Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 28, 2014 | Oct. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'PATRICK INDUSTRIES INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 10,381,663 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000076605 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 28-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Financial Position (Unaudited) (USD $) | Sep. 28, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $2,712 | $34 |
Trade receivables, net | 44,076 | 22,644 |
Inventories | 76,989 | 56,510 |
Deferred tax assets | 4,095 | 3,762 |
Prepaid expenses and other | 3,566 | 4,749 |
Total current assets | 131,438 | 87,699 |
Property, plant and equipment, at cost | 115,848 | 101,060 |
Less accumulated depreciation | 62,185 | 58,943 |
Property, plant and equipment, net | 53,663 | 42,117 |
Goodwill | 28,392 | 16,495 |
Intangible assets, net of accumulated amortization (2014: $8,676; 2013: $5,640) | 48,202 | 25,611 |
Deferred financing costs, net of accumulated amortization (2014: $1,672; 2013: $1,405) | 1,109 | 1,283 |
Other non-current assets | 1,005 | 982 |
TOTAL ASSETS | 263,809 | 174,187 |
Current liabilities | ' | ' |
Accounts payable | 36,334 | 18,826 |
Accrued liabilities | 13,821 | 13,585 |
Total current liabilities | 50,155 | 32,411 |
Long-term debt | 107,261 | 55,000 |
Deferred compensation and other | 2,444 | 2,546 |
Deferred tax liabilities | 2,273 | 1,920 |
TOTAL LIABILITIES | 162,133 | 91,877 |
SHAREHOLDERS’ EQUITY | ' | ' |
Common stock | 54,800 | 53,863 |
Additional paid-in-capital | 7,590 | 6,604 |
Accumulated other comprehensive income | 54 | 54 |
Retained earnings | 39,232 | 21,789 |
TOTAL SHAREHOLDERS’ EQUITY | 101,676 | 82,310 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $263,809 | $174,187 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Financial Position (Unaudited) (Parentheticals) (USD $) | Sep. 28, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible assets, accumulated amortization | $8,676 | $5,640 |
Deferred financing costs, accumulated amortization | $1,672 | $1,405 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
NET SALES | $188,138 | $146,623 | $546,143 | $448,319 |
Cost of goods sold | 158,110 | 124,800 | 457,149 | 378,900 |
GROSS PROFIT | 30,028 | 21,823 | 88,994 | 69,419 |
Operating Expenses: | ' | ' | ' | ' |
Warehouse & delivery | 6,842 | 5,293 | 19,613 | 14,539 |
Selling, general & administrative | 9,339 | 7,001 | 26,604 | 21,411 |
Amortization of intangible assets | 1,408 | 548 | 3,036 | 1,588 |
(Gain) loss on sale of fixed assets | -51 | 6 | -27 | -424 |
Total operating expenses | 17,538 | 12,848 | 49,226 | 37,114 |
OPERATING INCOME | 12,490 | 8,975 | 39,768 | 32,305 |
Interest expense, net | 694 | 541 | 1,750 | 1,615 |
Income before income taxes | 11,796 | 8,434 | 38,018 | 30,690 |
Income taxes | 4,542 | 2,982 | 14,637 | 11,662 |
NET INCOME | $7,254 | $5,452 | $23,381 | $19,028 |
BASIC NET INCOME PER COMMON SHARE (in Dollars per share) | $0.68 | $0.51 | $2.19 | $1.77 |
DILUTED NET INCOME PER COMMON SHARE (in Dollars per share) | $0.68 | $0.51 | $2.18 | $1.76 |
Weighted average shares outstanding - Basic (in Shares) | 10,657 | 10,655 | 10,689 | 10,759 |
- Diluted (in Shares) | 10,720 | 10,697 | 10,744 | 10,800 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $23,381 | $19,028 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 4,282 | 3,628 |
Amortization of intangible assets | 3,036 | 1,588 |
Stock-based compensation expense | 2,460 | 924 |
Deferred compensation expense | 247 | 231 |
Deferred income taxes | 20 | 3,730 |
Gain on sale of fixed assets | -27 | -424 |
Decrease in cash surrender value of life insurance | 20 | 68 |
Deferred financing amortization | 267 | 312 |
Change in operating assets and liabilities, net of business acquisitions: | ' | ' |
Trade receivables | -15,175 | -14,311 |
Inventories | -8,305 | -6,819 |
Prepaid expenses and other | 1,382 | -914 |
Accounts payable and accrued liabilities | 11,852 | 14,704 |
Payments on deferred compensation obligations | -240 | -293 |
Net cash provided by operating activities | 23,200 | 21,452 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -4,184 | -5,214 |
Proceeds from sale of property, equipment and facility | 97 | 1,009 |
Business acquisitions | -62,620 | -16,544 |
Other | -43 | -42 |
Net cash used in investing activities | -66,750 | -20,791 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Long-term debt borrowings, net | 52,261 | 13,284 |
Payment of deferred financing costs | -93 | -100 |
Stock repurchases under buyback program | -6,928 | -6,078 |
Realization of excess tax benefit on stock-based compensation | 1,071 | 2,363 |
Proceeds from exercise of stock options, including tax benefit | 26 | 64 |
Payments on capital lease obligations | -109 | -118 |
Net cash provided by financing activities | 46,228 | 9,415 |
Increase in cash and cash equivalents | 2,678 | 10,076 |
Cash and cash equivalents at beginning of year | 34 | 434 |
Cash and cash equivalents at end of period | $2,712 | $10,510 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 28, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. BASIS OF PRESENTATION | |
In the opinion of Patrick Industries, Inc. (“Patrick” or the “Company”), the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the Company’s financial position as of September 28, 2014 and December 31, 2013, and its results of operations and cash flows for the three and nine months ended September 28, 2014 and September 29, 2013. | |
Patrick’s unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules or regulations. For a description of significant accounting policies used by the Company in the preparation of its consolidated financial statements, please refer to Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The December 31, 2013 condensed consolidated statement of financial position data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the third quarter and nine months ended September 28, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
In preparation of Patrick’s condensed consolidated financial statements as of and for the third quarter and nine months ended September 28, 2014, management evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date of issuance of the Form 10-Q for potential recognition or disclosure in the consolidated financial statements. See Notes 6 and 13 for events that occurred subsequent to the balance sheet date. |
Note_2_Recently_Issued_Account
Note 2 - Recently Issued Accounting Pronoucements | 9 Months Ended |
Sep. 28, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
Revenue Recognition | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued new accounting guidance on revenue from contracts with customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance is effective for the Company in the first quarter of 2017 and early adoption is not permitted. | |
The guidance permits two methods of transition upon adoption: full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2017 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. The impact from the adoption of this guidance on the Company's Condensed Consolidated Financial Statements cannot be determined at this time. The Company is also working to determine the appropriate method of transition to the guidance. | |
Stock Compensation | |
In June 2014, the FASB issued revised guidance on accounting for share-based payments that will require that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. The revised guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance and has not yet determined the impact, if any, that the implementation of this guidance will have on its results of operations or financial condition. |
Note_3_Inventories
Note 3 - Inventories | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
3. INVENTORIES | |||||||||
Inventories are stated at the lower of cost (First-In, First-Out (FIFO) Method) or market and consist of the following classes: | |||||||||
(thousands) | Sept. 28, 2014 | Dec. 31, 2013 | |||||||
Raw materials | $ | 43,428 | $ | 24,135 | |||||
Work in process | 5,390 | 4,870 | |||||||
Finished goods | 4,329 | 3,877 | |||||||
Less: reserve for inventory obsolescence | (1,647 | ) | (938 | ) | |||||
Total manufactured goods, net | 51,500 | 31,944 | |||||||
Materials purchased for resale (distribution products) | 26,318 | 24,904 | |||||||
Less: reserve for inventory obsolescence | (829 | ) | (338 | ) | |||||
Total materials purchased for resale (distribution products), net | 25,489 | 24,566 | |||||||
Total inventories | $ | 76,989 | $ | 56,510 | |||||
Note_4_Goodwill_and_Intangible
Note 4 - Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||
Sep. 28, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
4. GOODWILL AND INTANGIBLE ASSETS | |||||||||||||
Goodwill and other intangible assets are allocated to the Company’s reporting units at the date they are initially recorded. Goodwill and indefinite-lived intangible assets are not amortized but are subject to an impairment test based on their estimated fair value performed annually in the fourth quarter (or under certain circumstances more frequently as warranted). Goodwill impairment testing is performed at the reporting unit level, one level below the business segment. The Company’s Manufacturing segment includes goodwill originating from the acquisitions of Gravure Ink (acquired in the Adorn Holdings, Inc. acquisition), Quality Hardwoods Sales (“Quality Hardwoods”), A.I.A. Countertops, LLC (“AIA”), Infinity Graphics, Décor Mfg., LLC (“Décor”), Creative Wood Designs, Inc. (“Creative Wood”), Middlebury Hardwood Products, Inc. (“Middlebury Hardwoods”), Frontline Mfg., Inc. (“Frontline”), Premier Concepts, Inc. (“Premier”), Precision Painting Group (“Precision”), Foremost Fabricators, LLC (“Foremost”), and PolyDyn3, LLC (“PolyDyn3”). While Gravure Ink, AIA, Infinity Graphics, Décor, Creative Wood, Middlebury Hardwoods, Frontline, Premier, Precision, Foremost, and PolyDyn3 remain reporting units of the Company for which impairment is assessed, Quality Hardwoods is assessed for impairment as part of the Company’s hardwood door reporting unit. The Company’s Distribution segment includes goodwill originating from the acquisitions of Blazon International Group (“Blazon”), John H. McDonald Co., Inc. d/b/a West Side Furniture (“West Side”), and Foremost, which remain reporting units for which impairment is assessed. | |||||||||||||
Finite-lived intangible assets that meet certain criteria continue to be amortized over their useful lives and are also subject to an impairment test based on estimated undiscounted cash flows when impairment indicators exist. The Company assesses finite-lived intangible assets for impairment if events or changes in circumstances indicate that the carrying value may exceed the fair value. | |||||||||||||
No impairment was recognized during the third quarter and nine months ended September 28, 2014 related to goodwill, indefinite-lived intangible assets or finite-lived intangible assets. There have been no material changes to the method of evaluating impairment related to goodwill and indefinite-lived intangible assets during the third quarter of 2014. | |||||||||||||
In early June 2014, the Company acquired the business and certain assets of Bremen, Indiana and Elkhart, Indiana-based Precision. The purchase was determined to be a business combination and the intangible assets recorded as a result of the acquisition included (in thousands): customer relationships - $2,904; trademarks - $483; non-compete agreements - $1,105; and goodwill - $3,693. The goodwill recognized in this transaction is expected to be deductible for income tax purposes. Precision is included in the Manufacturing segment. See Note 5 for further details. | |||||||||||||
In late June 2014, the Company acquired the business and certain assets of Goshen, Indiana-based Foremost. The purchase was determined to be a business combination and the intangible assets recorded as a result of the acquisition included (in thousands): customer relationships - $15,485; trademarks - $4,070; non-compete agreements - $1,350; and goodwill - $8,025. The goodwill recognized in this transaction is expected to be deductible for income tax purposes. The Foremost reporting units are included in the Manufacturing and Distribution segments. See Note 5 for further details. | |||||||||||||
In early September 2014, the Company acquired the business and certain assets of Elkhart, Indiana-based PolyDyn3. The purchase was determined to be a business combination and the intangible assets recorded as a result of the acquisition included (in thousands): customer relationships - $201; trademarks - $6; non-compete agreements - $23; and goodwill - $57. The goodwill recognized in this transaction is expected to be deductible for income tax purposes. PolyDyn3 is included in the Manufacturing segment. See Note 5 for further details. | |||||||||||||
Goodwill | |||||||||||||
Changes in the carrying amount of goodwill for the nine months ended September 28, 2014 by segment are as follows: | |||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||
Balance - December 31, 2013 | $ | 13,720 | $ | 2,775 | $ | 16,495 | |||||||
Acquisitions | 8,687 | 3,210 | 11,897 | ||||||||||
Balance - September 28, 2014 | $ | 22,407 | $ | 5,985 | $ | 28,392 | |||||||
Other Intangible Assets | |||||||||||||
As of September 28, 2014, the remaining intangible assets balance of $48.2 million is comprised of $8.7 million of trademarks which have an indefinite life, and therefore, no amortization expense has been recorded, and $39.5 million pertaining to customer relationships and non-compete agreements which are being amortized over periods ranging from 3 to 19 years. | |||||||||||||
Other intangible assets, net consist of the following as of September 28, 2014 and December 31, 2013: | |||||||||||||
(thousands) | Sept. 28, 2014 | Weighted Average Useful Life (years) | Dec. 31, 2013 | Weighted Average Useful Life (years) | |||||||||
Customer relationships | $ | 42,258 | 11 | $ | 23,668 | 11 | |||||||
Non-compete agreements | 5,895 | 3 | 3,417 | 3 | |||||||||
Trademarks | 8,725 | 4,166 | |||||||||||
56,878 | 31,251 | ||||||||||||
Less: accumulated amortization | (8,676 | ) | (5,640 | ) | |||||||||
Other intangible assets, net | $ | 48,202 | $ | 25,611 | |||||||||
Changes in the carrying value of other intangible assets for the nine months ended September 28, 2014 by segment are as follows: | |||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||
Balance - December 31, 2013 | $ | 19,626 | $ | 5,985 | $ | 25,611 | |||||||
Acquisitions | 17,265 | 8,362 | 25,627 | ||||||||||
Amoritization | (2,156 | ) | (880 | ) | (3,036 | ) | |||||||
Balance - September 28, 2014 | $ | 34,735 | $ | 13,467 | $ | 48,202 | |||||||
Note_5_Acquisitions
Note 5 - Acquisitions | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||
5. ACQUISITIONS | |||||||||||||||||
2014 Acquisitions | |||||||||||||||||
PolyDyn3 | |||||||||||||||||
In early September 2014, the Company acquired the business and certain assets of Elkhart, Indiana-based PolyDyn3. PolyDyn3 is a custom fabricator of simulated wood and stone products such as headboards, fireplaces, ceiling medallions, columns and trims, for the recreational vehicle (“RV”) market. The net purchase price was $1.3 million. | |||||||||||||||||
The acquisition provides the Company the opportunity to bring in-house new production capabilities and product lines that were previously represented through one of the Company’s distribution business units, and gain additional penetration in the RV market sector. The results of operations for PolyDyn3 are included in the Company’s condensed consolidated financial statements and the Manufacturing operating segment from the date of acquisition. The excess of the purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which represents the value of leveraging the Company’s existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the PolyDyn3 team to maximize efficiencies, revenue impact, market share growth, and net income. | |||||||||||||||||
The acquisition was funded through borrowings under the Company’s 2012 Credit Facility (as defined herein). Assets acquired and liabilities assumed in the acquisition were recorded on the Company’s condensed consolidated statements of financial position at their estimated fair value as of the date of the acquisition. The preliminary purchase price allocation is subject to final approval and settlement of a working capital adjustment, and thus all required purchase accounting adjustments are expected to be finalized within the measurement period of up to one year. The following summarizes the estimated fair values of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 86 | |||||||||||||||
Inventories | 194 | ||||||||||||||||
Property, plant and equipment | 683 | ||||||||||||||||
Prepaid expenses | 125 | ||||||||||||||||
Accounts payable and accrued liabilities | (124 | ) | |||||||||||||||
Intangible assets | 230 | ||||||||||||||||
Goodwill | 57 | ||||||||||||||||
Total net purchase price | $ | 1,251 | |||||||||||||||
Precision | |||||||||||||||||
In early June 2014, the Company acquired the business and certain assets of four related companies based in Bremen, Indiana and Elkhart, Indiana: Precision Painting, Inc., Carrera Custom Painting, Inc., Millennium Paint, Inc., and TDM Transport, Inc. (collectively referred to as “Precision Painting Group” or “Precision”). The Precision Painting Group is comprised of three full service exterior full body painting operations that offer exterior painting and interior refurbishing for both OEMs and existing RV and fleet owners, and a transportation operation that services their in-house customers. The net purchase price, which includes the subsequent purchase of five operating facilities from the sellers of Precision in July 2014 (per the June 2014 asset purchase agreement), was $16.0 million. | |||||||||||||||||
This acquisition provides the opportunity for the Company to establish a presence in the RV exterior full body painting market and increase its product offerings, market share and per unit content. The results of operations for Precision are included in the Company’s condensed consolidated financial statements and the Manufacturing operating segment from the date of acquisition. The excess of the purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which represents the value of leveraging the Company’s existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the Precision team to maximize efficiencies, revenue impact, market share growth, and net income. | |||||||||||||||||
The acquisition was funded through borrowings under the Company’s 2012 Credit Facility. Assets acquired and liabilities assumed in the acquisition were recorded on the Company’s condensed consolidated statements of financial position at their estimated fair values as of the date of the acquisition. The preliminary purchase price allocation is subject to final review and approval, and thus all required purchase accounting adjustments are expected to be finalized in the fourth quarter of 2014. The following summarizes the estimated fair values of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 1,425 | |||||||||||||||
Inventories | 208 | ||||||||||||||||
Property, plant and equipment | 7,032 | ||||||||||||||||
Prepaid expenses | 10 | ||||||||||||||||
Accounts payable and accrued liabilities | (847 | ) | |||||||||||||||
Intangible assets | 4,492 | ||||||||||||||||
Goodwill | 3,693 | ||||||||||||||||
Total net purchase price | $ | 16,013 | |||||||||||||||
Foremost | |||||||||||||||||
In late June 2014, the Company acquired the business and certain assets of Goshen, Indiana-based Foremost, a fabricator and distributor of fabricated aluminum products, fiber reinforced polyester (“FRP”) sheet and coil, and custom laminated products primarily used in the RV market, for a net purchase price of $45.4 million. This acquisition provides the opportunity for the Company to establish a presence in the laminated and fabricated roll formed aluminum products market and increase its product offerings, market share and per unit content. The results of operations for Foremost are included in the Company’s condensed consolidated financial statements and the Manufacturing and Distribution operating segments from the date of acquisition. The excess of the purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which represents the value of leveraging the Company’s existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the Foremost team to maximize efficiencies, revenue impact, market share growth, and net income. | |||||||||||||||||
The acquisition was funded through borrowings under the Company’s 2012 Credit Facility. Assets acquired and liabilities assumed in the acquisition were recorded on the Company’s condensed consolidated statements of financial position at their estimated fair values as of the date of the acquisition. The preliminary purchase price allocation is subject to final review and approval, and thus all required purchase accounting adjustments are expected to be finalized in the fourth quarter of 2014. The following summarizes the estimated fair values of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 4,868 | |||||||||||||||
Inventories | 11,772 | ||||||||||||||||
Property, plant and equipment | 3,934 | ||||||||||||||||
Prepaid expenses | 129 | ||||||||||||||||
Accounts payable and accrued liabilities | (4,277 | ) | |||||||||||||||
Intangible assets | 20,905 | ||||||||||||||||
Goodwill | 8,025 | ||||||||||||||||
Total net purchase price | $ | 45,356 | |||||||||||||||
2013 Acquisitions | |||||||||||||||||
Frontline | |||||||||||||||||
In early September 2013, the Company acquired the business and certain assets of Warsaw, Indiana-based Frontline, a manufacturer of fiberglass bath fixtures including tubs, showers and combination tub/shower units for the RV, manufactured housing (“MH”), and residential housing markets, for a net purchase price of $5.2 million, which included a contingent payment that may be paid based on future performance. The fair value of the contingent consideration arrangement was estimated by applying the income approach and included assumptions related to the probability of future payments and discounted cash flows. In the third quarter of 2014, the Company determined that the contingent consideration would not be paid as the conditions for payment were not achieved. As a result, the Company recognized a pretax gain of $0.3 million associated with the non-payment of the contingent consideration which is included in the line item “Selling, general & administrative” on the condensed consolidated statements of income for the third quarter and nine months ended September 28, 2014. | |||||||||||||||||
This acquisition provides the opportunity for the Company to establish a presence in the fiberglass bath fixtures market and increase its product offerings, market share and per unit content. The results of operations for Frontline are included in the Company’s condensed consolidated financial statements and the Manufacturing operating segment from the date of acquisition. The excess of the purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which represents the value of leveraging the Company’s existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the Frontline team to maximize efficiencies, revenue impact, market share growth, and net income. | |||||||||||||||||
The acquisition was funded through borrowings under the Company’s 2012 Credit Facility. Assets acquired and liabilities assumed in the acquisition were recorded on the Company’s condensed consolidated statements of financial position at their estimated fair values as of the date of the acquisition. The purchase price allocation and all required purchase accounting adjustments were finalized in the second quarter of 2014. The following summarizes the estimated fair values of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 1,545 | |||||||||||||||
Inventories | 250 | ||||||||||||||||
Property, plant and equipment | 917 | ||||||||||||||||
Prepaid expenses | 21 | ||||||||||||||||
Accounts payable and accrued liabilities | (2,135 | ) | |||||||||||||||
Intangible assets | 2,092 | ||||||||||||||||
Goodwill | 2,490 | ||||||||||||||||
Total net purchase price | $ | 5,180 | |||||||||||||||
Premier | |||||||||||||||||
In early September 2013, the Company acquired the business and certain assets of Warsaw, Indiana-based Premier, a custom fabricator of solid surface, granite, and quartz countertops for the RV, MH and residential housing markets, for a net purchase price of $2.6 million, which includes a contingent payment that may be paid based on future performance. The fair value of the contingent consideration arrangement was estimated by applying the income approach and included assumptions related to the probability of future payments and discounted cash flows. In the third quarter of 2014, the Company determined that the contingent consideration would not be paid as the conditions for payment were not achieved. As a result, the Company recognized a pretax gain of $0.2 million associated with the non-payment of the contingent consideration which is included in the line item “Selling, general & administrative” on the condensed consolidated statements of income for the third quarter and nine months ended September 28, 2014. | |||||||||||||||||
This acquisition provides the opportunity for the Company to expand its presence in the countertops market and increase its product offerings, market share and per unit content. The results of operations for Premier are included in the Company’s condensed consolidated financial statements and the Manufacturing operating segment from the date of acquisition. The excess of the purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which represents the value of leveraging the Company’s existing purchasing, manufacturing, sales, and systems resources with the organizational talent and expertise of the Premier team to maximize efficiencies, revenue impact, market share growth, and net income. | |||||||||||||||||
The acquisition was funded through borrowings under the Company’s 2012 Credit Facility. Assets acquired and liabilities assumed in the acquisition were recorded on the Company’s condensed consolidated statements of financial position at their estimated fair values as of the date of the acquisition. The purchase price allocation and all required purchase accounting adjustments were finalized in the second quarter of 2014. The following summarizes the estimated fair values of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 764 | |||||||||||||||
Inventories | 347 | ||||||||||||||||
Property, plant and equipment | 561 | ||||||||||||||||
Accounts payable and accrued liabilities | (1,357 | ) | |||||||||||||||
Intangible assets | 1,210 | ||||||||||||||||
Goodwill | 1,095 | ||||||||||||||||
Total net purchase price | $ | 2,620 | |||||||||||||||
West Side | |||||||||||||||||
In late September 2013, the Company acquired the business and certain assets of Goshen, Indiana-based West Side, a wholesale supplier of La-Z-Boy® recliners and the Serta® Trump Home™ mattress line, among other furniture products, to the RV market, for a net purchase price of $8.7 million. This acquisition provides the opportunity for the Company to expand its presence in the wholesale furniture business for the RV industry, and increase its product offerings, market share and per unit content. The results of operations for West Side are included in the Company’s condensed consolidated financial statements and the Distribution operating segment from the date of acquisition. The excess of the purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which represents the value of leveraging the Company’s existing purchasing, sales, and systems resources with the organizational talent and expertise of the West Side team to maximize efficiencies, revenue impact, market share growth, and net income. | |||||||||||||||||
The acquisition was funded through borrowings under the Company’s 2012 Credit Facility. Assets acquired and liabilities assumed in the acquisition were recorded on the Company’s condensed consolidated statements of financial position at their estimated fair values as of the date of the acquisition. The following summarizes the estimated fair values of the assets acquired and the liabilities assumed as of the date of acquisition: | |||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 902 | |||||||||||||||
Inventories | 1,439 | ||||||||||||||||
Property, plant and equipment | 324 | ||||||||||||||||
Prepaid expenses | 9 | ||||||||||||||||
Accounts payable and accrued liabilities | (2,094 | ) | |||||||||||||||
Intangible assets | 5,461 | ||||||||||||||||
Goodwill | 2,670 | ||||||||||||||||
Total net purchase price | $ | 8,711 | |||||||||||||||
Pro Forma Information | |||||||||||||||||
The following pro forma information for the third quarter and nine months ended September 28, 2014 assumes the Precision and Foremost acquisitions (which were acquired in June 2014) occurred as of January 1, 2014, the beginning of the year in which such acquisitions occurred. The pro forma information for the third quarter and nine months ended September 29, 2013 assumes the Frontline, Premier, and West Side acquisitions (all three of which were acquired in September 2013), and the Precision and Foremost acquisitions, occurred as of January 1, 2013. The pro forma information below for each of the 2014 and 2013 periods contains the actual operating results of Frontline, Premier, West Side, Precision and Foremost since their respective acquisition date, combined with the operating results prior to their respective acquisition dates. | |||||||||||||||||
The pro forma information includes financing and interest expense charges based on the actual incremental borrowings incurred in connection with each transaction as if it occurred at the beginning of the respective years. In addition, the pro forma information includes amortization expense related to intangible assets acquired in the Frontline, Premier and West Side acquisitions of approximately $0.3 million and $0.9 million, in the aggregate, for the third quarter and nine months ended September 29, 2013, respectively. In addition, the pro forma information includes amortization expense related to intangible assets acquired in the Precision and Foremost acquisitions of approximately $1.2 million for the nine months ended September 28, 2014, and $0.6 million and $1.9 million for the third quarter and nine months ended September 29, 2013, respectively. Pro forma information related to the PolyDyn3 acquisition is not included in the table below, as its financial results were not considered to be significant to the Company’s operating results for the periods presented. | |||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 28, | Sept. 29, | Sept. 28, | Sept. 29, | ||||||||||||||
(thousands except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 188,138 | $ | 177,832 | $ | 598,069 | $ | 554,577 | |||||||||
Net income | 7,254 | 5,297 | 24,719 | 20,508 | |||||||||||||
Net income per share – basic | 0.68 | 0.5 | 2.31 | 1.91 | |||||||||||||
Net income per share – diluted | 0.68 | 0.5 | 2.3 | 1.9 | |||||||||||||
The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time, nor is it intended to be a projection of future results. | |||||||||||||||||
For the third quarter and nine months ended September 28, 2014, revenue of approximately $25.0 million and $26.6 million, respectively, was included in the Company’s condensed consolidated statements of income pertaining to the three businesses acquired in 2014. Revenue of approximately $1.8 million was included in the Company’s condensed consolidated statements of income pertaining to the three businesses acquired in both the third quarter and first nine months of 2013. |
Note_6_StockBased_Compensation
Note 6 - Stock-Based Compensation | 9 Months Ended |
Sep. 28, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
6. STOCK-BASED COMPENSATION | |
The Company accounts for stock-based compensation in accordance with fair value recognition provisions. The Company recorded compensation expense of $0.9 million and $0.3 million for the third quarters ended September 28, 2014 and September 29, 2013, respectively, for its stock-based compensation plans on the condensed consolidated statements of income. For the comparable nine months periods, the Company recorded $2.5 million and $0.9 million, respectively. | |
The Company estimates the fair value of (i) all stock grants as of the grant date using the closing price per share of the Company’s common stock on such date, and (ii) all stock option and stock appreciation rights awards as of the grant date by applying the Black-Scholes option pricing model. The Board of Directors (the “Board”) approved the following share grants in 2013: 89,947 shares on March 4, 2013, 5,000 shares on March 11, 2013, and 19,480 shares on May 23, 2013. In addition, on December 18, 2013, the Company granted 200,000 shares that may be issued upon the exercise of stock options and 200,000 shares that may be issued upon the exercise of stock appreciation rights. The grant of the stock appreciation rights was subject to shareholder approval of amendments to the Company’s 2009 Omnibus Incentive Plan (the “Plan”) to increase the number of shares available for grant under the Plan and to make certain other changes. On May 22, 2014, the Company’s shareholders approved the amendments to the Plan at the Company’s annual meeting of shareholders. | |
The following share grants were approved in the first nine months of 2014: 34,000 shares on February 12, 2014, 65,668 shares on February 18, 2014, and 10,560 shares on May 22, 2014. In addition, on February 18, 2014, the Board approved the issuance of 44,001 restricted stock units under the Plan. At the beginning of the Company’s fourth fiscal quarter, a share grant of 296 shares was approved on September 30, 2014. | |
As of September 28, 2014, there was approximately $5.8 million of total unrecognized compensation cost related to stock-based compensation arrangements granted under incentive plans. That cost is expected to be recognized over a weighted-average period of 21.4 months. |
Note_7_Net_Income_Per_Common_S
Note 7 - Net Income Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
7. NET INCOME PER COMMON SHARE | |||||||||||||||||
Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding, plus the dilutive effect of stock options, stock appreciation rights, and restricted stock units (collectively “Common Stock Equivalents”). The dilutive effect of Common Stock Equivalents is calculated under the treasury stock method using the average market price for the period. Certain Common Stock Equivalents were not included in the computation of diluted net income per common share because the exercise prices of those Common Stock Equivalents were greater than the average market price of the common shares. | |||||||||||||||||
Net income per common share is calculated for the third quarter and nine months periods as follows: | |||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 28, | Sept. 29, | Sept. 28, | Sept. 29, | ||||||||||||||
(thousands except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income for basic and diluted per share calculation | $ | 7,254 | $ | 5,452 | $ | 23,381 | $ | 19,028 | |||||||||
Weighted average common shares outstanding - basic | 10,657 | 10,655 | 10,689 | 10,759 | |||||||||||||
Effect of potentially dilutive securities | 63 | 42 | 55 | 41 | |||||||||||||
Weighted average common shares outstanding - diluted | 10,720 | 10,697 | 10,744 | 10,800 | |||||||||||||
Basic net income per common share | $ | 0.68 | $ | 0.51 | $ | 2.19 | $ | 1.77 | |||||||||
Diluted net income per common share | $ | 0.68 | $ | 0.51 | $ | 2.18 | $ | 1.76 | |||||||||
Note_8_Other_NonCurrent_Assets
Note 8 - Other Non-Current Assets | 9 Months Ended |
Sep. 28, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Other Assets Disclosure [Text Block] | ' |
8. OTHER NON-CURRENT ASSETS | |
As of September 28, 2014 and December 31, 2013, other non-current assets of $1.0 million were net of borrowings against the cash value of life insurance policies on certain of the Company’s officers and directors of approximately $2.8 million and $2.7 million, respectively. |
Note_9_Debt
Note 9 - Debt | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
9. DEBT | |||||||||
On October 24, 2012, the Company entered into a credit agreement (the “2012 Credit Agreement”) with Wells Fargo Bank, National Association as the agent and lender (“Wells Fargo”), and Fifth-Third as participant (collectively, the “Lenders”), to establish a five-year $80.0 million revolving secured senior credit facility (the “2012 Credit Facility”). | |||||||||
On June 26, 2014, the Company entered into a fourth amendment to the 2012 Credit Agreement to increase the maximum borrowing limit under the revolving line of credit (the “Revolver”) to $125.0 million from $80.0 million. | |||||||||
The 2012 Credit Agreement is secured by a pledge of substantially all of the assets of the Company pursuant to a Security Agreement, dated October 24, 2012, between the Company and Wells Fargo, as agent. The 2012 Credit Agreement includes certain definitions, terms and reporting requirements and includes the following additional provisions: | |||||||||
● | The maturity date for the 2012 Credit Facility is October 24, 2017; | ||||||||
● | The Company has the option to increase the 2012 Credit Facility by an amount up to $20.0 million upon request to and subject to the approval of the Lenders; | ||||||||
● | The interest rates for borrowings under the Revolver are the Base Rate plus the Applicable Margin or the London Interbank Offer Rate (“LIBOR”) plus the Applicable Margin, with a fee payable by the Company on unused but committed portions of the Revolver; | ||||||||
● | The Revolver includes a sub-limit up to $5.0 million for same day advances (“Swing Line”) which shall bear interest based upon the Base Rate plus the Applicable Margin; | ||||||||
● | Up to $20.0 million of the Revolver will be available as a sub facility for the issuance of standby letters of credit, which are subject to certain expiration dates; | ||||||||
● | The financial covenants include requirements as to a consolidated total leverage ratio and a consolidated interest coverage ratio, and other covenants include limitations on permitted acquisitions, capital expenditures, indebtedness, restricted payments and fundamental changes (see further details below); and | ||||||||
● | Customary prepayment provisions which require the prepayment of outstanding amounts under the Revolver based on predefined conditions. | ||||||||
At September 28, 2014, the Company had $107.3 million outstanding under its Revolver which consisted of $96.0 million of borrowings under the LIBOR-based option and $11.3 million of borrowings under the Base Rate-based option. The interest rate for borrowings under the Revolver at September 28, 2014 was the Prime Rate plus 0.50% (or 3.75%), or LIBOR plus 1.50% (or 1.625%). At December 31, 2013, the Company had $55.0 million of borrowings outstanding, all of which was under the LIBOR-based option of LIBOR plus 1.50% (or 1.6875%). The fee payable on committed but unused portions of the Revolver was 0.20% for both of these periods. | |||||||||
Pursuant to the 2012 Credit Agreement, the financial covenants include (a) a maximum consolidated total leverage ratio, measured on a quarter-end basis, not to exceed 3.50:1.00 for the 12 month period ending on such quarter-end; (b) a required minimum consolidated interest coverage ratio under the Revolver, measured on a quarter-end basis, of at least 2.25:1.00 for the 12 month period ending on such quarter-end; and (c) a limitation on annual capital expenditures of $10.0 million for 2014 and for subsequent fiscal years, exclusive of acquisitions. If the consolidated total leverage ratio is in excess of 3.00:1.00 and less than 3.50:1.00, the Company is considered to be in compliance with this financial covenant provided it maintains an asset coverage ratio of at least 1.00 to 1.00 as of the close of each period. | |||||||||
The consolidated total leverage ratio is the ratio for any period of (i) consolidated total indebtedness to (ii) earnings before interest, taxes, depreciation and amortization (“EBITDA”). Consolidated total indebtedness for any period is the sum of (i) total debt outstanding under the Revolver, (ii) capital leases and letters of credit outstanding, and (iii) deferred payment obligations. The asset coverage ratio for any period is the ratio of (i) eligible amounts of the Company’s trade payables, inventory and fixed assets, minus certain reserves as defined under the 2012 Credit Agreement to (ii) the sum of outstanding obligations under the 2012 Credit Facility. | |||||||||
The consolidated interest coverage ratio for any period is the ratio of (i) EBITDA minus depreciation to (ii) the sum of consolidated interest expense plus restricted payments made by the Company. | |||||||||
As of and for the fiscal nine-month period ended September 28, 2014, the Company was in compliance with all three of these financial covenants at each reporting date. The required maximum total leverage ratio, minimum interest coverage ratio, and the annual capital expenditures limitation amounts compared to the actual amounts as of and for the fiscal nine-month period ended September 28, 2014 are as follows: | |||||||||
(thousands except ratios) | Required | Actual | |||||||
Consolidated leverage ratio (12-month period) | 3.5 | 1.5 | |||||||
Consolidated interest coverage ratio (12-month period) | 2.25 | 7.3 | |||||||
Annual capital expenditures limitation (actual year-to-date) | $ | 10,000 | $ | 4,184 | |||||
Note_10_Fair_Value_Measurement
Note 10 - Fair Value Measurements | 9 Months Ended |
Sep. 28, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
10. FAIR VALUE MEASUREMENTS | |
The carrying amounts of cash and cash equivalents, trade receivables, and accounts payable approximated fair value as of September 28, 2014 and December 31, 2013 because of the relatively short maturities of these financial instruments. The carrying amount of long-term debt approximated fair value as of September 28, 2014 and December 31, 2013 based upon terms and conditions available to the Company at those dates in comparison to the terms and conditions of its outstanding long-term debt. |
Note_11_Income_Taxes
Note 11 - Income Taxes | 9 Months Ended |
Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
11. INCOME TAXES | |
The Company recorded income taxes at an estimated full year effective rate of 38.5% in the third quarter and first nine months of 2014. The Company recorded income taxes at an estimated effective tax rate of 39% in the first and second quarters of 2013. In the third quarter of 2013, the Company determined that its estimated effective tax rate for the full year of 2013 would be approximately 38%. As a result, the Company recorded income taxes at a rate of 35.4% in the third quarter of 2013 in order to achieve a blended rate of 38% for the first nine months of 2013. | |
The Company had various state net operating loss carry forwards (“NOLs”) of approximately $4.5 million at December 31, 2013, of which approximately $2.2 million were remaining to be utilized as of September 28, 2014. The Company estimates that it will utilize a majority of the remaining state NOLs by the end of 2014. | |
In the first nine months of 2014, the Company realized a net tax benefit of approximately $1.1 million related to excess benefits on stock-based compensation, which had not been recorded as deferred tax assets at December 31, 2013. This tax benefit was recorded to shareholders’ equity upon realization in the first nine months of 2014. |
Note_12_Segment_Information
Note 12 - Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
12. SEGMENT INFORMATION | |||||||||||||||||
The Company has determined that its reportable segments are those based on its method of internal reporting, which segregates its businesses by product category and production/distribution process. | |||||||||||||||||
A description of the Company’s reportable segments is as follows: | |||||||||||||||||
Manufacturing – The Company’s lamination operations utilize various materials, such as lauan, medium-density fiberboard (“MDF”), gypsum, and particleboard, which are bonded by adhesives or a heating process to a number of products, including vinyl, paper, foil, and high-pressure laminates. These products are utilized to produce furniture, shelving, wall, counter, and cabinet products with a wide variety of finishes and textures. This segment also includes a cabinet door division, a fiberglass bath fixtures division, a hardwood furniture division, a vinyl printing division, a solid surface, granite, and quartz fabrication division, an exterior graphics division, an RV painting division, a fabricated aluminum products division, and the recently acquired simulated wood and stone products division (PolyDyn3). Patrick’s major manufactured products also include wrapped vinyl, paper and hardwood profile mouldings, interior passage doors, and slotwall panels and components. The Manufacturing segment contributed approximately 75% and 78% of the Company’s net sales for the nine months ended September 28, 2014 and September 29, 2013, respectively. | |||||||||||||||||
Distribution – The Company distributes pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, wiring, electrical and plumbing products, FRP products, cement siding, interior passage doors, roofing products, laminate and ceramic flooring, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other miscellaneous products. The Distribution segment contributed approximately 25% and 22% of the Company’s net sales for the nine months ended September 28, 2014 and September 29, 2013, respectively. | |||||||||||||||||
The tables below present unaudited information about the sales and operating income of those segments. | |||||||||||||||||
Third Quarter Ended September 28, 2014 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 138,512 | $ | 49,626 | $ | 188,138 | |||||||||||
Intersegment sales | 4,861 | 639 | 5,500 | ||||||||||||||
Operating income | 13,647 | 2,673 | 16,320 | ||||||||||||||
Third Quarter Ended September 29, 2013 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 112,578 | $ | 34,045 | $ | 146,623 | |||||||||||
Intersegment sales | 5,302 | 507 | 5,809 | ||||||||||||||
Operating income | 9,333 | 2,020 | 11,353 | ||||||||||||||
Nine Months Ended September 28, 2014 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 410,146 | $ | 135,997 | $ | 546,143 | |||||||||||
Intersegment sales | 15,176 | 1,874 | 17,050 | ||||||||||||||
Operating income | 43,062 | 7,522 | 50,584 | ||||||||||||||
Nine Months Ended September 29, 2013 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 349,068 | $ | 99,251 | $ | 448,319 | |||||||||||
Intersegment sales | 15,523 | 2,119 | 17,642 | ||||||||||||||
Operating income | 34,412 | 6,292 | 40,704 | ||||||||||||||
The table below presents a reconciliation of segment operating income to consolidated operating income: | |||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 28, | Sept. 29, | Sept. 28, | Sept. 29, | ||||||||||||||
(thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating income for reportable segments | $ | 16,320 | $ | 11,353 | $ | 50,584 | $ | 40,704 | |||||||||
Gain (loss) on sale of fixed assets | 51 | (6 | ) | 27 | 424 | ||||||||||||
Unallocated corporate expenses | (2,473 | ) | (1,824 | ) | (7,807 | ) | (7,235 | ) | |||||||||
Amortization of intangible assets | (1,408 | ) | (548 | ) | (3,036 | ) | (1,588 | ) | |||||||||
Consolidated operating income | $ | 12,490 | $ | 8,975 | $ | 39,768 | $ | 32,305 | |||||||||
Unallocated corporate expenses include corporate general and administrative expenses comprised of wages, insurance, taxes, supplies, travel and entertainment, professional fees and other. |
Note_13_Stock_Repurchase_Progr
Note 13 - Stock Repurchase Program | 9 Months Ended |
Sep. 28, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Treasury Stock [Text Block] | ' |
13. STOCK REPURCHASE PROGRAM | |
On February 22, 2013, the Board authorized a stock repurchase program for purchasing up to $10.0 million of the Company’s common stock over the following 12 months. On February 13, 2014, the Board authorized an increase in the amount of the Company’s stock that may be acquired through the existing stock repurchase program over the following 12 months to $20.0 million, including approximately $3.9 million available under the previous authorization. | |
In the third quarter of 2014, the Company repurchased 78,183 shares at an average price of $41.50 per share for a total cost of approximately $3.2 million. In the first nine months of 2014, the Company repurchased 172,729 shares at an average price of $40.11 per share for a total cost of approximately $6.9 million. Since the inception of the stock repurchase program in February 2013 through October 24, 2014, the Company has repurchased in the aggregate 704,137 shares at an average price of $25.47 per share for a total cost of approximately $17.9 million. | |
Common Stock | |
The Company’s common stock does not have a stated par value. As a result, repurchases of common stock have been reflected, using an average cost method, as a reduction of common stock, additional paid-in-capital, and retained earnings on the Company’s condensed consolidated statements of financial position. |
Note_3_Inventories_Tables
Note 3 - Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
(thousands) | Sept. 28, 2014 | Dec. 31, 2013 | |||||||
Raw materials | $ | 43,428 | $ | 24,135 | |||||
Work in process | 5,390 | 4,870 | |||||||
Finished goods | 4,329 | 3,877 | |||||||
Less: reserve for inventory obsolescence | (1,647 | ) | (938 | ) | |||||
Total manufactured goods, net | 51,500 | 31,944 | |||||||
Materials purchased for resale (distribution products) | 26,318 | 24,904 | |||||||
Less: reserve for inventory obsolescence | (829 | ) | (338 | ) | |||||
Total materials purchased for resale (distribution products), net | 25,489 | 24,566 | |||||||
Total inventories | $ | 76,989 | $ | 56,510 |
Note_4_Goodwill_and_Intangible1
Note 4 - Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||
Balance - December 31, 2013 | $ | 13,720 | $ | 2,775 | $ | 16,495 | |||||||
Acquisitions | 8,687 | 3,210 | 11,897 | ||||||||||
Balance - September 28, 2014 | $ | 22,407 | $ | 5,985 | $ | 28,392 | |||||||
Schedule of Intangible Assets By Major Class [Table Text Block] | ' | ||||||||||||
(thousands) | Sept. 28, 2014 | Weighted Average Useful Life (years) | Dec. 31, 2013 | Weighted Average Useful Life (years) | |||||||||
Customer relationships | $ | 42,258 | 11 | $ | 23,668 | 11 | |||||||
Non-compete agreements | 5,895 | 3 | 3,417 | 3 | |||||||||
Trademarks | 8,725 | 4,166 | |||||||||||
56,878 | 31,251 | ||||||||||||
Less: accumulated amortization | (8,676 | ) | (5,640 | ) | |||||||||
Other intangible assets, net | $ | 48,202 | $ | 25,611 | |||||||||
Schedule of Intangible Assets by Business Segment [Table Text Block] | ' | ||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||
Balance - December 31, 2013 | $ | 19,626 | $ | 5,985 | $ | 25,611 | |||||||
Acquisitions | 17,265 | 8,362 | 25,627 | ||||||||||
Amoritization | (2,156 | ) | (880 | ) | (3,036 | ) | |||||||
Balance - September 28, 2014 | $ | 34,735 | $ | 13,467 | $ | 48,202 |
Note_5_Acquisitions_Tables
Note 5 - Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 86 | |||||||||||||||
Inventories | 194 | ||||||||||||||||
Property, plant and equipment | 683 | ||||||||||||||||
Prepaid expenses | 125 | ||||||||||||||||
Accounts payable and accrued liabilities | (124 | ) | |||||||||||||||
Intangible assets | 230 | ||||||||||||||||
Goodwill | 57 | ||||||||||||||||
Total net purchase price | $ | 1,251 | |||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 1,425 | |||||||||||||||
Inventories | 208 | ||||||||||||||||
Property, plant and equipment | 7,032 | ||||||||||||||||
Prepaid expenses | 10 | ||||||||||||||||
Accounts payable and accrued liabilities | (847 | ) | |||||||||||||||
Intangible assets | 4,492 | ||||||||||||||||
Goodwill | 3,693 | ||||||||||||||||
Total net purchase price | $ | 16,013 | |||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 4,868 | |||||||||||||||
Inventories | 11,772 | ||||||||||||||||
Property, plant and equipment | 3,934 | ||||||||||||||||
Prepaid expenses | 129 | ||||||||||||||||
Accounts payable and accrued liabilities | (4,277 | ) | |||||||||||||||
Intangible assets | 20,905 | ||||||||||||||||
Goodwill | 8,025 | ||||||||||||||||
Total net purchase price | $ | 45,356 | |||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 1,545 | |||||||||||||||
Inventories | 250 | ||||||||||||||||
Property, plant and equipment | 917 | ||||||||||||||||
Prepaid expenses | 21 | ||||||||||||||||
Accounts payable and accrued liabilities | (2,135 | ) | |||||||||||||||
Intangible assets | 2,092 | ||||||||||||||||
Goodwill | 2,490 | ||||||||||||||||
Total net purchase price | $ | 5,180 | |||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 764 | |||||||||||||||
Inventories | 347 | ||||||||||||||||
Property, plant and equipment | 561 | ||||||||||||||||
Accounts payable and accrued liabilities | (1,357 | ) | |||||||||||||||
Intangible assets | 1,210 | ||||||||||||||||
Goodwill | 1,095 | ||||||||||||||||
Total net purchase price | $ | 2,620 | |||||||||||||||
(thousands) | |||||||||||||||||
Trade receivables | $ | 902 | |||||||||||||||
Inventories | 1,439 | ||||||||||||||||
Property, plant and equipment | 324 | ||||||||||||||||
Prepaid expenses | 9 | ||||||||||||||||
Accounts payable and accrued liabilities | (2,094 | ) | |||||||||||||||
Intangible assets | 5,461 | ||||||||||||||||
Goodwill | 2,670 | ||||||||||||||||
Total net purchase price | $ | 8,711 | |||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 28, | Sept. 29, | Sept. 28, | Sept. 29, | ||||||||||||||
(thousands except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | $ | 188,138 | $ | 177,832 | $ | 598,069 | $ | 554,577 | |||||||||
Net income | 7,254 | 5,297 | 24,719 | 20,508 | |||||||||||||
Net income per share – basic | 0.68 | 0.5 | 2.31 | 1.91 | |||||||||||||
Net income per share – diluted | 0.68 | 0.5 | 2.3 | 1.9 |
Note_7_Net_Income_Per_Common_S1
Note 7 - Net Income Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 28, | Sept. 29, | Sept. 28, | Sept. 29, | ||||||||||||||
(thousands except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income for basic and diluted per share calculation | $ | 7,254 | $ | 5,452 | $ | 23,381 | $ | 19,028 | |||||||||
Weighted average common shares outstanding - basic | 10,657 | 10,655 | 10,689 | 10,759 | |||||||||||||
Effect of potentially dilutive securities | 63 | 42 | 55 | 41 | |||||||||||||
Weighted average common shares outstanding - diluted | 10,720 | 10,697 | 10,744 | 10,800 | |||||||||||||
Basic net income per common share | $ | 0.68 | $ | 0.51 | $ | 2.19 | $ | 1.77 | |||||||||
Diluted net income per common share | $ | 0.68 | $ | 0.51 | $ | 2.18 | $ | 1.76 |
Note_9_Debt_Tables
Note 9 - Debt (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Required financial covenants compared to actual amounts [Table Text Block] | ' | ||||||||
(thousands except ratios) | Required | Actual | |||||||
Consolidated leverage ratio (12-month period) | 3.5 | 1.5 | |||||||
Consolidated interest coverage ratio (12-month period) | 2.25 | 7.3 | |||||||
Annual capital expenditures limitation (actual year-to-date) | $ | 10,000 | $ | 4,184 |
Note_12_Segment_Information_Ta
Note 12 - Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 138,512 | $ | 49,626 | $ | 188,138 | |||||||||||
Intersegment sales | 4,861 | 639 | 5,500 | ||||||||||||||
Operating income | 13,647 | 2,673 | 16,320 | ||||||||||||||
Third Quarter Ended September 29, 2013 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 112,578 | $ | 34,045 | $ | 146,623 | |||||||||||
Intersegment sales | 5,302 | 507 | 5,809 | ||||||||||||||
Operating income | 9,333 | 2,020 | 11,353 | ||||||||||||||
Nine Months Ended September 28, 2014 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 410,146 | $ | 135,997 | $ | 546,143 | |||||||||||
Intersegment sales | 15,176 | 1,874 | 17,050 | ||||||||||||||
Operating income | 43,062 | 7,522 | 50,584 | ||||||||||||||
Nine Months Ended September 29, 2013 | |||||||||||||||||
(thousands) | Manufacturing | Distribution | Total | ||||||||||||||
Net outside sales | $ | 349,068 | $ | 99,251 | $ | 448,319 | |||||||||||
Intersegment sales | 15,523 | 2,119 | 17,642 | ||||||||||||||
Operating income | 34,412 | 6,292 | 40,704 | ||||||||||||||
Reconciliation of Certain Line Items Pertaining to Total Reportable Segments [Table Text Block] | ' | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
Sept. 28, | Sept. 29, | Sept. 28, | Sept. 29, | ||||||||||||||
(thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating income for reportable segments | $ | 16,320 | $ | 11,353 | $ | 50,584 | $ | 40,704 | |||||||||
Gain (loss) on sale of fixed assets | 51 | (6 | ) | 27 | 424 | ||||||||||||
Unallocated corporate expenses | (2,473 | ) | (1,824 | ) | (7,807 | ) | (7,235 | ) | |||||||||
Amortization of intangible assets | (1,408 | ) | (548 | ) | (3,036 | ) | (1,588 | ) | |||||||||
Consolidated operating income | $ | 12,490 | $ | 8,975 | $ | 39,768 | $ | 32,305 |
Note_3_Inventories_Details_Inv
Note 3 - Inventories (Details) - Inventories (USD $) | Sep. 28, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $43,428 | $24,135 |
Work in process | 5,390 | 4,870 |
Finished goods | 4,329 | 3,877 |
Total materials purchased for resale (distribution products), net | 25,489 | 24,566 |
Total inventories | 76,989 | 56,510 |
Total manufactured goods, net | 51,500 | 31,944 |
Materials purchased for resale (distribution products) | 26,318 | 24,904 |
Manufactured Goods [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Less: reserve for inventory obsolescence | -1,647 | -938 |
Materials Purchased for Resale [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Less: reserve for inventory obsolescence | ($829) | ($338) |
Note_4_Goodwill_and_Intangible2
Note 4 - Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||
Sep. 28, 2014 | Sep. 28, 2014 | Dec. 31, 2013 | Sep. 28, 2014 | Jun. 29, 2014 | Jun. 29, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Jun. 29, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Jun. 29, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Jun. 29, 2014 | Sep. 28, 2014 | |
Trademarks [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | Customer Relationships and Non-compete Agreements [Member] | Customer Relationships and Non-compete Agreements [Member] | Customer Relationships and Non-compete Agreements [Member] | Precision [Member] | Foremost [Member] | PolyDyn3 [Member] | ||||
Precision [Member] | Foremost [Member] | PolyDyn3 [Member] | Precision [Member] | Foremost [Member] | PolyDyn3 [Member] | Precision [Member] | Foremost [Member] | PolyDyn3 [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Note 4 - Goodwill and Intangible Assets (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Intangible Asset Impairment | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived Intangible Assets Acquired | ' | ' | ' | ' | 2,904,000 | 15,485,000 | 201,000 | 483,000 | 4,070,000 | 6,000 | 1,105,000 | 1,350,000 | 23,000 | ' | ' | ' | ' | ' | ' |
Goodwill, Acquired During Period | ' | 11,897,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,693,000 | 8,025,000 | 57,000 |
Intangible Assets, Net (Excluding Goodwill) | $48,202,000 | $48,202,000 | $25,611,000 | $8,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $39,500,000 | ' | ' | ' |
Finite-Lived Intangible Asset, Weighted Average Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '19 years | ' | ' | ' | ' |
Note_4_Goodwill_and_Intangible3
Note 4 - Goodwill and Intangible Assets (Details) - Carrying Amount of Goodwill by Segment (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Carrying amount of goodwill | $28,392 | $16,495 |
Acquisitions | 11,897 | ' |
Manufacturing [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Carrying amount of goodwill | 22,407 | 13,720 |
Acquisitions | 8,687 | ' |
Distribution [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Carrying amount of goodwill | 5,985 | 2,775 |
Acquisitions | $3,210 | ' |
Note_4_Goodwill_and_Intangible4
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets, Net, by Major Class (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Dec. 31, 2013 |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets, Net, by Major Class [Line Items] | ' | ' |
Other intangible assets | $56,878 | $31,251 |
Less: accumulated amortization | -8,676 | -5,640 |
Other intangible assets, net | 48,202 | 25,611 |
Customer Relationships [Member] | ' | ' |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets, Net, by Major Class [Line Items] | ' | ' |
Other intangible assets | 42,258 | 23,668 |
Weighted average useful life | '11 years | '11 years |
Noncompete Agreements [Member] | ' | ' |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets, Net, by Major Class [Line Items] | ' | ' |
Other intangible assets | 5,895 | 3,417 |
Weighted average useful life | '3 years | '3 years |
Trademarks [Member] | ' | ' |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets, Net, by Major Class [Line Items] | ' | ' |
Other intangible assets | $8,725 | $4,166 |
Note_4_Goodwill_and_Intangible5
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets by Segment (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 31, 2013 |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets by Segment [Line Items] | ' | ' | ' | ' | ' |
Carrying value of other intangible assets | $48,202 | ' | $48,202 | ' | $25,611 |
Acquisitions | ' | ' | 25,627 | ' | ' |
Amoritization | -1,408 | -548 | -3,036 | -1,588 | ' |
Manufacturing [Member] | ' | ' | ' | ' | ' |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets by Segment [Line Items] | ' | ' | ' | ' | ' |
Carrying value of other intangible assets | 34,735 | ' | 34,735 | ' | 19,626 |
Acquisitions | ' | ' | 17,265 | ' | ' |
Amoritization | ' | ' | -2,156 | ' | ' |
Distribution [Member] | ' | ' | ' | ' | ' |
Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets by Segment [Line Items] | ' | ' | ' | ' | ' |
Carrying value of other intangible assets | 13,467 | ' | 13,467 | ' | 5,985 |
Acquisitions | ' | ' | 8,362 | ' | ' |
Amoritization | ' | ' | ($880) | ' | ' |
Note_5_Acquisitions_Details
Note 5 - Acquisitions (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Jul. 27, 2014 | Jun. 29, 2014 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 28, 2014 | |
Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | PolyDyn3 [Member] | Precision [Member] | Foremost [Member] | Frontline [Member] | Premier Concepts, Inc. [Member] | West Side Furniture [Member] | Frontline, Premier and West Side [Member] | Frontline, Premier and West Side [Member] | Precision and Foremost [Member] | Precision and Foremost [Member] | Precision and Foremost [Member] | Acquired Entities [Member] | Acquired Entities [Member] | |||
Frontline [Member] | Frontline [Member] | Premier Concepts, Inc. [Member] | Premier Concepts, Inc. [Member] | ||||||||||||||||
Note 5 - Acquisitions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $62,620,000 | $16,544,000 | ' | ' | ' | ' | $1,300,000 | $16,000,000 | $45,400,000 | $5,200,000 | $2,600,000 | $8,700,000 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Separately Recognized Transactions, Net Gains and Losses | ' | ' | 300,000 | 300,000 | 200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 900,000 | 600,000 | 1,200,000 | 1,900,000 | ' | ' |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 26,600,000 |
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,800,000 | $1,800,000 |
Note_5_Acquisitions_Details_Fa
Note 5 - Acquisitions (Details) - Fair Value of Assets Acquired, Summary (USD $) | Sep. 28, 2014 | Dec. 31, 2013 | Sep. 28, 2014 | Jun. 29, 2014 | Jun. 29, 2014 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 |
In Thousands, unless otherwise specified | PolyDyn3 [Member] | Precision [Member] | Foremost [Member] | Frontline [Member] | Premier Concepts, Inc. [Member] | West Side Furniture [Member] | ||
Note 5 - Acquisitions (Details) - Fair Value of Assets Acquired, Summary [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Trade receivables | ' | ' | $86 | $1,425 | $4,868 | $1,545 | $764 | $902 |
Inventories | ' | ' | 194 | 208 | 11,772 | 250 | 347 | 1,439 |
Property, plant and equipment | ' | ' | 683 | 7,032 | 3,934 | 917 | 561 | 324 |
Prepaid expenses | ' | ' | 125 | 10 | 129 | 21 | ' | 9 |
Accounts payable and accrued liabilities | ' | ' | -124 | -847 | -4,277 | -2,135 | -1,357 | -2,094 |
Intangible assets | ' | ' | 230 | 4,492 | 20,905 | 2,092 | 1,210 | 5,461 |
Goodwill | 28,392 | 16,495 | 57 | 3,693 | 8,025 | 2,490 | 1,095 | 2,670 |
Total net purchase price | ' | ' | $1,251 | $16,013 | $45,356 | $5,180 | $2,620 | $8,711 |
Note_5_Acquisitions_Details_Pr
Note 5 - Acquisitions (Details) - Pro Forma Information Related to Acquisitions (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Pro Forma Information Related to Acquisitions [Abstract] | ' | ' | ' | ' |
Revenue | $188,138 | $177,832 | $598,069 | $554,577 |
Net income | $7,254 | $5,297 | $24,719 | $20,508 |
Net income per share – basic | $0.68 | $0.50 | $2.31 | $1.91 |
Net income per share – diluted | $0.68 | $0.50 | $2.30 | $1.90 |
Note_6_StockBased_Compensation1
Note 6 - Stock-Based Compensation (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | 22-May-14 | Feb. 12, 2014 | Feb. 18, 2014 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 30, 2014 | Feb. 18, 2014 | Mar. 04, 2013 | 23-May-13 | Mar. 11, 2013 | Dec. 18, 2013 | Dec. 18, 2013 |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Stock Appreciation Rights (SARs) [Member] | 2009 Omnibus Incentive Plan [Member] | ||||||||||
Note 6 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | ' | ' | ' | ' | $0.90 | $0.30 | $2.50 | $0.90 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 89,947 | 19,480 | 5,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 296 | 10,560 | 34,000 | 65,668 | ' | ' | ' | ' | ' | 44,001 | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $5.80 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | '21 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' |
Note_7_Net_Income_Per_Common_S2
Note 7 - Net Income Per Common Share (Details) - Earnings Per Common Share (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Earnings Per Common Share [Abstract] | ' | ' | ' | ' |
Net income for basic and diluted per share calculation (in Dollars) | $7,254 | $5,452 | $23,381 | $19,028 |
Weighted average common shares outstanding - basic | 10,657 | 10,655 | 10,689 | 10,759 |
Effect of potentially dilutive securities | 63 | 42 | 55 | 41 |
Weighted average common shares outstanding - diluted | 10,720 | 10,697 | 10,744 | 10,800 |
Basic net income per common share (in Dollars per share) | $0.68 | $0.51 | $2.19 | $1.77 |
Diluted net income per common share (in Dollars per share) | $0.68 | $0.51 | $2.18 | $1.76 |
Note_8_Other_NonCurrent_Assets1
Note 8 - Other Non-Current Assets (Details) (USD $) | Sep. 28, 2014 | Dec. 31, 2013 |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Other Assets, Noncurrent | $1,005,000 | $982,000 |
Loans, Gross, Insurance Policy | $2,800,000 | $2,700,000 |
Note_9_Debt_Details
Note 9 - Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Dec. 31, 2013 | Sep. 28, 2014 | Oct. 24, 2012 | Sep. 28, 2014 | Dec. 31, 2013 | Jun. 26, 2014 | Sep. 28, 2014 | |
Required [Member] | Required [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Same Day Advance Swing Line [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Prime Rate [Member] | |||||||
Minimum [Member] | Maximum [Member] | |||||||||||||
Note 9 - Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | $80,000,000 | ' | ' | $125,000,000 | $20,000,000 |
Long-term Line of Credit (in Dollars) | ' | ' | ' | ' | ' | ' | 96,000,000 | ' | 11,300,000 | ' | 107,300,000 | 55,000,000 | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | 1.50% | 1.50% | 0.50% | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | 1.63% | 1.69% | 3.75% | ' | ' | ' | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.20% | ' | ' |
Consolidated Leverage Ratio | 3.5 | 3.5 | 3 | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated Interest Coverage Ratio | 2.25 | 2.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Capital Expenditures Limitation And Actual Year To Date (in Dollars) | ' | $10,000,000 | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Asset Coverage Ratio | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_9_Debt_Details_Required_F
Note 9 - Debt (Details) - Required Financial Covenants Compared to Actual Amounts (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2014 |
Required [Member] | ' |
Note 9 - Debt (Details) - Required Financial Covenants Compared to Actual Amounts [Line Items] | ' |
Consolidated leverage ratio (12-month period) | 3.5 |
Consolidated interest coverage ratio (12-month period) | 2.25 |
Annual capital expenditures limitation (actual year-to-date) (in Dollars) | $10,000 |
Scenario, Actual [Member] | ' |
Note 9 - Debt (Details) - Required Financial Covenants Compared to Actual Amounts [Line Items] | ' |
Consolidated leverage ratio (12-month period) | 1.5 |
Consolidated interest coverage ratio (12-month period) | 7.3 |
Annual capital expenditures limitation (actual year-to-date) (in Dollars) | $4,184 |
Note_11_Income_Taxes_Details
Note 11 - Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 31, 2013 |
Note 11 - Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent | 38.50% | 35.40% | 39.00% | 39.00% | 38.50% | 38.00% | 38.00% |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (in Dollars) | ' | ' | ' | ' | $1.10 | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' | ' | ' | ' |
Note 11 - Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards (in Dollars) | 2.2 | ' | ' | ' | $2.20 | ' | 4.5 |
Note_12_Segment_Information_De
Note 12 - Segment Information (Details) (Sales Revenue, Goods, Net [Member], Product Concentration Risk [Member]) | 9 Months Ended | |
Sep. 28, 2014 | Sep. 29, 2013 | |
Manufacturing [Member] | ' | ' |
Note 12 - Segment Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 75.00% | 78.00% |
Distribution [Member] | ' | ' |
Note 12 - Segment Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 25.00% | 22.00% |
Note_12_Segment_Information_De1
Note 12 - Segment Information (Details) - Net Income, Assets and Certain Other Items of Segments (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | $188,138 | $146,623 | $546,143 | $448,319 |
Operating income | 12,490 | 8,975 | 39,768 | 32,305 |
Outside Sales [Member] | Manufacturing [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 138,512 | 112,578 | 410,146 | 349,068 |
Outside Sales [Member] | Distribution [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 49,626 | 34,045 | 135,997 | 99,251 |
Outside Sales [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 188,138 | 146,623 | 546,143 | 448,319 |
Inside Sales [Member] | Manufacturing [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 4,861 | 5,302 | 15,176 | 15,523 |
Inside Sales [Member] | Distribution [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 639 | 507 | 1,874 | 2,119 |
Inside Sales [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Sales | 5,500 | 5,809 | 17,050 | 17,642 |
Manufacturing [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 13,647 | 9,333 | 43,062 | 34,412 |
Distribution [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | 2,673 | 2,020 | 7,522 | 6,292 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income | $16,320 | $11,353 | $50,584 | $40,704 |
Note_12_Segment_Information_De2
Note 12 - Segment Information (Details) - Reconciliation of Certain Line Items Pertaining to Total Reportable Segments to Consolidated Financial Statements (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Note 12 - Segment Information (Details) - Reconciliation of Certain Line Items Pertaining to Total Reportable Segments to Consolidated Financial Statements [Line Items] | ' | ' | ' | ' |
Operating income | $12,490 | $8,975 | $39,768 | $32,305 |
Gain (loss) on sale of fixed assets | 51 | -6 | 27 | 424 |
Unallocated corporate expenses | -2,473 | -1,824 | -7,807 | -7,235 |
Amortization of intangible assets | -1,408 | -548 | -3,036 | -1,588 |
Operating Segments [Member] | ' | ' | ' | ' |
Note 12 - Segment Information (Details) - Reconciliation of Certain Line Items Pertaining to Total Reportable Segments to Consolidated Financial Statements [Line Items] | ' | ' | ' | ' |
Operating income | $16,320 | $11,353 | $50,584 | $40,704 |
Note_13_Stock_Repurchase_Progr1
Note 13 - Stock Repurchase Program (Details) (USD $) | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 28, 2014 | Feb. 13, 2014 | Feb. 22, 2013 | Oct. 24, 2014 |
Subsequent Event [Member] | |||||
Note 13 - Stock Repurchase Program (Details) [Line Items] | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | $20 | $10 | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | 3.9 | ' | ' |
Treasury Stock, Shares, Acquired (in Shares) | 78,183 | 172,729 | ' | ' | 704,137 |
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $41.50 | $40.11 | ' | ' | $25.47 |
Treasury Stock, Value, Acquired, Cost Method | $3.20 | $6.90 | ' | ' | $17.90 |