Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 03, 2015 | Nov. 04, 2015 | |
Entity Registrant Name | RCM TECHNOLOGIES INC | |
Entity Central Index Key | 700,841 | |
Trading Symbol | rcmt | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 12,276,034 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 3, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 4,542 | $ 6,411 |
Accounts receivable, net | 52,766 | 59,187 |
Transit accounts receivable | 3,882 | 3,797 |
Prepaid expenses and other current assets | 2,342 | 2,368 |
Deferred income tax assets, domestic | 796 | 816 |
Total current assets | 64,328 | 72,579 |
Property and equipment, net | 4,833 | 3,297 |
Other assets: | ||
Deposits | 212 | 231 |
Goodwill | 11,630 | 10,223 |
Intangible assets, net | 276 | 194 |
Deferred income tax assets, domestic | 395 | 749 |
Total other assets | 12,513 | 11,397 |
Total assets | 81,674 | 87,273 |
Current liabilities: | ||
Accounts payable and accrued expenses | 7,623 | 7,693 |
Transit accounts payable | 4,502 | 6,658 |
Accrued payroll and related costs | 7,456 | 7,783 |
Income taxes payable | 958 | 860 |
Deferred income tax liability, foreign | 140 | 160 |
Contingent consideration | 389 | 479 |
Total current liabilities | 21,068 | 23,633 |
Contingent consideration | 1,521 | 775 |
Borrowings under line of credit | 15,000 | 20,000 |
Total liabilities | $ 37,589 | $ 44,408 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $1.00 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.05 par value; 40,000,000 shares authorized; 14,228,548 shares issued and 12,648,586 shares outstanding at October 3, 2015 and 14,148,667 shares issued and 12,671,887 shares outstanding at January 3, 2015 | $ 711 | $ 707 |
Additional paid-in capital | 113,824 | 112,529 |
Accumulated other comprehensive (loss) income | (2,519) | 91 |
Accumulated deficit | (59,894) | (62,933) |
Treasury stock (1,579,962 shares at October 3, 2015 and 1,476,780 at January 3, 2015, at cost) | (8,037) | (7,529) |
Stockholders’ equity | 44,085 | 42,865 |
Total liabilities and stockholders’ equity | $ 81,674 | $ 87,273 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Oct. 03, 2015 | Jan. 03, 2015 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 14,228,548 | 14,148,667 |
Common stock, outstanding (in shares) | 12,648,586 | 12,671,887 |
Treasury stock shares (in shares) | 1,579,962 | 1,476,780 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Revenues | $ 45,077 | $ 46,382 | $ 138,329 | $ 144,460 |
Cost of services | 32,275 | 33,221 | 100,134 | 106,087 |
Gross profit | 12,802 | 13,161 | 38,195 | 38,373 |
Operating costs and expenses | ||||
Selling, general and administrative | 10,462 | 9,991 | 31,640 | 29,592 |
Depreciation and amortization | 434 | 337 | 1,084 | 885 |
Operating costs and expenses | 10,896 | 10,328 | 32,724 | 30,477 |
Operating income | 1,906 | 2,833 | 5,471 | 7,896 |
Other (expense) income | ||||
Interest expense and other, net | (113) | (19) | (366) | (45) |
Gain (loss) on foreign currency transactions | (61) | 25 | (61) | 26 |
Other (expense) income | (174) | 6 | (427) | (19) |
Income before income taxes | 1,732 | 2,839 | 5,044 | 7,877 |
Income tax expense | 770 | 962 | 2,005 | 2,780 |
Net income | $ 962 | $ 1,877 | $ 3,039 | $ 5,097 |
Basic net earnings per share (in dollars per share) | $ 0.08 | $ 0.15 | $ 0.24 | $ 0.41 |
Diluted net earnings per share (in dollars per share) | $ 0.07 | $ 0.15 | $ 0.23 | $ 0.40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | ||
Net income | $ 3,039 | $ 5,097 | |
Foreign currency translation adjustment | (2,610) | (457) | |
Comprehensive income | 429 | 4,640 | |
Beginning balance | $ 91 | 815 | |
Amounts reclassified from accumulated other comprehensive income(a) | [1] | 166 | |
Net foreign currency translation adjustment | $ (2,610) | (291) | |
Ending balance | $ (2,519) | $ 524 | |
[1] | This amount represents residual foreign currency translation balances in our Cataract, Inc. and RCM Technologies Ireland Holding Limited subsidiaries after these subsidiaries had been effectively liquidated. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Oct. 03, 2015 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Jan. 03, 2015 | 14,148,667 | 1,476,780 | ||||
Balance at Jan. 03, 2015 | $ 707 | $ 112,529 | $ 91 | $ (62,933) | $ (7,529) | $ 42,865 |
Issuance of stock under employee stock purchase plan (in shares) | 73,048 | |||||
Issuance of stock under employee stock purchase plan | $ 4 | 369 | 373 | |||
Translation adjustment | (2,610) | $ (2,610) | ||||
Issuance of stock upon exercise of stock options (in shares) | 3,500 | 3,500 | ||||
Issuance of stock upon exercise of stock options | 19 | $ 19 | ||||
Share-based compensation expense | 907 | 907 | ||||
Issuance of stock upon vesting of restricted stock awards (in shares) | 3,333 | |||||
Purchase of treasury stock (in shares) | 103,182 | |||||
Purchase of treasury stock | $ (508) | (508) | ||||
Net income | 3,039 | 3,039 | ||||
Balance (in shares) at Oct. 03, 2015 | 14,228,548 | 1,579,962 | ||||
Balance at Oct. 03, 2015 | $ 711 | $ 113,824 | $ (2,519) | $ (59,894) | $ (8,037) | $ 44,085 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 3,039 | $ 5,097 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,084 | 885 |
Stock-based compensation expense | 907 | 551 |
Provision for allowance for doubtful accounts | 840 | 850 |
Deferred income tax expense | 373 | 1,292 |
Changes in assets and liabilities: | ||
Accounts receivable | 3,272 | (5,645) |
Prepaid expenses and other current assets | (45) | (426) |
Net of transit accounts receivable and payable | (2,263) | 131 |
Accounts payable and accrued expenses | 251 | (968) |
Accrued payroll and related costs | (175) | (882) |
Income taxes payable | 205 | 299 |
Total adjustments | 4,449 | (3,913) |
Net cash provided by operating activities | 7,488 | 1,184 |
Cash flows from investing activities: | ||
Property and equipment acquired | (2,551) | (1,952) |
Decrease (increase) in deposits | 18 | $ (71) |
Payments for business acquired | (800) | |
Net cash used in investing activities | (3,333) | $ (2,023) |
Cash flows from financing activities: | ||
Net repayments under line of credit | (5,000) | |
Issuance of stock for employee stock purchase plan | 373 | $ 339 |
Exercise of stock options | 19 | $ 266 |
Common stock repurchases | (508) | |
Contingent consideration paid | (90) | $ (313) |
Net cash (used in) provided by financing activities | (5,206) | 292 |
Effect of exchange rate changes on cash and cash equivalents | (818) | (465) |
Decrease in cash and cash equivalents | (1,869) | (1,012) |
Cash and cash equivalents at beginning of period | 6,411 | 9,317 |
Cash and cash equivalents at end of period | 4,542 | 8,305 |
Supplemental cash flow information: | ||
Interest | 367 | 51 |
Income taxes | 800 | 1,346 |
Non-cash investing activities: | ||
Contingent consideration accrued as part of business acquisition | $ 746 | 765 |
Fixed assets acquired in acquisition | $ 26 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Basis of Presentation The accompanying consolidated interim financial statements of RCM Technologies, Inc. and subsidiaries (“RCM” or the “Company”) are unaudited. The year-end consolidated balance sheet was derived from audited statements but does not include all disclosures required by accounting principles generally accepted in the United States. These statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission pertaining to reports on Form 10-Q and should be read in conjunction with the Company’s consolidated financial statements and the notes thereto for the year ended January 3, 2015 included in the Company’s Annual Report Form 10-K for such period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The consolidated financial statements for the unaudited interim periods presented include all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for such interim periods. Results for the thirteen and thirty-nine week period ended October 3, 2015 are not necessarily indicative of results that may be expected for the full year. |
Note 2 - Fiscal Year
Note 2 - Fiscal Year | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 2. Fiscal Year The Company follows a 52/53 week fiscal reporting calendar ending on the Saturday closest to December 31. The fiscal year ended January 3, 2015 was a 53-week reporting year. The third fiscal quarters of 2015 and 2014 ended on the following dates, respectively: Period Ended Weeks in Quarter Weeks in Year to Date October 3, 2015 Thirteen Thirty-Nine September 27, 2014 Thirteen Thirty-Nine |
Note 3 - Use of Estimates and U
Note 3 - Use of Estimates and Uncertainties | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 3. Use of Estimates and Uncertainties 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, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The Company uses estimates to calculate an allowance for doubtful accounts on its accounts receivables, adequacy of reserves, the tax rate applied and the valuation of certain assets and liability accounts. These estimates can be significant to the operating results and financial position of the Company. The Company has risk participation arrangements with respect to workers compensation and health care insurance. The amounts included in the Company’s costs related to this risk participation are estimated and can vary based on changes in assumptions, the Company’s claims experience or the providers included in the associated insurance programs. Fair Value of Financial Instruments The Company’s carrying value of financial instruments, consisting primarily of accounts receivable, accounts payable and accrued expenses and borrowings under line of credit, approximates fair value due to their liquidity or their short-term nature. The Company does not have derivative products in place to manage risks related to foreign currency fluctuations for its foreign operations or for interest rate changes. |
Note 4 - Accounts Receivable, T
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable The Company’s accounts receivable are comprised as follows: October 3, 2015 January 3, 2015 Billed $ 40,406 $ 47,318 Accrued and unbilled 4,780 4,853 Work-in-progress 8,879 8,027 Allowance for doubtful accounts (1,299 ) (1,011 ) Accounts receivable, net $ 52,766 $ 59,187 Unbilled receivables primarily represent revenues earned whereby those services are ready to be billed as of the balance sheet ending date. Work-in-process primarily represents revenues earned under contracts which the Company contractually invoices at future dates. From time to time, the Company’s Engineering segment enters into agreements to provide, among other things, construction management and engineering services. Pursuant to these agreements, the Company a) may engage subcontractors to provide construction or other services; b) typically earns a fixed percentage of the total project value; and c) assumes no ownership or risks of inventory. Under the terms of the agreements, the Company is typically not required to pay the subcontractor until after the corresponding payment from the Company’s end-client is received. Upon invoicing the end-client on behalf of the subcontractor or staffing agency the Company records this amount simultaneously as both a “transit account receivable” and “transit account payable” as the amount when paid to the Company is due to and generally paid to the subcontractor within a few days. The Company typically does not pay a given transit account payable until the related transit account receivable is collected. The Company’s transit accounts payable generally exceeds the Company’s transit accounts receivable but absolute amounts and spreads fluctuate significantly from quarter to quarter in the normal course of business. The transit accounts receivable was $3.9 million and related transit accounts payable was $4.5 million, for a net liability of $0.6 million, as of October 3, 2015. The transit accounts receivable was $3.8 million and related transit accounts payable was $6.7 million, for a net liability of $2.9 million, as of January 3, 2015. The Company has a subcontract agreement with Black & McDonald Limited (“B&M”) to provide engineering and procurement services under B&M’s master services agreement with Ontario Power Generation (“OPG”). The Company understands that in October 2014, OPG provided to B&M notice of default and termination of a large purchase order from OPG to B&M with respect to which B&M had engaged several subcontractors, including the Company. B&M notified the Company that it is disputing OPG’s default claim on this purchase order. Subsequently, OPG has disputed the services provided on several other smaller purchase orders. As of October 3, 2015 the Company had outstanding accounts receivable from B&M under disputed purchase orders by OPG of $1.7 million and, including such disputed amounts, a total of $5.8 million of outstanding accounts receivable from B&M. OPG has indicated to the Company that it will not make any further payments to B&M on the projects in dispute. The Company has received notice from B&M that while B&M disputes OPG’s assertion it is in default on any contested purchase order, B&M believes that in the event that it is in default under its agreement with OPG, then the Company may also be in default under its agreement with B&M. The Company does not agree with this assertion. The Company does not believe that any of its account receivables from B&M have been materially impaired and believes that its accounts receivable from B&M remain collectible, subject to existing reserves. However, it is possible that a protracted dispute between OPG and B&M may impact the Company’s ability to collect its outstanding accounts receivable in a timely manner. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and Equipment Property and equipment are stated at cost and are depreciated on the straight-line method at rates calculated to provide for retirement of assets at the end of their estimated useful lives. The annual rates are 20% for computer hardware and software as well as furniture and office equipment. Leasehold improvements are amortized over the shorter of the estimated life of the asset or the lease term. Property and equipment are comprised of the following: October 3, 2015 January 3, 2015 Equipment and furniture $ 2,379 $ 2,585 Computers and systems 5,918 6,553 Leasehold improvements 711 781 9,008 9,919 Less: accumulated depreciation and amortization 4,175 6,622 Property and equipment, net $ 4,833 $ 3,297 The Company periodically writes off fully depreciated and amortized assets. The Company wrote off fully depreciated and amortized assets of $3,470 and $916 during the thirty-nine week periods ended October 3, 2015 and September 27, 2014, respectively. |
Note 6 - Acquisitions
Note 6 - Acquisitions | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 6 . Acquisitions The Company has acquired numerous companies throughout its history and those acquisitions have generally included significant future contingent consideration. Future Contingent Payments As of October 3, 2015, the Company had three active acquisition agreements whereby additional contingent consideration may be earned by the former owners: 1) effective July 1, 2012 the Company acquired the business operations of BGA, LLC (“BGA”); 2) effective August 1, 2014 the Company acquired all of the stock of Point Comm, Inc. (“PCI”); and 3) effective July 5, 2015, the Company acquired the business operations of Substation Design Services, LLC (“SDS”). The Company estimates future contingent payments at October 3, 2015 as follows: Fiscal Year BGA PCI SDS Total 2015 $ 127 $ 262 $ - $ 389 2016 271 197 180 648 2017 - 307 253 560 2018 - - 313 313 Estimated future contingent consideration payments $ 398 $ 766 $ 746 $ 1,910 Estimates of future contingent payments are subject to significant judgment and actual payments may materially differ from estimates. Future contingent payments to be made to BGA, PCI and SDS are capped at cumulative maximums of $2.6 million, $2.0 million and $1.5 million, respectively. The Company estimates future contingent consideration payments based on forecasted performance and records the net present value of those expected payments as of October 3, 2015. The measurement is based on significant inputs that are not observable in the market, which “Fair Value Measurements and Disclosures” (ASU Topic 820-10-35) refers to as Level 3 inputs. The Company paid $0.1 million and $0.3 million in contingent consideration during the thirty-nine week periods ended October 3, 2015 and September 27, 2014, respectively. |
Note 7 - Goodwill
Note 7 - Goodwill | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 7. Goodwill Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired in business combinations. The Company is required to assess the carrying value of its reporting units that contain goodwill at least on an annual basis. The Company has the option to first assess qualitative factors to determine whether it is necessary to perform a two-step impairment test. If the Company believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than the carrying value, the quantitative impairment test is required. The Company formally assesses these qualitative factors, and if necessary, conducts its annual goodwill impairment test as of the last day of the Company’s fiscal November each year or if indicators of impairment exist. During all periods presented, the Company determined that the existing qualitative factors did not suggest that an impairment of goodwill exists. Since there have been no indicators of impairment, the Company has not performed a quantitative impairment test. Changes in the carrying amount of goodwill for the thirty-nine week period ended October 3, 2015 are as follows: Engineering Information Technology Specialty Health Care Total Balance as of January 3, 2015 $ 3,004 $ 5,516 $ 1,703 $ 10,223 Goodwill recorded, SDS acquisition 1,407 - - 1,407 Balance as of October 3, 2015 $ 4,411 $ 5,516 $ 1,703 $ 11,630 |
Note 8 - Intangible Assets
Note 8 - Intangible Assets | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 8. Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the Company determines that it is probable that undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or fair value less cost to sell. The Company’s intangible assets consist of customer relationships and non-compete agreements. The following table reflects the components of net intangible assets, excluding goodwill: Engineering Information Technology Total Balance as of January 3, 2015 $ 189 $ 5 $ 194 Amortization of intangibles during the thirty-nine week period ended October 3, 2015 (53 ) (5 ) (58 ) Intangibles acquired, SDS acquisition 140 - 140 Balance as of October 3, 2015 $ 276 $ - $ 276 |
Note 9 - Line of Credit
Note 9 - Line of Credit | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. Line of Credit The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania, amended and restated effective February 20, 2009, which provides for a $35 million revolving credit facility and includes a sub-limit of $5 million for letters of credit (the “Revolving Credit Facility”). The Revolving Credit Facility has been amended several times, most recently on December 12, 2014 when the maturity date was extended to December 11, 2019. Borrowings under the Revolving Credit Facility bear interest at one of two alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, typically borrowed in fixed 30-day increments or (ii) the agent bank’s prime rate generally borrowed over shorter durations. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is not drawn. Unused line fees are recorded as interest expense. The effective interest rate, including unused line fees, for the thirty-nine week period ended October 3, 2015 was 2.5%. All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company’s ability to borrow in order to pay dividends. The Company paid a special cash dividend on December 30, 2014 which was expressly permitted under its amended Revolving Credit Facility. As of October 3, 2015, the Company was in compliance with all covenants contained in its Revolving Credit Facility. Borrowings under the line of credit as of October 3, 2015 and January 3, 2015 were $15.0 million and $20.0 million, respectively, and there were letters of credit outstanding for $0.8 million as of both dates. At October 3, 2015, the Company had availability for additional borrowings under the Revolving Credit Facility of $19.2 million. |
Note 10 - Per Share Data
Note 10 - Per Share Data | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 1 0 . Per Share Data Both basic and diluted earnings per share for all periods are calculated based on the reported earnings in the Company’s consolidated statements of income. The number of shares of common stock used to calculate basic and diluted earnings per share for the thirty-nine week periods ended October 3, 2015 and September 27, 2014 was determined as follows: Thirteen Week Periods Ended Thirty-Nine Week Periods Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Basic weighted average shares outstanding 12,724,899 12,540,955 12,715,236 12,494,793 Dilutive effect of outstanding stock options and restricted stock awards 272,877 217,850 236,648 198,036 Weighted average dilutive shares outstanding 12,997,776 12,758,805 12,951,884 12,692,829 There were 40,000 and 45,000 absolute anti-dilutive shares not included in the calculation of common stock equivalents for the thirty-nine week periods ended October 3, 2015 and September 27, 2014, respectively. These were determined to be anti-dilutive because the exercise prices of these shares for the periods were higher than the average market price of the Company’s common stock for the same periods. Unissued shares of common stock were reserved for the following purposes: October 3, 2015 January 3, 2015 Exercise of options outstanding 44,500 53,000 Restricted stock awards outstanding 496,667 500,000 Future grants of options or shares 425,000 425,000 Shares reserved for employee stock purchase plan 49,436 122,484 Total 1,015,603 1,100,484 |
Note 11 - Share-Based Compensat
Note 11 - Share-Based Compensation | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. Share-Based Compensation At October 3, 2015, the Company had three share-based employee compensation plans. The Company measures the fair value of share-based awards, if and when granted, based on the Black-Scholes method and using the closing market price of the Company’s common stock on the date of grant. Awards vest over periods ranging from one to three years and expire within 10 years of issuance. Share-based compensation expense related to awards is amortized in accordance with applicable vesting periods using the straight-line method. Share-based compensation expense of $907 and $551 was recognized for the thirty-nine week periods ended October 3, 2015 and September 27, 2014, respectively. As of October 3, 2015, the Company had approximately $1.2 million of total unrecognized compensation cost related to all non-vested share-based awards granted under the Company’s various share-based plans, which the Company expects to recognize over approximately a three-year period. These amounts do not include the cost of any additional share-based awards that may be granted in future periods or reflect any potential changes in the Company’s forfeiture rate. Incentive S hare-Based Plans 2000 Employee Stock Incentive Plan (the 2000 Plan) The 2000 Plan, approved by the Company’s stockholders in April 2001, provided for the issuance of up to 1,500,000 shares of the Company’s common stock to officers and key employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. As of October 3, 2015, options to purchase 25,000 shares of common stock granted under the 2000 Plan were outstanding. 2007 Omnibus Equity Compensation Plan (the 2007 Plan) The 2007 Plan, approved by the Company’s stockholders in June 2007, provides for the issuance of up to 700,000 shares of the Company’s common stock to officers, non-employee directors, employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. As of October 3, 2015, under the 2007 Plan, no shares of common stock were available for future grants and options to purchase 19,500 shares of common stock, as well as 296,667 restricted stock units, were outstanding. The 2000 and 2007 Plans are expired and therefore no shares are available for grant thereunder. 2014 Omnibus Equity Compensation Plan (the 2014 Plan) The 2014 Plan, approved by the Company’s stockholders in December 2014, provides for the issuance of up to 625,000 shares of the Company’s common stock to officers, non-employee directors, employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. The Compensation Committee of the Board of Directors determines the vesting period at the time of grant. As of October 3, 2015, under the 2014 Plan, 200,000 restricted stock units were outstanding and 425,000 shares were available for awards thereunder. Stock Options There were no options granted during the thirty-nine week period ended October 3, 2015 and 15,000 options granted during the thirty-nine week period ended September 27, 2014. Activity regarding outstanding options for the thirty-nine week period ended October 3, 2015 is as follows: All Stock Options Outstanding Shares Weighted Average Exercise Price Options outstanding as of January 3, 2015 53,000 $ 7.65 Options granted 0 Options exercised (3,500 ) $ 4.30 Options forfeited/cancelled (5,000 ) $ 5.78 Options outstanding as of October 3, 2015 44,500 $ 8.12 Options outstanding price range at October 3, 2015 $ 5.27 - 9.81 Options exercisable as of October 3, 2015 27,000 $ 9.47 Intrinsic value per share of outstanding stock options as of October 3, 2015 $ 0 Intrinsic value per share of stock options exercised for the thirty-nine week period ended October 3, 2015 $ 2 As of October 3, 2015, the Company had approximately $18 of total unrecognized compensation cost related to all non-vested stock option awards. Restricted Stock Units From time-to-time the Company issues restricted stock units. These restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the three year vesting period become due and payable after the three year vesting period assuming the grantee’s restricted stock unit fully vests. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying consolidated balance sheet. Dividends for restricted stock units that ultimately do not vest are forfeited. To date, the Company has only issued restricted stock units under the 2007 and 2014 Plans. The following summarizes activity in the restricted stock units under the 2007 and 2014 Plans during 2015: Number of Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 3, 2015 500 $ 6.61 Granted - - Vested 3 $ 6.61 Forfeited or expired - - Outstanding non-vested at October 3, 2015 497 $ 6.61 Based on the closing price of the Company’s common stock of $4.84 per share on October 2, 2015 (the last trading day prior to October 3, 2015), the intrinsic value of the non-vested restricted stock units at October 3, 2015 was approximately $2.4 million. As of October 3, 2015, there was approximately $1.2 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over three years. Employee Stock Purchase Plan The Company implemented the 2001 Employee Stock Purchase Plan with stockholder approval, effective January 1, 2001. Such Plan was subsequently amended, pursuant to stockholder approval where required, effective July 1, 2004, June 18, 2009 and September 16, 2009 (the 2001 Employee Stock Purchase Plan, as so amended, the “Purchase Plan”). Under the Purchase Plan, employees meeting certain specific employment qualifications are eligible to participate and can purchase shares of common stock semi-annually through payroll deductions at the lower of 85% of the fair market value of the stock at the commencement or end of the offering period. The purchase plan permits eligible employees to purchase shares of common stock through payroll deductions for up to 10% of qualified compensation. The Company has two offering periods in the Purchase Plan coinciding with the Company’s first two fiscal quarters and the last two fiscal quarters. Actual shares are issued on the first day of the subsequent offering period for the prior offering period payroll deductions. The number of shares issued at the beginning of the current period (as of July 6, 2015) was 40,108. As of October 3, 2015, there were 49,436 shares available for issuance under the Purchase Plan. |
Note 12 - Treasury Stock Transa
Note 12 - Treasury Stock Transactions | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 12. Treasury Stock Transactions On October 28, 2013, the Board of Directors authorized a repurchase program to purchase up to $5.0 million of outstanding shares of common stock at the prevailing market prices, from time to time over the subsequent 12-month period. On September 30, 2014, the Board extended this repurchase program through October 31, 2015. On September 11, 2015, the Board extended this repurchase program through December 31, 2016. During the thirty-nine week period ended October 3, 2015, the Company purchased 103,182 shares at an average price of $4.92 per share. The Company did not repurchase any shares in the comparable prior year period. |
Note 13 - New Accounting Standa
Note 13 - New Accounting Standards | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 13. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern, In April, 2015, The FASB issued ASU 2015-03 S implifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05(ASU 2015-05), I n t ang i b l e s — G ood wil l an d O t h e r — I n t e r na l -U se So ftw a re ( Sub t op i c 350 - 40 ) : C u s t o m e r ’ s A cc oun ti n g f o r F ee s P a i d i n a Cl ou d C o m pu ti n g A rr ang e m e n t |
Note 14 - Segment Information
Note 14 - Segment Information | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 4 . Segment Information The Company follows “Disclosures about Segments of an Enterprise and Related Information,” which establishes standards for companies to report information about operating segments, geographic areas and major customers. The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies ( see Note 1 to the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended January 3, 2015). Segment operating income includes selling, general and administrative expenses directly attributable to that segment as well as charges for allocating corporate costs to each of the operating segments. The following tables reflect the results of the reportable segments consistent with the Company’s management system: Thirteen Week Period Ended October 3, 2015 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 19,224 $ 15,171 $ 10,682 $ - $ 45,077 Cost of services 14,325 10,477 7,473 - 32,275 Gross profit 4,899 4,694 3,209 - 12,802 Selling, general and administrative 3,784 3,653 3,025 - 10,462 Depreciation and amortization 301 78 55 - 434 Operating income $ 814 $ 963 $ 129 $ - $ 1,906 Total assets as of October 3, 2015 $ 39,985 $ 15,278 $ 17,021 $ 9,390 $ 81,674 Capital expenditures $ 263 $ - $ 54 $ 1,240 $ 1,557 Thirteen Week Period Ended September 27, 2014 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 24,835 $ 14,405 $ 7,142 $ - $ 46,382 Cost of services 18,239 9,941 5,041 - 33,221 Gross profit 6,596 4,464 2,101 - 13,161 Selling, general and administrative 4,096 3,560 2,335 - 9,991 Depreciation and amortization 248 61 28 - 337 Operating income $ 2,252 $ 843 $ (262 ) $ - $ 2,833 Total assets as of September 27, 2014 $ 49,169 $ 15,253 $ 16,529 $ 13,389 $ 94,340 Capital expenditures $ 587 $ - $ 9 $ 7 $ 603 Thirty-Nine Week Period Ended October 3, 2015 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 61,843 $ 44,684 $ 31,802 $ - $ 138,329 Cost of services 46,989 30,904 22,241 - 100,134 Gross profit 14,854 13,780 9,561 - 38,195 Selling, general and administrative 11,893 11,291 8,456 - 31,640 Depreciation and amortization 794 172 118 - 1,084 Operating income $ 2,167 $ 2,317 $ 987 $ - $ 5,471 Total assets as of October 3, 2015 $ 39,985 $ 15,278 $ 17,021 $ 9,390 $ 81,674 Capital expenditures $ 1,036 $ - $ 54 $ 1,461 $ 2,551 Thirty-Nine Week Period Ended September 27, 2014 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 75,615 $ 44,076 $ 24,769 $ - $ 144,460 Cost of services 57,695 30,734 17,658 - 106,087 Gross profit 17,920 13,342 7,111 - 38,373 Selling, general and administrative 11,939 10,768 6,885 - 29,592 Depreciation and amortization 642 166 77 - 885 Operating income $ 5,340 $ 2,410 $ 146 - $ 7,896 Total assets as of September 27, 2014 $ 49,169 $ 15,253 $ 16,529 $ 13,389 $ 94,340 Capital expenditures $ 1,120 $ - $ 92 $ 740 $ 1,952 The Company derives a majority of its revenue from offices in the United States. Revenues reported for each operating segment are all from external customers. The Company is domiciled in the United States and its segments operate in the United States, Canada and Puerto Rico. Revenues by geographic area for the thirty-nine week periods ended October 3, 2015 and September 27, 2014 are as follows: Thirteen Week Periods Ended Thirty-Nine Week Periods Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Revenues U. S. $ 36,625 $ 32,651 $ 109,992 $ 103,403 Canada 6,862 12,087 23,231 36,669 Puerto Rico 1,590 1,644 5,106 4,388 $ 45,077 $ 46,382 $ 138,329 $ 144,460 Total assets by geographic area as of the reported periods are as follows: October 3, 2015 January 3, 2015 Total assets U. S. $ 62,068 $ 56,764 Canada 17,752 28,776 Puerto Rico 1,854 1,733 $ 81,674 $ 87,273 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The projected fiscal 2015 effective income tax rates as of October 3, 2015 and applied for the thirty-nine week period ended October 3, 2015 are approximately 41.4% and 26.5% in the United States and Canada, respectively, and yielded a consolidated effective income tax rate of approximately 39.8% for the thirty-nine week period ended October 3, 2015. For the comparable prior year period estimated income tax rates were 41.7% and 27.7% in the United States and Canada, respectively, and yielded a consolidated effective income tax rate of approximately 35.3% for the thirty-nine week period ended September 27, 2014. The relative income or loss generated in each jurisdiction can materially impact the overall effective income tax rate of the Company. |
Note 16 - Contingencies
Note 16 - Contingencies | 9 Months Ended |
Oct. 03, 2015 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 16. Contingencies From time to time, the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. As such, the Company is required to assess the likelihood of any adverse outcomes to these matters as well as potential ranges of losses and possible recoveries. The Company may not be covered by insurance as it pertains to some or all of these matters. A determination of the amount of the provision required for these commitments and contingencies, if any, which would be charged to earnings, is made after careful analysis of each matter. Once established, a provision may change in the future due to new developments or changes in circumstances, and could increase or decrease the Company’s earnings in the period that the changes are made. Asserted claims in these matters sought approximately $1.9 million and $7.6 million in damages as of October 3, 2015 and January 3, 2015, respectively . The primary reason for the reduction is that one matter in which claims of $6.5 million were asserted as of January 3, 2015 was settled without any contribution from the Company. As of October 3, 2015, the Company did not accrue for any such liabilities. Please refer to footnote 4 that discloses the nature of the disputed purchase orders with B&M. The Company is also subject to other pending legal proceedings and claims that arise from time to time in the ordinary course of its business, which may not be covered by insurance. |
Note 4 - Accounts Receivable,24
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | October 3, 2015 January 3, 2015 Billed $ 40,406 $ 47,318 Accrued and unbilled 4,780 4,853 Work-in-progress 8,879 8,027 Allowance for doubtful accounts (1,299 ) (1,011 ) Accounts receivable, net $ 52,766 $ 59,187 |
Note 5 - Property and Equipme25
Note 5 - Property and Equipment (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 3, 2015 January 3, 2015 Equipment and furniture $ 2,379 $ 2,585 Computers and systems 5,918 6,553 Leasehold improvements 711 781 9,008 9,919 Less: accumulated depreciation and amortization 4,175 6,622 Property and equipment, net $ 4,833 $ 3,297 |
Note 6 - Acquisitions (Tables)
Note 6 - Acquisitions (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Fiscal Year BGA PCI SDS Total 2015 $ 127 $ 262 $ - $ 389 2016 271 197 180 648 2017 - 307 253 560 2018 - - 313 313 Estimated future contingent consideration payments $ 398 $ 766 $ 746 $ 1,910 |
Note 7 - Goodwill (Tables)
Note 7 - Goodwill (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Engineering Information Technology Specialty Health Care Total Balance as of January 3, 2015 $ 3,004 $ 5,516 $ 1,703 $ 10,223 Goodwill recorded, SDS acquisition 1,407 - - 1,407 Balance as of October 3, 2015 $ 4,411 $ 5,516 $ 1,703 $ 11,630 |
Note 8 - Intangible Assets (Tab
Note 8 - Intangible Assets (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Engineering Information Technology Total Balance as of January 3, 2015 $ 189 $ 5 $ 194 Amortization of intangibles during the thirty-nine week period ended October 3, 2015 (53 ) (5 ) (58 ) Intangibles acquired, SDS acquisition 140 - 140 Balance as of October 3, 2015 $ 276 $ - $ 276 |
Note 10 - Per Share Data (Table
Note 10 - Per Share Data (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Thirteen Week Periods Ended Thirty-Nine Week Periods Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Basic weighted average shares outstanding 12,724,899 12,540,955 12,715,236 12,494,793 Dilutive effect of outstanding stock options and restricted stock awards 272,877 217,850 236,648 198,036 Weighted average dilutive shares outstanding 12,997,776 12,758,805 12,951,884 12,692,829 |
Unissued Shares of Common Stock [Table Text Block] | October 3, 2015 January 3, 2015 Exercise of options outstanding 44,500 53,000 Restricted stock awards outstanding 496,667 500,000 Future grants of options or shares 425,000 425,000 Shares reserved for employee stock purchase plan 49,436 122,484 Total 1,015,603 1,100,484 |
Note 11 - Share-Based Compens30
Note 11 - Share-Based Compensation (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | All Stock Options Outstanding Shares Weighted Average Exercise Price Options outstanding as of January 3, 2015 53,000 $ 7.65 Options granted 0 Options exercised (3,500 ) $ 4.30 Options forfeited/cancelled (5,000 ) $ 5.78 Options outstanding as of October 3, 2015 44,500 $ 8.12 Options outstanding price range at October 3, 2015 $ 5.27 - 9.81 Options exercisable as of October 3, 2015 27,000 $ 9.47 Intrinsic value per share of outstanding stock options as of October 3, 2015 $ 0 Intrinsic value per share of stock options exercised for the thirty-nine week period ended October 3, 2015 $ 2 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 3, 2015 500 $ 6.61 Granted - - Vested 3 $ 6.61 Forfeited or expired - - Outstanding non-vested at October 3, 2015 497 $ 6.61 |
Note 14 - Segment Information (
Note 14 - Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thirteen Week Period Ended October 3, 2015 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 19,224 $ 15,171 $ 10,682 $ - $ 45,077 Cost of services 14,325 10,477 7,473 - 32,275 Gross profit 4,899 4,694 3,209 - 12,802 Selling, general and administrative 3,784 3,653 3,025 - 10,462 Depreciation and amortization 301 78 55 - 434 Operating income $ 814 $ 963 $ 129 $ - $ 1,906 Total assets as of October 3, 2015 $ 39,985 $ 15,278 $ 17,021 $ 9,390 $ 81,674 Capital expenditures $ 263 $ - $ 54 $ 1,240 $ 1,557 Thirteen Week Period Ended September 27, 2014 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 24,835 $ 14,405 $ 7,142 $ - $ 46,382 Cost of services 18,239 9,941 5,041 - 33,221 Gross profit 6,596 4,464 2,101 - 13,161 Selling, general and administrative 4,096 3,560 2,335 - 9,991 Depreciation and amortization 248 61 28 - 337 Operating income $ 2,252 $ 843 $ (262 ) $ - $ 2,833 Total assets as of September 27, 2014 $ 49,169 $ 15,253 $ 16,529 $ 13,389 $ 94,340 Capital expenditures $ 587 $ - $ 9 $ 7 $ 603 Thirty-Nine Week Period Ended October 3, 2015 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 61,843 $ 44,684 $ 31,802 $ - $ 138,329 Cost of services 46,989 30,904 22,241 - 100,134 Gross profit 14,854 13,780 9,561 - 38,195 Selling, general and administrative 11,893 11,291 8,456 - 31,640 Depreciation and amortization 794 172 118 - 1,084 Operating income $ 2,167 $ 2,317 $ 987 $ - $ 5,471 Total assets as of October 3, 2015 $ 39,985 $ 15,278 $ 17,021 $ 9,390 $ 81,674 Capital expenditures $ 1,036 $ - $ 54 $ 1,461 $ 2,551 Thirty-Nine Week Period Ended September 27, 2014 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 75,615 $ 44,076 $ 24,769 $ - $ 144,460 Cost of services 57,695 30,734 17,658 - 106,087 Gross profit 17,920 13,342 7,111 - 38,373 Selling, general and administrative 11,939 10,768 6,885 - 29,592 Depreciation and amortization 642 166 77 - 885 Operating income $ 5,340 $ 2,410 $ 146 - $ 7,896 Total assets as of September 27, 2014 $ 49,169 $ 15,253 $ 16,529 $ 13,389 $ 94,340 Capital expenditures $ 1,120 $ - $ 92 $ 740 $ 1,952 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Thirteen Week Periods Ended Thirty-Nine Week Periods Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Revenues U. S. $ 36,625 $ 32,651 $ 109,992 $ 103,403 Canada 6,862 12,087 23,231 36,669 Puerto Rico 1,590 1,644 5,106 4,388 $ 45,077 $ 46,382 $ 138,329 $ 144,460 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | October 3, 2015 January 3, 2015 Total assets U. S. $ 62,068 $ 56,764 Canada 17,752 28,776 Puerto Rico 1,854 1,733 $ 81,674 $ 87,273 |
Note 4 - Accounts Receivable,32
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable (Details Textual) - USD ($) $ in Millions | Oct. 03, 2015 | Jan. 03, 2015 |
Transit Accounts Receivable [Member] | ||
Accounts Receivable, Gross, Current | $ 3.9 | $ 3.8 |
Disputed Purchase Order [Member] | B&M [Member] | ||
Contract Receivable | 1.7 | |
Transit Accounts Payable [Member] | ||
Accounts Payable, Current | 4.5 | 6.7 |
B&M [Member] | ||
Contract Receivable | 5.8 | |
Liabitilities, Net | $ 0.6 | $ 2.9 |
Note 4 - Accounts Receivable (D
Note 4 - Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Billed Revenues [Member] | ||
Accounts Receivable, Gross, Current | $ 40,406 | $ 47,318 |
Unbilled Revenues [Member] | ||
Accounts Receivable, Gross, Current | 4,780 | 4,853 |
Work In Progress [Member] | ||
Accounts Receivable, Gross, Current | 8,879 | 8,027 |
Allowance for doubtful accounts | (1,299) | (1,011) |
Accounts receivable, net | $ 52,766 | $ 59,187 |
Note 5 - Property and Equipme34
Note 5 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Annual Depreciation Rate | 20.00% | |
Write Off of Fully Depreciated Property and Equipment | $ 3,470 | $ 916 |
Note 5 - Property and Equipme35
Note 5 - Property and Equipment (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
Equipment and Furniture [Member] | ||
Property and equipment | $ 2,379 | $ 2,585 |
Computers and Systems [Member] | ||
Property and equipment | 5,918 | 6,553 |
Leasehold Improvements [Member] | ||
Property and equipment | 711 | 781 |
Property and equipment | 9,008 | 9,919 |
Less: accumulated depreciation and amortization | 4,175 | 6,622 |
Property and equipment | $ 4,833 | $ 3,297 |
Note 6 - Acquisitions (Details
Note 6 - Acquisitions (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
BGA [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,600 | |
PCI [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 2,000 | |
SDS [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,500 | |
Contingent Consideration [Member] | ||
Payments to Acquire Businesses, Gross | 100 | $ 300 |
Payments to Acquire Businesses, Gross | $ 800 |
Note 6 - Maximum Deferred Consi
Note 6 - Maximum Deferred Consideration Payments (Details) $ in Thousands | Oct. 03, 2015USD ($) |
BGA [Member] | |
2,015 | $ 127 |
2,016 | $ 271 |
2,017 | |
2,018 | |
Estimated future contingent consideration payments | $ 398 |
PCI [Member] | |
2,015 | 262 |
2,016 | 197 |
2,017 | $ 307 |
2,018 | |
Estimated future contingent consideration payments | $ 766 |
SDS [Member] | |
2,015 | |
2,016 | $ 180 |
2,017 | 253 |
2,018 | 313 |
Estimated future contingent consideration payments | 746 |
2,015 | 389 |
2,016 | 648 |
2,017 | 560 |
2,018 | 313 |
Estimated future contingent consideration payments | $ 1,910 |
Note 7 - Changes in Carrying Am
Note 7 - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 03, 2015USD ($) | |
Engineering [Member] | SDS [Member] | |
Goodwill recorded, SDS acquisition | $ 1,407 |
Engineering [Member] | |
Balance as of January 3, 2015 | 3,004 |
Balance as of October 3, 2015 | 4,411 |
Information Technology [Member] | |
Balance as of January 3, 2015 | 5,516 |
Balance as of October 3, 2015 | 5,516 |
Specialty Health Care [Member] | |
Balance as of January 3, 2015 | 1,703 |
Balance as of October 3, 2015 | 1,703 |
SDS [Member] | |
Goodwill recorded, SDS acquisition | 1,407 |
Balance as of January 3, 2015 | 10,223 |
Balance as of October 3, 2015 | $ 11,630 |
Note 8 - Components of Intangib
Note 8 - Components of Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Oct. 03, 2015USD ($) | |
Engineering [Member] | SDS [Member] | |
Intangibles acquired, SDS acquisition | $ 140 |
Engineering [Member] | |
Balance as of January 3, 2015 | 189 |
Amortization of intangibles during the thirty-nine week period ended October 3, 2015 | (53) |
Balance as of October 3, 2015 | 276 |
Information Technology [Member] | |
Balance as of January 3, 2015 | 5 |
Amortization of intangibles during the thirty-nine week period ended October 3, 2015 | $ (5) |
Balance as of October 3, 2015 | |
SDS [Member] | |
Intangibles acquired, SDS acquisition | $ 140 |
Balance as of January 3, 2015 | 194 |
Amortization of intangibles during the thirty-nine week period ended October 3, 2015 | (58) |
Balance as of October 3, 2015 | $ 276 |
Note 9 - Line of Credit (Detail
Note 9 - Line of Credit (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 03, 2015 | Jan. 03, 2015 | Feb. 20, 2009 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Expiration Date | Dec. 11, 2019 | ||
Long-term Line of Credit | $ 15 | $ 20 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 35 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 19.2 | ||
Letter of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 | ||
Letters of Credit Outstanding, Amount | $ 0.8 | $ 0.8 |
Note 10 - Per Share Data (Detai
Note 10 - Per Share Data (Details Textual) - shares | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 40,000 | 45,000 |
Note 10 - Weighted Average Numb
Note 10 - Weighted Average Number of Common Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Basic weighted average shares outstanding (in shares) | 12,724,899 | 12,540,955 | 12,715,236 | 12,494,793 |
Dilutive effect of outstanding stock options and restricted stock awards (in shares) | 272,877 | 217,850 | 236,648 | 198,036 |
Weighted average dilutive shares outstanding (in shares) | 12,997,776 | 12,758,805 | 12,951,884 | 12,692,829 |
Note 10 - Unissued Shares of Co
Note 10 - Unissued Shares of Common Stock Were Reserved For The Following Purposes (Details) - shares | Oct. 03, 2015 | Jan. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 44,500 | 53,000 |
Restricted stock awards outstanding (in shares) | 496,667 | 500,000 |
Future grants of options or shares (in shares) | 425,000 | 425,000 |
Shares reserved for employee stock purchase plan (in shares) | 49,436 | 122,484 |
Total (in shares) | 1,015,603 | 1,100,484 |
Note 11 - Share-Based Compens44
Note 11 - Share-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 06, 2015 | Oct. 03, 2015 | Sep. 27, 2014 | Oct. 02, 2015 | Jan. 03, 2015 |
The 2007 Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 296,667 | ||||
The 2007 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 700,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 19,500 | ||||
The 2000 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 25,000 | ||||
The 2014 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 425,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 200,000 | ||||
The 2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 625,000 | ||||
ESPP [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 49,436 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 40,108 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 497,000 | 500,000 | |||
Restricted Stock [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 2,400 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Common Stock [Member] | |||||
Share Price | $ 4.84 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 73,048 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 15,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 18 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Allocated Share-based Compensation Expense | $ 907 | $ 551 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,200 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 44,500 | 53,000 |
Note 11 - Stock Option Activity
Note 11 - Stock Option Activity (Details) | 9 Months Ended |
Oct. 03, 2015$ / sharesshares | |
Options outstanding as of January 3, 2015, shares (in shares) | shares | 53,000 |
Options outstanding as of January 3, 2015, weighted average exercise price (in dollars per share) | $ 7.65 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0 |
Options exercised, shares (in shares) | shares | (3,500) |
Options exercised, weighted average exercise price (in dollars per share) | $ 4.30 |
Options forfeited/cancelled, shares (in shares) | shares | (5,000) |
Options forfeited/cancelled, weighted average exercise price (in dollars per share) | $ 5.78 |
Options outstanding as of October 3, 2015, shares (in shares) | shares | 44,500 |
Options outstanding as of October 3, 2015, weighted average exercise price (in dollars per share) | $ 8.12 |
Options outstanding price range at October 3, 2015 (in dollars per share) | 5.27 |
Options outstanding price range at October 3, 2015 (in dollars per share) | $ 9.81 |
Options exercisable, shares (in shares) | shares | 27,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 9.47 |
Intrinsic value per share of outstanding stock options as of October 3, 2015 (in dollars per share) | 0 |
Intrinsic value per share of stock options exercised for the thirty-nine week period ended October 3, 2015 (in dollars per share) | $ 2 |
Note 11 - Restricted Stock Unit
Note 11 - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Oct. 03, 2015$ / sharesshares | |
Outstanding non-vested at January 3, 2015 (in shares) | shares | 500 |
Outstanding non-vested at January 3, 2015 (in dollars per share) | $ 6.61 |
Vested (in shares) | shares | 3 |
Vested (in dollars per share) | $ 6.61 |
Outstanding non-vested at October 3, 2015 (in shares) | shares | 497 |
Outstanding non-vested at October 3, 2015 (in dollars per share) | $ 6.61 |
Note 12 - Treasury Stock Tran47
Note 12 - Treasury Stock Transactions (Details Textual) - Stock Repurchase Program 2013 [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 28, 2013 | |
Treasury Stock, Shares, Acquired | 103,182 | 0 | |
Stock Repurchase Program, Authorized Amount | $ 5 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 4.92 |
Note 14 - Results of the Segmen
Note 14 - Results of the Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Engineering [Member] | ||||
Revenue | $ 19,224 | $ 24,835 | $ 61,843 | $ 75,615 |
Cost of services | 14,325 | 18,239 | 46,989 | 57,695 |
Gross profit | 4,899 | 6,596 | 14,854 | 17,920 |
Selling, general and administrative | 3,784 | 4,096 | 11,893 | 11,939 |
Depreciation and amortization | 301 | 248 | 794 | 642 |
Operating income | 814 | 2,252 | 2,167 | 5,340 |
Assets | 39,985 | 49,169 | 39,985 | 49,169 |
Capital expenditures | 263 | 587 | 1,036 | 1,120 |
Information Technology [Member] | ||||
Revenue | 15,171 | 14,405 | 44,684 | 44,076 |
Cost of services | 10,477 | 9,941 | 30,904 | 30,734 |
Gross profit | 4,694 | 4,464 | 13,780 | 13,342 |
Selling, general and administrative | 3,653 | 3,560 | 11,291 | 10,768 |
Depreciation and amortization | 78 | 61 | 172 | 166 |
Operating income | 963 | 843 | 2,317 | 2,410 |
Assets | $ 15,278 | $ 15,253 | $ 15,278 | $ 15,253 |
Capital expenditures | ||||
Specialty Health Care [Member] | ||||
Revenue | $ 10,682 | $ 7,142 | $ 31,802 | $ 24,769 |
Cost of services | 7,473 | 5,041 | 22,241 | 17,658 |
Gross profit | 3,209 | 2,101 | 9,561 | 7,111 |
Selling, general and administrative | 3,025 | 2,335 | 8,456 | 6,885 |
Depreciation and amortization | 55 | 28 | 118 | 77 |
Operating income | 129 | (262) | 987 | 146 |
Assets | 17,021 | 16,529 | 17,021 | 16,529 |
Capital expenditures | $ 54 | $ 9 | $ 54 | $ 92 |
Corporate Segment [Member] | ||||
Revenue | ||||
Cost of services | ||||
Gross profit | ||||
Selling, general and administrative | ||||
Depreciation and amortization | ||||
Operating income | ||||
Assets | $ 9,390 | $ 13,389 | $ 9,390 | $ 13,389 |
Capital expenditures | 1,240 | 7 | 1,461 | 740 |
Revenue | 45,077 | 46,382 | 138,329 | 144,460 |
Cost of services | 32,275 | 33,221 | 100,134 | 106,087 |
Gross profit | 12,802 | 13,161 | 38,195 | 38,373 |
Selling, general and administrative | 10,462 | 9,991 | 31,640 | 29,592 |
Depreciation and amortization | 434 | 337 | 1,084 | 885 |
Operating income | 1,906 | 2,833 | 5,471 | 7,896 |
Assets | 81,674 | 94,340 | 81,674 | 94,340 |
Capital expenditures | $ 1,557 | $ 603 | $ 2,551 | $ 1,952 |
Note 14 - Revenues by Geographi
Note 14 - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
UNITED STATES | ||||
Revenue | $ 36,625 | $ 32,651 | $ 109,992 | $ 103,403 |
CANADA | ||||
Revenue | 6,862 | 12,087 | 23,231 | 36,669 |
PUERTO RICO | ||||
Revenue | 1,590 | 1,644 | 5,106 | 4,388 |
Revenue | $ 45,077 | $ 46,382 | $ 138,329 | $ 144,460 |
Note 14 - Total Assets by Geogr
Note 14 - Total Assets by Geographic Area (Details) - USD ($) $ in Thousands | Oct. 03, 2015 | Jan. 03, 2015 |
UNITED STATES | ||
Total assets | ||
Assets | $ 62,068 | $ 56,764 |
CANADA | ||
Total assets | ||
Assets | 17,752 | 28,776 |
PUERTO RICO | ||
Total assets | ||
Assets | 1,854 | 1,733 |
Assets | $ 81,674 | $ 87,273 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | ||
Effective Income Tax Rate Reconciliation, Percent | 41.40% | 41.70% |
Canada Revenue Agency [Member] | Foreign Tax Authority [Member] | ||
Effective Income Tax Rate Reconciliation, Percent | 26.50% | 27.70% |
Effective Income Tax Rate Reconciliation, Percent | 39.80% | 35.30% |
Note 16 - Contingencies (Detail
Note 16 - Contingencies (Details Textual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 03, 2015 | Jan. 03, 2015 | |
Settled Litigation [Member] | ||
Loss Contingency, Damages Sought, Value | $ 6.5 | |
Loss Contingency, Damages Sought, Value | $ 1.9 | $ 7.6 |