Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 12-May-15 | |
Document Information [Line Items] | ||
Entity Registrant Name | P&F INDUSTRIES INC | |
Entity Central Index Key | 75340 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | PFIN | |
Entity Common Stock, Shares Outstanding | 3,609,870 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $659,000 | $1,011,000 |
Accounts receivable — net | 11,891,000 | 9,547,000 |
Inventories | 26,316,000 | 24,335,000 |
Deferred income taxes — net | 1,149,000 | 1,149,000 |
Prepaid expenses and other current assets | 1,989,000 | 1,511,000 |
TOTAL CURRENT ASSETS | 42,004,000 | 37,553,000 |
PROPERTY AND EQUIPMENT | ||
Land | 1,550,000 | 1,550,000 |
Buildings and improvements | 7,697,000 | 7,683,000 |
Machinery and equipment | 20,601,000 | 20,460,000 |
Property plant and equipment gross | 29,848,000 | 29,693,000 |
Less accumulated depreciation and amortization | 19,513,000 | 19,101,000 |
NET PROPERTY AND EQUIPMENT | 10,335,000 | 10,592,000 |
GOODWILL | 12,027,000 | 11,980,000 |
OTHER INTANGIBLE ASSETS — net | 12,081,000 | 12,437,000 |
OTHER ASSETS — net | 460,000 | 514,000 |
TOTAL ASSETS | 76,907,000 | 73,076,000 |
CURRENT LIABILITIES | ||
Short-term borrowings | 15,022,000 | 11,817,000 |
Accounts payable | 4,580,000 | 3,160,000 |
Accrued liabilities | 4,397,000 | 5,482,000 |
Current maturities of long-term debt | 2,904,000 | 3,167,000 |
TOTAL CURRENT LIABILITIES | 26,903,000 | 23,626,000 |
Long-term debt, less current maturities | 6,376,000 | 6,493,000 |
Deferred tax liabilities - net | 2,658,000 | 2,720,000 |
Other liabilities | 242,000 | 246,000 |
TOTAL LIABILITIES | 36,179,000 | 33,085,000 |
SHAREHOLDERS' EQUITY | ||
Preferred stock - $10 par; authorized - 2,000,000 shares; no shares issued | 0 | 0 |
Additional paid-in capital | 12,752,000 | 12,695,000 |
Retained earnings | 28,732,000 | 27,951,000 |
Treasury stock, at cost - 554,000 shares at March 31, 2015 and December 31, 2014 | -4,566,000 | -4,566,000 |
Accumulated other comprehensive loss | -336,000 | -228,000 |
TOTAL SHAREHOLDERS' EQUITY | 40,728,000 | 39,991,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 76,907,000 | 73,076,000 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common stock | 4,146,000 | 4,139,000 |
Common Class B [Member] | ||
SHAREHOLDERS' EQUITY | ||
Common stock | $0 | $0 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 554,000 | 554,000 |
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 | 4,146,000 | 4,139,000 |
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 AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net revenue | $19,826,000 | $15,932,000 |
Cost of sales | 12,307,000 | 9,897,000 |
Gross profit | 7,519,000 | 6,035,000 |
Selling, general and administrative expenses | 6,096,000 | 5,227,000 |
Operating income | 1,423,000 | 808,000 |
Interest expense | 192,000 | 89,000 |
Income before income taxes | 1,231,000 | 719,000 |
Income tax expense | 450,000 | 257,000 |
Net income | 781,000 | 462,000 |
Basic earnings per share (in dollars per share) | $0.22 | $0.13 |
Diluted earnings per share (in dollars per share) | $0.21 | $0.12 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 3,589,000 | 3,694,000 |
Diluted (in shares) | 3,746,000 | 3,878,000 |
Net income | 781,000 | 462,000 |
Other comprehensive loss - foreign currency translation adjustment | -108,000 | 0 |
Total comprehensive income | $673,000 | $462,000 |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Class A [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] | Accumulated other comprehensive (loss) [Member] |
Balance at Dec. 31, 2014 | $39,991,000 | $4,139,000 | $12,695,000 | $27,951,000 | ($4,566,000) | ($228,000) |
Balance (in shares) at Dec. 31, 2014 | 4,139,000 | -554,000 | ||||
Net income | 781,000 | 0 | 0 | 781,000 | 0 | 0 |
Exercise of stock options | 20,000 | 7,000 | 13,000 | 0 | 0 | 0 |
Exercise of stock options (in shares) | 7,000 | 0 | ||||
Restricted common stock compensation | 6,000 | 0 | 6,000 | 0 | 0 | 0 |
Stock-based compensation | 38,000 | 0 | 38,000 | 0 | 0 | 0 |
Foreign currency translation adjustment | -108,000 | 0 | 0 | 0 | 0 | -108,000 |
Balance at Mar. 31, 2015 | $40,728,000 | $4,146,000 | $12,752,000 | $28,732,000 | ($4,566,000) | ($336,000) |
Balance (in shares) at Mar. 31, 2015 | 4,146,000 | -554,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $781,000 | $462,000 |
Non-cash charges: | ||
Depreciation and amortization | 416,000 | 374,000 |
Amortization of other intangible assets | 324,000 | 58,000 |
Amortization of debt issue costs | 28,000 | 22,000 |
Provision for (recovery of) losses on accounts receivable - net | 5,000 | -8,000 |
Stock-based compensation | 38,000 | 90,000 |
Loss on sale of fixed assets | 4,000 | 0 |
Restricted stock-based compensation | 6,000 | 7,000 |
Deferred income taxes | -54,000 | 231,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -2,373,000 | -1,142,000 |
Inventories | -2,097,000 | 285,000 |
Prepaid expenses and other current assets | -479,000 | -49,000 |
Other assets | 26,000 | 11,000 |
Accounts payable | 1,435,000 | -511,000 |
Accrued liabilities | -1,071,000 | -1,249,000 |
Other liabilities | -4,000 | -4,000 |
Total adjustments | -3,796,000 | -1,885,000 |
Net cash used in operating activities | -3,015,000 | -1,423,000 |
Cash Flows from Investing Activities: | ||
Capital expenditures | -184,000 | -182,000 |
Proceeds from disposal of assets | 12,000 | 0 |
Net cash used in investing activities | -172,000 | -182,000 |
Cash Flows from Financing Activities: | ||
Proceeds from exercise of stock options | 20,000 | 0 |
Proceeds from short-term borrowings | 18,809,000 | 15,712,000 |
Repayments of short-term borrowings | -15,604,000 | -13,822,000 |
Repayments of term loans | -365,000 | -115,000 |
Repayments of notes payable | -11,000 | 0 |
Net cash provided by financing activities | 2,849,000 | 1,775,000 |
Effect of exchange rate changes on cash | -14,000 | 0 |
Net (decrease) increase in cash | -352,000 | 170,000 |
Cash at beginning of period | 1,011,000 | 413,000 |
Cash at end of period | 659,000 | 583,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for: Interest | 161,000 | 68,000 |
Cash paid for: Income taxes | $60,000 | $18,000 |
BUSINESS_AND_SUMMARY_OF_ACCOUN
BUSINESS AND SUMMARY OF ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1 - BUSINESS AND SUMMARY OF ACCOUNTING POLICIES |
Basis of Financial Statement Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. All such adjustments are of a normal recurring nature. Results for interim periods are not necessarily indicative of results to be expected for a full year. | |
The unaudited consolidated balance sheet information as of December 31, 2014 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Form 10-K”). The interim financial statements contained herein should be read in conjunction with the 2014 Form 10-K. | |
The consolidated financial statements have been reported in U.S. dollars by translating asset and liability amounts of a foreign wholly-owned subsidiary at the closing exchange rate, equity amounts at historical rates and the results of operations and cash flow at the average of the prevailing exchange rates during the periods reported. As a result, the Company is exposed to foreign currency translation gain or losses. These gains or losses are presented in the Company’s consolidated financial statements as “Other comprehensive income (loss) - foreign currency translation adjustments”. | |
Principles of Consolidation | |
The unaudited 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. | |
The Company | |
P&F is a Delaware corporation incorporated on April 19, 1963, that 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 operates through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation (“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”). During the third quarter of 2014, the Company acquired Exhaust Technologies Inc. (“ETI”) and Universal Air Tool Company Limited (“UAT”). Both ETI and UAT are wholly-owned subsidiaries of Florida Pneumatic, and unless otherwise indicated, the operations and results of operations of Florida Pneumatic herein include ETI and UAT as of the respective dates such companies were acquired. Additionally, during the third quarter of 2014, the Company acquired substantially all the assets of Air Tool Service Company (“ATSCO”), which business operates through a wholly-owned subsidiary of Hy-Tech. Unless otherwise indicated, the results of operations of Hy-Tech herein include ATSCO from the date the business was acquired. | |
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 manufactures and distributes its own line of industrial pneumatic tools. Hy-Tech also produces and markets impact wrenches, grinders, drills, and motors. Further, it also manufactures tools to customer specifications. Its customers include refineries, chemical plants, power generation facilities, heavy construction enterprises, oil and gas and mining companies. In addition, Hy-Tech manufactures an extensive line of pneumatic tool replacement parts that are sold to original equipment manufacturers (“OEMs”), and competitively. It also manufactures and distributes high pressure stoppers for hydrostatic testing fabricated pipe, gears, sprockets, splines and racks and 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. | |
Management Estimates | |
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2014 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. | |
New Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | |
In April 2015, the Financial Accounting Standards Board issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which amends the current presentation of debt issuance costs in the financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The amendments are to be applied retrospectively and are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, but early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Business Combination Disclosure [Text Block] | NOTE 2 – ACQUISITIONS | ||||
Exhaust Technologies Inc. | |||||
On July 1, 2014, the Company acquired ETI, a developer and distributor of pneumatic tools, through a merger between a newly formed wholly-owned subsidiary of Florida Pneumatic and ETI. ETI markets its AIRCAT and NITROCAT brand pneumatic tools primarily to the automotive market. Currently, ETI’s business operates through Florida Pneumatic. The purchase price for this acquisition consisted of $10,377,000 in cash plus the assumption of certain payables. | |||||
Universal Air Tool Company Limited | |||||
On July 29, 2014, the Company acquired all of the outstanding shares of UAT, a distributor of pneumatic tools. UAT, which is located in High Wycombe, England, markets pneumatic tools to the automotive market sector primarily in the United Kingdom and Ireland. The purchase price for this acquisition consisted of approximately $1,947,000 in cash less a post-closing working capital adjustment. There is a potential contingent consideration payment due to the former shareholders of UAT of a maximum of £250,000. | |||||
Air Tool Service Company | |||||
On August 13, 2014, a newly formed wholly owned subsidiary of Hy-Tech, acquired substantially all of the assets comprising the business of ATSCO, an Ohio based corporation engaged in the design, manufacture and distribution of pneumatic tools and parts. The purchase price consisted of approximately $7,659,000 in cash and the assumption of certain liabilities, and is subject to a post-closing working capital adjustment. | |||||
All three acquisitions are included as a part of the Company’s Tool Business Segment. | |||||
The following unaudited pro-forma combined financial information gives effect to the acquisition of ETI, UAT and ATSCO as if they were consummated January 1, 2014. This unaudited pro-forma financial information is presented for information purposes only, and is not intended to present actual results that would have been attained had the acquisitions been completed as of January 1, 2014 (the beginning of the earliest period presented) or to project potential operating results as of any future date or for any future periods. | |||||
Three months ended | |||||
March 31, 2014 | |||||
(Unaudited) | |||||
Revenue | $ | 19,854,000 | |||
Net income | $ | 1,076,000 | |||
Earnings per share - basic | $ | 0.29 | |||
Earnings per share - diluted | $ | 0.28 | |||
ETI and UAT have been integrated into the business operations of Florida Pneumatic, and ATSCO has been integrated into the business operations of Hy-Tech since their respective dates of acquisition. As such, it is impracticable to determine the specific revenue and earnings directly attributable to any of the acquired businesses. | |||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share [Text Block] | NOTE 3 — EARNINGS PER SHARE | |||||||
Basic earnings per common share is based only on the average number of shares of common stock outstanding for the periods. Diluted earnings per common share reflects the effect of shares of common stock issuable upon the exercise of options, unless the effect on earnings is antidilutive. | ||||||||
Diluted earnings per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of common stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of the Company’s Class A Common Stock (“Common Stock”). The average market value for the period is used as the assumed purchase price. | ||||||||
The following table sets forth the elements of basic and diluted earnings per common share: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted earnings per common share: | ||||||||
Net income | $ | 781,000 | $ | 462,000 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share weighted average common shares outstanding | 3,589,000 | 3,694,000 | ||||||
Dilutive securities (1) | 157,000 | 184,000 | ||||||
Denominator for diluted earnings per share weighted average common shares outstanding | 3,746,000 | 3,878,000 | ||||||
(1) Dilutive securities consist of “in the money” stock options. | ||||||||
At March 31, 2015 and 2014 and during the three-month periods ended March 31, 2015 and 2014, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying Common Stock for the period. These options are anti-dilutive and are excluded from the computation of diluted earnings per share. The weighted average of anti-dilutive stock options outstanding was as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Weighted average anti-dilutive stock options outstanding | 182,000 | 299,000 | ||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 4 - STOCK-BASED COMPENSATION | |||||||||||
During the three month periods ended March 31, 2015 and 2014, the Company did not grant any stock options or issue any Common Stock awards. | ||||||||||||
The following is a summary of the changes in outstanding options during the three-month period ended March 31, 2015: | ||||||||||||
Weighted | Weighted Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual Life | Intrinsic | ||||||||||
Option Shares | Price | (Years) | Value | |||||||||
Outstanding, January 1, 2015 | 505,000 | $ | 6.51 | 4.8 | $ | 1,232,000 | ||||||
Granted | — | — | — | |||||||||
Exercised | -6,500 | 3.05 | ||||||||||
Forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Outstanding, March 31, 2015 | 498,500 | $ | 6.56 | 4.5 | $ | 845,000 | ||||||
Vested, March 31, 2015 | 437,494 | $ | 6.43 | 4.1 | $ | 820,000 | ||||||
The following is a summary of changes in non-vested options for the three months ended March 31, 2015: | ||||||||||||
Weighted Average Grant- | ||||||||||||
Option Shares | Date Fair Value | |||||||||||
Nonvested options, January 1, 2015 | 61,006 | $ | 6.14 | |||||||||
Granted | — | |||||||||||
Vested | — | |||||||||||
Forfeited | — | |||||||||||
Nonvested options, March 31, 2015 | 61,006 | $ | 6.14 | |||||||||
The number of shares of Common Stock available for issuance under the 2012 Stock Incentive Plan as of March 31, 2015 was 194,517. At March 31, 2015, there were 113,500 options outstanding issued under the 2012 Stock Incentive Plan and 385,000 options outstanding issued under the 2002 Stock Incentive Plan. | ||||||||||||
Restricted Stock | ||||||||||||
Pursuant to the 2012 Plan, the Company, in May 2014, 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 $7.43, 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 $25,000 in its selling, general and administrative expenses through May 2015. | ||||||||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5 - ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | |||||||
Accounts receivable - net consists of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Accounts receivable | $ | 12,042,000 | $ | 9,693,000 | ||||
Allowance for doubtful accounts | -151,000 | -146,000 | ||||||
$ | 11,891,000 | $ | 9,547,000 | |||||
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | NOTE 6 - INVENTORIES | |||||||
Inventories consist of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw material | $ | 2,132,000 | $ | 2,014,000 | ||||
Work in process | 1,449,000 | 1,433,000 | ||||||
Finished goods | 22,735,000 | 20,888,000 | ||||||
$ | 26,316,000 | $ | 24,335,000 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows: | ||||||||||||||||||||
Consolidated | Tools | Hardware | ||||||||||||||||||
Balance, January 1, 2015 | $ | 11,980,000 | $ | 10,107,000 | $ | 1,873,000 | ||||||||||||||
Adjustment to Acquisition of ATSCO | 62,000 | 62,000 | — | |||||||||||||||||
Currency translation adjustments | -15,000 | -15,000 | — | |||||||||||||||||
Balance, March 31, 2015 | $ | 12,027,000 | $ | 10,154,000 | $ | 1,873,000 | ||||||||||||||
Other intangible assets were as follows: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Cost | Accumulated | Net book | Cost | Accumulated | Net book | |||||||||||||||
amortization | value | amortization | value | |||||||||||||||||
Other intangible assets: | ||||||||||||||||||||
Customer relationships (1) | $ | 13,185,000 | $ | 4,760,000 | $ | 8,425,000 | $ | 13,194,000 | $ | 4,551,000 | $ | 8,643,000 | ||||||||
Trademarks and trade names (1) | 2,016,000 | — | 2,016,000 | 2,035,000 | — | 2,035,000 | ||||||||||||||
Engineering drawings | 410,000 | 130,000 | 280,000 | 410,000 | 120,000 | 290,000 | ||||||||||||||
Licensing | 305,000 | 250,000 | 55,000 | 305,000 | 235,000 | 70,000 | ||||||||||||||
Non-compete agreements (1) | 362,000 | 63,000 | 299,000 | 368,000 | 41,000 | 327,000 | ||||||||||||||
Patents | 1,205,000 | 199,000 | 1,006,000 | 1,205,000 | 133,000 | 1,072,000 | ||||||||||||||
Totals | $ | 17,483,000 | $ | 5,402,000 | $ | 12,081,000 | $ | 17,517,000 | $ | 5,080,000 | $ | 12,437,000 | ||||||||
-1 | A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations. | |||||||||||||||||||
Amortization expense for intangible assets subject to amortization was as follows: | ||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
$ | 324,000 | $ | 58,000 | |||||||||||||||||
The weighted average amortization period for intangible assets was as follows: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Customer relationships | 10.7 | 10.9 | ||||||||||||||||||
Trademarks and trade names | — | — | ||||||||||||||||||
Engineering drawings | 9.1 | 9.2 | ||||||||||||||||||
Licensing | 1 | 1.2 | ||||||||||||||||||
Non-compete agreements | 3.4 | 3.6 | ||||||||||||||||||
Patents | 6 | 6.1 | ||||||||||||||||||
Total | 9.9 | 10.1 | ||||||||||||||||||
Amortization expense for each of the next five years and thereafter is estimated to be as follows: | ||||||||||||||||||||
2016 | $ | 1,290,000 | ||||||||||||||||||
2017 | 1,235,000 | |||||||||||||||||||
2018 | 1,053,000 | |||||||||||||||||||
2019 | 966,000 | |||||||||||||||||||
2020 | 908,000 | |||||||||||||||||||
Thereafter | 4,613,000 | |||||||||||||||||||
$ | 10,065,000 | |||||||||||||||||||
DEBT
DEBT | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure [Text Block] | NOTE 8 - DEBT | |||||||
SHORT-TERM LOANS | ||||||||
The Company entered into a Loan and Security Agreement in October 2010, as amended (“Credit Agreement”), with Capital One Business Credit Corp., formerly known as Capital One Leverage Finance Corporation, as agent and lender (“COBC”). The Credit Agreement expires December 19, 2017 (the “Maturity Date”). The Credit Agreement provides for a Revolver Loan (“Revolver”), borrowings under which 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. P&F and certain of its subsidiaries are borrowers under the Credit Agreement, and their obligations are cross-guaranteed by certain other subsidiaries. Revolver borrowings bear interest at either LIBOR (London InterBank Offered Rate) or the Base Rate, as defined in the Credit Agreement (“Base Rate”), or a combination of the two, plus the Applicable Margin (the “Applicable Margin”), as defined in the Credit Agreement. 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. | ||||||||
Contemporaneously with the ATSCO acquisition in August 2014, the Company entered into an Amended and Restated Loan and Security Agreement (the “Restated Loan Agreement”) with COBC. The Restated Loan Agreement, among other things, amended the Credit Agreement by: (1) increasing the total amount of the credit facility from $29,423,000 to $33,657,000, (2) increasing the Revolver from $20,000,000 to $22,000,000, (3) creating a new $3,000,000 Term Loan, as defined in the Restated Loan Agreement (“Term Loan B”), and (4) re-designating as “Term Loan A”, the previously existing outstanding Term Loan, which relates primarily to the Company’s real property. In addition, the Restated Loan Agreement also reset certain financial covenants. | ||||||||
At March 31, 2015 and December 31, 2014, the balance of Revolver borrowings outstanding was $15,022,000 and $11,817,000, respectively. Applicable Margins added to Revolver borrowings at LIBOR and the Base Rate were 2.25% and 1.25%, respectively, at March 31, 2015 and December 31, 2014. These applicable margin rates were constant throughout the three-month period ended March 31, 2015. | ||||||||
The Company is required to provide COBC with, among other things, monthly financial statements, monthly borrowing base certificates and certificates of compliance with various financial covenants. The Company believes it is in compliance with all covenants under the Restated Loan Agreement. As part of the Restated Loan Agreement, if an event of default occurs, the interest rate would increase by 2% per annum during the period of default, in addition to other remedies provided to COBC. | ||||||||
LONG-TERM | ||||||||
The Restated Loan Agreement also provides for Term Loan A, which is secured by mortgages on the Real Property, accounts receivable, inventory and equipment. Term Loan A borrowings can be at either LIBOR, or at the Base Rate, as defined in the Restated Loan Agreement, or a combination of the two plus the Applicable Margins, which for LIBOR borrowings at March 31, 2015 and December 31, 2014 was 3.0%. The Applicable Margin for borrowings at the Base Rate was 2.0% at March 31, 2015 and December 31, 2014. | ||||||||
Additionally, the Restated Loan Agreement provides for a Term Loan B, pursuant to which the Company borrowed the maximum principal amount of $3,000,000 as part of the ATSCO acquisition. This Term Loan B is to be repaid in 36 consecutive monthly payments of $83,000, with an additional mandatory repayment each year equal to 50% of the Company’s Excess Cash Flow (as defined in the Restated Loan Agreement) for such year, if any. Term Loan B borrowings incur interest at LIBOR or the Base Rate or a combination, plus the Applicable Margins, which was 3.25% and 2.25% at March 31, 2015 and December 31, 2014. As the result of computing the Company’s Excess Cash Flow for the year 2014, in April 2015, the Company repaid $2,417,000, which was the balance of the Term Loan B at March 31, 2015 with funds available from its Revolver. | ||||||||
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”). Applicable Margins added to these Capex Term Loans at March 31, 2015 and December 31, 2014 were 3.00% and 2.00%, respectively for borrowings at LIBOR and the Base Rate, respectively. | ||||||||
Long-term debt: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Term Loan A - $23,000 payable monthly January 2013 through December 2017, balance due December 19, 2017. | $ | 6,370,000 | $ | 6,440,000 | ||||
Term Loan B - $83,000 payable monthly September 2014 through March 2015. | 2,417,000 | 2,667,000 | ||||||
Capex Term Loan - $6,000 payable monthly May 2012 through April 2017. | 158,000 | 178,000 | ||||||
Capex Term Loan - $9,000 payable monthly October 2012 through September 2017. | 260,000 | 285,000 | ||||||
Other | 75,000 | 90,000 | ||||||
9,280,000 | 9,660,000 | |||||||
Less: current maturities | 2,904,000 | 3,167,000 | ||||||
$ | 6,376,000 | $ | 6,493,000 | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 9 - RELATED PARTY TRANSACTIONS |
The president of one of the Company’s subsidiaries is part owner of one of the subsidiary’s vendors. During the three-month periods ended March 31, 2015 and 2014, the Company purchased approximately $181,000 and $263,000, respectively, of product from this vendor. At March 31, 2015 and December 31, 2014, the Company had trade payables to this vendor of $60,000 and $103,000, respectively. Additionally, during the three-month periods ended March 31, 2015 and 2014, the Company recorded sales to this vendor of $2,000 and $4,000, respectively. | |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 10 - BUSINESS SEGMENTS | ||||||||||
P&F operates in two primary lines of business, or segments: Tools and Hardware. For reporting purposes, Florida Pneumatic and Hy-Tech are combined in the Tools segment, while Nationwide is currently the only subsidiary in the Hardware segment. The Company evaluates segment performance based primarily on segment operating income. The accounting policies of each of the segments are the same as those referred to in Note 1. | |||||||||||
Three months ended March 31, 2015 | Consolidated | Tools | Hardware | ||||||||
Revenue | $ | 19,826,000 | $ | 14,559,000 | $ | 5,267,000 | |||||
Segment operating income | $ | 2,865,000 | $ | 1,908,000 | $ | 957,000 | |||||
General corporate expense | -1,442,000 | ||||||||||
Interest expense | -192,000 | ||||||||||
Earnings before income taxes | $ | 1,231,000 | |||||||||
Segment assets | $ | 75,143,000 | $ | 61,836,000 | $ | 13,307,000 | |||||
Corporate assets | 1,764,000 | ||||||||||
Total assets | $ | 76,907,000 | |||||||||
Long-lived assets, including $47,000 at corporate | $ | 34,443,000 | $ | 29,800,000 | $ | 4,596,000 | |||||
Three months ended March 31, 2014 | Consolidated | Tools | Hardware | ||||||||
Revenue | $ | 15,932,000 | $ | 11,191,000 | $ | 4,741,000 | |||||
Segment operating income | $ | 2,219,000 | $ | 1,328,000 | $ | 891,000 | |||||
General corporate expense | -1,411,000 | ||||||||||
Interest expense | -89,000 | ||||||||||
Earnings before income taxes | $ | 719,000 | |||||||||
Segment assets | $ | 50,659,000 | $ | 37,385,000 | $ | 13,274,000 | |||||
Corporate assets | 3,153,000 | ||||||||||
Total assets | $ | 53,812,000 | |||||||||
Long-lived assets, including $20,000 at corporate | $ | 16,631,000 | $ | 12,032,000 | $ | 4,579,000 | |||||
Revenue and long-lived assets by geographic region were as follows: | |||||||||||
Three months ended March 31, | |||||||||||
2015 | 2014 | ||||||||||
Revenue: | |||||||||||
North America | $ | 18,571,000 | $ | 15,711,000 | |||||||
Europe | 900,000 | 42,000 | |||||||||
All other | 355,000 | 179,000 | |||||||||
Total Revenue | $ | 19,826,000 | $ | 15,932,000 | |||||||
Long-Lived Assets: | |||||||||||
North America | $ | 33,311,000 | $ | 16,631,000 | |||||||
Europe | 1,132,000 | — | |||||||||
Total Long-Lived Assets | $ | 34,443,000 | $ | 16,631,000 | |||||||
BUSINESS_AND_SUMMARY_OF_ACCOUN1
BUSINESS AND SUMMARY OF ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Financial Statement Presentation |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. All such adjustments are of a normal recurring nature. Results for interim periods are not necessarily indicative of results to be expected for a full year. | |
The unaudited consolidated balance sheet information as of December 31, 2014 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Form 10-K”). The interim financial statements contained herein should be read in conjunction with the 2014 Form 10-K. | |
The consolidated financial statements have been reported in U.S. dollars by translating asset and liability amounts of a foreign wholly-owned subsidiary at the closing exchange rate, equity amounts at historical rates and the results of operations and cash flow at the average of the prevailing exchange rates during the periods reported. As a result, the Company is exposed to foreign currency translation gain or losses. These gains or losses are presented in the Company’s consolidated financial statements as “Other comprehensive income (loss) - foreign currency translation adjustments”. | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
The unaudited 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. | |
The Company | |
P&F is a Delaware corporation incorporated on April 19, 1963, that 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 operates through its wholly-owned subsidiaries, Florida Pneumatic Manufacturing Corporation (“Florida Pneumatic”) and Hy-Tech Machine, Inc. (“Hy-Tech”). During the third quarter of 2014, the Company acquired Exhaust Technologies Inc. (“ETI”) and Universal Air Tool Company Limited (“UAT”). Both ETI and UAT are wholly-owned subsidiaries of Florida Pneumatic, and unless otherwise indicated, the operations and results of operations of Florida Pneumatic herein include ETI and UAT as of the respective dates such companies were acquired. Additionally, during the third quarter of 2014, the Company acquired substantially all the assets of Air Tool Service Company (“ATSCO”), which business operates through a wholly-owned subsidiary of Hy-Tech. Unless otherwise indicated, the results of operations of Hy-Tech herein include ATSCO from the date the business was acquired. | |
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 manufactures and distributes its own line of industrial pneumatic tools. Hy-Tech also produces and markets impact wrenches, grinders, drills, and motors. Further, it also manufactures tools to customer specifications. Its customers include refineries, chemical plants, power generation facilities, heavy construction enterprises, oil and gas and mining companies. In addition, Hy-Tech manufactures an extensive line of pneumatic tool replacement parts that are sold to original equipment manufacturers (“OEMs”), and competitively. It also manufactures and distributes high pressure stoppers for hydrostatic testing fabricated pipe, gears, sprockets, splines and racks and 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. | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates |
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2014 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements |
Recently Issued Accounting Pronouncements | |
In April 2015, the Financial Accounting Standards Board issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which amends the current presentation of debt issuance costs in the financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of as an asset. The amendments are to be applied retrospectively and are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, but early adoption is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro-forma combined financial information gives effect to the acquisition of ETI, UAT and ATSCO as if they were consummated January 1, 2014. This unaudited pro-forma financial information is presented for information purposes only, and is not intended to present actual results that would have been attained had the acquisitions been completed as of January 1, 2014 (the beginning of the earliest period presented) or to project potential operating results as of any future date or for any future periods. | ||||
Three months ended | |||||
March 31, 2014 | |||||
(Unaudited) | |||||
Revenue | $ | 19,854,000 | |||
Net income | $ | 1,076,000 | |||
Earnings per share - basic | $ | 0.29 | |||
Earnings per share - diluted | $ | 0.28 | |||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the elements of basic and diluted earnings per common share: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Numerator for basic and diluted earnings per common share: | ||||||||
Net income | $ | 781,000 | $ | 462,000 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share weighted average common shares outstanding | 3,589,000 | 3,694,000 | ||||||
Dilutive securities (1) | 157,000 | 184,000 | ||||||
Denominator for diluted earnings per share weighted average common shares outstanding | 3,746,000 | 3,878,000 | ||||||
(1) Dilutive securities consist of “in the money” stock options. | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The weighted average of anti-dilutive stock options outstanding was as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Weighted average anti-dilutive stock options outstanding | 182,000 | 299,000 | ||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of the changes in outstanding options during the three-month period ended March 31, 2015: | |||||||||||
Weighted | Weighted Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual Life | Intrinsic | ||||||||||
Option Shares | Price | (Years) | Value | |||||||||
Outstanding, January 1, 2015 | 505,000 | $ | 6.51 | 4.8 | $ | 1,232,000 | ||||||
Granted | — | — | — | |||||||||
Exercised | -6,500 | 3.05 | ||||||||||
Forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Outstanding, March 31, 2015 | 498,500 | $ | 6.56 | 4.5 | $ | 845,000 | ||||||
Vested, March 31, 2015 | 437,494 | $ | 6.43 | 4.1 | $ | 820,000 | ||||||
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 options for the three months ended March 31, 2015: | |||||||||||
Weighted Average Grant- | ||||||||||||
Option Shares | Date Fair Value | |||||||||||
Nonvested options, January 1, 2015 | 61,006 | $ | 6.14 | |||||||||
Granted | — | |||||||||||
Vested | — | |||||||||||
Forfeited | — | |||||||||||
Nonvested options, March 31, 2015 | 61,006 | $ | 6.14 | |||||||||
ACCOUNTS_RECEIVABLE_AND_ALLOWA1
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable - net consists of: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Accounts receivable | $ | 12,042,000 | $ | 9,693,000 | ||||
Allowance for doubtful accounts | -151,000 | -146,000 | ||||||
$ | 11,891,000 | $ | 9,547,000 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw material | $ | 2,132,000 | $ | 2,014,000 | ||||
Work in process | 1,449,000 | 1,433,000 | ||||||
Finished goods | 22,735,000 | 20,888,000 | ||||||
$ | 26,316,000 | $ | 24,335,000 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill by segment are as follows: | |||||||||||||||||||
Consolidated | Tools | Hardware | ||||||||||||||||||
Balance, January 1, 2015 | $ | 11,980,000 | $ | 10,107,000 | $ | 1,873,000 | ||||||||||||||
Adjustment to Acquisition of ATSCO | 62,000 | 62,000 | — | |||||||||||||||||
Currency translation adjustments | -15,000 | -15,000 | — | |||||||||||||||||
Balance, March 31, 2015 | $ | 12,027,000 | $ | 10,154,000 | $ | 1,873,000 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Other intangible assets were as follows: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Cost | Accumulated | Net book | Cost | Accumulated | Net book | |||||||||||||||
amortization | value | amortization | value | |||||||||||||||||
Other intangible assets: | ||||||||||||||||||||
Customer relationships (1) | $ | 13,185,000 | $ | 4,760,000 | $ | 8,425,000 | $ | 13,194,000 | $ | 4,551,000 | $ | 8,643,000 | ||||||||
Trademarks and trade names (1) | 2,016,000 | — | 2,016,000 | 2,035,000 | — | 2,035,000 | ||||||||||||||
Engineering drawings | 410,000 | 130,000 | 280,000 | 410,000 | 120,000 | 290,000 | ||||||||||||||
Licensing | 305,000 | 250,000 | 55,000 | 305,000 | 235,000 | 70,000 | ||||||||||||||
Non-compete agreements (1) | 362,000 | 63,000 | 299,000 | 368,000 | 41,000 | 327,000 | ||||||||||||||
Patents | 1,205,000 | 199,000 | 1,006,000 | 1,205,000 | 133,000 | 1,072,000 | ||||||||||||||
Totals | $ | 17,483,000 | $ | 5,402,000 | $ | 12,081,000 | $ | 17,517,000 | $ | 5,080,000 | $ | 12,437,000 | ||||||||
-1 | A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations. | |||||||||||||||||||
The weighted average amortization period for intangible assets was as follows: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Customer relationships | 10.7 | 10.9 | ||||||||||||||||||
Trademarks and trade names | — | — | ||||||||||||||||||
Engineering drawings | 9.1 | 9.2 | ||||||||||||||||||
Licensing | 1 | 1.2 | ||||||||||||||||||
Non-compete agreements | 3.4 | 3.6 | ||||||||||||||||||
Patents | 6 | 6.1 | ||||||||||||||||||
Total | 9.9 | 10.1 | ||||||||||||||||||
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: | |||||||||||||||||||
2016 | $ | 1,290,000 | ||||||||||||||||||
2017 | 1,235,000 | |||||||||||||||||||
2018 | 1,053,000 | |||||||||||||||||||
2019 | 966,000 | |||||||||||||||||||
2020 | 908,000 | |||||||||||||||||||
Thereafter | 4,613,000 | |||||||||||||||||||
$ | 10,065,000 | |||||||||||||||||||
Amortization expense for intangible assets subject to amortization was as follows: | ||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
$ | 324,000 | $ | 58,000 | |||||||||||||||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt [Table Text Block] | Long-term debt: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Term Loan A - $23,000 payable monthly January 2013 through December 2017, balance due December 19, 2017. | $ | 6,370,000 | $ | 6,440,000 | ||||
Term Loan B - $83,000 payable monthly September 2014 through March 2015. | 2,417,000 | 2,667,000 | ||||||
Capex Term Loan - $6,000 payable monthly May 2012 through April 2017. | 158,000 | 178,000 | ||||||
Capex Term Loan - $9,000 payable monthly October 2012 through September 2017. | 260,000 | 285,000 | ||||||
Other | 75,000 | 90,000 | ||||||
9,280,000 | 9,660,000 | |||||||
Less: current maturities | 2,904,000 | 3,167,000 | ||||||
$ | 6,376,000 | $ | 6,493,000 | |||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company evaluates segment performance based primarily on segment operating income. The accounting policies of each of the segments are the same as those referred to in Note 1. | ||||||||||
Three months ended March 31, 2015 | Consolidated | Tools | Hardware | ||||||||
Revenue | $ | 19,826,000 | $ | 14,559,000 | $ | 5,267,000 | |||||
Segment operating income | $ | 2,865,000 | $ | 1,908,000 | $ | 957,000 | |||||
General corporate expense | -1,442,000 | ||||||||||
Interest expense | -192,000 | ||||||||||
Earnings before income taxes | $ | 1,231,000 | |||||||||
Segment assets | $ | 75,143,000 | $ | 61,836,000 | $ | 13,307,000 | |||||
Corporate assets | 1,764,000 | ||||||||||
Total assets | $ | 76,907,000 | |||||||||
Long-lived assets, including $47,000 at corporate | $ | 34,443,000 | $ | 29,800,000 | $ | 4,596,000 | |||||
Three months ended March 31, 2014 | Consolidated | Tools | Hardware | ||||||||
Revenue | $ | 15,932,000 | $ | 11,191,000 | $ | 4,741,000 | |||||
Segment operating income | $ | 2,219,000 | $ | 1,328,000 | $ | 891,000 | |||||
General corporate expense | -1,411,000 | ||||||||||
Interest expense | -89,000 | ||||||||||
Earnings before income taxes | $ | 719,000 | |||||||||
Segment assets | $ | 50,659,000 | $ | 37,385,000 | $ | 13,274,000 | |||||
Corporate assets | 3,153,000 | ||||||||||
Total assets | $ | 53,812,000 | |||||||||
Long-lived assets, including $20,000 at corporate | $ | 16,631,000 | $ | 12,032,000 | $ | 4,579,000 | |||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Revenue and long-lived assets by geographic region were as follows: | ||||||||||
Three months ended March 31, | |||||||||||
2015 | 2014 | ||||||||||
Revenue: | |||||||||||
North America | $ | 18,571,000 | $ | 15,711,000 | |||||||
Europe | 900,000 | 42,000 | |||||||||
All other | 355,000 | 179,000 | |||||||||
Total Revenue | $ | 19,826,000 | $ | 15,932,000 | |||||||
Long-Lived Assets: | |||||||||||
North America | $ | 33,311,000 | $ | 16,631,000 | |||||||
Europe | 1,132,000 | — | |||||||||
Total Long-Lived Assets | $ | 34,443,000 | $ | 16,631,000 | |||||||
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Business Acquisition [Line Items] | |
Revenue | $19,854,000 |
Net income | $1,076,000 |
Earnings per share - basic (in dollars per share) | $0.29 |
Earnings per share - diluted (in dollars per share) | $0.28 |
ACQUISITIONS_Details_Textual
ACQUISITIONS (Details Textual) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
Exhaust Technologies Inc. [Member] | Universal Air Tool Company Limited [Member] | Universal Air Tool Company Limited [Member] | Air Tool Service Company [Member] | |
USD ($) | USD ($) | GBP (£) | USD ($) | |
Business Acquisition [Line Items] | ||||
Business Combination Contingent Consideration Fair Value | £ 250,000 | |||
Business Combination, Consideration Transferred | $10,377,000 | $1,947,000 | $7,659,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Numerator for basic and diluted earnings per common share: | ||||
Net income | $781,000 | $462,000 | ||
Denominator: | ||||
Denominator for basic earnings per share weighted average common shares outstanding | 3,589,000 | 3,694,000 | ||
Dilutive securities | 157,000 | [1] | 184,000 | [1] |
Denominator for diluted earnings per share weighted average common shares outstanding | 3,746,000 | 3,878,000 | ||
[1] | Dilutive securities consist of bin the moneyb stock options. |
EARNINGS_PER_SHARE_Details_1
EARNINGS PER SHARE (Details 1) (Equity Option [Member]) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average antidilutive stock options outstanding (in shares) | 182,000 | 299,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Forfeited | 0 | |
Weighted Average Exercise Price per share, Forfeited (in dollars per share) | $0 | |
Aggregate Intrinsic Value, Outstanding (in dollars) | $845,000 | $1,232,000 |
Aggregate Intrinsic Value, Vested, March 31, 2015 (in dollars) | $820,000 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 505,000 | |
Number of Shares, Granted | 0 | |
Number of Shares, Exercised | -6,500 | |
Number of Shares, Expired | 0 | |
Number of Shares, Outstanding | 498,500 | 505,000 |
Number of Shares, Vested, March 31, 2015 | 437,494 | |
Weighted Average Exercise Price per share, Outstanding (in dollars per share) | $6.51 | |
Weighted Average Exercise Price per share, Granted (in dollars per share) | $0 | |
Weighted Average Exercise Price per share, Exercised (in dollars per share) | $3.05 | |
Weighted Average Exercise Price per share, Expired (in dollars per share) | $0 | |
Weighted Average Exercise Price per share, Outstanding (in dollars per share) | $6.56 | $6.51 |
Weighted Average Exercise Price per share, Vested, March 31, 2015 (in dollars per share) | $6.43 | |
Weighted Average Remaining ContractualLife, Outstanding Period (Years) | 4 years 6 months | 4 years 9 months 18 days |
Weighted Average Remaining Contractual Life, Vested, March 31, 2015 (Years) | 4 years 1 month 6 days |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (Employee Stock Option [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option Shares, Nonvested shares, beginning of period | 61,006 |
Option Shares, Granted | 0 |
Option Shares, Vested | 0 |
Option Shares, Forfeited | 0 |
Option Shares, Nonvested shares, end of period | 61,006 |
Weighted Average Grant-Date Fair Value, Non-vested shares, beginning of period (in dollars per share) | $6.14 |
Weighted Average Grant-Date Fair Value, Non-vested shares, end of period (in dollars per share) | $6.14 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | 31-May-14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock or Unit Expense | $6,000 | $7,000 | |
Incentive Stock Option Plan 2002 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 385,000 | ||
Incentive Stock Option Plan 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 194,517 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 113,500 | ||
Incentive Stock Option Plan 2012 [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 3,330 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $7.43 | ||
Restricted Stock or Unit Expense | $25,000 | ||
Incentive Stock Option Plan 2012 [Member] | Restricted Stock [Member] | Non-employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 666 |
ACCOUNTS_RECEIVABLE_AND_ALLOWA2
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $12,042,000 | $9,693,000 |
Allowance for doubtful accounts | -151,000 | -146,000 |
Accounts Receivable, Net, Current, Total | $11,891,000 | $9,547,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw material | $2,132,000 | $2,014,000 |
Work in process | 1,449,000 | 1,433,000 |
Finished goods | 22,735,000 | 20,888,000 |
Inventory, Gross | $26,316,000 | $24,335,000 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Goodwill | $12,027,000 | $11,980,000 |
Consolidated [Member] | ||
Goodwill | 12,027,000 | 11,980,000 |
Adjustment to Acquisition of ATSCO | 62,000 | |
Currency translation adjustments | -15,000 | |
Tools [Member] | ||
Goodwill | 10,154,000 | 10,107,000 |
Adjustment to Acquisition of ATSCO | 62,000 | |
Currency translation adjustments | -15,000 | |
Hardware [Member] | ||
Goodwill | 1,873,000 | 1,873,000 |
Adjustment to Acquisition of ATSCO | 0 | |
Currency translation adjustments | $0 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | |||
Other intangible assets: | ||||
Cost | $17,483,000 | $17,517,000 | ||
Accumulated amortization | 5,402,000 | 5,080,000 | ||
Net book value | 12,081,000 | 12,437,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 10 months 24 days | 10 years 1 month 6 days | ||
Customer relationships [Member] | ||||
Other intangible assets: | ||||
Cost | 13,185,000 | [1] | 13,194,000 | [1] |
Accumulated amortization | 4,760,000 | [1] | 4,551,000 | [1] |
Net book value | 8,425,000 | [1] | 8,643,000 | [1] |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 8 months 12 days | 10 years 10 months 24 days | ||
Trademarks and trade names [Member] | ||||
Other intangible assets: | ||||
Cost | 2,016,000 | [1] | 2,035,000 | [1] |
Accumulated amortization | 0 | [1] | 0 | [1] |
Net book value | 2,016,000 | [1] | 2,035,000 | [1] |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 0 years | 0 years | ||
Engineering drawings [Member] | ||||
Other intangible assets: | ||||
Cost | 410,000 | 410,000 | ||
Accumulated amortization | 130,000 | 120,000 | ||
Net book value | 280,000 | 290,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 1 month 6 days | 9 years 2 months 12 days | ||
Licensing [Member] | ||||
Other intangible assets: | ||||
Cost | 305,000 | 305,000 | ||
Accumulated amortization | 250,000 | 235,000 | ||
Net book value | 55,000 | 70,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | 1 year 2 months 12 days | ||
Non-compete agreements [Member] | ||||
Other intangible assets: | ||||
Cost | 362,000 | [1] | 368,000 | [1] |
Accumulated amortization | 63,000 | [1] | 41,000 | [1] |
Net book value | 299,000 | [1] | 327,000 | [1] |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 4 months 24 days | 3 years 7 months 6 days | ||
Patents [Member] | ||||
Other intangible assets: | ||||
Cost | 1,205,000 | 1,205,000 | ||
Accumulated amortization | 199,000 | 133,000 | ||
Net book value | $1,006,000 | $1,072,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | 6 years 1 month 6 days | ||
[1] | A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations. |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Goodwill [Line Items] | ||
Amortization of Intangible Assets | $324,000 | $58,000 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 3) (USD $) | Mar. 31, 2015 |
Goodwill [Line Items] | |
2016 | $1,290,000 |
2017 | 1,235,000 |
2018 | 1,053,000 |
2019 | 966,000 |
2020 | 908,000 |
Thereafter | 4,613,000 |
Finite-Lived Intangible Assets, Net | $10,065,000 |
DEBT_Details
DEBT (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term Debt | $9,280,000 | $9,660,000 |
Less: current maturities | -2,904,000 | -3,167,000 |
Long-term Debt and Capital Lease Obligations | 6,376,000 | 6,493,000 |
Other Segments [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 75,000 | 90,000 |
Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 6,370,000 | 6,440,000 |
Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,417,000 | 2,667,000 |
Capex Term Loan One [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 158,000 | 178,000 |
Capex Term Loan Two [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $260,000 | $285,000 |
DEBT_Details_Textual
DEBT (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Mar. 31, 2012 | Mar. 31, 2015 | Dec. 31, 2014 | |
Capex Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Long-term Debt | $519,000 | $380,000 | ||
Capex Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||
Capex Term Loan [Member] | Base Rate Borrowing [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | 2.00% | ||
Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Periodic Payment, Principal | 23,000 | |||
Debt Instrument, Frequency of Periodic Payment | monthly | |||
Debt Instrument, Date of First Required Payment | 1-Jan-13 | |||
Debt Instrument, Maturity Date | 19-Dec-17 | |||
Term Loan A [Member] | Base Rate Borrowing [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.00% | ||
Term Loan A [Member] | Base Rate Borrowing [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | 3.00% | ||
Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Frequency of Periodic Payment | monthly | |||
Debt Instrument, Date of First Required Payment | 1-Sep-14 | |||
Debt Instrument, Maturity Date | 1-Mar-15 | |||
Debt Instrument, Payment Terms | 36 consecutive monthly payments of $83,000, with an additional mandatory repayment each year equal to 50% of the Companys Excess Cash Flow (as defined in the Restated Loan Agreement) for such year | |||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 2,417,000 | |||
Debt Instrument, Face Amount | 3,000,000 | |||
Term Loan B [Member] | Base Rate Borrowing [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | 2.25% | ||
Capex Term Loan One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Periodic Payment, Principal | 6,000 | |||
Debt Instrument, Frequency of Periodic Payment | monthly | |||
Debt Instrument, Date of First Required Payment | 1-May-12 | |||
Debt Instrument, Maturity Date | 1-Apr-17 | |||
Capex Term Loan Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Periodic Payment, Principal | 9,000 | |||
Debt Instrument, Frequency of Periodic Payment | monthly | |||
Debt Instrument, Date of First Required Payment | 1-Oct-12 | |||
Debt Instrument, Maturity Date | 1-Sep-17 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 22,000,000 | 20,000,000 | ||
Long-term Line of Credit | 15,022,000 | 11,817,000 | ||
Revolving Credit Facility [Member] | Base Rate Borrowing [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | 1.25% | ||
Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 33,657,000 | 29,423,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Purchases from Related Party | $181,000 | $263,000 | |
Accounts Payable, Related Parties, Current | 60,000 | 103,000 | |
Revenue from Related Parties | $2,000 | $4,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenue | $19,826,000 | $15,932,000 | |
Segment operating income | 1,423,000 | 808,000 | |
Interest expense | -192,000 | -89,000 | |
Earnings before income taxes | 1,231,000 | 719,000 | |
Total assets | 76,907,000 | 73,076,000 | |
Long-lived assets, including March 31 (2015: $47,000) (2014: $20,000) at corporate | 34,443,000 | 16,631,000 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets, including March 31 (2015: $47,000) (2014: $20,000) at corporate | 47,000 | 20,000 | |
Consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 76,907,000 | 53,812,000 | |
Consolidated [Member] | Reportable Subsegments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 19,826,000 | 15,932,000 | |
Segment operating income | 2,865,000 | 2,219,000 | |
General corporate expense | -1,442,000 | -1,411,000 | |
Interest expense | -192,000 | -89,000 | |
Earnings before income taxes | 1,231,000 | 719,000 | |
Total assets | 75,143,000 | 50,659,000 | |
Long-lived assets, including March 31 (2015: $47,000) (2014: $20,000) at corporate | 34,443,000 | 16,631,000 | |
Consolidated [Member] | Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,764,000 | 3,153,000 | |
Tools [Member] | Reportable Subsegments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 14,559,000 | 11,191,000 | |
Segment operating income | 1,908,000 | 1,328,000 | |
Total assets | 61,836,000 | 37,385,000 | |
Long-lived assets, including March 31 (2015: $47,000) (2014: $20,000) at corporate | 29,800,000 | 12,032,000 | |
Hardware [Member] | Reportable Subsegments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 5,267,000 | 4,741,000 | |
Segment operating income | 957,000 | 891,000 | |
Total assets | 13,307,000 | 13,274,000 | |
Long-lived assets, including March 31 (2015: $47,000) (2014: $20,000) at corporate | $4,596,000 | $4,579,000 |
BUSINESS_SEGMENTS_Details_1
BUSINESS SEGMENTS (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue and long-lived assets by geographic region were as follows: | ||
Revenue | $19,826,000 | $15,932,000 |
Long-Lived Assets | 34,443,000 | 16,631,000 |
North America [Member] | ||
Revenue and long-lived assets by geographic region were as follows: | ||
Revenue | 18,571,000 | 15,711,000 |
Long-Lived Assets | 33,311,000 | 16,631,000 |
Europe [Member] | ||
Revenue and long-lived assets by geographic region were as follows: | ||
Revenue | 900,000 | 42,000 |
Long-Lived Assets | 1,132,000 | 0 |
All Other Geographic Regions [Member] | ||
Revenue and long-lived assets by geographic region were as follows: | ||
Revenue | $355,000 | $179,000 |