Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 02, 2016 | May. 10, 2016 | |
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) | 12,358,810 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Apr. 02, 2016 | Jan. 02, 2016 |
Domestic Tax Authority [Member] | ||
Current liabilities: | ||
Deferred tax liability | $ 276,000 | |
Foreign Tax Authority [Member] | ||
Current liabilities: | ||
Deferred tax liability | $ 258,000 | 250,000 |
Cash and cash equivalents | 103,000 | 985,000 |
Accounts receivable, net | 53,494,000 | 50,946,000 |
Transit accounts receivable | 2,084,000 | 7,481,000 |
Prepaid expenses and other current assets | $ 3,521,000 | 4,508,000 |
Deferred income tax assets, domestic | 609,000 | |
Total current assets | $ 59,202,000 | 64,529,000 |
Property and equipment, net | 4,725,000 | 4,698,000 |
Deposits | 226,000 | $ 227,000 |
Deferred income tax assets, domestic | 230,000 | |
Goodwill | 11,630,000 | $ 11,630,000 |
Intangible assets, net | 229,000 | 252,000 |
Total other assets | 12,315,000 | 12,109,000 |
Total assets | 76,242,000 | 81,336,000 |
Accounts payable and accrued expenses | 7,439,000 | 7,863,000 |
Transit accounts payable | 6,428,000 | 8,995,000 |
Accrued payroll and related costs | 6,826,000 | 8,606,000 |
Income taxes payable | 339,000 | 343,000 |
Contingent consideration | 787,000 | 822,000 |
Total current liabilities | 21,819,000 | 26,629,000 |
Contingent consideration | 978,000 | 978,000 |
Borrowings under line of credit | 19,900,000 | 21,000,000 |
Total liabilities | $ 42,955,000 | $ 49,133,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $1.00 par value; 5,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common stock, $0.05 par value; 40,000,000 shares authorized; 14,599,426 shares issued and 12,421,362 shares outstanding at April 2, 2016 and 14,559,381 shares issued and 12,496,635 shares outstanding at January 2, 2016 | 730,000 | 728,000 |
Additional paid-in capital | 114,718,000 | 114,331,000 |
Accumulated other comprehensive loss | (2,553,000) | (2,845,000) |
Accumulated deficit | (68,645,000) | (69,646,000) |
Treasury stock (2,178,064 shares at April 2, 2016 and 2,062,746 at January 2, 2016, at cost) | (10,963,000) | (10,365,000) |
Stockholders’ equity | 33,287,000 | 32,203,000 |
Total liabilities and stockholders’ equity | $ 76,242,000 | $ 81,336,000 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Apr. 02, 2016 | Jan. 02, 2016 |
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) | 14,599,426 | 14,559,381 |
Common stock, outstanding (in shares) | 12,421,362 | 12,496,635 |
Treasury stock shares (in shares) | 2,178,064 | 2,062,746 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Revenues | $ 47,176 | $ 47,966 |
Cost of services | 34,500 | 34,663 |
Gross profit | 12,676 | 13,303 |
Operating costs and expenses | ||
Selling, general and administrative | 10,465 | 10,632 |
Depreciation and amortization | 390 | 316 |
10,855 | 10,948 | |
Operating income | 1,821 | 2,355 |
Other (expense) income | ||
Interest expense and other, net | (212) | (124) |
Gain (loss) on foreign currency transactions | 12 | (11) |
(200) | (135) | |
Income before income taxes | 1,621 | 2,220 |
Income tax expense | 620 | 832 |
Net income | $ 1,001 | $ 1,388 |
Basic and diluted net earnings per share (in dollars per share) | $ 0.08 | $ 0.11 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Net income | $ 1,001 | $ 1,388 |
Foreign currency translation adjustment | 292 | (1,679) |
Comprehensive income (loss) | $ 1,293 | $ (291) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 3 months ended Apr. 02, 2016 - USD ($) | 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. 02, 2016 | 14,559,381 | 2,062,746 | ||||
Balance at Jan. 02, 2016 | $ 728,000 | $ 114,331,000 | $ (2,845,000) | $ (69,646,000) | $ (10,365,000) | $ 32,203,000 |
Issuance of stock under employee stock purchase plan (in shares) | 40,045 | |||||
Issuance of stock under employee stock purchase plan | $ 2,000 | 186,000 | 188,000 | |||
Translation adjustment | 292,000 | 292,000 | ||||
Share-based compensation expense | 201,000 | 201,000 | ||||
Common stock repurchase (in shares) | 115,318 | |||||
Common stock repurchase | $ (598,000) | (598,000) | ||||
Net income | 1,001,000 | 1,001,000 | ||||
Balance (in shares) at Apr. 02, 2016 | 14,599,426 | 2,178,064 | ||||
Balance at Apr. 02, 2016 | $ 730,000 | $ 114,718,000 | $ (2,553,000) | $ (68,645,000) | $ (10,963,000) | $ 33,287,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,001 | $ 1,388 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 390 | 316 |
Stock-based compensation expense | 201 | 304 |
Provision for allowance for doubtful accounts | 13 | 390 |
Deferred income tax expense | 111 | 125 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,222) | (4,991) |
Prepaid expenses and other current assets | 1,053 | (68) |
Net of transit accounts receivable and payable | 2,827 | (2,106) |
Accounts payable and accrued expenses | (491) | 1,519 |
Accrued payroll and related costs | (1,813) | (1,631) |
Income taxes payable | (16) | (155) |
Total adjustments | 53 | (6,297) |
Net cash provided by (used in) operating activities | 1,054 | (4,909) |
Cash flows from investing activities: | ||
Property and equipment acquired | (394) | (615) |
Decrease (increase) in deposits | 1 | (2) |
Net cash used in investing activities | (393) | $ (617) |
Cash flows from financing activities: | ||
Net repayments under line of credit | (1,100) | |
Issuance of stock for employee stock purchase plan | $ 188 | $ 179 |
Exercise of stock options | $ 19 | |
Common stock repurchases | $ (598) | |
Contingent consideration paid | (35) | $ (90) |
Net cash (used in) provided by financing activities | (1,545) | 108 |
Effect of exchange rate changes on cash and cash equivalents | 2 | (465) |
Decrease in cash and cash equivalents | (882) | (5,883) |
Cash and cash equivalents at beginning of period | 985 | 6,411 |
Cash and cash equivalents at end of period | 103 | 528 |
Supplemental cash flow information: | ||
Interest | $ 192 | 128 |
Income taxes | $ 455 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Apr. 02, 2016 | |
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 2, 2016 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 week period ended April 2, 2016 are not necessarily indicative of results that may be expected for the full year. |
Note 2 - Fiscal Year
Note 2 - Fiscal Year | 3 Months Ended |
Apr. 02, 2016 | |
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 2, 2016 was a 52-week reporting year. The first fiscal quarters of 2016 and 2015 ended on the following dates, respectively: Period Ended Weeks in Quarter Weeks in Year to Date April 2, 2016 Thirteen Thirteen April 4, 2015 Thirteen Thirteen |
Note 3 - Use of Estimates and U
Note 3 - Use of Estimates and Uncertainties | 3 Months Ended |
Apr. 02, 2016 | |
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 | 3 Months Ended |
Apr. 02, 2016 | |
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: April 2, 2016 January 2, 2016 Billed $ 43,506 $ 40,117 Accrued and unbilled 5,061 4,939 Work-in-progress 6,474 7,322 Allowance for doubtful accounts (1,547 ) (1,432 ) Accounts receivable, net $ 53,494 $ 50,946 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 $2.1 million and related transit accounts payable was $6.4 million, for a net liability of $4.3 million, as of April 2, 2016. The transit accounts receivable was $7.5 million and related transit accounts payable was $9.0 million, for a net liability of $1.5 million, as of January 2, 2016. |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 3 Months Ended |
Apr. 02, 2016 | |
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: April 2, 2016 April 4, 2015 Equipment and furniture $ 1,009 $ 2,243 Computers and systems 5,592 4,176 Leasehold improvements 759 674 7,360 7,093 Less: accumulated depreciation and amortization 2,635 3,473 Property and equipment, net $ 4,725 $ 3,620 The Company periodically writes off fully depreciated and amortized assets. The Company wrote off fully depreciated and amortized assets of $2,263 and $3,441 during the thirteen week periods ended April 2, 2016 and April 4, 2015, respectively. Depreciation expense for the thirteen week periods ended April 2, 2016 and April 4, 2015 was $367 and $294, respectively. |
Note 6 - Acquisitions
Note 6 - Acquisitions | 3 Months Ended |
Apr. 02, 2016 | |
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 April 2, 2016, the Company had three active acquisition agreements whereby additional contingent consideration may be earned by the former shareholders: 1) effective July 1, 2012 the Company acquired certain assets 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 certain assets of Substation Design Services, LLC (“SDS”). The Company estimates future contingent payments at April 2, 2016 as follows: Fiscal Year Ending Total December 31, 2016 $ 787 December 30, 2017 665 December 30, 2018 313 Estimated future contingent consideration payments $ 1,765 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 $1.9 million, $1.9 million and $1.5 million, respectively. The Company estimates future contingent consideration in payments based on forecasted performance and recorded at the net present value of those expected payments as of April 2, 2016. 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 $35 and $90 in contingent consideration during the thirteen week periods ended April 2, 2016 and April 4, 2015, respectively. SDS Effective July 5, 2015, the Company acquired the business operations of SDS, a Pennsylvania based engineering company specializing in the in design services for substation projects. SDS has experience with substation design, including electrical design, system protection and control design, and civil structural design. The Company expects the purchase of SDS to complement and expand RCM’s engineering services offerings and provide RCM’s customers with a stronger depth of experienced engineering resources. The Company believes that the SDS assembled workforce consists of highly trained and experienced engineers that will greatly assist RCM in executing future growth in revenues. The SDS acquisition operates as part of the Company’s Engineering segment. |
Note 7 - Goodwill
Note 7 - Goodwill | 3 Months Ended |
Apr. 02, 2016 | |
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. There were no changes in the carrying amount of goodwill for the thirteen week period ended April 2, 2016. Engineering Information Technology Specialty Health Care Total Balance as of April 2, 2016 $ 4,411 $ 5,516 $ 1,703 $ 11,630 |
Note 8 - Intangible Assets
Note 8 - Intangible Assets | 3 Months Ended |
Apr. 02, 2016 | |
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 all of which is attributable to the Company’s Engineering segment: Total Balance as of January 2, 2016 $ 252 Amortization of intangibles during the thirteen week period ended April 2, 2016 23 Balance as of April 2, 2016 $ 229 |
Note 9 - Line of Credit
Note 9 - Line of Credit | 3 Months Ended |
Apr. 02, 2016 | |
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”) and expires December 11, 2019. The Revolving Credit Facility has been amended several times, most recently pursuant to the Fifth Amendment entered into on December 14, 2015 when certain definitions, including without limitation those of terms that are elements of the financial covenants contained in the Revolving Credit Facility, including Applicable LIBOR Rate Margin, Applicable Prime Rate Margin, Fixed Charge Ratio, Letter of Credit Applicable Margin and Permitted Dividend. The Amendment also deletes the definition of Modified Current Ratio. The Fifth Amendment also revised certain provisions relating to unused line fees, permitted dividends, a permitted disposition, fees for unused availability under the revolving credit line and certain elements of the financial and operating covenants. 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 thirteen week period ended April 2, 2016 was 3.1%. 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 special cash dividends on December 30, 2014 and December 30, 2015 which were expressly permitted under the Revolving Credit Facility. As of April 2, 2016, the Company was in compliance with all covenants contained in its Revolving Credit Facility. Borrowings under the line of credit as of April 2, 2016 and January 2, 2016 were $19.9 million and $21.0 million, respectively. At April 2, 2016 and January 2, 2016 there were letters of credit outstanding for $0.7 million and $0.8 million, respectively. At April 2, 2016, the Company had availability for additional borrowings under the Revolving Credit Facility of $14.4 million. |
Note 10 - Per Share Data
Note 10 - Per Share Data | 3 Months Ended |
Apr. 02, 2016 | |
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 thirteen week periods ended April 2, 2016 and April 4, 2015 was determined as follows: Thirteen Week Periods Ended April 2, 2016 April 4, 2015 Basic weighted average shares outstanding 12,482,547 12,456,220 Dilutive effect of outstanding stock options and restricted stock awards 67,198 210,261 Weighted average dilutive shares outstanding 12,549,745 12,666,481 There were 69,500 and 240,000 absolute anti-dilutive shares not included in the calculation of common stock equivalents for the thirteen week periods ended April 2, 2016 and April 4, 2015, 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: April 2, 2016 January 2, 2016 Exercise of options outstanding 44,500 44,500 Time-based restricted stock units outstanding 233,834 208,834 Performance-based restricted stock units outstanding 200,000 0 Future grants of options or shares 157,000 382,000 Shares reserved for employee stock purchase plan 309,391 349,436 Total 944,725 984,770 |
Note 11 - Share-based Compensat
Note 11 - Share-based Compensation | 3 Months Ended |
Apr. 02, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. Share-Based Compensation At April 2, 2016, the Company had four 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 time-based awards is amortized in accordance with applicable vesting periods using the straight-line method. The Company vests performance-based awards only when the performance metrics are likely to be achieved and the associated awards are therefore likely to vest. Performance-based share awards that are likely to vest are also expensed on a straight-line basis over the vesting period but may vest on a retroactive basis or be reversed, depending on when it is determined that they are likely to vest, or in the case of a reversal when they are later determined to be unlikely to vest. Share-based compensation expense of $201 and $304 was recognized for the for the thirteen week periods ended April 2, 2016 and April 4, 2015, respectively, and did not include any expense associated with performance-based restricted stock units as they were determined to be unlikely to vest as of April 2, 2016. As of April 2, 2016, the Company had approximately $0.9 million of total unrecognized compensation cost related to all time-based non-vested share-based awards granted under the Company’s various share-based plans, which the Company expects to recognize over approximately a two-year period. These amounts do not include a) performance-based restricted stock units, b) the cost of any additional share-based awards that may be granted in future periods or c) 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 April 2, 2016, options to purchase 25,000 shares of common stock granted under the 2000 Plan were outstanding. Incentive Share-Based Plans (Continued) 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 April 2, 2016, 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 25,834 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 April 2, 2016, under the 2014 Plan, 408,000 restricted stock units were outstanding and 157,000 shares were available for awards thereunder. Employee Stock Purchase Plan The Company implemented the 2001 Employee Stock Purchase Plan (the “Purchase Plan”) with shareholder approval, effective January 1, 2001. 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. In fiscal 2015, the Company amended the Purchase Plan with shareholder approval to increase the aggregate number of shares of stock reserved for issuance or transfer under the Plan by an additional 300,000 shares so that the total number of shares of stock reserved for issuance or transfer under the Plan shall be 1,100,000 shares and to extend the expiration date of the Plan to December 31, 2025. 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 January 4, 2016) was 40,045. As of April 2, 2016, there were 309,391 shares available for issuance under the Purchase Plan. Stock Options There were no options granted during both the thirteen week periods ended April 2, 2016 and April 4, 2015. Activity regarding outstanding options for the thirteen week period ended April 2, 2016 is as follows: All Stock Options Outstanding Shares Weighted Average Exercise Price Options outstanding as of January 2, 2016 44,500 $ 8.12 Options granted - $ 0.00 Options exercised - $ 0.00 Options forfeited/cancelled - $ 0.00 Options outstanding as of April 2, 2016 44,500 $ 8.12 Options outstanding price range at April 2, 2016 $5.27 - $9.81 Options exercisable as of April 2, 2016 29,500 $ 9.15 Intrinsic value per share of outstanding stock options as of April 2, 2016 $0.00 As of April 2, 2016, the Company had approximately $13 of total unrecognized compensation cost related to all non-vested stock option awards. Time-Based Restricted Stock Units From time-to-time the Company issues time-based restricted stock units. These time-based restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the 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 time-based restricted stock units that ultimately do not vest are forfeited. To date, the Company has only issued time-based restricted stock units under the 2007 and 2014 Plans. The following summarizes the activity in the time-based restricted stock units under the 2007 and 2014 Plans during 2016: Number of Time-Based Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 2, 2016 209 $ 7.10 Granted 25 $ 5.41 Vested - - Forfeited or expired - - Outstanding non-vested at April 2, 2016 234 $ 6.92 Time-Based Restricted Stock Units (Continued) Based on the closing price of the Company’s common stock of $5.25 per share on April 1, 2016 (the last trading day prior to April 2, 2016), the intrinsic value of the time-based non-vested restricted stock units at April 2, 2016 was approximately $1.2 million. As of April 2, 2016, there was approximately $0.9 million of total unrecognized compensation cost related to time-based restricted stock units, which is expected to be recognized over the vesting period of the restricted stock units. Performance Based Restricted Stock Units From time-to-time the Company issues performance-based restricted stock units to its executives. Performance-based restricted stock units are typically vested based on certain multi-year performance metrics as determined by the Board of Directors Compensation Committee. These performance-based restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period on any stock units that actually vest, if any. 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 performance-based restricted stock units that ultimately do not vest are forfeited. To date, the Company has only issued performance-based restricted stock units under the 2014 Plan. The following summarizes the activity in the performance-based restricted stock units during 2016: Number of Performance-Based Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 2, 2016 - - Granted 200 $ 5.36 Vested - - Forfeited or expired - - Outstanding non-vested at April 2, 2016 200 $ 5.36 As of April 2, 2016, the Company considers the performance-based restricted stock unit metrics unlikely to be achieved, thus no performance condition is probable of achievement and no compensation cost will be recognized on the performance-based restricted stock units. The Company will reassess at each reporting date whether achievement of any performance condition is probable and would begin recognizing compensation cost if and when achievement of the performance condition becomes probable. The Company will then recognize the appropriate expense cumulatively in the year performance becomes probable and recognize the remaining compensation cost over the remaining requisite service period. |
Note 12 - Treasury Stock Transa
Note 12 - Treasury Stock Transactions | 3 Months Ended |
Apr. 02, 2016 | |
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 thirteen week period ended April 2, 2016, the Company purchased 115,318 shares at an average price of $5.19 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 | 3 Months Ended |
Apr. 02, 2016 | |
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 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 In November 2015, The FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. . In February 2016 the FASB issued ASU No. 2016-02 , Leases (Topic 842), In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), In March 2016, the FASB issued ASU No. 2016-09 , Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing |
Note 14 - Segment Information
Note 14 - Segment Information | 3 Months Ended |
Apr. 02, 2016 | |
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 2, 2016). 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 April 2, 2016 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 18,685 $ 12,740 $ 15,751 $ - $ 47,176 Cost of services 13,853 8,947 11,700 - 34,500 Gross profit 4,832 3,793 4,051 - 12,676 Selling, general and administrative 3,820 3,137 3,508 - 10,465 Depreciation and amortization 276 52 62 - 390 Operating income $ 736 $ 604 $ 481 $ - $ 1,821 Total assets as of April 2, 2016 $ 37,105 $ 13,985 $ 20,545 $ 4,607 $ 76,242 Capital expenditures $ 281 $ 24 $ 75 $ 14 $ 394 Thirteen Week Period Ended April 4, 2015 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 22,791 $ 14,655 $ 10,520 $ - $ 47,966 Cost of services 17,164 10,097 7,402 - 34,663 Gross profit 5,627 4,558 3,118 - 13,303 Selling, general and administrative 4,273 3,703 2,656 - 10,632 Depreciation and amortization 235 50 31 - 316 Operating income $ 1,119 $ 805 $ 431 $ - $ 2,355 Total assets as of April 4, 2015 $ 47,003 $ 15,495 $ 18,057 $ 4,912 $ 85,467 Capital expenditures $ 398 $ - $ - $ 217 $ 615 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 thirteen week periods ended April 2, 2016 and April 4, 2015 are as follows: Thirteen Week Periods Ended April 2, 2016 April 4, 2015 Revenues U. S. $ 39,783 $ 36,695 Canada 6,209 9,612 Puerto Rico 1,184 1,659 $ 47,176 $ 47,966 Total assets by geographic area as of the reported periods are as follows: April 2, 2016 January 2, 2016 Total assets U. S. $ 57,789 $ 63,886 Canada 16,562 15,640 Puerto Rico 1,891 1,810 $ 76,242 $ 81,336 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Apr. 02, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The projected fiscal 2016 effective income tax rates as of April 2, 2016 and applied for the thirteen week period ended April 2, 2016 are approximately 41.6% and 26.5% in the United States and Canada, respectively, and yielded a consolidated effective income tax rate of approximately 38.2% for the thirteen week period ended April 2, 2016. For the comparable prior year period estimated income tax rates were 41.8% and 31.0% in the United States and Canada, respectively, and yielded a consolidated effective income tax rate of approximately 37.5% for the thirteen week period ended April 4, 2015. 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 | 3 Months Ended |
Apr. 02, 2016 | |
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 in damages as of both April 2, 2016 and January 2, 2016 . As of April 2, 2016, the Company did not accrue for any such liabilities. 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) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | April 2, 2016 January 2, 2016 Billed $ 43,506 $ 40,117 Accrued and unbilled 5,061 4,939 Work-in-progress 6,474 7,322 Allowance for doubtful accounts (1,547 ) (1,432 ) Accounts receivable, net $ 53,494 $ 50,946 |
Note 5 - Property and Equipme25
Note 5 - Property and Equipment (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | April 2, 2016 April 4, 2015 Equipment and furniture $ 1,009 $ 2,243 Computers and systems 5,592 4,176 Leasehold improvements 759 674 7,360 7,093 Less: accumulated depreciation and amortization 2,635 3,473 Property and equipment, net $ 4,725 $ 3,620 |
Note 6 - Acquisitions (Tables)
Note 6 - Acquisitions (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Fiscal Year Ending Total December 31, 2016 $ 787 December 30, 2017 665 December 30, 2018 313 Estimated future contingent consideration payments $ 1,765 |
Note 7 - Goodwill (Tables)
Note 7 - Goodwill (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Engineering Information Technology Specialty Health Care Total Balance as of April 2, 2016 $ 4,411 $ 5,516 $ 1,703 $ 11,630 |
Note 8 - Intangible Assets (Tab
Note 8 - Intangible Assets (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Total Balance as of January 2, 2016 $ 252 Amortization of intangibles during the thirteen week period ended April 2, 2016 23 Balance as of April 2, 2016 $ 229 |
Note 10 - Per Share Data (Table
Note 10 - Per Share Data (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Thirteen Week Periods Ended April 2, 2016 April 4, 2015 Basic weighted average shares outstanding 12,482,547 12,456,220 Dilutive effect of outstanding stock options and restricted stock awards 67,198 210,261 Weighted average dilutive shares outstanding 12,549,745 12,666,481 |
Unissued Shares of Common Stock [Table Text Block] | April 2, 2016 January 2, 2016 Exercise of options outstanding 44,500 44,500 Time-based restricted stock units outstanding 233,834 208,834 Performance-based restricted stock units outstanding 200,000 0 Future grants of options or shares 157,000 382,000 Shares reserved for employee stock purchase plan 309,391 349,436 Total 944,725 984,770 |
Note 11 - Share-based Compens30
Note 11 - Share-based Compensation (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
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 2, 2016 44,500 $ 8.12 Options granted - $ 0.00 Options exercised - $ 0.00 Options forfeited/cancelled - $ 0.00 Options outstanding as of April 2, 2016 44,500 $ 8.12 Options outstanding price range at April 2, 2016 $5.27 - $9.81 Options exercisable as of April 2, 2016 29,500 $ 9.15 Intrinsic value per share of outstanding stock options as of April 2, 2016 $0.00 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Number of Time-Based Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 2, 2016 209 $ 7.10 Granted 25 $ 5.41 Vested - - Forfeited or expired - - Outstanding non-vested at April 2, 2016 234 $ 6.92 Number of Performance-Based Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value per Share Outstanding non-vested at January 2, 2016 - - Granted 200 $ 5.36 Vested - - Forfeited or expired - - Outstanding non-vested at April 2, 2016 200 $ 5.36 |
Note 14 - Segment Information (
Note 14 - Segment Information (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Thirteen Week Period Ended April 2, 2016 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 18,685 $ 12,740 $ 15,751 $ - $ 47,176 Cost of services 13,853 8,947 11,700 - 34,500 Gross profit 4,832 3,793 4,051 - 12,676 Selling, general and administrative 3,820 3,137 3,508 - 10,465 Depreciation and amortization 276 52 62 - 390 Operating income $ 736 $ 604 $ 481 $ - $ 1,821 Total assets as of April 2, 2016 $ 37,105 $ 13,985 $ 20,545 $ 4,607 $ 76,242 Capital expenditures $ 281 $ 24 $ 75 $ 14 $ 394 Thirteen Week Period Ended April 4, 2015 Engineering Information Technology Specialty Health Care Corporate Total Revenue $ 22,791 $ 14,655 $ 10,520 $ - $ 47,966 Cost of services 17,164 10,097 7,402 - 34,663 Gross profit 5,627 4,558 3,118 - 13,303 Selling, general and administrative 4,273 3,703 2,656 - 10,632 Depreciation and amortization 235 50 31 - 316 Operating income $ 1,119 $ 805 $ 431 $ - $ 2,355 Total assets as of April 4, 2015 $ 47,003 $ 15,495 $ 18,057 $ 4,912 $ 85,467 Capital expenditures $ 398 $ - $ - $ 217 $ 615 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Thirteen Week Periods Ended April 2, 2016 April 4, 2015 Revenues U. S. $ 39,783 $ 36,695 Canada 6,209 9,612 Puerto Rico 1,184 1,659 $ 47,176 $ 47,966 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | April 2, 2016 January 2, 2016 Total assets U. S. $ 57,789 $ 63,886 Canada 16,562 15,640 Puerto Rico 1,891 1,810 $ 76,242 $ 81,336 |
Note 4 - Accounts Receivable,32
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable (Details Textual) - USD ($) $ in Millions | Apr. 02, 2016 | Jan. 02, 2016 |
Transit Accounts Receivable [Member] | ||
Accounts Receivable, Gross, Current | $ 2.1 | $ 7.5 |
Transit Accounts Payable [Member] | ||
Accounts Payable, Current | 6.4 | 9 |
Liabitilities, Net | $ 4.3 | $ 1.5 |
Note 4 - Accounts Receivable (D
Note 4 - Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Billed Revenues [Member] | ||
Accounts Receivable, Gross, Current | $ 43,506 | $ 40,117 |
Unbilled Revenues [Member] | ||
Accounts Receivable, Gross, Current | 5,061 | 4,939 |
Work In Progress [Member] | ||
Accounts Receivable, Gross, Current | 6,474 | 7,322 |
Allowance for doubtful accounts | (1,547) | (1,432) |
Accounts receivable, net | $ 53,494 | $ 50,946 |
Note 5 - Property and Equipme34
Note 5 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Annual Depreciation Rate | 20.00% | |
Write Off of Fully Depreciated Property and Equipment | $ 2,263 | $ 3,441 |
Depreciation | $ 367 | $ 294 |
Note 5 - Property and Equipme35
Note 5 - Property and Equipment (Details) - USD ($) | Apr. 02, 2016 | Jan. 02, 2016 | Apr. 04, 2015 |
Equipment and Furniture [Member] | |||
Property and equipment | $ 1,009,000 | $ 2,243,000 | |
Computers and Systems [Member] | |||
Property and equipment | 5,592,000 | 4,176,000 | |
Leasehold Improvements [Member] | |||
Property and equipment | 759,000 | 674,000 | |
Property and equipment | 7,360,000 | 7,093,000 | |
Less: accumulated depreciation and amortization | 2,635,000 | 3,473,000 | |
Property and equipment, net | $ 4,725,000 | $ 4,698,000 | $ 3,620,000 |
Note 6 - Acquisitions (Details
Note 6 - Acquisitions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
BGA [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 1,900 | |
PCI [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,900 | |
SDS [Member] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,500 | |
Contingent Consideration [Member] | ||
Payments to Acquire Businesses, Gross | $ 35 | $ 90 |
Note 6 - Maximum Deferred Consi
Note 6 - Maximum Deferred Consideration Payments (Details) - BGA [Member] $ in Thousands | Apr. 02, 2016USD ($) |
December 31, 2016 | $ 787 |
December 30, 2017 | 665 |
December 30, 2018 | 313 |
Estimated future contingent consideration payments | $ 1,765 |
Note 7 - Changes in Carrying Am
Note 7 - Changes in Carrying Amount of Goodwill (Details) - USD ($) | Apr. 02, 2016 | Jan. 02, 2016 |
Engineering [Member] | ||
Balance | $ 4,411,000 | |
Information Technology [Member] | ||
Balance | 5,516,000 | |
Specialty Health Care [Member] | ||
Balance | 1,703,000 | |
Balance | $ 11,630,000 | $ 11,630,000 |
Note 8 - Components of Intangib
Note 8 - Components of Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Apr. 02, 2016USD ($) | |
Beginning balance | $ 252 |
Amortization of intangibles during the thirteen week period ended April 2, 2016 | 23 |
Ending balance | $ 229 |
Note 9 - Line of Credit (Detail
Note 9 - Line of Credit (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 02, 2016 | Jan. 02, 2016 | Feb. 20, 2009 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Expiration Date | Dec. 11, 2019 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | ||
Long-term Line of Credit | $ 19.9 | $ 21 | |
Line of Credit Facility, Remaining Borrowing Capacity | 14.4 | ||
Letter of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 | ||
Letters of Credit Outstanding, Amount | $ 0.7 | $ 0.8 |
Note 10 - Per Share Data (Detai
Note 10 - Per Share Data (Details Textual) - shares | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 69,500 | 240,000 |
Note 10 - Weighted Average Numb
Note 10 - Weighted Average Number of Common Shares (Details) - shares | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Basic weighted average shares outstanding (in shares) | 12,482,547 | 12,456,220 |
Dilutive effect of outstanding stock options and restricted stock awards (in shares) | 67,198 | 210,261 |
Weighted average dilutive shares outstanding (in shares) | 12,549,745 | 12,666,481 |
Note 10 - Unissued Shares of Co
Note 10 - Unissued Shares of Common Stock Were Reserved For The Following Purposes (Details) - shares | Apr. 02, 2016 | Jan. 02, 2016 |
Time-based Restricted Stock Units [Member] | ||
Restricted stock units outstanding (in shares) | 233,834 | 208,834 |
Performance-based Restricted Stock Units [Member] | ||
Restricted stock units outstanding (in shares) | 200,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 44,500 | 44,500 |
Future grants of options or shares (in shares) | 157,000 | 382,000 |
Shares reserved for employee stock purchase plan (in shares) | 309,391 | 349,436 |
Common Stock, Capital Shares Reserved for Future Issuance | 944,725 | 984,770 |
Note 11 - Share-based Compens44
Note 11 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jan. 04, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Jan. 02, 2016 | Apr. 01, 2016 |
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 | ||||
The 2000 Plan [Member] | |||||
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 2007 Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 25,834 | ||||
The 2007 Plan [Member] | |||||
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 2014 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 408,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 157,000 | ||||
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 | 309,391 | ||||
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% | ||||
Additional Shares of Common Stock Reserved for Future Issuance | 300,000 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,100,000 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 40,045 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 13 | ||||
Time-based Restricted Stock Units [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 900 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 234,000 | 209,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 1,200 | ||||
Common Stock [Member] | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 40,045 | ||||
Share Price | $ 5.25 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Allocated Share-based Compensation Expense | $ 201 | $ 304 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 900 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 44,500 | 44,500 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 944,725 | 984,770 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Note 11 - Stock Option Activity
Note 11 - Stock Option Activity (Details) | 3 Months Ended |
Apr. 02, 2016$ / sharesshares | |
Options outstanding (in shares) | shares | 44,500 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.12 |
Options granted, weighted average exercise price (in dollars per share) | 0 |
Options exercised, weighted average exercise price (in dollars per share) | 0 |
Options forfeited/cancelled, weighted average exercise price (in dollars per share) | $ 0 |
Options outstanding (in shares) | shares | 44,500 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 8.12 |
Options outstanding price range (in dollars per share) | 5.27 |
Options outstanding price range (in dollars per share) | $ 9.81 |
Options exercisable (in shares) | shares | 29,500 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 9.15 |
Intrinsic value per share of outstanding stock options (in dollars per share) | $ 0 |
Note 11 - Restricted Stock Unit
Note 11 - Restricted Stock Units Activity (Details) shares in Thousands | 3 Months Ended |
Apr. 02, 2016$ / sharesshares | |
Time-based Restricted Stock Units [Member] | |
Outstanding non-vested at January 2, 2016 (in shares) | 209 |
Outstanding non-vested at January 2, 2016 (in dollars per share) | $ / shares | $ 7.10 |
Granted (in shares) | 25 |
Granted (in dollars per share) | $ / shares | $ 5.41 |
Outstanding non-vested at April 2, 2016 (in shares) | 234 |
Outstanding non-vested at April 2, 2016 (in dollars per share) | $ / shares | $ 6.92 |
Performance-based Restricted Stock Units [Member] | |
Outstanding non-vested at January 2, 2016 (in shares) | |
Granted (in shares) | 200 |
Granted (in dollars per share) | $ / shares | $ 5.36 |
Outstanding non-vested at April 2, 2016 (in shares) | 200 |
Outstanding non-vested at April 2, 2016 (in dollars per share) | $ / shares | $ 5.36 |
Note 12 - Treasury Stock Tran47
Note 12 - Treasury Stock Transactions (Details Textual) - Stock Repurchase Program 2013 [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 02, 2016 | Oct. 28, 2013 | |
Stock Repurchase Program, Authorized Amount | $ 5 | |
Treasury Stock, Shares, Acquired | 115,318 | |
Treasury Stock Acquired, Average Cost Per Share | $ 5.19 |
Note 14 - Results of the Segmen
Note 14 - Results of the Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2016 | Apr. 04, 2015 | Jan. 02, 2016 | |
Engineering [Member] | |||
Revenues | $ 18,685 | $ 22,791 | |
Cost of services | 13,853 | 17,164 | |
Gross profit | 4,832 | 5,627 | |
Selling, general and administrative | 3,820 | 4,273 | |
Depreciation and amortization | 276 | 235 | |
Operating income | 736 | 1,119 | |
Total assets | 37,105 | 47,003 | |
Capital expenditures | 281 | 398 | |
Information Technology [Member] | |||
Revenues | 12,740 | 14,655 | |
Cost of services | 8,947 | 10,097 | |
Gross profit | 3,793 | 4,558 | |
Selling, general and administrative | 3,137 | 3,703 | |
Depreciation and amortization | 52 | 50 | |
Operating income | 604 | 805 | |
Total assets | 13,985 | $ 15,495 | |
Capital expenditures | 24 | ||
Specialty Health Care [Member] | |||
Revenues | 15,751 | $ 10,520 | |
Cost of services | 11,700 | 7,402 | |
Gross profit | 4,051 | 3,118 | |
Selling, general and administrative | 3,508 | 2,656 | |
Depreciation and amortization | 62 | 31 | |
Operating income | 481 | 431 | |
Total assets | 20,545 | $ 18,057 | |
Capital expenditures | $ 75 | ||
Corporate Segment [Member] | |||
Revenues | |||
Cost of services | |||
Gross profit | |||
Selling, general and administrative | |||
Depreciation and amortization | |||
Operating income | |||
Total assets | $ 4,607 | $ 4,912 | |
Capital expenditures | 14 | 217 | |
Revenues | 47,176 | 47,966 | |
Cost of services | 34,500 | 34,663 | |
Gross profit | 12,676 | 13,303 | |
Selling, general and administrative | 10,465 | 10,632 | |
Depreciation and amortization | 390 | 316 | |
Operating income | 1,821 | 2,355 | |
Total assets | 76,242 | 85,467 | $ 81,336 |
Capital expenditures | $ 394 | $ 615 |
Note 14 - Revenues by Geographi
Note 14 - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
UNITED STATES | ||
Revenue | $ 39,783 | $ 36,695 |
CANADA | ||
Revenue | 6,209 | 9,612 |
PUERTO RICO | ||
Revenue | 1,184 | 1,659 |
Revenue | $ 47,176 | $ 47,966 |
Note 14 - Total Assets by Geogr
Note 14 - Total Assets by Geographic Area (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 | Apr. 04, 2015 |
UNITED STATES | |||
Total assets | |||
Assets | $ 57,789 | $ 63,886 | |
CANADA | |||
Total assets | |||
Assets | 16,562 | 15,640 | |
PUERTO RICO | |||
Total assets | |||
Assets | 1,891 | 1,810 | |
Assets | $ 76,242 | $ 81,336 | $ 85,467 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | ||
Effective Income Tax Rate Reconciliation, Percent | 41.60% | 41.80% |
Canada [Member] | Foreign Tax Authority [Member] | ||
Effective Income Tax Rate Reconciliation, Percent | 26.50% | 31.00% |
Effective Income Tax Rate Reconciliation, Percent | 38.20% | 37.50% |
Note 16 - Contingencies (Detail
Note 16 - Contingencies (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 02, 2016 | Jan. 02, 2016 | |
Loss Contingency, Damages Sought, Value | $ 1.9 | $ 1.9 |