Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 13, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'P&F INDUSTRIES INC | ' |
Entity Central Index Key | '0000075340 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'PFIN | ' |
Entity Common Stock, Shares Outstanding | ' | 3,693,969 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash | $475,000 | $695,000 |
Accounts receivable - net | 12,055,000 | 6,675,000 |
Inventories - net | 23,146,000 | 24,073,000 |
Deferred income taxes - net | 1,139,000 | 1,139,000 |
Prepaid expenses and other current assets | 839,000 | 547,000 |
TOTAL CURRENT ASSETS | 37,654,000 | 33,129,000 |
PROPERTY AND EQUIPMENT | ' | ' |
Land | 1,550,000 | 1,550,000 |
Buildings and improvements | 7,608,000 | 7,536,000 |
Machinery and equipment | 18,366,000 | 18,010,000 |
Property plant and equipment gross | 27,524,000 | 27,096,000 |
Less accumulated depreciation and amortization | 17,170,000 | 15,994,000 |
NET PROPERTY AND EQUIPMENT | 10,354,000 | 11,102,000 |
GOODWILL | 5,150,000 | 5,150,000 |
OTHER INTANGIBLE ASSETS - net | 1,560,000 | 1,752,000 |
DEFERRED INCOME TAXES - net | 2,113,000 | 3,211,000 |
OTHER ASSETS - net | 694,000 | 813,000 |
TOTAL ASSETS | 57,525,000 | 55,157,000 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' |
Short-term borrowings | 2,290,000 | 2,793,000 |
Accounts payable | 4,934,000 | 4,843,000 |
Accrued liabilities | 4,847,000 | 4,332,000 |
Current maturities of long-term debt | 460,000 | 460,000 |
TOTAL CURRENT LIABILITIES | 12,531,000 | 12,428,000 |
Long-term debt, less current maturities | 7,018,000 | 7,363,000 |
Other liabilities | 266,000 | 278,000 |
TOTAL LIABILITIES | 19,815,000 | 20,069,000 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS’ EQUITY | ' | ' |
Preferred stock - $10 par; authorized - 2,000,000 shares; no shares issued | 0 | 0 |
Additional paid-in capital | 11,697,000 | 11,384,000 |
Retained earnings | 24,952,000 | 22,646,000 |
Treasury stock, at cost - 344,000 shares at September 30, 2013 and 342,000 shares at December 31, 2012 | -2,977,000 | -2,955,000 |
TOTAL SHAREHOLDERS’ EQUITY | 37,710,000 | 35,088,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 57,525,000 | 55,157,000 |
Common Class A [Member] | ' | ' |
SHAREHOLDERS’ EQUITY | ' | ' |
Common stock | 4,038,000 | 4,013,000 |
Common Class B [Member] | ' | ' |
SHAREHOLDERS’ EQUITY | ' | ' |
Common stock | $0 | $0 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS [Parenthetical] (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred stock, par value (in dollars per share) | $10 | $10 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 344,000 | 342,000 |
Common Class A [Member] | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 7,000,000 | 7,000,000 |
Common stock, shares issued | 4,038,000 | 4,013,000 |
Common Class B [Member] | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 0 | 0 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net revenue | $20,483,000 | $17,622,000 | $60,668,000 | $47,180,000 |
Cost of sales | 13,428,000 | 11,585,000 | 38,777,000 | 29,855,000 |
Gross profit | 7,055,000 | 6,037,000 | 21,891,000 | 17,325,000 |
Selling, general and administrative expenses | 5,680,000 | 4,646,000 | 17,892,000 | 14,107,000 |
Operating income | 1,375,000 | 1,391,000 | 3,999,000 | 3,218,000 |
Interest expense | 94,000 | 126,000 | 321,000 | 401,000 |
Income before income taxes | 1,281,000 | 1,265,000 | 3,678,000 | 2,817,000 |
Income tax expense (benefit) | 471,000 | -2,302,000 | 1,372,000 | -2,252,000 |
Net income | $810,000 | $3,567,000 | $2,306,000 | $5,069,000 |
Basic earnings per share (in dollars per share) | $0.22 | $0.98 | $0.63 | $1.40 |
Diluted earnings per share (in dollars per share) | $0.20 | $0.95 | $0.59 | $1.36 |
Average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 3,694,000 | 3,662,000 | 3,684,000 | 3,632,000 |
Diluted (in shares) | 3,912,000 | 3,804,000 | 3,888,000 | 3,727,000 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Class A [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2012 | $35,088,000 | $4,013,000 | $11,384,000 | $22,646,000 | ($2,955,000) |
Balance (in shares) at Dec. 31, 2012 | ' | 4,013,000 | ' | ' | -342,000 |
Net income | 2,306,000 | 0 | 0 | 2,306,000 | 0 |
Exercise of stock options | 62,000 | 22,000 | 62,000 | 0 | -22,000 |
Exercise of stock options (in shares) | 22,000 | 22,000 | ' | ' | -2,000 |
Restricted stock issuance | 9,000 | 3,000 | 6,000 | 0 | 0 |
Restricted stock issuance (in shares) | ' | 3,000 | ' | ' | 0 |
Stock-based compensation | 245,000 | 0 | 245,000 | 0 | 0 |
Balance at Sep. 30, 2013 | $37,710,000 | $4,038,000 | $11,697,000 | $24,952,000 | ($2,977,000) |
Balance (in shares) at Sep. 30, 2013 | ' | 4,038,000 | ' | ' | -344,000 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net income | $2,306,000 | $5,069,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,176,000 | 1,235,000 |
Amortization of other intangible assets | 192,000 | 298,000 |
Amortization of other assets | 75,000 | 214,000 |
Provision for losses on accounts receivable | 46,000 | 12,000 |
Stock-based compensation | 245,000 | 139,000 |
Restricted stock-based compensation | 30,000 | 0 |
Loss on sale of fixed assets | 0 | 2,000 |
Deferred income taxes-net | 1,098,000 | -2,358,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -5,426,000 | -4,724,000 |
Inventories | 927,000 | -164,000 |
Prepaid expenses and other current assets | -313,000 | -180,000 |
Other assets | 44,000 | -60,000 |
Accounts payable | 91,000 | 1,398,000 |
Accrued liabilities | 515,000 | 987,000 |
Other liabilities | -12,000 | -10,000 |
Total adjustments | -1,312,000 | -3,211,000 |
Net cash provided by operating activities | 994,000 | 1,858,000 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -428,000 | -1,736,000 |
Purchase of product license | 0 | -200,000 |
Proceeds from disposal of assets | 0 | 8,000 |
Net cash used in investing activities | -428,000 | -1,928,000 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 62,000 | 304,000 |
Proceeds from short-term borrowings | 49,408,000 | 40,043,000 |
Repayments of short-term borrowings | -49,911,000 | -40,088,000 |
Repayment of notes payable | 0 | -250,000 |
Proceeds from term loan | 0 | 900,000 |
Repayments of term loan | -345,000 | -970,000 |
Net cash used in financing activities | -786,000 | -61,000 |
Net decrease in cash | -220,000 | -131,000 |
Cash at beginning of period | 695,000 | 443,000 |
Cash at end of period | 475,000 | 312,000 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest | 329,000 | 414,000 |
Income taxes | $46,000 | $161,000 |
SUMMARY_OF_ACCOUNTING_POLICIES
SUMMARY OF ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 1 - SUMMARY OF ACCOUNTING POLICIES | |
Basis of Financial Statement Presentation | |
The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company, as defined below, these unaudited consolidated condensed financial statements include all adjustments necessary to present fairly the information set forth therein. All such adjustments are of a normal recurring nature. Results for interim periods are not necessarily indicative of results to be expected for a full year. | |
The unaudited consolidated condensed balance sheet information as of December 31, 2012 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The interim financial statements contained herein should be read in conjunction with that Report. | |
Principles of Consolidation | |
The unaudited consolidated condensed financial statements contained herein include the accounts of P&F Industries, Inc. and its subsidiaries, (“P&F” or the “Company”). All significant intercompany balances and transactions have been eliminated. Certain amounts in the financial statements and related footnotes have been reclassified to conform to classifications used in the current year. | |
The Company | |
The Company operates in two primary lines of business, or segments: (i) tools and other products (“Tools”) and (ii) hardware and accessories (“Hardware”). | |
Tools | |
The Company conducts its Tools business through a wholly-owned subsidiary, Continental Tool Group, Inc. (“Continental”), which in turn currently operates through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation (“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”). | |
Florida Pneumatic is engaged in the importation and sale of pneumatic hand tools, primarily for the retail, industrial and automotive markets, and the importation and sale of compressor air filters. Florida Pneumatic also markets, through its Berkley Tool division (“Berkley”), a line of pipe cutting and threading tools, wrenches and replacement electrical components for a widely-used brand of pipe cutting and threading machines. | |
Hy-Tech manufacturers and distributes its own line of industrial pneumatic tools. Hy-Tech also produces over ninety types of tools, which includes impact wrenches, grinders, drills, and motors. Further, it also manufactures tools to customer unique specifications. Its customers include refineries, chemical plants and power generation facilities, as well as, heavy construction, oil and mining companies. In addition, Hy-Tech manufactures an extensive line of pneumatic tool replacement parts that are sold competitively to the original equipment manufacturer. It also manufactures and distributes high pressure stoppers for hydrostatic testing of fabricated pipe, as well as produces a line of siphons. | |
Hardware | |
The Company conducts its Hardware business through a wholly-owned subsidiary, Countrywide Hardware Inc. (“Countrywide”). Countrywide conducts its business operations through its wholly-owned subsidiary, Nationwide Industries, Inc. (“Nationwide”). Nationwide is a developer, importer, and manufacturer of fencing hardware, patio products, and door and window accessories including rollers, hinges, window operators, sash locks, custom zinc castings and door closers. Additionally, Nationwide also markets a line of kitchen and bath fixtures. | |
Former Stair Parts Business | |
In September 2010, PNC National Association, the primary lender and source of credit to WM Coffman LLC (now known as Old Stairs Co (“WMC”)) foreclosed upon the assets of WMC, a subsidiary of Countrywide that formerly operated as a stair parts business. As a result of PNC’s foreclosure, WMC ceased operations. The Company no longer includes WMC in its consolidated financial statements. See Note 2 below for further discussion. | |
Management Estimates | |
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. | |
VARIABLE_INTEREST_ENTITY_DECON
VARIABLE INTEREST ENTITY - DECONSOLIDATION | 9 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entity Disclosure [Abstract] | ' |
Variable Interest Entity Disclosure [Text Block] | ' |
NOTE 2 — VARIABLE INTEREST ENTITY - DECONSOLIDATION | |
The Company examined the facts and circumstances pertaining to WMC to determine if it is the primary beneficiary. The Company determined that it no longer had the obligation to absorb losses that might be significant to WMC nor did it possess the right to receive benefits from WMC that could potentially be significant to WMC. As the Company no longer had a controlling financial interest in WMC and was no longer the primary beneficiary of WMC, in accordance with Accounting Standards Codification 810, it deconsolidated WMC. | |
The Company continues not to direct any activities at WMC, and continues to have no obligation to absorb any losses or the right to receive any benefits from WMC. Accordingly, the Company continues to deconsolidate WMC. The Company will perform an ongoing reassessment of the facts and circumstances pertaining to WMC to determine whether or not the Company may become the primary beneficiary. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||
NOTE 3 – EARNINGS PER SHARE | ||||||||||||||
Basic earnings per common share is based only on the average number of shares of common stock outstanding for the periods. Diluted earnings per common share reflects the effect of shares of common stock issuable upon the exercise of options, unless the effect on earnings is antidilutive. | ||||||||||||||
Diluted earnings per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of common stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of the Company’s Class A Common Stock. The average market value for the period is used as the assumed purchase price. | ||||||||||||||
The following table sets forth the elements of basic and diluted earnings per common share: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted earnings per common share: | ||||||||||||||
Net income | $ | 810,000 | $ | 3,567,000 | $ | 2,306,000 | $ | 5,069,000 | ||||||
Denominator: | ||||||||||||||
For basic earnings per share - weighted average common | 3,694,000 | 3,662,000 | 3,684,000 | 3,632,000 | ||||||||||
shares outstanding | ||||||||||||||
Dilutive securities (1) | 218,000 | 142,000 | 204,000 | 95,000 | ||||||||||
For diluted earnings per share - weighted average common | 3,912,000 | 3,804,000 | 3,888,000 | 3,727,000 | ||||||||||
shares outstanding | ||||||||||||||
-1 | Dilutive securities consist of “in the money” options. | |||||||||||||
At September 30, 2013 and 2012 and during the nine-month periods then ended, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying Class A Common Stock for the period. These options are antidilutive and are excluded from the computation of earnings per share. The weighted average antidilutive stock options outstanding were as follows: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted average antidilutive stock options outstanding | 296,000 | 230,000 | 236,000 | 421,000 | ||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||
NOTE 4 – STOCK-BASED COMPENSATION | ||||||||||||
Stock-option compensation | ||||||||||||
The Company accounts for stock-based compensation, including options and non-vested shares, according to the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, “Share Based Payment.” | ||||||||||||
Stock-option compensation expense is attributable to the granting of, and the remaining requisite service periods of, stock options. Compensation expense attributable to stock-options was approximately $94,000 and $52,000, respectively, during the three-month periods ended September 30, 2013 and 2012. Compensation expense attributable to stock-options was approximately $245,000 and $139,000, respectively, during the nine-month periods ended September 30, 2013 and 2012. The compensation expense is recognized in selling, general and administrative expenses on the Company’s statements of income on a straight-line basis over the vesting periods. The exercisability of the respective non-vested options, which are at pre-determined dates on a calendar year, does not necessarily correspond to the period(s) in which straight-line amortization of compensation cost is recorded. As of September 30, 2013, the Company had approximately $415,000 of total unrecognized compensation cost related to non-vested awards granted under its stock-based plans, which it expects to recognize over a weighted-average period of 1.2 years. | ||||||||||||
The expected term of stock options is based on historical exercises and terminations. The volatility is determined using historical volatilities based on historical stock prices. The dividend yield is 0 %, as the Company has historically not declared dividends and does not have any current plans to declare any in the future. | ||||||||||||
The following is a summary of the changes in outstanding options during the nine-month period ended September 30, 2013: | ||||||||||||
Weighted | Weighted Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual Life | Intrinsic | ||||||||||
Option Shares | Price | (Years) | Value | |||||||||
Outstanding, January 1, 2013 | 584,688 | $ | 6.48 | 5.4 | $ | 758,000 | ||||||
Granted | 71,500 | 8.21 | ||||||||||
Exercised | -22,000 | 3.8 | ||||||||||
Forfeited | — | |||||||||||
Expired | — | |||||||||||
Outstanding, September 30, 2013 | 634,188 | $ | 6.77 | 5.1 | $ | 1,181,900 | ||||||
Vested, September 30, 2013 | 489,355 | $ | 6.94 | 4.1 | $ | 929,002 | ||||||
The following is a summary of changes in non-vested shares for the nine months ended September 30, 2013: | ||||||||||||
Weighted Average Grant- | ||||||||||||
Option Shares | Date Fair Value | |||||||||||
Non-vested shares, January 1, 2013 | 141,000 | $ | 2.94 | |||||||||
Granted | 71,500 | 6.72 | ||||||||||
Vested | -67,667 | 2.92 | ||||||||||
Forfeited | — | — | ||||||||||
Non-vested shares and expected to vest, September 30, 2013 | 144,833 | $ | 4.81 | |||||||||
The number of shares of Common Stock available for issuance under the 2012 Stock Incentive Plan as of September 30, 2013 was 199,512. At September 30, 2013, there were 113,500 options outstanding issued under the 2012 Stock Incentive Plan and 520,688 options outstanding issued under the 2002 Stock Incentive Plan. | ||||||||||||
Restricted Stock | ||||||||||||
On May 28, 2013, the Company granted 666 restricted shares of its common stock to each non-employee member of its Board of Directors totaling 3,330 restricted shares. These restricted shares cannot be traded earlier than the first anniversary of the grant date. The Company determined the fair value of these shares to be $ 8.95, which was the closing price of the Company’s Common Stock on the date of the grant. The Company will recognize non-cash compensation expense of approximately $ 2,500 per month in its selling, general and administrative expenses through May 2014. | ||||||||||||
Treasury Stock | ||||||||||||
On January 31, 2013, the Company received 2,585 shares of its Class A Common Stock, tendered as payment for the exercise by an employee of options to purchase 5,500 shares of Class A Common Stock. The value of this stock, based on the then-current stock price, was approximately $22,000, and the Company recorded the transaction as an increase in Treasury Stock. | ||||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
NOTE 5 – RECENT ACCOUNTING PRONOUNCEMENTS | |
Management does not believe that any other recently issued, but not yet effective accounting standards, if currently adopted, would have a material effect on our consolidated condensed financial statements. | |
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||
NOTE 6 – ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | ||||||||
Accounts receivable - net consists of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Accounts receivable | $ | 12,379,000 | $ | 6,953,000 | ||||
Allowance for doubtful accounts | -324,000 | -278,000 | ||||||
$ | 12,055,000 | $ | 6,675,000 | |||||
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
NOTE 7 – INVENTORIES | ||||||||
Inventories - net consists of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 1,979,000 | $ | 2,093,000 | ||||
Work in process | 556,000 | 888,000 | ||||||
Finished goods | 23,045,000 | 23,357,000 | ||||||
25,580,000 | 26,338,000 | |||||||
Reserve for obsolete and slow-moving inventories | -2,434,000 | -2,265,000 | ||||||
$ | 23,146,000 | $ | 24,073,000 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||
During the nine-month period ended September 30, 2013 there was no change to the carrying value of goodwill. | ||||||||||||||||||||
Other intangible assets were as follows: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Accumulated | Net book | Accumulated | Net book | |||||||||||||||||
Cost | amortization | value | Cost | amortization | value | |||||||||||||||
Other intangible assets: | ||||||||||||||||||||
Customer relationships | $ | 5,070,000 | $ | 4,047,000 | $ | 1,023,000 | $ | 5,070,000 | $ | 3,906,000 | $ | 1,164,000 | ||||||||
Trademarks | 199,000 | — | 199,000 | 199,000 | — | 199,000 | ||||||||||||||
Drawings | 290,000 | 93,000 | 197,000 | 290,000 | 85,000 | 205,000 | ||||||||||||||
Licensing | 305,000 | 164,000 | 141,000 | 305,000 | 121,000 | 184,000 | ||||||||||||||
Totals | $ | 5,864,000 | $ | 4,304,000 | $ | 1,560,000 | $ | 5,864,000 | $ | 4,112,000 | $ | 1,752,000 | ||||||||
Amortization expense for intangible assets subject to amortization was as follows: | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
$ | 58,000 | $ | 99,000 | $ | 192,000 | $ | 298,000 | |||||||||||||
Amortization expense for each of the twelve-month periods ending September 30, 2014 through September 30, 2018 is estimated to be as follows: 2014 - $233,000; 2015 - $233,000; 2016 - $201,000; 2017 - $175,000 and 2018 - $175,000. The weighted average amortization period for intangible assets was 7.0 years at September 30, 2013 and 7.5 years at December 31, 2012. | ||||||||||||||||||||
DEBT
DEBT | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
NOTE 9 – DEBT | ||||||||
P&F, along with Florida Pneumatic, Hy-Tech and Nationwide, as borrowers, entered into a Loan and Security Agreement in October 2010, as amended (“Credit Agreement”), with Capital One Leverage Finance Corporation, as agent (“COLF”). The Credit Agreement expires December 19, 2017, (the “Maturity Date”), and has a maximum borrowing limit of $29,453,000. The Credit Agreement provides for a Revolver Loan (“Revolver”) with a maximum borrowing of $ 20,000,000. Direct borrowings under the Revolver are secured by the Company’s accounts receivable, mortgages on its real property located in Cranberry, PA, Jupiter, FL and Tampa, FL (“Real Property”), inventory and equipment, and are cross-guaranteed by certain of our subsidiaries (the “Subsidiary Guarantors”). Revolver borrowings bear interest at either LIBOR (London InterBank Offered Rate) or the Base Rate, as defined in the Credit Agreement (“Base Rate”), plus the Applicable Margin (the “Applicable Margin”), as defined in the Credit Agreement. The Applicable Margin on Revolver borrowings is determined based upon the computation of total debt divided by earnings before interest, taxes, depreciation and amortization (“EBITDA”). The interest rate, either LIBOR or Base Rate, which is added to the Applicable Margin, is at the option of the Company, subject to limitations on the number of LIBOR borrowings. | ||||||||
The balance of Revolver borrowings outstanding was $2,290,000 at September 30, 2013 and $2,793,000 at December 31, 2012. Applicable Margins added to Revolver borrowings at LIBOR and the Base Rate at September 30, 2013 were 2.25 % and 1.25 %, respectively, and 2.00 % and 1.00 %, respectively, at December 31, 2012. | ||||||||
The Company is required to provide, among other things, monthly financial statements, monthly borrowing base certificates and certificates of compliance with various financial covenants. The Company is in compliance with all covenants. As part of the Credit Agreement, if an event of default occurs, the interest rate would increase by two percent per annum during the period of default. | ||||||||
The Credit Agreement also provides for a $7,000,000 Term Loan (the “Term Loan”), which is secured by mortgages on the Real Property, accounts receivable, inventory and equipment. The balance due on the Term Loan at September 30, 2013 and December 31, 2012 was $6,790,000 and $7,000,000, respectively. The Term Loan is repaid $23,000 each month, with the remaining balance due at the Maturity Date. Term Loan borrowings incur interest at LIBOR or the Base Rate plus the Applicable Margins, which were 3.00 % and 2.00 %, respectively, at September 30, 2013 and December 31, 2012. | ||||||||
Additionally, the Company borrowed $380,000 and $519,000 in March 2012 and September 2012, respectively, as loans primarily for machinery and equipment (“Capex Term Loans”). The repayment of these two loans is based on sixty-month amortization periods, resulting in repayments of $6,000 and $9,000, respectively. Applicable Margins added to these Capex Term Loans at both September 30, 2013 and December 31, 2012 were 3.00 % and 2.00 %, for borrowings at LIBOR and the Base Rate, respectively. | ||||||||
Long-term debt consists of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Term loan - $23,000 payable monthly January 1, 2013 through December 1, 2017, balance due December 19, 2017. (NOTE: in 2012, monthly payment was $34,000.) | $ | 6,790,000 | $ | 7,000,000 | ||||
Capex Term Loan - $6,000 payable monthly May 1, 2012 through April 1, 2017. | 273,000 | 330,000 | ||||||
Capex Term Loan - $9,000 payable monthly October 1, 2012 through September 1, 2017. | 415,000 | 493,000 | ||||||
7,478,000 | 7,823,000 | |||||||
Less current maturities | 460,000 | 460,000 | ||||||
$ | 7,018,000 | $ | 7,363,000 | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 10 – RELATED PARTY TRANSACTIONS | |
The president of one of the Company’s subsidiaries is part owner of one of that subsidiary’s vendors. During the three and nine-month periods ended September 30, 2013, the Company purchased approximately $120,000 and $622,000, respectively, of product from this vendor. During the three and nine-month periods ended September 30, 2012, the Company purchased approximately $265,000 and $735,000, respectively, of product from this vendor. At September 30, 2013 and 2012, the Company owed this vendor $49,000 and $48,000, respectively. All such purchases were made at arms-length. | |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Segment Reporting [Abstract] | ' | ||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||
NOTE 11 – BUSINESS SEGMENTS | |||||||||||
P&F operates in two primary lines of business, Tools and Hardware. For reporting purposes, Florida Pneumatic and Hy-Tech are combined in the Tools segment, while Nationwide is currently the only subsidiary in the Hardware segment. The Company evaluates segment performance based primarily on segment operating income. The accounting policies of each of the segments are the same as those referred to in Note 1. | |||||||||||
Three months ended September 30, 2013 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 20,483,000 | $ | 14,776,000 | $ | 5,707,000 | |||||
Segment operating income | $ | 2,903,000 | $ | 1,938,000 | $ | 965,000 | |||||
General corporate expense | -1,528,000 | ||||||||||
Interest expense – net | -94,000 | ||||||||||
Earnings before income taxes | $ | 1,281,000 | |||||||||
Segment assets | $ | 53,647,000 | $ | 42,080,000 | $ | 11,567,000 | |||||
Corporate assets | 3,878,000 | ||||||||||
Total assets | $ | 57,525,000 | |||||||||
Long-lived assets, including $11,000 at corporate | $ | 17,064,000 | $ | 12,604,000 | $ | 4,449,000 | |||||
Three months ended September 30, 2012 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 17,622,000 | $ | 13,327,000 | $ | 4,295,000 | |||||
Segment operating income | $ | 2,701,000 | $ | 1,995,000 | $ | 706,000 | |||||
General corporate expense | -1,310,000 | ||||||||||
Interest expense – net | -126,000 | ||||||||||
Earnings before income taxes | $ | 1,265,000 | |||||||||
Segment assets | $ | 49,167,000 | $ | 37,700,000 | $ | 11,467,000 | |||||
Corporate assets | 4,941,000 | ||||||||||
Total assets | $ | 54,108,000 | |||||||||
Long-lived assets, including $34, 000 at corporate | $ | 18,258,000 | $ | 13,631,000 | $ | 4,593,000 | |||||
Nine months ended September 30, 2013 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 60,668,000 | $ | 43,625,000 | $ | 17,043,000 | |||||
Segment operating income | $ | 8,395,000 | $ | 5,392,000 | $ | 3,003,000 | |||||
General corporate expense | -4,396,000 | ||||||||||
Interest expense – net | -321,000 | ||||||||||
Earnings before income taxes | $ | 3,678,000 | |||||||||
Nine months ended September 30, 2012 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 47,180,000 | $ | 32,672,000 | $ | 14,508,000 | |||||
Segment operating income | $ | 7,543,000 | $ | 5,027,000 | $ | 2,516,000 | |||||
General corporate expense | -4,325,000 | ||||||||||
Interest expense – net | -401,000 | ||||||||||
Earnings before income taxes | $ | 2,817,000 | |||||||||
SUMMARY_OF_ACCOUNTING_POLICIES1
SUMMARY OF ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Financial Statement Presentation | |
The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company, as defined below, these unaudited consolidated condensed financial statements include all adjustments necessary to present fairly the information set forth therein. All such adjustments are of a normal recurring nature. Results for interim periods are not necessarily indicative of results to be expected for a full year. | |
The unaudited consolidated condensed balance sheet information as of December 31, 2012 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The interim financial statements contained herein should be read in conjunction with that Report. | |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation | |
The unaudited consolidated condensed financial statements contained herein include the accounts of P&F Industries, Inc. and its subsidiaries, (“P&F” or the “Company”). All significant intercompany balances and transactions have been eliminated. Certain amounts in the financial statements and related footnotes have been reclassified to conform to classifications used in the current year. | |
The Company | |
The Company operates in two primary lines of business, or segments: (i) tools and other products (“Tools”) and (ii) hardware and accessories (“Hardware”). | |
Tools | |
The Company conducts its Tools business through a wholly-owned subsidiary, Continental Tool Group, Inc. (“Continental”), which in turn currently operates through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation (“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”). | |
Florida Pneumatic is engaged in the importation and sale of pneumatic hand tools, primarily for the retail, industrial and automotive markets, and the importation and sale of compressor air filters. Florida Pneumatic also markets, through its Berkley Tool division (“Berkley”), a line of pipe cutting and threading tools, wrenches and replacement electrical components for a widely-used brand of pipe cutting and threading machines. | |
Hy-Tech manufacturers and distributes its own line of industrial pneumatic tools. Hy-Tech also produces over ninety types of tools, which includes impact wrenches, grinders, drills, and motors. Further, it also manufactures tools to customer unique specifications. Its customers include refineries, chemical plants and power generation facilities, as well as, heavy construction, oil and mining companies. In addition, Hy-Tech manufactures an extensive line of pneumatic tool replacement parts that are sold competitively to the original equipment manufacturer. It also manufactures and distributes high pressure stoppers for hydrostatic testing of fabricated pipe, as well as produces a line of siphons. | |
Hardware | |
The Company conducts its Hardware business through a wholly-owned subsidiary, Countrywide Hardware Inc. (“Countrywide”). Countrywide conducts its business operations through its wholly-owned subsidiary, Nationwide Industries, Inc. (“Nationwide”). Nationwide is a developer, importer, and manufacturer of fencing hardware, patio products, and door and window accessories including rollers, hinges, window operators, sash locks, custom zinc castings and door closers. Additionally, Nationwide also markets a line of kitchen and bath fixtures. | |
Former Stair Parts Business | |
In September 2010, PNC National Association, the primary lender and source of credit to WM Coffman LLC (now known as Old Stairs Co (“WMC”)) foreclosed upon the assets of WMC, a subsidiary of Countrywide that formerly operated as a stair parts business. As a result of PNC’s foreclosure, WMC ceased operations. The Company no longer includes WMC in its consolidated financial statements. See Note 2 below for further discussion. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Management Estimates | |
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. | |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||
The following table sets forth the elements of basic and diluted earnings per common share: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted earnings per common share: | ||||||||||||||
Net income | $ | 810,000 | $ | 3,567,000 | $ | 2,306,000 | $ | 5,069,000 | ||||||
Denominator: | ||||||||||||||
For basic earnings per share - weighted average common | 3,694,000 | 3,662,000 | 3,684,000 | 3,632,000 | ||||||||||
shares outstanding | ||||||||||||||
Dilutive securities (1) | 218,000 | 142,000 | 204,000 | 95,000 | ||||||||||
For diluted earnings per share - weighted average common | 3,912,000 | 3,804,000 | 3,888,000 | 3,727,000 | ||||||||||
shares outstanding | ||||||||||||||
-1 | Dilutive securities consist of “in the money” options. | |||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | |||||||||||||
At September 30, 2013 and 2012 and during the nine-month periods then ended, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying Class A Common Stock for the period. These options are antidilutive and are excluded from the computation of earnings per share. The weighted average antidilutive stock options outstanding were as follows: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted average antidilutive stock options outstanding | 296,000 | 230,000 | 236,000 | 421,000 | ||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
The following is a summary of the changes in outstanding options during the nine-month period ended September 30, 2013: | ||||||||||||
Weighted | Weighted Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual Life | Intrinsic | ||||||||||
Option Shares | Price | (Years) | Value | |||||||||
Outstanding, January 1, 2013 | 584,688 | $ | 6.48 | 5.4 | $ | 758,000 | ||||||
Granted | 71,500 | 8.21 | ||||||||||
Exercised | -22,000 | 3.8 | ||||||||||
Forfeited | — | |||||||||||
Expired | — | |||||||||||
Outstanding, September 30, 2013 | 634,188 | $ | 6.77 | 5.1 | $ | 1,181,900 | ||||||
Vested, September 30, 2013 | 489,355 | $ | 6.94 | 4.1 | $ | 929,002 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | ' | |||||||||||
The following is a summary of changes in non-vested shares for the nine months ended September 30, 2013: | ||||||||||||
Weighted Average Grant- | ||||||||||||
Option Shares | Date Fair Value | |||||||||||
Non-vested shares, January 1, 2013 | 141,000 | $ | 2.94 | |||||||||
Granted | 71,500 | 6.72 | ||||||||||
Vested | -67,667 | 2.92 | ||||||||||
Forfeited | — | — | ||||||||||
Non-vested shares and expected to vest, September 30, 2013 | 144,833 | $ | 4.81 | |||||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts receivable - net consists of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Accounts receivable | $ | 12,379,000 | $ | 6,953,000 | ||||
Allowance for doubtful accounts | -324,000 | -278,000 | ||||||
$ | 12,055,000 | $ | 6,675,000 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories - net consists of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 1,979,000 | $ | 2,093,000 | ||||
Work in process | 556,000 | 888,000 | ||||||
Finished goods | 23,045,000 | 23,357,000 | ||||||
25,580,000 | 26,338,000 | |||||||
Reserve for obsolete and slow-moving inventories | -2,434,000 | -2,265,000 | ||||||
$ | 23,146,000 | $ | 24,073,000 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||||||||||||||
During the nine-month period ended September 30, 2013 there was no change to the carrying value of goodwill. | ||||||||||||||||||||
Other intangible assets were as follows: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Accumulated | Net book | Accumulated | Net book | |||||||||||||||||
Cost | amortization | value | Cost | amortization | value | |||||||||||||||
Other intangible assets: | ||||||||||||||||||||
Customer relationships | $ | 5,070,000 | $ | 4,047,000 | $ | 1,023,000 | $ | 5,070,000 | $ | 3,906,000 | $ | 1,164,000 | ||||||||
Trademarks | 199,000 | — | 199,000 | 199,000 | — | 199,000 | ||||||||||||||
Drawings | 290,000 | 93,000 | 197,000 | 290,000 | 85,000 | 205,000 | ||||||||||||||
Licensing | 305,000 | 164,000 | 141,000 | 305,000 | 121,000 | 184,000 | ||||||||||||||
Totals | $ | 5,864,000 | $ | 4,304,000 | $ | 1,560,000 | $ | 5,864,000 | $ | 4,112,000 | $ | 1,752,000 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||||||||
Amortization expense for intangible assets subject to amortization was as follows: | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
$ | 58,000 | $ | 99,000 | $ | 192,000 | $ | 298,000 | |||||||||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Long-term debt consists of: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Term loan - $23,000 payable monthly January 1, 2013 through December 1, 2017, balance due December 19, 2017. (NOTE: in 2012, monthly payment was $34,000.) | $ | 6,790,000 | $ | 7,000,000 | ||||
Capex Term Loan - $6,000 payable monthly May 1, 2012 through April 1, 2017. | 273,000 | 330,000 | ||||||
Capex Term Loan - $9,000 payable monthly October 1, 2012 through September 1, 2017. | 415,000 | 493,000 | ||||||
7,478,000 | 7,823,000 | |||||||
Less current maturities | 460,000 | 460,000 | ||||||
$ | 7,018,000 | $ | 7,363,000 | |||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Segment Reporting [Abstract] | ' | ||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||
Three months ended September 30, 2013 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 20,483,000 | $ | 14,776,000 | $ | 5,707,000 | |||||
Segment operating income | $ | 2,903,000 | $ | 1,938,000 | $ | 965,000 | |||||
General corporate expense | -1,528,000 | ||||||||||
Interest expense – net | -94,000 | ||||||||||
Earnings before income taxes | $ | 1,281,000 | |||||||||
Segment assets | $ | 53,647,000 | $ | 42,080,000 | $ | 11,567,000 | |||||
Corporate assets | 3,878,000 | ||||||||||
Total assets | $ | 57,525,000 | |||||||||
Long-lived assets, including $11,000 at corporate | $ | 17,064,000 | $ | 12,604,000 | $ | 4,449,000 | |||||
Three months ended September 30, 2012 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 17,622,000 | $ | 13,327,000 | $ | 4,295,000 | |||||
Segment operating income | $ | 2,701,000 | $ | 1,995,000 | $ | 706,000 | |||||
General corporate expense | -1,310,000 | ||||||||||
Interest expense – net | -126,000 | ||||||||||
Earnings before income taxes | $ | 1,265,000 | |||||||||
Segment assets | $ | 49,167,000 | $ | 37,700,000 | $ | 11,467,000 | |||||
Corporate assets | 4,941,000 | ||||||||||
Total assets | $ | 54,108,000 | |||||||||
Long-lived assets, including $34, 000 at corporate | $ | 18,258,000 | $ | 13,631,000 | $ | 4,593,000 | |||||
Nine months ended September 30, 2013 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 60,668,000 | $ | 43,625,000 | $ | 17,043,000 | |||||
Segment operating income | $ | 8,395,000 | $ | 5,392,000 | $ | 3,003,000 | |||||
General corporate expense | -4,396,000 | ||||||||||
Interest expense – net | -321,000 | ||||||||||
Earnings before income taxes | $ | 3,678,000 | |||||||||
Nine months ended September 30, 2012 | Consolidated | Tools | Hardware | ||||||||
Revenues from unaffiliated customers | $ | 47,180,000 | $ | 32,672,000 | $ | 14,508,000 | |||||
Segment operating income | $ | 7,543,000 | $ | 5,027,000 | $ | 2,516,000 | |||||
General corporate expense | -4,325,000 | ||||||||||
Interest expense – net | -401,000 | ||||||||||
Earnings before income taxes | $ | 2,817,000 | |||||||||
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Numerator for basic and diluted earnings per common share: | ' | ' | ' | ' | ||||
Net income | $810,000 | $3,567,000 | $2,306,000 | $5,069,000 | ||||
Denominator: | ' | ' | ' | ' | ||||
For basic earnings per share - weighted average common shares outstanding | 3,694,000 | 3,662,000 | 3,684,000 | 3,632,000 | ||||
Dilutive securities | 218,000 | [1] | 142,000 | [1] | 204,000 | [1] | 95,000 | [1] |
For diluted earnings per share - weighted average common shares outstanding | 3,912,000 | 3,804,000 | 3,888,000 | 3,727,000 | ||||
[1] | Dilutive securities consist of bin the moneyb options. |
EARNINGS_PER_SHARE_Details_1
EARNINGS PER SHARE (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted average antidilutive stock options outstanding | 296,000 | 230,000 | 236,000 | 421,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Option Shares, Outstanding | 584,688 | ' |
Option Shares, Granted | 71,500 | ' |
Option Shares, Exercised | -22,000 | ' |
Option Shares, Forfeited | 0 | ' |
Option Shares, Expired | 0 | ' |
Option Shares, Outstanding | 634,188 | 584,688 |
Option Shares, Vested | 489,355 | ' |
Weighted Average Exercise Price, Outstanding | $6.48 | ' |
Weighted Average Exercise Price, Granted | $8.21 | ' |
Weighted Average Exercise Price, Exercised | $3.80 | ' |
Weighted Average Exercise Price, Outstanding | $6.77 | $6.48 |
Weighted Average Exercise Price, Vested | $6.94 | ' |
Weighted Average Remaining ContractualLife, Outstanding (Years) | '5 years 1 month 6 days | '5 years 4 months 24 days |
Weighted Average Remaining Contractual Life (Years), Vested | '4 years 1 month 6 days | ' |
Aggregate Intrinsic Value, Outstanding (in dollars) | $758,000 | ' |
Aggregate Intrinsic Value, Outstanding (in dollars) | 1,181,900 | 758,000 |
Aggregate Intrinsic Value, Vested (in dollars) | $929,002 | ' |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Option Shares, Non-vested shares, beginning of year | 141,000 |
Option Shares, Granted | 71,500 |
Option Shares, Vested | -67,667 |
Option Shares, Forfeited | 0 |
Option Shares, Non-vested shares, end of year | 144,833 |
Weighted Average Grant Date Fair Value, Non-vested options, beginning of year (in dollars per share) | $2.94 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $6.72 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $2.92 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $0 |
Weighted Average Grant Date Fair Value, Non-vested options, end of year (in dollars per share) | $4.81 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 28-May-13 | 28-May-13 | |
Incentive Stock Option Plan 2002 [Member] | Incentive Stock Option Plan 2012 [Member] | Incentive Stock Option Plan 2012 [Member] | Incentive Stock Option Plan 2012 [Member] | Incentive Stock Option Plan 2012 [Member] | |||||||
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |||||||||
Non-employee [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | 199,512 | ' | ' | ' |
Treasury Stock, Shares, Acquired | 2,585 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 5,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Gross | $22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | 94,000 | 52,000 | 245,000 | 139,000 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | ' | 415,000 | ' | 415,000 | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | '1 year 2 months 12 days | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | ' | 634,188 | ' | 634,188 | ' | 584,688 | 520,688 | 113,500 | ' | 3,330 | 666 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | $8.95 | ' | ' |
Restricted Stock or Unit Expense | ' | ' | ' | $30,000 | $0 | ' | ' | ' | $2,500 | ' | ' |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts receivable | $12,379,000 | $6,953,000 |
Allowance for doubtful accounts | -324,000 | -278,000 |
Accounts Receivable, Net, Current, Total | $12,055,000 | $6,675,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Raw materials | $1,979,000 | $2,093,000 |
Work in process | 556,000 | 888,000 |
Finished goods | 23,045,000 | 23,357,000 |
Inventory, Gross | 25,580,000 | 26,338,000 |
Reserve for obsolete and slow-moving inventories | -2,434,000 | -2,265,000 |
Inventory net | $23,146,000 | $24,073,000 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Other intangible assets: | ' | ' |
Cost | $5,864,000 | $5,864,000 |
Accumulated amortization | 4,304,000 | 4,112,000 |
Net book value | 1,560,000 | 1,752,000 |
Customer Relationships [Member] | ' | ' |
Other intangible assets: | ' | ' |
Cost | 5,070,000 | 5,070,000 |
Accumulated amortization | 4,047,000 | 3,906,000 |
Net book value | 1,023,000 | 1,164,000 |
Trademarks [Member] | ' | ' |
Other intangible assets: | ' | ' |
Cost | 199,000 | 199,000 |
Accumulated amortization | 0 | 0 |
Net book value | 199,000 | 199,000 |
Drawings [Member] | ' | ' |
Other intangible assets: | ' | ' |
Cost | 290,000 | 290,000 |
Accumulated amortization | 93,000 | 85,000 |
Net book value | 197,000 | 205,000 |
Licensing Agreements [Member] | ' | ' |
Other intangible assets: | ' | ' |
Cost | 305,000 | 305,000 |
Accumulated amortization | 164,000 | 121,000 |
Net book value | $141,000 | $184,000 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Amortization Of Other Intangible Assets | $58,000 | $99,000 | $192,000 | $298,000 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $233,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 233,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 201,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 175,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $175,000 | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '7 years | '7 years 6 months |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Long Term Debt And Capital Lease Obligations Current And Noncurrent | $7,478,000 | $7,823,000 |
Less current maturities | 460,000 | 460,000 |
Long-term Debt and Capital Lease Obligations | 7,018,000 | 7,363,000 |
Term Loan [Member] | ' | ' |
Long-term Debt | 6,790,000 | 7,000,000 |
Capex Term Loan One [Member] | ' | ' |
Long-term Debt | 273,000 | 330,000 |
Capex Term Loan Two [Member] | ' | ' |
Long-term Debt | $415,000 | $493,000 |
DEBT_Details_Textual
DEBT (Details Textual) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Capex Term Loan [Member] | Capex Term Loan [Member] | Capex Term Loan [Member] | Capex Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Capex Term Loan One [Member] | Capex Term Loan Two [Member] | |||
Colf [Member] | Repayment Term One [Member] | Colf [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | $29,453,000 | ' | ' | ' | $20,000,000 | ' | ' |
Debt Instrument, Face Amount | 6,790,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,290,000 | 2,793,000 | ' | ' | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | 3.00% | 2.00% | 3.00% | 2.00% | ' | ' | 2.25% | 2.00% | ' | ' | ' |
Monthly Repayment of Loan as Per Amended Will | 23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly Repayment Of Term Loan | ' | ' | 9,000 | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Long-term Debt | ' | ' | 519,000 | 380,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'monthly | ' | ' | ' | 'monthly | 'monthly |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Dec-17 | ' | ' | ' | 1-Apr-17 | 1-Sep-17 |
Debt Instrument, Periodic Payment, Principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,000 | ' | ' | ' | ' | ' |
Debt Instrument, Date of First Required Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jan-13 | ' | ' | ' | 1-May-12 | 1-Oct-12 |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 1.00% | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transaction, Purchases from Related Party | $120,000 | $265,000 | $622,000 | $735,000 |
Related Party Transaction, Due from (to) Related Party | $49,000 | $48,000 | $49,000 | $48,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Revenues from unaffiliated customers | $20,483,000 | $17,622,000 | $60,668,000 | $47,180,000 | ' |
Segment operating income | 2,903,000 | 2,701,000 | 8,395,000 | 7,543,000 | ' |
General corporate expense | -1,528,000 | -1,310,000 | -4,396,000 | -4,325,000 | ' |
Interest expense - net | -94,000 | -126,000 | -321,000 | -401,000 | ' |
Earnings before income taxes | 1,281,000 | 1,265,000 | 3,678,000 | 2,817,000 | ' |
Segment assets | 53,647,000 | 49,167,000 | 53,647,000 | 49,167,000 | ' |
Corporate assets | 3,878,000 | 4,941,000 | 3,878,000 | 4,941,000 | ' |
Total assets | 57,525,000 | 54,108,000 | 57,525,000 | 54,108,000 | 55,157,000 |
Long-lived assets | 17,064,000 | 18,258,000 | 17,064,000 | 18,258,000 | ' |
Tool [Member] | ' | ' | ' | ' | ' |
Revenues from unaffiliated customers | 14,776,000 | 13,327,000 | 43,625,000 | 32,672,000 | ' |
Segment operating income | 1,938,000 | 1,995,000 | 5,392,000 | 5,027,000 | ' |
Segment assets | 42,080,000 | 37,700,000 | 42,080,000 | 37,700,000 | ' |
Long-lived assets | 12,604,000 | 13,631,000 | 12,604,000 | 13,631,000 | ' |
Hardware [Member] | ' | ' | ' | ' | ' |
Revenues from unaffiliated customers | 5,707,000 | 4,295,000 | 17,043,000 | 14,508,000 | ' |
Segment operating income | 965,000 | 706,000 | 3,003,000 | 2,516,000 | ' |
Segment assets | 11,567,000 | 11,467,000 | 11,567,000 | 11,467,000 | ' |
Long-lived assets | $4,449,000 | $4,593,000 | $4,449,000 | $4,593,000 | ' |
BUSINESS_SEGMENTS_Details_Text
BUSINESS SEGMENTS (Details Textual) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Long Lived Asset Allocated To Corporate | $11,000 | $34,000 |