Document_and_Entity_Informatio
Document and Entity Information Document | 6 Months Ended | |
Jun. 29, 2014 | Aug. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MAGNETEK, INC. | ' |
Entity Central Index Key | '0000751085 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 3,268,141 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 29, 2014 | Jun. 30, 2013 | Jun. 29, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $27,009 | $27,006 | $51,122 | $52,065 |
Cost of sales | 17,294 | 17,663 | 33,255 | 34,580 |
Gross profit | 9,715 | 9,343 | 17,867 | 17,485 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 790 | 781 | 1,589 | 1,707 |
Pension expense | 925 | 1,560 | 1,850 | 3,120 |
Selling, general and administrative | 5,250 | 5,529 | 10,240 | 10,379 |
Total operating expenses | 6,965 | 7,870 | 13,679 | 15,206 |
Income from continuing operations before income taxes | 2,750 | 1,473 | 4,188 | 2,279 |
Provision for income taxes | 240 | 280 | 480 | 541 |
Income from continuing operations | 2,510 | 1,193 | 3,708 | 1,738 |
Income (loss) from discontinued operations, net of tax | -213 | -28 | -357 | -101 |
Net income | $2,297 | $1,165 | $3,351 | $1,637 |
Earnings per common share - basic: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.77 | $0.37 | $1.14 | $0.54 |
Income (loss) from discontinued operations (in dollars per share) | ($0.07) | ($0.01) | ($0.11) | ($0.03) |
Net income per common share (in dollars per share) | $0.70 | $0.36 | $1.03 | $0.51 |
Earnings per common share - diluted: | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.74 | $0.36 | $1.10 | $0.53 |
Income (loss) from discontinued operations (in dollars per share) | ($0.06) | ($0.01) | ($0.11) | ($0.03) |
Net income per common share (in dollars per share) | $0.68 | $0.35 | $0.99 | $0.50 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 3,267 | 3,221 | 3,265 | 3,217 |
Diluted (in shares) | 3,372 | 3,323 | 3,375 | 3,307 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 29, 2014 | Jun. 30, 2013 | Jun. 29, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $2,297 | $1,165 | $3,351 | $1,637 |
Change in unrecognized pension liability | 1,800 | 2,161 | 3,600 | 4,322 |
Change in currency translation adjustments | 194 | -129 | 79 | -316 |
Comprehensive income | $4,291 | $3,197 | $7,030 | $5,643 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 29, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,908 | $14,960 |
Restricted cash | 262 | 262 |
Accounts receivable, net | 16,945 | 15,100 |
Inventories | 13,757 | 13,322 |
Prepaid expenses and other current assets | 466 | 814 |
Total current assets | 47,338 | 44,458 |
Property, plant and equipment | 23,628 | 23,264 |
Less: accumulated depreciation | 20,911 | 20,529 |
Net property, plant and equipment | 2,717 | 2,735 |
Goodwill | 30,430 | 30,427 |
Other assets | 4,432 | 4,349 |
Total Assets | 84,917 | 81,969 |
Current liabilities: | ' | ' |
Accounts payable | 10,758 | 10,403 |
Accrued liabilities | 5,451 | 4,833 |
Total current liabilities | 16,209 | 15,236 |
Pension benefit obligations, net | 42,609 | 48,461 |
Other long term obligations | 870 | 911 |
Deferred income taxes | 9,605 | 9,125 |
Commitments and contingencies | ' | ' |
Stockholders’ deficit | ' | ' |
Common stock | 33 | 33 |
Paid in capital in excess of par value | 142,956 | 142,598 |
Retained earnings | 20,439 | 17,088 |
Accumulated other comprehensive loss | -147,804 | -151,483 |
Total stockholders' deficit | 15,624 | 8,236 |
Total Liabilities and Stockholders' Deficit | $84,917 | $81,969 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 29, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $3,351 | $1,637 |
(Income) loss from discontinued operations | 357 | 101 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation | 378 | 350 |
Amortization of intangible assets | 27 | 27 |
Stock based compensation expense | 231 | 306 |
Pension expense | 1,850 | 3,120 |
Deferred income tax provision | 480 | 461 |
Changes in operating assets and liabilities | -813 | -1,210 |
Cash contribution to pension fund | -4,102 | -8,283 |
Net cash provided by (used in) operating activities - continuing operations | 1,759 | -3,491 |
Net cash provided by (used in) operating activities - discontinued operations | -579 | -515 |
Net cash provided by (used in) operating activities | 1,180 | -4,006 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -359 | -193 |
Net cash provided by (used in) investing activities - continuing operations | -359 | -193 |
Net cash provided by (used in) investing activities - discontinued operations | 0 | 0 |
Net cash provided by (used in) investing activities | -359 | -193 |
Cash flow from financing activities: | ' | ' |
Proceeds from issuance of common stock | 147 | 167 |
Purchase and retirement of treasury stock | -20 | -31 |
Principal payments under capital lease obligations | 0 | -2 |
Net cash provided by (used in) financing activities - continuing operations | 127 | 134 |
Net cash provided by (used in) financing activities - discontinued operations | 0 | 0 |
Net cash provided by (used in) financing activities | 127 | 134 |
Net increase (decrease) in cash | 948 | -4,065 |
Cash at the beginning of the period | 14,960 | 28,706 |
Cash at the end of the period | $15,908 | $24,641 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 29, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Profile | |
Magnetek, Inc. (the “Company” or “Magnetek”) is a global provider of digital power control systems that are used to control motion and power primarily in material handling, elevator, and mining applications. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Magnetek, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2013, filed with the Securities and Exchange Commission (the “SEC”). In the Company's opinion, these unaudited statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial position of the Company as of June 29, 2014, and the results of its operations and cash flows for the three- and six-month periods ended June 29, 2014, and June 30, 2013. Results for the six months ended June 29, 2014, are not necessarily indicative of results that may be experienced for the full fiscal year. | |
Fiscal Year | |
The Company uses a 52 or 53 week fiscal year ending on the Sunday nearest December 31. Fiscal quarters are the 13 or 14 week periods ending on the Sunday nearest March 31, June 30, September 30, and December 31. The three- and six-month periods ended June 29, 2014 and June 30, 2013 each contained 13 weeks and 26 weeks, respectively. | |
Use of Estimates | |
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Codification (("ASC") 606-10, Revenue for Contracts with Customers (issued under Accounting Standards Update No. 2014-09). ASC 606-10 will be effective for the year beginning on or around January 1, 2017, and will replace all existing revenue recognition guidance. The Company is in the process of determining whether the adoption of ASC 606-10 will have an impact on the Company's results of operations, financial position, or cash flows. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended |
Jun. 29, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Discontinued Operations | ' |
Discontinued Operations | |
Certain expenses incurred related to businesses the Company no longer owns are classified as discontinued operations in the accompanying condensed consolidated financial statements. Expenses related to previously divested businesses have historically included environmental matters, asbestos claims, and product liability claims incurred in connection with indemnification agreements the Company entered into upon divestiture of those businesses. | |
The condensed consolidated balance sheet as of June 29, 2014, includes certain accrued liabilities which represent the Company’s best estimate of remaining contingent liabilities related to the indemnification provisions included in the sale agreements of divested businesses. While management has used its best judgment in assessing the potential liability for these items, given the uncertainty regarding future events, it is difficult to estimate the possible timing or magnitude of any payments that may be required for liabilities subject to indemnification. Any future adjustment to currently recorded contingencies related to indemnification claims or payments based upon changes in circumstances would be recorded as a gain or loss in discontinued operations. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 29, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of the following: | ||||||||
June 29, | December 29, | |||||||
2014 | 2013 | |||||||
Raw materials and stock parts | $ | 8,407 | $ | 8,531 | ||||
Work-in-process | 1,239 | 1,344 | ||||||
Finished goods | 4,111 | 3,447 | ||||||
$ | 13,757 | $ | 13,322 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation—Product Liability | |
The Company has been named, along with multiple other defendants, in asbestos-related lawsuits associated with business operations previously acquired by the Company, but which are no longer owned. During the Company's ownership, none of the businesses produced or sold asbestos-containing products. With respect to these claims, the Company believes that it has no such liability. For such claims, the Company is uninsured and either contractually indemnified against liability, or contractually obligated to defend and indemnify the purchaser of these former Magnetek business operations. The Company aggressively seeks dismissal from these proceedings. Management does not believe the asbestos proceedings, individually or in the aggregate, will have a material adverse effect on its financial position or results of operations. Given the nature of the above issues, uncertainty of the ultimate outcome, and inability to estimate the potential loss, no amounts have been reserved for these matters. | |
Litigation-Other | |
In October 2010, the Company received a request for indemnification from Power-One, Inc. ("Power-One") for an Italian tax matter arising out of the sale of the Company's power electronics business to Power-One in October 2006. With a reservation of rights, the Company affirmed its obligation to indemnify Power-One for certain pre-closing taxes. The sale included an Italian company, Magnetek, S.p.A., and its wholly owned subsidiary, Magnetek Electronics (Shenzhen) Co. Ltd. (the “Power-One China Subsidiary”). The tax authority in Arezzo, Italy, issued a notice of audit report in September 2010 wherein it asserted that the Power-One China Subsidiary had its administrative headquarters in Italy with fiscal residence in Italy and, therefore, is subject to taxation in Italy. In November 2010, the tax authority issued a notice of tax assessment for the period of July 2003 to June 2004, alleging that taxes of approximately Euro 1.9 million (approximately US$2.6 million) were due in Italy on taxable income earned by the Power-One China Subsidiary during this period. In addition, the assessment alleges potential penalties together with interest in the amount of approximately Euro 2.6 million (approximately US$3.5 million) for the alleged failure of the Power-One China Subsidiary to file its Italian tax return. The Power-One China Subsidiary filed its response with the provincial tax commission of Arezzo, Italy in January 2011. The tax authority in Arezzo, Italy issued a tax inspection report in January 2011 for the periods July 2002 to June 2003 and July 2004 to December 2006 claiming that the Power-One China Subsidiary failed to file Italian tax returns for the reported periods. A hearing before the Tax Court was held in July 2012 on the tax assessment for the period of July 2003 to June 2004. In September 2012, the Tax Court ruled in favor of the Power-One China Subsidiary dismissing the tax assessment for the period of July 2003 to June 2004. In February 2013, the tax authority filed an appeal of the Tax Court's September 2012 ruling. In August 2012, the tax authority in Arezzo, Italy issued notices of tax assessment for the periods July 2002 to June 2003 and July 2004 to December 2006, alleging that taxes of approximately Euro 6.7 million (approximately US$9.1 million) were due in Italy on taxable income earned by the Power-One China Subsidiary together with an allegation of potential penalties in the amount of approximately Euro 2.8 million (approximately US$3.8 million) for the alleged failure of the Power-One China Subsidiary to file its Italian tax returns. The Company believes the Italian tax claims are without merit and intends to vigorously defend against them. | |
In November 2007, a lawsuit was filed by Antonio Canova in Italy, in the Court of Arezzo, Labor Law Section, against the Company and Power-One Italy, S.p.A. Mr. Canova is a former Executive Vice President of the Company and was Deputy Chairman and Managing Director of the Company's former Italian subsidiary, Magnetek S.p.A. Mr. Canova asserted claims for damages in the amount of Euro 3.5 million (approximately US$4.8 million) allegedly incurred in connection with the termination of his employment at the time of the sale of the Company's power electronics business to Power-One in October 2006. The claims against the Company related to a change of control agreement, restricted stock grant and salary reduction. In March 2012, the Court of Arezzo ruled in the Company's favor, dismissing Mr. Canova's claims against the Company as invalid. Mr. Canova appealed the ruling in September 2012. On October 1, 2013, the Labor Court of Appeals issued its decision rejecting all claims of Mr. Canova against the Company and ordered Mr. Canova to pay a nominal amount to the Company toward its appellate legal expenses. Mr. Canova retains the right to appeal the ruling to the Supreme Court until October 16, 2014. | |
Environmental Matters-General | |
From time to time, Magnetek has taken action to bring certain facilities associated with previously owned businesses into compliance with applicable environmental laws and regulations. Upon the subsequent sale of certain businesses, the Company agreed to indemnify the buyers against environmental claims associated with the divested operations, subject to certain conditions and limitations. Remediation activities, including those related to the Company's indemnification obligations, did not involve material expenditures during the first six months of fiscal year 2014. | |
The Company has also been identified by the United States Environmental Protection Agency and certain state agencies as a potentially responsible party for cleanup costs associated with alleged past waste disposal practices at several previously utilized, owned or leased facilities and offsite locations. Its remediation activities as a potentially responsible party were not material in the first six months of fiscal year 2014. Although the materiality of future expenditures for environmental activities may be affected by the level and type of contamination, the extent and nature of cleanup activities required by governmental authorities, the nature of the Company's alleged connection to the contaminated sites, the number and financial resources of other potentially responsible parties, the availability of indemnification rights against third parties and the identification of additional contaminated sites, the Company's estimated share of liability, if any, for environmental remediation, including its indemnification obligations, is not expected to be material. | |
Bridgeport, Connecticut Facility | |
In 1986, the Company acquired the stock of Universal Manufacturing Corporation (“Universal”) from a predecessor of Fruit of the Loom (“FOL”), and the predecessor agreed to indemnify the Company against certain environmental liabilities arising from pre-acquisition activities at a facility in Bridgeport, Connecticut. Environmental liabilities covered by the indemnification agreement included completion of additional cleanup activities, if any, at the Bridgeport facility and defense and indemnification against liability for potential response costs related to offsite disposal locations. The Company's leasehold interest in the Bridgeport facility was assigned to the buyer in connection with the sale of the Company's transformer business in June 2001. FOL, the successor to the indemnification obligation, filed a petition for Reorganization under Chapter 11 of the Bankruptcy Code in 1999 and the Company filed a proof of claim in the proceeding for obligations related to the environmental indemnification agreement. The Company believes that FOL had substantially completed the clean-up obligations required by the indemnification agreement prior to the bankruptcy filing. In November 2001, the Company and FOL entered into an agreement involving the allocation of certain potential tax benefits and Magnetek withdrew its claims in the bankruptcy proceeding. The Company further believes that FOL's obligation to the state of Connecticut was not discharged in the reorganization proceeding. | |
In January 2007, the Connecticut Department of Environmental Protection (“DEP”) requested parties, including the Company, to submit reports summarizing the investigations and remediation performed to date at the site and the proposed additional investigations and remediation necessary to complete those actions at the site. DEP requested additional information from the Company relating to site investigations and remediation. The Company and the DEP agreed to the scope of the work plan in November 2010. The Company has recorded a liability of $0.4 million related to the Bridgeport facility, representing the Company's best estimate of future site investigation costs and remediation costs which are expected to be incurred in the future. The liability is included in accrued liabilities in the accompanying condensed consolidated balance sheet as of June 29, 2014. | |
FOL's inability to satisfy its remaining obligations to the state of Connecticut related to the Bridgeport facility and any offsite disposal locations, or the discovery of additional environmental contamination at the Bridgeport facility could have a material adverse effect on the Company's financial position, cash flows or results of operations. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 6 Months Ended | ||||||||||||||||
Jun. 29, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share for the three- and six-month periods ended June 29, 2014, and June 30, 2013: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 29, | June 30, | June 29, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations | $ | 2,510 | $ | 1,193 | $ | 3,708 | $ | 1,738 | |||||||||
Income (loss) from discontinued operations | (213 | ) | (28 | ) | (357 | ) | (101 | ) | |||||||||
Net income | $ | 2,297 | $ | 1,165 | $ | 3,351 | $ | 1,637 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic earnings per share | 3,267 | 3,221 | 3,265 | 3,217 | |||||||||||||
Add dilutive effect of stock based compensation | 105 | 102 | 110 | 90 | |||||||||||||
Weighted average shares - diluted earnings per share | 3,372 | 3,323 | 3,375 | 3,307 | |||||||||||||
Income (loss) per share - basic: | |||||||||||||||||
Continuing operations | $ | 0.77 | $ | 0.37 | $ | 1.14 | $ | 0.54 | |||||||||
Discontinued operations | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | (0.03 | ) | |||||
Net income per share | $ | 0.7 | $ | 0.36 | $ | 1.03 | $ | 0.51 | |||||||||
Income (loss) per share - diluted: | |||||||||||||||||
Continuing operations | $ | 0.74 | $ | 0.36 | $ | 1.1 | $ | 0.53 | |||||||||
Discontinued operations | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | (0.03 | ) | |||||
Net income per share | $ | 0.68 | $ | 0.35 | $ | 0.99 | $ | 0.5 | |||||||||
Outstanding options to purchase 74 thousand and 105 thousand shares of common stock as of June 29, 2014, and June 30, 2013, respectively, have not been included in the Company’s computation of weighted average shares for diluted earnings per share for the three-month periods then ended because the effect would have been anti-dilutive. |
Warranties
Warranties | 6 Months Ended | |||||||
Jun. 29, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Warranties | ' | |||||||
Warranties | ||||||||
The Company offers warranties for certain products that it manufactures, with the warranty term generally ranging from one to two years. Warranty reserves are established for costs expected to be incurred after the sale and delivery of products under warranty, based mainly on known product failures and historical experience. Actual repair costs incurred for products under warranty are charged against the established reserve balance as incurred. Changes in the warranty reserve for the six-month periods ended June 29, 2014, and June 30, 2013, are as follows: | ||||||||
Six Months Ended | ||||||||
June 29, | June 30, | |||||||
2014 | 2013 | |||||||
Balance, beginning of fiscal year | $ | 379 | $ | 370 | ||||
Changes in product warranties charged to earnings | 101 | 286 | ||||||
Use of reserve for warranty obligations | (152 | ) | (310 | ) | ||||
Balance, end of period | $ | 328 | $ | 346 | ||||
Warranty reserves are included in accrued liabilities in the accompanying condensed consolidated balance sheets. |
Pension_Expense
Pension Expense | 6 Months Ended | ||||||||||||||||
Jun. 29, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension Expense | ' | ||||||||||||||||
Pension Expense | |||||||||||||||||
Pension expense related to the Company’s defined benefit pension plan for the three- and six-month periods ended June 29, 2014, and June 30, 2013, follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 29, | June 30, | June 29, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest cost | $ | 2,225 | $ | 1,957 | $ | 4,450 | $ | 3,914 | |||||||||
Expected return on plan assets | (3,100 | ) | (2,558 | ) | (6,200 | ) | (5,116 | ) | |||||||||
Recognized net actuarial losses | 1,800 | 2,161 | 3,600 | 4,322 | |||||||||||||
Total net pension expense | $ | 925 | $ | 1,560 | $ | 1,850 | $ | 3,120 | |||||||||
The Company made contributions of $4.1 million to its pension plan assets in the first six months of fiscal 2014. The Company expects to make further contributions totaling $11.2 million to its pension plan in the second half of fiscal 2014. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Due to historical taxable losses, the Company provides valuation reserves against its U.S. deferred tax assets. A portion of the Company’s deferred tax liability relates to tax-deductible amortization of goodwill that is no longer amortized for financial reporting purposes. These deferred tax liabilities are considered to have an indefinite life and are therefore ineligible to be considered as a source of future taxable income in assessing the realization of deferred tax assets. | |
The Company’s provision for income taxes for the three-month periods ended June 29, 2014, and June 30, 2013, includes $240 and $231, respectively, of deferred income tax expense related to the increase in the Company’s deferred tax liability resulting from the tax-deductible amortization of goodwill. The Company’s provision for income taxes for the six-month periods ended June 29, 2014, and June 30, 2013, includes $480 and $461, respectively, of deferred income tax expense related to the increase in the Company’s deferred tax liability resulting from the tax-deductible amortization of goodwill, with the remaining tax provision for each of those periods comprised of income taxes of the Company’s foreign subsidiary in Canada. |
Bank_Borrowing_Arrangements
Bank Borrowing Arrangements | 6 Months Ended |
Jun. 29, 2014 | |
Debt Disclosure [Abstract] | ' |
Bank Borrowing Arrangements | ' |
Bank Borrowing Arrangements | |
In November 2007, the Company entered into an agreement with Associated Bank, N.A. (“Associated Bank”) providing for a $10 million revolving credit facility (the “revolving facility”). Borrowings under the revolving facility bore interest at the London Interbank Offering Rate (“LIBOR”) plus 1.5%, with borrowing levels determined by a borrowing base formula as defined in the agreement, which included the level of eligible accounts receivable. The revolving facility also supports the issuance of letters of credit, places certain restrictions on the Company’s ability to pay dividends or make acquisitions, and includes covenants that require minimum operating profit levels and limit annual capital expenditures. Borrowings under the revolving facility were originally collateralized by the Company’s accounts receivable and inventory. | |
The Company has subsequently entered into several amendments to the revolving facility, mainly to extend the maturity date of the revolving facility, to broaden the security interest of Associated Bank to collateralize all assets of the Company, and to establish or modify certain covenants with which the Company must comply under the terms of the amended revolving facility. | |
On June 15, 2014, the Company and Associated Bank entered into the most recent seventh amendment to the revolving facility, the purpose of which was to (i) extend the maturity date of the revolving facility to June 15, 2015; (ii) retain the commitment amount of Associated Bank at $12.5 million; (iii) establish minimum quarterly adjusted earnings before interest, taxes, depreciation and amortization requirements for the term of the agreement; and (iv) establish maximum quarterly cash amounts that can be contributed to the Company's defined benefit pension plan for the term of the agreement. | |
There were no amounts outstanding on the amended revolving facility, and the Company was in compliance with all covenants of the revolving facility, as amended, as of June 29, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | |||||||||
Jun. 29, 2014 | ||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||
Changes in the components of accumulated other comprehensive income (loss) for the three months ended June 29, 2014, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 472 | $ | (150,270 | ) | $ | (149,798 | ) | ||
Other comprehensive income (loss) before reclassifications | 194 | — | 194 | |||||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 1,800 | 1,800 | |||||||
Balance, end of period | $ | 666 | $ | (148,470 | ) | $ | (147,804 | ) | ||
Changes in the components of accumulated other comprehensive income (loss) for the three months ended June 30, 2013, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 684 | $ | (185,298 | ) | $ | (184,614 | ) | ||
Other comprehensive income (loss) before reclassifications | (129 | ) | — | (129 | ) | |||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 2,161 | 2,161 | |||||||
Balance, end of period | $ | 555 | $ | (183,137 | ) | $ | (182,582 | ) | ||
Changes in the components of accumulated other comprehensive income (loss) for the six months ended June 29, 2014, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 587 | $ | (152,070 | ) | $ | (151,483 | ) | ||
Other comprehensive income (loss) before reclassifications | 79 | — | 79 | |||||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 3,600 | 3,600 | |||||||
Balance, end of period | $ | 666 | $ | (148,470 | ) | $ | (147,804 | ) | ||
Changes in the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2013, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 871 | $ | (187,459 | ) | $ | (186,588 | ) | ||
Other comprehensive income (loss) before reclassifications | (316 | ) | — | (316 | ) | |||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 4,322 | 4,322 | |||||||
Balance, end of period | $ | 555 | $ | (183,137 | ) | $ | (182,582 | ) | ||
The amounts reclassified out of accumulated other comprehensive income (loss) reported in the tables above are comprised entirely of actuarial losses related to the Company's defined benefit pension plan, and are included in the computation of periodic pension expense (see Note 7 of Notes to Condensed Consolidated Financial Statements). There is no tax effect on any of the amounts included in the table above. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Magnetek, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2013, filed with the Securities and Exchange Commission (the “SEC”). In the Company's opinion, these unaudited statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial position of the Company as of June 29, 2014, and the results of its operations and cash flows for the three- and six-month periods ended June 29, 2014, and June 30, 2013. Results for the six months ended June 29, 2014, are not necessarily indicative of results that may be experienced for the full fiscal year. | |
Fiscal Year | ' |
Fiscal Year | |
The Company uses a 52 or 53 week fiscal year ending on the Sunday nearest December 31. Fiscal quarters are the 13 or 14 week periods ending on the Sunday nearest March 31, June 30, September 30, and December 31. The three- and six-month periods ended June 29, 2014 and June 30, 2013 each contained 13 weeks and 26 weeks, respectively. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 29, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
Inventories consist of the following: | ||||||||
June 29, | December 29, | |||||||
2014 | 2013 | |||||||
Raw materials and stock parts | $ | 8,407 | $ | 8,531 | ||||
Work-in-process | 1,239 | 1,344 | ||||||
Finished goods | 4,111 | 3,447 | ||||||
$ | 13,757 | $ | 13,322 | |||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 29, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share Reconciliation | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share for the three- and six-month periods ended June 29, 2014, and June 30, 2013: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 29, | June 30, | June 29, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations | $ | 2,510 | $ | 1,193 | $ | 3,708 | $ | 1,738 | |||||||||
Income (loss) from discontinued operations | (213 | ) | (28 | ) | (357 | ) | (101 | ) | |||||||||
Net income | $ | 2,297 | $ | 1,165 | $ | 3,351 | $ | 1,637 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic earnings per share | 3,267 | 3,221 | 3,265 | 3,217 | |||||||||||||
Add dilutive effect of stock based compensation | 105 | 102 | 110 | 90 | |||||||||||||
Weighted average shares - diluted earnings per share | 3,372 | 3,323 | 3,375 | 3,307 | |||||||||||||
Income (loss) per share - basic: | |||||||||||||||||
Continuing operations | $ | 0.77 | $ | 0.37 | $ | 1.14 | $ | 0.54 | |||||||||
Discontinued operations | $ | (0.07 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | (0.03 | ) | |||||
Net income per share | $ | 0.7 | $ | 0.36 | $ | 1.03 | $ | 0.51 | |||||||||
Income (loss) per share - diluted: | |||||||||||||||||
Continuing operations | $ | 0.74 | $ | 0.36 | $ | 1.1 | $ | 0.53 | |||||||||
Discontinued operations | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.11 | ) | $ | (0.03 | ) | |||||
Net income per share | $ | 0.68 | $ | 0.35 | $ | 0.99 | $ | 0.5 | |||||||||
Warranties_Tables
Warranties (Tables) | 6 Months Ended | |||||||
Jun. 29, 2014 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Changes in the warranty reserve | ' | |||||||
Changes in the warranty reserve for the six-month periods ended June 29, 2014, and June 30, 2013, are as follows: | ||||||||
Six Months Ended | ||||||||
June 29, | June 30, | |||||||
2014 | 2013 | |||||||
Balance, beginning of fiscal year | $ | 379 | $ | 370 | ||||
Changes in product warranties charged to earnings | 101 | 286 | ||||||
Use of reserve for warranty obligations | (152 | ) | (310 | ) | ||||
Balance, end of period | $ | 328 | $ | 346 | ||||
Pension_Expense_Tables
Pension Expense (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 29, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension expense related to the defined benefit pension plan | ' | ||||||||||||||||
Pension expense related to the Company’s defined benefit pension plan for the three- and six-month periods ended June 29, 2014, and June 30, 2013, follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 29, | June 30, | June 29, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest cost | $ | 2,225 | $ | 1,957 | $ | 4,450 | $ | 3,914 | |||||||||
Expected return on plan assets | (3,100 | ) | (2,558 | ) | (6,200 | ) | (5,116 | ) | |||||||||
Recognized net actuarial losses | 1,800 | 2,161 | 3,600 | 4,322 | |||||||||||||
Total net pension expense | $ | 925 | $ | 1,560 | $ | 1,850 | $ | 3,120 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | |||||||||
Jun. 29, 2014 | ||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||
Changes in the components of accumulated other comprehensive income (loss) | ' | |||||||||
Changes in the components of accumulated other comprehensive income (loss) for the three months ended June 30, 2013, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 684 | $ | (185,298 | ) | $ | (184,614 | ) | ||
Other comprehensive income (loss) before reclassifications | (129 | ) | — | (129 | ) | |||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 2,161 | 2,161 | |||||||
Balance, end of period | $ | 555 | $ | (183,137 | ) | $ | (182,582 | ) | ||
Changes in the components of accumulated other comprehensive income (loss) for the three months ended June 29, 2014, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 472 | $ | (150,270 | ) | $ | (149,798 | ) | ||
Other comprehensive income (loss) before reclassifications | 194 | — | 194 | |||||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 1,800 | 1,800 | |||||||
Balance, end of period | $ | 666 | $ | (148,470 | ) | $ | (147,804 | ) | ||
Changes in the components of accumulated other comprehensive income (loss) for the six months ended June 29, 2014, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 587 | $ | (152,070 | ) | $ | (151,483 | ) | ||
Other comprehensive income (loss) before reclassifications | 79 | — | 79 | |||||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 3,600 | 3,600 | |||||||
Balance, end of period | $ | 666 | $ | (148,470 | ) | $ | (147,804 | ) | ||
Changes in the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2013, are as follows: | ||||||||||
Defined | ||||||||||
Foreign | Benefit | |||||||||
Currency | Pension Plan | Total | ||||||||
Balance, beginning of period | $ | 871 | $ | (187,459 | ) | $ | (186,588 | ) | ||
Other comprehensive income (loss) before reclassifications | (316 | ) | — | (316 | ) | |||||
Amounts reclassified from accumulated other comprehensive | ||||||||||
income (loss) | — | 4,322 | 4,322 | |||||||
Balance, end of period | $ | 555 | $ | (183,137 | ) | $ | (182,582 | ) | ||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2014 | Jun. 30, 2013 | Jun. 29, 2014 | Jun. 30, 2013 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Operating Cycle | 'P13W | 'P13W | 'P26W | 'P26W |
Minimum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Normal Operating Cycle | ' | ' | 'P13W | ' |
Maximum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Normal Operating Cycle | ' | ' | 'P14W | ' |
Inventories_Details
Inventories (Details) (USD $) | Jun. 29, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and stock parts | $8,407 | $8,531 |
Work-in-process | 1,239 | 1,344 |
Finished goods | 4,111 | 3,447 |
Inventories | $13,757 | $13,322 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 0 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Aug. 02, 2012 | Aug. 02, 2012 | Nov. 30, 2010 | Nov. 30, 2010 | Nov. 30, 2007 | Nov. 30, 2007 | Jun. 30, 2013 |
Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Antonio Canova [Member] | Antonio Canova [Member] | Connecticut Department of Environmental Protection [Member] | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Alleged taxes owed | $9.10 | € 6.70 | $2.60 | € 1.90 | ' | ' | ' |
Alleged taxes owed including penalties and interest | 3.8 | 2.8 | 3.5 | 2.6 | ' | ' | ' |
Asserted claims for damages | ' | ' | ' | ' | 4.8 | 3.5 | ' |
Liabilitiy recorded | ' | ' | ' | ' | ' | ' | $0.40 |
Earnings_Loss_Per_Share_Reconc
Earnings (Loss) Per Share - Reconciliation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 29, 2014 | Jun. 30, 2013 | Jun. 29, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Income from continuing operations | $2,510 | $1,193 | $3,708 | $1,738 |
Income (loss) from discontinued operations | -213 | -28 | -357 | -101 |
Net income | $2,297 | $1,165 | $3,351 | $1,637 |
Denominator: | ' | ' | ' | ' |
Weighted average shares - basic earnings per share | 3,267 | 3,221 | 3,265 | 3,217 |
Add dilutive effective of stock based compensation | 105 | 102 | 110 | 90 |
Weighted average shares - diluted earnings per share | 3,372 | 3,323 | 3,375 | 3,307 |
Income (loss) per share - basic: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.77 | $0.37 | $1.14 | $0.54 |
Discontinued operations (in dollars per share) | ($0.07) | ($0.01) | ($0.11) | ($0.03) |
Net income per common share (in dollars per share) | $0.70 | $0.36 | $1.03 | $0.51 |
Income (loss) per share - diluted: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.74 | $0.36 | $1.10 | $0.53 |
Discontinued operations (in dollars per share) | ($0.06) | ($0.01) | ($0.11) | ($0.03) |
Net income per common share (in dollars per share) | $0.68 | $0.35 | $0.99 | $0.50 |
Earnings_Loss_Per_Share_Antidi
Earnings (Loss) Per Share - Antidilutive Securities (Details) (Stock Options) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 29, 2014 | Jun. 30, 2013 |
Stock Options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Outstanding options not included in the Company’s computation of weighted average shares for diluted earnings per share because the effect would have been anti-dilutive | 74 | 105 |
Warranties_Details
Warranties (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Jun. 29, 2014 | Jun. 30, 2013 |
Product Warranties Disclosures [Abstract] | ' | ' | ' |
Warranty term, minimum | '1 year | ' | ' |
Warranty term, maximum | '2 years | ' | ' |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Balance, beginning of fiscal year | $379 | $379 | $370 |
Changes in product warranties charged to earnings | ' | 101 | 286 |
Use of reserve for warranty obligations | ' | -152 | -310 |
Balance, end of period | ' | $328 | $346 |
Pension_Expense_Details
Pension Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2014 | Jun. 30, 2013 | Jun. 29, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Pension contributions | ' | ' | $4,102,000 | $8,283,000 |
Pension [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Estimated Future Employer Contributions, Net Present Value | ' | ' | 11,200,000 | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Interest cost | 2,225,000 | 1,957,000 | 4,450,000 | 3,914,000 |
Expected return on plan assets | -3,100,000 | -2,558,000 | -6,200,000 | -5,116,000 |
Recognized net actuarial losses | 1,800,000 | 2,161,000 | 3,600,000 | 4,322,000 |
Total net pension expense | $925,000 | $1,560,000 | $1,850,000 | $3,120,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 29, 2014 | Mar. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
The Company’s provision for income taxes includes deferred income tax expense related to the increase in the Company’s deferred tax liability resulting from the tax-deductible amortization of goodwill | $240 | $480 | $231 | $461 |
Bank_Borrowing_Arrangements_De
Bank Borrowing Arrangements (Details) (Revolving Credit Facility [Member], USD $) | 1 Months Ended | ||
Nov. 30, 2007 | Jun. 29, 2014 | Dec. 31, 2011 | |
Revolving Credit Facility [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Borrowing capacity on revolving credit facility | $10,000,000 | ' | $12,500,000 |
Description of variable rate basis | 'LIBOR | ' | ' |
Basis spread on variable rate | 1.50% | ' | ' |
Amount outstanding | ' | $0 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 29, 2014 | Jun. 30, 2013 | Jun. 29, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Balance, beginning of period | ($149,798) | ($184,614) | ($151,483) | ($186,588) |
Other comprehensive income (loss) before reclassifications | 194 | -129 | 79 | -316 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,800 | 2,161 | 3,600 | 4,322 |
Balance, end of period | -147,804 | -182,582 | -147,804 | -182,582 |
Foreign Currency [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Balance, beginning of period | 472 | 684 | 587 | 871 |
Other comprehensive income (loss) before reclassifications | 194 | -129 | 79 | -316 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Balance, end of period | 666 | 555 | 666 | 555 |
Defined Benefit Pension Plan [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Balance, beginning of period | -150,270 | -185,298 | -152,070 | -187,459 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,800 | 2,161 | 3,600 | 4,322 |
Balance, end of period | ($148,470) | ($183,137) | ($148,470) | ($183,137) |