for doubtful accounts | 105 | 113 | |||||||||||
Equity compensation | 556 | 1,703 | |||||||||||
Vacation and other compensation accrual | 374 | 420 | |||||||||||
Investment in subsidiaries | 1,154 | — | |||||||||||
Other, net | 175 | 21 | |||||||||||
Deferred tax assets | 10,234 | 10,311 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Purchased intangible assets | (12,445 | ) | (13,257 | ) | |||||||||
Depreciation and amortization | (2,315 | ) | (2,097 | ) | |||||||||
Investment in partnerships | — | (1,129 | ) | ||||||||||
Deferred profit | (244 | ) | (236 | ) | |||||||||
Other, net | — | (74 | ) | ||||||||||
Deferred tax liabilities | (15,004 | ) | (16,793 | ) | |||||||||
Net deferred tax liabilities | $ | (4,770 | ) | $ | (6,482 | ) | |||||||
Current deferred tax assets | $ | 3,507 | $ | 2,074 | |||||||||
Current deferred tax liabilities | (435 | ) | (149 | ) | |||||||||
Long-term deferred tax assets | 505 | 804 | |||||||||||
Long-term deferred tax liabilities | (8,347 | ) | (9,211 | ) | |||||||||
Net deferred tax liabilities | $ | (4,770 | ) | $ | (6,482 | ) | |||||||
As a result of stock-based compensation in December 31, 2013, 2012, and 2011, we decreased additional paid-in-capital by $907, $453, and $35, respectively, for the tax impact. To the extent these adjustments reduced taxes currently payable, they are not reflected in the current income tax provision for those years. | |||||||||||||
As of December 31, 2013, 2012 and 2011, income considered to be permanently reinvested in non-U.S. subsidiaries totaled approximately $37,795, $42,543 and $27,745, respectively. Deferred income taxes have not been provided on this undistributed income, as we do not plan to initiate any action that would require the payment of U.S. income taxes on these earnings. It is not practical to estimate the amount of additional taxes that might be payable on these amounts of undistributed foreign income. | |||||||||||||
The components of the income tax credit carryforward as of December 31, 2013 are sundry state tax credits of $78 (which, if unused, expire between 2014 and 2022). The components of the income tax credit carryforward as of December 31, 2012, are U.S. foreign tax credits of $551 (which, if unused, expire between 2017 and 2019) and sundry state tax credits of $33 (which, if unused, expire beginning in 2013 and 2017). | |||||||||||||
As of December 31, 2013 and 2012, we had no state net operating loss carryforwards. The foreign loss carryforwards are primarily from jurisdictions which do not impose a time limitation on such carryforwards. | |||||||||||||
At December 31, 2013 and 2012, the balance of unrecognized tax benefits was $0. We recognize interest and penalties related to uncertain tax positions in operating expense. As of December 31, 2013 and 2012, our accrual for interest and penalties related to uncertain tax positions was $0. | |||||||||||||
DMC’s U.S. Federal tax returns for the tax years 2010-2013 remain open to examination while most of DMC’s state tax returns remain open to examination for the tax years 2009-2013. DMC’s foreign tax returns remain open to examination for the tax years 2008-2013. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
BUSINESS SEGMENTS | ' | ||||||||||||
BUSINESS SEGMENTS | |||||||||||||
Our business is organized in the following three segments: NobelClad, DynaEnergetics, and AMK Technical Services. The NobelClad segment uses explosives to perform metal cladding and shock synthesis of industrial diamonds. The most significant product of this group is clad metal which is used in the fabrication of pressure vessels, heat exchangers, and transition joints for various industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration, and similar industries. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. AMK Technical Services utilizes a number of welding technologies to weld components for manufacturers of jet engine and ground-based turbines. | |||||||||||||
The accounting policies of all the segments are the same as those described in the summary of significant accounting policies. Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies. | |||||||||||||
Beginning in 2011, we changed our methodology of allocating corporate overhead to our business segments. In connection with this change, we no longer allocate certain corporate expenses that do not directly benefit our business segments. DMC corporate and our U.S. NobelClad business fall under the same legal entity and historically their general ledgers have been combined. Beginning January 1, 2013, and in connection with implementing a new ERP system, we have separated DMC corporate and NobelClad U.S. into two general ledgers. Therefore we now have specifically identified corporate property, plant and equipment that are not allocated to our business segments. These assets consist of computer hardware, computer software, leasehold improvements and furniture related to our corporate offices. | |||||||||||||
Segment information is presented for the years ended December 31, 2013, 2012, and 2011 as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
NobelClad | $ | 118,409 | $ | 115,333 | $ | 126,199 | |||||||
DynaEnergetics | 83,651 | 77,404 | 72,782 | ||||||||||
AMK Technical Services | 7,513 | 8,830 | 9,910 | ||||||||||
Consolidated net sales | $ | 209,573 | $ | 201,567 | $ | 208,891 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before income taxes: | |||||||||||||
NobelClad | $ | 17,090 | $ | 17,439 | $ | 16,058 | |||||||
DynaEnergetics | 4,849 | 7,047 | 6,188 | ||||||||||
AMK Technical Services | 376 | 925 | 2,056 | ||||||||||
Segment operating income | 22,315 | 25,411 | 24,302 | ||||||||||
Unallocated corporate expenses | (7,217 | ) | (3,565 | ) | (2,686 | ) | |||||||
Stock-based compensation | (3,401 | ) | (4,443 | ) | (3,397 | ) | |||||||
Other income (expense) | (528 | ) | (32 | ) | 528 | ||||||||
Interest expense | (648 | ) | (832 | ) | (1,945 | ) | |||||||
Interest income | 7 | 13 | 8 | ||||||||||
Consolidated income before income taxes | $ | 10,528 | $ | 16,552 | $ | 16,810 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation and Amortization: | |||||||||||||
NobelClad | $ | 6,118 | $ | 5,580 | $ | 5,833 | |||||||
DynaEnergetics | 6,125 | 5,631 | 4,877 | ||||||||||
AMK Technical Services | 652 | 536 | 489 | ||||||||||
Segment depreciation and amortization | $ | 12,895 | $ | 11,747 | $ | 11,199 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capital Expenditures: | |||||||||||||
NobelClad | $ | 2,425 | $ | 4,747 | $ | 4,338 | |||||||
DynaEnergetics | 13,022 | 10,386 | 2,904 | ||||||||||
AMK Technical Services | 1,342 | 514 | 484 | ||||||||||
Segment capital expenditures | 16,789 | 15,647 | 7,726 | ||||||||||
Corporate and other | 776 | — | — | ||||||||||
Consolidated capital expenditures | $ | 17,565 | $ | 15,647 | $ | 7,726 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Assets: | |||||||||||||
NobelClad | $ | 99,115 | $ | 100,227 | $ | 102,473 | |||||||
DynaEnergetics | 112,919 | 112,319 | 92,070 | ||||||||||
AMK Technical Services | 6,090 | 6,120 | 6,006 | ||||||||||
Segment assets | 218,124 | 218,666 | 200,549 | ||||||||||
Cash and cash equivalents | 10,617 | 8,200 | 5,276 | ||||||||||
Prepaid expenses and other assets | 6,275 | 5,687 | 5,647 | ||||||||||
Deferred tax assets | 4,012 | 2,878 | 1,954 | ||||||||||
Corporate property, plant and equipment | 1,584 | — | — | ||||||||||
Consolidated assets | $ | 240,612 | $ | 235,431 | $ | 213,426 | |||||||
The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 33,301 | $ | 28,248 | $ | 21,810 | |||||||
Germany | 12,703 | 11,319 | 9,924 | ||||||||||
Russia | 10,152 | 5,351 | 387 | ||||||||||
France | 5,801 | 5,912 | 5,767 | ||||||||||
Canada | 2,230 | 2,136 | 2,339 | ||||||||||
Kazakhstan | 438 | 525 | 550 | ||||||||||
Rest of the world | 390 | 485 | 625 | ||||||||||
Total | $ | 65,015 | $ | 53,976 | $ | 41,402 | |||||||
All of our sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, France, Canada, Russia, Kazakhstan and Sweden (closed during 2011). The following represents our net sales based on the geographic location of the customer: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 95,214 | $ | 78,676 | $ | 81,410 | |||||||
Canada | 18,150 | 21,083 | 24,151 | ||||||||||
South Korea | 11,642 | 9,469 | 29,951 | ||||||||||
Germany | 9,208 | 13,992 | 12,960 | ||||||||||
India | 8,888 | 3,874 | 6,176 | ||||||||||
Russia | 5,992 | 6,472 | 8,658 | ||||||||||
France | 3,957 | 6,838 | 3,828 | ||||||||||
Kazakhstan | 2,513 | 2,359 | 32 | ||||||||||
China | 606 | 7,986 | 1,468 | ||||||||||
Rest of the world | 53,403 | 50,818 | 40,257 | ||||||||||
Total | $ | 209,573 | $ | 201,567 | $ | 208,891 | |||||||
During the years ended December 31, 2013, 2012 and 2011, no one customer accounted for more than 10% of total net sales. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
We lease certain office space, equipment, storage space, vehicles and other equipment under various non-cancelable lease agreements. Certain of these leases (primarily equipment related) are recorded as capital leases. Amortization expense associated with the capital leases is combined with depreciation expense of fixed assets. Details of capitalized leased assets as of December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Manufacturing equipment and tooling | $ | 304 | $ | 292 | |||||
Furniture, fixtures and computer equipment | 14 | — | |||||||
Total | 318 | 292 | |||||||
Less: Accumulated amortization | (290 | ) | (231 | ) | |||||
Net capitalized leased assets | $ | 28 | $ | 61 | |||||
Future minimum rental commitments under non-cancelable leases are as follows: | |||||||||
Capital Leases | Operating Leases | ||||||||
Year ended December 31 - | |||||||||
2014 | $ | 25 | $ | 1,961 | |||||
2015 | 5 | 1,579 | |||||||
2016 | 3 | 1,084 | |||||||
2017 | — | 788 | |||||||
2018 | — | 764 | |||||||
Thereafter | — | 1,126 | |||||||
Total minimum payments | 33 | $ | 7,302 | ||||||
Amounts representing interest | (1 | ) | |||||||
Present value of net minimum lease payments | 32 | ||||||||
Current portion of capital lease obligations | (24 | ) | |||||||
Capital lease obligations | $ | 8 | |||||||
Total rental expense included in operations was $3,884, $3,182, and $2,973 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
During 2008, we entered into a license agreement and a risk allocation agreement related to our U.S. NobelClad business. These agreements, which were amended in 2012, provide us with the ability to perform our explosive shooting process at a second shooting site in Pennsylvania. Future minimum payments required to be made by us under these agreements are as follows: | |||||||||
Year ended December 31 - | |||||||||
2014 | $ | 398 | |||||||
2015 | 398 | ||||||||
2016 | 398 | ||||||||
2017 | 398 | ||||||||
2018 | 398 | ||||||||
Thereafter | — | ||||||||
Total minimum payments | $ | 1,990 | |||||||
In the normal course of business, we are party to various contractual disputes and claims. After considering our evaluations by legal counsel regarding pending actions, we are of the opinion that the outcome of such actions will not have a material adverse effect on the financial position or results of operations. |
RETIREMENT_EXPENSES
RETIREMENT EXPENSES | 12 Months Ended |
Dec. 31, 2013 | |
Compensation Related Costs [Abstract] | ' |
RETIREMENT EXPENSES | ' |
RETIREMENT EXPENSES | |
During the first quarter of 2013 and, as a result of board actions taken in January 2013, we recorded a one-time expense of $2,965 associated with management retirements, the majority of which relates to the March 1, 2013 retirement of Yvon Cariou, our former President and Chief Executive Officer. This expense includes $894 of stock-based compensation, with the remainder representing cash payments. |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
SUBSEQUENT EVENT | |
In an effort to streamline our overall operational structure and further focus our business on the oil and gas industry, during the first quarter 2014 we intend to merge AMK Technical Services, which currently represents 3.6% of our net sales, into the DynaEnergetics business segment. AMK Technical Services will continue to serve its customers in the oil and gas, ground power and aerospace sectors and, in addition, it will perform specialized welding and machining services on select DynaEnergetics components. With AMK Technical Services’ increased focus on the oil and gas sector and our intention for it to be measured, monitored and managed in combination with our DynaEnergetics business segment , we believe it will be more appropriately included in our DynaEnergetics business segment, rather than as a separate segment. In our future filings, we will restate prior periods in our business segment disclosures to reflect this intended change. |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
Selected unaudited quarterly financial data for the years ended December 31, 2013 and 2012 are presented below: | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
Net sales | $ | 46,270 | $ | 57,859 | $ | 54,268 | $ | 51,176 | |||||||||
Gross profit | $ | 12,719 | $ | 17,063 | $ | 16,573 | $ | 13,159 | |||||||||
Net income | $ | 215 | $ | 3,440 | $ | 3,562 | $ | 278 | |||||||||
Net income per share - basic | $ | 0.02 | $ | 0.25 | $ | 0.26 | $ | 0.02 | |||||||||
Net income per share - diluted | $ | 0.02 | $ | 0.25 | $ | 0.26 | $ | 0.02 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
Net sales | $ | 50,212 | $ | 48,687 | $ | 50,149 | $ | 52,519 | |||||||||
Gross profit | $ | 14,377 | $ | 13,939 | $ | 15,349 | $ | 16,043 | |||||||||
Net income | $ | 2,428 | $ | 2,653 | $ | 3,754 | $ | 2,861 | |||||||||
Net income per share - basic | $ | 0.18 | $ | 0.2 | $ | 0.28 | $ | 0.21 | |||||||||
Net income per share - diluted | $ | 0.18 | $ | 0.2 | $ | 0.28 | $ | 0.21 | |||||||||
The net income per share for the 2013 and 2012 quarters, when totaled, does not equal net income per share for the respective years as the per share amounts for each quarter and for each year are computed based on their respective discrete periods. | |||||||||||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ||||||||||||||||||||
SCHEDULE II(a) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |||||||||||||||||||||
Balance at | Additions | Accounts | Other | Balance at | |||||||||||||||||
beginning | charged to | receivable | Adjustments | end of | |||||||||||||||||
of period | income | written off | period | ||||||||||||||||||
Year ended - | |||||||||||||||||||||
December 31, 2011 | $ | 378 | $ | 267 | $ | (149 | ) | $ | (72 | ) | $ | 424 | |||||||||
December 31, 2012 | $ | 424 | $ | 63 | $ | (10 | ) | $ | (71 | ) | $ | 406 | |||||||||
December 31, 2013 | $ | 406 | $ | 221 | $ | (13 | ) | $ | (195 | ) | $ | 419 | |||||||||
DYNAMIC MATERIALS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
SCHEDULE II(b) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||||||
WARRANTY RESERVE | |||||||||||||||||||||
Balance at | Additions | Repairs | Other | Balance at | |||||||||||||||||
beginning | charged to | allowed | Adjustments | end of | |||||||||||||||||
of period | income | period | |||||||||||||||||||
Year ended - | |||||||||||||||||||||
December 31, 2011 | $ | 597 | $ | 756 | $ | (761 | ) | $ | — | $ | 592 | ||||||||||
December 31, 2012 | $ | 592 | $ | 175 | $ | (134 | ) | $ | (190 | ) | $ | 443 | |||||||||
December 31, 2013 | $ | 443 | $ | 43 | $ | (156 | ) | $ | (116 | ) | $ | 214 | |||||||||
DYNAMIC MATERIALS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
SCHEDULE II(c) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||||||
INVENTORY RESERVE | |||||||||||||||||||||
Balance at | Additions | Inventory | Balance at | ||||||||||||||||||
beginning | charged to | write-offs | end of | ||||||||||||||||||
of period | income | period | |||||||||||||||||||
Year ended - | |||||||||||||||||||||
December 31, 2011 | $ | 225 | $ | 77 | $ | (145 | ) | $ | 157 | ||||||||||||
December 31, 2012 | $ | 157 | $ | 856 | $ | (676 | ) | $ | 337 | ||||||||||||
December 31, 2013 | $ | 337 | $ | 2,714 | $ | (1,322 | ) | $ | 1,729 | ||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Principles of Consolidation | ' | |||||||||||
Principles of Consolidation | ||||||||||||
The condensed consolidated financial statements include the accounts of DMC and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. | ||||||||||||
Use of Estimates | ' | |||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||||||||||||
Foreign Operations and Foreign Exchange Rate Risk | ' | |||||||||||
Foreign Operations and Foreign Exchange Rate Risk | ||||||||||||
The functional currency for our foreign operations is the applicable local currency for each affiliate company. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated at exchange rates in effect at period-end, and the statements of operations are translated at the average exchange rates during the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are recorded as a separate component of stockholders’ equity and are included in other cumulative comprehensive income (loss). Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in income as unrealized (based on period-end translations) or realized upon settlement of the transactions. Cash flows from our operations in foreign countries are translated at actual exchange rates when known, or at the average rate for the period. As a result, amounts related to assets and liabilities reported in the consolidated statements of cash flows will not agree to changes in the corresponding balances in the consolidated balance sheets. The effects of exchange rate changes on cash balances held in foreign currencies are reported as a separate line item below cash flows from financing activities. | ||||||||||||
In September 2010, our German subsidiary, DYNAenergetics, entered into a currency swap agreement with its bank to economically hedge the currency risk associated with a large U.S. dollar order ($2,700) that was awarded to it. Under the agreement, DYNAenergetics agreed to exchange $2,700 for Euros at an exchange rate of 1.269 U.S. dollars per Euros between January 18, 2011 and April 30, 2011. We did not designate this derivative as a cash flow hedge for accounting purposes and as such, gains and losses related to changes in its valuation were recorded in the statement of operations. During the year ended December 31, 2011 we recorded gains on this currency swap agreement of $87. These gains are classified as other income (expense), net in our statement of operations. | ||||||||||||
In September 2011, DYNAenergetics entered into a new currency hedge agreement with its bank to hedge its risk on a new $2,500 order which is similar to the order described above. This hedge agreement, which was amended in December 2011, allowed DYNAenergetics to sell $2,500 for Euros at an exchange rate of 1.425 U.S. dollars per Euros if the market rate was under 1.25 or above 1.425 at the time of settlement. If the market rate upon settlement was between 1.25 and 1.425, the market rate would be used. The only exception to this would have been if the market exchange rate dropped below 1.25 any time prior to the settlement in which case the rate upon settlement would have been 1.425 even if the exchange rate subsequently rose back above 1.25 prior to settlement. As the market rate never went below 1.25 nor exceeded 1.425 at the time of settlement, the market rate was used at settlement. This hedge agreement expired on May 3, 2012. We did not designate this derivative as a cash flow hedge for accounting purposes and as such, gains and losses related to changes in its valuation were recorded in the statement of operations. | ||||||||||||
Cash and Cash Equivalents and Restricted Cash | ' | |||||||||||
Cash and Cash Equivalents and Restricted Cash | ||||||||||||
For purposes of the consolidated financial statements, we consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
We review our accounts receivable balance routinely to identify any specific customers with collectability issues. In circumstances where we are aware of a specific customer’s inability to meets its financial obligation to us, we record a specific allowance for doubtful accounts (with the offsetting expense charged to our statement of operations) against the amounts due reducing the net recognized receivable to the amount we estimate will be collected. | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
Inventories are stated at the lower-of-cost (first-in, first-out) or market value. Cost elements included in inventory are material, labor, subcontract costs, and manufacturing overhead. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine reserve amounts, we regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. | ||||||||||||
Comprehensive reviews of DynaEnergetics' inventories were performed throughout 2013 to identify potentially excess, slow moving and obsolete inventory items. These reviews reflected management's efforts to reduce overall inventory levels and rationalize product line offerings. Additionally, our estimate for reserving, or writing-off, inventory changed from a combination of qualitative and quantitative considerations to a more specific quantitative analysis whereby inventory items which have not had sales for a certain duration are written-off after a prescribed period. | ||||||||||||
In 2013 we changed our inventory management philosophy and intend to aggressively reduce our investment in inventory. In connection with this philosophy, we identified certain inventories that we intend to liquidate and therefore revised our assumptions for calculating estimated inventory reserves, resulting in a change in estimate. We determined that our December 31, 2013 inventory reserves for our DynaEnergetics business segment should be increased by $1,800 to adequately provide for estimated requirements and recorded corresponding expense of $1,800 ($1,218, net of tax) in cost of products sold in our 2013 consolidated statement of operations. The impact of this change in estimate reduced earnings per share by $0.09 per share (basic and diluted) for the year ended December 31, 2013. | ||||||||||||
Inventories, net of reserves of $1,729 and $337 and most of which related to finished goods, consist of the following at December 31, 2013 and 2012 respectively: | ||||||||||||
2013 | 2012 | |||||||||||
Raw materials | $ | 13,122 | $ | 16,079 | ||||||||
Work-in-process | 10,188 | 12,133 | ||||||||||
Finished goods | 17,273 | 19,155 | ||||||||||
Supplies | 967 | 953 | ||||||||||
$ | 41,550 | $ | 48,320 | |||||||||
Shipping and handling costs incurred by us upon shipment to customers are included in cost of products sold in the accompanying consolidated statements of operations. | ||||||||||||
Property, Plant and Equipment | ' | |||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are recorded at cost, except for assets acquired in acquisitions which are recorded at fair value. Additions, improvements, and betterments are capitalized. Maintenance and repairs are charged to operations as the costs are incurred. Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: | ||||||||||||
Buildings and improvements | 15-30 years | |||||||||||
Manufacturing equipment and tooling | 3-15 years | |||||||||||
Furniture, fixtures, and computer equipment | 3-10 years | |||||||||||
Other | 3-10 years | |||||||||||
Property, plant and equipment consist of the following at December 31, 2013 and 2012: | ||||||||||||
2013 | 2012 | |||||||||||
Land | $ | 2,864 | $ | 2,792 | ||||||||
Buildings and improvements | 34,147 | 24,203 | ||||||||||
Manufacturing equipment and tooling | 44,286 | 39,073 | ||||||||||
Furniture, fixtures and computer equipment | 14,254 | 7,148 | ||||||||||
Other | 4,948 | 3,534 | ||||||||||
Construction in process | $ | 7,303 | $ | 13,871 | ||||||||
$ | 107,802 | $ | 90,621 | |||||||||
Asset Impairments | ' | |||||||||||
Asset Impairments | ||||||||||||
Finite-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We compare the expected undiscounted future operating cash flows associated with these finite-lived assets to their respective carrying values to determine if they are fully recoverable. If the expected future operating cash flows of an asset are not sufficient to recover the carrying value, we estimate the fair value of the asset. Impairment is recognized when the carrying amount of the asset is not recoverable and when carrying value exceeds fair value. Long-lived assets to be disposed of, if any, are reported at the lower of carrying amount or fair value less cost to sell. | ||||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. The carrying value of goodwill is periodically reviewed for impairment (at a minimum annually) and whenever events or changes in circumstances indicate that the carrying amount of this asset may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include significant negative industry or economic trends, significant changes in the manner of our use of the acquired assets or our strategy, a significant decrease in the market value of the asset, and a significant change in legal factors or in the business climate that could affect the value of the asset. | ||||||||||||
We test goodwill for impairment by first performing a qualitative evaluation. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We may elect to bypass this qualitative assessment for certain of our reporting units and perform a two-step quantitative test. | ||||||||||||
Our reporting units for goodwill impairment testing are currently the same as our operating divisions and reportable business segments: NobelClad, DynaEnergetics and AMK Technical Services. Each of these three business segments represent separately managed strategic business units and our chief operating decision maker reviews financial results and evaluates operating performance at this level. | ||||||||||||
Our annual goodwill impairment testing for 2013 was completed as of December 31, 2013 for our NobelClad and DynaEnergetics reporting units (AMK Technical Services has no recorded goodwill). For NobelClad, which has been our core business segment for more than 40 years, we performed a qualitative assessment to test this reporting unit’s goodwill for impairment. For our DynaEnergetics reporting unit, which was initially established through a 2007 acquisition and has grown through subsequent acquisitions completed in 2009, 2010 and 2012, we elected to perform quantitative testing. Our quantitative testing utilized both an income approach (discounted cash flows) and a market approach consisting of a comparable public company earnings multiples methodology to estimate the fair value of this reporting unit. To determine the reasonableness of the estimated fair values, we carefully reviewed our assumptions to ensure that neither the income approach nor the market approach provided a significantly different valuation. | ||||||||||||
If the carrying value were to exceed the fair value for any reporting unit, we would then calculate and compare the estimated implied fair value of goodwill to the carrying amount of goodwill and record an impairment charge for any excess of carrying value over implied fair value. Our most recent impairment testing has resulted in a determination that the carrying value of goodwill did not exceed fair value and, consequently, that our goodwill was not impaired. A future impairment is possible and could occur if (i) operating results underperform what we have estimated or (ii) additional volatility of the capital markets or other factors should cause us to raise the discount rate percentage utilized in our discounted cash flow analysis or decrease the multiples utilized in our market-based analysis. While we believe our most recent estimates were appropriate based on our view of then current business trends, no assurance can be provided that impairment charges will not be required in the future. | ||||||||||||
The changes to the carrying amount of goodwill during the period are summarized below: | ||||||||||||
NobelClad | DynaEnergetics | Total | ||||||||||
Goodwill balance at December 31, 2011 | $ | 21,637 | $ | 15,870 | $ | 37,507 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | $ | (322 | ) | $ | (485 | ) | $ | (807 | ) | |||
Adjustment due to exchange rate differences | $ | 419 | $ | 312 | $ | 731 | ||||||
Goodwill balance at December 31, 2012 | $ | 21,734 | $ | 15,697 | $ | 37,431 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (353 | ) | (598 | ) | (951 | ) | ||||||
Adjustment due to exchange rate differences | 857 | 633 | 1,490 | |||||||||
Goodwill balance at December 31, 2013 | $ | 22,238 | $ | 15,732 | $ | 37,970 | ||||||
All of the goodwill shown above, which is primarily in Germany, is amortizable goodwill for tax purposes. | ||||||||||||
Purchased Intangible Assets | ' | |||||||||||
Purchased Intangible Assets | ||||||||||||
Our purchased intangible assets include core technology, customer relationships and trademarks/trade names. Impairment, if any, is calculated based upon our evaluation whereby, estimated undiscounted future cash flows associated with these assets or operations are compared with their carrying value to determine if a write-down to fair value is required. Finite lived intangible assets are amortized over the estimated useful life of the related assets which have a weighted average amortization period of 12 years in total. | ||||||||||||
The weighted average amortization periods of the intangible assets by asset category are as follows: | ||||||||||||
Core technology | 20 years | |||||||||||
Customer relationships | 9 years | |||||||||||
Trademarks / Trade names | 9 years | |||||||||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2013: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 23,391 | $ | (7,155 | ) | $ | 16,236 | |||||
Customer relationships | 45,269 | (25,813 | ) | 19,456 | ||||||||
Trademarks / Trade names | 2,510 | (1,744 | ) | 766 | ||||||||
Total intangible assets | $ | 71,170 | $ | (34,712 | ) | $ | 36,458 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2012: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,494 | $ | (5,749 | ) | $ | 16,745 | |||||
Customer relationships | 44,334 | (20,046 | ) | 24,288 | ||||||||
Trademarks / Trade names | 2,409 | (1,484 | ) | 925 | ||||||||
Total intangible assets | $ | 69,237 | $ | (27,279 | ) | $ | 41,958 | |||||
The change in the gross value of our purchased intangible assets from December 31, 2012 to December 31, 2013 is due solely to the impact of foreign currency translation adjustments. | ||||||||||||
Expected future amortization of intangible assets is as follows: | ||||||||||||
For the years ended December 31 - | ||||||||||||
2014 | $ | 6,289 | ||||||||||
2015 | 4,776 | |||||||||||
2016 | 4,776 | |||||||||||
2017 | 4,751 | |||||||||||
2018 | 3,468 | |||||||||||
Thereafter | 12,398 | |||||||||||
$ | 36,458 | |||||||||||
Other Assets | ' | |||||||||||
Other Assets | ||||||||||||
Included in other assets are net deferred debt issuance costs of $305 and $406 as of December 31, 2013 and 2012, respectively. On December 21, 2011, we entered into a new five-year syndicated credit agreement, which amended and restated in its entirety the prior syndicated agreement entered into on November 16, 2007. In connection with this amendment, $284 of costs associated with the prior term loan and the banks which are no longer in the syndicate were expensed. The outstanding balance of deferred debt issuance as of December 31, 2011 included additional costs of $435 that were incurred in connection with our amended and restated credit agreement and $95 of deferred debt issuance costs that were carried over from the prior agreement. These deferred debt issuance are being amortized over the five-year term of the amended and restated credit agreement which expires on December 21, 2016. | ||||||||||||
Customer Advances | ' | |||||||||||
Customer Advances | ||||||||||||
On occasion, we require customers to make advance payments prior to the shipment of their orders in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
Sales of clad metal products and welding services are generally based upon customer specifications set forth in customer purchase orders and require us to provide certifications relative to metals used, services performed, and the results of any non-destructive testing that the customer has requested be performed. All issues of conformity of the product to specifications are resolved before the product is shipped and billed. Products related to the DynaEnergetics segment, which include detonating cords, detonators, bi-directional boosters, and shaped charges, as well as, seismic related explosives and accessories, are standard in nature. In all cases, revenue is recognized only when all four of the following criteria have been satisfied: persuasive evidence of an arrangement exists; the price is fixed or determinable; delivery has occurred; and collection is reasonably assured. For contracts that require multiple shipments, revenue is recorded only for the units included in each individual shipment. If, as a contract proceeds toward completion, projected total cost on an individual contract indicates a probable loss, we will account for such anticipated loss. Revenue from sales of consigned inventory is recognized upon the use of the product by the consignee or according to the terms of the contract. | ||||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ||||||||||||
Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards (“RSAs”), are considered participating securities for purposes of calculating earnings per share (“EPS”) and require the use of the two class method for calculating EPS. Under this method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below. | ||||||||||||
Computation and reconciliation of earnings per common share are as follows: | ||||||||||||
For the Year Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 7,495 | ||||||||||
Less income allocated to RSAs | (119 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,376 | 13,533,566 | $ | 0.55 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 3,959 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 7,495 | ||||||||||
Less income allocated to RSAs | (119 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,376 | 13,537,525 | $ | 0.54 | |||||||
For the Year Ended | ||||||||||||
December 31, 2012 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 11,696 | ||||||||||
Less income allocated to RSAs | (211 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 11,485 | 13,264,636 | $ | 0.87 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 4,077 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 11,696 | ||||||||||
Less income allocated to RSAs | (211 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 11,485 | 13,268,713 | $ | 0.87 | |||||||
For the Year Ended | ||||||||||||
December 31, 2011 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 12,491 | ||||||||||
Less income allocated to RSAs | (246 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 12,245 | 13,089,691 | $ | 0.94 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 9,430 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 12,491 | ||||||||||
Less income allocated to RSAs | (246 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 12,245 | 13,099,121 | $ | 0.93 | |||||||
Fair Value of Financial Instruments | ' | |||||||||||
Fair Value of Financial Instruments | ||||||||||||
The carrying values of cash and cash equivalents, trade accounts receivable and payable, accrued expenses, lines of credit and long-term debt approximate their fair value. | ||||||||||||
We had two foreign currency hedge agreements, which expired on April 30, 2011 and May 3, 2012, that were recorded at fair value. Fair value is defined as 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. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: | ||||||||||||
· Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. | ||||||||||||
· Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. | ||||||||||||
· Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. | ||||||||||||
The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. | ||||||||||||
Our foreign currency hedge agreements were not exchange listed and were therefore valued with models that use Level 2 inputs. | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities based on enacted tax laws and for tax credits. We recognize deferred tax assets for the expected future effects of all deductible temporary differences. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits which, more likely than not based on current circumstances, are not expected to be realized (see Note 6). | ||||||||||||
Concentration of Credit Risk and Off Balance Sheet Arrangements | ' | |||||||||||
Concentration of Credit Risk and Off Balance Sheet Arrangements | ||||||||||||
Financial instruments, which potentially subject us to a concentration of credit risk, consist primarily of cash, cash equivalents, and accounts receivable. Generally, we do not require collateral to secure receivables. At December 31, 2013, we had no financial instruments with off-balance sheet risk of accounting losses other than the derivative discussed above. | ||||||||||||
Other Cumulative Comprehensive Loss | ' | |||||||||||
Other Cumulative Comprehensive Loss | ||||||||||||
Other cumulative comprehensive loss as of December 31, 2013, 2012, and 2011 consisted entirely of currency translation adjustments. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent Accounting Pronouncements | ||||||||||||
In February 2013, the Financial Accounting Standards Board issued an accounting standards update which requires an entity to disclose amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This accounting standards update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this update did not have a material impact on our financial statements. | ||||||||||||
Reclassifications | ' | |||||||||||
Reclassifications | ||||||||||||
Certain prior year balances in the consolidated financial statements and notes have been reclassified to conform to the 2013 presentation. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Schedule of components of inventory | ' | |||||||||||
Inventories, net of reserves of $1,729 and $337 and most of which related to finished goods, consist of the following at December 31, 2013 and 2012 respectively: | ||||||||||||
2013 | 2012 | |||||||||||
Raw materials | $ | 13,122 | $ | 16,079 | ||||||||
Work-in-process | 10,188 | 12,133 | ||||||||||
Finished goods | 17,273 | 19,155 | ||||||||||
Supplies | 967 | 953 | ||||||||||
$ | 41,550 | $ | 48,320 | |||||||||
Schedule of property, plant and equipment | ' | |||||||||||
Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: | ||||||||||||
Buildings and improvements | 15-30 years | |||||||||||
Manufacturing equipment and tooling | 3-15 years | |||||||||||
Furniture, fixtures, and computer equipment | 3-10 years | |||||||||||
Other | 3-10 years | |||||||||||
Property, plant and equipment consist of the following at December 31, 2013 and 2012: | ||||||||||||
2013 | 2012 | |||||||||||
Land | $ | 2,864 | $ | 2,792 | ||||||||
Buildings and improvements | 34,147 | 24,203 | ||||||||||
Manufacturing equipment and tooling | 44,286 | 39,073 | ||||||||||
Furniture, fixtures and computer equipment | 14,254 | 7,148 | ||||||||||
Other | 4,948 | 3,534 | ||||||||||
Construction in process | $ | 7,303 | $ | 13,871 | ||||||||
$ | 107,802 | $ | 90,621 | |||||||||
Schedule of Goodwill | ' | |||||||||||
The changes to the carrying amount of goodwill during the period are summarized below: | ||||||||||||
NobelClad | DynaEnergetics | Total | ||||||||||
Goodwill balance at December 31, 2011 | $ | 21,637 | $ | 15,870 | $ | 37,507 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | $ | (322 | ) | $ | (485 | ) | $ | (807 | ) | |||
Adjustment due to exchange rate differences | $ | 419 | $ | 312 | $ | 731 | ||||||
Goodwill balance at December 31, 2012 | $ | 21,734 | $ | 15,697 | $ | 37,431 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (353 | ) | (598 | ) | (951 | ) | ||||||
Adjustment due to exchange rate differences | 857 | 633 | 1,490 | |||||||||
Goodwill balance at December 31, 2013 | $ | 22,238 | $ | 15,732 | $ | 37,970 | ||||||
Schedule of Finite-Lived Intangible Assets | ' | |||||||||||
The weighted average amortization periods of the intangible assets by asset category are as follows: | ||||||||||||
Core technology | 20 years | |||||||||||
Customer relationships | 9 years | |||||||||||
Trademarks / Trade names | 9 years | |||||||||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2013: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 23,391 | $ | (7,155 | ) | $ | 16,236 | |||||
Customer relationships | 45,269 | (25,813 | ) | 19,456 | ||||||||
Trademarks / Trade names | 2,510 | (1,744 | ) | 766 | ||||||||
Total intangible assets | $ | 71,170 | $ | (34,712 | ) | $ | 36,458 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2012: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,494 | $ | (5,749 | ) | $ | 16,745 | |||||
Customer relationships | 44,334 | (20,046 | ) | 24,288 | ||||||||
Trademarks / Trade names | 2,409 | (1,484 | ) | 925 | ||||||||
Total intangible assets | $ | 69,237 | $ | (27,279 | ) | $ | 41,958 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||
Expected future amortization of intangible assets is as follows: | ||||||||||||
For the years ended December 31 - | ||||||||||||
2014 | $ | 6,289 | ||||||||||
2015 | 4,776 | |||||||||||
2016 | 4,776 | |||||||||||
2017 | 4,751 | |||||||||||
2018 | 3,468 | |||||||||||
Thereafter | 12,398 | |||||||||||
$ | 36,458 | |||||||||||
Schedule of computation and reconciliation of earnings per common share | ' | |||||||||||
Computation and reconciliation of earnings per common share are as follows: | ||||||||||||
For the Year Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 7,495 | ||||||||||
Less income allocated to RSAs | (119 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,376 | 13,533,566 | $ | 0.55 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 3,959 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 7,495 | ||||||||||
Less income allocated to RSAs | (119 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,376 | 13,537,525 | $ | 0.54 | |||||||
For the Year Ended | ||||||||||||
December 31, 2012 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 11,696 | ||||||||||
Less income allocated to RSAs | (211 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 11,485 | 13,264,636 | $ | 0.87 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 4,077 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 11,696 | ||||||||||
Less income allocated to RSAs | (211 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 11,485 | 13,268,713 | $ | 0.87 | |||||||
For the Year Ended | ||||||||||||
December 31, 2011 | ||||||||||||
Income | Shares | EPS | ||||||||||
Basic earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 12,491 | ||||||||||
Less income allocated to RSAs | (246 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 12,245 | 13,089,691 | $ | 0.94 | |||||||
Adjust shares for dilutives: | ||||||||||||
Stock-based compensation plans | 9,430 | |||||||||||
Diluted earnings per share: | ||||||||||||
Net income attributable to DMC | $ | 12,491 | ||||||||||
Less income allocated to RSAs | (246 | ) | ||||||||||
Net income allocated to common stock for EPS calculation | $ | 12,245 | 13,099,121 | $ | 0.93 | |||||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of allocation of the purchase price | ' | |||
The allocation of the purchase price to the assets of TRX was as follows: | ||||
Current assets | $ | 2,702 | ||
Property, plant and equipment | 2,227 | |||
Intangible assets | 5,365 | |||
Deferred tax assets | 40 | |||
Total assets acquired | 10,334 | |||
Current liabilities | 40 | |||
Total liabilities assumed | 40 | |||
Net assets acquired | $ | 10,294 | ||
Pro Forma Information | ' | |||
(Unaudited) | ||||
For the Year Ended | ||||
31-Dec-11 | ||||
Net sales | $ | 216,014 | ||
Income from operations | $ | 20,022 | ||
Net income attributable to DMC | $ | 13,549 | ||
Net income per share: | ||||
Basic | $ | 1.01 | ||
Diluted | $ | 1.01 | ||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of lines of credit | ' | |||||||
Lines of credit consisted of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Syndicated credit agreement: | ||||||||
U.S. Dollar revolving loan | $ | 26,400 | $ | 31,900 | ||||
Euro revolving loan | — | 4,625 | ||||||
Canadian Dollar revolving loan | — | 1,254 | ||||||
Commerzbank line of credit | 2,856 | 981 | ||||||
29,256 | 38,760 | |||||||
Less current portion | (2,856 | ) | (981 | ) | ||||
Long-term lines of credit | $ | 26,400 | $ | 37,779 | ||||
Schedule of long-term debt | ' | |||||||
Long-term debt consisted of the following at December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Loans with former owners of LRI | $ | 51 | $ | 120 | ||||
Less current maturities | (51 | ) | (65 | ) | ||||
Long-term debt | $ | — | $ | 55 | ||||
STOCK_OWNERSHIP_AND_BENEFIT_PL1
STOCK OWNERSHIP AND BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of total stock-based compensation expense | ' | |||||||||||||
The following table sets forth the total stock-based compensation expense included in the Consolidated Statements of Operations: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Cost of products sold | $ | 304 | $ | 324 | $ | 261 | ||||||||
General and administrative expenses | 2,913 | 3,018 | 2,431 | |||||||||||
Selling and distribution expenses | 184 | 1,101 | 705 | |||||||||||
Stock-based compensation expense before income taxes | 3,401 | 4,443 | 3,397 | |||||||||||
Income tax benefit | (990 | ) | (864 | ) | (918 | ) | ||||||||
Stock-based compensation expense, net of income taxes | $ | 2,411 | $ | 3,579 | $ | 2,479 | ||||||||
Earnings per share impact: | ||||||||||||||
Basic - net income | $ | 0.18 | $ | 0.27 | $ | 0.19 | ||||||||
Diluted - net income | $ | 0.18 | $ | 0.27 | $ | 0.19 | ||||||||
Summary of the activity of nonvested shares of restricted stock | ' | |||||||||||||
A summary of the activity of our nonvested shares of restricted stock issued under the 2006 Plan for the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Balance at December 31, 2010 | 237,489 | $ | 32.82 | |||||||||||
Granted | 116,500 | 20.9 | ||||||||||||
Vested | (90,660 | ) | 24.16 | |||||||||||
Forfeited | (1,500 | ) | 18.79 | |||||||||||
Balance at December 31, 2011 | 261,829 | $ | 30.59 | |||||||||||
Granted | 116,900 | 20.74 | ||||||||||||
Vested | (136,344 | ) | 27.2 | |||||||||||
Balance at December 31, 2012 | 242,385 | $ | 27.75 | |||||||||||
Granted | 163,579 | 16.37 | ||||||||||||
Vested | (216,851 | ) | 27.95 | |||||||||||
Forfeited | (2,000 | ) | 22.05 | |||||||||||
Balance at December 31, 2013 | 187,113 | $ | 17.63 | |||||||||||
Summary of the activity of nonvested restricted stock units | ' | |||||||||||||
A summary of the activity of our nonvested restricted stock units for the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||||
Share | Weighted Average | |||||||||||||
Units | Grant Date | |||||||||||||
Fair Value | ||||||||||||||
Balance at December 31, 2010 | 34,583 | $ | 19.59 | |||||||||||
Granted | 32,500 | 20.45 | ||||||||||||
Vested | (13,085 | ) | 18.24 | |||||||||||
Balance at December 31, 2011 | 53,998 | $ | 20.43 | |||||||||||
Granted | 50,200 | 20.44 | ||||||||||||
Vested | (20,769 | ) | 20.43 | |||||||||||
Forfeited | (3,000 | ) | 21.15 | |||||||||||
Balance at December 31, 2012 | 80,429 | $ | 20.41 | |||||||||||
Granted | 56,217 | 15.67 | ||||||||||||
Vested | (35,001 | ) | 20.88 | |||||||||||
Forfeited | (2,300 | ) | 19.01 | |||||||||||
Balance at December 31, 2013 | 99,345 | $ | 17.59 | |||||||||||
Summary of stock option activity | ' | |||||||||||||
A summary of stock option activity for the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual Term | |||||||||||||
Balance at December 31, 2010 | 19,700 | $ | 12.74 | |||||||||||
Exercised | (4,200 | ) | 4.71 | |||||||||||
Balance at December 31, 2011 | 15,500 | $ | 14.92 | |||||||||||
Exercised | — | — | ||||||||||||
Balance at December 31, 2012 | 15,500 | $ | 14.92 | |||||||||||
Exercised | (1,500 | ) | 3.72 | |||||||||||
Balance at December 31, 2013 | 14,000 | $ | 16.12 | 1.32 | $ | 79 | ||||||||
Exercisable at December 31, 2013 | 14,000 | $ | 16.12 | 1.32 | $ | 79 | ||||||||
Summary of information about employee stock options outstanding and exercisable | ' | |||||||||||||
The following table summarizes information about employee stock options outstanding and exercisable at December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Number of Options | Average | |||||||||||||
Outstanding and | Remaining | Weighted | ||||||||||||
Exercisable at | Contractual Life | Average | ||||||||||||
Exercise Prices | 31-Dec-13 | in Years | Exercise Price | |||||||||||
$4.87 | 4,000 | 1.06 | $ | 4.87 | ||||||||||
$20.62 | 10,000 | 1.42 | $ | 20.62 | ||||||||||
14,000 | 1.32 | $ | 16.12 | |||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of domestic and foreign components of income before tax for operations | ' | ||||||||||||
The domestic and foreign components of income before tax for our operations for the years ended December 31 are summarized below: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 7,058 | $ | 7,716 | $ | 12,550 | |||||||
Foreign | 3,470 | 8,836 | 4,260 | ||||||||||
$ | 10,528 | $ | 16,552 | $ | 16,810 | ||||||||
Schedule of components of the provision for income taxes | ' | ||||||||||||
The components of the provision for income taxes for the years ended December 31 are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current - Federal | $ | 1,585 | $ | 3,774 | $ | 4,260 | |||||||
Current - State | 94 | 148 | 137 | ||||||||||
Current - Foreign | 3,029 | 2,203 | 1,559 | ||||||||||
Current income tax expense | 4,708 | 6,125 | 5,956 | ||||||||||
Deferred - Federal | (390 | ) | (314 | ) | (295 | ) | |||||||
Deferred - State | (86 | ) | (21 | ) | (24 | ) | |||||||
Deferred - Foreign | |||||||||||||
Net operating losses | 623 | 176 | 71 | ||||||||||
Other | (1,914 | ) | (1,108 | ) | (1,339 | ) | |||||||
Deferred income tax benefit | (1,767 | ) | (1,267 | ) | (1,587 | ) | |||||||
Income tax provision | $ | 2,941 | $ | 4,858 | $ | 4,369 | |||||||
Schedule of reconciliation of income tax provision | ' | ||||||||||||
A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 35% in December 31, 2013, 2012, and 2011 to income before taxes for the years ended December 31 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax at statutory rate | $ | 3,652 | $ | 5,793 | $ | 5,900 | |||||||
State and local tax items not included below, net | 815 | 431 | 209 | ||||||||||
Effect of difference between U.S. Federal and foreign tax rates | (1,655 | ) | (1,459 | ) | (554 | ) | |||||||
Permanent differences: | |||||||||||||
Foreign interest expense | (434 | ) | (859 | ) | (784 | ) | |||||||
U.S. manufacturing tax deduction | (224 | ) | (356 | ) | (414 | ) | |||||||
German tax audit settlement | 812 | — | — | ||||||||||
Deemed repatriation of foreign earnings | (914 | ) | 914 | — | |||||||||
Intercompany distributions | 1,250 | — | — | ||||||||||
Foreign equity compensation | 228 | 247 | 196 | ||||||||||
Other | 165 | 79 | 83 | ||||||||||
Current year tax credits | (649 | ) | (29 | ) | (142 | ) | |||||||
Impact of statutory tax rate change | (6 | ) | 198 | (31 | ) | ||||||||
Other | (99 | ) | (101 | ) | (94 | ) | |||||||
Provision for income taxes | $ | 2,941 | $ | 4,858 | $ | 4,369 | |||||||
Schedule of deferred tax assets and liabilities | ' | ||||||||||||
Our deferred tax assets and liabilities at December 31, 2013 and 2012 consist of the following: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Income tax credit carryforward | $ | 50 | $ | 584 | |||||||||
Net foreign operating loss carryforward | 5,396 | 6,019 | |||||||||||
Inventory differences | 2,424 | 1,451 | |||||||||||
Allowance for doubtful accounts | 105 | 113 | |||||||||||
Equity compensation | 556 | 1,703 | |||||||||||
Vacation and other compensation accrual | 374 | 420 | |||||||||||
Investment in subsidiaries | 1,154 | — | |||||||||||
Other, net | 175 | 21 | |||||||||||
Deferred tax assets | 10,234 | 10,311 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Purchased intangible assets | (12,445 | ) | (13,257 | ) | |||||||||
Depreciation and amortization | (2,315 | ) | (2,097 | ) | |||||||||
Investment in partnerships | — | (1,129 | ) | ||||||||||
Deferred profit | (244 | ) | (236 | ) | |||||||||
Other, net | — | (74 | ) | ||||||||||
Deferred tax liabilities | (15,004 | ) | (16,793 | ) | |||||||||
Net deferred tax liabilities | $ | (4,770 | ) | $ | (6,482 | ) | |||||||
Current deferred tax assets | $ | 3,507 | $ | 2,074 | |||||||||
Current deferred tax liabilities | (435 | ) | (149 | ) | |||||||||
Long-term deferred tax assets | 505 | 804 | |||||||||||
Long-term deferred tax liabilities | (8,347 | ) | (9,211 | ) | |||||||||
Net deferred tax liabilities | $ | (4,770 | ) | $ | (6,482 | ) |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of segment information | ' | ||||||||||||
Segment information is presented for the years ended December 31, 2013, 2012, and 2011 as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
NobelClad | $ | 118,409 | $ | 115,333 | $ | 126,199 | |||||||
DynaEnergetics | 83,651 | 77,404 | 72,782 | ||||||||||
AMK Technical Services | 7,513 | 8,830 | 9,910 | ||||||||||
Consolidated net sales | $ | 209,573 | $ | 201,567 | $ | 208,891 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before income taxes: | |||||||||||||
NobelClad | $ | 17,090 | $ | 17,439 | $ | 16,058 | |||||||
DynaEnergetics | 4,849 | 7,047 | 6,188 | ||||||||||
AMK Technical Services | 376 | 925 | 2,056 | ||||||||||
Segment operating income | 22,315 | 25,411 | 24,302 | ||||||||||
Unallocated corporate expenses | (7,217 | ) | (3,565 | ) | (2,686 | ) | |||||||
Stock-based compensation | (3,401 | ) | (4,443 | ) | (3,397 | ) | |||||||
Other income (expense) | (528 | ) | (32 | ) | 528 | ||||||||
Interest expense | (648 | ) | (832 | ) | (1,945 | ) | |||||||
Interest income | 7 | 13 | 8 | ||||||||||
Consolidated income before income taxes | $ | 10,528 | $ | 16,552 | $ | 16,810 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation and Amortization: | |||||||||||||
NobelClad | $ | 6,118 | $ | 5,580 | $ | 5,833 | |||||||
DynaEnergetics | 6,125 | 5,631 | 4,877 | ||||||||||
AMK Technical Services | 652 | 536 | 489 | ||||||||||
Segment depreciation and amortization | $ | 12,895 | $ | 11,747 | $ | 11,199 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capital Expenditures: | |||||||||||||
NobelClad | $ | 2,425 | $ | 4,747 | $ | 4,338 | |||||||
DynaEnergetics | 13,022 | 10,386 | 2,904 | ||||||||||
AMK Technical Services | 1,342 | 514 | 484 | ||||||||||
Segment capital expenditures | 16,789 | 15,647 | 7,726 | ||||||||||
Corporate and other | 776 | — | — | ||||||||||
Consolidated capital expenditures | $ | 17,565 | $ | 15,647 | $ | 7,726 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Assets: | |||||||||||||
NobelClad | $ | 99,115 | $ | 100,227 | $ | 102,473 | |||||||
DynaEnergetics | 112,919 | 112,319 | 92,070 | ||||||||||
AMK Technical Services | 6,090 | 6,120 | 6,006 | ||||||||||
Segment assets | 218,124 | 218,666 | 200,549 | ||||||||||
Cash and cash equivalents | 10,617 | 8,200 | 5,276 | ||||||||||
Prepaid expenses and other assets | 6,275 | 5,687 | 5,647 | ||||||||||
Deferred tax assets | 4,012 | 2,878 | 1,954 | ||||||||||
Corporate property, plant and equipment | 1,584 | — | — | ||||||||||
Consolidated assets | $ | 240,612 | $ | 235,431 | $ | 213,426 | |||||||
Schedule of geographic location of property, plant and equipment, net of accumulated depreciation | ' | ||||||||||||
The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 33,301 | $ | 28,248 | $ | 21,810 | |||||||
Germany | 12,703 | 11,319 | 9,924 | ||||||||||
Russia | 10,152 | 5,351 | 387 | ||||||||||
France | 5,801 | 5,912 | 5,767 | ||||||||||
Canada | 2,230 | 2,136 | 2,339 | ||||||||||
Kazakhstan | 438 | 525 | 550 | ||||||||||
Rest of the world | 390 | 485 | 625 | ||||||||||
Total | $ | 65,015 | $ | 53,976 | $ | 41,402 | |||||||
Schedule of net sales based on the geographic location of the customer | ' | ||||||||||||
The following represents our net sales based on the geographic location of the customer: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 95,214 | $ | 78,676 | $ | 81,410 | |||||||
Canada | 18,150 | 21,083 | 24,151 | ||||||||||
South Korea | 11,642 | 9,469 | 29,951 | ||||||||||
Germany | 9,208 | 13,992 | 12,960 | ||||||||||
India | 8,888 | 3,874 | 6,176 | ||||||||||
Russia | 5,992 | 6,472 | 8,658 | ||||||||||
France | 3,957 | 6,838 | 3,828 | ||||||||||
Kazakhstan | 2,513 | 2,359 | 32 | ||||||||||
China | 606 | 7,986 | 1,468 | ||||||||||
Rest of the world | 53,403 | 50,818 | 40,257 | ||||||||||
Total | $ | 209,573 | $ | 201,567 | $ | 208,891 | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of capitalized leased assets | ' | ||||||||
Details of capitalized leased assets as of December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Manufacturing equipment and tooling | $ | 304 | $ | 292 | |||||
Furniture, fixtures and computer equipment | 14 | — | |||||||
Total | 318 | 292 | |||||||
Less: Accumulated amortization | (290 | ) | (231 | ) | |||||
Net capitalized leased assets | $ | 28 | $ | 61 | |||||
Schedule of future minimum rental commitments under non-cancelable leases | ' | ||||||||
Future minimum rental commitments under non-cancelable leases are as follows: | |||||||||
Capital Leases | Operating Leases | ||||||||
Year ended December 31 - | |||||||||
2014 | $ | 25 | $ | 1,961 | |||||
2015 | 5 | 1,579 | |||||||
2016 | 3 | 1,084 | |||||||
2017 | — | 788 | |||||||
2018 | — | 764 | |||||||
Thereafter | — | 1,126 | |||||||
Total minimum payments | 33 | $ | 7,302 | ||||||
Amounts representing interest | (1 | ) | |||||||
Present value of net minimum lease payments | 32 | ||||||||
Current portion of capital lease obligations | (24 | ) | |||||||
Capital lease obligations | $ | 8 | |||||||
Schedule of future minimum payments required to be made under license agreement and risk allocation agreement | ' | ||||||||
Future minimum payments required to be made by us under these agreements are as follows: | |||||||||
Year ended December 31 - | |||||||||
2014 | $ | 398 | |||||||
2015 | 398 | ||||||||
2016 | 398 | ||||||||
2017 | 398 | ||||||||
2018 | 398 | ||||||||
Thereafter | — | ||||||||
Total minimum payments | $ | 1,990 | |||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of selected unaudited quarterly financial data | ' | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
Net sales | $ | 46,270 | $ | 57,859 | $ | 54,268 | $ | 51,176 | |||||||||
Gross profit | $ | 12,719 | $ | 17,063 | $ | 16,573 | $ | 13,159 | |||||||||
Net income | $ | 215 | $ | 3,440 | $ | 3,562 | $ | 278 | |||||||||
Net income per share - basic | $ | 0.02 | $ | 0.25 | $ | 0.26 | $ | 0.02 | |||||||||
Net income per share - diluted | $ | 0.02 | $ | 0.25 | $ | 0.26 | $ | 0.02 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
Net sales | $ | 50,212 | $ | 48,687 | $ | 50,149 | $ | 52,519 | |||||||||
Gross profit | $ | 14,377 | $ | 13,939 | $ | 15,349 | $ | 16,043 | |||||||||
Net income | $ | 2,428 | $ | 2,653 | $ | 3,754 | $ | 2,861 | |||||||||
Net income per share - basic | $ | 0.18 | $ | 0.2 | $ | 0.28 | $ | 0.21 | |||||||||
Net income per share - diluted | $ | 0.18 | $ | 0.2 | $ | 0.28 | $ | 0.21 | |||||||||
The net income per share for the 2013 and 2012 quarters, when totaled, does not equal net income per share for the respective years as the per share amounts for each quarter and for each year are computed based on their respective discrete periods. | |||||||||||||||||
ORGANIZATION_AND_BUSINESS_Deta
ORGANIZATION AND BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of business segments in which the entity currently operates | 3 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Inventory (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Raw materials | $13,122 | $16,079 |
Work-in-process | 10,188 | 12,133 |
Finished goods | 17,273 | 19,155 |
Supplies | 967 | 953 |
Inventory, Net | $41,550 | $48,320 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Land | Land | Buildings and improvements | Buildings and improvements | Buildings and improvements | Buildings and improvements | Manufacturing equipment and tooling | Manufacturing equipment and tooling | Manufacturing equipment and tooling | Manufacturing equipment and tooling | Furniture, fixtures and computer equipment | Furniture, fixtures and computer equipment | Furniture, fixtures and computer equipment | Furniture, fixtures and computer equipment | Other | Other | Other | Other | Construction in process | Construction in process | ||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||||||
Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | '15 years | '30 years | ' | ' | '3 years | '15 years | ' | ' | '3 years | '10 years | ' | ' | '3 years | '10 years | ' | ' |
Property, plant and equipment | $107,802 | $90,621 | $2,864 | $2,792 | $34,147 | $24,203 | ' | ' | $44,286 | $39,073 | ' | ' | $14,254 | $7,148 | ' | ' | $4,948 | $3,534 | ' | ' | $7,303 | $13,871 |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes to the carrying amount of goodwill | ' | ' |
Goodwill balance at the beginning of the period | $37,431 | $37,507 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -951 | -807 |
Adjustment due to exchange rate differences | 1,490 | 731 |
Goodwill balance at the end of the period | 37,970 | 37,431 |
NobelClad | ' | ' |
Changes to the carrying amount of goodwill | ' | ' |
Goodwill balance at the beginning of the period | 21,734 | 21,637 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -353 | -322 |
Adjustment due to exchange rate differences | 857 | 419 |
Goodwill balance at the end of the period | 22,238 | 21,734 |
DynaEnergetics | ' | ' |
Changes to the carrying amount of goodwill | ' | ' |
Goodwill balance at the beginning of the period | 15,697 | 15,870 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -598 | -485 |
Adjustment due to exchange rate differences | 633 | 312 |
Goodwill balance at the end of the period | $15,732 | $15,697 |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES - Purchased Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Purchased intangible assets | ' | ' |
Weighted average amortization period | '12 years | ' |
Gross | $71,170 | $69,237 |
Accumulated Amortization | -34,712 | -27,279 |
Net | 36,458 | 41,958 |
Expected future amortization of intangible assets | ' | ' |
2014 | 6,289 | ' |
2015 | 4,776 | ' |
2016 | 4,776 | ' |
2017 | 4,751 | ' |
2018 | 3,468 | ' |
Thereafter | 12,398 | ' |
Net | 36,458 | 41,958 |
Core technology | ' | ' |
Purchased intangible assets | ' | ' |
Weighted average amortization period | '20 years | ' |
Gross | 23,391 | 22,494 |
Accumulated Amortization | -7,155 | -5,749 |
Net | 16,236 | 16,745 |
Expected future amortization of intangible assets | ' | ' |
Net | 16,236 | 16,745 |
Customer relationships | ' | ' |
Purchased intangible assets | ' | ' |
Weighted average amortization period | '9 years | ' |
Gross | 45,269 | 44,334 |
Accumulated Amortization | -25,813 | -20,046 |
Net | 19,456 | 24,288 |
Expected future amortization of intangible assets | ' | ' |
Net | 19,456 | 24,288 |
Trademarks/ Trade names | ' | ' |
Purchased intangible assets | ' | ' |
Weighted average amortization period | '9 years | ' |
Gross | 2,510 | 2,409 |
Accumulated Amortization | -1,744 | -1,484 |
Net | 766 | 925 |
Expected future amortization of intangible assets | ' | ' |
Net | $766 | $925 |
SIGNIFICANT_ACCOUNTING_POLICIE7
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Computation and Reconciliation of Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to DMC | $278 | $3,562 | $3,440 | $215 | $2,861 | $3,754 | $2,653 | $2,428 | $7,495 | $11,696 | $12,491 |
Less income allocated to RSAs | ' | ' | ' | ' | ' | ' | ' | ' | -119 | -211 | -246 |
Net income allocated to common stock for EPS calculation | ' | ' | ' | ' | ' | ' | ' | ' | 7,376 | 11,485 | 12,245 |
Shares, basic | ' | ' | ' | ' | ' | ' | ' | ' | 13,533,566 | 13,264,636 | 13,089,691 |
EPS, basic (in dollars per share) | $0.02 | $0.26 | $0.25 | $0.02 | $0.21 | $0.28 | $0.20 | $0.18 | $0.55 | $0.87 | $0.94 |
Adjust shares for dilutives: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation plans (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 3,959 | 4,077 | 9,430 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to DMC | ' | ' | ' | ' | ' | ' | ' | ' | 7,495 | 11,696 | 12,491 |
Less income allocated to RSAs | ' | ' | ' | ' | ' | ' | ' | ' | -119 | -211 | -246 |
Net income allocated to common stock for EPS calculation | ' | ' | ' | ' | ' | ' | ' | ' | $7,376 | $11,485 | $12,245 |
Shares, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 13,537,525 | 13,268,713 | 13,099,121 |
EPS, diluted (in dollars per share) | $0.02 | $0.26 | $0.25 | $0.02 | $0.21 | $0.28 | $0.20 | $0.18 | $0.54 | $0.87 | $0.93 |
SIGNIFICANT_ACCOUNTING_POLICIE8
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 21, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2011 | Sep. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
Oilfield Products | NobelClad | Syndicated Credit Agreement Revolving Loan 2011 [Member] | Syndicated Credit Agreement Revolving Loan 2011 [Member] | Syndicated Credit Agreement Revolving Loan 2007 [Member] | General and administrative expenses | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | ||||
Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | ||||||||||
Minimum | Maximum | Market Exchange Rate Under 1.25 Prior to Settlement | Market Exchange Rate Under 1.25 Prior to Settlement | Market Exchange Rate Under 1.25 Prior to Settlement | Market Exchange Rate Above 1.425 | |||||||||||||
Maximum | Maximum | Minimum | ||||||||||||||||
Foreign Operations and Foreign Exchange Rate Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500 | $2,500 | $2,700 | ' | ' | ' | ' | ' | ' |
Derivative forward exchange rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.269 | ' | ' | 1.425 | ' | 1.425 | 1.425 |
Gains on derivative agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative exchange rate threshold prior to settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25 | 1.425 | 1.25 | 1.25 | ' | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in inventory reserves | ' | ' | ' | 1,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in inventory reserves, net of tax | ' | ' | ' | 1,218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in inventory reserves, effect on basic earnings per share | ' | ' | ' | ($0.09) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in inventory reserves, effect on diluted earnings per share | ' | ' | ' | ($0.09) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory valuation reserves | 1,729 | 337 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss | 756 | 0 | 0 | ' | ' | ' | ' | ' | 756 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years as core business segment | ' | ' | ' | ' | '40 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average amortization period | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net deferred debt issuance costs | 305 | 406 | ' | ' | ' | ' | 435 | 95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off of costs associated with the prior term loan and the banks which are no longer in the syndicate | ' | ' | ' | ' | ' | 284 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer Advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer advances | $1,025 | $1,363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 03, 2012 | Dec. 31, 2013 | Jan. 03, 2012 |
TRX | TRX | TRX | ||||
Customer relationships | Customer relationships | |||||
Acquisitions | ' | ' | ' | ' | ' | ' |
Cash paid for acquisition | $0 | $10,294 | $0 | $10,294 | ' | ' |
Allocation of the purchase price | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | 2,702 | ' | ' |
Property, plant and equipment | ' | ' | ' | 2,227 | ' | ' |
Intangible assets | ' | ' | ' | 5,365 | ' | 5,365 |
Deferred tax assets | ' | ' | ' | 40 | ' | ' |
Total assets acquired | ' | ' | ' | 10,334 | ' | ' |
Current liabilities | ' | ' | ' | 40 | ' | ' |
Total liabilities assumed | ' | ' | ' | 40 | ' | ' |
Net assets acquired | ' | ' | ' | 10,294 | ' | ' |
Amortization period | ' | ' | ' | ' | '6 years | ' |
Proceeds from debt issuance | ' | ' | ' | 10,000 | ' | ' |
Pro Forma Statements of Operations | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | 216,014 | ' | ' | ' |
Income from operations | ' | ' | 20,022 | ' | ' | ' |
Net income attributable to DMC | ' | ' | $13,549 | ' | ' | ' |
Net income per share: | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ' | ' | $1.01 | ' | ' | ' |
Diluted (in dollars per share) | ' | ' | $1.01 | ' | ' | ' |
DEBT_Schedule_of_Debt_Details
DEBT - Schedule of Debt (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2009 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Syndicated credit agreement, U.S. Dollar revolving loan | Syndicated credit agreement, U.S. Dollar revolving loan | Syndicated credit agreement, Euro revolving loan | Syndicated credit agreement, Euro revolving loan | Syndicated credit agreement, Canadian Dollar revolving loan | Syndicated credit agreement, Canadian Dollar revolving loan | Commerzbank line of credit | Commerzbank line of credit | Commerzbank line of credit | Loans with former owners of LRI | Loans with former owners of LRI | Loans with former owners of LRI | Loans with former owners of LRI |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | CAD | USD ($) | CAD | |||
Lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total lines of credit | $29,256 | $38,760 | $26,400 | $31,900 | $0 | $4,625 | $0 | $1,254 | $2,856 | € 2,075 | $981 | $51 | 55 | ' | ' |
Less current portion | -2,856 | -981 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term lines of credit | 26,400 | 37,779 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' | 120 | 1,332 |
Less current maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -51 | ' | -65 | ' |
Long-term debt | $0 | $55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $55 | ' |
DEBT_Narrative_Details
DEBT - Narrative (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2009 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | Credit facility | Syndicated credit agreement, U.S. Dollar revolving loan | Syndicated credit agreement, U.S. Dollar revolving loan | Syndicated credit agreement, U.S. Dollar revolving loan | Syndicated credit agreement, U.S. Dollar revolving loan | Syndicated credit agreement, Euro revolving loan | Syndicated credit agreement, Euro revolving loan | Syndicated credit agreement, Euro revolving loan | Syndicated credit agreement, Euro revolving loan | Syndicated credit agreement, Canadian Dollar revolving loan | Syndicated credit agreement, Canadian Dollar revolving loan | Syndicated credit agreement, Canadian Dollar revolving loan | Syndicated credit agreement, Canadian Dollar revolving loan | Commerzbank line of credit | Commerzbank line of credit | Commerzbank line of credit | Loans with former owners of LRI | Loans with former owners of LRI | Loans with former owners of LRI | Loans with former owners of LRI | Loans with former owners of LRI | |
USD ($) | USD ($) | ABR | LIBOR | USD ($) | EUR (€) | USD ($) | EURIBOR | USD ($) | CAD | USD ($) | CDOR | USD ($) | EUR (€) | USD ($) | CAD | CAD | USD ($) | CAD | USD ($) | ||||
installment | |||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | $36,000,000 | ' | ' | ' | ' | € 16,000,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | € 4,000,000 | ' | ' | ' | ' | ' | ' |
Basis spread on variable interest rate | ' | ' | ' | ' | ' | 0.00% | 1.25% | ' | ' | ' | 1.25% | ' | ' | ' | 1.50% | 3.85% | 3.85% | ' | ' | ' | 1.25% | 1.25% | ' |
Amount outstanding | 29,256,000 | 38,760,000 | ' | 26,400,000 | 31,900,000 | ' | ' | 0 | ' | 4,625,000 | ' | 0 | ' | 1,254,000 | ' | 2,856,000 | 2,075,000 | 981,000 | ' | ' | 51,000 | 55,000 | ' |
Interest rate at end of period | ' | ' | ' | 1.42% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25% | 4.25% | ' |
Amount of bank guarantees secured by line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,722,000 | ' | ' | ' | ' | ' | ' | ' |
Debt assumed in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,634,000 | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,302,000 | 1,080,000 | ' | ' | ' |
Principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,332,000 | ' | $51,000 | ' | $120,000 |
Number of installments due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' |
STOCK_OWNERSHIP_AND_BENEFIT_PL2
STOCK OWNERSHIP AND BENEFIT PLANS - Schedule of Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense before income taxes | $894 | $3,401 | $4,443 | $3,397 |
Income tax benefit | ' | -990 | -864 | -918 |
Stock-based compensation expense, net of income taxes | ' | 2,411 | 3,579 | 2,479 |
Earnings per share impact: | ' | ' | ' | ' |
Basic - net income (in dollars per share) | ' | $0.18 | $0.27 | $0.19 |
Diluted - net income (in dollars per share) | ' | $0.18 | $0.27 | $0.19 |
Cost of products sold | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense before income taxes | ' | 304 | 324 | 261 |
General and administrative expenses | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense before income taxes | ' | 2,913 | 3,018 | 2,431 |
Selling and distribution expenses | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock-based compensation expense before income taxes | ' | $184 | $1,101 | $705 |
STOCK_OWNERSHIP_AND_BENEFIT_PL3
STOCK OWNERSHIP AND BENEFIT PLANS - Activity of Nonvested Shares of Restricted Stock and Restricted Stock Units (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted stock | ' | ' | ' |
Shares | ' | ' | ' |
Balance at the beginning of the period (in shares) | 242,385 | 261,829 | 237,489 |
Granted (in shares) | 163,579 | 116,900 | 116,500 |
Vested (in shares) | -216,851 | -136,344 | -90,660 |
Forfeited (in shares) | -2,000 | ' | -1,500 |
Balance at the end of the period (in shares) | 187,113 | 242,385 | 261,829 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $27.75 | $30.59 | $32.82 |
Granted (in dollars per share) | $16.37 | $20.74 | $20.90 |
Vested (in dollars per share) | $27.95 | $27.20 | $24.16 |
Forfeited (in dollars per share) | $22.05 | ' | $18.79 |
Balance at the end of the period (in dollars per share) | $17.63 | $27.75 | $30.59 |
Restricted stock units | ' | ' | ' |
Shares | ' | ' | ' |
Balance at the beginning of the period (in shares) | 80,429 | 53,998 | 34,583 |
Granted (in shares) | 56,217 | 50,200 | 32,500 |
Vested (in shares) | -35,001 | -20,769 | -13,085 |
Forfeited (in shares) | -2,300 | -3,000 | ' |
Balance at the end of the period (in shares) | 99,345 | 80,429 | 53,998 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $20.41 | $20.43 | $19.59 |
Granted (in dollars per share) | $15.67 | $20.44 | $20.45 |
Vested (in dollars per share) | $20.88 | $20.43 | $18.24 |
Forfeited (in dollars per share) | $19.01 | $21.15 | ' |
Balance at the end of the period (in dollars per share) | $17.59 | $20.41 | $20.43 |
STOCK_OWNERSHIP_AND_BENEFIT_PL4
STOCK OWNERSHIP AND BENEFIT PLANS - Stock Options Outstanding and Exercisable (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Employee stock options outstanding and exercisable | ' |
Number of options outstanding and exercisable (in shares) | 14,000 |
Weighted average remaining contractual life | '1 year 3 months 26 days |
Weighted average exercise price (in dollars per share) | $16.12 |
$4.87 | ' |
Employee stock options outstanding and exercisable | ' |
Range of exercise price, low end (in dollars per share) | $4.87 |
Range of exercise price, high end (in dollars per share) | $4.87 |
Number of options outstanding and exercisable (in shares) | 4,000 |
Weighted average remaining contractual life | '1 year 22 days |
Weighted average exercise price (in dollars per share) | $4.87 |
$20.62 | ' |
Employee stock options outstanding and exercisable | ' |
Range of exercise price, low end (in dollars per share) | $20.62 |
Range of exercise price, high end (in dollars per share) | $20.62 |
Number of options outstanding and exercisable (in shares) | 10,000 |
Weighted average remaining contractual life | '1 year 5 months 1 day |
Weighted average exercise price (in dollars per share) | $20.62 |
STOCK_OWNERSHIP_AND_BENEFIT_PL5
STOCK OWNERSHIP AND BENEFIT PLANS - Stock Option Activity (Details) (Stock options, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock options | ' | ' | ' |
Options | ' | ' | ' |
Balance at the beginning of the period (in shares) | 15,500 | 15,500 | 19,700 |
Exercised (in shares) | -1,500 | 0 | -4,200 |
Balance at the end of the period (in shares) | 14,000 | 15,500 | 15,500 |
Exercisable at the end of the period (in shares) | 14,000 | ' | ' |
Weighted Average Exercise Period | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $14.92 | $14.92 | $12.74 |
Exercised (in dollars per share) | $3.72 | $0 | $4.71 |
Balance at the end of the period (in dollars per share) | $16.12 | $14.92 | $14.92 |
Exercisable at the end of the period (in dollars per share) | $16.12 | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term | '1 year 3 months 26 days | ' | ' |
Outstanding, Aggregate Intrinsic Value | $79 | ' | ' |
Exercisable, Weighted Average Remaining Contractual Term | '1 year 3 months 26 days | ' | ' |
Exercisable, Aggregate Intrinsic Value | $79 | ' | ' |
STOCK_OWNERSHIP_AND_BENEFIT_PL6
STOCK OWNERSHIP AND BENEFIT PLANS - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 88 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Restricted stock and restricted stock units | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock units | Restricted stock units | Restricted stock units | Incentive stock options | Stock options | Stock options | Stock options | |||||
Maximum | President and Chief Executive Officer [Member] | Supplemental Executive Retirement Plan | |||||||||||||||||||
Stock ownership and benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | 1,617,500 | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of shares granted | ' | ' | ' | ' | ' | ' | ' | ' | 1,025,646 | 163,579 | 116,900 | 116,500 | 30,000 | 90,000 | 56,217 | 50,200 | 32,500 | ' | ' | ' | ' |
Number of shares available for future grant | ' | 591,854 | ' | ' | 135,366 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated recognition of stock-based compensation expense associated with planned retirement of CEO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $672,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses associated with management retirements | 2,965,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 894,000 | 3,401,000 | 4,443,000 | 3,397,000 | 76,000 | 58,000 | 57,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 25.00% | ' | ' | ' |
Unrecognized stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation related to unvested awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,480,000 | ' | ' | ' | ' | 1,020,000 | ' | ' | ' | ' | ' | ' |
Weighted average period over which the cost is expected to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 10 months 21 days | ' | ' | ' | ' | '1 year 9 months 29 days | ' | ' | ' | ' | ' | ' |
Stock options, additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | 0 | 74,000 |
Unrecognized compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Employee Stock Purchase Plan [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of earnings that may be authorized by employees to withhold to purchase common stock | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fair market value of the entity's common stock used to purchase common stock on the Offering Date or Purchase Date | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares purchased | ' | ' | ' | ' | 22,689 | 14,717 | 8,688 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
401 (k) Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Matching employer contributions on first level of qualified compensation (as a percent) | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of qualified compensation, first level, matched by employer | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Matching employer contributions on second level of qualified compensation (as a percent) | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of qualified compensation, second level, matched by employer | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total DMC contributions | ' | 485,000 | 431,000 | 379,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfunded pension obligation | ' | $910,000 | $807,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Domestic_and_Fore
INCOME TAXES - Domestic and Foreign Components of Income Before Tax and Components of Provision for Income Taxes(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Domestic and foreign components of income before tax for operations | ' | ' | ' |
Domestic | $7,058 | $7,716 | $12,550 |
Foreign | 3,470 | 8,836 | 4,260 |
INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST | 10,528 | 16,552 | 16,810 |
Components of the provision for income taxes | ' | ' | ' |
Current - Federal | 1,585 | 3,774 | 4,260 |
Current - State | 94 | 148 | 137 |
Current - Foreign | 3,029 | 2,203 | 1,559 |
Provision for income taxes - current | 4,708 | 6,125 | 5,956 |
Deferred - Federal | -390 | -314 | -295 |
Deferred - State | -86 | -21 | -24 |
Deferred - Foreign, net operating losses | 623 | 176 | 71 |
Deferred - Foreign, other | -1,914 | -1,108 | -1,339 |
Provision for income taxes - deferred | -1,767 | -1,267 | -1,587 |
Provision for income taxes | $2,941 | $4,858 | $4,369 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES - Reconciliation of Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of income tax provision | ' | ' | ' |
Federal statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Federal income tax at statutory rate | $3,652 | $5,793 | $5,900 |
State and local tax items not included below, net | 815 | 431 | 209 |
Effect of difference between U.S. Federal and foreign tax rates | -1,655 | -1,459 | -554 |
Permanent differences, foreign interest expense | -434 | -859 | -784 |
Permanent differences, U.S. manufacturing tax deduction | -224 | -356 | -414 |
Permanent differences, German tax audit settlement | 812 | 0 | 0 |
Permanent differences, deemed repatriation of foreign earnings | -914 | 914 | 0 |
Permanent differences, intercompany distributions | 1,250 | 0 | 0 |
Permanent differences, foreign equity compensation | 228 | 247 | 196 |
Permanent differences, other | 165 | 79 | 83 |
Current year tax credits | -649 | -29 | -142 |
Impact of statutory tax rate change | -6 | 198 | -31 |
Other | -99 | -101 | -94 |
Provision for income taxes | $2,941 | $4,858 | $4,369 |
INCOME_TAXES_Deferred_Tax_Asse
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Income tax credit carryforward | $50 | $584 |
Net foreign operating loss carryforward | 5,396 | 6,019 |
Inventory differences | 2,424 | 1,451 |
Allowance for doubtful accounts | 105 | 113 |
Equity compensation | 556 | 1,703 |
Vacation and other compensation accrual | 374 | 420 |
Deferred Tax Assets, Investment in Subsidiaries | 1,154 | 0 |
Other, net | 175 | 21 |
Deferred tax assets | 10,234 | 10,311 |
Deferred tax liabilities: | ' | ' |
Purchased intangible assets | -12,445 | -13,257 |
Depreciation and amortization | -2,315 | -2,097 |
Investment in partnerships | 0 | -1,129 |
Deferred profit | -244 | -236 |
Other, net | 0 | -74 |
Deferred tax liabilities | -15,004 | -16,793 |
Net deferred tax liabilities | -4,770 | -6,482 |
Classification of deferred tax assets and liabilities | ' | ' |
Current deferred tax assets | 3,507 | 2,074 |
Current deferred tax liabilities | -435 | -149 |
Long-term deferred tax assets | 505 | 804 |
Long-term deferred tax liabilities | -8,347 | -9,211 |
Net deferred tax liabilities | ($4,770) | ($6,482) |
INCOME_TAXES_Narrative_Details
INCOME TAXES - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Tax credit carryforward | ' | ' | ' |
Change in federal tax laws for 2012, tax benefit | $914,000 | ' | ' |
Decrease in paid-in-capital for tax impact of stock-based compensation | -907,000 | -453,000 | -35,000 |
Income considered to be permanently reinvested in non-U.S. subsidiaries | 37,795,000 | 42,543,000 | 27,745,000 |
Unrecognized tax benefits | 0 | 0 | ' |
Accrual for interest and penalties related to uncertain tax positions | 0 | 0 | ' |
Permanent differences, German tax audit settlement | 812,000 | 0 | 0 |
U.S. foreign | ' | ' | ' |
Tax credit carryforward | ' | ' | ' |
Tax credit carryforward | ' | 551,000 | ' |
State | ' | ' | ' |
Tax credit carryforward | ' | ' | ' |
Tax credit carryforward | 78,000 | 33,000 | ' |
Operating loss carryforwards | $0 | $0 | ' |
BUSINESS_SEGMENTS_Segment_Oper
BUSINESS SEGMENTS - Segment Operations and Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Segment | ||||||||||||
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Net sales | $51,176 | $54,268 | $57,859 | $46,270 | $52,519 | $50,149 | $48,687 | $50,212 | $209,573 | $201,567 | $208,891 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 12,895 | 11,747 | 11,199 | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 11,697 | 17,403 | 18,219 | ' |
Stock-based compensation | ' | ' | ' | -894 | ' | ' | ' | ' | -3,401 | -4,443 | -3,397 | ' |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -528 | -32 | 528 | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -648 | -832 | -1,945 | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 13 | 8 | ' |
Consolidated income before income taxes and non-controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | 10,528 | 16,552 | 16,810 | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 17,565 | 15,647 | 7,726 | ' |
Assets | 240,612 | ' | ' | ' | 235,431 | ' | ' | ' | 240,612 | 235,431 | 213,426 | ' |
Cash and cash equivalents | 10,617 | ' | ' | ' | 8,200 | ' | ' | ' | 10,617 | 8,200 | 5,276 | 4,572 |
Prepaid expenses and other assets | 4,375 | ' | ' | ' | 4,469 | ' | ' | ' | 4,375 | 4,469 | ' | ' |
Property, plant and equipment, net | 65,015 | ' | ' | ' | 53,976 | ' | ' | ' | 65,015 | 53,976 | 41,402 | ' |
Net sales | Customer Concentration Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers accounted for more than 10% of total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' |
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 22,315 | 25,411 | 24,302 | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 16,789 | 15,647 | 7,726 | ' |
Assets | 218,124 | ' | ' | ' | 218,666 | ' | ' | ' | 218,124 | 218,666 | 200,549 | ' |
Corporate, Non-Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -7,217 | -3,565 | -2,686 | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | -3,401 | -4,443 | -3,397 | ' |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -528 | -32 | 528 | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -648 | -832 | -1,945 | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 13 | 8 | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 776 | 0 | 0 | ' |
Cash and cash equivalents | 10,617 | ' | ' | ' | 8,200 | ' | ' | ' | 10,617 | 8,200 | 5,276 | ' |
Prepaid expenses and other assets | 6,275 | ' | ' | ' | 5,687 | ' | ' | ' | 6,275 | 5,687 | 5,647 | ' |
Deferred tax assets | 4,012 | ' | ' | ' | 2,878 | ' | ' | ' | 4,012 | 2,878 | 1,954 | ' |
Property, plant and equipment, net | 1,584 | ' | ' | ' | 0 | ' | ' | ' | 1,584 | 0 | 0 | ' |
NobelClad | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 118,409 | 115,333 | 126,199 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6,118 | 5,580 | 5,833 | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 17,090 | 17,439 | 16,058 | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2,425 | 4,747 | 4,338 | ' |
Assets | 99,115 | ' | ' | ' | 100,227 | ' | ' | ' | 99,115 | 100,227 | 102,473 | ' |
DynaEnergetics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 83,651 | 77,404 | 72,782 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6,125 | 5,631 | 4,877 | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 4,849 | 7,047 | 6,188 | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 13,022 | 10,386 | 2,904 | ' |
Assets | 112,919 | ' | ' | ' | 112,319 | ' | ' | ' | 112,919 | 112,319 | 92,070 | ' |
AMK Technical Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,513 | 8,830 | 9,910 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 652 | 536 | 489 | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 376 | 925 | 2,056 | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,342 | 514 | 484 | ' |
Assets | $6,090 | ' | ' | ' | $6,120 | ' | ' | ' | $6,090 | $6,120 | $6,006 | ' |
BUSINESS_SEGMENTS_Geographic_I
BUSINESS SEGMENTS - Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $65,015 | ' | ' | ' | $53,976 | ' | ' | ' | $65,015 | $53,976 | $41,402 |
Net sales | 51,176 | 54,268 | 57,859 | 46,270 | 52,519 | 50,149 | 48,687 | 50,212 | 209,573 | 201,567 | 208,891 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 33,301 | ' | ' | ' | 28,248 | ' | ' | ' | 33,301 | 28,248 | 21,810 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 95,214 | 78,676 | 81,410 |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 2,230 | ' | ' | ' | 2,136 | ' | ' | ' | 2,230 | 2,136 | 2,339 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 18,150 | 21,083 | 24,151 |
South Korea | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 11,642 | 9,469 | 29,951 |
Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 12,703 | ' | ' | ' | 11,319 | ' | ' | ' | 12,703 | 11,319 | 9,924 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 9,208 | 13,992 | 12,960 |
India | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,888 | 3,874 | 6,176 |
Russia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 10,152 | ' | ' | ' | 5,351 | ' | ' | ' | 10,152 | 5,351 | 387 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 5,992 | 6,472 | 8,658 |
France | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 5,801 | ' | ' | ' | 5,912 | ' | ' | ' | 5,801 | 5,912 | 5,767 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,957 | 6,838 | 3,828 |
Kazakhstan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 438 | ' | ' | ' | 525 | ' | ' | ' | 438 | 525 | 550 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,513 | 2,359 | 32 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 606 | 7,986 | 1,468 |
Rest of the world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | 390 | ' | ' | ' | 485 | ' | ' | ' | 390 | 485 | 625 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $53,403 | $50,818 | $40,257 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Capitalized Leased Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Capitalized leased assets | ' | ' |
Total | $318 | $292 |
Less: Accumulated amortization | -290 | -231 |
Net capitalized leased assets | 28 | 61 |
Manufacturing equipment and tooling | ' | ' |
Capitalized leased assets | ' | ' |
Total | 304 | 292 |
Furniture, fixtures and computer equipment | ' | ' |
Capitalized leased assets | ' | ' |
Total | $14 | $0 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Commitments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capital Leases | ' | ' | ' |
2014 | $25 | ' | ' |
2015 | 5 | ' | ' |
2016 | 3 | ' | ' |
2017 | 0 | ' | ' |
2018 | 0 | ' | ' |
Thereafter | 0 | ' | ' |
Total minimum payments | 33 | ' | ' |
Amounts representing interest | -1 | ' | ' |
Present value of net minimum lease payments | 32 | ' | ' |
Current portion of capital lease obligations | -24 | -52 | ' |
Capital lease obligations | 8 | 19 | ' |
Operating Leases | ' | ' | ' |
2014 | 1,961 | ' | ' |
2015 | 1,579 | ' | ' |
2016 | 1,084 | ' | ' |
2017 | 788 | ' | ' |
2018 | 764 | ' | ' |
Thereafter | 1,126 | ' | ' |
Total minimum payments | 7,302 | ' | ' |
Rental expense included in operations | 3,884 | 3,182 | 2,973 |
Future minimum payments required to be made under license agreement and a risk allocation agreement | ' | ' | ' |
2014 | 398 | ' | ' |
2015 | 398 | ' | ' |
2016 | 398 | ' | ' |
2017 | 398 | ' | ' |
2018 | 398 | ' | ' |
Thereafter | 0 | ' | ' |
Total minimum payments | $1,990 | ' | ' |
RETIREMENT_EXPENSES_Details
RETIREMENT EXPENSES (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Expenses associated with management retirements | $2,965 | ' | ' | ' |
Stock-based compensation | 894 | 3,401 | 4,443 | 3,397 |
Former President and Chief Executive Officer | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Expenses associated with management retirements | 2,965 | ' | ' | ' |
Stock-based compensation | $894 | ' | ' | ' |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (AMK Technical Services) | 12 Months Ended |
Dec. 31, 2013 | |
AMK Technical Services | ' |
Subsequent Event [Line Items] | ' |
Percent of net sales | 3.60% |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $51,176 | $54,268 | $57,859 | $46,270 | $52,519 | $50,149 | $48,687 | $50,212 | $209,573 | $201,567 | $208,891 |
Gross profit | 13,159 | 16,573 | 17,063 | 12,719 | 16,043 | 15,349 | 13,939 | 14,377 | 59,514 | 59,708 | 55,446 |
Net income | $278 | $3,562 | $3,440 | $215 | $2,861 | $3,754 | $2,653 | $2,428 | $7,495 | $11,696 | $12,491 |
Net income per share - basic (in dollars per share) | $0.02 | $0.26 | $0.25 | $0.02 | $0.21 | $0.28 | $0.20 | $0.18 | $0.55 | $0.87 | $0.94 |
Net income per share - diluted (in dollars per share) | $0.02 | $0.26 | $0.25 | $0.02 | $0.21 | $0.28 | $0.20 | $0.18 | $0.54 | $0.87 | $0.93 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ' | ' | ' |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ' | ' |
Balance at beginning of period | $406 | $424 | $378 |
Additions charged to income | 221 | 63 | 267 |
Deductions | -13 | -10 | -149 |
Other Adjustments | -195 | -71 | -72 |
Balance at end of period | 419 | 406 | 424 |
WARRANTY RESERVE | ' | ' | ' |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ' | ' |
Balance at beginning of period | 443 | 592 | 597 |
Additions charged to income | 43 | 175 | 756 |
Deductions | -156 | -134 | -761 |
Other Adjustments | -116 | -190 | 0 |
Balance at end of period | 214 | 443 | 592 |
INVENTORY RESERVE | ' | ' | ' |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ' | ' |
Balance at beginning of period | 337 | 157 | 225 |
Additions charged to income | 2,714 | 856 | 77 |
Deductions | -1,322 | -676 | -145 |
Balance at end of period | $1,729 | $337 | $157 |