Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 13, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CRV | ||
Entity Registrant Name | COAST DISTRIBUTION SYSTEM INC | ||
Entity Central Index Key | 728303 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 5,207,180 | ||
Entity Public Float | $13,406,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $447 | $2,140 |
Accounts receivable (less allowance for doubtful accounts of $225 in 2014 and $278 in 2013) | 10,849 | 10,070 |
Inventories | 32,151 | 27,532 |
Deferred tax assets, net | 1,755 | 1,849 |
Prepaid expenses and other current assets | 393 | 458 |
Total current assets | 45,595 | 42,049 |
Property and equipment, net | 1,126 | 1,248 |
Other assets | 3,046 | 2,947 |
Assets | 49,767 | 46,244 |
Current liabilities: | ||
Accounts payable | 6,795 | 5,196 |
Accrued liabilities | 4,146 | 3,709 |
Total current liabilities | 10,941 | 8,905 |
Long-term obligations: | ||
Line of credit | 11,681 | 9,299 |
Total liabilities | 22,622 | 18,204 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; authorized: 2,000,000 shares; none issued or outstanding | ||
Common stock, $.001 par value; authorized: 10,000,000 shares; 5,207,180 and 5,045,897 issued as of December 31, 2014 and 2013, respectively | 18,444 | 18,047 |
Accumulated other comprehensive earnings | 458 | 1,227 |
Retained earnings | 8,243 | 8,766 |
Total stockholders' equity | 27,145 | 28,040 |
Liabilities and Equity, Total | $49,767 | $46,244 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $225 | $278 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,207,180 | 5,045,897 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $118,799 | $113,938 | $113,521 |
Cost of sales (including distribution costs) | 97,686 | 93,796 | 96,219 |
Gross profit | 21,113 | 20,142 | 17,302 |
Selling, general and administrative expenses | 21,034 | 20,080 | 19,435 |
Operating income (loss) | 79 | 62 | -2,133 |
Equity in net earnings of unconsolidated affiliates | 87 | 65 | 160 |
Other expense, net | |||
Interest expense, net | -578 | -567 | -552 |
Other, net | -63 | -54 | -70 |
Loss before income taxes | -475 | -494 | -2,595 |
Income tax provision (benefit) | 48 | 143 | -581 |
Net loss | ($523) | ($637) | ($2,014) |
Basic loss per share | ($0.11) | ($0.14) | ($0.44) |
Diluted loss per share | ($0.11) | ($0.14) | ($0.44) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net loss | ($523) | ($637) | ($2,014) |
Other comprehensive (loss) earnings: | |||
Foreign currency translation adjustment | -769 | -677 | 417 |
Comprehensive loss | ($1,292) | ($1,314) | ($1,597) |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock | Accumulated Other Comprehensive Earnings (Loss) | Retained Earnings |
In Thousands, except Share data | ||||
Beginning Balance at Dec. 31, 2011 | $30,224 | $17,320 | $1,487 | $11,417 |
Beginning Balance (in shares) at Dec. 31, 2011 | 4,781,597 | |||
Net loss for the year | -2,014 | -2,014 | ||
Foreign currency translation adjustments | 417 | 417 | ||
Issuance of common stock under employee option plans (in shares) | 3,334 | |||
Issuance of common stock under employee option plans | 3 | 3 | ||
Increase (Reduction) in pool of windfall tax benefits | -13 | -13 | ||
Issuance of restricted shares of common stock under equity incentive plan (in shares) | 147,500 | |||
Issuance of restricted shares of common stock under equity incentive plan | 0 | 0 | 0 | 0 |
Cancellation of restricted shares of common stock (in shares) | -9,000 | |||
Cancellation of restricted shares of common stock | 0 | 0 | 0 | 0 |
Stock-based compensation | 456 | 456 | ||
Ending Balance at Dec. 31, 2012 | 29,073 | 17,766 | 1,904 | 9,403 |
Ending Balance (in shares) at Dec. 31, 2012 | 4,923,431 | |||
Net loss for the year | -637 | -637 | ||
Foreign currency translation adjustments | -677 | -677 | ||
Issuance of common stock under employee option plans (in shares) | 30,500 | 30,500 | ||
Issuance of common stock under employee option plans | 28 | 28 | ||
Issuance of restricted shares of common stock under equity incentive plan (in shares) | 167,500 | |||
Issuance of restricted shares of common stock under equity incentive plan | 0 | 0 | 0 | 0 |
Cancellation of restricted shares of common stock (in shares) | -55,837 | |||
Cancellation of restricted shares of common stock | 0 | 0 | 0 | 0 |
Common stock cancelled in payment of payroll taxes due on vesting of restricted shares under employee stock incentive plans (in shares) | -19,697 | |||
Common stock cancelled in payment of payroll taxes due on vesting of restricted shares under employee stock incentive plans | -49 | -49 | ||
Stock-based compensation | 302 | 302 | ||
Ending Balance at Dec. 31, 2013 | 28,040 | 18,047 | 1,227 | 8,766 |
Ending Balance (in shares) at Dec. 31, 2013 | 5,045,897 | |||
Net loss for the year | -523 | -523 | ||
Foreign currency translation adjustments | -769 | -769 | ||
Issuance of common stock under employee option plans (in shares) | 142,000 | 142,248 | ||
Issuance of common stock under employee option plans | 162 | 162 | ||
Increase (Reduction) in pool of windfall tax benefits | 98 | 98 | ||
Issuance of restricted shares of common stock under equity incentive plan (in shares) | 164,500 | |||
Issuance of restricted shares of common stock under equity incentive plan | 0 | 0 | 0 | 0 |
Cancellation of restricted shares of common stock (in shares) | -110,672 | |||
Cancellation of restricted shares of common stock | 0 | 0 | 0 | 0 |
Common stock cancelled in payment of payroll taxes due on vesting of restricted shares under employee stock incentive plans (in shares) | -34,793 | |||
Common stock cancelled in payment of payroll taxes due on vesting of restricted shares under employee stock incentive plans | -129 | -129 | ||
Stock-based compensation | 266 | 266 | ||
Ending Balance at Dec. 31, 2014 | $27,145 | $18,444 | $458 | $8,243 |
Ending Balance (in shares) at Dec. 31, 2014 | 5,207,180 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($523) | ($637) | ($2,014) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 547 | 566 | 652 |
Amortization | 177 | 62 | 59 |
Loss from sale of property and equipment | 6 | 6 | 35 |
Equity in net earnings of unconsolidated affiliates, net of distributions | -87 | -65 | -160 |
Stock-based compensation expense | 266 | 302 | 456 |
Deferred income taxes | -109 | 59 | -220 |
Change in assets and liabilities: | |||
Accounts receivable | -779 | -137 | 967 |
Inventory | -4,619 | 2,757 | -4,437 |
Prepaid expenses and other current assets | -87 | 863 | -449 |
Accounts payable | 1,599 | -939 | 2,741 |
Accrued liabilities | 437 | 191 | 295 |
Net cash provided by (used in) operating activities | -3,172 | 3,028 | -2,075 |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment | 4 | 12 | 23 |
Increase in other assets | -52 | -107 | -160 |
Capital expenditures | -270 | -447 | -394 |
Net cash used in investing activities | -318 | -542 | -531 |
Cash flows from financing activities: | |||
Borrowings under line-of credit agreements | 143,915 | 120,909 | 124,949 |
Repayments under line-of credit agreements | -141,533 | -122,543 | -124,911 |
Issuance of common stock under employee equity incentive plans | 162 | 28 | 3 |
Common stock cancelled in payment of payroll taxes due on vesting of restricted shares under employee stock incentive plans | -129 | -49 | |
Increase (reduction) in pool of windfall tax benefits | 98 | -13 | |
Net cash (used in) provided by financing activities | 2,513 | -1,655 | 28 |
Effect of exchange rate changes on cash | -716 | -633 | 340 |
Net increase (decrease) in cash and cash equivalents | -1,693 | 198 | -2,238 |
Cash and cash equivalents beginning of year | 2,140 | 1,942 | 4,180 |
Cash and cash equivalents end of year | 447 | 2,140 | 1,942 |
Cash paid (refunded) during the year for: | |||
Interest | 581 | 578 | 552 |
Income taxes | $170 | ($337) | ($164) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Significant Accounting Policies | NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: | |||||||||||||
1. Principles of Consolidation. The Company consolidates the accounts of its wholly-owned subsidiaries, The Coast Distribution System (Canada) Inc. (“Coast Canada”) and Eur-Asia Recreational Vehicle Accessories Taiwan Company (“Coast Taiwan”). Investments in unconsolidated affiliates are accounted for by the equity method. All material intercompany transactions have been eliminated. | |||||||||||||
2. Inventories. All of our inventory consists of finished goods, which are comprised of replacement parts, supplies and accessories held for resale. Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or net realizable value. We regularly assess the appropriateness of the inventory valuations with particular attention to obsolete, slow-moving and non-saleable inventory. At December 31, 2014 and 2013, our reserves for excess and obsolete inventory were $1,395,000 and $1,454,000, respectively. | |||||||||||||
3. Property and Equipment. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on a straight-line basis. The estimated lives used in determining depreciation and amortization are: | |||||||||||||
Buildings and improvements | 12 - 40 years | ||||||||||||
Warehouse and office equipment | 5 - 7 years | ||||||||||||
Automobiles | 3 - 5 years | ||||||||||||
Leasehold improvements are amortized over the lives of the respective leases or the service lives of the improvements, whichever is shorter. Currently the amortization periods range from 5 to 15 years. | |||||||||||||
4. Revenue Recognition. Revenue from sales of products is recognized upon shipment. Shipping and handling costs that are billed to our customers are included in revenue. We provide our customers with a limited right of return. We establish an allowance for potential returns which reduces the amounts of our reported sales. We estimate the allowance based on historical experience with returns of like products and current economic data, which can affect the level at which customers submit product returns. | |||||||||||||
5. Segment Reporting. We have one operating segment, which is the distribution of replacement parts, supplies and accessories principally for recreational vehicles. We distribute those products from 17 distribution centers located throughout the United States and Canada. No single customer accounted for 10% or more of our net sales in 2014, 2013 or 2012. | |||||||||||||
6. Long-Lived Assets. Long-lived assets are reviewed for possible impairment at least annually or, more frequently, if and when events or changes in circumstances indicate the carrying amount of any of those assets may not be recoverable in full, by comparing the fair value of the long-lived asset to its carrying amount. | |||||||||||||
7. Foreign Currency Translation. Exchange adjustments resulting from foreign currency transactions are generally recognized in net earnings; whereas adjustments resulting from the translation of financial statements are reflected as a separate component of stockholders’ equity. The functional currency of our Canadian subsidiary is the Canadian dollar. | |||||||||||||
8. Derivative Financial Instruments. We sometimes use derivatives to partially offset our exposure to fluctuations in certain foreign currencies. We do not enter into derivatives for speculative or trading purposes. Derivatives are recorded at fair value on the balance sheet and gains or losses resulting from changes in fair value of a derivative are recorded based on the derivative’s hedge designation. | |||||||||||||
9. Cash and Cash Equivalents. Cash and cash equivalents include highly liquid instruments with maturities of three months or less and overnight investments funded with cash from sweep accounts maintained by the Company at one or more banks. | |||||||||||||
10. Income Taxes. We provide a deferred tax expense or benefit equal to the net change in the deferred tax liability or asset during the year. Deferred income taxes represent tax deductions and tax loss carryforwards and future net tax effects resulting from temporary differences between the book and tax bases of assets and liabilities, using enacted tax rates. A valuation allowance is established against deferred tax assets if and to the extent we determine that it is more likely, than not, that the deferred tax assets will not be realized in full. | |||||||||||||
11. Use of Estimates. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
12. Earnings (Loss) per Share. Basic earnings (loss) per share for any period are computed using the weighted average number of common shares outstanding during that period. Unvested restricted shares are excluded from outstanding shares for purposes of this calculation. Diluted loss per share are computed using the weighted average number of common and potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of the incremental common shares issuable upon exercise of stock options and vested restricted shares (using the treasury stock method). Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. | |||||||||||||
Options to purchase 101,000, 279,000 and 433,000 shares in 2014, 2013 and 2012, respectively, were excluded from the computation of diluted earnings (loss) per share because their inclusion in that computation would have been anti-dilutive. In addition, 268,985, 318,660 and 312,501 restricted shares were excluded from the computation of diluted loss per share in 2014, 2013 and 2012, respectively, because their inclusion in that computation would have been anti-dilutive. | |||||||||||||
13. Fair Value Measurement of Financial Assets and Liabilities. We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | |||||||||||||
GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values of financial and non-financial assets and liabilities. These tiers consist of: | |||||||||||||
Level 1: | Quoted market prices in active markets for identical assets or liabilities | ||||||||||||
Level 2: | Observable market based inputs or unobservable inputs that are corroborated by market data | ||||||||||||
Level 3: | Unobservable inputs that are not corroborated by market data | ||||||||||||
The following tables summarize the fair value measurements (in thousands of dollars) of our financial assets: | |||||||||||||
At December 31, 2014 | |||||||||||||
Total | Quoted Market prices in | Significant Other | |||||||||||
Active Markets | Observable Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash equivalents – Overnight Investments | $ | — | $ | — | $ | — | |||||||
At December 31, 2013 | |||||||||||||
Total | Quoted Market prices in | Significant Other | |||||||||||
Active Markets | Observable Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash equivalents – Overnight Investments | $ | 1,623 | $ | — | $ | 1,623 | |||||||
The Company had no level 3 assets or liabilities at December 31, 2014 and 2013. | |||||||||||||
We use the income approach to value derivatives, using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single discounted present amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the asset and liabilities, which include interest rate and credit risk. We have used mid-market pricing as a practical expedient for fair value measurements. | |||||||||||||
14. Accounts Receivable and the Allowance for Doubtful Accounts. The majority of our accounts receivable are due from RV dealers, supply stores and service centers. Credit is extended to a customer based on evaluation of its financial condition and, generally, collateral is not required. We maintain allowances for doubtful accounts for estimated losses that would result from the inability of customers to make required payments on their accounts. We regularly evaluate the adequacy of the allowance for doubtful accounts. We estimate potential losses on our accounts receivable on the basis of the aging of accounts receivable balances, a review of significant past due accounts, and our historical write-off experience, net of recoveries. If the financial condition of our customers were to deteriorate, whether due to deteriorating economic conditions generally or otherwise, adversely affecting their ability to make payments, it could become necessary for us to make additional provisions to increase the allowance for doubtful accounts. | |||||||||||||
15. Stock-Based Compensation. We account for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Stock Compensation, which requires the recognition of the fair value of compensation paid in stock or other equity instruments to employees or directors as an expense in the calculation of net earnings (loss). We generally recognize stock-based compensation expense over the period in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. However, if the vesting of an equity award is conditioned on the achievement of a financial or other performance goal, we do not recognize stock-based compensation expense unless and until we have concluded that achievement of the performance goal has become probable. If we have made such a determination, but the performance goal is not ultimately achieved, due to subsequent events or circumstances, then the previously recognized stock-based compensation expense would be reversed. | |||||||||||||
16. Warranty Costs. We generally do not independently warrant the products that we distribute. Instead, in most instances, the manufacturers warrant their products and allow us to return defective products, including those that have been returned to us by our customers. However, we sell a line of portable generators under a product supply arrangement which obligates us to provide warranty services for these products and provides for us to share the costs of providing those services with the manufacturer. The warranty period is 24 months following the sale of the product to a retail customer. Accordingly, we maintain a reserve for warranty claims we may receive with respect to generators that have been sold to consumers. At December 31, 2014 and 2013, those warranty reserves totaled $762,000 and $737,000, respectively. We periodically increase the warranty reserve to replenish it after it has been reduced by warranty claims charged against it or to increase the reserve as a result of unanticipated increases in claims or material increases in the number of generators that we have sold. Those increases are effectuated by means of a provision for warranty claims which is recorded as a component of our costs of sales in our consolidated statements of operations and, as a result, increases in the warranty reserve can result in a reduction in our income for the period during which such provisions are made. | |||||||||||||
Although we do not maintain insurance for product warranty claims, we do maintain insurance to protect us against product liability claims relating to all of the products we distribute and sell, including the generator products. | |||||||||||||
17. Recent Accounting Pronouncements. With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2014 that we believe are of significance, or potential significance, to the Company based on our current operations. | |||||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, which clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts With Customers, a new standard on revenue recognition. The new standard will supersede existing revenue recognition guidance and apply to all entities that enter into contracts to provide goods or services to customers. The guidance also addresses the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as real estate, and property and equipment. The new standard will become effective for us beginning in the first quarter of 2017 and can be adopted either retrospectively to each reporting period presented or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact of adopting this new guidance on our consolidated financial statements. | |||||||||||||
In April 2014, the FASB issued a new standard relating to the reporting and disclosure of discontinued operations, which changes the criteria and requires additional disclosures for reporting discontinued operations. This new standard will be effective for all disposals of components of an entity that occur within annual periods beginning on or after December 15, 2015. We do not expect this new standard to have a material impact on our consolidated financial statements or disclosures in our financial statements. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment, Net | NOTE B: PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment, net consist of the following at December 31: | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Warehouse equipment | $ | 4,941 | $ | 5,197 | |||||
Office equipment | 5,190 | 5,246 | |||||||
Leasehold improvements | 1,525 | 1,554 | |||||||
Automobiles | 115 | 114 | |||||||
11,771 | 12,111 | ||||||||
Less accumulated depreciation and amortization | (10,645 | ) | (10,863 | ) | |||||
$ | 1,126 | $ | 1,248 | ||||||
Depreciation and amortization expense totaled $724,000, $628,000 and $711,000 in 2014, 2013 and 2012, respectively. |
LongTerm_Obligations
Long-Term Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-Term Obligations | NOTE C: LONG-TERM OBLIGATIONS | ||||||||
Long-term obligations consist of the following at December 31: | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Secured notes payable to bank under line of credit due July 10, 2017 | $ | 11,681 | $ | 9,299 | |||||
The secured notes payable to bank evidence borrowings under a revolving credit facility which permits us to borrow up to the lesser of (i) $25,000,000, or (ii) an amount equal to 85% of the value of our eligible accounts receivable and up to 55% of the value of our eligible inventory. The Company’s borrowing base at December 31, 2014 was $17,000,000 as compared to $13,800,000, at December 31, 2013. Interest is payable at the bank’s prime rate (3.25% at December 31, 2014) plus 1.75% or, at the Company’s option but subject to certain limitations, at the bank’s LIBOR rate (0.25% at December 31, 2014) plus 3.25%. As of December 31, 2014, we were in compliance with all of our financial and other covenants under our line of credit agreement. The credit facility is scheduled to mature at July 10, 2017. | |||||||||
Effective November 13, 2014, the Company and the bank entered into the 19th Amendment to the credit line agreement (the “19th Amendment”), primarily to enable the Company to finance increases in inventories in fiscal 2015. To accomplish that purpose, that Amendment increases the maximum borrowings that will be available to us under the credit line in calendar 2015 to amounts up to (i) $27 million during the months of February and July 2015, (ii) $30 million during the months of March, April and May 2015: and (iii) $29 million during the month of June 2015, but in no event more than the sum of 50% to 55% of the value of the Company’s eligible inventories plus 85% of the value of its eligible accounts receivable. On the other hand, the maximum amount of borrowings that will be available to us under the credit line for the months of January, August, September, October, November and December 2015 will remain unchanged at $25 million, when, due to the seasonality of our business, customer orders usually decline. The bank has the right to increase or decrease these amounts, but only in the exercise of its good faith and reasonable business judgment. | |||||||||
At March 13, 2015, outstanding borrowings under the revolving credit facility totaled $18,390,000. Our credit facility borrowings are secured by substantially all of our consolidated assets and rank senior in priority to any other indebtedness that the Company may incur. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | NOTE D: COMMITMENTS AND CONTINGENCIES | ||||
Operating Leases. We lease our corporate offices, warehouse facilities, and some of our office equipment. These leases are classified as operating leases as they do not meet the required capitalization criteria. The office and warehouse leases expire at various dates over the next twelve years. | |||||
Minimum future rental commitments under non-cancelable operating leases as of December 31, 2014, in thousands of dollars, are as follows: | |||||
Year Ending December 31, | |||||
2015 | $ | 3,682 | |||
2016 | 3,125 | ||||
2017 | 747 | ||||
2018 | 500 | ||||
2019 | 451 | ||||
Thereafter | 613 | ||||
$ | 9,118 | ||||
Rent expense charged to operations amounted to $3,670,000 in 2014, $3,759,000 in 2013, and $3,938,000 in 2012. | |||||
Legal Proceedings. We are subject to legal proceedings, claims and litigation arising in the ordinary course of business, including product liability, personal injury and intellectual property litigation. While the outcome of currently pending litigation is not determinable due to the uncertainties inherent in litigation, based on the information currently available to us, we do not expect that any liabilities or costs that might be incurred to resolve these matters will have a material adverse effect on our financial condition, results of operations or cash flows. |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stock Incentive Plans | NOTE E: STOCK INCENTIVE PLANS | ||||||||||||||||||||
In August 2012, our shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”), which provides for the grant of equity incentives, consisting of options, stock appreciation rights, restricted stock and restricted stock units to officers, other key employees, directors and consultants. The 2012 Plan initially set aside, for the grant of such equity incentives, 300,000 shares of our common stock, plus an additional 17,666 shares which was equal to the total of the number of shares that were then available for the grant of new options or other equity incentives under our then existing stockholder-approved stock incentive plans (the “Previous Plans”). At the same time, those 17,666 shares ceased to be available for the grant of equity incentive under those Previous Plans. | |||||||||||||||||||||
The Previous Plans had provided that, if any options outstanding under any of those plans were to expire or otherwise terminate, rather than being exercised, or any unvested restricted shares were to be cancelled, the shares that had been subject to those options and such cancelled restricted shares would become available for the grant of new options or other equity incentives under those plans. However, the 2012 Plan provides, instead, that if any of those options expire or terminate for any reason or any of those unvested restricted shares are cancelled, then, the number of shares that will become available for grants or awards of equity incentives under the 2012 Plan will be increased by an equivalent number of shares, instead of becoming available for new equity incentive grants under the Previous Plans. Therefore, if any equity incentives that are outstanding under the Previous Plans expire, terminate or, subject to certain limitations, are reacquired by the Company, then a number of shares equal to the number of shares that had been subject to those equity incentives would become available for future grants under the 2012 Plan and those shares would cease to be available for future grants under the Previous Plans. As of December 31, 2014, 207,333 shares from the Previous Plans have been redistributed and made available for grant under the 2012 Plan. | |||||||||||||||||||||
As of December 31, 2014, 372,332 shares remained available for grant under the 2012 Plan. | |||||||||||||||||||||
Information Regarding Stock Options. The fair value of outstanding options was estimated as of the date of grant using a binomial model. This model incorporates certain assumptions including a risk-free market interest rate, the expected dividend yield of the underlying common stock, the expected life of the option and expected volatility in the market value of the underlying common stock. | |||||||||||||||||||||
We used the following assumptions in estimating the fair value of the options issued in the periods indicated below: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected volatility | 56.7 | % | 57 | % | 59 | % | |||||||||||||||
Risk free interest rate | 2.39 | % | 2.73 | % | 1.64 | % | |||||||||||||||
Expected dividend yields | N/A | N/A | N/A | ||||||||||||||||||
Expected lives | 10 yrs. | 10 yrs. | 10 yrs. | ||||||||||||||||||
Expected volatilities are based on the historical volatility of the Company’s common stock. The risk free interest rate is based upon market yields for United States Treasury debt securities. The expected dividend yields are based upon the Company’s dividend policy in effect in each of the years presented and the fair market value of the Company’s shares at the time of grant. Expected lives are based on several factors, including the average holding period of the outstanding options, their remaining terms and the cycle of our long range business plan. | |||||||||||||||||||||
The following tables summarize stock option activity during the years ended December 31, 2014 and 2013: | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Values | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding at January 1, 2014 | 279,000 | $ | 3.31 | ||||||||||||||||||
Granted | 8,000 | 3.3 | |||||||||||||||||||
Exercised | (142,000 | ) | 1.14 | ||||||||||||||||||
Forfeited | (44,000 | ) | 5.72 | ||||||||||||||||||
Outstanding at December 31, 2014 | 101,000 | 5.31 | 4.0 years | $ | 15,300 | ||||||||||||||||
Exercisable at December 31, 2014 | 93,000 | 5.48 | 3.5 years | $ | 15,300 | ||||||||||||||||
Options vested and expected (as of December 31, 2014) to vest in the future | 101,000 | 5.31 | 4.0 years | $ | 15,300 | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Values | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding at January 1, 2013 | 433,000 | $ | 3.6 | ||||||||||||||||||
Granted | 10,000 | 3.8 | |||||||||||||||||||
Exercised | (30,500 | ) | 0.94 | ||||||||||||||||||
Forfeited | (133,500 | ) | 4.84 | ||||||||||||||||||
Outstanding at December 31, 2013 | 279,000 | 3.31 | 2.5 years | $ | 321,200 | ||||||||||||||||
The aggregate intrinsic value in each of the tables above represents the total pre-tax intrinsic value (the aggregate difference between the closing price of the Company’s common stock on the American Stock Exchange on December 31, 2014 and 2013, respectively, and the exercise price for in-the-money options that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2014 and 2013, respectively). The total pre-tax intrinsic values of the options exercised during 2014 and 2013 were $350,000 and $75,000, respectively. | |||||||||||||||||||||
The weighted-average grant-date fair values of options granted during the years ended December 31, 2014 and 2013 were $3.23 and $2.77, respectively. The Company recognized stock-based compensation expense in the amount of $33,000, $24,000 and $16,000 for stock options in the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
At December 31, 2014, the Company had no unrecognized compensation cost related to unvested options. | |||||||||||||||||||||
Set forth below is additional information with respect to the stock options that were outstanding under our equity incentive plans at December 31, 2014: | |||||||||||||||||||||
Range | Outstanding | Weighted | Weighted | Options | Weighted | ||||||||||||||||
Options | Average | Average | Exercisable | Average | |||||||||||||||||
Exercise | Remaining | Exercise | |||||||||||||||||||
Price | Contractual | Price | |||||||||||||||||||
Life (Years) | |||||||||||||||||||||
$1.80 – $4.25 | 46,000 | $ | 3.14 | 7.2 | 38,000 | $ | 3.11 | ||||||||||||||
$4.90 – $9.80 | 55,000 | 7.12 | 1.3 | 55,000 | 7.12 | ||||||||||||||||
$1.80 – $9.80 | 101,000 | $ | 5.31 | 4 | 93,000 | $ | 5.48 | ||||||||||||||
Restricted Shares. We began granting “service-contingent” restricted shares of common stock to some of our officers and other key management employees in 2010. The terms of those grants provided for those restricted shares to vest in equal annual installments over a three or four year service period following the respective dates of those awards, subject to the continued service with the Company of the recipients of such shares. In accordance with ASC 718 - compensation expense for such awards is based on the fair market value of those awards on their respective dates of grant and is recognized over those service periods. A total of 103,494 of those service-contingent restricted shares remained unvested at December 31, 2014. Since all of the holders of those remaining unvested restricted shares were still in the Company’s employ at December 30, 2014, we expect that all of those unvested restricted shares will vest over the remainder of their respective vesting periods. The Company recognized stock-based compensation expense in the amount of $233,000, $278,000 and $440,000 for “service-contingent” restricted shares in the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014, unrecognized stock-based compensation cost attributable to service-contingent restricted shares totaled approximately $52,439 which, as of that date, was expected to be recognized over a weighted average period of approximately one year. The aggregate intrinsic value of these restricted shares, at December 31 2014, was $335,321. | |||||||||||||||||||||
In 2013 and 2014, our officers and other key management employees were granted performance-contingent restricted shares. These performance-contingent shares vest in three annual installments and are subject to the achievement by the Company of different financial performance goals applicable to those years. Stock-based compensation expense with respect to each one-third of those performance-contingent shares is recognized only if, and when we are able to determine that the Company’s achievement of the performance goal for the particular year has become probable. However, if any stock-based compensation expense were to be recognized based on such a determination, but the performance goal was not ultimately achieved, then that previously recognized stock-based compensation expense would be reversed. The Company has not recognized any stock-based compensation expense for performance-contingent restricted shares in the years ended December 31, 2014, 2013 and 2012. The Company did not achieve the financial performance goal for 2014. As a result, no stock-based compensation expense was recognized in respect of any of the performance-contingent shares in 2014, one-third of the performance-contingent restricted shares were cancelled, and the remaining 165,491 of these performance-contingent shares continued to be unvested as of December 31, 2014. We cannot predict, as of yet, whether any of those remaining performance contingent shares will become vested as that will depend on the Company’s results of operations in 2015 and 2016. At December 31, 2014, a total of 165,491 performance-contingent restricted shares were outstanding. | |||||||||||||||||||||
A summary of restricted stock activity during the years ended December 31, 2014 and 2013 is presented below: | |||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Values | |||||||||||||||||||||
Outstanding at January 1, 2014 | 318,660 | $3.27 | |||||||||||||||||||
Granted | 164,500 | 3.66 | |||||||||||||||||||
Vested | (103,503 | ) | 3.44 | ||||||||||||||||||
Forfeited | (110,672 | ) | 3.31 | ||||||||||||||||||
Outstanding and unvested at end of year | 268,985 | $3.43 | |||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Values | |||||||||||||||||||||
Outstanding at January 1, 2013 | 312,501 | $3.39 | |||||||||||||||||||
Granted | 167,500 | 2.96 | |||||||||||||||||||
Vested | (105,504 | ) | 3.29 | ||||||||||||||||||
Forfeited | (55,837 | ) | 2.96 | ||||||||||||||||||
Outstanding and unvested at end of year | 318,660 | $3.27 | |||||||||||||||||||
The intrinsic value of the 103,503 restricted shares that vested during the year ended December 31, 2014 was approximately $384,500. A total of 34,793 of those restricted shares were cancelled in satisfaction of a total of $129,000 of tax withholding obligations of holders of those restricted shares that arose as a result of the vesting of those shares. | |||||||||||||||||||||
At December 31, 2014, unrecognized stock-based compensation cost attributable to performance-contingent restricted shares totaled approximately $567,000 which, as of that date, was expected to be recognized over a weighted average period of approximately 0.8 years. All of the restricted shares outstanding at December 31, 2014 are expected to vest. The aggregate intrinsic value of the performance-contingent restricted shares, at December 31, 2014, was $536,200. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plan | NOTE F: EMPLOYEE BENEFIT PLAN |
We have established a profit sharing plan in which all full-time employees are eligible to participate beginning the first quarter following the completion of three months of employment with the Company or any of its subsidiaries. This plan allows participants to make pretax contributions and apply for and secure loans from their respective accounts. The plan permits the Company to make discretionary contributions to be determined annually by the Company’s Board of Directors or Compensation Committee. The Company did not make any contributions to the plan in 2014, 2013 or 2012. |
Foreign_Operations
Foreign Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Foreign Operations | NOTE G: FOREIGN OPERATIONS | ||||||||||||
A summary of the Company’s operations by geographic area is presented below for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net sales to external customers | |||||||||||||
United States | $ | 92,686 | $ | 87,504 | $ | 85,374 | |||||||
Canada | 26,113 | 26,434 | 28,147 | ||||||||||
Operating income (loss) | |||||||||||||
United States | $ | 1,289 | $ | 1,085 | $ | (459 | ) | ||||||
Canada | (1,195 | ) | (1,122 | ) | (1,607 | ) | |||||||
Other | (15 | ) | 99 | (67 | ) | ||||||||
Identifiable assets | |||||||||||||
United States | $ | 40,819 | $ | 36,339 | $ | 38,341 | |||||||
Canada | 8,703 | 9,554 | 11,009 | ||||||||||
Other | 245 | 351 | 309 | ||||||||||
The Company has an equity investment in a corporation which conducts a business that is similar to the Company’s business, but in a much smaller scale, in Mexico. That investment, which is included in long-term assets on the Company’s consolidated balance sheet, totaled approximately $1,043,000 and $982,000 at December 31, 2014 and 2013, respectively. The results of operation of this corporation are included in equity in the net earnings of unconsolidated affiliates in the Company’s consolidated statements of operations. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | NOTE H: INCOME TAXES | ||||||||||||
Pretax earnings (loss) for the years ended December 31, 2014, 2013 and 2012 were taxed in the following jurisdictions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 869 | $ | 648 | $ | (807 | ) | ||||||
Foreign | (1,344 | ) | (1,142 | ) | (1,788 | ) | |||||||
$ | (475 | ) | $ | (494 | ) | $ | (2,595 | ) | |||||
The provision (benefit) for income taxes in each of 2014, 2013 and 2012 is summarized below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current | |||||||||||||
Federal | $ | 74 | $ | — | $ | — | |||||||
State | 79 | 90 | 61 | ||||||||||
Foreign | (14 | ) | 1 | (409 | ) | ||||||||
139 | 91 | (348 | ) | ||||||||||
Deferred | |||||||||||||
Federal | 168 | 216 | (171 | ) | |||||||||
State | 34 | 87 | — | ||||||||||
Foreign | (293 | ) | (251 | ) | (62 | ) | |||||||
(91 | ) | 52 | (233 | ) | |||||||||
$ | 48 | $ | 143 | $ | (581 | ) | |||||||
Deferred tax assets (liabilities) were comprised of the following at December 31: | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Inventory | $ | 1,112 | $ | 1,155 | |||||||||
Bad debt provision | 47 | 60 | |||||||||||
Property and equipment | 81 | 95 | |||||||||||
Deferred credits | 1,280 | 1,280 | |||||||||||
Loss carryforwards | 1,203 | 1,031 | |||||||||||
Rent | 121 | 148 | |||||||||||
Other | 802 | 812 | |||||||||||
Gross deferred tax assets | 4,646 | 4,581 | |||||||||||
Less valuation allowance(2) | (1,354 | ) | (1,369 | ) | |||||||||
3,292 | 3,212 | ||||||||||||
Deferred tax liabilities | |||||||||||||
Property and equipment | (79 | ) | (84 | ) | |||||||||
Unremitted earnings of foreign affiliates | (29 | ) | (53 | ) | |||||||||
Gross deferred tax liabilities | (108 | ) | (137 | ) | |||||||||
Net deferred tax assets(1) | $ | 3,184 | $ | 3,075 | |||||||||
-1 | $1,755,000 and $1,849,000 of the total deferred tax assets at December 31, 2014 and 2013 were included in current assets and $1,429,000 and $1,226,000 were included in other long-term assets at December 31, 2014 and 2013, respectively. | ||||||||||||
-2 | The deferred tax valuation allowance decreased by $15,000 during 2014 and $7,000 during 2013. | ||||||||||||
Set forth below is a reconciliation between actual tax expense (benefit) and expected tax expense (benefit) for the respective periods presented below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Loss before income taxes | $ | (475 | ) | $ | (494 | ) | $ | (2,595 | ) | ||||
Expected income tax expense at 34% | $ | (162 | ) | $ | (168 | ) | $ | (882 | ) | ||||
Difference in rates on earnings of foreign operations | 185 | 148 | 83 | ||||||||||
Stock-based compensation and other nondeductible expenses | 43 | 33 | 27 | ||||||||||
State taxes and credits (net of federal benefit) | 63 | 134 | 50 | ||||||||||
Change in valuation allowance | (15 | ) | (7 | ) | — | ||||||||
Unremitted earnings of foreign subsidiaries | (24 | ) | (5 | ) | (19 | ) | |||||||
Exclusion of earnings of foreign affiliates | (30 | ) | (22 | ) | (54 | ) | |||||||
Foreign dividend | — | — | 192 | ||||||||||
Shortfall on vested restricted shares that exceed pool of windfall tax benefits | — | 32 | |||||||||||
Intercompany profit elimination | (14 | ) | — | — | |||||||||
Other | 2 | (2 | ) | 22 | |||||||||
Income tax provision (benefit) | $ | 48 | $ | 143 | $ | (581 | ) | ||||||
Deferred income taxes have been provided on the undistributed earnings of certain foreign subsidiaries where it is contemplated that earnings will not be reinvested. | |||||||||||||
At December 31, 2014, the operating loss carryforwards available for federal, state and foreign income tax purposes were $963,000, $3,787,000 and $4,281,000, respectively. The earliest year during which any of the carryforwards begin to expire is 2016. At December 31, 2014, foreign tax credit carryforwards available for federal income tax purposes totaled $328,000, which expire in 2015. State targeted tax area credit carryforwards of $1,245,000 are available with no expiration dates. | |||||||||||||
It is our policy to classify interest and penalties as a component of tax expense. At December 31, 2014 we had $254,000 of unrecognized tax benefits, of which $19,000 impacted our effective tax rate. Interest and penalties totaled $133,000, which was accrued on the balance sheet at December 31, 2014. | |||||||||||||
The Company and its domestic subsidiaries file income tax returns in the US federal jurisdiction and in various state jurisdictions. The Company’s foreign subsidiaries file income tax returns in the respective jurisdictions in which they are based. With few exceptions, we are no longer subject to tax examinations by taxing authorities for years before 2008. We do not expect total unrecognized tax benefits to change significantly during the year ended December 31, 2014 due to the expiration of any statutes of limitations. | |||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | |||||||||||||
Unrecognized Tax Benefits (in thousands): | 2014 | 2013 | |||||||||||
Balance as of January 1, | $ | 273 | $ | 263 | |||||||||
Additions for tax positions related to the current year | 3 | 10 | |||||||||||
Additions for tax positions related to prior years | 15 | — | |||||||||||
Reductions for tax positions of prior years | (37 | ) | — | ||||||||||
Balance as of December 31, | $ | 254 | $ | 273 | |||||||||
Loss_Per_Share
Loss Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loss Per Share | NOTE I: LOSS PER SHARE | ||||||||||||
We calculate basic earnings (loss) per share (EPS) of our common stock for any period by dividing the Company’s net earnings (loss) by the weighted-average number of common shares outstanding for that period. The calculation of diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. Outstanding stock options and restricted shares were not considered to be dilutive securities for the years ended December 31, 2014, 2013 and 2012. due to the net loss incurred by the Company in 2014, 2013 and 2012. Set forth below are the computations of basic and diluted loss per share for each of the following periods: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Numerator: | |||||||||||||
Net loss | $ | (523 | ) | $ | (637 | ) | $ | (2,014 | ) | ||||
Denominator: | |||||||||||||
Weighted average shares outstanding | 4,906 | 4,691 | 4,597 | ||||||||||
Dilutive effect of stock options and restricted shares | — | — | — | ||||||||||
Denominator for diluted loss per share | 4,906 | 4,691 | 4,597 | ||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Liabilities | NOTE J: ACCRUED LIABILITIES | ||||||||
Accrued liabilities consisted of the following (in thousands) at December 31: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll and related benefits | $ | 937 | $ | 798 | |||||
Rent | 362 | 436 | |||||||
Income and other taxes | 400 | 393 | |||||||
Warranty reserve | 762 | 737 | |||||||
Customer rebates | 1,041 | 794 | |||||||
Other | 644 | 551 | |||||||
$ | 4,146 | $ | 3,709 | ||||||
Warranty_Reserve
Warranty Reserve | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Warranty Reserve | NOTE K: WARRANTY RESERVE | ||||||||
We generally do not independently provide warranties on the products that we distribute. Instead, in almost all cases, the manufacturers of the products that we distribute warrant the products and allow us to return defective products, including those that have been returned to us by our customers. However, we sell a line of portable generators under a product supply arrangement which obligates us to provide warranty services for these products and to share the costs of providing those services with the manufacturer. Accordingly, we maintain a reserve against which we charge warranty claims we receive with respect to those generators. The amount of the reserve is determined based primarily on our historical warranty claims experience and the number of portable generators that we sell each year. We periodically increase the warranty reserve to replenish it after it has been reduced by warranty claims charged against it or to increase the reserve in response to increases in the number or the amounts of the warranty claims or increases in the number of generators that we have sold. Since the warranty reserve is replenished or increased by recording a charge which is included in, and has the effect of increasing, our costs of sales in our consolidated statements of operations, an increase in the reserve will reduce income in the period when the increase is recognized. | |||||||||
Set forth in the table below is our accrued warranty expense (in thousands), which is included in accrued liabilities on the consolidated balance sheets: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued warranty balance as of January 1, | $ | 737 | $ | 690 | |||||
Warranty costs incurred | (965 | ) | (1,193 | ) | |||||
Provision for warranty claims | 990 | 1,240 | |||||||
Accrued warranty balance as of December 31, | $ | 762 | $ | 737 | |||||
Significant_Concentrations
Significant Concentrations | 12 Months Ended |
Dec. 31, 2014 | |
Significant Concentrations | NOTE L: SIGNIFICANT CONCENTRATIONS |
Our ability to satisfy demand for our products may be limited by the availability of those products from our suppliers. We purchase air conditioners from Airxcel, Inc. (“Airxcel”) and generators from Zhejiang Xingyu Industry and Trade Co., Ltd, (“Zhejiang”). Our purchases from Airxcel accounted for approximately 23%, 25%, and 22% of our total product purchases in 2014, 2013, and 2012, respectively. Our purchases from Zhejiang accounted for 6% of our total product purchases in 2012 ; however, those purchases accounted for less than 5% of our total product purchases in 2014 and 2013. | |
Concentration of Credit Risk. We maintain bank accounts with high quality financial institutions to minimize credit risk. However, our deposit balances may periodically exceed federal deposit insurance limits. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data | NOTE M: QUARTERLY FINANCIAL DATA | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Net sales | $ | 24,855 | $ | 36,797 | $ | 34,821 | $ | 22,326 | |||||||||
Gross profit | 4,215 | 6,970 | 6,610 | 3,318 | |||||||||||||
Net earnings (loss) | (738 | ) | 787 | 582 | (1,154 | ) | |||||||||||
Net earnings (loss) per share — diluted | (0.15 | ) | 0.16 | 0.12 | (0.23 | ) | |||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Net sales | $ | 25,397 | $ | 35,565 | $ | 33,101 | $ | 19,875 | |||||||||
Gross profit | 4,202 | 7,138 | 6,099 | 2,703 | |||||||||||||
Net earnings (loss) | (939 | ) | 1,097 | 487 | (1,282 | ) | |||||||||||
Net earnings (loss) per share — diluted | (0.20 | ) | 0.23 | 0.1 | (0.27 | ) |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule II Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||||||||
THE COAST DISTRIBUTION SYSTEM, INC. AND SUBSIDIARIES | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
December 31, 2012, 2013 and 2014 | |||||||||||||||||
Description | Balance at | Adjustments | Write Off | Balance at | |||||||||||||
Beginning of | of Bad Debts | End of Period | |||||||||||||||
Period | |||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||
Year Ended December 31, 2012 | $ | 387,000 | $ | 23,000 | $ | (99,000 | ) | $ | 311,000 | ||||||||
Year Ended December 31, 2013 | $ | 311,000 | $ | 115,000 | $ | (148,000 | ) | $ | 278,000 | ||||||||
Year Ended December 31, 2014 | $ | 278,000 | $ | 88,000 | $ | (141,000 | ) | $ | 225,000 | ||||||||
Description | Balance at | Adjustments | Write Off | Balance at | |||||||||||||
Beginning of | of Scrapped | End of Period | |||||||||||||||
Period | Inventory | ||||||||||||||||
Allowance for obsolete or slow-moving inventory: | |||||||||||||||||
Year Ended December 31, 2012 | $ | 1,401,000 | $ | 224,000 | $ | (186,000 | ) | $ | 1,439,000 | ||||||||
Year Ended December 31, 2013 | $ | 1,439,000 | $ | 251,000 | $ | (236,000 | ) | $ | 1,454,000 | ||||||||
Year Ended December 31, 2014 | $ | 1,454,000 | $ | 176,000 | $ | (235,000 | ) | $ | 1,395,000 | ||||||||
Description | Balance at | Additions | Deductions(1) | Balance at | |||||||||||||
Beginning of | End of Period | ||||||||||||||||
Period | |||||||||||||||||
Valuation allowance for deferred tax assets: | |||||||||||||||||
Year Ended December 31, 2012 | $ | 1,213,000 | $ | 163,000 | $ | — | $ | 1,376,000 | |||||||||
Year Ended December 31, 2013 | $ | 1,376,000 | $ | — | $ | (7,000 | ) | $ | 1,369,000 | ||||||||
Year Ended December 31, 2014 | $ | 1,369,000 | $ | — | $ | (15,000 | ) | $ | 1,354,000 | ||||||||
-1 | Net operating loss carryforwards used or expired. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Principles of Consolidation | Principles of Consolidation. The Company consolidates the accounts of its wholly-owned subsidiaries, The Coast Distribution System (Canada) Inc. (“Coast Canada”) and Eur-Asia Recreational Vehicle Accessories Taiwan Company (“Coast Taiwan”). Investments in unconsolidated affiliates are accounted for by the equity method. All material intercompany transactions have been eliminated. | ||||||||||||
Inventories | Inventories. All of our inventory consists of finished goods, which are comprised of replacement parts, supplies and accessories held for resale. Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or net realizable value. We regularly assess the appropriateness of the inventory valuations with particular attention to obsolete, slow-moving and non-saleable inventory. At December 31, 2014 and 2013, our reserves for excess and obsolete inventory were $1,395,000 and $1,454,000, respectively. | ||||||||||||
Property and Equipment | Property and Equipment. Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on a straight-line basis. The estimated lives used in determining depreciation and amortization are: | ||||||||||||
Buildings and improvements | 12 - 40 years | ||||||||||||
Warehouse and office equipment | 5 - 7 years | ||||||||||||
Automobiles | 3 - 5 years | ||||||||||||
Leasehold improvements are amortized over the lives of the respective leases or the service lives of the improvements, whichever is shorter. Currently the amortization periods range from 5 to 15 years. | |||||||||||||
Revenue Recognition | Revenue Recognition. Revenue from sales of products is recognized upon shipment. Shipping and handling costs that are billed to our customers are included in revenue. We provide our customers with a limited right of return. We establish an allowance for potential returns which reduces the amounts of our reported sales. We estimate the allowance based on historical experience with returns of like products and current economic data, which can affect the level at which customers submit product returns. | ||||||||||||
Segment Reporting | Segment Reporting. We have one operating segment, which is the distribution of replacement parts, supplies and accessories principally for recreational vehicles. We distribute those products from 17 distribution centers located throughout the United States and Canada. No single customer accounted for 10% or more of our net sales in 2014, 2013 or 2012. | ||||||||||||
Long-Lived Assets | Long-Lived Assets. Long-lived assets are reviewed for possible impairment at least annually or, more frequently, if and when events or changes in circumstances indicate the carrying amount of any of those assets may not be recoverable in full, by comparing the fair value of the long-lived asset to its carrying amount. | ||||||||||||
Foreign Currency Translation | Foreign Currency Translation. Exchange adjustments resulting from foreign currency transactions are generally recognized in net earnings; whereas adjustments resulting from the translation of financial statements are reflected as a separate component of stockholders’ equity. The functional currency of our Canadian subsidiary is the Canadian dollar. | ||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments. We sometimes use derivatives to partially offset our exposure to fluctuations in certain foreign currencies. We do not enter into derivatives for speculative or trading purposes. Derivatives are recorded at fair value on the balance sheet and gains or losses resulting from changes in fair value of a derivative are recorded based on the derivative’s hedge designation. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents include highly liquid instruments with maturities of three months or less and overnight investments funded with cash from sweep accounts maintained by the Company at one or more banks. | ||||||||||||
Income Taxes | Income Taxes. We provide a deferred tax expense or benefit equal to the net change in the deferred tax liability or asset during the year. Deferred income taxes represent tax deductions and tax loss carryforwards and future net tax effects resulting from temporary differences between the book and tax bases of assets and liabilities, using enacted tax rates. A valuation allowance is established against deferred tax assets if and to the extent we determine that it is more likely, than not, that the deferred tax assets will not be realized in full. | ||||||||||||
Use of Estimates | Use of Estimates. In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Earnings (Loss) per Share | Earnings (Loss) per Share. Basic earnings (loss) per share for any period are computed using the weighted average number of common shares outstanding during that period. Unvested restricted shares are excluded from outstanding shares for purposes of this calculation. Diluted loss per share are computed using the weighted average number of common and potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of the incremental common shares issuable upon exercise of stock options and vested restricted shares (using the treasury stock method). Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. | ||||||||||||
Options to purchase 101,000, 279,000 and 433,000 shares in 2014, 2013 and 2012, respectively, were excluded from the computation of diluted earnings (loss) per share because their inclusion in that computation would have been anti-dilutive. In addition, 268,985, 318,660 and 312,501 restricted shares were excluded from the computation of diluted loss per share in 2014, 2013 and 2012, respectively, because their inclusion in that computation would have been anti-dilutive. | |||||||||||||
Fair Value Measurement of Financial Assets and Liabilities | Fair Value Measurement of Financial Assets and Liabilities. We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. | ||||||||||||
GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring the fair values of financial and non-financial assets and liabilities. These tiers consist of: | |||||||||||||
Level 1: | Quoted market prices in active markets for identical assets or liabilities | ||||||||||||
Level 2: | Observable market based inputs or unobservable inputs that are corroborated by market data | ||||||||||||
Level 3: | Unobservable inputs that are not corroborated by market data | ||||||||||||
The following tables summarize the fair value measurements (in thousands of dollars) of our financial assets: | |||||||||||||
At December 31, 2014 | |||||||||||||
Total | Quoted Market prices in | Significant Other | |||||||||||
Active Markets | Observable Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash equivalents – Overnight Investments | $ | — | $ | — | $ | — | |||||||
At December 31, 2013 | |||||||||||||
Total | Quoted Market prices in | Significant Other | |||||||||||
Active Markets | Observable Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash equivalents – Overnight Investments | $ | 1,623 | $ | — | $ | 1,623 | |||||||
The Company had no level 3 assets or liabilities at December 31, 2014 and 2013. | |||||||||||||
We use the income approach to value derivatives, using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single discounted present amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the asset and liabilities, which include interest rate and credit risk. We have used mid-market pricing as a practical expedient for fair value measurements. | |||||||||||||
Accounts Receivable and the Allowance for Doubtful Accounts | Accounts Receivable and the Allowance for Doubtful Accounts. The majority of our accounts receivable are due from RV dealers, supply stores and service centers. Credit is extended to a customer based on evaluation of its financial condition and, generally, collateral is not required. We maintain allowances for doubtful accounts for estimated losses that would result from the inability of customers to make required payments on their accounts. We regularly evaluate the adequacy of the allowance for doubtful accounts. We estimate potential losses on our accounts receivable on the basis of the aging of accounts receivable balances, a review of significant past due accounts, and our historical write-off experience, net of recoveries. If the financial condition of our customers were to deteriorate, whether due to deteriorating economic conditions generally or otherwise, adversely affecting their ability to make payments, it could become necessary for us to make additional provisions to increase the allowance for doubtful accounts. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation. We account for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Stock Compensation, which requires the recognition of the fair value of compensation paid in stock or other equity instruments to employees or directors as an expense in the calculation of net earnings (loss). We generally recognize stock-based compensation expense over the period in which the employee or director is required to provide service, which is generally over the vesting period of the individual equity instruments. However, if the vesting of an equity award is conditioned on the achievement of a financial or other performance goal, we do not recognize stock-based compensation expense unless and until we have concluded that achievement of the performance goal has become probable. If we have made such a determination, but the performance goal is not ultimately achieved, due to subsequent events or circumstances, then the previously recognized stock-based compensation expense would be reversed. | ||||||||||||
Warranty Costs | Warranty Costs. We generally do not independently warrant the products that we distribute. Instead, in most instances, the manufacturers warrant their products and allow us to return defective products, including those that have been returned to us by our customers. However, we sell a line of portable generators under a product supply arrangement which obligates us to provide warranty services for these products and provides for us to share the costs of providing those services with the manufacturer. The warranty period is 24 months following the sale of the product to a retail customer. Accordingly, we maintain a reserve for warranty claims we may receive with respect to generators that have been sold to consumers. At December 31, 2014 and 2013, those warranty reserves totaled $762,000 and $737,000, respectively. We periodically increase the warranty reserve to replenish it after it has been reduced by warranty claims charged against it or to increase the reserve as a result of unanticipated increases in claims or material increases in the number of generators that we have sold. Those increases are effectuated by means of a provision for warranty claims which is recorded as a component of our costs of sales in our consolidated statements of operations and, as a result, increases in the warranty reserve can result in a reduction in our income for the period during which such provisions are made. | ||||||||||||
Although we do not maintain insurance for product warranty claims, we do maintain insurance to protect us against product liability claims relating to all of the products we distribute and sell, including the generator products. | |||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements. With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2014 that we believe are of significance, or potential significance, to the Company based on our current operations. | ||||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, which clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts With Customers, a new standard on revenue recognition. The new standard will supersede existing revenue recognition guidance and apply to all entities that enter into contracts to provide goods or services to customers. The guidance also addresses the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as real estate, and property and equipment. The new standard will become effective for us beginning in the first quarter of 2017 and can be adopted either retrospectively to each reporting period presented or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the impact of adopting this new guidance on our consolidated financial statements. | |||||||||||||
In April 2014, the FASB issued a new standard relating to the reporting and disclosure of discontinued operations, which changes the criteria and requires additional disclosures for reporting discontinued operations. This new standard will be effective for all disposals of components of an entity that occur within annual periods beginning on or after December 15, 2015. We do not expect this new standard to have a material impact on our consolidated financial statements or disclosures in our financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Estimated Lives Used in Determining Depreciation and Amortization | The estimated lives used in determining depreciation and amortization are: | ||||||||||||
Buildings and improvements | 12 - 40 years | ||||||||||||
Warehouse and office equipment | 5 - 7 years | ||||||||||||
Automobiles | 3 - 5 years | ||||||||||||
Summary of Fair Value Measurement of Financial Assets | The following tables summarize the fair value measurements (in thousands of dollars) of our financial assets: | ||||||||||||
At December 31, 2014 | |||||||||||||
Total | Quoted Market prices in | Significant Other | |||||||||||
Active Markets | Observable Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash equivalents – Overnight Investments | $ | — | $ | — | $ | — | |||||||
At December 31, 2013 | |||||||||||||
Total | Quoted Market prices in | Significant Other | |||||||||||
Active Markets | Observable Inputs | ||||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash equivalents – Overnight Investments | $ | 1,623 | $ | — | $ | 1,623 |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment, Net | Property and equipment, net consist of the following at December 31: | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Warehouse equipment | $ | 4,941 | $ | 5,197 | |||||
Office equipment | 5,190 | 5,246 | |||||||
Leasehold improvements | 1,525 | 1,554 | |||||||
Automobiles | 115 | 114 | |||||||
11,771 | 12,111 | ||||||||
Less accumulated depreciation and amortization | (10,645 | ) | (10,863 | ) | |||||
$ | 1,126 | $ | 1,248 | ||||||
LongTerm_Obligations_Tables
Long-Term Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long Term Obligations | Long-term obligations consist of the following at December 31: | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Secured notes payable to bank under line of credit due July 10, 2017 | $ | 11,681 | $ | 9,299 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Operating Leases Future Minimum Rent Payable | Minimum future rental commitments under non-cancelable operating leases as of December 31, 2014, in thousands of dollars, are as follows: | ||||
Year Ending December 31, | |||||
2015 | $ | 3,682 | |||
2016 | 3,125 | ||||
2017 | 747 | ||||
2018 | 500 | ||||
2019 | 451 | ||||
Thereafter | 613 | ||||
$ | 9,118 | ||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Assumptions of Estimated Fair Value of Options | We used the following assumptions in estimating the fair value of the options issued in the periods indicated below: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected volatility | 56.7 | % | 57 | % | 59 | % | |||||||||||||||
Risk free interest rate | 2.39 | % | 2.73 | % | 1.64 | % | |||||||||||||||
Expected dividend yields | N/A | N/A | N/A | ||||||||||||||||||
Expected lives | 10 yrs. | 10 yrs. | 10 yrs. | ||||||||||||||||||
Summary of Stock Option Activity | The following tables summarize stock option activity during the years ended December 31, 2014 and 2013: | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Values | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding at January 1, 2014 | 279,000 | $ | 3.31 | ||||||||||||||||||
Granted | 8,000 | 3.3 | |||||||||||||||||||
Exercised | (142,000 | ) | 1.14 | ||||||||||||||||||
Forfeited | (44,000 | ) | 5.72 | ||||||||||||||||||
Outstanding at December 31, 2014 | 101,000 | 5.31 | 4.0 years | $ | 15,300 | ||||||||||||||||
Exercisable at December 31, 2014 | 93,000 | 5.48 | 3.5 years | $ | 15,300 | ||||||||||||||||
Options vested and expected (as of December 31, 2014) to vest in the future | 101,000 | 5.31 | 4.0 years | $ | 15,300 | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||
Exercise | Remaining | Values | |||||||||||||||||||
Price | Contractual | ||||||||||||||||||||
Term | |||||||||||||||||||||
Outstanding at January 1, 2013 | 433,000 | $ | 3.6 | ||||||||||||||||||
Granted | 10,000 | 3.8 | |||||||||||||||||||
Exercised | (30,500 | ) | 0.94 | ||||||||||||||||||
Forfeited | (133,500 | ) | 4.84 | ||||||||||||||||||
Outstanding at December 31, 2013 | 279,000 | 3.31 | 2.5 years | $ | 321,200 | ||||||||||||||||
Stock Options Outstanding Under Equity Incentive Plans | Set forth below is additional information with respect to the stock options that were outstanding under our equity incentive plans at December 31, 2014: | ||||||||||||||||||||
Range | Outstanding | Weighted | Weighted | Options | Weighted | ||||||||||||||||
Options | Average | Average | Exercisable | Average | |||||||||||||||||
Exercise | Remaining | Exercise | |||||||||||||||||||
Price | Contractual | Price | |||||||||||||||||||
Life (Years) | |||||||||||||||||||||
$1.80 – $4.25 | 46,000 | $ | 3.14 | 7.2 | 38,000 | $ | 3.11 | ||||||||||||||
$4.90 – $9.80 | 55,000 | 7.12 | 1.3 | 55,000 | 7.12 | ||||||||||||||||
$1.80 – $9.80 | 101,000 | $ | 5.31 | 4 | 93,000 | $ | 5.48 | ||||||||||||||
Summary of Restricted Share Activity | A summary of restricted stock activity during the years ended December 31, 2014 and 2013 is presented below: | ||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Values | |||||||||||||||||||||
Outstanding at January 1, 2014 | 318,660 | $3.27 | |||||||||||||||||||
Granted | 164,500 | 3.66 | |||||||||||||||||||
Vested | (103,503 | ) | 3.44 | ||||||||||||||||||
Forfeited | (110,672 | ) | 3.31 | ||||||||||||||||||
Outstanding and unvested at end of year | 268,985 | $3.43 | |||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Values | |||||||||||||||||||||
Outstanding at January 1, 2013 | 312,501 | $3.39 | |||||||||||||||||||
Granted | 167,500 | 2.96 | |||||||||||||||||||
Vested | (105,504 | ) | 3.29 | ||||||||||||||||||
Forfeited | (55,837 | ) | 2.96 | ||||||||||||||||||
Outstanding and unvested at end of year | 318,660 | $3.27 | |||||||||||||||||||
Foreign_Operations_Tables
Foreign Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Operations by Geographic Area | A summary of the Company’s operations by geographic area is presented below for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net sales to external customers | |||||||||||||
United States | $ | 92,686 | $ | 87,504 | $ | 85,374 | |||||||
Canada | 26,113 | 26,434 | 28,147 | ||||||||||
Operating income (loss) | |||||||||||||
United States | $ | 1,289 | $ | 1,085 | $ | (459 | ) | ||||||
Canada | (1,195 | ) | (1,122 | ) | (1,607 | ) | |||||||
Other | (15 | ) | 99 | (67 | ) | ||||||||
Identifiable assets | |||||||||||||
United States | $ | 40,819 | $ | 36,339 | $ | 38,341 | |||||||
Canada | 8,703 | 9,554 | 11,009 | ||||||||||
Other | 245 | 351 | 309 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Pretax Earnings (Loss) | Pretax earnings (loss) for the years ended December 31, 2014, 2013 and 2012 were taxed in the following jurisdictions: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 869 | $ | 648 | $ | (807 | ) | ||||||
Foreign | (1,344 | ) | (1,142 | ) | (1,788 | ) | |||||||
$ | (475 | ) | $ | (494 | ) | $ | (2,595 | ) | |||||
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes in each of 2014, 2013 and 2012 is summarized below: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current | |||||||||||||
Federal | $ | 74 | $ | — | $ | — | |||||||
State | 79 | 90 | 61 | ||||||||||
Foreign | (14 | ) | 1 | (409 | ) | ||||||||
139 | 91 | (348 | ) | ||||||||||
Deferred | |||||||||||||
Federal | 168 | 216 | (171 | ) | |||||||||
State | 34 | 87 | — | ||||||||||
Foreign | (293 | ) | (251 | ) | (62 | ) | |||||||
(91 | ) | 52 | (233 | ) | |||||||||
$ | 48 | $ | 143 | $ | (581 | ) | |||||||
Components of Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) were comprised of the following at December 31: | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Inventory | $ | 1,112 | $ | 1,155 | |||||||||
Bad debt provision | 47 | 60 | |||||||||||
Property and equipment | 81 | 95 | |||||||||||
Deferred credits | 1,280 | 1,280 | |||||||||||
Loss carryforwards | 1,203 | 1,031 | |||||||||||
Rent | 121 | 148 | |||||||||||
Other | 802 | 812 | |||||||||||
Gross deferred tax assets | 4,646 | 4,581 | |||||||||||
Less valuation allowance(2) | (1,354 | ) | (1,369 | ) | |||||||||
3,292 | 3,212 | ||||||||||||
Deferred tax liabilities | |||||||||||||
Property and equipment | (79 | ) | (84 | ) | |||||||||
Unremitted earnings of foreign affiliates | (29 | ) | (53 | ) | |||||||||
Gross deferred tax liabilities | (108 | ) | (137 | ) | |||||||||
Net deferred tax assets(1) | $ | 3,184 | $ | 3,075 | |||||||||
-1 | $1,755,000 and $1,849,000 of the total deferred tax assets at December 31, 2014 and 2013 were included in current assets and $1,429,000 and $1,226,000 were included in other long-term assets at December 31, 2014 and 2013, respectively. | ||||||||||||
-2 | The deferred tax valuation allowance decreased by $15,000 during 2014 and $7,000 during 2013. | ||||||||||||
Reconciliation between Actual Tax Expense (Benefit) and Expected Tax Expense (Benefit) | Set forth below is a reconciliation between actual tax expense (benefit) and expected tax expense (benefit) for the respective periods presented below: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Loss before income taxes | $ | (475 | ) | $ | (494 | ) | $ | (2,595 | ) | ||||
Expected income tax expense at 34% | $ | (162 | ) | $ | (168 | ) | $ | (882 | ) | ||||
Difference in rates on earnings of foreign operations | 185 | 148 | 83 | ||||||||||
Stock-based compensation and other nondeductible expenses | 43 | 33 | 27 | ||||||||||
State taxes and credits (net of federal benefit) | 63 | 134 | 50 | ||||||||||
Change in valuation allowance | (15 | ) | (7 | ) | — | ||||||||
Unremitted earnings of foreign subsidiaries | (24 | ) | (5 | ) | (19 | ) | |||||||
Exclusion of earnings of foreign affiliates | (30 | ) | (22 | ) | (54 | ) | |||||||
Foreign dividend | — | — | 192 | ||||||||||
Shortfall on vested restricted shares that exceed pool of windfall tax benefits | — | 32 | |||||||||||
Intercompany profit elimination | (14 | ) | — | — | |||||||||
Other | 2 | (2 | ) | 22 | |||||||||
Income tax provision (benefit) | $ | 48 | $ | 143 | $ | (581 | ) | ||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | ||||||||||||
Unrecognized Tax Benefits (in thousands): | 2014 | 2013 | |||||||||||
Balance as of January 1, | $ | 273 | $ | 263 | |||||||||
Additions for tax positions related to the current year | 3 | 10 | |||||||||||
Additions for tax positions related to prior years | 15 | — | |||||||||||
Reductions for tax positions of prior years | (37 | ) | — | ||||||||||
Balance as of December 31, | $ | 254 | $ | 273 | |||||||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Computation of Basic and Diluted Loss per Common Share | Set forth below are the computations of basic and diluted loss per share for each of the following periods: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Numerator: | |||||||||||||
Net loss | $ | (523 | ) | $ | (637 | ) | $ | (2,014 | ) | ||||
Denominator: | |||||||||||||
Weighted average shares outstanding | 4,906 | 4,691 | 4,597 | ||||||||||
Dilutive effect of stock options and restricted shares | — | — | — | ||||||||||
Denominator for diluted loss per share | 4,906 | 4,691 | 4,597 | ||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands) at December 31: | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll and related benefits | $ | 937 | $ | 798 | |||||
Rent | 362 | 436 | |||||||
Income and other taxes | 400 | 393 | |||||||
Warranty reserve | 762 | 737 | |||||||
Customer rebates | 1,041 | 794 | |||||||
Other | 644 | 551 | |||||||
$ | 4,146 | $ | 3,709 | ||||||
Warranty_Reserve_Tables
Warranty Reserve (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Component of Accrued Warranty Expenses | Set forth in the table below is our accrued warranty expense (in thousands), which is included in accrued liabilities on the consolidated balance sheets: | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued warranty balance as of January 1, | $ | 737 | $ | 690 | |||||
Warranty costs incurred | (965 | ) | (1,193 | ) | |||||
Provision for warranty claims | 990 | 1,240 | |||||||
Accrued warranty balance as of December 31, | $ | 762 | $ | 737 | |||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data Table | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Net sales | $ | 24,855 | $ | 36,797 | $ | 34,821 | $ | 22,326 | |||||||||
Gross profit | 4,215 | 6,970 | 6,610 | 3,318 | |||||||||||||
Net earnings (loss) | (738 | ) | 787 | 582 | (1,154 | ) | |||||||||||
Net earnings (loss) per share — diluted | (0.15 | ) | 0.16 | 0.12 | (0.23 | ) | |||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Net sales | $ | 25,397 | $ | 35,565 | $ | 33,101 | $ | 19,875 | |||||||||
Gross profit | 4,202 | 7,138 | 6,099 | 2,703 | |||||||||||||
Net earnings (loss) | (939 | ) | 1,097 | 487 | (1,282 | ) | |||||||||||
Net earnings (loss) per share — diluted | (0.20 | ) | 0.23 | 0.1 | (0.27 | ) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | Customer | Customer | |
Customer | |||
Distributor | |||
Significant Accounting Policies [Line Items] | |||
Reserves for excess and obsolete inventory | $1,395,000 | $1,454,000 | |
Number of Operating Segments | 1 | ||
Number Of Distribution Centers | 17 | ||
Number Of Customer Accounted For Ten Percent Or More Net Sales | 0 | 0 | 0 |
Level 3 assets | 0 | 0 | |
Level 3 liabilities | 0 | 0 | |
Warranty period for retail customer | 24 months | ||
Warranty reserves | $762,000 | $737,000 | |
Stock Option | |||
Significant Accounting Policies [Line Items] | |||
Anti-dilutive shares excluded from the computation of diluted loss per share | 101,000 | 279,000 | 433,000 |
Restricted Stock | |||
Significant Accounting Policies [Line Items] | |||
Anti-dilutive shares excluded from the computation of diluted loss per share | 268,985 | 318,660 | 312,501 |
Leasehold Improvements | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Leasehold improvements amortization Period | 5 years | ||
Leasehold Improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Leasehold improvements amortization Period | 15 years |
Property_and_Equipment_Estimat
Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings and improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 12 years |
Buildings and improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 years |
Warehouse and office equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Warehouse and office equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 7 years |
Automobiles | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Automobiles | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Summary_of_Fair_Value_Measurem
Summary of Fair Value Measurement of Financial Assets (Detail) (Short Term Investments and Cash Equivalents, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash equivalents - Overnight Investments | $1,623 |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash equivalents - Overnight Investments | $1,623 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment Gross | $11,771 | $12,111 |
Less accumulated depreciation and amortization | -10,645 | -10,863 |
Property Plant and Equipment Net | 1,126 | 1,248 |
Warehouse Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment Gross | 4,941 | 5,197 |
Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment Gross | 5,190 | 5,246 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment Gross | 1,525 | 1,554 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant and Equipment Gross | $115 | $114 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and Amortization | $724,000 | $628,000 | $711,000 |
Long_Term_Obligations_Detail
Long Term Obligations (Detail) (Line of Credit, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Line of Credit | ||
Debt Instrument [Line Items] | ||
Secured notes payable to bank under line of credit due July 10, 2017 | $11,681 | $9,299 |
Long_Term_Obligations_Addition
Long Term Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 13, 2014 | Mar. 13, 2015 | |
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt instrument description | The secured notes payable to bank evidence borrowings under a revolving credit facility which permits us to borrow up to the lesser of (i) $25,000,000, or (ii) an amount equal to 85% of the value of our eligible accounts receivable and up to 55% of the value of our eligible inventory. | |||
Debt instrument covenant compliance | As of December 31, 2014, we were in compliance with all of our financial and other covenants under our line of credit agreement. | |||
Line of credit borrowing capacity | $25,000,000 | |||
Percentage of eligible accounts receivable permitted to borrow under the line of credit | 85.00% | |||
Percentage of eligible inventories permitted to borrow under the line of credit | 55.00% | |||
Borrowing base of the company | 17,000,000 | 13,800,000 | ||
Credit facility maturity date | 10-Jul-17 | |||
19th Amendment | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Percentage of eligible accounts receivable permitted to borrow under the line of credit | 85.00% | |||
19th Amendment | Minimum | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Percentage of eligible inventories permitted to borrow under the line of credit | 50.00% | |||
19th Amendment | Maximum | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Percentage of eligible inventories permitted to borrow under the line of credit | 55.00% | |||
19th Amendment | During the months of February and July 2015 | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Line of credit borrowing capacity | 27,000,000 | |||
19th Amendment | During the months of March, April and May 2015 | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Line of credit borrowing capacity | 30,000,000 | |||
19th Amendment | During the month of June 2015 | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Line of credit borrowing capacity | 29,000,000 | |||
19th Amendment | For the months of January, August, September, October, November and December 2015 | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Line of credit borrowing capacity | 25,000,000 | |||
Subsequent Event | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Outstanding borrowings under revolving credit facility | $18,390,000 | |||
Prime Rate | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Interest rate payable | 3.25% | |||
Additional rate of interest | 1.75% | |||
LIBOR Rate | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Interest rate payable | 0.25% | |||
Additional rate of interest | 3.25% |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | |||
Rent expenses | $3,670,000 | $3,759,000 | $3,938,000 |
Office and Warehouse | |||
Operating Leased Assets [Line Items] | |||
Lease, expired period | 12 years |
Operating_Leases_Future_Minimu
Operating Leases Future Minimum Rent Payable (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $3,682 |
2016 | 3,125 |
2017 | 747 |
2018 | 500 |
2019 | 451 |
Thereafter | 613 |
Total | $9,118 |
Stock_Incentive_Plans_Addition
Stock Incentive Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate pre-tax intrinsic value | $350,000 | $75,000 | ||
Weighted average fair value of options granted | $3.23 | $2.77 | ||
Stock-based compensation expense | 33,000 | 24,000 | 16,000 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted shares outstanding | 268,985 | 318,660 | 312,501 | |
Number of restricted shares vested | 103,503 | 105,504 | ||
Intrinsic value of restricted shares vested | $384,500 | |||
Common stock cancelled in payment of payroll taxes due on vesting of restricted shares under employee stock incentive plans (in shares) | 34,793 | |||
Tax withholding obligations | 129,000 | |||
Restricted Stock | Service Contingent | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 233,000 | 278,000 | 440,000 | |
Unrecognized compensation cost | 52,439 | |||
Unvested restricted shares outstanding | 103,494 | |||
Unrecognized compensation costs are expected to be recognized over a weighted average periods (years) | 1 year | |||
Aggregate intrinsic value | 335,321 | |||
Restricted Stock | Service Contingent | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Stock | Service Contingent | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock | Performance Contingent | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0 | 0 | 0 | |
Unrecognized compensation cost | 567,000 | |||
Unvested restricted shares outstanding | 165,491 | |||
Unrecognized compensation costs are expected to be recognized over a weighted average periods (years) | 9 months 18 days | |||
Aggregate intrinsic value | 536,200 | |||
Unvested Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $0 | |||
2012 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares initially authorized for issuance under equity incentive plan | 300,000 | |||
Additional shares authorized for issuance under equity incentive plan | 17,666 | |||
Shares redistributed and made available for grant | 207,333 | |||
Outstanding shares remained available for future grants | 372,332 | |||
Previously Approved Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares ceased to be issuable | 17,666 |
Assumptions_of_Estimated_Fair_
Assumptions of Estimated Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Incentive Plans: | |||
Expected volatility | 56.70% | 57.00% | 59.00% |
Risk free interest rate | 2.39% | 2.73% | 1.64% |
Expected lives | 10 years | 10 years | 10 years |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | ||
Beginning Balance | 279,000 | 433,000 |
Granted | 8,000 | 10,000 |
Exercised | -142,000 | -30,500 |
Forfeited | -44,000 | -133,500 |
Ending Balance | 101,000 | 279,000 |
Exercisable | 93,000 | |
Options vested and expected to vest thereafter | 101,000 | |
Weighted Average Exercise Price | ||
Beginning Balance | $3.31 | $3.60 |
Granted | $3.30 | $3.80 |
Exercised | $1.14 | $0.94 |
Forfeited | $5.72 | $4.84 |
Ending Balance | $5.31 | $3.31 |
Exercisable | $5.48 | |
Options vested and expected to vest thereafter | $5.31 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding, end of period | 4 years | 2 years 6 months |
Exercisable, end of period | 3 years 6 months | |
Options vested and expected to vest thereafter | 4 years | |
Aggregate Intrinsic Value | ||
Outstanding, end of period | $15,300 | $321,200 |
Exercisable | 15,300 | |
Options vested and expected to vest thereafter | $15,300 |
Stock_Options_Outstanding_Unde
Stock Options Outstanding Under Equity Incentive Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding Options | 101,000 | 279,000 | 433,000 |
Weighted Average Exercise Price | $5.31 | $3.31 | $3.60 |
Weighted Average Remaining Contractual Life (Years) | 4 years | 2 years 6 months | |
Options Exercisable | 93,000 | ||
Weighted Average Exercise Price | $5.48 | ||
Previously Approved Plans | $1.80 - $4.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of exercise prices, lower limit | $1.80 | ||
Range of exercise prices, upper limit | $4.25 | ||
Outstanding Options | 46,000 | ||
Weighted Average Exercise Price | $3.14 | ||
Weighted Average Remaining Contractual Life (Years) | 7 years 2 months 12 days | ||
Options Exercisable | 38,000 | ||
Weighted Average Exercise Price | $3.11 | ||
Previously Approved Plans | $4.90 - $9.80 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of exercise prices, lower limit | $4.90 | ||
Range of exercise prices, upper limit | $9.80 | ||
Outstanding Options | 55,000 | ||
Weighted Average Exercise Price | $7.12 | ||
Weighted Average Remaining Contractual Life (Years) | 1 year 3 months 18 days | ||
Options Exercisable | 55,000 | ||
Weighted Average Exercise Price | $7.12 | ||
Previously Approved Plans | $1.80 - $9.80 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of exercise prices, lower limit | $1.80 | ||
Range of exercise prices, upper limit | $9.80 | ||
Outstanding Options | 101,000 | ||
Weighted Average Exercise Price | $5.31 | ||
Weighted Average Remaining Contractual Life (Years) | 4 years | ||
Options Exercisable | 93,000 | ||
Weighted Average Exercise Price | $5.48 |
Summary_of_Restricted_Share_Ac
Summary of Restricted Share Activity (Detail) (Restricted Stock, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock | ||
Shares | ||
Beginning Balance | 318,660 | 312,501 |
Granted | 164,500 | 167,500 |
Vested | -103,503 | -105,504 |
Forfeited | -110,672 | -55,837 |
Ending Balance | 268,985 | 318,660 |
Weighted Average Grant-Date Fair Values | ||
Beginning Balance | $3.27 | $3.39 |
Granted | $3.66 | $2.96 |
Vested | $3.44 | $3.29 |
Forfeited | $3.31 | $2.96 |
Ending Balance | $3.43 | $3.27 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefit Plan [Line Items] | |||
Company's contributions to the plan | $0 | $0 | $0 |
Summary_of_Operations_by_Geogr
Summary of Operations by Geographic Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | $22,326 | $34,821 | $36,797 | $24,855 | $19,875 | $33,101 | $35,565 | $25,397 | $118,799 | $113,938 | $113,521 |
Operating income (loss) | 79 | 62 | -2,133 | ||||||||
Assets | 49,767 | 46,244 | 49,767 | 46,244 | |||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 92,686 | 87,504 | 85,374 | ||||||||
Operating income (loss) | 1,289 | 1,085 | -459 | ||||||||
Assets | 40,819 | 36,339 | 40,819 | 36,339 | 38,341 | ||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 26,113 | 26,434 | 28,147 | ||||||||
Operating income (loss) | -1,195 | -1,122 | -1,607 | ||||||||
Assets | 8,703 | 9,554 | 8,703 | 9,554 | 11,009 | ||||||
Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | -15 | 99 | -67 | ||||||||
Assets | $245 | $351 | $245 | $351 | $309 |
Foreign_Operations_Additional_
Foreign Operations - Additional Information (Detail) (MEXICO, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
MEXICO | ||
Segment Reporting Information [Line Items] | ||
Segment reporting equity method investments information | $1,043,000 | $982,000 |
Pretax_Earnings_Loss_Detail
Pretax Earnings (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Domestic | $869 | $648 | ($807) |
Foreign | -1,344 | -1,142 | -1,788 |
Loss before income taxes | ($475) | ($494) | ($2,595) |
Provision_Benefit_for_Income_T
Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $74 | ||
State | 79 | 90 | 61 |
Foreign | -14 | 1 | -409 |
Current Income Tax Expense (Benefit), Total | 139 | 91 | -348 |
Deferred | |||
Federal | 168 | 216 | -171 |
State | 34 | 87 | |
Foreign | -293 | -251 | -62 |
Deferred income taxes | -109 | 59 | -220 |
Income tax provision (benefit) | 48 | 143 | -581 |
Deferred Income Taxes | |||
Deferred | |||
Deferred income taxes | ($91) | $52 | ($233) |
Components_of_Deferred_Tax_Ass
Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred tax assets | ||||
Inventory | $1,112 | $1,155 | ||
Bad debt provision | 47 | 60 | ||
Property and equipment | 81 | 95 | ||
Deferred credits | 1,280 | 1,280 | ||
Loss carryforwards | 1,203 | 1,031 | ||
Rent | 121 | 148 | ||
Other | 802 | 812 | ||
Gross deferred tax assets | 4,646 | 4,581 | ||
Less valuation allowance | -1,354 | [1] | -1,369 | [1] |
Deferred Tax Assets, Net of Valuation Allowance, Total | 3,292 | 3,212 | ||
Deferred tax liabilities | ||||
Property and equipment | -79 | -84 | ||
Unremitted earnings of foreign affiliates | -29 | -53 | ||
Gross deferred tax liabilities | -108 | -137 | ||
Net deferred tax assets | $3,184 | [2] | $3,075 | [2] |
[1] | The deferred tax valuation allowance decreased by $15,000 during 2014 and $7,000 during 2013. | |||
[2] | $1,755,000 and $1,849,000 of the total deferred tax assets at December 31, 2014 and 2013 were included in current assets and $1,429,000 and $1,226,000 were included in other long-term assets at December 31, 2014 and 2013, respectively. |
Components_of_Deferred_Tax_Ass1
Components of Deferred Tax Assets (Liabilities) (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Components Of Deferred Tax Assets And Liabilities [Line Items] | ||
Deferred tax assets net, current | $1,755,000 | $1,849,000 |
Deferred tax assets net, non current | 1,429,000 | 1,226,000 |
Decrease in deferred tax assets valuation allowance | ($15,000) | ($7,000) |
Reconciliation_between_Actual_
Reconciliation between Actual Tax Expense (Benefit) and Expected Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Reconciliation [Line Items] | |||
Loss before income taxes | ($475) | ($494) | ($2,595) |
Expected income tax expense at 34% | -162 | -168 | -882 |
Difference in rates on earnings of foreign operations | 185 | 148 | 83 |
Stock-based compensation and other nondeductible expenses | 43 | 33 | 27 |
State taxes and credits (net of federal benefit) | 63 | 134 | 50 |
Change in valuation allowance | -15 | -7 | |
Unremitted earnings of foreign subsidiaries | -24 | -5 | -19 |
Exclusion of earnings of foreign affiliates | -30 | -22 | -54 |
Foreign dividend | 192 | ||
Shortfall on vested restricted shares that exceed pool of windfall tax benefits | 32 | ||
Intercompany profit elimination | -14 | ||
Other | 2 | -2 | 22 |
Income tax provision (benefit) | $48 | $143 | ($581) |
Reconciliation_between_Actual_1
Reconciliation between Actual Tax Expense (Benefit) and Expected Tax Expense (Benefit) (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Reconciliation [Line Items] | |
Expected income tax expense, Percent | 34.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax And Carryforwards [Line Items] | |||
Gross unrecognized tax benefits | $254,000 | $273,000 | $263,000 |
Unrecognized tax benefit, impact on effective tax rate | 19,000 | ||
Interest and penalties | 133,000 | ||
State | |||
Income Tax And Carryforwards [Line Items] | |||
Operating loss carryforwards | 3,787,000 | ||
Tax credit carryforwards | 1,245,000 | ||
Foreign | |||
Income Tax And Carryforwards [Line Items] | |||
Operating loss carryforwards | 4,281,000 | ||
Tax credit carryforwards | 328,000 | ||
Federal | |||
Income Tax And Carryforwards [Line Items] | |||
Operating loss carryforwards | $963,000 |
Schedule_of_Reconciliation_of_
Schedule of Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Contingency [Line Items] | ||
Beginning Balance | $273 | $263 |
Additions for tax positions related to the current year | 3 | 10 |
Additions for tax positions related to prior years | 15 | |
Reductions for tax positions of prior years | -37 | |
Ending Balance | $254 | $273 |
Computation_of_Diluted_Loss_Pe
Computation of Diluted Loss Per Share with Exclusion of Antidilutive Securities (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net loss | ($1,154) | $582 | $787 | ($738) | ($1,282) | $487 | $1,097 | ($939) | ($523) | ($637) | ($2,014) |
Denominator: | |||||||||||
Weighted average shares outstanding | 4,906 | 4,691 | 4,597 | ||||||||
Dilutive effect of stock options and restricted shares | 0 | 0 | 0 | ||||||||
Denominator for diluted loss per share | 4,906 | 4,691 | 4,597 |
Components_of_Accrued_Liabilit
Components of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Line Items] | ||
Payroll and related benefits | $937 | $798 |
Rent | 362 | 436 |
Income and other taxes | 400 | 393 |
Warranty reserve | 762 | 737 |
Customer rebates | 1,041 | 794 |
Other | 644 | 551 |
Accrued liabilities current | $4,146 | $3,709 |
Accrued_Warranty_Expense_Detai
Accrued Warranty Expense (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Warranty Liability [Line Items] | ||
Accrued warranty beginning balance | $737 | $690 |
Warranty costs incurred | -965 | -1,193 |
Provision for warranty claims | 990 | 1,240 |
Accrued warranty ending balance | $762 | $737 |
Significant_Concentrations_Add
Significant Concentrations - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Airxcel, Inc. | |||
Concentration Risk [Line Items] | |||
Percentage of purchases from major suppliers | 23.00% | 25.00% | 22.00% |
Zhejiang | |||
Concentration Risk [Line Items] | |||
Percentage of purchases from major suppliers | 6.00% | ||
Zhejiang | Maximum | |||
Concentration Risk [Line Items] | |||
Percentage of purchases from major suppliers | 5.00% | 5.00% |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Line Items] | |||||||||||
Net sales | $22,326 | $34,821 | $36,797 | $24,855 | $19,875 | $33,101 | $35,565 | $25,397 | $118,799 | $113,938 | $113,521 |
Gross profit | 3,318 | 6,610 | 6,970 | 4,215 | 2,703 | 6,099 | 7,138 | 4,202 | 21,113 | 20,142 | 17,302 |
Net earnings (loss) | ($1,154) | $582 | $787 | ($738) | ($1,282) | $487 | $1,097 | ($939) | ($523) | ($637) | ($2,014) |
Net earnings (loss) per share - diluted | ($0.23) | $0.12 | $0.16 | ($0.15) | ($0.27) | $0.10 | $0.23 | ($0.20) | ($0.11) | ($0.14) | ($0.44) |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | $278,000 | $311,000 | $387,000 | ||
Adjustments | 88,000 | 115,000 | 23,000 | ||
Deductions | -141,000 | -148,000 | -99,000 | ||
Balance at End of Period | 225,000 | 278,000 | 311,000 | ||
Allowance for Obsolete or Slow-Moving Inventory | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 1,454,000 | 1,439,000 | 1,401,000 | ||
Adjustments | 176,000 | 251,000 | 224,000 | ||
Deductions | -235,000 | -236,000 | -186,000 | ||
Balance at End of Period | 1,395,000 | 1,454,000 | 1,439,000 | ||
Valuation Allowance of Deferred Tax Assets | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 1,369,000 | 1,376,000 | 1,213,000 | ||
Additions | 163,000 | ||||
Deductions | -15,000 | [1] | -7,000 | [1] | |
Balance at End of Period | $1,354,000 | $1,369,000 | $1,376,000 | ||
[1] | Net operating loss carryforwards used or expired. |