Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 15-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'ALLIED MOTION TECHNOLOGIES INC | ' |
Entity Central Index Key | '0000046129 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 9,241,301 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $9,718 | $10,171 |
Trade receivables, net of allowance for doubtful accounts of $860 and $802 at March 31, 2014 and December 31, 2013, respectively | 33,267 | 27,123 |
Inventories, net | 24,283 | 24,430 |
Deferred income taxes | 2,438 | 2,961 |
Prepaid expenses and other assets | 2,842 | 2,602 |
Total Current Assets | 72,548 | 67,287 |
Property, plant and equipment, net | 37,870 | 40,111 |
Deferred income taxes | 3,246 | 3,246 |
Intangible assets, net | 34,542 | 35,222 |
Goodwill | 19,434 | 20,233 |
Other long term assets | 4,152 | 4,878 |
Total Assets | 171,792 | 170,977 |
Current Liabilities: | ' | ' |
Debt obligations | 14,547 | 14,145 |
Accounts payable | 16,907 | 15,478 |
Accrued liabilities | 9,619 | 9,898 |
Income taxes payable | 2,146 | 2,729 |
Total Current Liabilities | 43,219 | 42,250 |
Long-term debt | 72,000 | 73,500 |
Deferred income taxes | 1,716 | 2,327 |
Deferred compensation arrangements | 2,062 | 2,599 |
Pension and post-retirement obligations | 2,224 | 2,298 |
Total Liabilities | 121,221 | 122,974 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, no par value, authorized 50,000 shares; 9,241 and 9,091 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 24,464 | 23,771 |
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding | ' | ' |
Retained earnings | 25,485 | 23,608 |
Accumulated other comprehensive income (loss) | 622 | 624 |
Total Stockholders' Equity | 50,571 | 48,003 |
Total Liabilities and Stockholders' Equity | $171,792 | $170,977 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Trade receivables, allowance for doubtful accounts (in dollars) | $860 | $802 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, authorized shares | 50,000 | 50,000 |
Common stock, shares issued | 9,241 | 9,091 |
Common stock, shares outstanding | 9,241 | 9,091 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, authorized shares | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ' | ' |
Revenues | $60,435 | $25,143 |
Cost of goods sold | 43,343 | 17,620 |
Gross margin | 17,092 | 7,523 |
Operating costs and expenses: | ' | ' |
Selling | 2,110 | 1,293 |
General and administrative | 6,216 | 2,942 |
Engineering and development | 3,517 | 1,747 |
Amortization of intangible assets | 678 | 84 |
Total operating costs and expenses | 12,521 | 6,066 |
Operating income | 4,571 | 1,457 |
Other expense (income): | ' | ' |
Interest expense | 1,638 | 9 |
Other (income) expense, net | -352 | 36 |
Total other expense, net | 1,286 | 45 |
Income before income taxes | 3,285 | 1,412 |
Provision for income taxes | -1,137 | -452 |
Net income | 2,148 | 960 |
Foreign currency translation adjustment | 7 | -460 |
Change in accumulated loss on derivatives | -9 | ' |
Comprehensive income | $2,146 | $500 |
Basic earnings per share: | ' | ' |
Earnings per share (in dollars per share) | $0.24 | $0.11 |
Basic weighted average common shares (in shares) | 9,130 | 8,733 |
Diluted earnings per share: | ' | ' |
Earnings per share (in dollars per share) | $0.24 | $0.11 |
Diluted weighted average common shares (in shares) | 9,130 | 8,733 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net income | $2,148 | $960 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,688 | 413 |
Deferred income taxes | 537 | 49 |
Stock compensation expense | 379 | 224 |
Other | 1,467 | 32 |
Changes in operating assets and liabilities: | ' | ' |
Trade receivables | -6,446 | -2,043 |
Inventories, net | -57 | 608 |
Prepaid expenses and other assets | 101 | -357 |
Accounts payable | 1,431 | -93 |
Accrued liabilities | -1,440 | -924 |
Net cash used in operating activities | -192 | -1,131 |
Cash Flows From Investing Activities: | ' | ' |
Proceeds related to working capital adjustment on acquisition | 1,434 | ' |
Purchase of property and equipment | -584 | -298 |
Net cash provided by (used in) investing activities | 850 | -298 |
Cash Flows From Financing Activities: | ' | ' |
Borrowings on lines-of-credit, net | 164 | ' |
Principal payments of long-term debt | -1,250 | ' |
Dividends paid to stockholders | -271 | -210 |
Stock transactions under employee benefit stock plans | 304 | 403 |
Net cash (used in) provided by financing activities | -1,053 | 193 |
Effect of foreign exchange rate changes on cash | -58 | -72 |
Net decrease in cash and cash equivalents | -453 | -1,308 |
Cash and cash equivalents at beginning of period | 10,171 | 9,728 |
Cash and cash equivalents at end of period | $9,718 | $8,420 |
BASIS_OF_PREPARATION_AND_PRESE
BASIS OF PREPARATION AND PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PREPARATION AND PRESENTATION | ' |
BASIS OF PREPARATION AND PRESENTATION | ' |
1. BASIS OF PREPARATION AND PRESENTATION | |
Allied Motion Technologies Inc. (Allied Motion or the Company) is engaged in the business of designing, manufacturing and selling motion control solutions, which include integrated system solutions as well as individual motion control products, to a broad spectrum of customers throughout the world primarily for the commercial motor, industrial motion, automotive control, medical, and aerospace and defense markets. | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. | |
The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars using end of period exchange rates. Changes in reported amounts of assets and liabilities of foreign subsidiaries that occur as a result of changes in exchange rates between foreign subsidiaries’ functional currencies and the U.S. dollar are included in foreign currency translation adjustment. Foreign currency translation adjustment is included in accumulated other comprehensive income, a component of stockholders’ equity in the accompanying condensed consolidated balance sheets. Revenue and expense transactions use an average rate prevailing during the month of the related transaction. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of each Technology Unit (“TU”) are included in the results of operations as incurred. | |
The condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and include all adjustments which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures herein are adequate to make the information presented not misleading. The financial data for the interim periods may not necessarily be indicative of results to be expected for the year. | |
The preparation of financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
It is suggested that the accompanying condensed consolidated interim financial statements be read in conjunction with the Consolidated Financial Statements and related Notes to such statements included in the Annual Report on Form 10-K for the year ended December 31, 2013 that was previously filed by the Company. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
ACQUISITIONS | ' | ||||
ACQUISITIONS | ' | ||||
2. ACQUISITIONS | |||||
On October 18, 2013, the Company acquired Globe Motors, Inc., a Delaware corporation (“Globe Motors” or “Globe”) from Safran USA, Inc. (the “Seller”), for approximately $90,000 in cash. | |||||
Globe Motors is headquartered in Dayton, Ohio, and has manufacturing facilities located in the U.S, Portugal and Mexico. The initial purchase price of $90,000 was comprised of $4,300 cash paid at closing, as well as funds acquired from the new Credit Agreement and Senior Subordinated Notes. During the first quarter of 2014, the Company received $1,434 from the Seller for a working capital adjustment, reducing the purchase price to $88,566. | |||||
The Company accounted for the acquisition pursuant to ASC 805, “Business Combinations.” The purchase price allocation is subject to further adjustment upon finalization of the opening balance sheet. | |||||
The preliminary purchase price allocated to the underlying net assets based on fair value as of the acquisition date is as follows (in thousands): | |||||
March 31, | |||||
2014 | |||||
Trade receivables, net | $ | 16,567 | |||
Inventories, net | 11,142 | ||||
Prepaid expenses and other assets | 2,860 | ||||
Property, plant and equipment | 28,286 | ||||
Amortizable intangible assets | 33,530 | ||||
Goodwill | 13,418 | ||||
Accounts payable | (10,622 | ) | |||
Accrued liabilities | (6,615 | ) | |||
Net purchase price | $ | 88,566 | |||
The purchase price allocation excludes any cash on hand and any debt of Globe Motors. The purchase price allocation has been revised to reflect an updated valuation of property, plant and equipment, adjustments to income taxes and the offsetting adjustments to goodwill. | |||||
The intangible assets acquired consist of customer lists and a tradename, which are being amortized over 15 and 10 years, respectively. Goodwill generated in the acquisition is related to the assembled workforce, synergies between Allied Motion’s other Technology Units (“TUs”) and Globe Motors that will occur as a result of the combined engineering knowledge, the ability of each of the TU’s to integrate each other’s products into more fully integrated system solutions and Allied Motion’s ability to utilize Globe’s management knowledge in providing complementary product offerings to the Company’s customers. | |||||
Pro forma Condensed Combined Financial Information (Unaudited) | |||||
The following presents the Company’s unaudited pro forma financial information for the quarter ended March 31, 2013 giving effect to the acquisition of Globe Motors as if it had occurred at January 1, 2013. Included in the pro forma information is: the additional depreciation and amortization resulting from the valuation of amortizable tangible and intangible assets; interest on borrowings made by the Company; amortization of deferred finance costs incurred to issue the borrowings; removal of acquisition related transaction costs; removal of certain costs for which Allied Motion would be indemnified by the seller and stock compensation expense related to shares issued to certain executives of Allied Motion as a result of the acquisition. | |||||
For the quarter ended | |||||
March 31, 2013 | |||||
Revenues | $ | 50,439 | |||
Net income | $ | 1,089 | |||
Diluted net income per share | $ | 0.12 | |||
The pro forma adjustments do not reflect adjustments for anticipated operating efficiencies that the Company expects to achieve as a result of this acquisition. The pro forma financial information is for informational purposes only and does not purport to present what the Company’s results would actually have been had these transactions actually occurred on the dates presented or to project the combined company’s results of operations or financial position for any future period. |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
3. INVENTORIES | ||||||||
Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or market, as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Parts and raw materials | $ | 20,279 | $ | 20,649 | ||||
Work-in-process | 3,506 | 3,369 | ||||||
Finished goods | 4,502 | 4,350 | ||||||
28,287 | 28,368 | |||||||
Less reserves | (4,004 | ) | (3,938 | ) | ||||
Inventories, net | $ | 24,283 | $ | 24,430 | ||||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
4. PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment is classified as follows (in thousands): | ||||||||
March 31, | December 31 | |||||||
2014 | 2013 | |||||||
Land | $ | 654 | $ | 654 | ||||
Building and improvements | 9,879 | 9,748 | ||||||
Machinery, equipment, tools and dies | 38,201 | 40,237 | ||||||
Furniture, fixtures and other | 4,936 | 4,544 | ||||||
53,670 | 55,183 | |||||||
Less accumulated depreciation | (15,800 | ) | (15,072 | ) | ||||
Property, plant and equipment, net | $ | 37,870 | $ | 40,111 | ||||
Depreciation expense was approximately $1,010 and $329 for the quarters ended March 31, 2014 and 2013, respectively. |
GOODWILL
GOODWILL | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
GOODWILL | ' | ||||
GOODWILL | ' | ||||
5. GOODWILL | |||||
The change in the carrying amount of goodwill for the quarter ended March 31, 2014 is as follows (in thousands): | |||||
March 31, | |||||
2014 | |||||
Beginning balance | $ | 20,233 | |||
Acquisition adjustments | (792 | ) | |||
Effect of foreign currency translation | (7 | ) | |||
Ending balance | $ | 19,434 | |||
The acquisition adjustments relate to revisions in the purchase price allocation for Globe for changes to the value assigned to property, plant and equipment and the tax effect of the changes in value (Note 2). |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||||||||
6. INTANGIBLE ASSETS | ||||||||||||||||||||||
Intangible assets on the Company’s condensed consolidated balance sheets consist of the following (in thousands): | ||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Life | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | ||||||||||||||||
Amount | amortization | Value | Amount | amortization | Value | |||||||||||||||||
Customer lists | 8 - 15 years | $ | 34,163 | $ | (4,352 | ) | $ | 29,811 | $ | 34,166 | $ | (3,821 | ) | $ | 30,345 | |||||||
Trade name | 10 years | 4,775 | (1,118 | ) | 3,657 | 4,775 | (1,012 | ) | 3,763 | |||||||||||||
Design and technologies | 8 - 10 years | 2,728 | (1,675 | ) | 1,053 | 2,730 | (1,637 | ) | 1,093 | |||||||||||||
Patents | 24 | (3 | ) | 21 | 24 | (3 | ) | 21 | ||||||||||||||
Total | $ | 41,690 | $ | (7,148 | ) | $ | 34,542 | $ | 41,695 | $ | (6,473 | ) | $ | 35,222 | ||||||||
Amortization expense for intangible assets was $678 and $84 for the quarters ending March 31, 2014 and 2013, respectively. | ||||||||||||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||
Mar. 31, 2014 | ||||
STOCK-BASED COMPENSATION | ' | |||
STOCK-BASED COMPENSATION | ' | |||
7. STOCK-BASED COMPENSATION | ||||
Stock Incentive Plans | ||||
The Company’s Stock Incentive Plans provide for the granting of stock awards, including restricted stock, stock options and stock appreciation rights, to employees and non-employees, including directors of the Company. | ||||
Restricted Stock | ||||
For the three months ended March 31, 2014, 156,696 shares of unvested restricted stock were awarded at a market value of $11.18. Of the restricted shares granted, 80,591 shares have performance based vesting conditions. The value of the shares is amortized to compensation expense over the related service period, which is normally three years, or over the estimated performance period. Shares of unvested restricted stock are forfeited if a recipient leaves the Company before the vesting date. Shares that are forfeited become available for future awards. | ||||
The following is a summary of restricted stock activity for the three months ended March 31, 2014: | ||||
Number of | ||||
Shares | ||||
Outstanding at beginning of period | 520,195 | |||
Awarded | 156,696 | |||
Forfeited | (34,944 | ) | ||
Vested | (96,339 | ) | ||
Outstanding at end of period | 545,608 | |||
For the quarters ended March 31, 2014 and 2013, stock compensation expense, net of forfeitures, of $379 and $224 was recorded, respectively. |
DEBT_OBLIGATIONS
DEBT OBLIGATIONS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
DEBT OBLIGATIONS | ' | |||||||
DEBT OBLIGATIONS | ' | |||||||
8. DEBT OBLIGATIONS | ||||||||
Debt obligations consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Current Borrowings | ||||||||
Revolving Credit Facility (2.7% at March 31, 2014) | $ | 7,725 | $ | 7,725 | ||||
China Credit Facility (6.3% at March 31, 2014) | 1,322 | 1,170 | ||||||
Term Loan, current portion, (2.7% at March 31, 2014) (1) | 5,500 | 5,250 | ||||||
Current borrowings | $ | 14,547 | $ | 14,145 | ||||
Long-term Debt | ||||||||
Term Loan, noncurrent (2.7% at March 31, 2014) (1) | $ | 42,000 | $ | 43,500 | ||||
Subordinated Notes (14.5%, 13% Cash, 1.5% PIK) | 30,000 | 30,000 | ||||||
Long-term debt | $ | 72,000 | $ | 73,500 | ||||
(1) The effective rate of the Term Loan including the impact of the related hedges is 3.14%. | ||||||||
Credit Agreement | ||||||||
The Company’s Credit Agreement provides for a $15,000 five-year revolving credit facility and a $50,000 five-year term loan (collectively the “Senior Credit Facilities”). | ||||||||
Borrowings under the Senior Credit Facilities are subject to terms defined in the Credit Agreement. Borrowings bear interest at either the Base Rate plus a margin of 0.25% to 2.00% (currently 1.50%) or the Eurocurrency Rate plus a margin of 1.25% to 3.00% (currently 2.50%), in each case depending on the Company’s ratio of total funded indebtedness to Consolidated EBITDA (the “Total Leverage Ratio”). | ||||||||
Principal installments are payable on the Term Loan in varying percentages quarterly through September 30, 2018 with a balloon payment at maturity. The Senior Credit Facilities are secured by substantially all of the Company’s assets. The average outstanding borrowings for 2014 for the Senior Credit Facilities were $56,100. At March 31, 2014, there was approximately $7,300 available under the Senior Credit Facilities. | ||||||||
The Credit Agreement contains certain financial covenants related to maximum leverage and minimum fixed charge coverage. The Credit Agreement also includes other covenants and restrictions, including limits on the amount of certain types of capital expenditures. The Company was in compliance with all covenants at March 31, 2014. | ||||||||
Senior Subordinated Notes | ||||||||
Under the Company’s Note Agreement, the Company sold $30,000 of 14.50% Senior Subordinated Notes due October 18, 2019 (the “Notes”) to Prudential Capital Partners IV, L.P. and its affiliates in a private placement. The interest rate on the Notes is 14.50% with 13.00% payable in cash and 1.50% payable in-kind, quarterly in arrears and the outstanding principal amount of the Notes, together with any accrued and unpaid interest is due on October 18, 2019. The Company may prepay the Notes at any time after October 18, 2016, in whole or in part, at 100% of the principal amount. The Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed by certain of the Company’s subsidiaries. | ||||||||
Other | ||||||||
The Company also has a Credit Facility in China providing credit of approximately $1,540 (Chinese Renminbi (“RMB”) 9,500). This facility is used for working capital and capital equipment needs at the Company’s China operations, and will mature in October 2014. The average balance for 2014 was $1,330 (RMB 8,100). At March 31, 2014, there was approximately $200 (RMB 1,400) available under the facility. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||
9. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||
The Company did not use derivative contracts prior to the acquisition of Globe Motors, Inc. in October, 2013. | |||||||||||||||
The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During October 2013, the Company entered into two Interest Rate Swaps with a combined notional of $25,000 that amortize quarterly to a notional of $6,673 at maturity. | |||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the first quarter of 2014, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. There was no hedge ineffectiveness recorded in the Company’s earnings during the three months ended March 31, 2014. | |||||||||||||||
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company estimates that an additional $216 will be reclassified as an increase to interest expense over the next year. | |||||||||||||||
Additionally, the Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. | |||||||||||||||
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2014 (in thousands): | |||||||||||||||
March 31, 2014 | |||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | |||||||||||||
Interest Rate Swaps | Prepaid expenses and other assets | $ | 32 | ||||||||||||
The effect of the Company’s derivative financial instruments on the condensed consolidated statement of income and comprehensive income is as follows (in thousands): | |||||||||||||||
For the quarter ended March 31, 2014 | For the quarter ended March 31, 2014 | For the quarter ended March 31, 2014 | |||||||||||||
Derivative | Net deferral in | Statement of | Net | Statement of | Amount recognized | ||||||||||
Instruments | OCI of | earnings | reclassification | earnings | in income (ineffective | ||||||||||
derivatives | classification | from AOCI into | classification | portion and amount | |||||||||||
(effective | income (effective | excluded from | |||||||||||||
portion) | portion) | effectiveness testing) | |||||||||||||
Interest Rate Swaps | $ | (68 | ) | Interest expense | $ | (58 | ) | Other (expense) | $ | — | |||||
DIVIDENDS_PER_SHARE
DIVIDENDS PER SHARE | 3 Months Ended |
Mar. 31, 2014 | |
DIVIDENDS PER SHARE | ' |
DIVIDENDS PER SHARE | ' |
10. DIVIDENDS PER SHARE | |
The Company declared and paid a quarterly dividend of $0.025 per share in the first quarter of 2014 and 2013. Total dividends paid in the first three months of 2014 and 2013 were $271 and $210, respectively. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
SEGMENT INFORMATION | ' | |||||||
SEGMENT INFORMATION | ' | |||||||
11. SEGMENT INFORMATION | ||||||||
ASC Topic “Segment Reporting” requires disclosure of operating segments, which as defined, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. | ||||||||
The Company operates in one segment for the manufacture and marketing of motion control products for original equipment manufacturers and end user applications. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying condensed consolidated financial statements and within this note. | ||||||||
The Company’s wholly owned foreign subsidiaries, located in The Netherlands, Sweden, Canada, Asia, Portugal and Mexico are included in the accompanying condensed consolidated financial statements. | ||||||||
Financial information related to the foreign subsidiaries is summarized below (in thousands): | ||||||||
For the three months ended | ||||||||
and as of March 31, | ||||||||
2014 | 2013 | |||||||
Revenues derived from foreign subsidiaries | $ | 19,288 | $ | 11,093 | ||||
Identifiable assets as of March 31, | 58,497 | 27,174 | ||||||
Sales to customers outside of the United States by all subsidiaries were $21,891 and $12,305 during the quarters ended March 31, 2014 and 2013, respectively. | ||||||||
During the three months ended March 31, 2014, three customers accounted for 33% of total revenues and 43% of trade receivables. During the three months ended March 31, 2013, no single customer accounted for more than 10% of total revenues or trade receivables. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
ACQUISITIONS | ' | ||||
Schedule of purchase price allocation | ' | ||||
The preliminary purchase price allocated to the underlying net assets based on fair value as of the acquisition date is as follows (in thousands): | |||||
March 31, | |||||
2014 | |||||
Trade receivables, net | $ | 16,567 | |||
Inventories, net | 11,142 | ||||
Prepaid expenses and other assets | 2,860 | ||||
Property, plant and equipment | 28,286 | ||||
Amortizable intangible assets | 33,530 | ||||
Goodwill | 13,418 | ||||
Accounts payable | (10,622 | ) | |||
Accrued liabilities | (6,615 | ) | |||
Net purchase price | $ | 88,566 | |||
Schedule of unaudited pro forma financial information | ' | ||||
For the quarter ended | |||||
March 31, 2013 | |||||
Revenues | $ | 50,439 | |||
Net income | $ | 1,089 | |||
Diluted net income per share | $ | 0.12 | |||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories including costs of materials, direct labor and manufacturing overhead, and stated at the lower of cost (first-in, first-out basis) or market | ' | |||||||
Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or market, as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Parts and raw materials | $ | 20,279 | $ | 20,649 | ||||
Work-in-process | 3,506 | 3,369 | ||||||
Finished goods | 4,502 | 4,350 | ||||||
28,287 | 28,368 | |||||||
Less reserves | (4,004 | ) | (3,938 | ) | ||||
Inventories, net | $ | 24,283 | $ | 24,430 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
Schedule of classification of property, plant and equipment | ' | |||||||
Property, plant and equipment is classified as follows (in thousands): | ||||||||
March 31, | December 31 | |||||||
2014 | 2013 | |||||||
Land | $ | 654 | $ | 654 | ||||
Building and improvements | 9,879 | 9,748 | ||||||
Machinery, equipment, tools and dies | 38,201 | 40,237 | ||||||
Furniture, fixtures and other | 4,936 | 4,544 | ||||||
53,670 | 55,183 | |||||||
Less accumulated depreciation | (15,800 | ) | (15,072 | ) | ||||
Property, plant and equipment, net | $ | 37,870 | $ | 40,111 | ||||
GOODWILL_Tables
GOODWILL (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
GOODWILL | ' | ||||
Schedule of change in the carrying amount of goodwill | ' | ||||
The change in the carrying amount of goodwill for the quarter ended March 31, 2014 is as follows (in thousands): | |||||
March 31, | |||||
2014 | |||||
Beginning balance | $ | 20,233 | |||
Acquisition adjustments | (792 | ) | |||
Effect of foreign currency translation | (7 | ) | |||
Ending balance | $ | 19,434 | |||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||||
Intangible assets on the Company’s condensed consolidated balance sheets consist of the following (in thousands): | ||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Life | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | ||||||||||||||||
Amount | amortization | Value | Amount | amortization | Value | |||||||||||||||||
Customer lists | 8 - 15 years | $ | 34,163 | $ | (4,352 | ) | $ | 29,811 | $ | 34,166 | $ | (3,821 | ) | $ | 30,345 | |||||||
Trade name | 10 years | 4,775 | (1,118 | ) | 3,657 | 4,775 | (1,012 | ) | 3,763 | |||||||||||||
Design and technologies | 8 - 10 years | 2,728 | (1,675 | ) | 1,053 | 2,730 | (1,637 | ) | 1,093 | |||||||||||||
Patents | 24 | (3 | ) | 21 | 24 | (3 | ) | 21 | ||||||||||||||
Total | $ | 41,690 | $ | (7,148 | ) | $ | 34,542 | $ | 41,695 | $ | (6,473 | ) | $ | 35,222 | ||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
STOCK-BASED COMPENSATION | ' | |||
Summary of restricted stock activity | ' | |||
The following is a summary of restricted stock activity for the three months ended March 31, 2014: | ||||
Number of | ||||
Shares | ||||
Outstanding at beginning of period | 520,195 | |||
Awarded | 156,696 | |||
Forfeited | (34,944 | ) | ||
Vested | (96,339 | ) | ||
Outstanding at end of period | 545,608 | |||
DEBT_OBLIGATIONS_Tables
DEBT OBLIGATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
DEBT OBLIGATIONS | ' | |||||||
Schedule of debt obligations | ' | |||||||
Debt obligations consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Current Borrowings | ||||||||
Revolving Credit Facility (2.7% at March 31, 2014) | $ | 7,725 | $ | 7,725 | ||||
China Credit Facility (6.3% at March 31, 2014) | 1,322 | 1,170 | ||||||
Term Loan, current portion, (2.7% at March 31, 2014) (1) | 5,500 | 5,250 | ||||||
Current borrowings | $ | 14,547 | $ | 14,145 | ||||
Long-term Debt | ||||||||
Term Loan, noncurrent (2.7% at March 31, 2014) (1) | $ | 42,000 | $ | 43,500 | ||||
Subordinated Notes (14.5%, 13% Cash, 1.5% PIK) | 30,000 | 30,000 | ||||||
Long-term debt | $ | 72,000 | $ | 73,500 | ||||
(1) The effective rate of the Term Loan including the impact of the related hedges is 3.14%. |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||
Schedule of fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets | ' | ||||||||||||||
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2014 (in thousands): | |||||||||||||||
March 31, 2014 | |||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | |||||||||||||
Interest Rate Swaps | Prepaid expenses and other assets | $ | 32 | ||||||||||||
Schedule of effect of the Company's derivative financial instruments on the condensed consolidated statement of income and comprehensive income | ' | ||||||||||||||
The effect of the Company’s derivative financial instruments on the condensed consolidated statement of income and comprehensive income is as follows (in thousands): | |||||||||||||||
For the quarter ended March 31, 2014 | For the quarter ended March 31, 2014 | For the quarter ended March 31, 2014 | |||||||||||||
Derivative | Net deferral in | Statement of | Net | Statement of | Amount recognized | ||||||||||
Instruments | OCI of | earnings | reclassification | earnings | in income (ineffective | ||||||||||
derivatives | classification | from AOCI into | classification | portion and amount | |||||||||||
(effective | income (effective | excluded from | |||||||||||||
portion) | portion) | effectiveness testing) | |||||||||||||
Interest Rate Swaps | $ | (68 | ) | Interest expense | $ | (58 | ) | Other (expense) | $ | — | |||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
SEGMENT INFORMATION | ' | |||||||
Schedule of financial information related to the foreign subsidiaries | ' | |||||||
Financial information related to the foreign subsidiaries is summarized below (in thousands): | ||||||||
For the three months ended | ||||||||
and as of March 31, | ||||||||
2014 | 2013 | |||||||
Revenues derived from foreign subsidiaries | $ | 19,288 | $ | 11,093 | ||||
Identifiable assets as of March 31, | 58,497 | 27,174 | ||||||
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Oct. 18, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 18, 2013 | Oct. 18, 2013 |
Globe Motors | Globe Motors | Globe Motors | Globe Motors | Globe Motors | |||
Customer lists | Trade name | ||||||
ACQUISITIONS | ' | ' | ' | ' | ' | ' | ' |
Cash consideration paid | ' | ' | $90,000 | ' | ' | ' | ' |
Cash paid for acquisition | ' | ' | 4,300 | ' | ' | ' | ' |
Amount received from seller for working capital adjustment | 1,434 | ' | ' | 1,434 | ' | ' | ' |
Purchase price allocation | ' | ' | ' | ' | ' | ' | ' |
Trade receivables, net | ' | ' | 16,567 | ' | ' | ' | ' |
Inventories, net | ' | ' | 11,142 | ' | ' | ' | ' |
Prepaid expenses and other assets | ' | ' | 2,860 | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | 28,286 | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | 33,530 | ' | ' | ' | ' |
Goodwill | 19,434 | 20,233 | 13,418 | ' | ' | ' | ' |
Accounts payable | ' | ' | -10,622 | ' | ' | ' | ' |
Accrued liabilities | ' | ' | -6,615 | ' | ' | ' | ' |
Net purchase price | ' | ' | 88,566 | ' | ' | ' | ' |
Amortization period of intangible assets | ' | ' | ' | ' | ' | '15 years | '10 years |
Unaudited pro forma financial information | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | 50,439 | ' | ' |
Net income | ' | ' | ' | ' | $1,089 | ' | ' |
Diluted net income per share (in dollars per share) | ' | ' | ' | ' | $0.12 | ' | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Parts and raw materials | $20,279 | $20,649 |
Work-in-process | 3,506 | 3,369 |
Finished goods | 4,502 | 4,350 |
Inventory, gross | 28,287 | 28,368 |
Less reserves | -4,004 | -3,938 |
Inventories, net | $24,283 | $24,430 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Property, plant and equipment, gross | $53,670 | ' | $55,183 |
Less accumulated depreciation | -15,800 | ' | -15,072 |
Property, plant and equipment, net | 37,870 | ' | 40,111 |
Depreciation expense | 1,010 | 329 | ' |
Land | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Property, plant and equipment, gross | 654 | ' | 654 |
Building and improvements | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Property, plant and equipment, gross | 9,879 | ' | 9,748 |
Machinery, equipment, tools and dies | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Property, plant and equipment, gross | 38,201 | ' | 40,237 |
Furniture, fixtures and other | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Property, plant and equipment, gross | $4,936 | ' | $4,544 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Change in goodwill | ' |
Beginning balance | $20,233 |
Acquisition adjustments | -792 |
Effect of foreign currency translation | -7 |
Ending balance | $19,434 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Intangible assets subject to amortization | ' | ' | ' |
Gross Amount | $41,690 | ' | $41,695 |
Accumulated amortization | -7,148 | ' | -6,473 |
Net Book Value | 34,542 | ' | 35,222 |
Amortization expense for intangible assets | 678 | 84 | ' |
Customer lists | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Amount | 34,163 | ' | 34,166 |
Accumulated amortization | -4,352 | ' | -3,821 |
Net Book Value | 29,811 | ' | 30,345 |
Customer lists | Minimum | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Estimated Life | '8 years | ' | ' |
Customer lists | Maximum | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Estimated Life | '15 years | ' | ' |
Trade name | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Amount | 4,775 | ' | 4,775 |
Accumulated amortization | -1,118 | ' | -1,012 |
Net Book Value | 3,657 | ' | 3,763 |
Estimated Life | '10 years | ' | ' |
Design and technologies | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Amount | 2,728 | ' | 2,730 |
Accumulated amortization | -1,675 | ' | -1,637 |
Net Book Value | 1,053 | ' | 1,093 |
Design and technologies | Minimum | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Estimated Life | '8 years | ' | ' |
Design and technologies | Maximum | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Estimated Life | '10 years | ' | ' |
Patents | ' | ' | ' |
Intangible assets subject to amortization | ' | ' | ' |
Gross Amount | 24 | ' | 24 |
Accumulated amortization | -3 | ' | -3 |
Net Book Value | $21 | ' | $21 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Additional disclosures | ' | ' |
Compensation expense, net of forfeitures | $379 | $224 |
Restricted Stock | ' | ' |
Stock-Based Compensation | ' | ' |
Weighted average value (in dollars per share) | $11.18 | ' |
Service period over which value of the shares is amortized to compensation expense | '3 years | ' |
Number of Nonvested Restricted Shares | ' | ' |
Outstanding at beginning of period (in shares) | 520,195 | ' |
Awarded (in shares) | 156,696 | ' |
Forfeited (in shares) | -34,944 | ' |
Vested (in shares) | -96,339 | ' |
Outstanding at end of period (in shares) | 545,608 | ' |
Additional disclosures | ' | ' |
Compensation expense, net of forfeitures | $379 | $224 |
Restricted Stock | Performance based vesting | ' | ' |
Number of Nonvested Restricted Shares | ' | ' |
Awarded (in shares) | 80,591 | ' |
DEBT_OBLIGATIONS_Details
DEBT OBLIGATIONS (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Senior Credit Facilities | Senior Credit Facilities | Senior Credit Facilities | Senior Credit Facilities | Senior Credit Facilities | Senior Credit Facilities | Senior Credit Facilities | Revolving Credit Facility | Revolving Credit Facility | Term Loan | Term Loan | China Credit Facility | China Credit Facility | China Credit Facility | Subordinated Notes | Subordinated Notes |
USD ($) | Base Rate | Base Rate | Base Rate | Eurocurrency Rate | Eurocurrency Rate | Eurocurrency Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Chinese Renminbi ("RMB") | USD ($) | USD ($) | |||
Minimum | Maximum | Minimum | Maximum | CNY | ||||||||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowings | $14,547 | $14,145 | ' | ' | ' | ' | ' | ' | ' | $7,725 | $7,725 | $5,500 | $5,250 | $1,322 | $1,170 | ' | ' | ' |
Interest rate at period end (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.70% | ' | 2.70% | ' | 6.30% | ' | ' | ' | ' |
Long-term debt | 72,000 | 73,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,000 | 43,500 | ' | ' | ' | 30,000 | 30,000 |
Effective rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.14% | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.50% | ' |
Interest rate payable in cash (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' |
Interest rate payable in-kind (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | 50,000 | ' | 1,540 | ' | 9,500 | ' | ' |
Debt instrument term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' | ' |
Principal amount of debt borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' |
Reference rate | ' | ' | ' | 'Base Rate | ' | ' | 'Eurocurrency Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin (as a percent) | ' | ' | ' | 1.50% | 0.25% | 2.00% | 2.50% | 1.25% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average outstanding borrowings | ' | ' | 56,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,330 | ' | 8,100 | ' | ' |
Available borrowing capacity | ' | ' | $7,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200 | ' | 1,400 | ' | ' |
Percentage of principal amount of notes that may prepay | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (Interest Rate Swaps, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Oct. 31, 2013 |
DerivativeInstrument | ||
Derivative financial instruments | ' | ' |
Number of derivative instruments | ' | 2 |
Notional amount of interest rate swap derivatives | ' | $25,000 |
Notional amount of interest rate swap derivatives at maturity | ' | 6,673 |
Hedge ineffectiveness recorded in earnings | 0 | ' |
Estimated amount to be reclassified as an increase to interest expense | 216 | ' |
Interest expense | ' | ' |
Effect of derivative financial instruments on the consolidated statement of income and comprehensive income | ' | ' |
Net deferral in OCI of derivatives (effective portion) | -68 | ' |
Other (expense) | ' | ' |
Effect of derivative financial instruments on the consolidated statement of income and comprehensive income | ' | ' |
Net reclassification from AOCI into income (effective portion) | -58 | ' |
Prepaid expenses and other assets | ' | ' |
Derivative financial instruments | ' | ' |
Fair value of derivatives | $32 | ' |
DIVIDENDS_PER_SHARE_Details
DIVIDENDS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
DIVIDENDS PER SHARE | ' | ' |
Dividends declared and paid (in dollars per share) | $0.03 | $0.03 |
Total dividends paid | $271 | $210 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
segment | |||
SEGMENT INFORMATION | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Segment information | ' | ' | ' |
Revenues | $60,435 | $25,143 | ' |
Identifiable assets | 171,792 | ' | 170,977 |
Total Revenue | Customer Concentration Risk | ' | ' | ' |
Segment information | ' | ' | ' |
Number of customers | 3 | ' | ' |
Percentage of concentration risk | 33.00% | ' | ' |
Trade receivables | Credit Concentration Risk | ' | ' | ' |
Segment information | ' | ' | ' |
Number of customers | 3 | ' | ' |
Percentage of concentration risk | 43.00% | ' | ' |
Outside the United States | ' | ' | ' |
Segment information | ' | ' | ' |
Revenues | 21,891 | 12,305 | ' |
Wholly owned foreign subsidiaries | ' | ' | ' |
Segment information | ' | ' | ' |
Revenues | 19,288 | 11,093 | ' |
Identifiable assets | $58,497 | $27,174 | ' |