Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 27, 2014 | Jun. 28, 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-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $20,859,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $413,000 | $695,000 |
Accounts receivable - net | 8,739,000 | 6,675,000 |
Inventories - net | 22,974,000 | 24,073,000 |
Deferred income taxes - net | 1,168,000 | 1,139,000 |
Prepaid expenses and other current assets | 829,000 | 547,000 |
TOTAL CURRENT ASSETS | 34,123,000 | 33,129,000 |
PROPERTY AND EQUIPMENT | ' | ' |
Land | 1,550,000 | 1,550,000 |
Buildings and improvements | 7,626,000 | 7,536,000 |
Machinery and equipment | 18,606,000 | 18,010,000 |
Property plant and equipment gross | 27,782,000 | 27,096,000 |
Less accumulated depreciation and amortization | 17,553,000 | 15,994,000 |
NET PROPERTY AND EQUIPMENT | 10,229,000 | 11,102,000 |
GOODWILL | 5,150,000 | 5,150,000 |
OTHER INTANGIBLE ASSETS - net | 1,502,000 | 1,752,000 |
DEFERRED INCOME TAXES - net | 1,594,000 | 3,211,000 |
OTHER ASSETS - net | 643,000 | 813,000 |
TOTAL ASSETS | 53,241,000 | 55,157,000 |
CURRENT LIABILITIES | ' | ' |
Short-term borrowings | 360,000 | 2,793,000 |
Accounts payable | 3,006,000 | 4,843,000 |
Accrued liabilities | 3,520,000 | 4,332,000 |
Current maturities of long-term debt | 460,000 | 460,000 |
TOTAL CURRENT LIABILITIES | 7,346,000 | 12,428,000 |
Long-term debt, less current maturities | 6,903,000 | 7,363,000 |
Other Liabilities | 262,000 | 278,000 |
TOTAL LIABILITIES | 14,511,000 | 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 | 11,798,000 | 11,384,000 |
Retained earnings | 25,871,000 | 22,646,000 |
Treasury stock, at cost - 344,000 at December 31, 2013 and 342,000 at December 31, 2012 | -2,977,000 | -2,955,000 |
TOTAL SHAREHOLDERS' EQUITY | 38,730,000 | 35,088,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 53,241,000 | 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_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 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_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net revenue | $76,066,000 | $59,871,000 |
Cost of sales | 48,734,000 | 37,729,000 |
Gross profit | 27,332,000 | 22,142,000 |
Selling, general and administrative expenses | 22,325,000 | 18,320,000 |
Operating income | 5,007,000 | 3,822,000 |
Interest expense - net | 403,000 | 526,000 |
Income before income taxes | 4,604,000 | 3,296,000 |
Income tax expense (benefit) | 1,379,000 | -2,115,000 |
Net income | $3,225,000 | $5,411,000 |
Basic earnings per share (in dollars per share) | $0.87 | $1.49 |
Diluted earnings per share (in dollars per share) | $0.83 | $1.44 |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 3,686,000 | 3,641,000 |
Diluted (in shares) | 3,887,000 | 3,748,000 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Class A [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] |
Balance at Dec. 31, 2011 | $29,155,000 | $3,956,000 | $10,919,000 | $17,235,000 | ($2,955,000) |
Balance (in shares) at Dec. 31, 2011 | ' | 3,956,000 | ' | ' | -342,000 |
Net income | 5,411,000 | ' | ' | 5,411,000 | ' |
Exercise of stock options | 304,000 | 52,000 | 252,000 | ' | ' |
Exercise of stock options (in shares) | ' | 52,000 | ' | ' | ' |
Issuance of restricted common stock | 26,000 | 5,000 | 21,000 | ' | ' |
Issuance of restricted common stock (in shares) | ' | 5,000 | ' | ' | ' |
Stock-based compensation | 192,000 | ' | 192,000 | ' | ' |
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 | 3,225,000 | ' | ' | 3,225,000 | ' |
Exercise of stock options | 62,000 | 22,000 | 62,000 | ' | -22,000 |
Exercise of stock options (in shares) | ' | 22,000 | ' | ' | -2,000 |
Issuance of restricted common stock | 17,000 | 3,000 | 14,000 | ' | ' |
Issuance of restricted common stock (in shares) | ' | 3,000 | ' | ' | ' |
Stock-based compensation | 338,000 | ' | 338,000 | ' | ' |
Balance at Dec. 31, 2013 | $38,730,000 | $4,038,000 | $11,798,000 | $25,871,000 | ($2,977,000) |
Balance (in shares) at Dec. 31, 2013 | ' | 4,038,000 | ' | ' | -344,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net income | $3,225,000 | $5,411,000 |
Non-cash charges: | ' | ' |
Depreciation and amortization | 1,559,000 | 1,623,000 |
Amortization of other intangible assets | 250,000 | 398,000 |
Amortization of debt issue costs | 103,000 | 286,000 |
(Recovery) provision for doubtful accounts | -42,000 | 53,000 |
Stock-based compensation | 338,000 | 192,000 |
Restricted stock-based compensation | 40,000 | 3,000 |
Loss on sale of fixed assets | 7,000 | 2,000 |
Deferred income taxes | 1,588,000 | -2,243,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -2,022,000 | -401,000 |
Inventories | 1,099,000 | -5,485,000 |
Prepaid expenses and other current assets | -305,000 | -47,000 |
Other assets | 67,000 | -92,000 |
Accounts payable | -1,837,000 | 2,614,000 |
Accrued liabilities | -812,000 | 975,000 |
Other liabilities | -16,000 | -19,000 |
Total adjustments | 17,000 | -2,141,000 |
Net cash provided by operating activities | 3,242,000 | 3,270,000 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -693,000 | -1,969,000 |
Proceeds from sale of assets | 0 | 8,000 |
Purchase of product license | 0 | -200,000 |
Net cash used in investing activities | -693,000 | -2,161,000 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from exercise of stock options | 62,000 | 304,000 |
Proceeds from short-term borrowings | 65,353,000 | 56,005,000 |
Repayments of short-term borrowings | -67,786,000 | -58,860,000 |
Long term-debt advances | 0 | 3,289,000 |
Repayments of long-term debt | -460,000 | -1,116,000 |
Repayments on notes payable | 0 | -250,000 |
Bank financing costs | 0 | -229,000 |
Net cash used in financing activities | -2,831,000 | -857,000 |
Net (decrease) increase in cash | -282,000 | 252,000 |
Cash at beginning of year | 695,000 | 443,000 |
Cash at end of year | 413,000 | 695,000 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest | 413,000 | 545,000 |
Income taxes | $79,000 | $164,000 |
SUMMARY_OF_ACCOUNTING_POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies [Text Block] | ' | |||||||
NOTE 1—SUMMARY OF ACCOUNTING POLICIES | ||||||||
Principles of Consolidation | ||||||||
The consolidated 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 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 product line which includes pipe and bolt dies, pipe taps, wrenches, vises and stands, pipe and tubing cutting equipment, hydrostatic test pumps, 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 and markets impact wrenches, grinders, drills, and motors. Further, it also manufacturers tools to customer unique specifications. Its customers include refineries, chemical plants, power generation, 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 (“OEM”). It also manufactures and distributes high pressure stoppers for hydrostatic testing fabricated pipe. It also 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 an importer and manufacturer of door, window and fencing hardware and accessories, including rollers, hinges, window operators, sash locks, custom zinc castings and door closers. Nationwide’s products are sold through in-house sales personnel and manufacturers’ representatives to distributors, retailers and OEM customers. End users of Nationwide’s products include contractors, home builders, pool and patio distributors, OEM/private label customers and general consumers. Most of Nationwide’s sales are of products imported from Taiwan and China. | ||||||||
Additionally, Nationwide marketed a Kitchen and bath product line. However, effective November 12, 2013, Nationwide sold to an unrelated third party, all inventory, intangibles and certain fixed assets attributable to its Kitchen and bath product line. Factors considered in reaching this decision included, but were not limited to: (i) tax incentives, (ii) dwindling net contribution margins, (iii) high levels of inventory necessary to properly serve the marketplace, (iv) narrow market penetration, and (v) required changes in product construction necessary to comply with various regulations. The net impact of this sale was immaterial to the Company’s operations. | ||||||||
Basis of Financial Statement Presentation | ||||||||
The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). | ||||||||
Revenue Recognition | ||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been provided, the sale price is fixed or determinable, and collectability is reasonably assured. The Company sells its goods on terms which transfer title and risk of loss at a specified location, typically shipping point, port of loading or port of discharge, depending on the final destination of the goods. Revenue recognition from product sales occurs when all factors are met, including transfer of title and risk of loss, which occurs either upon shipment by the Company or upon receipt by customers at the location specified in the terms of sale. Other than standard product warranty provisions, the Company’s sales arrangements provide for no other, or insignificant, post-shipment obligations. The Company does offer rebates and other sales incentives, promotional allowances or discounts, from time to time and for certain customers, typically related to customer purchase volume, all of which are fixed or determinable and are classified as a reduction of revenue and recorded at the time of sale. The Company periodically evaluates whether an allowance for sales returns is necessary. Historically, the Company has experienced sales returns. If the Company concludes there are potential sales returns, the Company would provide any necessary provision against sales. | ||||||||
Shipping and Handling Costs | ||||||||
Expenses for shipping and handling costs are included in selling, general and administrative expenses, and totaled approximately $2,177,000 and $713,000, respectively, for the years ended December 31, 2013 and 2012. | ||||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents consist of cash held in bank demand deposits. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2013 and 2012. | ||||||||
Financial Instruments | ||||||||
The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts payable and short-term debt approximate fair value as of December 31, 2013 and 2012 because of the relatively short-term maturity of these financial instruments. The carrying amounts reported for long-term debt approximate fair value as of December 31, 2013 and 2012 because, in general, the interest rates underlying the instruments fluctuate with market rates. | ||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||
Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to retailers, distributors and original equipment manufacturers involved in a variety of industries. The Company performs continuing credit evaluations of its customers’ financial condition, and although the Company generally does not require collateral, letters of credit may be required from customers in certain circumstances. | ||||||||
Management reviews accounts receivable to determine if any receivables will potentially be uncollectible. Factors considered in the determination include, among other factors, number of days an invoice is past due, customer historical trends, available credit ratings information, other financial data and the overall economic environment. Collection agencies may also be utilized if management so determines. | ||||||||
The Company records an allowance for doubtful accounts based on specifically identified amounts that are believed to be uncollectible. The Company also records as an additional allowance a certain percentage of aged accounts receivable, based on historical experience and the Company’s assessment of the general financial conditions affecting its customer base. If actual collection experience changes, revisions to the allowance may be required. The Company has a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in the creditworthiness of any of these customers could have a material effect on the Company’s results of operations in the period in which such changes or events occur. After all reasonable attempts to collect an account receivable have failed, the amount of the receivable is written off against the allowance. Based on the information available, the Company believes that its allowance for doubtful accounts as of December 31, 2013 is adequate. However, actual write-offs might exceed the recorded allowance. | ||||||||
Concentrations of Credit Risk | ||||||||
The Company places the majority of its cash with Capital One Bank, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). Significant concentrations of credit risk may arise from the Company’s cash maintained at Capital One Bank, as from time to time cash balances may exceed the FDIC limits. | ||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. Within our Tools segment we have two customers that in the aggregate, as of December 31, 2013 and 2012, accounted for 58.3% and 40.3% of our consolidated accounts receivable. To date, these customers, with few exceptions, are current in their payments. Additionally, in 2013 and 2012 these two customers accounted for 40.0% and 24.2%, respectively, of the Company’s revenue. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, possible disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis P&F evaluates its estimates, including those related to collectability of accounts receivable, valuation of inventories, recoverability of goodwill and intangible assets and income taxes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions. | ||||||||
Inventories | ||||||||
Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out method or the weighted average method. The inventory balance, which includes raw materials, labor, and manufacturing overhead costs, is recorded net of an allowance for obsolete or unmarketable inventory. Such allowance is based upon both historical experience and management’s understanding of market conditions and forecasts of future product demand. If the actual amount of obsolete or unmarketable inventory significantly exceeds the estimated allowance, the Company’s cost of sales, gross profit and net earnings would be significantly affected. | ||||||||
Property and Equipment and Depreciation and Amortization | ||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Generally, the Company capitalizes items in excess of $1,000. Minor replacements and maintenance and repair items are charged to expense as incurred. Upon disposal or retirement of assets, the cost and related accumulated depreciation are removed from the Company’s consolidated balance sheet. | ||||||||
Depreciation of buildings and machinery and equipment is computed by using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over periods ranging from 25 to 32 years, and machinery and equipment is depreciated over periods ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease or the useful life of the related asset, whichever is shorter. | ||||||||
Long-Lived Assets | ||||||||
In accordance with authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) pertaining to the accounting for the impairment or disposal of long-lived assets, property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment is performed on an entity level. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of such asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of such asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | ||||||||
Goodwill and Other Intangible Assets | ||||||||
Goodwill is carried at cost less any impairment charges. Goodwill and intangible assets with indefinite lives are not amortized but are subject to an annual test for impairment at the entity unit level (operating segment or one level below an operating segment) and between annual tests in certain circumstances. In accordance with authoritative guidance issued by the FASB, the Company tests goodwill for impairment on an annual basis in the fourth quarter or more frequently if the Company believes indicators of impairment exist. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair value of the Company’s reporting units with the reporting unit’s carrying amount, including goodwill. The Company generally determines the fair value of its reporting units using the income approach methodology of valuation that includes the expected present value of future cash flows and the market valuation approach. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. | ||||||||
Intangible assets other than goodwill and intangible assets with indefinite lives are carried at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over the useful lives of the respective assets, generally five to twenty-five years. Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the amount by which the carrying value exceeds the fair value of the asset. | ||||||||
Warranty Liability | ||||||||
The Company offers certain warranties against product defects for periods ranging from one to three years. Certain products carry limited lifetime warranties. The Company’s typical warranties require it to repair or replace the defective products during the warranty period at no cost to the customer. At the time the product revenue is recognized, the Company records a liability for estimated costs under its warranties. The costs are estimated based on revenue and historical experience. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. While the Company believes that its estimated liability for product warranties is adequate and that the judgment applied is appropriate, the estimated liability for the product warranties could differ materially from future actual warranty costs. | ||||||||
Income Taxes | ||||||||
The Company accounts for income taxes using the asset and liability approach. This approach requires the recognition of current tax assets or liabilities for the amounts refundable or payable on tax returns for the current year, as well as the recognition of deferred tax assets or liabilities for the expected future tax consequences of temporary differences that can arise between (a) the amount of taxable income and pretax financial income for a year, such as from net operating loss carryforwards and other tax credits, and (b) the tax bases of assets or liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates. The impact on deferred tax assets and liabilities of changes in tax rates and laws, if any, is reflected in the consolidated financial statements in the period enacted. Further, we evaluate the likelihood of realizing benefit from our deferred tax assets by estimating future sources of taxable income and the impact of tax planning strategies. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. | ||||||||
The Company files a consolidated Federal tax return. P&F and certain of its subsidiaries file combined tax returns in New York and Texas. All subsidiaries file other state and local tax returns on a stand-alone basis. | ||||||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while other positions are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. For tax positions that meet the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50 percent likelihood of being realized upon ultimate settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, is reflected as a liability for unrecognized tax benefits in the consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as income taxes in the consolidated statement of income. | ||||||||
Advertising | ||||||||
The Company expenses its costs of advertising in the period in which they are incurred. Advertising costs for the years ended December 31, 2013 and 2012 were $1,401,000 and $622,000, respectively. | ||||||||
Earnings Per Common Share | ||||||||
Basic earnings per common share exclude any dilution. It is based upon the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share reflect the effect of shares of common stock issuable upon the exercise of stock options, unless the effect on earnings is anti-dilutive. | ||||||||
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 computation of basic and diluted earnings per common share: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted income per common share: | ||||||||
Net income | $ | 3,225,000 | $ | 5,411,000 | ||||
Denominator: | ||||||||
Denominator for basic income per share—weighted average common shares outstanding | 3,686,000 | 3,641,000 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 201,000 | 107,000 | ||||||
Denominator for diluted income per share—adjusted weighted average common shares and assumed conversions | 3,887,000 | 3,748,000 | ||||||
At December 31, 2013 and 2012 and during the years then ended, there were outstanding stock options whose exercise prices were higher than the average market values for the respective periods. These options are anti-dilutive and were excluded from the computation of diluted earnings per share during the years ended December 31, 2013 and 2012, respectively. The average anti-dilutive options outstanding for the years ended December 31, 2013 and 2012 were 252,391 and 373,156, respectively. | ||||||||
Share-Based Compensation | ||||||||
In accordance with GAAP, the Company measures and recognizes compensation expense for all share-based payment awards based on estimated fair values. Share-based compensation expense is included in selling, general and administrative expense on the accompanying consolidated statements of income. See Note 6 for additional information. | ||||||||
GAAP requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statement of income. The Company records compensation expense ratably over the vesting periods. The Company estimates forfeitures at the time of grant and revises this estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) as its method of valuation for share-based awards granted. The Company’s determination of fair value of share-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards and the expected term of the awards. | ||||||||
Treasury Stock | ||||||||
Treasury stock is recorded at net acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. | ||||||||
Adoption of New Accounting Pronouncements | ||||||||
The Company does not believe that any recently issued accounting standards if adopted would have a material effect on its consolidated financial statements. | ||||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||
NOTE 2—ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | ||||||||
Accounts receivable—net consists of: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Accounts receivable | $ | 8,975,000 | $ | 6,953,000 | ||||
Allowance for doubtful accounts | -236,000 | -278,000 | ||||||
$ | 8,739,000 | $ | 6,675,000 | |||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
NOTE 3—INVENTORIES | ||||||||
Inventories—net consist of: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 1,836,000 | $ | 2,093,000 | ||||
Work in process | 475,000 | 888,000 | ||||||
Finished goods | 22,924,000 | 23,357,000 | ||||||
25,235,000 | 26,338,000 | |||||||
Reserve for obsolete and slow-moving inventories | -2,261,000 | -2,265,000 | ||||||
$ | 22,974,000 | $ | 24,073,000 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE 4—GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||
Goodwill and other intangible assets with indefinite lives are tested annually or whenever events or circumstances indicate the carrying value of these assets may not be recoverable. In accordance with authoritative guidance issued by the FASB, the Company performed an annual impairment test of goodwill and indefinite-lived intangible assets during the fourth quarter based on conditions as of November 30, 2013. The impairment testing is performed in two steps: (i) The Company compares the fair value of a reporting unit with its carrying value, and (ii) if there is impairment, the Company measures the amount of impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The revised fair value of a reporting unit is allocated to the assets and liabilities of the business unit to arrive at an implied fair value of goodwill, based upon known facts and circumstances, as if the acquisition occurred at that time. The Company determines the fair value of its reporting units using a weighted average of the income approach methodology of valuation which considers the expected present value of future cash flows and the market valuation approach. As an integral part of the valuation process the Company anticipates minimal growth in future periods, based upon available statistical data as well as input from its senior management staff. The results of step one of the impairment test determined that the fair value exceeded the carrying value and, as such, no impairment to Goodwill and other intangible assets was recorded in 2013 or 2012. | ||||||||||||||||||||
Goodwill: | Consolidated | Tools | Hardware | |||||||||||||||||
Balance, December 31, 2013 and 2012 | $ | 5,150,000 | $ | 3,277,000 | $ | 1,873,000 | ||||||||||||||
Other intangible assets: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Cost | Accumulated | Net book | Cost | Accumulated | Net book | |||||||||||||||
amortization | value | amortization | value | |||||||||||||||||
Customer relationships | $ | 5,070,000 | $ | 4,087,000 | $ | 983,000 | $ | 5,070,000 | $ | 3,906,000 | $ | 1,164,000 | ||||||||
Trademarks | 199,000 | — | 199,000 | 199,000 | — | 199,000 | ||||||||||||||
Drawings | 290,000 | 97,000 | 193,000 | 290,000 | 85,000 | 205,000 | ||||||||||||||
Licenses | 305,000 | 178,000 | 127,000 | 305,000 | 121,000 | 184,000 | ||||||||||||||
Totals | $ | 5,864,000 | $ | 4,362,000 | $ | 1,502,000 | $ | 5,864,000 | $ | 4,112,000 | $ | 1,752,000 | ||||||||
There were no impairment charges recorded for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||
Amortization expense for intangible assets was approximately $250,000 and $398,000, for the years ended December 31, 2013 and 2012, respectively. The weighted average amortization period for intangible assets was 6.8 and 7.5 years at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
Amortization expense for each of the next five years and thereafter is estimated to be as follows | ||||||||||||||||||||
2014 | $ | 233,000 | ||||||||||||||||||
2015 | 233,000 | |||||||||||||||||||
2016 | 187,000 | |||||||||||||||||||
2017 | 175,000 | |||||||||||||||||||
2018 | 175,000 | |||||||||||||||||||
Thereafter | 301,000 | |||||||||||||||||||
$ | 1,304,000 | |||||||||||||||||||
DEBT
DEBT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
NOTE 5—DEBT | ||||||||
SHORT-TERM LOANS | ||||||||
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 $29,423,000. 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 $360,000 and $2,793,000 at December 31, 2013 and 2012, respectively. Applicable Margins added to Revolver borrowings at LIBOR and the Base Rate were 1.75% and 0.75%, respectively at December 31, 2013, and 2.00 % and 1.00%, respectively, at December 31, 2012. | ||||||||
LIBOR | Base Rate | |||||||
Range of Applicable Margins added to Revolver borrowings during: | ||||||||
2013 | 1.75 points to 2.25 points | 0.75 points to 1.25 points | ||||||
2012 | 2.00 points to 2.75 points | 1.00 points to 1.75 points | ||||||
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. | ||||||||
LONG-TERM LOANS | ||||||||
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 December 31, 2013 and December 31, 2012 was $6,720,000 and $7,000,000, respectively. The Term Loan is repaid approximately $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 December 31, 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 Capex Term Loans is based on sixty-month amortization periods, resulting in repayments of approximately $6,000 and $9,000, respectively. Applicable Margins added to these Capex Term Loans at both December 31, 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: | ||||||||
December 31, 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) | $ | 6,720,000 | $ | 7,000,000 | ||||
Capex Term Loan - $6,000 payable monthly May 1, 2012 through April 1, 2017. | 254,000 | 330,000 | ||||||
Capex Term Loan - $9,000 payable monthly October 1, 2012 through September 1, 2017. | 389,000 | 493,000 | ||||||
7,363,000 | 7,823,000 | |||||||
Less current maturities | 460,000 | 460,000 | ||||||
$ | 6,903,000 | $ | 7,363,000 | |||||
The aggregate amounts of long-term debt scheduled to mature in each of the years ended December 31, are approximately as follows: 2014—$460,000; 2015—$460,000; 2016—$460,000; and 2017—$5,983,000. Interest expense on long-term debt was approximately $254,000 and $325,000, respectively, for the years ended December 31, 2013 and 2012. | ||||||||
STOCK_OPTIONS_STOCK_COMPENSATI
STOCK OPTIONS - STOCK COMPENSATION | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||||
NOTE 6—STOCK OPTIONS – STOCK COMPENSATION | |||||||||||||||||||||||||||
At the Annual Meeting of Stockholders held May 23, 2012 (the “Annual Meeting”), the Company’s stockholders approved the P&F Industries, Inc. 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the issuance, to employees, consultants and non-employee directors of nonqualified stock options, stock appreciation rights, restricted stock, performance shares, performance units, and other stock-based awards. In addition, employees are eligible to be granted incentive stock options under the 2012 Plan. The 2012 Plan is currently administered by the compensation committee of the Company’s Board of Directors (the “Committee”). The aggregate number of shares of the Company’s Class A Common Stock (“Common Stock”) that may be issued under the 2012 Plan may not exceed 325,000 shares; provided, however, that any shares of Common Stock that are subject to a stock option, stock appreciation right or other stock-based award that is based on the appreciation in value of a share of Common Stock in excess of an amount equal to at least the fair market value of the Common Stock on the date such other stock-based award is granted (each an “Appreciation Award”) will be counted against this limit as one share for every share granted. Any shares of restricted stock or shares of Common Stock that are subject to any other award other than Appreciation Award will be counted against this limit as 1.5 shares for every share granted. | |||||||||||||||||||||||||||
The maximum number of shares of Common Stock with respect to which any award of stock options, stock appreciation rights or other Appreciation Award that may be granted under the 2012 Plan during any fiscal year to any eligible employee or consultant will be 100,000 shares per type of award. The maximum number of shares of Common Stock subject to any award of performance shares for any performance period, other stock based awards that are not Appreciation Awards, or shares of restricted stock for which the grant of such award or the lapse of the relevant restriction period is subject to the attainment of specified performance goals that may be granted under the 2012 Plan during any fiscal year to any eligible employee or consultant will be 65,000 shares per type of award. The maximum number of shares of Common Stock for all such types of awards to any eligible employee or consultant will be 165,000 shares during any fiscal year. There are no annual limits on the number of shares of Common Stock with respect to an award of restricted stock that is not subject to the attainment of specified performance goals to eligible employees or consultants. The maximum value at grant of performance units which may be granted under the 2012 Plan during any fiscal year will be $1,000,000. The maximum number of shares of Common Stock subject to any award which may be granted under the 2012 Plan during any fiscal year of the Company to any non-employee director will be 35,000 shares. | |||||||||||||||||||||||||||
With respect to stock options, the Committee will determine the number of shares of Common Stock subject to each option, the term of each option, which may not exceed ten years (or five years in the case of an incentive stock option granted to a 10% stockholder), the exercise price, the vesting schedule (if any), and the other material terms of each option. No stock option may have an exercise price less than the fair market value of the Common Stock at the time of grant (or, in the case of an incentive stock option granted to a 10% stockholder, 110% of fair market value). With respect to all other permissible grants under the 2012 Plan, the Committee will determine their terms and conditions, subject to the terms and conditions of the 2012 Plan. | |||||||||||||||||||||||||||
The 2012 Plan, which terminates in May 2022, is the successor to the Company’s 2002 Stock Incentive Plan (“Previous Plan”) – see below. Stock option awards made under the Previous Plan will continue in effect and remain governed by the provisions of that plan. | |||||||||||||||||||||||||||
The Company’s Previous Plan authorized the issuance to employees and directors of options to purchase a maximum of 1,100,000 shares of Common Stock. These options had to be issued within ten years of the effective date of the Previous Plan and are exercisable for a ten year period from the date of grant, at prices not less than 100% of the closing market value of the Common Stock on the date the option is granted. In the event options granted contained a vesting schedule over a period of years, the Company recognized compensation cost for these awards ratably over the service period. | |||||||||||||||||||||||||||
The Company estimated the fair value of its common stock options using the following assumptions: | |||||||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Risk-free interest rate | 1.82 | % | Ranging from 1.64% to 1.74 | % | |||||||||||||||||||||||
Expected term | 10 years | 10 years | |||||||||||||||||||||||||
Volatility | 81.27 | % | Ranging from 81.47% to 81.44 | % | |||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||||||||
Weighted-average fair value of options granted | $ | 6.72 | Ranging from $3.67 to $4.05 | ||||||||||||||||||||||||
The following table contains information on the status of the Company’s stock options: | |||||||||||||||||||||||||||
Number | Weighted Average | Aggregate | |||||||||||||||||||||||||
of | Exercise Price | Intrinsic | |||||||||||||||||||||||||
Shares | per share | Value | |||||||||||||||||||||||||
Outstanding, January 1, 2012 | 655,124 | $ | 6.5 | ||||||||||||||||||||||||
Granted | 42,000 | 4.93 | |||||||||||||||||||||||||
Exercised | (52,000 | ) | 5.85 | ||||||||||||||||||||||||
Expired | (60,436 | ) | 6.09 | ||||||||||||||||||||||||
Outstanding, December 31, 2012 | 584,688 | 6.48 | |||||||||||||||||||||||||
Granted | 71,500 | 8.21 | |||||||||||||||||||||||||
Exercised | (22,000 | ) | 3.8 | ||||||||||||||||||||||||
Expired | (1,000 | ) | 11.2 | ||||||||||||||||||||||||
Outstanding, December 31, 2013 | 633,188 | $ | 6.76 | $ | 951,000 | ||||||||||||||||||||||
Vested, December 31, 2013 | 511,688 | $ | 6.76 | $ | 841,000 | ||||||||||||||||||||||
All options that expired in 2013 and 2012 were issued under the Previous Plan. | |||||||||||||||||||||||||||
The following is a summary of changes in non-vested shares, all of which are expected to vest: | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Option | Weighted Average | Option | Weighted Average | ||||||||||||||||||||||||
Shares | Grant-Date | Shares | Grant-Date | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||
Non-vested shares, beginning of year | 141,000 | $ | 2.94 | 174,667 | $ | 2.43 | |||||||||||||||||||||
Granted | 71,500 | 6.72 | 42,000 | 4.03 | |||||||||||||||||||||||
Vested | (91,000 | ) | 2.64 | (75,667 | ) | 2.37 | |||||||||||||||||||||
Forfeited | — | — | — | ||||||||||||||||||||||||
Non-vested shares, end of year | 121,500 | $ | 5.38 | 141,000 | $ | 2.94 | |||||||||||||||||||||
Stock-based compensation expense recognized for the years ended December 31, 2013 and 2012 was approximately $338,000 and $192,000, respectively. The Company recognizes stock-based compensation cost over the requisite service period. However, 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. | |||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||||||||
Options outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of Exercise | Number | Weighted Average | Weighted | Number | Weighted | Weighted | |||||||||||||||||||||
Prices | outstanding | Remaining | Average | exercisable | Average | Average | |||||||||||||||||||||
Contractual | Exercise | Life | Exercise Price | ||||||||||||||||||||||||
Life (Years) | Price | ||||||||||||||||||||||||||
$ | 7.90 - $8.06 | 115,688 | 0.5 | $ | 8.06 | 115,688 | 0.5 | $ | 8.06 | ||||||||||||||||||
$ | 14.44 - $16.68 | 24,500 | 1.5 | $ | 16.5 | 24,500 | 1.5 | $ | 16.5 | ||||||||||||||||||
$ | 11.2 | 87,500 | 3.5 | $ | 11.2 | 87,500 | 3.5 | $ | 11.2 | ||||||||||||||||||
$ | 4.16 | 170,000 | 4.5 | $ | 4.16 | 170,000 | 4.5 | $ | 4.16 | ||||||||||||||||||
$ | 3.05 | 60,000 | 7 | $ | 3.05 | 60,000 | 7 | $ | 3.05 | ||||||||||||||||||
$ | 4.48 - $4.95 | 104,000 | 7.8 | $ | 4.8 | 54,000 | 7.7 | $ | 4.83 | ||||||||||||||||||
$ | 8.21 | 71,500 | 9.3 | $ | 8.21 | — | — | — | |||||||||||||||||||
633,188 | 4.8 | $ | 6.76 | 511,688 | 3.9 | $ | 6.76 | ||||||||||||||||||||
Other Information | |||||||||||||||||||||||||||
As of December 31, 2013, the Company had approximately $321,000 of total unrecognized compensation cost related to non-vested awards granted under its share-based plans, which it expects to recognize over a weighted-average period of one year. | |||||||||||||||||||||||||||
At December 31, 2013 and 2012, there were 199,512 and 276,007 shares available for issuance under the 2012 Plan. At December 31, 2013, there were outstanding 113,500 options issued under the 2012 Plan and 519,688 options outstanding issued under the Previous Plan. | |||||||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
Pursuant to the 2012 Plan, the Company, in May 2013, granted 666 restricted shares of its common stock to each non-employee member of its Board of Directors, totaling 3,330 restricted shares. The Company determined that the fair value of these shares was $8.95, which was the closing price of the Company’s Common Stock on the date of the grant. These shares cannot be traded earlier than the first anniversary of the grant date. As such, the Company is ratably amortizing the total non-cash compensation expense of approximately $30,000 in its selling, general and administrative expenses through May 2014. | |||||||||||||||||||||||||||
Pursuant to the 2012 Plan, the Company, in November 2012, granted 666 restricted shares of its common stock to each non-employee member of its Board of Directors, totaling 4,662 restricted shares. The Company determined that the fair value of these shares was $5.51, which was the closing price of the Company’s Common Stock on the date of the grant. These shares were restricted from trading until the first anniversary of the grant date. As such, the Company recorded non-cash compensation expense of approximately $26,000 in its selling, general and administrative expenses during the twelve-month period ended November 2013. | |||||||||||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
NOTE 7—INCOME TAXES | ||||||||
Income tax expense (benefit) in the consolidated statements of income consists of: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Current: | ||||||||
Federal | $ | -317,000 | $ | 54,000 | ||||
State and local | 108,000 | 81,000 | ||||||
Total current | -209,000 | 135,000 | ||||||
Deferred: | ||||||||
Federal | 1,471,000 | -2,171,000 | ||||||
State and local | 117,000 | -79,000 | ||||||
Total deferred | 1,588,000 | -2,250,000 | ||||||
Totals | $ | 1,379,000 | $ | -2,115,000 | ||||
In accordance with the authoritative guidance issued by the FASB pertaining to the accounting for income taxes, the Company recorded, in years prior to 2012, a partial valuation allowance against certain of its deferred tax assets, since the Company believed that it was more likely than not that, based on evidence available at that time, the entire net deferred tax asset would not be realized in the foreseeable future. However, the Company believed that, based upon the fact that it has been profitable for the years ended December 31, 2010, 2011 and 2012, combined with its projected future sources of taxable income, it was appropriate to reduce the valuation allowance during 2012. As a result, in 2012 the Company recorded a net deferred tax benefit of $2,250,000, which resulted from a reduction in the valuation allowance on its deferred tax assets, partially offset by the utilization of deferred tax assets in 2012. | ||||||||
The Company has Federal net operating loss carryforwards at December 31, 2013 of approximately $6,500,000, which expire in 2030 through 2033. In addition, the Company recorded a full valuation allowance for certain state deferred tax assets, including a state net operating loss carryforward of approximately $29,000,000. The state net operating losses expire in 2027 through 2033. The Company believes it is more likely than not that the remaining tax benefits associated with these net deferred tax assets will not be realized in the foreseeable future, based upon its ability to generate sufficient state taxable income. | ||||||||
Deferred tax assets (liabilities) consist of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets—current: | ||||||||
Bad debt reserves | $ | 86,000 | $ | 103,000 | ||||
Inventory reserves | 989,000 | 1,005,000 | ||||||
Warranty and other reserves | 314,000 | 211,000 | ||||||
1,389,000 | 1,319,000 | |||||||
Valuation allowance | -11,000 | -23,000 | ||||||
1,378,000 | 1,296,000 | |||||||
Deferred tax liabilities—current: | ||||||||
Prepaid expenses | -210,000 | -157,000 | ||||||
Net deferred tax assets—current | $ | 1,168,000 | $ | 1,139,000 | ||||
Deferred tax assets—non-current | ||||||||
Intangibles | $ | — | $ | 1,982,000 | ||||
Goodwill | — | 1,407,000 | ||||||
Federal net operating loss | 2,195,000 | 669,000 | ||||||
State net operating loss | 614,000 | 449,000 | ||||||
Tax credits | 128,000 | 108,000 | ||||||
Stock based compensation | 455,000 | 319,000 | ||||||
Other | 1,000 | 24,000 | ||||||
3,393,000 | 4,958,000 | |||||||
Valuation allowance | -617,000 | -633,000 | ||||||
2,776,000 | 4,325,000 | |||||||
Deferred tax liabilities—non-current: | ||||||||
Depreciation | -1,032,000 | -1,114,000 | ||||||
Intangibles | -144,000 | — | ||||||
Goodwill | -6,000 | — | ||||||
-1,182,000 | -1,114,000 | |||||||
Net deferred tax assets—non-current | $ | 1,594,000 | $ | 3,211,000 | ||||
As discussed in Note 1, on November 12, 2013, the Company sold the assets of the Kitchen and bath product line. The remaining tax basis intangibles and goodwill were written-off as a result of the sale. The deferred tax effect was to reduce tax basis intangibles and goodwill and increase the net operating loss carryforward. | ||||||||
A reconciliation of the Federal statutory rate to the total effective tax rate applicable to income from continuing operations is as follows: | ||||||||
Years ended December 31, | ||||||||
2013 | 2012 | |||||||
Federal income tax computed at statutory rates | 34 | % | 34 | % | ||||
(Decrease) increase in taxes resulting from: | ||||||||
State and local taxes, net of Federal tax benefit | 3.2 | — | ||||||
Change in valuation allowance | -0.6 | -101.1 | ||||||
Expenses not deductible for tax purposes | 0.5 | 2.8 | ||||||
Lapse of statute of limitation on uncertain tax position | -6.8 | — | ||||||
Increase in uncertain tax positions | — | 0.4 | ||||||
Other | -0.3 | 0.5 | ||||||
Income tax (benefit) expense | 30 | % | -63.4 | % | ||||
The Company follows the authoritative guidance issued by the FASB that pertains to the accounting for uncertain tax matters. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | ||||||||
Balance at January 1, 2012 | $ | 301,000 | ||||||
Interest accrual | 14,000 | |||||||
Balance at January 1, 2013 | 315,000 | |||||||
Interest accrual | 14,000 | |||||||
Lapse of statute of limitation on uncertain tax position | -329,000 | |||||||
Balance at December 31, 2013 | $ | — | ||||||
Interest and penalties, if any, related to income tax liabilities are included in income tax expense. | ||||||||
The Company files a consolidated Federal tax return. The Company and certain of its subsidiaries file tax returns in various U.S. state jurisdictions. With few exceptions, the years that remain subject to examination are the years ended December 31, 2010 through December 31, 2012. During the current year, the Company received notification from the Internal Revenue Service of an examination for the year ended December 31, 2010. | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
NOTE 8—COMMITMENTS AND CONTINGENCIES | |||||
(a) The Company maintains a contributory defined contribution plan that covers all eligible employees. All contributions to this plan are discretionary. Amounts recognized as expense for contributions to this plan were $363,000 and $388,000 for the years ended December 31, 2013 and 2012, respectively. | |||||
(b) Effective January 1, 2012, the Company entered into an employment agreement with its Chief Executive Officer (“CEO”). The employment agreement provides for the CEO to serve as the Company’s President and CEO and, if elected by the Board of Directors, Chairman of the Board, for a term expiring on December 31, 2014, unless sooner terminated pursuant to the provisions of the employment agreement. Pursuant to the employment agreement, the CEO will receive a minimum annual base salary of $650,000, which will be reviewed annually by the compensation committee of the Board and may be increased, but not decreased, from time to time. The CEO is eligible for an annual discretionary incentive payment under the Company’s Executive 162(m) Bonus Plan. The CEO also receives (i) senior executive level employee benefits, (ii) an annual payment of $45,064 to cover premiums on a life insurance policy, (iii) a Company provided automobile and payment of certain related expenses, and (iv) payment and/or reimbursement of certain legal and consultants’ fees in connection with the employment agreement. | |||||
In the event the CEO’s employment is terminated by the Company without cause (as defined in the employment agreement), or the CEO resigns for good reason (as defined in the employment agreement) then, subject to his execution of a general release, the CEO will continue to receive his base salary for 18 months, a pro rata bonus for the year of termination, and the Company will pay his monthly COBRA premiums until the earlier of (a) 18 months from the date of termination, (b) his becoming eligible for medical benefits from a subsequent employer, or (c) his becoming ineligible for COBRA. | |||||
In the event the CEO’s employment is terminated by the Company without cause or the CEO resigns for good reason within two years following a change in control (as defined in the employment agreement) or, under certain circumstances, within six months prior to a change in control, then subject to the CEO’s execution of a general release, he will receive the amounts set forth in the previous paragraph either in whole or in part in a lump sum, subject to his execution of a general release. Notwithstanding the foregoing, in the event an excise tax (as defined in the employment agreement) would otherwise be incurred by the CEO, amounts paid upon a change in control will be reduced to 2.99 times his “base amount” (as determined in accordance with Sections 280G of the Internal Revenue Code of 1986, as amended). | |||||
Pursuant to the employment agreement, during term of his employment and for a period of twelve months after termination of his employment, the CEO is prohibited from (i) competing with the Company, (ii) soliciting or hiring the Company’s employees, representatives or agents, or (iii) soliciting any of the Company’s customers. The employment agreement also prohibits the CEO from using or disclosing any of the Company’s non-public, proprietary or confidential information. | |||||
(c) At December 31, 2013 and 2012, the Company had open purchase order commitments totaling approximately $10,443,000 and $15,723,000, respectively. | |||||
(d) The Company is a defendant or co-defendant in various actions brought about in the ordinary course of conducting its business. The Company does not believe that any of these actions are material to the consolidated financial position, results of operations or cash flows of the Company. | |||||
(e) The Company leases certain facilities and equipment through 2021. Generally, the facility leases carry renewal provisions and require the Company to pay maintenance costs. Rental payments may be adjusted for increases in taxes and insurance above specified amounts. Operating lease expense for 2013 and 2012 was $308,000 and $220,000, respectively. Future minimum payments under non-cancelable operating leases with initial or remaining terms of more than one year as of December 31, 2013 were as follows: | |||||
2014 | $ | 273,000 | |||
2015 | 153,000 | ||||
2016 | 86,000 | ||||
2017 | 55,000 | ||||
2018 | 55,000 | ||||
Thereafter | 115,000 | ||||
$ | 737,000 | ||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Reporting [Abstract] | ' | ||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||
NOTE 9—BUSINESS SEGMENTS | |||||||||||
The Company has organized its business into two reportable business segments: “Tools” and “Hardware”. The Company is organized around these two distinct product segments, each of which has very different end users. For reporting purposes, Florida Pneumatic, and Hy-Tech are combined in the Tools segment, with Nationwide being the sole entity reported 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 described in Note 1. | |||||||||||
The following table presents financial information by segment for the years ended December 31, 2013 and 2012. Segment operating income excludes general corporate expenses, interest expense and income taxes. Identifiable assets are those assets directly owned or utilized by the particular business. | |||||||||||
Year ended December 31, 2013 | Consolidated | Tools | Hardware | ||||||||
Net revenues from unaffiliated customers | $ | 76,066,000 | $ | 55,574,000 | $ | 20,492,000 | |||||
Segment operating income | $ | 10,328,000 | $ | 7,204,000 | $ | 3,124,000 | |||||
General corporate expense | -5,321,000 | ||||||||||
Interest expense | -403,000 | ||||||||||
Income before income taxes | $ | 4,604,000 | |||||||||
Segment assets | $ | 49,893,000 | $ | 38,984,000 | $ | 10,909,000 | |||||
Corporate assets | 3,348,000 | ||||||||||
Total assets | $ | 53,241,000 | |||||||||
Long-lived assets, including $22,000 of corporate assets | $ | 16,881,000 | $ | 12,303,000 | $ | 4,556,000 | |||||
Year ended December 31, 2012 | Consolidated | Tools | Hardware | ||||||||
Net revenues from unaffiliated customers | $ | 59,871,000 | $ | 42,141,000 | $ | 17,730,000 | |||||
Segment operating income | $ | 9,397,000 | $ | 6,714,000 | $ | 2,683,000 | |||||
General corporate expense | -5,575,000 | ||||||||||
Interest expense | -526,000 | ||||||||||
Income before income taxes | $ | 3,296,000 | |||||||||
Segment assets | $ | 50,103,000 | $ | 38,062,000 | $ | 12,041,000 | |||||
Corporate assets | 5,054,000 | ||||||||||
Total assets | $ | 55,157,000 | |||||||||
Long-lived assets, including $24,000 of corporate assets | $ | 18,004,000 | $ | 13,426,000 | $ | 4,554,000 | |||||
Depreciation expense for the Tools and Hardware segments for the year ended December 31, 2013 was $1,350,000 and $195,000, respectively and $1,250,000 and $192,000, respectively, for the year ended December 31, 2012. Amortization expense for the Tools and Hardware segments for the year ended December 31, 2013 was $208,000 and $60,000, respectively and $354,000 and $58,000, respectively, for the year ended December 31, 2012. There were no impairment charges recorded in 2013 or 2012. | |||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2013 and 2012, the Company purchased approximately $882,000 and $971,000, respectively, of product from this vendor. At December 31, 2013 and 2012, the Company had trade payables to this vendor of $128,000 and $65,000, respectively. Additionally, during 2013 and 2012, the Company recorded sales to this vendor of $100,000 and $47,000, respectively. All transactions were made at arms-length. | |
SUMMARY_OF_ACCOUNTING_POLICIES1
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Consolidation, Policy [Policy Text Block] | ' | |||||||
Principles of Consolidation | ||||||||
The consolidated 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 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 product line which includes pipe and bolt dies, pipe taps, wrenches, vises and stands, pipe and tubing cutting equipment, hydrostatic test pumps, 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 and markets impact wrenches, grinders, drills, and motors. Further, it also manufacturers tools to customer unique specifications. Its customers include refineries, chemical plants, power generation, 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 (“OEM”). It also manufactures and distributes high pressure stoppers for hydrostatic testing fabricated pipe. It also 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 an importer and manufacturer of door, window and fencing hardware and accessories, including rollers, hinges, window operators, sash locks, custom zinc castings and door closers. Nationwide’s products are sold through in-house sales personnel and manufacturers’ representatives to distributors, retailers and OEM customers. End users of Nationwide’s products include contractors, home builders, pool and patio distributors, OEM/private label customers and general consumers. Most of Nationwide’s sales are of products imported from Taiwan and China. | ||||||||
Additionally, Nationwide marketed a Kitchen and bath product line. However, effective November 12, 2013, Nationwide sold to an unrelated third party, all inventory, intangibles and certain fixed assets attributable to its Kitchen and bath product line. Factors considered in reaching this decision included, but were not limited to: (i) tax incentives, (ii) dwindling net contribution margins, (iii) high levels of inventory necessary to properly serve the marketplace, (iv) narrow market penetration, and (v) required changes in product construction necessary to comply with various regulations. The net impact of this sale was immaterial to the Company’s operations. | ||||||||
Basis Of Accounting Policy [Policy Text Block] | ' | |||||||
Basis of Financial Statement Presentation | ||||||||
The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). | ||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||
Revenue Recognition | ||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been provided, the sale price is fixed or determinable, and collectability is reasonably assured. The Company sells its goods on terms which transfer title and risk of loss at a specified location, typically shipping point, port of loading or port of discharge, depending on the final destination of the goods. Revenue recognition from product sales occurs when all factors are met, including transfer of title and risk of loss, which occurs either upon shipment by the Company or upon receipt by customers at the location specified in the terms of sale. Other than standard product warranty provisions, the Company’s sales arrangements provide for no other, or insignificant, post-shipment obligations. The Company does offer rebates and other sales incentives, promotional allowances or discounts, from time to time and for certain customers, typically related to customer purchase volume, all of which are fixed or determinable and are classified as a reduction of revenue and recorded at the time of sale. The Company periodically evaluates whether an allowance for sales returns is necessary. Historically, the Company has experienced sales returns. If the Company concludes there are potential sales returns, the Company would provide any necessary provision against sales. | ||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | |||||||
Shipping and Handling Costs | ||||||||
Expenses for shipping and handling costs are included in selling, general and administrative expenses, and totaled approximately $2,177,000 and $713,000, respectively, for the years ended December 31, 2013 and 2012. | ||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents consist of cash held in bank demand deposits. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. There were no cash equivalents at December 31, 2013 and 2012. | ||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||
Financial Instruments | ||||||||
The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts payable and short-term debt approximate fair value as of December 31, 2013 and 2012 because of the relatively short-term maturity of these financial instruments. The carrying amounts reported for long-term debt approximate fair value as of December 31, 2013 and 2012 because, in general, the interest rates underlying the instruments fluctuate with market rates. | ||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||
Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to retailers, distributors and original equipment manufacturers involved in a variety of industries. The Company performs continuing credit evaluations of its customers’ financial condition, and although the Company generally does not require collateral, letters of credit may be required from customers in certain circumstances. | ||||||||
Management reviews accounts receivable to determine if any receivables will potentially be uncollectible. Factors considered in the determination include, among other factors, number of days an invoice is past due, customer historical trends, available credit ratings information, other financial data and the overall economic environment. Collection agencies may also be utilized if management so determines. | ||||||||
The Company records an allowance for doubtful accounts based on specifically identified amounts that are believed to be uncollectible. The Company also records as an additional allowance a certain percentage of aged accounts receivable, based on historical experience and the Company’s assessment of the general financial conditions affecting its customer base. If actual collection experience changes, revisions to the allowance may be required. The Company has a limited number of customers with individually large amounts due at any given balance sheet date. Any unanticipated change in the creditworthiness of any of these customers could have a material effect on the Company’s results of operations in the period in which such changes or events occur. After all reasonable attempts to collect an account receivable have failed, the amount of the receivable is written off against the allowance. Based on the information available, the Company believes that its allowance for doubtful accounts as of December 31, 2013 is adequate. However, actual write-offs might exceed the recorded allowance. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||
Concentrations of Credit Risk | ||||||||
The Company places the majority of its cash with Capital One Bank, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). Significant concentrations of credit risk may arise from the Company’s cash maintained at Capital One Bank, as from time to time cash balances may exceed the FDIC limits. | ||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable. Within our Tools segment we have two customers that in the aggregate, as of December 31, 2013 and 2012, accounted for 58.3% and 40.3% of our consolidated accounts receivable. To date, these customers, with few exceptions, are current in their payments. Additionally, in 2013 and 2012 these two customers accounted for 40.0% and 24.2%, respectively, of the Company’s revenue. | ||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, possible disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis P&F evaluates its estimates, including those related to collectability of accounts receivable, valuation of inventories, recoverability of goodwill and intangible assets and income taxes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions. | ||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||
Inventories | ||||||||
Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out method or the weighted average method. The inventory balance, which includes raw materials, labor, and manufacturing overhead costs, is recorded net of an allowance for obsolete or unmarketable inventory. Such allowance is based upon both historical experience and management’s understanding of market conditions and forecasts of future product demand. If the actual amount of obsolete or unmarketable inventory significantly exceeds the estimated allowance, the Company’s cost of sales, gross profit and net earnings would be significantly affected. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||
Property and Equipment and Depreciation and Amortization | ||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Generally, the Company capitalizes items in excess of $1,000. Minor replacements and maintenance and repair items are charged to expense as incurred. Upon disposal or retirement of assets, the cost and related accumulated depreciation are removed from the Company’s consolidated balance sheet. | ||||||||
Depreciation of buildings and machinery and equipment is computed by using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over periods ranging from 25 to 32 years, and machinery and equipment is depreciated over periods ranging from 3 to 10 years. Leasehold improvements are amortized over the life of the lease or the useful life of the related asset, whichever is shorter. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||||||
Long-Lived Assets | ||||||||
In accordance with authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) pertaining to the accounting for the impairment or disposal of long-lived assets, property and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment is performed on an entity level. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of such asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of such asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | ||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | |||||||
Goodwill and Other Intangible Assets | ||||||||
Goodwill is carried at cost less any impairment charges. Goodwill and intangible assets with indefinite lives are not amortized but are subject to an annual test for impairment at the entity unit level (operating segment or one level below an operating segment) and between annual tests in certain circumstances. In accordance with authoritative guidance issued by the FASB, the Company tests goodwill for impairment on an annual basis in the fourth quarter or more frequently if the Company believes indicators of impairment exist. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair value of the Company’s reporting units with the reporting unit’s carrying amount, including goodwill. The Company generally determines the fair value of its reporting units using the income approach methodology of valuation that includes the expected present value of future cash flows and the market valuation approach. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. | ||||||||
Intangible assets other than goodwill and intangible assets with indefinite lives are carried at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over the useful lives of the respective assets, generally five to twenty-five years. Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the amount by which the carrying value exceeds the fair value of the asset. | ||||||||
Standard Product Warranty, Policy [Policy Text Block] | ' | |||||||
Warranty Liability | ||||||||
The Company offers certain warranties against product defects for periods ranging from one to three years. Certain products carry limited lifetime warranties. The Company’s typical warranties require it to repair or replace the defective products during the warranty period at no cost to the customer. At the time the product revenue is recognized, the Company records a liability for estimated costs under its warranties. The costs are estimated based on revenue and historical experience. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. While the Company believes that its estimated liability for product warranties is adequate and that the judgment applied is appropriate, the estimated liability for the product warranties could differ materially from future actual warranty costs. | ||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||
Income Taxes | ||||||||
The Company accounts for income taxes using the asset and liability approach. This approach requires the recognition of current tax assets or liabilities for the amounts refundable or payable on tax returns for the current year, as well as the recognition of deferred tax assets or liabilities for the expected future tax consequences of temporary differences that can arise between (a) the amount of taxable income and pretax financial income for a year, such as from net operating loss carryforwards and other tax credits, and (b) the tax bases of assets or liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates. The impact on deferred tax assets and liabilities of changes in tax rates and laws, if any, is reflected in the consolidated financial statements in the period enacted. Further, we evaluate the likelihood of realizing benefit from our deferred tax assets by estimating future sources of taxable income and the impact of tax planning strategies. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. | ||||||||
The Company files a consolidated Federal tax return. P&F and certain of its subsidiaries file combined tax returns in New York and Texas. All subsidiaries file other state and local tax returns on a stand-alone basis. | ||||||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while other positions are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. For tax positions that meet the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50 percent likelihood of being realized upon ultimate settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, is reflected as a liability for unrecognized tax benefits in the consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as income taxes in the consolidated statement of income. | ||||||||
Advertising Costs, Policy [Policy Text Block] | ' | |||||||
Advertising | ||||||||
The Company expenses its costs of advertising in the period in which they are incurred. Advertising costs for the years ended December 31, 2013 and 2012 were $1,401,000 and $622,000, respectively. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||
Earnings Per Common Share | ||||||||
Basic earnings per common share exclude any dilution. It is based upon the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share reflect the effect of shares of common stock issuable upon the exercise of stock options, unless the effect on earnings is anti-dilutive. | ||||||||
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 computation of basic and diluted earnings per common share: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted income per common share: | ||||||||
Net income | $ | 3,225,000 | $ | 5,411,000 | ||||
Denominator: | ||||||||
Denominator for basic income per share—weighted average common shares outstanding | 3,686,000 | 3,641,000 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 201,000 | 107,000 | ||||||
Denominator for diluted income per share—adjusted weighted average common shares and assumed conversions | 3,887,000 | 3,748,000 | ||||||
At December 31, 2013 and 2012 and during the years then ended, there were outstanding stock options whose exercise prices were higher than the average market values for the respective periods. These options are anti-dilutive and were excluded from the computation of diluted earnings per share during the years ended December 31, 2013 and 2012, respectively. The average anti-dilutive options outstanding for the years ended December 31, 2013 and 2012 were 252,391 and 373,156, respectively. | ||||||||
Compensation Related Costs, Policy [Policy Text Block] | ' | |||||||
Share-Based Compensation | ||||||||
In accordance with GAAP, the Company measures and recognizes compensation expense for all share-based payment awards based on estimated fair values. Share-based compensation expense is included in selling, general and administrative expense on the accompanying consolidated statements of income. See Note 6 for additional information. | ||||||||
GAAP requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statement of income. The Company records compensation expense ratably over the vesting periods. The Company estimates forfeitures at the time of grant and revises this estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) as its method of valuation for share-based awards granted. The Company’s determination of fair value of share-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards and the expected term of the awards. | ||||||||
Treasury Stock [Policy Text Block] | ' | |||||||
Treasury Stock | ||||||||
Treasury stock is recorded at net acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. | ||||||||
New Accounting Pronouncements Policy [Policy Text Block] | ' | |||||||
Adoption of New Accounting Pronouncements | ||||||||
The Company does not believe that any recently issued accounting standards if adopted would have a material effect on its consolidated financial statements. | ||||||||
SUMMARY_OF_ACCOUNTING_POLICIES2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
The following table sets forth the computation of basic and diluted earnings per common share: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted income per common share: | ||||||||
Net income | $ | 3,225,000 | $ | 5,411,000 | ||||
Denominator: | ||||||||
Denominator for basic income per share—weighted average common shares outstanding | 3,686,000 | 3,641,000 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 201,000 | 107,000 | ||||||
Denominator for diluted income per share—adjusted weighted average common shares and assumed conversions | 3,887,000 | 3,748,000 | ||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts receivable—net consists of: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Accounts receivable | $ | 8,975,000 | $ | 6,953,000 | ||||
Allowance for doubtful accounts | -236,000 | -278,000 | ||||||
$ | 8,739,000 | $ | 6,675,000 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories—net consist of: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Raw materials | $ | 1,836,000 | $ | 2,093,000 | ||||
Work in process | 475,000 | 888,000 | ||||||
Finished goods | 22,924,000 | 23,357,000 | ||||||
25,235,000 | 26,338,000 | |||||||
Reserve for obsolete and slow-moving inventories | -2,261,000 | -2,265,000 | ||||||
$ | 22,974,000 | $ | 24,073,000 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||||||||||||
Goodwill: | Consolidated | Tools | Hardware | |||||||||||||||||
Balance, December 31, 2013 and 2012 | $ | 5,150,000 | $ | 3,277,000 | $ | 1,873,000 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | |||||||||||||||||||
Other intangible assets: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Cost | Accumulated | Net book | Cost | Accumulated | Net book | |||||||||||||||
amortization | value | amortization | value | |||||||||||||||||
Customer relationships | $ | 5,070,000 | $ | 4,087,000 | $ | 983,000 | $ | 5,070,000 | $ | 3,906,000 | $ | 1,164,000 | ||||||||
Trademarks | 199,000 | — | 199,000 | 199,000 | — | 199,000 | ||||||||||||||
Drawings | 290,000 | 97,000 | 193,000 | 290,000 | 85,000 | 205,000 | ||||||||||||||
Licenses | 305,000 | 178,000 | 127,000 | 305,000 | 121,000 | 184,000 | ||||||||||||||
Totals | $ | 5,864,000 | $ | 4,362,000 | $ | 1,502,000 | $ | 5,864,000 | $ | 4,112,000 | $ | 1,752,000 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||||||||
Amortization expense for each of the next five years and thereafter is estimated to be as follows | ||||||||||||||||||||
2014 | $ | 233,000 | ||||||||||||||||||
2015 | 233,000 | |||||||||||||||||||
2016 | 187,000 | |||||||||||||||||||
2017 | 175,000 | |||||||||||||||||||
2018 | 175,000 | |||||||||||||||||||
Thereafter | 301,000 | |||||||||||||||||||
$ | 1,304,000 | |||||||||||||||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule Of Applicable Margin For Borrowings [Table Text Block] | ' | |||||||
LIBOR | Base Rate | |||||||
Range of Applicable Margins added to Revolver borrowings during: | ||||||||
2013 | 1.75 points to 2.25 points | 0.75 points to 1.25 points | ||||||
2012 | 2.00 points to 2.75 points | 1.00 points to 1.75 points | ||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Long-term debt consists of: | ||||||||
December 31, 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) | $ | 6,720,000 | $ | 7,000,000 | ||||
Capex Term Loan - $6,000 payable monthly May 1, 2012 through April 1, 2017. | 254,000 | 330,000 | ||||||
Capex Term Loan - $9,000 payable monthly October 1, 2012 through September 1, 2017. | 389,000 | 493,000 | ||||||
7,363,000 | 7,823,000 | |||||||
Less current maturities | 460,000 | 460,000 | ||||||
$ | 6,903,000 | $ | 7,363,000 | |||||
STOCK_OPTIONS_STOCK_COMPENSATI1
STOCK OPTIONS - STOCK COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||||||||
The Company estimated the fair value of its common stock options using the following assumptions: | |||||||||||||||||||||||||||
For the years ended | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Risk-free interest rate | 1.82 | % | Ranging from 1.64% to 1.74 | % | |||||||||||||||||||||||
Expected term | 10 years | 10 years | |||||||||||||||||||||||||
Volatility | 81.27 | % | Ranging from 81.47% to 81.44 | % | |||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||||||||
Weighted-average fair value of options granted | $ | 6.72 | Ranging from $3.67 to $4.05 | ||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||||||
The following table contains information on the status of the Company’s stock options: | |||||||||||||||||||||||||||
Number | Weighted Average | Aggregate | |||||||||||||||||||||||||
of | Exercise Price | Intrinsic | |||||||||||||||||||||||||
Shares | per share | Value | |||||||||||||||||||||||||
Outstanding, January 1, 2012 | 655,124 | $ | 6.5 | ||||||||||||||||||||||||
Granted | 42,000 | 4.93 | |||||||||||||||||||||||||
Exercised | (52,000 | ) | 5.85 | ||||||||||||||||||||||||
Expired | (60,436 | ) | 6.09 | ||||||||||||||||||||||||
Outstanding, December 31, 2012 | 584,688 | 6.48 | |||||||||||||||||||||||||
Granted | 71,500 | 8.21 | |||||||||||||||||||||||||
Exercised | (22,000 | ) | 3.8 | ||||||||||||||||||||||||
Expired | (1,000 | ) | 11.2 | ||||||||||||||||||||||||
Outstanding, December 31, 2013 | 633,188 | $ | 6.76 | $ | 951,000 | ||||||||||||||||||||||
Vested, December 31, 2013 | 511,688 | $ | 6.76 | $ | 841,000 | ||||||||||||||||||||||
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, all of which are expected to vest: | |||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Option | Weighted Average | Option | Weighted Average | ||||||||||||||||||||||||
Shares | Grant-Date | Shares | Grant-Date | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||
Non-vested shares, beginning of year | 141,000 | $ | 2.94 | 174,667 | $ | 2.43 | |||||||||||||||||||||
Granted | 71,500 | 6.72 | 42,000 | 4.03 | |||||||||||||||||||||||
Vested | (91,000 | ) | 2.64 | (75,667 | ) | 2.37 | |||||||||||||||||||||
Forfeited | — | — | — | ||||||||||||||||||||||||
Non-vested shares, end of year | 121,500 | $ | 5.38 | 141,000 | $ | 2.94 | |||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||||||||
Options outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of Exercise | Number | Weighted Average | Weighted | Number | Weighted | Weighted | |||||||||||||||||||||
Prices | outstanding | Remaining | Average | exercisable | Average | Average | |||||||||||||||||||||
Contractual | Exercise | Life | Exercise Price | ||||||||||||||||||||||||
Life (Years) | Price | ||||||||||||||||||||||||||
$ | 7.90 - $8.06 | 115,688 | 0.5 | $ | 8.06 | 115,688 | 0.5 | $ | 8.06 | ||||||||||||||||||
$ | 14.44 - $16.68 | 24,500 | 1.5 | $ | 16.5 | 24,500 | 1.5 | $ | 16.5 | ||||||||||||||||||
$ | 11.2 | 87,500 | 3.5 | $ | 11.2 | 87,500 | 3.5 | $ | 11.2 | ||||||||||||||||||
$ | 4.16 | 170,000 | 4.5 | $ | 4.16 | 170,000 | 4.5 | $ | 4.16 | ||||||||||||||||||
$ | 3.05 | 60,000 | 7 | $ | 3.05 | 60,000 | 7 | $ | 3.05 | ||||||||||||||||||
$ | 4.48 - $4.95 | 104,000 | 7.8 | $ | 4.8 | 54,000 | 7.7 | $ | 4.83 | ||||||||||||||||||
$ | 8.21 | 71,500 | 9.3 | $ | 8.21 | — | — | — | |||||||||||||||||||
633,188 | 4.8 | $ | 6.76 | 511,688 | 3.9 | $ | 6.76 | ||||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||
Income tax expense (benefit) in the consolidated statements of income consists of: | ||||||||
Years Ended December 31, | ||||||||
2013 | 2012 | |||||||
Current: | ||||||||
Federal | $ | -317,000 | $ | 54,000 | ||||
State and local | 108,000 | 81,000 | ||||||
Total current | -209,000 | 135,000 | ||||||
Deferred: | ||||||||
Federal | 1,471,000 | -2,171,000 | ||||||
State and local | 117,000 | -79,000 | ||||||
Total deferred | 1,588,000 | -2,250,000 | ||||||
Totals | $ | 1,379,000 | $ | -2,115,000 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
Deferred tax assets (liabilities) consist of: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred tax assets—current: | ||||||||
Bad debt reserves | $ | 86,000 | $ | 103,000 | ||||
Inventory reserves | 989,000 | 1,005,000 | ||||||
Warranty and other reserves | 314,000 | 211,000 | ||||||
1,389,000 | 1,319,000 | |||||||
Valuation allowance | -11,000 | -23,000 | ||||||
1,378,000 | 1,296,000 | |||||||
Deferred tax liabilities—current: | ||||||||
Prepaid expenses | -210,000 | -157,000 | ||||||
Net deferred tax assets—current | $ | 1,168,000 | $ | 1,139,000 | ||||
Deferred tax assets—non-current | ||||||||
Intangibles | $ | — | $ | 1,982,000 | ||||
Goodwill | — | 1,407,000 | ||||||
Federal net operating loss | 2,195,000 | 669,000 | ||||||
State net operating loss | 614,000 | 449,000 | ||||||
Tax credits | 128,000 | 108,000 | ||||||
Stock based compensation | 455,000 | 319,000 | ||||||
Other | 1,000 | 24,000 | ||||||
3,393,000 | 4,958,000 | |||||||
Valuation allowance | -617,000 | -633,000 | ||||||
2,776,000 | 4,325,000 | |||||||
Deferred tax liabilities—non-current: | ||||||||
Depreciation | -1,032,000 | -1,114,000 | ||||||
Intangibles | -144,000 | — | ||||||
Goodwill | -6,000 | — | ||||||
-1,182,000 | -1,114,000 | |||||||
Net deferred tax assets—non-current | $ | 1,594,000 | $ | 3,211,000 | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
A reconciliation of the Federal statutory rate to the total effective tax rate applicable to income from continuing operations is as follows: | ||||||||
Years ended December 31, | ||||||||
2013 | 2012 | |||||||
Federal income tax computed at statutory rates | 34 | % | 34 | % | ||||
(Decrease) increase in taxes resulting from: | ||||||||
State and local taxes, net of Federal tax benefit | 3.2 | — | ||||||
Change in valuation allowance | -0.6 | -101.1 | ||||||
Expenses not deductible for tax purposes | 0.5 | 2.8 | ||||||
Lapse of statute of limitation on uncertain tax position | -6.8 | — | ||||||
Increase in uncertain tax positions | — | 0.4 | ||||||
Other | -0.3 | 0.5 | ||||||
Income tax (benefit) expense | 30 | % | -63.4 | % | ||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | |||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | ||||||||
Balance at January 1, 2012 | $ | 301,000 | ||||||
Interest accrual | 14,000 | |||||||
Balance at January 1, 2013 | 315,000 | |||||||
Interest accrual | 14,000 | |||||||
Lapse of statute of limitation on uncertain tax position | -329,000 | |||||||
Balance at December 31, 2013 | $ | — | ||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Future minimum payments under non-cancelable operating leases with initial or remaining terms of more than one year as of December 31, 2013 were as follows: | |||||
2014 | $ | 273,000 | |||
2015 | 153,000 | ||||
2016 | 86,000 | ||||
2017 | 55,000 | ||||
2018 | 55,000 | ||||
Thereafter | 115,000 | ||||
$ | 737,000 | ||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Segment Reporting [Abstract] | ' | ||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||
The following table presents financial information by segment for the years ended December 31, 2013 and 2012. Segment operating income excludes general corporate expenses, interest expense and income taxes. Identifiable assets are those assets directly owned or utilized by the particular business. | |||||||||||
Year ended December 31, 2013 | Consolidated | Tools | Hardware | ||||||||
Net revenues from unaffiliated customers | $ | 76,066,000 | $ | 55,574,000 | $ | 20,492,000 | |||||
Segment operating income | $ | 10,328,000 | $ | 7,204,000 | $ | 3,124,000 | |||||
General corporate expense | -5,321,000 | ||||||||||
Interest expense | -403,000 | ||||||||||
Income before income taxes | $ | 4,604,000 | |||||||||
Segment assets | $ | 49,893,000 | $ | 38,984,000 | $ | 10,909,000 | |||||
Corporate assets | 3,348,000 | ||||||||||
Total assets | $ | 53,241,000 | |||||||||
Long-lived assets, including $22,000 of corporate assets | $ | 16,881,000 | $ | 12,303,000 | $ | 4,556,000 | |||||
Year ended December 31, 2012 | Consolidated | Tools | Hardware | ||||||||
Net revenues from unaffiliated customers | $ | 59,871,000 | $ | 42,141,000 | $ | 17,730,000 | |||||
Segment operating income | $ | 9,397,000 | $ | 6,714,000 | $ | 2,683,000 | |||||
General corporate expense | -5,575,000 | ||||||||||
Interest expense | -526,000 | ||||||||||
Income before income taxes | $ | 3,296,000 | |||||||||
Segment assets | $ | 50,103,000 | $ | 38,062,000 | $ | 12,041,000 | |||||
Corporate assets | 5,054,000 | ||||||||||
Total assets | $ | 55,157,000 | |||||||||
Long-lived assets, including $24,000 of corporate assets | $ | 18,004,000 | $ | 13,426,000 | $ | 4,554,000 | |||||
SUMMARY_OF_ACCOUNTING_POLICIES3
SUMMARY OF ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Numerator for basic and diluted income per common share: | ' | ' |
Net income | $3,225,000 | $5,411,000 |
Denominator: | ' | ' |
Denominator for basic income per share - weighted average common shares outstanding | 3,686,000 | 3,641,000 |
Effect of dilutive securities: | ' | ' |
Stock options | 201,000 | 107,000 |
Denominator for diluted income per share - adjusted weighted average common shares and assumed conversions | 3,887,000 | 3,748,000 |
SUMMARY_OF_ACCOUNTING_POLICIES4
SUMMARY OF ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Shipping, Handling and Transportation Costs | $2,177,000 | $713,000 |
Property, Plant and Equipment, Cost Capitalization | 'Generally, the Company capitalizes items in excess of $1,000. | ' |
Advertising Expense | $1,401,000 | $622,000 |
Weighted average antidilutive stock options outstanding | 252,391 | 373,156 |
Building [Member] | Minimum [Member] | ' | ' |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '25 years | ' |
Building [Member] | Maximum [Member] | ' | ' |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '32 years | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' |
Sales Revenue, Segment [Member] | ' | ' |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Concentration Risk, Percentage | 40.00% | 24.20% |
Accounts Receivable [Member] | ' | ' |
Schedule of Summary Of Accounting Policies [Line Items] | ' | ' |
Concentration Risk, Percentage | 58.30% | 40.30% |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $8,975,000 | $6,953,000 |
Allowance for doubtful accounts | -236,000 | -278,000 |
Accounts Receivable, Net, Current, Total | $8,739,000 | $6,675,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory [Line Items] | ' | ' |
Raw materials | $1,836,000 | $2,093,000 |
Work in process | 475,000 | 888,000 |
Finished goods | 22,924,000 | 23,357,000 |
Inventory, Gross | 25,235,000 | 26,338,000 |
Reserve for obsolete and slow-moving inventories | -2,261,000 | -2,265,000 |
Inventories net | $22,974,000 | $24,073,000 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Goodwill | $5,150,000 | $5,150,000 |
Tools [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 3,277,000 | 3,277,000 |
Hardware [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $1,873,000 | $1,873,000 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other intangible assets: | ' | ' |
Cost | $5,864,000 | $5,864,000 |
Accumulated amortization | 4,362,000 | 4,112,000 |
Net book value | 1,502,000 | 1,752,000 |
Customer relationships [Member] | ' | ' |
Other intangible assets: | ' | ' |
Cost | 5,070,000 | 5,070,000 |
Accumulated amortization | 4,087,000 | 3,906,000 |
Net book value | 983,000 | 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 | 97,000 | 85,000 |
Net book value | 193,000 | 205,000 |
Licenses [Member] | ' | ' |
Other intangible assets: | ' | ' |
Cost | 305,000 | 305,000 |
Accumulated amortization | 178,000 | 121,000 |
Net book value | $127,000 | $184,000 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) (USD $) | Dec. 31, 2013 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Line Items] | ' |
2014 | $233,000 |
2015 | 233,000 |
2016 | 187,000 |
2017 | 175,000 |
2018 | 175,000 |
Thereafter | 301,000 |
Finite-Lived Intangible Assets, Net | $1,304,000 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Amortization of other intangible assets | $250,000 | $398,000 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life (in years) | '6 years 9 months 18 days | '7 years 6 months |
DEBT_Details
DEBT (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Minimum [Member] | ' | ' |
Schedule Of Applicable Margin For Borrowings [Line Items] | ' | ' |
Revolver borrowings, LIBOR | 1.75% | 2.00% |
Revolver borrowings, Base Rate | 0.75% | 1.00% |
Maximum [Member] | ' | ' |
Schedule Of Applicable Margin For Borrowings [Line Items] | ' | ' |
Revolver borrowings, LIBOR | 2.25% | 2.75% |
Revolver borrowings, Base Rate | 1.25% | 1.75% |
DEBT_Details_1
DEBT (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Long Term Debt and Capital Lease Obligations Current and Noncurrent | $7,363,000 | $7,823,000 |
Less current maturities | 460,000 | 460,000 |
Long-term Debt and Capital Lease Obligations | 6,903,000 | 7,363,000 |
Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 6,720,000 | 7,000,000 |
Capex Term Loan One [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | 254,000 | 330,000 |
Capex Term Loan Two [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt | $389,000 | $493,000 |
DEBT_Details_Textual
DEBT (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 19, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Capex Term Loan One [Member] | Capex Term Loan One [Member] | Capex Term Loan Two [Member] | Capex Term Loan Two [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Long-Term Debt [Member] | Long-Term Debt [Member] | Capex Term Loan [Member] | Capex Term Loan [Member] | Capex Term Loan [Member] | Capex Term Loan [Member] | Base Rate Borrowing [Member] | Base Rate Borrowing [Member] | Base Rate Borrowing [Member] | Base Rate Borrowing [Member] | |||
Repayment Term One [Member] | Repayment Term Two [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Borrowing- Credit Agreement- original | $29,423,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revovling Credit Facility, Maximum Borrowing Capacity | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 360,000 | 2,793,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving Credit Facility - Applicable Loan Margins Percentage Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.00% | 0.75% | 1.00% |
Monthly Repayment Of Term Loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000 | 6,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | 'each month | ' | ' | ' | 'monthly | 'monthly | 'monthly | ' | 'monthly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | ' | 1-Dec-17 | 31-Dec-12 | 1-Apr-17 | ' | 1-Sep-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | 6,720,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment, Principal | ' | ' | ' | ' | 23,000 | 34,000 | 6,000 | ' | 9,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Date of First Required Payment | ' | ' | ' | ' | 1-Jan-13 | ' | 1-May-12 | ' | 1-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan advances | 0 | 3,289,000 | ' | ' | ' | ' | ' | 380,000 | ' | 519,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 403,000 | 526,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 254,000 | 325,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 460,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 460,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 460,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 5,983,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly Repayment Of Loan As Per Amended Will | $23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' |
STOCK_OPTIONS_STOCK_COMPENSATI2
STOCK OPTIONS - STOCK COMPENSATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | 1.82% | ' |
Expected term (in years) | '10 years | '10 years |
Volatility | 81.27% | ' |
Dividend yield | 0.00% | 0.00% |
Weighted-average fair value of options granted | $6.72 | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | ' | 1.64% |
Volatility | ' | 81.47% |
Weighted-average fair value of options granted | ' | 3.67 |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | ' | 1.74% |
Volatility | ' | 81.44% |
Weighted-average fair value of options granted | ' | 4.05 |
STOCK_OPTIONS_STOCK_COMPENSATI3
STOCK OPTIONS - STOCK COMPENSATION (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Shares, Outstanding | 584,688 | 655,124 |
Number of Shares, Granted | 71,500 | 42,000 |
Number of Shares, Exercised | -22,000 | -52,000 |
Number of Shares, Expired | -1,000 | -60,436 |
Number of Shares, Outstanding | 633,188 | 584,688 |
Number of Shares, Vested | 511,688 | ' |
Weighted Average Exercise Price per share, Outstanding | $6.48 | $6.50 |
Weighted Average Exercise Price per share, Granted | $8.21 | $4.93 |
Weighted Average Exercise Price per share, Exercised | $3.80 | $5.85 |
Weighted Average Exercise Price per share, Expired | $11.20 | $6.09 |
Weighted Average Exercise Price per share, Outstanding | $6.76 | $6.48 |
Weighted Average Exercise Price per share,Vested | $6.76 | ' |
Aggregate Intrinsic Value, Outstanding | $951,000 | ' |
Aggregate Intrinsic Value, Vested | $841,000 | ' |
STOCK_OPTIONS_STOCK_COMPENSATI4
STOCK OPTIONS - STOCK COMPENSATION (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Non-vested shares, beginning of year | 141,000 | 174,667 |
Option Shares, Granted | 71,500 | 42,000 |
Option Shares, Vested | -91,000 | -75,667 |
Option Shares, Forfeited | 0 | 0 |
Non-vested shares, end of year | 121,500 | 141,000 |
Non-vested shares, beginning of year | $2.94 | $2.43 |
Weighted Average Grant-Date Fair Value, Granted | $6.72 | $4.03 |
Weighted Average Grant-Date Fair Value, Vested | $2.64 | $2.37 |
Weighted Average Grant-Date Fair Value, Forfeited | ' | $0 |
Non-vested shares, end of year | $5.38 | $2.94 |
STOCK_OPTIONS_STOCK_COMPENSATI5
STOCK OPTIONS - STOCK COMPENSATION (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options outstanding,Number | 633,188 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '4 years 9 months 18 days |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $6.76 |
Options Exercisable, Number exercisable | 511,688 |
Options Exercisable, Weighted Average Life (Years) | '3 years 10 months 24 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.76 |
Exercise Price Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $7.90 |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $8.06 |
Options outstanding,Number | 115,688 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '6 months |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $8.06 |
Options Exercisable, Number exercisable | 115,688 |
Options Exercisable, Weighted Average Life (Years) | '6 months |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $8.06 |
Exercise Price Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $14.44 |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $16.68 |
Options outstanding,Number | 24,500 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '1 year 6 months |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $16.50 |
Options Exercisable, Number exercisable | 24,500 |
Options Exercisable, Weighted Average Life (Years) | '1 year 6 months |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $16.50 |
Exercise Price Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices (in dollars per share) | $11.20 |
Options outstanding,Number | 87,500 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '3 years 6 months |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $11.20 |
Options Exercisable, Number exercisable | 87,500 |
Options Exercisable, Weighted Average Life (Years) | '3 years 6 months |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $11.20 |
Exercise Price Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices (in dollars per share) | $4.16 |
Options outstanding,Number | 170,000 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '4 years 6 months |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $4.16 |
Options Exercisable, Number exercisable | 170,000 |
Options Exercisable, Weighted Average Life (Years) | '4 years 6 months |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $4.16 |
Exercise Price Range Five [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices (in dollars per share) | $3.05 |
Options outstanding,Number | 60,000 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '7 years |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $3.05 |
Options Exercisable, Number exercisable | 60,000 |
Options Exercisable, Weighted Average Life (Years) | '7 years |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.05 |
Exercise Price Range Six [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $4.48 |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $4.95 |
Options outstanding,Number | 104,000 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '7 years 9 months 18 days |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $4.80 |
Options Exercisable, Number exercisable | 54,000 |
Options Exercisable, Weighted Average Life (Years) | '7 years 8 months 12 days |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $4.83 |
Exercise Price Range Seven [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices (in dollars per share) | $8.21 |
Options outstanding,Number | 71,500 |
Options outstanding, Weighted Average Remaining Contractual Life ( in years) | '9 years 3 months 18 days |
Options outstanding, Weighted Average Exercise Price (in dollars per share) | $8.21 |
Options Exercisable, Number exercisable | 0 |
Options Exercisable, Weighted Average Life (Years) | '0 years |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $0 |
STOCK_OPTIONS_STOCK_COMPENSATI6
STOCK OPTIONS - STOCK COMPENSATION (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 28, 2013 | |
Incentive Stock Option Plan 2012 [Member] | Incentive Stock Option Plan 2002 [Member] | Stock Compensation Plan [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Stock Appreciation Rights (Sars) [Member] | Non Employee Director [Member] | Randall [Member] | Common Class A [Member] | ||||
Incentive Stock Option Plan 2012 [Member] | Incentive Stock Option Plan 2012 [Member] | Employees and Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $321,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000 |
Share Based Compensation Arrangement By Share Based Payment Award Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Stock Option Plan, Terms and Conditions | 'the term of each option, which may not exceed ten years (or five years in the case of an incentive stock option granted to a 10% stockholder), the exercise price, the vesting schedule (if any), and the other material terms of each option. No stock option may have an exercise price less than the fair market value of the Common Stock at the time of grant (or, in the case of an incentive stock option granted to a 10% stockholder, 110% of fair market value). | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Appreciation Award Description | '1.5 shares for every share granted. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | ' | ' | ' | ' | ' | 65,000 | 165,000 | ' | ' | ' | 1,000,000 | 35,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 199,512 | 276,007 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding | 633,188 | 584,688 | 655,124 | 113,500 | 519,688 | ' | 666 | 666 | 3,330 | 4,662 | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Nonvested Percentage | 100.00% | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value of options granted | $6.72 | ' | ' | ' | ' | ' | ' | ' | $8.95 | $5.51 | ' | ' | ' | ' |
Restricted stock-based compensation | 40,000 | 3,000 | ' | ' | ' | ' | ' | ' | 30,000 | 26,000 | ' | ' | ' | ' |
Share Based Compensation Stock Option Plan Authorized | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation | $338,000 | $192,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | ' | ' |
Federal | ($317,000) | $54,000 |
State and local | 108,000 | 81,000 |
Total current | -209,000 | 135,000 |
Deferred: | ' | ' |
Federal | 1,471,000 | -2,171,000 |
State and local | 117,000 | -79,000 |
Total deferred | 1,588,000 | -2,243,000 |
Totals | $1,379,000 | ($2,115,000) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets - current: | ' | ' |
Bad debt reserves | $86,000 | $103,000 |
Inventory reserves | 989,000 | 1,005,000 |
Warranty and other reserves | 314,000 | 211,000 |
Deferred income taxes - gross | 1,389,000 | 1,319,000 |
Valuation allowance | -11,000 | -23,000 |
Deferred income taxes - net | 1,378,000 | 1,296,000 |
Deferred tax liabilities - current: | ' | ' |
Prepaid expenses | -210,000 | -157,000 |
Net deferred tax assets - current | 1,168,000 | 1,139,000 |
Deferred tax assets - non-current | ' | ' |
Intangibles | 0 | 1,982,000 |
Goodwill | 0 | 1,407,000 |
Federal net operating loss | 2,195,000 | 669,000 |
State net operating loss | 614,000 | 449,000 |
Tax credits | 128,000 | 108,000 |
Stock based compensation | 455,000 | 319,000 |
Other | 1,000 | 24,000 |
Deferred Tax Assets, Gross, Noncurrent | 3,393,000 | 4,958,000 |
Valuation allowance | -617,000 | -633,000 |
DEFERRED INCOME TAXES - net | 2,776,000 | 4,325,000 |
Deferred tax liabilities - non-current: | ' | ' |
Depreciation | -1,032,000 | -1,114,000 |
Intangibles | -144,000 | 0 |
Goodwill | -6,000 | 0 |
Deferred Tax Liabilities, Net, Noncurrent | -1,182,000 | -1,114,000 |
Net deferred tax assets - non-current | $1,594,000 | $3,211,000 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' |
Federal income tax computed at statutory rates | 34.00% | 34.00% |
(Decrease) increase in taxes resulting from: | ' | ' |
State and local taxes, net of Federal tax benefit | 3.20% | 0.00% |
Change in valuation allowance | -0.60% | -101.10% |
Expenses not deductible for tax purposes | 0.50% | 2.80% |
Lapse of statute of limitation on uncertain tax position | -6.80% | 0.00% |
Increase in uncertain tax positions | 0.00% | 0.40% |
Other | -0.30% | 0.50% |
Income tax (benefit) expense | 30.00% | -63.40% |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' |
Balance at January 1 | $315,000 | $301,000 |
Interest accrual | 14,000 | 14,000 |
Lapse of statute of limitation on uncertain tax position | -329,000 | ' |
Balance at December 31 | $0 | $315,000 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ' |
Operating Loss Carryforwards | $6,500,000 |
Operating Loss Carryforwards Expiration Date Description | 'expire in 2030 through 2033. |
State and Local Jurisdiction [Member] | ' |
Income Tax Disclosure [Line Items] | ' |
Operating Loss Carryforwards | $29,000,000 |
Operating Loss Carryforwards Expiration Date Description | 'The state net operating losses expire in 2027 through 2033. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2013 |
Schedule Of Commitments And Contingencies [Line Items] | ' |
2014 | $273,000 |
2015 | 153,000 |
2016 | 86,000 |
2017 | 55,000 |
2018 | 55,000 |
Thereafter | 115,000 |
Total | $737,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Defined Contribution Plan, Cost Recognized | $363,000 | $388,000 |
Employment Agreement Minimum Amount Committed | 650,000 | ' |
Employment Agreement Premium On Life Insurance Policy | 45,064 | ' |
Purchase Obligation | 10,443,000 | 15,723,000 |
Operating Leases, Rent Expense | $308,000 | $220,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Net revenues from unaffiliated customers | $76,066,000 | $59,871,000 |
Segment operating income | 10,328,000 | 9,397,000 |
General corporate expense | -5,321,000 | -5,575,000 |
Interest expense | -403,000 | -526,000 |
Income before income taxes | 4,604,000 | 3,296,000 |
Segment Assets | 49,893,000 | 50,103,000 |
Corporate assets | 3,348,000 | 5,054,000 |
Total assets | 53,241,000 | 55,157,000 |
Long-lived assets | 16,881,000 | 18,004,000 |
Tools [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenues from unaffiliated customers | 55,574,000 | 42,141,000 |
Segment operating income | 7,204,000 | 6,714,000 |
Segment Assets | 38,984,000 | 38,062,000 |
Long-lived assets | 12,303,000 | 13,426,000 |
Hardware [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenues from unaffiliated customers | 20,492,000 | 17,730,000 |
Segment operating income | 3,124,000 | 2,683,000 |
Segment Assets | 10,909,000 | 12,041,000 |
Long-lived assets | $4,556,000 | $4,554,000 |
BUSINESS_SEGMENTS_Details_Text
BUSINESS SEGMENTS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Long Lived Asset Allocated To Corporate | $22,000 | $24,000 |
Tools [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Depreciation | 1,350,000 | 1,250,000 |
Amortization | 208,000 | 354,000 |
Hardware [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Depreciation | 195,000 | 192,000 |
Amortization | $60,000 | $58,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' |
Related Party Transaction, Purchases from Related Party | $882,000 | $971,000 |
Accounts Payable, Related Parties, Current | 128,000 | 65,000 |
Revenue from Related Parties | $100,000 | $47,000 |