Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 17, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'MICROFINANCIAL INC | ' | ' |
Entity Central Index Key | '0000827230 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 14,417,185 | ' |
Entity Public Float | ' | ' | $69,742,148 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $2,246 | $3,557 |
Restricted cash | 1,107 | 1,213 |
Net investment in leases: | ' | ' |
Receivables due in installments | 214,628 | 213,466 |
Estimated residual value | 23,070 | 24,176 |
Initial direct costs | 1,732 | 1,751 |
Less: | ' | ' |
Advance lease payments and deposits | -3,010 | -3,278 |
Unearned income | -58,772 | -62,244 |
Allowance for credit losses | -15,379 | -14,038 |
Net investment in leases | 162,269 | 159,833 |
Investment in service contracts, net | 2,058 | 797 |
Investment in rental contracts, net | 1,059 | 1,037 |
Property and equipment, net | 1,333 | 1,534 |
Other assets | 2,980 | 1,658 |
Total assets | 173,052 | 169,629 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Revolving line of credit | 72,566 | 70,380 |
Accounts payable | 2,993 | 3,220 |
Dividends payable | 63 | 40 |
Other liabilities | 2,272 | 2,545 |
Income taxes payable | ' | 653 |
Deferred income taxes | 6,678 | 10,399 |
Total liabilities | 84,572 | 87,237 |
Commitments and contingencies (Note M) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2013 and 2012 | ' | ' |
Common stock, $.01 par value; 25,000,000 shares authorized; 14,435,498 and 14,470,219 shares issued and outstanding at December 31, 2013, and 2012, respectively | 144 | 145 |
Additional paid-in capital | 47,475 | 47,500 |
Retained earnings | 40,861 | 34,747 |
Total stockholders' equity | 88,480 | 82,392 |
Total liabilities and stockholders' equity | $173,052 | $169,629 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 14,435,498 | 14,470,219 |
Common stock, shares outstanding | 14,435,498 | 14,470,219 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Income on financing leases | $41,153 | $40,008 | $37,032 |
Rental income | 10,534 | 9,737 | 8,574 |
Income on service contracts | 936 | 388 | 398 |
Loss and damage waiver fees | 5,859 | 5,385 | 4,929 |
Service fees and other | 4,036 | 3,798 | 3,740 |
Total revenues | 62,518 | 59,316 | 54,673 |
Expenses: | ' | ' | ' |
Selling, general and administrative | 18,514 | 17,466 | 15,873 |
Provision for credit losses | 19,530 | 19,490 | 18,250 |
Depreciation and amortization | 5,448 | 4,355 | 3,270 |
Interest | 2,703 | 2,639 | 2,661 |
Total expenses | 46,195 | 43,950 | 40,054 |
Income before provision for income taxes | 16,323 | 15,366 | 14,619 |
Provision for income taxes | 6,560 | 6,015 | 5,628 |
Net income | $9,763 | $9,351 | $8,991 |
Net income per common share - basic | $0.68 | $0.65 | $0.63 |
Net income per common share - diluted | $0.66 | $0.64 | $0.62 |
Weighted average shares outstanding - basic | 14,460,613 | 14,321,815 | 14,247,413 |
Weighted average shares outstanding - diluted | 14,774,529 | 14,689,531 | 14,525,566 |
Dividends declared per common share | $0.25 | $0.24 | $0.21 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Retained Capital [Member] | Earnings [Member] |
In Thousands, except Share data | ||||
Balance, Beginning at Dec. 31, 2010 | $69,487 | $142 | $46,475 | $22,870 |
Balance Beginning, shares at Dec. 31, 2010 | ' | 14,231,933 | ' | ' |
Stock issued for director compensation | 354 | 1 | 353 | ' |
Stock issued for director compensation , shares | ' | 77,274 | ' | ' |
Stock-based compensation | 138 | ' | 138 | ' |
Repurchase of common stock | -239 | ' | -239 | ' |
Repurchase of common stock, shares | ' | -51,883 | ' | ' |
Common stock dividends ($0.21, $0.24, $0.25 for year 2011, 2012, 2013 respectively) | -3,008 | ' | ' | -3,008 |
Net income | 8,991 | ' | ' | 8,991 |
Balance, Ending at Dec. 31, 2011 | 75,723 | 143 | 46,727 | 28,853 |
Balance Ending, Shares at Dec. 31, 2011 | ' | 14,257,324 | ' | ' |
Stock issued for director compensation | 346 | ' | 346 | ' |
Stock issued for director compensation , shares | ' | 48,148 | ' | ' |
Stock-based compensation | 191 | ' | 191 | ' |
Shares issued upon vesting of restricted stock units | ' | 8,380 | ' | ' |
Warrants exercised | ' | 6,367 | ' | ' |
Stock options exercised | 238 | 2 | 236 | ' |
Stock options exercised, shares | 150,000 | 150,000 | ' | ' |
Common stock dividends ($0.21, $0.24, $0.25 for year 2011, 2012, 2013 respectively) | -3,457 | ' | ' | -3,457 |
Net income | 9,351 | ' | ' | 9,351 |
Balance, Ending at Dec. 31, 2012 | 82,392 | 145 | 47,500 | 34,747 |
Balance Ending, Shares at Dec. 31, 2012 | ' | 14,470,219 | ' | ' |
Stock issued for director compensation | 361 | ' | 361 | ' |
Stock issued for director compensation , shares | ' | 45,792 | ' | ' |
Stock-based compensation | 232 | ' | 232 | ' |
Shares issued upon vesting of restricted stock units | ' | 16,640 | ' | ' |
Repurchase of common stock | -708 | -1 | -707 | ' |
Repurchase of common stock, shares | ' | -97,153 | ' | ' |
Excess tax benefits from share-based compensation | 89 | ' | 89 | ' |
Common stock dividends ($0.21, $0.24, $0.25 for year 2011, 2012, 2013 respectively) | -3,649 | ' | ' | -3,649 |
Net income | 9,763 | ' | ' | 9,763 |
Balance, Ending at Dec. 31, 2013 | $88,480 | $144 | $47,475 | $40,861 |
Balance Ending, Shares at Dec. 31, 2013 | ' | 14,435,498 | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Common stock dividends per share | $0.25 | $0.24 | $0.21 |
Earnings [Member] | ' | ' | ' |
Common stock dividends per share | $0.25 | $0.24 | $0.21 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Cash received from customers | $130,847 | $121,839 | $106,298 |
Cash paid to suppliers and employees | -24,086 | -21,694 | -19,594 |
Cash paid for income taxes | -12,092 | -6,983 | -791 |
Excess tax benefits from share-based compensation | -89 | ' | ' |
Interest paid | -2,398 | -2,381 | -2,446 |
Interest received | ' | ' | 1 |
Net cash provided by operating activities | 92,182 | 90,781 | 83,468 |
Cash flows from investing activities: | ' | ' | ' |
Investment in lease and service contracts | -89,710 | -90,777 | -77,684 |
Investment in direct costs | -1,461 | -1,595 | -1,120 |
Investment in property and equipment | -369 | -221 | -831 |
Net cash used in investing activities | -91,540 | -92,593 | -79,635 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from revolving line of credit | 136,933 | 129,180 | 106,446 |
Repayment of revolving line of credit | -134,747 | -121,540 | -106,356 |
Payments of debt closing costs | ' | -693 | -112 |
(Increase) decrease in restricted cash | 106 | -831 | 371 |
Repayment of capital leases | ' | -1 | -25 |
Repurchase of common stock | -708 | ' | -239 |
Proceeds from stock option exercises | ' | 238 | ' |
Excess tax benefits from share-based compensation | 89 | ' | ' |
Payment of dividends | -3,626 | -3,436 | -2,994 |
Net cash (used in) provided by financing activities | -1,953 | 2,917 | -2,909 |
Net change in cash and cash equivalents | -1,311 | 1,105 | 924 |
Cash and cash equivalents, beginning | 3,557 | 2,452 | 1,528 |
Cash and cash equivalents, ending | 2,246 | 3,557 | 2,452 |
Reconciliation of net income to net cash provided by operating activities: | ' | ' | ' |
Net income | 9,763 | 9,351 | 8,991 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of unearned income, net of initial direct costs | -41,153 | -40,008 | -37,032 |
Depreciation and amortization | 5,448 | 4,355 | 3,270 |
Provision for credit losses | 19,530 | 19,490 | 18,250 |
Recovery of equipment cost and residual value | 104,237 | 96,970 | 84,267 |
Stock-based compensation expense | 232 | 191 | 138 |
Excess tax benefits from share-based compensation | -89 | ' | ' |
(Decrease) increase in deferred income taxes liability | -3,721 | -934 | 3,706 |
Changes in assets and liabilities: | ' | ' | ' |
(Increase) decrease in other assets | -1,322 | 128 | 599 |
Increase in accounts payable | 134 | 1,020 | 465 |
(Decrease) increase in other liabilities | -313 | 325 | 54 |
(Decrease) increase in income taxes payable | -564 | -107 | 760 |
Net cash provided by operating activities | 92,182 | 90,781 | 83,468 |
Supplemental disclosure of non-cash activities: | ' | ' | ' |
Fair value of stock issued for compensation | 361 | 346 | 354 |
Acquisition of property and equipment through lease incentives | 39 | ' | 791 |
Non-cash transfer of leases to rentals | $4,360 | $3,810 | $836 |
Nature_of_Business
Nature of Business | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of Business | ' |
A. Nature of Business | |
MicroFinancial Incorporated (referred to as “MicroFinancial,” “we,” “us” or “our”) operates primarily through its wholly-owned subsidiaries, TimePayment Corp. and LeaseComm Corporation. TimePayment is a specialized commercial/consumer finance company that leases and rents equipment and provides other financing services, with a primary focus on the “microticket” market. LeaseComm originated leases from January 1986 through October 2002, and continues to service its remaining contract portfolio. TimePayment commenced originating leases in July 2004, and began acquiring security monitoring service contracts in the second quarter of 2012. We primarily source our originations through a nationwide network of independent equipment vendors, sales organizations and other dealer-based origination networks. We fund our operations through cash provided by operating activities and borrowings under our revolving line of credit. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
B. Summary of Significant Accounting Policies | ||||
Basis of Presentation | ||||
The consolidated financial statements include the accounts of MicroFinancial and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | ||||
Segment Reporting | ||||
We operate in one industry segment that leases and rents microticket equipment and provides other financing services. All of our operations are located in the United States. Accordingly, we believe we have a single reportable segment for disclosure purposes. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Significant areas requiring the use of management estimates are revenue recognition, the allowance for credit losses, share-based payments and income taxes. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents | ||||
We consider all highly liquid instruments purchased with original maturities of less than three months to be cash equivalents. Cash equivalents consist principally of overnight investments, collateralized repurchase agreements, commercial paper, certificates of deposit and US government and agency securities. As of December 31, 2013 and 2012, our cash equivalents consisted of overnight investments. Cash equivalents are stated at cost, which approximates fair value. | ||||
Restricted Cash | ||||
Our line of credit requires that all TimePayment cash receipts be deposited into a cash collateral account held by Santander Bank (formerly known as Sovereign Bank) (“Santander”). These funds are applied directly to amounts outstanding under the line of credit as they clear. Those funds which are pending clearance and application against the line of credit are deemed to be restricted. | ||||
Revenue Recognition | ||||
Our lease contracts are accounted for as financing leases. At origination, we record the gross lease receivable, the estimated residual value of the leased equipment, initial direct costs incurred and the unearned lease income. Unearned lease income is the amount by which the gross lease receivable plus the estimated residual value exceeds the cost of the equipment. Unearned lease income and initial direct costs incurred are amortized over the related lease term using the interest method. Amortization of unearned lease income and initial direct costs is suspended and the contract written off, if, in our opinion, full payment of the contractual amount due under the lease agreement is doubtful. In conjunction with the origination of leases, we may retain a residual interest in the underlying equipment upon termination of the lease. The value of such interest is estimated at inception of the lease and evaluated periodically for impairment. At the end of the lease term, the lessee has the option to buy the equipment at the fair market value (“buyouts”), return the equipment or continue to rent the equipment on a month-to-month basis. If the lessee continues to rent the equipment, we record our investment in the rental contract at its estimated residual value. Rental income from monthly billings is recognized as the customer continues to rent the equipment. We also acquire service contracts under which a homeowner purchases a security system and simultaneously signs a contract with the dealer for the monitoring of that system for a monthly fee. We purchase the right to the payment stream under the monitoring contract from the dealer. Income on service contracts from monthly billings is recognized as the related services are provided. Other revenues, such as loss and damage waiver fees and service fees relating to the leases and contracts, are recognized as they are earned. | ||||
Allowance for Credit Losses and Credit Quality | ||||
We maintain an allowance for credit losses on our investment in leases, service contracts and rental contracts at an amount that we believe is sufficient to provide adequate protection against losses in our portfolio. Given the nature of the microticket market and the individual size of each contract, we do not have a formal credit review committee to review individual contracts. Rather, we have developed a sophisticated, multi-tiered pricing model and have automated the credit scoring, approval and collection processes. We believe that with the proper pricing model, we can grant credit to a wide range of applicants provided we have priced appropriately for the associated risk. As a result of approving a wide range of credits, we experience a relatively high level of delinquency and write-offs in our portfolio. We periodically review the credit scoring and approval process to ensure that the automated system is making appropriate credit decisions. Given the nature of the microticket market and the individual size of each contract, we do not evaluate contracts individually for the purpose of developing and determining the adequacy of the allowance for credit losses. Contracts in our portfolio are not re-graded subsequent to the initial extension of credit and the allowance is not allocated to specific contracts. Rather, we view the contracts as having common characteristics and maintain a general allowance against our entire portfolio utilizing historical collection statistics and an assessment of current credit risk in the portfolio as the basis for the amount. | ||||
Each period, the provision for credit losses in the consolidated statements of income results from the combination of an estimate by management of credit losses that occurred during the current period and the ongoing adjustment of prior estimates of losses occurring in prior periods. To serve as a basis for making this provision, we have adopted a consistent, systematic procedure for establishing and maintaining an appropriate allowance for credit losses for our contracts. We estimate the likelihood of credit losses net of recoveries in the portfolio at each reporting period based upon a combination of an internally-developed proprietary scoring model that considers several factors including the lessee’s bureau-reported credit score at contract inception and the current delinquency status of the account. In addition to these elements, we also consider other relevant factors including general economic trends, actual historical losses, trends in delinquencies and credit losses, static pool analysis of our portfolio, trends in recoveries made on charged off accounts, and other relevant factors which might affect the performance of our portfolio. This combination of historical experience, credit scores, delinquency levels, trends in credit losses, and the review of current factors provides the basis for our analysis of the adequacy of the allowance for credit losses. In general, a receivable is deemed uncollectable when it is 360 days past due or earlier if other adverse events occur with respect to an account. None of our receivables are placed on non-accrual status as contracts are charged off when deemed uncollectible. Historically, the typical monthly payment under our microticket contracts has been small and as a result, our experience is that lessees will pay past due amounts later in the process because of the relatively small amount necessary to bring a contract current. | ||||
We segregate our contract portfolio between TimePayment and LeaseComm to perform the calculation and analysis of the allowance for credit losses. Each subsidiary consists of a single portfolio segment – microticket equipment. Leases of microticket equipment and other contracts are made to businesses and individuals and are generally secured by assets of the business or a personal guarantee. Repayment is expected from the cash flows of the business or individual. A weakened economy, and resultant decreased consumer spending, may have a negative effect on the credit quality in this segment. | ||||
We assign internal risk ratings for all lessees and determine the creditworthiness of each contract based upon this internally-developed proprietary scoring model. The LeaseComm portfolio is evaluated in total, with a reserve calculated based upon the aging of the portfolio and our collection experience. The TimePayment scoring model generates one of ten acceptable risk ratings based upon the creditworthiness of each application or it rejects the application. The scores are assigned at contract inception, and these scores are maintained over the contract term regardless of payment performance. To facilitate review and reporting, management aggregates these ten scores into one of three categories with similar risk profiles and delinquency characteristics identified as Gold, Silver or Bronze. | ||||
• | Contracts assigned a Gold rating represent those transactions which exhibit the best risk rating based on our internal credit scores. They are considered of sufficient quality to preclude an otherwise adverse rating. Gold rated contracts are typically represented by lessees with high bureau-reported credit scores for personal guarantors at contract inception or are supported by established businesses for those transactions which are not personally guaranteed by the lessee. | |||
• | Contracts assigned a Silver rating fall in the middle range of the ten acceptable scores generated by the scoring model. These transactions possess a reasonable amount of risk based on their profile and may exhibit vulnerability to deterioration if adverse factors are encountered. These contracts typically demonstrate adequate coverage but warrant a higher level of monitoring by management to ensure that weaknesses do not advance. | |||
• | A Bronze rating applies to contracts at the lower end of the ten acceptable scores generated by the scoring model whereby the lessee may have difficulty meeting the contract obligation if adverse factors are encountered. Bronze rated contracts typically have lower reported credit scores at contract inception and will typically have other less desirable credit attributes. | |||
See Note C for details of our allowance for credit losses and the aged analysis of past due financing receivables based upon our internally-developed proprietary scoring model. | ||||
Investment in Service Contracts | ||||
Our investments in service contracts are recorded at cost and amortized over the term of the contract. Upon retirement or other disposition, the cost and related accumulated amortization are removed from the accounts and any resulting gain or loss is reflected in income. We periodically evaluate whether events or circumstances have occurred that may affect the estimated useful life or recoverability of our investment in service contracts. Prior to 2012, our service contract revenue was derived from our LeaseComm portfolio, for which we have not purchased any new security service contracts since 2002. Beginning in the second quarter of 2012, TimePayment began acquiring service contracts. | ||||
Investment in Rental Contracts | ||||
Our investment in rental contracts is either recorded at estimated residual value for converted leases and depreciated using the straight-line method over a period of twelve months or recorded at the acquisition cost and depreciated using the straight line method over an estimated life of three years. Rental equipment consists of a wide variety of low-priced commercial equipment with similar characteristics. Upon retirement or other disposition, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. Dispositions include equipment buyouts, returns and write-offs. We periodically evaluate whether events or circumstances have occurred that may affect the estimated useful life or recoverability of the investment in rental contracts. | ||||
Property and Equipment | ||||
Office and computer equipment are recorded at cost and depreciated using the straight-line method over estimated lives of approximately three to five years. Leasehold improvements are amortized over the shorter of the life of the lease or the estimated life of the improvement. Upon retirement or other disposition, the cost and related accumulated depreciation of the assets are removed from the accounts and any resulting gain or loss is reflected in income. | ||||
Fair Value of Financial Instruments | ||||
Accounting for fair value measurements involves a single definition of fair value, along with a conceptual framework to measure fair value, with fair value defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The fair value measurement hierarchy consists of three levels: | ||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||
Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||
Level 3 – Unobservable inputs developed using estimates and assumptions which are developed by the reporting entity and reflect those assumptions that a market participant would use. | ||||
We apply valuation techniques that (1) place greater reliance on observable inputs and less reliance on unobservable inputs and (2) are consistent with the market approach, the income approach and/or the cost approach. | ||||
The carrying values of cash and cash equivalents, restricted cash, other assets, accounts payable and other liabilities approximate their fair values due to the short maturity of these instruments. The fair value of the amounts outstanding under our revolving line of credit, evaluated using Level 2 inputs as of December 31, 2013 and 2012, approximated the carrying value. | ||||
Debt Issue Costs | ||||
Costs incurred in securing financing are capitalized in other assets and amortized over the term of the financing, which is considered the interval from the current date until the expiration of the credit facility. When we modify our revolving line of credit, we evaluate the arrangement in accordance with Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 470, Line-of-Credit or Revolving-Debt Arrangements. In accordance with this guidance, if the borrowing capacity of the new arrangement is greater than or equal to the borrowing capacity of the old arrangement, then any unamortized deferred costs, any fees paid to the creditor, and any third-party costs incurred shall be associated with the new arrangement (that is, deferred and amortized over the term of the new arrangement). | ||||
Income Taxes | ||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes. FASB ASC Topic 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. | ||||
FASB ASC Topic 740 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement and classification of amounts relating to uncertain tax positions, accounting for and disclosure of interest and penalties, accounting in interim periods, disclosures and transition relating to the adoption of the new accounting standard. | ||||
Net Income per Common Share | ||||
Basic net income per common share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per common share gives effect to all potentially dilutive common shares outstanding during the period. The computation of diluted net income per share does not assume the issuance of common shares that have an antidilutive effect on net income per common share. | ||||
Stock-Based Employee Compensation | ||||
We have adopted the fair value recognition provisions of FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires us to recognize the compensation cost related to share-based payment transactions with employees in the financial statements. The compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense as it is earned over the requisite service period, which is the vesting period. Share-based compensation transactions with employees covered by FASB ASC Topic 718 include share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. | ||||
We estimate the fair value of stock options using a Black-Scholes valuation model and a 0% expected forfeiture rate, consistent with the provisions of FASB ASC Topic 718 and Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 107 Share Based Payments. Key input assumptions used to estimate the fair value of stock options include the expected option term, volatility of the stock, the risk-free interest rate and the dividend yield. | ||||
The expected life represents the average period of time that the options are expected to be outstanding given consideration to vesting schedules; annualized volatility is based on historical volatilities of our common stock; dividend yield represents the current dividend yield expressed as a constant percentage of our stock price and the risk-free interest rate is based on the U.S. Treasury yield curve in effect on the measurement date for periods corresponding to the expected life of the option. | ||||
Restricted stock units (“RSUs”) are valued at the stock price at date of grant, and expensed ratably over the performance period or vesting period, as appropriate. The number of performance-based RSUs for which stock compensation expense is calculated is based upon management’s assessment of the likelihood of achieving the performance targets. | ||||
Non-employee stock-based compensation is accounted for in accordance with FASB ASC Topic 505, Equity-based payments to non-employees. In accordance with this topic, cost recognized for non-employee share-based payment transactions is determined by the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. | ||||
Lease Obligation and Deferred Rent | ||||
We lease our facilities, located in Massachusetts and California, under multi-year operating lease agreements. We account for these leases in accordance with FASB ASC Topic 840, Leases. In connection with these two lease agreements, we received landlord incentives for build out expenses incurred. The incentive or allowance is recorded as deferred rent and amortized as a reduction to lease expense over the initial lease terms. Rent expense is recorded on a straight-line basis. | ||||
Concentration of Credit Risk | ||||
Our financial instruments that are exposed to concentration of credit risk consist primarily of lease and rental receivables and cash and cash equivalent balances. To reduce our risk, credit policies are in place for approving leases and the lease pools are monitored by us. In addition, cash and cash equivalents are maintained at high-quality financial institutions. | ||||
Financial instruments that subject us to concentrations of credit risk principally consist of cash equivalents and deposits in bank accounts. We deposit our cash and invest in short-term investments primarily through national commercial banks. Deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) are exposed to loss in the event of nonperformance by the institution. The Company has had cash deposits in excess of the FDIC insurance coverage. However, we have not experienced any losses in such accounts. | ||||
Net_Investment_in_Leases
Net Investment in Leases | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Net Investment in Leases | ' | ||||||||||||||||||||||||
C. Net Investment in Leases | |||||||||||||||||||||||||
Future Minimum Lease Payments | |||||||||||||||||||||||||
At December 31, 2013, future minimum payments due on our lease receivables are as follows: | |||||||||||||||||||||||||
Year Ending December 31, | |||||||||||||||||||||||||
2014 | $ | 105,117 | |||||||||||||||||||||||
2015 | 61,058 | ||||||||||||||||||||||||
2016 | 32,293 | ||||||||||||||||||||||||
2017 | 12,958 | ||||||||||||||||||||||||
2018 | 3,202 | ||||||||||||||||||||||||
Total | $ | 214,628 | |||||||||||||||||||||||
At December 31, 2013, the weighted-average remaining life of the leases in our portfolio was approximately 26 months, and their weighted-average implicit rate of interest was approximately 25.5%. At December 31, 2012, the weighted-average remaining life of the leases in our portfolio was approximately 28 months, and their weighted-average implicit rate of interest was approximately 25.9%. | |||||||||||||||||||||||||
Estimated Residual Value | |||||||||||||||||||||||||
A summary of the changes in estimated residual value is as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Estimated residual value, beginning | $ | 24,176 | $ | 23,287 | $ | 21,832 | |||||||||||||||||||
Lease originations | 7,574 | 8,737 | 8,279 | ||||||||||||||||||||||
Terminations | (8,680 | ) | (7,848 | ) | (6,824 | ) | |||||||||||||||||||
Estimated residual value, ending | $ | 23,070 | $ | 24,176 | $ | 23,287 | |||||||||||||||||||
Originations represent the residual value capitalized upon origination of leases and terminations represent the residual value deducted upon the termination of a lease that (i) is bought out during or at the end of the lease term, (ii) has completed its original lease term and converted to an extended rental contract, (iii) has been charged off by us, or (iv) has been returned to us and recorded as inventory. | |||||||||||||||||||||||||
Allowance for Credit Losses and Credit Quality | |||||||||||||||||||||||||
The following table reconciles the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Microticket Equipment | |||||||||||||||||||||||||
LeaseComm | TimePayment | Total | |||||||||||||||||||||||
Allowance for credit losses at January 1, 2010: | $ | 231 | $ | 12,901 | $ | 13,132 | |||||||||||||||||||
Charge-offs | (726 | ) | (22,437 | ) | (23,163 | ) | |||||||||||||||||||
Recoveries | 1,221 | 3,740 | 4,961 | ||||||||||||||||||||||
Provisions | (564 | ) | 18,814 | 18,250 | |||||||||||||||||||||
Allowance for credit losses at December 31, 2011 | 162 | 13,018 | 13,180 | ||||||||||||||||||||||
Charge-offs | (605 | ) | (23,185 | ) | (23,790 | ) | |||||||||||||||||||
Recoveries | 248 | 4,910 | 5,158 | ||||||||||||||||||||||
Provisions | 298 | 19,192 | 19,490 | ||||||||||||||||||||||
Allowance for credit losses at December 31, 2012 | 103 | 13,935 | 14,038 | ||||||||||||||||||||||
Charge-offs | (361 | ) | (23,876 | ) | (24,237 | ) | |||||||||||||||||||
Recoveries | 162 | 5,886 | 6,048 | ||||||||||||||||||||||
Provisions | 187 | 19,343 | 19,530 | ||||||||||||||||||||||
Allowance for credit losses at December 31, 2013 | $ | 91 | $ | 15,288 | $ | 15,379 | |||||||||||||||||||
The following table presents the allowance for credit losses and financing receivables by portfolio segment as of December 31, 2013 and 2012, classified according to impairment evaluation method: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Lease- | Time- | Total | Lease- | Time- | Total | ||||||||||||||||||||
Comm | Payment | Comm | Payment | ||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collectively evaluated for impairment | 91 | 15,288 | 15,379 | 103 | 13,935 | 14,038 | |||||||||||||||||||
Contracts acquired with deteriorated credit quality | — | — | — | — | — | — | |||||||||||||||||||
Ending balance, allowance for credit losses | $ | 91 | $ | 15,288 | $ | 15,379 | $ | 103 | $ | 13,935 | $ | 14,038 | |||||||||||||
Financing receivables:(1) | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collectively evaluated for impairment | 185 | 177,463 | 177,648 | 174 | 173,697 | 173,871 | |||||||||||||||||||
Contracts acquired with deteriorated credit quality | — | — | — | — | — | — | |||||||||||||||||||
Ending balance, financing receivables(1) | $ | 185 | $ | 177,463 | $ | 177,648 | $ | 174 | $ | 173,697 | $ | 173,871 | |||||||||||||
-1 | Total financing receivables include net investment in leases. For purposes of asset quality and allowance calculations, the allowance for credit losses is excluded. | ||||||||||||||||||||||||
The following table presents the aging status of the recorded investment in leases as of December 31, 2013, classified according to the original score granted by our internally-developed proprietary scoring model: | |||||||||||||||||||||||||
Current | 31 to 60 | 61 to 90 | Over 90 | Total | Over 90 | ||||||||||||||||||||
Days | Days | Days | Days | ||||||||||||||||||||||
Past Due | Past Due | Past Due | Accruing | ||||||||||||||||||||||
LeaseComm | $ | 93 | $ | 5 | $ | 4 | $ | 83 | $ | 185 | $ | 83 | |||||||||||||
TimePayment | |||||||||||||||||||||||||
Gold | 58,769 | 2,501 | 902 | 3,391 | 65,563 | 3,391 | |||||||||||||||||||
Silver | 81,152 | 2,933 | 2,754 | 13,437 | 100,276 | 13,437 | |||||||||||||||||||
Bronze | 7,788 | 493 | 502 | 2,841 | 11,624 | 2,841 | |||||||||||||||||||
TimePayment subtotal | 147,709 | 5,927 | 4,158 | 19,669 | 177,463 | 19,669 | |||||||||||||||||||
Total financing receivables | $ | 147,802 | $ | 5,932 | $ | 4,162 | $ | 19,752 | $ | 177,648 | $ | 19,752 | |||||||||||||
Percent of total financing receivables | 83.2 | % | 3.3 | % | 2.4 | % | 11.1 | % | 100 | % | |||||||||||||||
The following table presents the aging status of the recorded investment in leases as of December 31, 2012, classified according to the original score granted by our internally-developed proprietary scoring model: | |||||||||||||||||||||||||
Current | 31 to 60 | 61 to 90 | Over 90 | Total | Over 90 | ||||||||||||||||||||
Days | Days | Days | Days | ||||||||||||||||||||||
Past Due | Past Due | Past Due | Accruing | ||||||||||||||||||||||
LeaseComm | $ | 90 | $ | 5 | $ | 5 | $ | 74 | $ | 174 | $ | 74 | |||||||||||||
TimePayment | |||||||||||||||||||||||||
Gold | 54,446 | 2,763 | 1,042 | 2,309 | 60,560 | 2,309 | |||||||||||||||||||
Silver | 84,268 | 2,883 | 3,281 | 13,312 | 103,744 | 13,312 | |||||||||||||||||||
Bronze | 6,341 | 493 | 441 | 2,118 | 9,393 | 2,118 | |||||||||||||||||||
TimePayment subtotal | 145,055 | 6,139 | 4,764 | 17,739 | 173,697 | 17,739 | |||||||||||||||||||
Total financing receivables | $ | 145,145 | $ | 6,144 | $ | 4,769 | $ | 17,813 | $ | 173,871 | $ | 17,813 | |||||||||||||
Percent of total financing receivables | 83.5 | % | 3.5 | % | 2.7 | % | 10.3 | % | 100 | % | |||||||||||||||
Net_Income_per_Common_Share
Net Income per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Income per Common Share | ' | ||||||||||||
D. | Net Income per Common Share | ||||||||||||
Net income per common share for the twelve months ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 9,763 | $ | 9,351 | $ | 8,991 | |||||||
Weighted-average shares outstanding used in computation of net income per share - basic | 14,460,613 | 14,321,815 | 14,247,413 | ||||||||||
Dilutive effect of options, warrants and restricted stock | 313,916 | 367,716 | 278,153 | ||||||||||
Shares used in computation of net income per common share - assuming dilution | 14,774,529 | 14,689,531 | 14,525,566 | ||||||||||
Net income per common share – basic | $ | 0.68 | $ | 0.65 | $ | 0.63 | |||||||
Net income per common share – diluted | $ | 0.66 | $ | 0.64 | $ | 0.62 | |||||||
We excluded 0, 0, and 409,305 options from the computation of diluted net income per share for the twelve month periods ended December 31, 2013, 2012 and 2011, respectively, because their effect would have been antidilutive. |
Debt_Issue_Costs
Debt Issue Costs | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Debt Issue Costs | ' |
E. Debt Issue Costs | |
During the years ended December 31, 2013, 2012 and 2011, we recognized interest expense related to the amortization of debt issuance costs of $288,000, $216,000, and $282,000, respectively. In 2012, we amended our revolving line of credit and increased our borrowing capacity. In accordance with FASB ASC Topic 470, Line-of-Credit or Revolving-Debt Arrangements, we adjusted our amortization of unamortized deferred costs such that they would be amortized over the term of the arrangement. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property and Equipment | ' | ||||||||||||
F. Property and Equipment | |||||||||||||
At December 31, 2013 and 2012, our property and equipment consisted of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Computer equipment | $ | 3,719 | $ | 3,449 | |||||||||
Office equipment | 363 | 319 | |||||||||||
Leasehold improvements | 1,269 | 1,175 | |||||||||||
Total | 5,351 | 4,943 | |||||||||||
Less accumulated depreciation and amortization | (4,018 | ) | (3,409 | ) | |||||||||
Property and equipment, net | $ | 1,333 | $ | 1,534 | |||||||||
Additions to leasehold improvements during the years ended December 31, 2013 and 2012, included $39,000 and $0, respectively, in landlord incentives relating to our California office. | |||||||||||||
Depreciation and amortization expense were as follows for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Twelve months ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation and amortization expense relating to: | |||||||||||||
Property and equipment | $ | 609 | $ | 598 | $ | 510 | |||||||
Rental equipment | 4,339 | 3,671 | 2,760 | ||||||||||
Service contracts | 500 | 86 | — | ||||||||||
Total depreciation and amortization | $ | 5,448 | $ | 4,355 | $ | 3,270 | |||||||
Investment_in_Service_Contract
Investment in Service Contracts, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Investment in Service Contracts, Net | ' | ||||||||
G. | Investment in Service Contracts, net | ||||||||
At December 31, 2013 and 2012, our investment in service contracts consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Investment in service contracts | $ | 3,079 | $ | 1,495 | |||||
Less accumulated amortization | (1,021 | ) | (698 | ) | |||||
Investment in service contracts, net | $ | 2,058 | $ | 797 | |||||
Investment_in_Rental_Contracts
Investment in Rental Contracts, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Investment in Rental Contracts, Net | ' | ||||||||
H. | Investment in Rental Contracts, net | ||||||||
At December 31, 2013 and 2012, our investment in rental contracts consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Investment in rental contracts | $ | 2,985 | $ | 3,163 | |||||
Less accumulated depreciation | (1,926 | ) | (2,126 | ) | |||||
Investment in rental contracts, net | $ | 1,059 | $ | 1,037 | |||||
Revolving_Line_of_Credit
Revolving Line of Credit | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Revolving Line of Credit | ' | ||||||||||||||||||||
I. Revolving Line of Credit | |||||||||||||||||||||
Our revolving line of credit balance was $72,566,000 and $70,380,000 at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
We entered into the revolving line of credit in August 2007 with a bank syndicate led by Santander based on qualified TimePayment lease receivables. The total commitment under the facility, originally $30 million, has been increased at various times, most recently from $100 million to $150 million in December 2012. The December 2012 amendment also permits further increases in the total commitment under an accordion feature, to $175 million, with the agreement of the Agent and, as applicable, a new or existing Lender, under certain conditions. Outstanding borrowings are collateralized by eligible lease contracts and a security interest in all of our other assets. | |||||||||||||||||||||
At December 31, 2013, we had available borrowing capacity of approximately $77.4 million. Our available borrowing capacity was subject to limitations based on lease eligibility and a borrowing base formula. | |||||||||||||||||||||
The revolving line of credit has financial covenants that we must comply with to obtain funding and avoid an event of default. As of December 31, 2013, we were in compliance with all covenants under the revolving line of credit. | |||||||||||||||||||||
The maturity date of our revolving line of credit is December 2016, at which time the outstanding loan balance plus interest becomes due and payable. At our option upon maturity, the unpaid principal balance may be converted to a six-month term loan. | |||||||||||||||||||||
The following table demonstrates the total commitment under the revolving credit facility with the associated rate options in effect during the three years ended December 31, 2013. As of December 31, 2013, the total commitment under the facility was $150 million. | |||||||||||||||||||||
Amendment Date | Total | Rate options(1) | Minimum | Facility | |||||||||||||||||
Commitment | Rate | Expiration | |||||||||||||||||||
under Credit | |||||||||||||||||||||
Facility | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Jul-10 | $ | 100 | Prime plus 1.25% | or | LIBOR plus 3.25% | None | August 2013 | ||||||||||||||
Oct-11 | 100 | Prime plus 0.75% | or | LIBOR plus 2.75% | None | Aug-14 | |||||||||||||||
Dec-12 | 150 | Base(2) plus 0.75% | or | LIBOR plus 2.50% | None | December 2016 | |||||||||||||||
-1 | Under the terms of the facility, loans are Based Rate Loans (or prior to December 2012, Prime Rate Loans), unless we elect LIBOR Loans. If a LIBOR Loan is not renewed at maturity it automatically converts to a Base Rate Loan. | ||||||||||||||||||||
-2 | The “base rate” is the highest of the prime rate established by the Agent, or one-month LIBOR plus 1%, or the federal funds effective rate plus 0.5%. | ||||||||||||||||||||
At December 31, 2013, $65.0 million of our loans were LIBOR loans and $7.6 million of our loans were Base Rate Loans. The interest rate on our loans at December 31, 2013, was between 2.74% and 4.00%. At the same date, the qualified lease receivables eligible under the borrowing base computation were approximately $129.9 million. |
Dividends
Dividends | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Text Block [Abstract] | ' | ||||||
Dividends | ' | ||||||
J. Dividends | |||||||
Dividends declared and paid or payable were as follows: | |||||||
2013 | |||||||
Date Declared | Record Date | Payment Date | Dividend per | ||||
Share | |||||||
29-Jan-13 | 8-Feb-13 | 15-Feb-13 | $0.06 | ||||
23-Apr-13 | 3-May-13 | 15-May-13 | 0.06 | ||||
17-Jul-13 | 30-Jul-13 | 15-Aug-13 | 0.06 | ||||
24-Oct-13 | 4-Nov-12 | 15-Nov-13 | 0.07 | ||||
Total | $0.25 | ||||||
2012 | |||||||
Date Declared | Record Date | Payment Date | Dividend per | ||||
Share | |||||||
31-Jan-12 | 10-Feb-12 | 15-Feb-12 | $0.06 | ||||
19-Apr-12 | 30-Apr-12 | 15-May-12 | 0.06 | ||||
19-Jul-12 | 30-Jul-12 | 15-Aug-12 | 0.06 | ||||
18-Oct-12 | 31-Oct-12 | 15-Nov-12 | 0.06 | ||||
Total | $0.24 | ||||||
2011 | |||||||
Date Declared | Record Date | Payment Date | Dividend per Share | ||||
21-Jan-11 | 1-Feb-11 | 15-Feb-11 | $0.05 | ||||
21-Apr-11 | 2-May-11 | 13-May-11 | 0.05 | ||||
21-Jul-11 | 1-Aug-11 | 15-Aug-11 | 0.05 | ||||
25-Oct-11 | 4-Nov-11 | 15-Nov-11 | 0.06 | ||||
Total | $0.21 | ||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||||||||
K. Stockholders’ Equity | |||||||||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||||||||
In 2003 we issued warrants to purchase common stock to our lenders in connection with a waiver of certain covenant defaults and the extension of our loan. There were no warrants exercised during 2013 or 2011. During 2012 there was a cashless exercise of 7,068 warrants which resulted in 6,367 shares being issued. As of December 31, 2013 and 2012, there were 86,221 warrants outstanding with an exercise price of $0.815. All warrants expire on September 30, 2014. The warrant holders have certain rights and privileges that provide them with anti-dilution protection in the event that the Company issues stock at a price below the then current market price of the company’s common stock. | |||||||||||||||||||||||||||||||
Stock Options and Restricted Stock | |||||||||||||||||||||||||||||||
Description | |||||||||||||||||||||||||||||||
Under the MicroFinancial 2008 Equity Incentive Plan (the “2008 Plan”), we reserved 1,000,000 shares of common stock for issuance, all of which had been issued as of December 31, 2013. In May 2012, our stockholders approved our 2012 Equity Inventive Plan (the “2012 Plan”), for which we have 750,000 shares of common stock reserved, of which 613,183 shares are unissued as of December 31, 2013. These plans permit the Compensation and Benefits Committee of our Board of Directors to grant stock options, restricted stock, restricted stock units, shares of common stock without restrictions, and any other right to receive payment from the corporation based in whole or in part on the value of common stock. All employees and directors of the Corporation or any of its affiliates are eligible to receive awards under either plan. For purposes of calculating the shares remaining for grant under the 2012 Plan, grants of stock options or stock appreciation rights to any participant will reduce that reserve by one share for each share subject to the option or the settled portion of the stock appreciation right. Grants of restricted stock, restricted stock units and any other “full share” award will reduce the reserve by three shares for each share of common stock subject to the award, in the case of awards to employees, or by one share for each share of common stock subject to the award, in the case of awards to non-employee directors. | |||||||||||||||||||||||||||||||
Stock options under the plans may be incentive stock options or non-statutory stock options. The committee determines the terms of the option, including the amount, exercise price, vesting schedule and term, which may not exceed ten years. The per share exercise price of the option may not be less than 100% of the fair market value of the common stock on the grant date. No stock options granted to an employee under the plans shall become fully vested within one year of grant date and no restricted stock or other awards made to an employee without any performance-based criteria other than the employee’s continued service will have a restricted vesting period of less than one year. We may not in any fiscal year grant to any participant options or other awards covering more than 200,000 shares. | |||||||||||||||||||||||||||||||
Non-employee director stock grants | |||||||||||||||||||||||||||||||
The following details the stock granted to our non-employee directors under the 2008 and 2012 Plans during the years ended December 31, 2013, 2012 and 2011. These shares were issued as part of our annual director compensation arrangements related to the prior years’ service, and were fully vested on the date of issuance. | |||||||||||||||||||||||||||||||
Date of Grant | Number of | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Shares | per Share | of Grant | |||||||||||||||||||||||||||||
Feb-11 | 51,642 | $ | 4.11 | $ | 212 | ||||||||||||||||||||||||||
Jul-11 | 25,632 | 5.54 | 142 | ||||||||||||||||||||||||||||
Total 2011 Grants: | 77,274 | $ | 354 | ||||||||||||||||||||||||||||
Feb-12 | 31,820 | 6.6 | $ | 210 | |||||||||||||||||||||||||||
Jul-12 | 16,328 | 8.36 | 136 | ||||||||||||||||||||||||||||
Total 2012 Grants: | 48,148 | $ | 346 | ||||||||||||||||||||||||||||
Jan-13 | 29,205 | 7.55 | 221 | ||||||||||||||||||||||||||||
Jul-13 | 16,587 | 8.44 | 140 | ||||||||||||||||||||||||||||
Total 2013 Grants: | 45,792 | $ | 361 | ||||||||||||||||||||||||||||
Restricted Stock Unit Grants | |||||||||||||||||||||||||||||||
The following table summarizes our RSU activity for the three years ended December 31, 2013: | |||||||||||||||||||||||||||||||
Number | Grant | Grant | Fair | ||||||||||||||||||||||||||||
of RSUs | Date Fair | Date Fair | Value of | ||||||||||||||||||||||||||||
Value per | Value | RSUs at | |||||||||||||||||||||||||||||
Share | Vesting | ||||||||||||||||||||||||||||||
Date(a) | |||||||||||||||||||||||||||||||
Unvested RSUs at December 31, 2010 | 33,518 | $ | 3.15 | $ | 106 | ||||||||||||||||||||||||||
Granted | 33,044 | $ | 4.11 | 136 | |||||||||||||||||||||||||||
Unvested RSUs at December 31, 2011 | 66,562 | ||||||||||||||||||||||||||||||
Granted | 40,393 | $ | 6.6 | 266 | |||||||||||||||||||||||||||
Vested | (8,380 | ) | $ | 57 | |||||||||||||||||||||||||||
Unvested RSUs at December 31, 2012 | 98,575 | ||||||||||||||||||||||||||||||
Granted | 45,316 | $ | 7.55 | 342 | |||||||||||||||||||||||||||
Vested | (16,640 | ) | 125 | ||||||||||||||||||||||||||||
Unvested RSUs at December 31, 2013 | 127,251 | $ | 850 | $ | 182 | ||||||||||||||||||||||||||
(a) | The fair value of vested RSUs is calculated based on the closing stock price on the day of vesting. The fair value of unvested RSUs at December 31, 2013, based on the stock closing price on that date, was $1.1 million, and the weighted average vesting period of these RSUs is 2.32 years. | ||||||||||||||||||||||||||||||
In January 2013, the Compensation and Benefits Committee of our Board of Directors granted 45,316 RSUs to our executive officers. The RSUs were valued on the date of grant and the fair value of these awards was $7.55 per share. The issuance consists of three separate tranches. The first tranche is for 28,643 RSUs which vest over five years at 25% annually beginning on the second anniversary of the grant date. The second tranche is for 15,548 RSUs which cliff vest after three years only if management achieves specific performance measures. The third tranche is for 1,125 RSUs which vest over five years at 25% annually, beginning on the second anniversary of the grant date, and represent payment related to 2012 incentive bonus compensation. | |||||||||||||||||||||||||||||||
The RSUs granted in 2012 consist of two tranches. The first tranche is for 25,165 RSUs which vest over five years at 25% annually beginning on the second anniversary of the grant date. The second tranche is for 15,228 RSUs which cliff vest after three years only if management achieves specific performance measures. | |||||||||||||||||||||||||||||||
The RSUs granted in 2011 and 2010 vest over five years beginning on the second anniversary of the grant date. | |||||||||||||||||||||||||||||||
Stock Option Grants | |||||||||||||||||||||||||||||||
The following summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||
Shares(b) | Exercise | Weighted | |||||||||||||||||||||||||||||
Price Per Share | Average | ||||||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||||||
Outstanding at December 31, 2010 | 908,028 | $ | 1.59 to $13.10 | $ | 5.07 | ||||||||||||||||||||||||||
Expired | (90,000 | ) | $ | 13.1 | $ | 13.1 | |||||||||||||||||||||||||
Outstanding at December 31, 2011 | 818,028 | $ | 1.59 to $6.70 | $ | 4.19 | ||||||||||||||||||||||||||
Exercised(a) | (150,000 | ) | $ | 1.59 | $ | 1.59 | |||||||||||||||||||||||||
Expired | (235,000 | ) | $ | 6.7 | $ | 6.7 | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 433,028 | $ | 2.30 to $5.85 | $ | 3.72 | ||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 433,028 | $ | 2.30 to $5.85 | $ | 3.72 | ||||||||||||||||||||||||||
(a) | The intrinsic value of the options exercised in 2012 was $755,000. There were no options exercised in 2011 or 2013. | ||||||||||||||||||||||||||||||
(b) | The outstanding options vest over five years based solely on service and are exercisable only after they become vested. All unvested outstanding options are expected to vest. At December 31, 2013, 2012 and 2011, 368,347, 268,072 and 520,872, respectively, of the outstanding options were fully vested. | ||||||||||||||||||||||||||||||
Information relating to our outstanding stock options at December 31, 2013, is as follows: | |||||||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||||||
Weighted- | Shares | Weighted- | Intrinsic | Weighted- | Shares | Weighted- | Intrinsic | ||||||||||||||||||||||||
Average | Value | Average | Average | Value | |||||||||||||||||||||||||||
Average | Life | Exercise | Life | ||||||||||||||||||||||||||||
(Years) | Price | (Years) | |||||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||||||
$5.77 | 31,923 | 3.17 | $ | 89 | $ | 5.77 | 31,923 | 3.17 | $89 | ||||||||||||||||||||||
5.85 | 142,382 | 4.08 | 384 | 5.85 | 142,382 | 4.08 | 384 | ||||||||||||||||||||||||
2.3 | 258,723 | 5.17 | 1,617 | 2.3 | 194,042 | 5.17 | 1,213 | ||||||||||||||||||||||||
433,028 | 4.66 | $ | 2,090 | $ | 3.97 | 368,347 | 4.58 | $ | 1,686 | ||||||||||||||||||||||
Stock compensation expense recognized during the years ended December 31, 2013, 2012 and 2011, and unrecognized compensation as of December 31, 2013, are as follows: | |||||||||||||||||||||||||||||||
Unrecognized | |||||||||||||||||||||||||||||||
Compensation | |||||||||||||||||||||||||||||||
Year ended December 31, | Cost as of | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | December 31, 2013 | ||||||||||||||||||||||||||||
Compensation expense – RSUs | $ | 199 | $ | 109 | $ | 46 | $ | 476 | |||||||||||||||||||||||
Compensation expense – Options | 33 | 82 | 92 | 2 | |||||||||||||||||||||||||||
Total | $ | 232 | $ | 191 | $ | 138 | $ | 478 | |||||||||||||||||||||||
The weighted average term over which this compensation expense is expected to be recognized is 2.9 years. | |||||||||||||||||||||||||||||||
Common Stock Reserved | |||||||||||||||||||||||||||||||
We have reserved shares of common stock at December 31, 2013, as follows: | |||||||||||||||||||||||||||||||
Warrants | 86,221 | ||||||||||||||||||||||||||||||
Stock options | 433,028 | ||||||||||||||||||||||||||||||
Restricted stock units | 127,251 | ||||||||||||||||||||||||||||||
Reserved for future grants under 2012 Equity Incentive Plans | 613,183 | ||||||||||||||||||||||||||||||
Total | 1,259,683 | ||||||||||||||||||||||||||||||
Repurchases | |||||||||||||||||||||||||||||||
On August 10, 2010, our Board of Directors approved a common stock repurchase program under which we are authorized to purchase up to 250,000 of our outstanding shares from time to time. The repurchases may take place in either the open market or through block trades. The repurchase program will be funded by our working capital and may be suspended or discontinued at any time. | |||||||||||||||||||||||||||||||
During the year ended December 31, 2013, we repurchased and retired 97,153 shares of our common stock under the program, at an average price paid per share of $7.28, for a total cost of $708,000. During the year ended December 31, 2012, we did not repurchase any shares of our common stock under our repurchase program. During the year ended December 31, 2011, we repurchased and retired 51,883 shares of our common stock under the program, at an average price paid per share of $4.61, for a total cost of $239,000. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
L. Income Taxes | |||||||||||||
The provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 8,216 | $ | 5,545 | $ | 789 | |||||||
State | 2,065 | 1,544 | 1,133 | ||||||||||
10,281 | 7,089 | 1,922 | |||||||||||
Deferred: | |||||||||||||
Federal | (3,129 | ) | (821 | ) | 3,994 | ||||||||
State | (592 | ) | (253 | ) | (288 | ) | |||||||
(3,721 | ) | (1,074 | ) | 3,706 | |||||||||
Total | $ | 6,560 | $ | 6,015 | $ | 5,628 | |||||||
At December 31, 2013, and 2012, the components of the net deferred tax liability were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for credit losses | $ | 6,152 | $ | 5,615 | |||||||||
Depreciation and amortization | 32,709 | 29,717 | |||||||||||
State NOL and other state attributes | 62 | 251 | |||||||||||
State valuation allowance | (205 | ) | (355 | ) | |||||||||
Total deferred tax assets | 38,718 | 35,228 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Lease receivable and unearned income | (35,758 | ) | (35,539 | ) | |||||||||
Residual value | (9,228 | ) | (9,670 | ) | |||||||||
Initial direct costs | (410 | ) | (418 | ) | |||||||||
Total deferred tax liabilities | (45,396 | ) | (45,627 | ) | |||||||||
Net deferred tax liability | $ | (6,678 | ) | $ | (10,399 | ) | |||||||
At December 31, 2013 and 2012, we had no federal net operating loss carry-forwards to be used to offset future income. At December 31, 2013, we had state net operating loss carry-forwards of $2.1 million which may be used to offset future income. The state NOL’s have restrictions and expire in approximately one to twenty years. We recorded a valuation allowance against some of our state net operating losses as it is unlikely that these deferred tax assets will be fully realized. | |||||||||||||
The following is reconciliation between the effective income tax rate and the applicable statutory federal income tax rate: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 5.19 | 4.8 | 3.03 | ||||||||||
State valuation allowance | (0.60 | ) | (0.06 | ) | (0.07 | ) | |||||||
Nondeductible expenses and other | 0.6 | (0.61 | ) | 0.54 | |||||||||
Effective income tax rate | 40.19 | % | 39.13 | % | 38.5 | % | |||||||
The calculation of our tax liabilities involves dealing with estimates in the application of complex tax regulations in a multitude of jurisdictions. We record liabilities for estimated tax obligations for federal and state purposes. For the years ended December 31, 2013, 2012 and 2011, the nondeductible expenses and other tax rate of 0.60%, (0.61) % and 0.54% respectively, includes certain non-deductible stock-based compensation. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
As of December 31, 2013, we had no liabilities for accrued interest and penalties related to state income tax matters. As of December 31, 2012, we had liabilities of $52,000 and $11,000 for accrued interest and penalties, respectively, related to various state income tax matters. Of these amounts, approximately $30,000 would impact our effective tax rate after a $22,000 federal tax benefit for state income taxes. As of December 31, 2011, we had liabilities of $17,000 and $4,000 for accrued interest and penalties, respectively, related to various state income tax matters. Of these amounts, approximately $10,000 would impact our effective tax rate after a $4,000 federal tax benefit for state income taxes. These amounts are included in income taxes payable on our balance sheet. It is reasonably possible that the total amount of unrecognized tax benefits may change significantly within the next 12 months; however at this time we are unable to estimate the change. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Balance at January 1, 2011 | $ | 21 | |||||||||||
Additions for tax positions related to current year | 21 | ||||||||||||
Reductions for tax positions as a result of lapse of statute of limitations | (21 | ) | |||||||||||
Balance at December 31, 2011 | 21 | ||||||||||||
Additions for tax positions related to current year | 63 | ||||||||||||
Reductions for tax positions as a result of lapse of statute of limitations | (21 | ) | |||||||||||
Balance at December 31, 2012 | 63 | ||||||||||||
Additions for tax positions related to current year | 26 | ||||||||||||
Reductions for tax positions as a result of closed examinations | (89 | ) | |||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||
Our federal income tax returns are subject to examination for tax years ended on or after December 31, 2010, and our state income tax returns are subject to examination for tax years ended on or after December 31, 2009. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
M. Commitments and Contingencies | |||||
Operating Leases | |||||
On September 20, 2010, we entered into an office lease agreement for approximately 23,834 square feet of office space located in Burlington, Massachusetts. We moved our corporate headquarters to the premises in January 2011. The lease for our facility in Burlington expires in 2017. | |||||
On March 25, 2011, we entered into an office lease agreement through 2014 for approximately 2,667 square feet of office space located in California. On November 7, 2012, we amended this lease to add additional space totaling 2,319 square feet to the existing premises, and extend the term of the lease. The amended lease for the entire space is for a 64-month term, commencing in February 2013. | |||||
In connection with these two lease agreements, we received landlord incentives for build out expenses incurred. The incentive or allowance is recorded as deferred rent and amortized as a reduction to rent expense over the initial lease terms. | |||||
At December 31, 2013, future minimum lease payments under non-cancelable operating leases are: | |||||
For the years ended December 31, | |||||
2014 | $ | 712 | |||
2015 | 728 | ||||
2016 | 744 | ||||
2017 | 760 | ||||
2018 | 421 | ||||
Total | $ | 3,365 | |||
Rental expense under operating leases for our office facilities totaled $663,000, $617,000 and $610,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Legal Matters | |||||
We are involved from time to time in litigation incidental to the conduct of our business. Although we do not expect that the outcome of any of these matters, individually or collectively, will have a material adverse effect on our financial condition or results of operations, litigation is inherently unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect our operating results or cash flows in a particular period. We routinely assess all of our litigation and threatened litigation as to the probability of ultimately incurring a liability, and record our best estimate of the ultimate loss in situations where we assess the likelihood of loss as probable. | |||||
Lease Commitments | |||||
We accept lease applications on a daily basis and, as a result, we have a pipeline of applications that have been approved, where a lease has not been originated. Our commitment to lend does not become binding until all of the steps in the origination process have been completed, including the receipt of the lease, supporting documentation and verification with the lessee. Since we fund on the same day a lease is verified, we have no outstanding commitments to lend. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
N. Employee Benefit Plan | |
We have a defined contribution plan under Section 401(k) of the Internal Revenue Code to provide retirement and profit sharing benefits covering substantially all full-time employees. Employees are eligible to contribute up to 100% of their gross salary until they reach the maximum annual contribution amount allowed under the Internal Revenue Code. We match $0.50 for every $1.00 contributed by an employee up to 6% of the employee’s salary; the maximum match is 3%. Vesting of our contributions is over a five-year period at 20% per year. Our defined contribution plan expenses were $122,000, $125,000 and $106,000 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Risks And Uncertainties [Abstract] | ' | ||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||
O. Concentration of Credit Risk | |||||||||||||||||
During the year ended December 31, 2013, 2012 and 2011, our top dealer accounted for 13.8%, 4.4% and 3.3%, respectively, of the value of leases originated. The top dealer during this three-year period was a lease broker who represents a number of equipment vendors financing a wide breadth of different equipment segments and operates on a nationwide scope. | |||||||||||||||||
TimePayment finances a wide variety of products, with water filtration systems representing approximately 25% of the amount financed in its portfolio as of December 31, 2013. No other single product represents more than 10% of the amount financed in its portfolio as of December 31, 2013. | |||||||||||||||||
We originate and continue to service contracts in all 50 states, the District of Columbia and Puerto Rico. The concentration of leases in certain states as of the end of each of the past three years, as a percentage of our total portfolio, is reflected below. No other state accounted for more than five percent of such total. | |||||||||||||||||
Year Ended | Florida | California | Texas | New York | |||||||||||||
December 31, | |||||||||||||||||
2011 | 13 | % | 11 | % | 8 | % | 9 | % | |||||||||
2012 | 13 | % | 12 | % | 8 | % | 8 | % | |||||||||
2013 | 13 | % | 12 | % | 9 | % | 8 | % |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
P. Subsequent Events | |
On January 14, 2014, we declared a dividend of $0.07 per share payable on February 14, 2014, to shareholders of record of MicroFinancial Incorporated stock on January 30, 2014. | |
Since December 31, 2013, we have repurchased a total of 66,552 shares of our common stock under the common stock repurchase program approved in 2010, at an average price per share of $8.07. The total cost of the shares purchased was approximately $537,000. The total number of shares repurchased under this program is 250,000, which represents the total shares authorized to be repurchased. | |
We have evaluated all events or transactions that occurred through the date on which we issued these financial statements. During this period, we did not have any material subsequent events that impacted our consolidated financial statements other than the declaration of dividends. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
The consolidated financial statements include the accounts of MicroFinancial and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | ||||
Segment Reporting | ' | |||
Segment Reporting | ||||
We operate in one industry segment that leases and rents microticket equipment and provides other financing services. All of our operations are located in the United States. Accordingly, we believe we have a single reportable segment for disclosure purposes. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Significant areas requiring the use of management estimates are revenue recognition, the allowance for credit losses, share-based payments and income taxes. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
We consider all highly liquid instruments purchased with original maturities of less than three months to be cash equivalents. Cash equivalents consist principally of overnight investments, collateralized repurchase agreements, commercial paper, certificates of deposit and US government and agency securities. As of December 31, 2013 and 2012, our cash equivalents consisted of overnight investments. Cash equivalents are stated at cost, which approximates fair value. | ||||
Restricted Cash | ' | |||
Restricted Cash | ||||
Our line of credit requires that all TimePayment cash receipts be deposited into a cash collateral account held by Santander Bank (formerly known as Sovereign Bank) (“Santander”). These funds are applied directly to amounts outstanding under the line of credit as they clear. Those funds which are pending clearance and application against the line of credit are deemed to be restricted. | ||||
Leases and Revenue Recognition | ' | |||
Revenue Recognition | ||||
Our lease contracts are accounted for as financing leases. At origination, we record the gross lease receivable, the estimated residual value of the leased equipment, initial direct costs incurred and the unearned lease income. Unearned lease income is the amount by which the gross lease receivable plus the estimated residual value exceeds the cost of the equipment. Unearned lease income and initial direct costs incurred are amortized over the related lease term using the interest method. Amortization of unearned lease income and initial direct costs is suspended and the contract written off, if, in our opinion, full payment of the contractual amount due under the lease agreement is doubtful. In conjunction with the origination of leases, we may retain a residual interest in the underlying equipment upon termination of the lease. The value of such interest is estimated at inception of the lease and evaluated periodically for impairment. At the end of the lease term, the lessee has the option to buy the equipment at the fair market value (“buyouts”), return the equipment or continue to rent the equipment on a month-to-month basis. If the lessee continues to rent the equipment, we record our investment in the rental contract at its estimated residual value. Rental income from monthly billings is recognized as the customer continues to rent the equipment. We also acquire service contracts under which a homeowner purchases a security system and simultaneously signs a contract with the dealer for the monitoring of that system for a monthly fee. We purchase the right to the payment stream under the monitoring contract from the dealer. Income on service contracts from monthly billings is recognized as the related services are provided. Other revenues, such as loss and damage waiver fees and service fees relating to the leases and contracts, are recognized as they are earned. | ||||
Allowance for Credit Losses and Credit Quality | ' | |||
Allowance for Credit Losses and Credit Quality | ||||
We maintain an allowance for credit losses on our investment in leases, service contracts and rental contracts at an amount that we believe is sufficient to provide adequate protection against losses in our portfolio. Given the nature of the microticket market and the individual size of each contract, we do not have a formal credit review committee to review individual contracts. Rather, we have developed a sophisticated, multi-tiered pricing model and have automated the credit scoring, approval and collection processes. We believe that with the proper pricing model, we can grant credit to a wide range of applicants provided we have priced appropriately for the associated risk. As a result of approving a wide range of credits, we experience a relatively high level of delinquency and write-offs in our portfolio. We periodically review the credit scoring and approval process to ensure that the automated system is making appropriate credit decisions. Given the nature of the microticket market and the individual size of each contract, we do not evaluate contracts individually for the purpose of developing and determining the adequacy of the allowance for credit losses. Contracts in our portfolio are not re-graded subsequent to the initial extension of credit and the allowance is not allocated to specific contracts. Rather, we view the contracts as having common characteristics and maintain a general allowance against our entire portfolio utilizing historical collection statistics and an assessment of current credit risk in the portfolio as the basis for the amount. | ||||
Each period, the provision for credit losses in the consolidated statements of income results from the combination of an estimate by management of credit losses that occurred during the current period and the ongoing adjustment of prior estimates of losses occurring in prior periods. To serve as a basis for making this provision, we have adopted a consistent, systematic procedure for establishing and maintaining an appropriate allowance for credit losses for our contracts. We estimate the likelihood of credit losses net of recoveries in the portfolio at each reporting period based upon a combination of an internally-developed proprietary scoring model that considers several factors including the lessee’s bureau-reported credit score at contract inception and the current delinquency status of the account. In addition to these elements, we also consider other relevant factors including general economic trends, actual historical losses, trends in delinquencies and credit losses, static pool analysis of our portfolio, trends in recoveries made on charged off accounts, and other relevant factors which might affect the performance of our portfolio. This combination of historical experience, credit scores, delinquency levels, trends in credit losses, and the review of current factors provides the basis for our analysis of the adequacy of the allowance for credit losses. In general, a receivable is deemed uncollectable when it is 360 days past due or earlier if other adverse events occur with respect to an account. None of our receivables are placed on non-accrual status as contracts are charged off when deemed uncollectible. Historically, the typical monthly payment under our microticket contracts has been small and as a result, our experience is that lessees will pay past due amounts later in the process because of the relatively small amount necessary to bring a contract current. | ||||
We segregate our contract portfolio between TimePayment and LeaseComm to perform the calculation and analysis of the allowance for credit losses. Each subsidiary consists of a single portfolio segment – microticket equipment. Leases of microticket equipment and other contracts are made to businesses and individuals and are generally secured by assets of the business or a personal guarantee. Repayment is expected from the cash flows of the business or individual. A weakened economy, and resultant decreased consumer spending, may have a negative effect on the credit quality in this segment. | ||||
We assign internal risk ratings for all lessees and determine the creditworthiness of each contract based upon this internally-developed proprietary scoring model. The LeaseComm portfolio is evaluated in total, with a reserve calculated based upon the aging of the portfolio and our collection experience. The TimePayment scoring model generates one of ten acceptable risk ratings based upon the creditworthiness of each application or it rejects the application. The scores are assigned at contract inception, and these scores are maintained over the contract term regardless of payment performance. To facilitate review and reporting, management aggregates these ten scores into one of three categories with similar risk profiles and delinquency characteristics identified as Gold, Silver or Bronze. | ||||
• | Contracts assigned a Gold rating represent those transactions which exhibit the best risk rating based on our internal credit scores. They are considered of sufficient quality to preclude an otherwise adverse rating. Gold rated contracts are typically represented by lessees with high bureau-reported credit scores for personal guarantors at contract inception or are supported by established businesses for those transactions which are not personally guaranteed by the lessee. | |||
• | Contracts assigned a Silver rating fall in the middle range of the ten acceptable scores generated by the scoring model. These transactions possess a reasonable amount of risk based on their profile and may exhibit vulnerability to deterioration if adverse factors are encountered. These contracts typically demonstrate adequate coverage but warrant a higher level of monitoring by management to ensure that weaknesses do not advance. | |||
• | A Bronze rating applies to contracts at the lower end of the ten acceptable scores generated by the scoring model whereby the lessee may have difficulty meeting the contract obligation if adverse factors are encountered. Bronze rated contracts typically have lower reported credit scores at contract inception and will typically have other less desirable credit attributes. | |||
See Note C for details of our allowance for credit losses and the aged analysis of past due financing receivables based upon our internally-developed proprietary scoring model. | ||||
Investment in Service Contracts | ' | |||
Investment in Service Contracts | ||||
Our investments in service contracts are recorded at cost and amortized over the term of the contract. Upon retirement or other disposition, the cost and related accumulated amortization are removed from the accounts and any resulting gain or loss is reflected in income. We periodically evaluate whether events or circumstances have occurred that may affect the estimated useful life or recoverability of our investment in service contracts. Prior to 2012, our service contract revenue was derived from our LeaseComm portfolio, for which we have not purchased any new security service contracts since 2002. Beginning in the second quarter of 2012, TimePayment began acquiring service contracts. | ||||
Investment in Rental Contracts | ' | |||
Investment in Rental Contracts | ||||
Our investment in rental contracts is either recorded at estimated residual value for converted leases and depreciated using the straight-line method over a period of twelve months or recorded at the acquisition cost and depreciated using the straight line method over an estimated life of three years. Rental equipment consists of a wide variety of low-priced commercial equipment with similar characteristics. Upon retirement or other disposition, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. Dispositions include equipment buyouts, returns and write-offs. We periodically evaluate whether events or circumstances have occurred that may affect the estimated useful life or recoverability of the investment in rental contracts. | ||||
Property and Equipment | ' | |||
Property and Equipment | ||||
Office and computer equipment are recorded at cost and depreciated using the straight-line method over estimated lives of approximately three to five years. Leasehold improvements are amortized over the shorter of the life of the lease or the estimated life of the improvement. Upon retirement or other disposition, the cost and related accumulated depreciation of the assets are removed from the accounts and any resulting gain or loss is reflected in income. | ||||
Fair Value of Financial Instruments | ' | |||
Fair Value of Financial Instruments | ||||
Accounting for fair value measurements involves a single definition of fair value, along with a conceptual framework to measure fair value, with fair value defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The fair value measurement hierarchy consists of three levels: | ||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||
Level 3 - Unobservable inputs developed using estimates and assumptions which are developed by the reporting entity and reflect those assumptions that a market participant would use. | ||||
We apply valuation techniques that (1) place greater reliance on observable inputs and less reliance on unobservable inputs and (2) are consistent with the market approach, the income approach and/or the cost approach. | ||||
The carrying values of cash and cash equivalents, restricted cash, other assets, accounts payable and other liabilities approximate their fair values due to the short maturity of these instruments. The fair value of the amounts outstanding under our revolving line of credit, evaluated using Level 2 inputs as of December 31, 2013 and 2012, approximated the carrying value. | ||||
Debt Issue Costs | ' | |||
Debt Issue Costs | ||||
Costs incurred in securing financing are capitalized in other assets and amortized over the term of the financing, which is considered the interval from the current date until the expiration of the credit facility. When we modify our revolving line of credit, we evaluate the arrangement in accordance with Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 470, Line-of-Credit or Revolving-Debt Arrangements. In accordance with this guidance, if the borrowing capacity of the new arrangement is greater than or equal to the borrowing capacity of the old arrangement, then any unamortized deferred costs, any fees paid to the creditor, and any third-party costs incurred shall be associated with the new arrangement (that is, deferred and amortized over the term of the new arrangement). | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes. FASB ASC Topic 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. | ||||
FASB ASC Topic 740 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement and classification of amounts relating to uncertain tax positions, accounting for and disclosure of interest and penalties, accounting in interim periods, disclosures and transition relating to the adoption of the new accounting standard. | ||||
Net Income per Common Share | ' | |||
Net Income per Common Share | ||||
Basic net income per common share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per common share gives effect to all potentially dilutive common shares outstanding during the period. The computation of diluted net income per share does not assume the issuance of common shares that have an antidilutive effect on net income per common share. | ||||
Stock-Based Employee Compensation | ' | |||
Stock-Based Employee Compensation | ||||
We have adopted the fair value recognition provisions of FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires us to recognize the compensation cost related to share-based payment transactions with employees in the financial statements. The compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense as it is earned over the requisite service period, which is the vesting period. Share-based compensation transactions with employees covered by FASB ASC Topic 718 include share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. | ||||
We estimate the fair value of stock options using a Black-Scholes valuation model and a 0% expected forfeiture rate, consistent with the provisions of FASB ASC Topic 718 and Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 107 Share Based Payments. Key input assumptions used to estimate the fair value of stock options include the expected option term, volatility of the stock, the risk-free interest rate and the dividend yield. | ||||
The expected life represents the average period of time that the options are expected to be outstanding given consideration to vesting schedules; annualized volatility is based on historical volatilities of our common stock; dividend yield represents the current dividend yield expressed as a constant percentage of our stock price and the risk-free interest rate is based on the U.S. Treasury yield curve in effect on the measurement date for periods corresponding to the expected life of the option. | ||||
Restricted stock units (“RSUs”) are valued at the stock price at date of grant, and expensed ratably over the performance period or vesting period, as appropriate. The number of performance-based RSUs for which stock compensation expense is calculated is based upon management’s assessment of the likelihood of achieving the performance targets. | ||||
Non-employee stock-based compensation is accounted for in accordance with FASB ASC Topic 505, Equity-based payments to non-employees. In accordance with this topic, cost recognized for non-employee share-based payment transactions is determined by the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. | ||||
Lease Obligation and Deferred Rent | ' | |||
Lease Obligation and Deferred Rent | ||||
We lease our facilities, located in Massachusetts and California, under multi-year operating lease agreements. We account for these leases in accordance with FASB ASC Topic 840, Leases. In connection with these two lease agreements, we received landlord incentives for build out expenses incurred. The incentive or allowance is recorded as deferred rent and amortized as a reduction to lease expense over the initial lease terms. Rent expense is recorded on a straight-line basis. | ||||
Concentration of Credit Risk | ' | |||
Concentration of Credit Risk | ||||
Our financial instruments that are exposed to concentration of credit risk consist primarily of lease and rental receivables and cash and cash equivalent balances. To reduce our risk, credit policies are in place for approving leases and the lease pools are monitored by us. In addition, cash and cash equivalents are maintained at high-quality financial institutions. | ||||
Financial instruments that subject us to concentrations of credit risk principally consist of cash equivalents and deposits in bank accounts. We deposit our cash and invest in short-term investments primarily through national commercial banks. Deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) are exposed to loss in the event of nonperformance by the institution. The Company has had cash deposits in excess of the FDIC insurance coverage. However, we have not experienced any losses in such accounts. |
Net_Investment_in_Leases_Table
Net Investment in Leases (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Future Minimum Payments Due on Lease Receivables | ' | ||||||||||||||||||||||||
At December 31, 2013, future minimum payments due on our lease receivables are as follows: | |||||||||||||||||||||||||
Year Ending December 31, | |||||||||||||||||||||||||
2014 | $ | 105,117 | |||||||||||||||||||||||
2015 | 61,058 | ||||||||||||||||||||||||
2016 | 32,293 | ||||||||||||||||||||||||
2017 | 12,958 | ||||||||||||||||||||||||
2018 | 3,202 | ||||||||||||||||||||||||
Total | $ | 214,628 | |||||||||||||||||||||||
Summary of the Changes in Estimated Residual Value | ' | ||||||||||||||||||||||||
A summary of the changes in estimated residual value is as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Estimated residual value, beginning | $ | 24,176 | $ | 23,287 | $ | 21,832 | |||||||||||||||||||
Lease originations | 7,574 | 8,737 | 8,279 | ||||||||||||||||||||||
Terminations | (8,680 | ) | (7,848 | ) | (6,824 | ) | |||||||||||||||||||
Estimated residual value, ending | $ | 23,070 | $ | 24,176 | $ | 23,287 | |||||||||||||||||||
Allowance for Credit Losses by Portfolio Segment | ' | ||||||||||||||||||||||||
The following table reconciles the activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Microticket Equipment | |||||||||||||||||||||||||
LeaseComm | TimePayment | Total | |||||||||||||||||||||||
Allowance for credit losses at January 1, 2010: | $ | 231 | $ | 12,901 | $ | 13,132 | |||||||||||||||||||
Charge-offs | (726 | ) | (22,437 | ) | (23,163 | ) | |||||||||||||||||||
Recoveries | 1,221 | 3,740 | 4,961 | ||||||||||||||||||||||
Provisions | (564 | ) | 18,814 | 18,250 | |||||||||||||||||||||
Allowance for credit losses at December 31, 2011 | 162 | 13,018 | 13,180 | ||||||||||||||||||||||
Charge-offs | (605 | ) | (23,185 | ) | (23,790 | ) | |||||||||||||||||||
Recoveries | 248 | 4,910 | 5,158 | ||||||||||||||||||||||
Provisions | 298 | 19,192 | 19,490 | ||||||||||||||||||||||
Allowance for credit losses at December 31, 2012 | 103 | 13,935 | 14,038 | ||||||||||||||||||||||
Charge-offs | (361 | ) | (23,876 | ) | (24,237 | ) | |||||||||||||||||||
Recoveries | 162 | 5,886 | 6,048 | ||||||||||||||||||||||
Provisions | 187 | 19,343 | 19,530 | ||||||||||||||||||||||
Allowance for credit losses at December 31, 2013 | $ | 91 | $ | 15,288 | $ | 15,379 | |||||||||||||||||||
Allowance for Credit Losses and Financing Receivables by Portfolio Segment Classified According to Impairment Evaluation Method | ' | ||||||||||||||||||||||||
The following table presents the allowance for credit losses and financing receivables by portfolio segment as of December 31, 2013 and 2012, classified according to impairment evaluation method: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Lease- | Time- | Total | Lease- | Time- | Total | ||||||||||||||||||||
Comm | Payment | Comm | Payment | ||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collectively evaluated for impairment | 91 | 15,288 | 15,379 | 103 | 13,935 | 14,038 | |||||||||||||||||||
Contracts acquired with deteriorated credit quality | — | — | — | — | — | — | |||||||||||||||||||
Ending balance, allowance for credit losses | $ | 91 | $ | 15,288 | $ | 15,379 | $ | 103 | $ | 13,935 | $ | 14,038 | |||||||||||||
Financing receivables:(1) | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collectively evaluated for impairment | 185 | 177,463 | 177,648 | 174 | 173,697 | 173,871 | |||||||||||||||||||
Contracts acquired with deteriorated credit quality | — | — | — | — | — | — | |||||||||||||||||||
Ending balance, financing receivables(1) | $ | 185 | $ | 177,463 | $ | 177,648 | $ | 174 | $ | 173,697 | $ | 173,871 | |||||||||||||
-1 | Total financing receivables include net investment in leases. For purposes of asset quality and allowance calculations, the allowance for credit losses is excluded. | ||||||||||||||||||||||||
Aged Analysis of Past Due Financing Receivables by Our Internally Developed Proprietary Scoring Model in Leases | ' | ||||||||||||||||||||||||
The following table presents the aging status of the recorded investment in leases as of December 31, 2013, classified according to the original score granted by our internally-developed proprietary scoring model: | |||||||||||||||||||||||||
31 to 60 | 61 to 90 | Over 90 | Over 90 | ||||||||||||||||||||||
Days | Days | Days | Days | ||||||||||||||||||||||
Current | Past Due | Past Due | Past Due | Total | Accruing | ||||||||||||||||||||
LeaseComm | $ | 93 | $ | 5 | $ | 4 | $ | 83 | $ | 185 | $ | 83 | |||||||||||||
TimePayment | |||||||||||||||||||||||||
Gold | 58,769 | 2,501 | 902 | 3,391 | 65,563 | 3,391 | |||||||||||||||||||
Silver | 81,152 | 2,933 | 2,754 | 13,437 | 100,276 | 13,437 | |||||||||||||||||||
Bronze | 7,788 | 493 | 502 | 2,841 | 11,624 | 2,841 | |||||||||||||||||||
TimePayment subtotal | 147,709 | 5,927 | 4,158 | 19,669 | 177,463 | 19,669 | |||||||||||||||||||
Total financing receivables | $ | 147,802 | $ | 5,932 | $ | 4,162 | $ | 19,752 | $ | 177,648 | $ | 19,752 | |||||||||||||
Percent of total financing receivables | 83.2 | % | 3.3 | % | 2.4 | % | 11.1 | % | 100 | % | |||||||||||||||
The following table presents the aging status of the recorded investment in leases as of December 31, 2012, classified according to the original score granted by our internally-developed proprietary scoring model: | |||||||||||||||||||||||||
31 to 60 | 61 to 90 | Over 90 | Over 90 | ||||||||||||||||||||||
Days | Days | Days | Days | ||||||||||||||||||||||
Current | Past Due | Past Due | Past Due | Total | Accruing | ||||||||||||||||||||
LeaseComm | $ | 90 | $ | 5 | $ | 5 | $ | 74 | $ | 174 | $ | 74 | |||||||||||||
TimePayment | |||||||||||||||||||||||||
Gold | 54,446 | 2,763 | 1,042 | 2,309 | 60,560 | 2,309 | |||||||||||||||||||
Silver | 84,268 | 2,883 | 3,281 | 13,312 | 103,744 | 13,312 | |||||||||||||||||||
Bronze | 6,341 | 493 | 441 | 2,118 | 9,393 | 2,118 | |||||||||||||||||||
TimePayment subtotal | 145,055 | 6,139 | 4,764 | 17,739 | 173,697 | 17,739 | |||||||||||||||||||
Total financing receivables | $ | 145,145 | $ | 6,144 | $ | 4,769 | $ | 17,813 | $ | 173,871 | $ | 17,813 | |||||||||||||
Percent of total financing receivables | 83.5 | % | 3.5 | % | 2.7 | % | 10.3 | % | 100 | % |
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Income Per Common Share | ' | ||||||||||||
Net income per common share for the twelve months ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 9,763 | $ | 9,351 | $ | 8,991 | |||||||
Weighted-average shares outstanding used in computation of net income per share - basic | 14,460,613 | 14,321,815 | 14,247,413 | ||||||||||
Dilutive effect of options, warrants and restricted stock | 313,916 | 367,716 | 278,153 | ||||||||||
Shares used in computation of net income per common share - assuming dilution | 14,774,529 | 14,689,531 | 14,525,566 | ||||||||||
Net income per common share – basic | $ | 0.68 | $ | 0.65 | $ | 0.63 | |||||||
Net income per common share – diluted | $ | 0.66 | $ | 0.64 | $ | 0.62 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Summary of Property and Equipment | ' | ||||||||||||
At December 31, 2013 and 2012, our property and equipment consisted of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Computer equipment | $ | 3,719 | $ | 3,449 | |||||||||
Office equipment | 363 | 319 | |||||||||||
Leasehold improvements | 1,269 | 1,175 | |||||||||||
Total | 5,351 | 4,943 | |||||||||||
Less accumulated depreciation and amortization | (4,018 | ) | (3,409 | ) | |||||||||
Property and equipment, net | $ | 1,333 | $ | 1,534 | |||||||||
Summary of Depreciation and Amortization Expense | ' | ||||||||||||
Depreciation and amortization expense were as follows for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Twelve months ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation and amortization expense relating to: | |||||||||||||
Property and equipment | $ | 609 | $ | 598 | $ | 510 | |||||||
Rental equipment | 4,339 | 3,671 | 2,760 | ||||||||||
Service contracts | 500 | 86 | — | ||||||||||
Total depreciation and amortization | $ | 5,448 | $ | 4,355 | $ | 3,270 | |||||||
Investment_in_Service_Contract1
Investment in Service Contracts, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Investment in Service Contracts | ' | ||||||||
At December 31, 2013 and 2012, our investment in service contracts consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Investment in service contracts | $ | 3,079 | $ | 1,495 | |||||
Less accumulated amortization | (1,021 | ) | (698 | ) | |||||
Investment in service contracts, net | $ | 2,058 | $ | 797 | |||||
Investment_in_Rental_Contracts1
Investment in Rental Contracts, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Investment in Rental Contracts | ' | ||||||||
At December 31, 2013 and 2012, our investment in rental contracts consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Investment in rental contracts | $ | 2,985 | $ | 3,163 | |||||
Less accumulated depreciation | (1,926 | ) | (2,126 | ) | |||||
Investment in rental contracts, net | $ | 1,059 | $ | 1,037 | |||||
Revolving_Line_of_Credit_Table
Revolving Line of Credit (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Chronology of Total Commitment Under Revolving Credit Facility with Associated Rate Options in Effect | ' | ||||||||||||
The following table demonstrates the total commitment under the revolving credit facility with the associated rate options in effect during the three years ended December 31, 2013. As of December 31, 2013, the total commitment under the facility was $150 million. | |||||||||||||
Amendment | Total | Rate options(1) | Minimum | Facility | |||||||||
Date | Commitment | Rate | Expiration | ||||||||||
under Credit | |||||||||||||
Facility | |||||||||||||
(in millions) | |||||||||||||
Jul-10 | 100 | Prime plus 1.25% | or | LIBOR plus 3.25% | None | Aug-13 | |||||||
Oct-11 | 100 | Prime plus 0.75% | or | LIBOR plus 2.75% | None | Aug-14 | |||||||
December 2012 | 150 | Base(2) plus 0.75% | or | LIBOR plus 2.50% | None | December 2016 | |||||||
(1) | Under the terms of the facility, loans are Based Rate Loans (or prior to December 2012, Prime Rate Loans), unless we elect LIBOR Loans. If a LIBOR Loan is not renewed at maturity it automatically converts to a Base Rate Loan. | ||||||||||||
(2) | The “base rate” is the highest of the prime rate established by the Agent, or one-month LIBOR plus 1%, or the federal funds effective rate plus 0.5%. |
Dividends_Tables
Dividends (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Text Block [Abstract] | ' | ||||||
Dividends Declared and Paid or Payable | ' | ||||||
J. Dividends | |||||||
Dividends declared and paid or payable were as follows: | |||||||
2013 | |||||||
Date Declared | Record Date | Payment Date | Dividend per | ||||
Share | |||||||
29-Jan-13 | 8-Feb-13 | 15-Feb-13 | $0.06 | ||||
23-Apr-13 | 3-May-13 | 15-May-13 | 0.06 | ||||
17-Jul-13 | 30-Jul-13 | 15-Aug-13 | 0.06 | ||||
24-Oct-13 | 4-Nov-12 | 15-Nov-13 | 0.07 | ||||
Total | $0.25 | ||||||
2012 | |||||||
Date Declared | Record Date | Payment Date | Dividend per | ||||
Share | |||||||
31-Jan-12 | 10-Feb-12 | 15-Feb-12 | $0.06 | ||||
19-Apr-12 | 30-Apr-12 | 15-May-12 | 0.06 | ||||
19-Jul-12 | 30-Jul-12 | 15-Aug-12 | 0.06 | ||||
18-Oct-12 | 31-Oct-12 | 15-Nov-12 | 0.06 | ||||
Total | $0.24 | ||||||
2011 | |||||||
Date Declared | Record Date | Payment Date | Dividend per Share | ||||
21-Jan-11 | 1-Feb-11 | 15-Feb-11 | $0.05 | ||||
21-Apr-11 | 2-May-11 | 13-May-11 | 0.05 | ||||
21-Jul-11 | 1-Aug-11 | 15-Aug-11 | 0.05 | ||||
25-Oct-11 | 4-Nov-11 | 15-Nov-11 | 0.06 | ||||
Total | $0.21 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||
Stock Granted to Non-employee Directors | ' | ||||||||||||||||||||||||||||||
The following details the stock granted to our non-employee directors under the 2008 and 2012 Plans during the years ended December 31, 2013, 2012 and 2011. These shares were issued as part of our annual director compensation arrangements related to the prior years’ service, and were fully vested on the date of issuance. | |||||||||||||||||||||||||||||||
Date of Grant | Number of | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Shares | per Share | of Grant | |||||||||||||||||||||||||||||
Feb-11 | 51,642 | $ | 4.11 | $ | 212 | ||||||||||||||||||||||||||
Jul-11 | 25,632 | 5.54 | 142 | ||||||||||||||||||||||||||||
Total 2011 Grants: | 77,274 | $ | 354 | ||||||||||||||||||||||||||||
Feb-12 | 31,820 | 6.6 | $ | 210 | |||||||||||||||||||||||||||
Jul-12 | 16,328 | 8.36 | 136 | ||||||||||||||||||||||||||||
Total 2012 Grants: | 48,148 | $ | 346 | ||||||||||||||||||||||||||||
Jan-13 | 29,205 | 7.55 | 221 | ||||||||||||||||||||||||||||
Jul-13 | 16,587 | 8.44 | 140 | ||||||||||||||||||||||||||||
Total 2013 Grants: | 45,792 | $ | 361 | ||||||||||||||||||||||||||||
Restricted Stock Units Activity | ' | ||||||||||||||||||||||||||||||
The following table summarizes our RSU activity for the three years ended December 31, 2013: | |||||||||||||||||||||||||||||||
Number | Grant | Grant | Fair | ||||||||||||||||||||||||||||
of RSUs | Date Fair | Date Fair | Value of | ||||||||||||||||||||||||||||
Value per | Value | RSUs at | |||||||||||||||||||||||||||||
Share | Vesting | ||||||||||||||||||||||||||||||
Date(a) | |||||||||||||||||||||||||||||||
Unvested RSUs at December 31, 2010 | 33,518 | $ | 3.15 | $ | 106 | ||||||||||||||||||||||||||
Granted | 33,044 | $ | 4.11 | 136 | |||||||||||||||||||||||||||
Unvested RSUs at December 31, 2011 | 66,562 | ||||||||||||||||||||||||||||||
Granted | 40,393 | $ | 6.6 | 266 | |||||||||||||||||||||||||||
Vested | (8,380 | ) | $ | 57 | |||||||||||||||||||||||||||
Unvested RSUs at December 31, 2012 | 98,575 | ||||||||||||||||||||||||||||||
Granted | 45,316 | $ | 7.55 | 342 | |||||||||||||||||||||||||||
Vested | (16,640 | ) | 125 | ||||||||||||||||||||||||||||
Unvested RSUs at December 31, 2013 | 127,251 | $ | 850 | $ | 182 | ||||||||||||||||||||||||||
(a) | The fair value of vested RSUs is calculated based on the closing stock price on the day of vesting. The fair value of unvested RSUs at December 31, 2013, based on the stock closing price on that date, was $1.1 million, and the weighted average vesting period of these RSUs is 2.32 years. | ||||||||||||||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||||||||||||
The following summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||
Shares(b) | Exercise | Weighted | |||||||||||||||||||||||||||||
Price Per Share | Average | ||||||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||||||
Outstanding at December 31, 2010 | 908,028 | $ | 1.59 to $13.10 | $ | 5.07 | ||||||||||||||||||||||||||
Expired | (90,000 | ) | $ | 13.1 | $ | 13.1 | |||||||||||||||||||||||||
Outstanding at December 31, 2011 | 818,028 | $ | 1.59 to $6.70 | $ | 4.19 | ||||||||||||||||||||||||||
Exercised(a) | (150,000 | ) | $ | 1.59 | $ | 1.59 | |||||||||||||||||||||||||
Expired | (235,000 | ) | $ | 6.7 | $ | 6.7 | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 433,028 | $ | 2.30 to $5.85 | $ | 3.72 | ||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 433,028 | $ | 2.30 to $5.85 | $ | 3.72 | ||||||||||||||||||||||||||
(a) | The intrinsic value of the options exercised in 2012 was $755,000. There were no options exercised in 2011 or 2013. | ||||||||||||||||||||||||||||||
(b) | The outstanding options vest over five years based solely on service and are exercisable only after they become vested. All unvested outstanding options are expected to vest. At December 31, 2013, 2012 and 2011, 368,347, 268,072 and 520,872, respectively, of the outstanding options were fully vested. | ||||||||||||||||||||||||||||||
Outstanding Stock Options | ' | ||||||||||||||||||||||||||||||
Information relating to our outstanding stock options at December 31, 2013, is as follows: | |||||||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||||||||||
Exercise | Life | Intrinsic | Exercise | Life | Intrinsic | ||||||||||||||||||||||||||
Price | Shares | (Years) | Value | Price | Shares | (Years) | Value | ||||||||||||||||||||||||
$ | 5.77 | 31,923 | 3.17 | $ | 89 | $ | 5.77 | 31,923 | 3.17 | $ | 89 | ||||||||||||||||||||
5.85 | 142,382 | 4.08 | 384 | 5.85 | 142,382 | 4.08 | 384 | ||||||||||||||||||||||||
2.3 | 258,723 | 5.17 | 1,617 | 2.3 | 194,042 | 5.17 | 1,213 | ||||||||||||||||||||||||
0 | 433,028 | 4.66 | $ | 2,090 | $ | 3.97 | 368,347 | 4.58 | $ | 1,686 | |||||||||||||||||||||
Stock Compensation Expense | ' | ||||||||||||||||||||||||||||||
Stock compensation expense recognized during the years ended December 31, 2013, 2012 and 2011, and unrecognized compensation as of December 31, 2013, are as follows: | |||||||||||||||||||||||||||||||
Unrecognized | |||||||||||||||||||||||||||||||
Compensation | |||||||||||||||||||||||||||||||
Cost as of | |||||||||||||||||||||||||||||||
Year ended December 31, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | ||||||||||||||||||||||||||||
Compensation expense - RSUs | $ | 199 | $ | 109 | $ | 46 | $ | 476 | |||||||||||||||||||||||
Compensation expense - Options | 33 | 82 | 92 | 2 | |||||||||||||||||||||||||||
Total | $ | 232 | $ | 191 | $ | 138 | $ | 478 | |||||||||||||||||||||||
Reserved Shares of Common Stock | ' | ||||||||||||||||||||||||||||||
We have reserved shares of common stock at December 31, 2013, as follows: | |||||||||||||||||||||||||||||||
Warrants | 86,221 | ||||||||||||||||||||||||||||||
Stock options | 433,028 | ||||||||||||||||||||||||||||||
Restricted stock units | 127,251 | ||||||||||||||||||||||||||||||
Reserved for future grants under 2012 Equity Incentive Plans | 613,183 | ||||||||||||||||||||||||||||||
Total | 1,259,683 | ||||||||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 8,216 | $ | 5,545 | $ | 789 | |||||||
State | 2,065 | 1,544 | 1,133 | ||||||||||
10,281 | 7,089 | 1,922 | |||||||||||
Deferred: | |||||||||||||
Federal | (3,129 | ) | (821 | ) | 3,994 | ||||||||
State | (592 | ) | (253 | ) | (288 | ) | |||||||
(3,721 | ) | (1,074 | ) | 3,706 | |||||||||
Total | $ | 6,560 | $ | 6,015 | $ | 5,628 | |||||||
Components of the Net Deferred Tax Liability | ' | ||||||||||||
At December 31, 2013, and 2012, the components of the net deferred tax liability were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for credit losses | $ | 6,152 | $ | 5,615 | |||||||||
Depreciation and amortization | 32,709 | 29,717 | |||||||||||
State NOL and other state attributes | 62 | 251 | |||||||||||
State valuation allowance | (205 | ) | (355 | ) | |||||||||
Total deferred tax assets | 38,718 | 35,228 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Lease receivable and unearned income | (35,758 | ) | (35,539 | ) | |||||||||
Residual value | (9,228 | ) | (9,670 | ) | |||||||||
Initial direct costs | (410 | ) | (418 | ) | |||||||||
Total deferred tax liabilities | (45,396 | ) | (45,627 | ) | |||||||||
Net deferred tax liability | $ | (6,678 | ) | $ | (10,399 | ) | |||||||
Reconciliation of Statutory Federal Income Tax Rate | ' | ||||||||||||
The following is reconciliation between the effective income tax rate and the applicable statutory federal income tax rate: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 5.19 | 4.8 | 3.03 | ||||||||||
State valuation allowance | (0.60 | ) | (0.06 | ) | (0.07 | ) | |||||||
Nondeductible expenses and other | 0.6 | (0.61 | ) | 0.54 | |||||||||
Effective income tax rate | 40.19 | % | 39.13 | % | 38.5 | % | |||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Balance at January 1, 2011 | $ | 21 | |||||||||||
Additions for tax positions related to current year | 21 | ||||||||||||
Reductions for tax positions as a result of lapse of statute of limitations | (21 | ) | |||||||||||
Balance at December 31, 2011 | 21 | ||||||||||||
Additions for tax positions related to current year | 63 | ||||||||||||
Reductions for tax positions as a result of lapse of statute of limitations | (21 | ) | |||||||||||
Balance at December 31, 2012 | 63 | ||||||||||||
Additions for tax positions related to current year | 26 | ||||||||||||
Reductions for tax positions as a result of closed examinations | (89 | ) | |||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Minimum Lease Payments Under Non-Cancelable Operating Leases | ' | ||||
At December 31, 2013, future minimum lease payments under non-cancelable operating leases are: | |||||
For the years ended December 31, | |||||
2014 | $ | 712 | |||
2015 | 728 | ||||
2016 | 744 | ||||
2017 | 760 | ||||
2018 | 421 | ||||
Total | $ | 3,365 | |||
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Risks And Uncertainties [Abstract] | ' | ||||||||||||||||
Concentration of Leases In Certain States | ' | ||||||||||||||||
The concentration of leases in certain states as of the end of each of the past three years, as a percentage of our total portfolio, is reflected below. No other state accounted for more than five percent of such total. | |||||||||||||||||
Year Ended | Florida | California | Texas | New York | |||||||||||||
December 31, | |||||||||||||||||
2011 | 13 | % | 11 | % | 8 | % | 9 | % | |||||||||
2012 | 13 | % | 12 | % | 8 | % | 8 | % | |||||||||
2013 | 13 | % | 12 | % | 9 | % | 8 | % |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Lease_Agreement | |
RiskRating | |
Segment | |
Schedule Of Significant Accounting Policies [Line Items] | ' |
Number of operating segments | 1 |
Cash and Cash Equivalents, Maturity description | 'Less than three months |
Finance receivable charged-off | '360 days past due or earlier |
Number of scores | 10 |
Risk rate description | 'The TimePayment scoring model generates one of ten acceptable risk ratings based upon the creditworthiness of each application or it rejects the application |
Expected forfeiture rate | 0.00% |
Number of lease agreements | 2 |
Maximum [Member] | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' |
Acquisition cost and depreciated life of asset | '5 years |
Minimum [Member] | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' |
Acquisition cost and depreciated life of asset | '3 years |
Property Available for Operating Lease [Member] | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' |
Rental contract recorded at estimated residual value useful life | '12 months |
Rental contract recorded at acquisition cost estimated useful life | '3 years |
Net_Investment_in_Leases_Futur
Net Investment in Leases - Future Minimum Payments Due on Lease Receivables (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $105,117 |
2015 | 61,058 |
2016 | 32,293 |
2017 | 12,958 |
2018 | 3,202 |
Total | $214,628 |
Net_Investment_in_Leases_Addit
Net Investment in Leases - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Leases [Abstract] | ' | ' |
Weighted-average remaining life of the leases | '26 months | '28 months |
Weighted-average implicit rate of interest | 25.50% | 25.90% |
Net_Investment_in_Leases_Summa
Net Investment in Leases - Summary of the Changes in Estimated Residual Value (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Estimated residual value, beginning | $24,176 | $23,287 | $21,832 |
Lease originations | 7,574 | 8,737 | 8,279 |
Terminations | -8,680 | -7,848 | -6,824 |
Estimated residual value, ending | $23,070 | $24,176 | $23,287 |
Net_Investment_in_Leases_Allow
Net Investment in Leases - Allowance for Credit Losses by Portfolio Segment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Allowance for credit losses, Beginning balance | $14,038 | $13,180 | $13,132 |
Charge-offs | -24,237 | -23,790 | -23,163 |
Recoveries | 6,048 | 5,158 | 4,961 |
Provisions | 19,530 | 19,490 | 18,250 |
Allowance for credit losses, Ending balance | 15,379 | 14,038 | 13,180 |
LeaseComm Microticket Equipment [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Allowance for credit losses, Beginning balance | 103 | 162 | 231 |
Charge-offs | -361 | -605 | -726 |
Recoveries | 162 | 248 | 1,221 |
Provisions | 187 | 298 | -564 |
Allowance for credit losses, Ending balance | 91 | 103 | 162 |
Time-Payment Microticket Equipment [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Allowance for credit losses, Beginning balance | 13,935 | 13,018 | 12,901 |
Charge-offs | -23,876 | -23,185 | -22,437 |
Recoveries | 5,886 | 4,910 | 3,740 |
Provisions | 19,343 | 19,192 | 18,814 |
Allowance for credit losses, Ending balance | $15,288 | $13,935 | $13,018 |
Net_Investment_in_Leases_Allow1
Net Investment in Leases - Allowance for Credit Losses and Financing Receivables by Portfolio Segment Classified According to Impairment Evaluation Method (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for credit losses: Individually evaluated for impairment | ' | ' | ' | ' |
Allowance for credit losses: Collectively evaluated for impairment | 15,379 | 14,038 | ' | ' |
Allowance for credit losses: Contracts acquired with deteriorated credit quality | ' | ' | ' | ' |
Allowance for credit losses, Ending balance | 15,379 | 14,038 | 13,180 | 13,132 |
Financing receivables: Individually evaluated for impairment | ' | ' | ' | ' |
Financing receivables: Collectively evaluated for impairment | 177,648 | 173,871 | ' | ' |
Financing receivables: Contracts acquired with deteriorated credit quality | ' | ' | ' | ' |
Financing receivables, Ending balance | 177,648 | 173,871 | ' | ' |
LeaseComm Microticket Equipment [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for credit losses: Individually evaluated for impairment | ' | ' | ' | ' |
Allowance for credit losses: Collectively evaluated for impairment | 91 | 103 | ' | ' |
Allowance for credit losses: Contracts acquired with deteriorated credit quality | ' | ' | ' | ' |
Allowance for credit losses, Ending balance | 91 | 103 | 162 | 231 |
Financing receivables: Individually evaluated for impairment | ' | ' | ' | ' |
Financing receivables: Collectively evaluated for impairment | 185 | 174 | ' | ' |
Financing receivables: Contracts acquired with deteriorated credit quality | ' | ' | ' | ' |
Financing receivables, Ending balance | 185 | 174 | ' | ' |
Time-Payment Microticket Equipment [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for credit losses: Individually evaluated for impairment | ' | ' | ' | ' |
Allowance for credit losses: Collectively evaluated for impairment | 15,288 | 13,935 | ' | ' |
Allowance for credit losses: Contracts acquired with deteriorated credit quality | ' | ' | ' | ' |
Allowance for credit losses, Ending balance | 15,288 | 13,935 | 13,018 | 12,901 |
Financing receivables: Individually evaluated for impairment | ' | ' | ' | ' |
Financing receivables: Collectively evaluated for impairment | 177,463 | 173,697 | ' | ' |
Financing receivables: Contracts acquired with deteriorated credit quality | ' | ' | ' | ' |
Financing receivables, Ending balance | $177,463 | $173,697 | ' | ' |
Net_Investment_in_Leases_Aged_
Net Investment in Leases - Aged Analysis of Past Due Financing Receivables by Our Internally Developed Proprietary Scoring Model in Leases (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | $147,802 | $145,145 |
31 to 60 Days Past Due | 5,932 | 6,144 |
61 to 90 Days Past Due | 4,162 | 4,769 |
Over 90 Days Past Due | 19,752 | 17,813 |
Financing receivables, Ending balance | 177,648 | 173,871 |
Over 90 Days Accruing | 19,752 | 17,813 |
Percent of total financing receivables, Current | 83.20% | 83.50% |
Percent of total financing receivables, 31 to 60 Days Past Due | 3.30% | 3.50% |
Percent of total financing receivables, 61 to 90 Days Past Due | 2.40% | 2.70% |
Percent of total financing receivables, Over 90 Days Past Due | 11.10% | 10.30% |
Percent of total financing receivables | 100.00% | 100.00% |
Lease Comm [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 93 | 90 |
31 to 60 Days Past Due | 5 | 5 |
61 to 90 Days Past Due | 4 | 5 |
Over 90 Days Past Due | 83 | 74 |
Financing receivables, Ending balance | 185 | 174 |
Over 90 Days Accruing | 83 | 74 |
Time Payment Corp [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 147,709 | 145,055 |
31 to 60 Days Past Due | 5,927 | 6,139 |
61 to 90 Days Past Due | 4,158 | 4,764 |
Over 90 Days Past Due | 19,669 | 17,739 |
Financing receivables, Ending balance | 177,463 | 173,697 |
Over 90 Days Accruing | 19,669 | 17,739 |
Time Payment Corp [Member] | Gold [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 58,769 | 54,446 |
31 to 60 Days Past Due | 2,501 | 2,763 |
61 to 90 Days Past Due | 902 | 1,042 |
Over 90 Days Past Due | 3,391 | 2,309 |
Financing receivables, Ending balance | 65,563 | 60,560 |
Over 90 Days Accruing | 3,391 | 2,309 |
Time Payment Corp [Member] | Silver [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 81,152 | 84,268 |
31 to 60 Days Past Due | 2,933 | 2,883 |
61 to 90 Days Past Due | 2,754 | 3,281 |
Over 90 Days Past Due | 13,437 | 13,312 |
Financing receivables, Ending balance | 100,276 | 103,744 |
Over 90 Days Accruing | 13,437 | 13,312 |
Time Payment Corp [Member] | Bronze [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 7,788 | 6,341 |
31 to 60 Days Past Due | 493 | 493 |
61 to 90 Days Past Due | 502 | 441 |
Over 90 Days Past Due | 2,841 | 2,118 |
Financing receivables, Ending balance | 11,624 | 9,393 |
Over 90 Days Accruing | $2,841 | $2,118 |
Net_Income_Per_Common_Share_Ne
Net Income Per Common Share - Net Income per Common Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income Per Share Basic And Diluted [Abstract] | ' | ' | ' |
Net income | $9,763 | $9,351 | $8,991 |
Weighted-average shares outstanding used in computation of net income per share - basic | 14,460,613 | 14,321,815 | 14,247,413 |
Dilutive effect of options, warrants and restricted stock | 313,916 | 367,716 | 278,153 |
Shares used in computation of net income per common share - assuming dilution | 14,774,529 | 14,689,531 | 14,525,566 |
Net income per common share - basic | $0.68 | $0.65 | $0.63 |
Net income per common share - diluted | $0.66 | $0.64 | $0.62 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Options excluded from the computation of diluted net income per share | 0 | 0 | 409,305 |
Debt_Issue_Costs_Additional_In
Debt Issue Costs - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $288,000 | $216,000 | $282,000 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $5,351 | $4,943 |
Less accumulated depreciation and amortization | -4,018 | -3,409 |
Property and equipment, net | 1,333 | 1,534 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 3,719 | 3,449 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 363 | 319 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $1,269 | $1,175 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Leasehold Improvements | $39,000 | $0 |
Property_and_Equipment_Summary1
Property and Equipment - Summary of Depreciation and Amortization Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Depreciation and amortization expense relating to: | ' | ' | ' |
Total depreciation and amortization | $5,448 | $4,355 | $3,270 |
Property and Equipment [Member] | ' | ' | ' |
Depreciation and amortization expense relating to: | ' | ' | ' |
Total depreciation and amortization | 609 | 598 | 510 |
Rental Equipment [Member] | ' | ' | ' |
Depreciation and amortization expense relating to: | ' | ' | ' |
Total depreciation and amortization | 4,339 | 3,671 | 2,760 |
Service Contracts [Member] | ' | ' | ' |
Depreciation and amortization expense relating to: | ' | ' | ' |
Total depreciation and amortization | $500 | $86 | ' |
Investment_in_Service_Contract2
Investment in Service Contracts, Net - Investment in Service Contracts (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Investment in service contracts, net | $2,058 | $797 |
Service Contracts [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Investment in service contracts | 3,079 | 1,495 |
Less accumulated amortization | -1,021 | -698 |
Investment in service contracts, net | $2,058 | $797 |
Investment_in_Rental_Contracts2
Investment in Rental Contracts, Net - Investment in Rental Contracts (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments Schedule [Abstract] | ' | ' |
Investment in rental contracts | $2,985 | $3,163 |
Less accumulated depreciation | -1,926 | -2,126 |
Investment in rental contracts, net | $1,059 | $1,037 |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Aug. 30, 2007 | |
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving line of credit balance - Santander | $72,566,000 | $70,380,000 | ' |
Borrowing capacity under revolving line of credit | 150,000,000 | 150,000,000 | 30,000,000 |
Further increases in total commitment | ' | 175,000,000 | ' |
Available on revolving line of credit | 77,400,000 | ' | ' |
Maturity date of the facility | 31-Dec-16 | ' | ' |
Qualified lease receivables eligible under the borrowing base computation | 129,900,000 | ' | ' |
London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount outstanding on line of credit | 65,000,000 | ' | ' |
Base Rate [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount outstanding on line of credit | 7,600,000 | ' | ' |
Minimum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Borrowing capacity under revolving line of credit | ' | $100,000,000 | ' |
Interest rate on loans | 2.74% | ' | ' |
Maximum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Interest rate on loans | 4.00% | ' | ' |
Revolving_Line_of_Credit_Chron
Revolving Line of Credit - Chronology of Total Commitment Under Revolving Credit Facility with Associated Rate Options in Effect (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 30, 2007 |
Line of Credit Facility [Line Items] | ' | ' | ' |
Total Commitment under Credit Facility | $150 | $150 | $30 |
Facility Expiration | 31-Dec-16 | ' | ' |
July 2010 [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amendment Date | 31-Jul-10 | ' | ' |
Total Commitment under Credit Facility | 100 | ' | ' |
Rate options | 'Prime plus 1.25% or LIBOR plus 3.25% | ' | ' |
Facility Expiration | 31-Aug-13 | ' | ' |
October 2011 [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amendment Date | 31-Oct-11 | ' | ' |
Total Commitment under Credit Facility | 100 | ' | ' |
Rate options | 'Prime plus 0.75% or LIBOR plus 2.75% | ' | ' |
Facility Expiration | 31-Aug-14 | ' | ' |
December 2012 [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amendment Date | 31-Dec-12 | ' | ' |
Total Commitment under Credit Facility | 150 | ' | ' |
Rate options | 'Base plus 0.75% or LIBOR plus 2.50% | ' | ' |
Facility Expiration | 31-Dec-16 | ' | ' |
Minimum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Total Commitment under Credit Facility | ' | $100 | ' |
Minimum Rate | 2.74% | ' | ' |
Minimum [Member] | July 2010 [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Minimum Rate | ' | ' | ' |
Minimum [Member] | October 2011 [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Minimum Rate | ' | ' | ' |
Minimum [Member] | December 2012 [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Minimum Rate | ' | ' | ' |
Revolving_Line_of_Credit_Chron1
Revolving Line of Credit - Chronology of Total Commitment Under Revolving Credit Facility with Associated Rate Options in Effect (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
London Interbank Offered Rate (LIBOR) [Member] | ' |
Line of Credit Facility [Line Items] | ' |
The base rate established by the Agent | 1.00% |
Federal Funds [Member] | ' |
Line of Credit Facility [Line Items] | ' |
The base rate established by the Agent | 0.50% |
Base Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Rate options | 'The "base rate" is the highest of the prime rate established by the Agent, or one-month LIBOR plus 1%, or the federal funds effective rate plus 0.5% |
Dividends_Dividends_Declared_a
Dividends - Dividends Declared and Paid or Payable (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Dividend per Share | $0.25 | $0.24 | $0.21 |
Dividend 1 [Member] | ' | ' | ' |
Date Declared | 29-Jan-13 | 31-Jan-12 | 21-Jan-11 |
Record Date | 8-Feb-13 | 10-Feb-12 | 1-Feb-11 |
Payment Date | 15-Feb-13 | 15-Feb-12 | 15-Feb-11 |
Dividend per Share | $0.06 | $0.06 | $0.05 |
Dividend 2 [Member] | ' | ' | ' |
Date Declared | 23-Apr-13 | 19-Apr-12 | 21-Apr-11 |
Record Date | 3-May-13 | 30-Apr-12 | 2-May-11 |
Payment Date | 15-May-13 | 15-May-12 | 13-May-11 |
Dividend per Share | $0.06 | $0.06 | $0.05 |
Dividend 3 [Member] | ' | ' | ' |
Date Declared | 17-Jul-13 | 19-Jul-12 | 21-Jul-11 |
Record Date | 30-Jul-13 | 30-Jul-12 | 1-Aug-11 |
Payment Date | 15-Aug-13 | 15-Aug-12 | 15-Aug-11 |
Dividend per Share | $0.06 | $0.06 | $0.05 |
Dividend 4 [Member] | ' | ' | ' |
Date Declared | 24-Oct-13 | 18-Oct-12 | 25-Oct-11 |
Record Date | 4-Nov-12 | 31-Oct-12 | 4-Nov-11 |
Payment Date | 15-Nov-13 | 15-Nov-12 | 15-Nov-11 |
Dividend per Share | $0.07 | $0.06 | $0.06 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 10, 2010 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Executive Officer [Member] | Stock Option [Member] | First Tranche [Member] | Third Tranche [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Restricted Stock Units [Member] | Performance Shares [Member] | Performance Shares [Member] | Warrant [Member] | Warrant [Member] | 2008 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | 2012 Equity Incentive Plan [Member] | ||||||
First Tranche [Member] | Third Tranche [Member] | First Tranche [Member] | Second Tranche [Member] | Third Tranche [Member] | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cashless warrants exercised | ' | ' | 7,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,367 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding | ' | 86,221 | 86,221 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | 0.815 | 0.815 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserved shares of common stock for issuance | ' | 1,259,683 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,221 | 1,000,000 | 127,251 | ' | ' | ' | ' | ' | ' | 750,000 |
Unissued common stock reserved under equity incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 613,183 |
Period of option, including the amount, exercise price, vesting schedule and term | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per share Exercise price of the option on fair market value of the common stock | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option granted under the 2008 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vest over Period | '5 years | '5 years | ' | ' | ' | ' | '1 year | ' | ' | '5 years | '5 years | '5 years | '5 years | ' | ' | '3 years | '3 years | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' |
Grants to Participant options or other awards | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condition on options | ' | 'The committee determines the terms of the option, including the amount, exercise price, vesting schedule and term, which may not exceed ten years. The per share exercise price of the option may not be less than 100% of the fair market value of the common stock on the grant date. No stock options granted to an employee under the 2008 Plan shall become fully vested within one year of grant date and no restricted stock or other awards made to an employee without any performance-based criteria other than the employeebs continued service will have a restricted vesting period of less than one year. We may not in any fiscal year grant to any participant options or other awards covering more than 200,000 shares. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average life in years of RSU's | ' | '0 years | '2 years 10 months 10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of RSUs granted | ' | ' | ' | ' | ' | 45,316 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,316 | 40,393 | 33,044 | ' | ' | ' | ' | ' |
Fair value of RSUs granted | ' | ' | ' | ' | ' | $7.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.55 | $6.60 | $4.11 | $3.15 | ' | ' | ' | ' |
Number of shares of restricted stock vest | 1,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,165 | ' | ' | 28,643 | 15,548 | 1,125 | ' |
Percentage of restricted stock units vesting annually beginning on second anniversary of grant date | ' | ' | 25.00% | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of RSUs cliff vest | ' | ' | 15,228 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average term | ' | '2 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of outstanding shares | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchased and retired under stock buyback program | ' | 97,153 | 0 | 51,883 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cost of shares purchased | ' | $708 | ' | $239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average price paid per share | ' | $7.28 | ' | $4.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Stock_Gran
Stockholders' Equity - Stock Granted to Non-employee Directors (Detail) (Director [Member], USD $) | 1 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Feb. 29, 2012 | Jul. 31, 2011 | Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Director [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares | 16,587 | 29,205 | 16,328 | 31,820 | 25,632 | 51,642 | 45,792 | 48,148 | 77,274 |
Fair Value per Share | $8.44 | $7.55 | $8.36 | $6.60 | $5.54 | $4.11 | ' | ' | ' |
Fair Value of Grant | $140 | $221 | $136 | $210 | $142 | $212 | $361 | $346 | $354 |
Stockholders_Equity_Restricted
Stockholders' Equity - Restricted Stock Units Activity (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | 24 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of RSUs - Beginning Balance | 98,575 | 66,562 | 33,518 | ' | 66,562 |
Number of RSUs - Granted | 45,316 | 40,393 | 33,044 | ' | ' |
Number of RSUs - Vested | -16,640 | -8,380 | ' | ' | ' |
Number of RSUs- Ending Balance | 127,251 | 98,575 | 66,562 | 33,518 | 127,251 |
Grant Date Fair Value Per Share, Granted | $7.55 | $6.60 | $4.11 | $3.15 | ' |
Grant Date Fair Value Per Share, Vested | ' | ' | ' | ' | ' |
Grant Date Fair Value - Granted | $342 | $266 | $136 | ' | ' |
Grant Date Fair Value - Vested | ' | ' | ' | ' | 182 |
Grant Date Fair Value - Unvested RSUs | 850 | ' | ' | 106 | 850 |
Vested | $125 | $57 | ' | ' | ' |
Stockholders_Equity_Restricted1
Stockholders' Equity - Restricted Stock Units Activity (Parenthetical) (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Fair value of unvested RSUs | $1.10 |
Weighted average life of unvested RSUs | '2 years 3 months 26 days |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Equity [Abstract] | ' | ' | ' |
Stock option activity, Shares, Beginning Balance | 818,028 | 908,028 | 433,028 |
Stock option activity, Lower limit, Exercised Price per Share | $1.59 | ' | ' |
Stock options exercised | -150,000 | ' | ' |
Weighted-Average Exercise Price, Exercised | $1.59 | ' | ' |
Stock option activity, Expired | -235,000 | -90,000 | ' |
Stock option activity, Shares, Ending Balance | 433,028 | 818,028 | 433,028 |
Stock option activity, Lower limit, Outstanding Price per Share, Beginning Balance | $1.59 | $1.59 | $2.30 |
Stock option activity, Upper limit, Outstanding Price per Share, Beginning Balance | $6.70 | $13.10 | $5.85 |
Stock option activity, Upper limit, Expired Price per Share | $6.70 | $13.10 | ' |
Stock option activity, Lower limit, Outstanding Price per Share, Ending Balance | $2.30 | $1.59 | $2.30 |
Stock option activity, Upper limit, Outstanding Price per Share, Ending Balance | $5.85 | $6.70 | $5.85 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $4.19 | $5.07 | $3.72 |
Weighted-Average Exercise Price, Expired | $6.70 | $13.10 | ' |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $3.72 | $4.19 | $3.72 |
Stockholders_Equity_Stock_Opti1
Stockholders' Equity - Stock Option Activity (Parenthetical) (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares, Outstanding | ' | 368,347 | 268,072 | 520,872 |
Shares vest over Period | '5 years | '5 years | ' | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Intrinsic value of the options | ' | ' | 755,000 | ' |
Options exercised | ' | 0 | ' | 0 |
Stockholders_Equity_Outstandin
Stockholders' Equity - Outstanding Stock Options (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise Price | $5.77 |
Shares, Outstanding | 31,923 |
Weighted-Average Life (Years), Outstanding | '3 years 2 months 1 day |
Intrinsic Values, Outstanding | $89 |
Weighted-Average Exercise Price, Exercisable | $5.77 |
Shares, Exercisable | 31,923 |
Weighted-Average Life (Years), Exercisable | '3 years 2 months 1 day |
Intrinsic Values Exercisable, at stock option plan exercise price | 89 |
Stock Options Two [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise Price | $5.85 |
Shares, Outstanding | 142,382 |
Weighted-Average Life (Years), Outstanding | '4 years 29 days |
Intrinsic Values, Outstanding | 384 |
Weighted-Average Exercise Price, Exercisable | $5.85 |
Shares, Exercisable | 142,382 |
Weighted-Average Life (Years), Exercisable | '4 years 29 days |
Intrinsic Values Exercisable, at stock option plan exercise price | 384 |
Stock Options Three [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise Price | $2.30 |
Shares, Outstanding | 258,723 |
Weighted-Average Life (Years), Outstanding | '5 years 2 months 1 day |
Intrinsic Values, Outstanding | 1,617 |
Weighted-Average Exercise Price, Exercisable | $2.30 |
Shares, Exercisable | 194,042 |
Weighted-Average Life (Years), Exercisable | '5 years 2 months 1 day |
Intrinsic Values Exercisable, at stock option plan exercise price | 1,213 |
Stock Options Four [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise Price | ' |
Shares, Outstanding | 433,028 |
Weighted-Average Life (Years), Outstanding | '4 years 7 months 28 days |
Intrinsic Values, Outstanding | 2,090 |
Weighted-Average Exercise Price, Exercisable | $3.97 |
Shares, Exercisable | 368,347 |
Weighted-Average Life (Years), Exercisable | '4 years 6 months 29 days |
Intrinsic Values Exercisable, at stock option plan exercise price | $1,686 |
Stockholders_Equity_Stock_Comp
Stockholders' Equity - Stock Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Compensation expense - Options | $232 | $191 | $138 |
Unrecognized Compensation Cost as of December 31, 2013,total | 478 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Compensation expense - Options | 199 | 109 | 46 |
Unrecognized Compensation Cost | 476 | ' | ' |
Employee Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Compensation expense - Options | 33 | 82 | 92 |
Unrecognized Compensation Cost as of December 31, 2013 | $2 | ' | ' |
Stockholders_Equity_Reserved_S
Stockholders' Equity - Reserved Shares of Common Stock (Detail) | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Reserved for future grants under 2012 Equity Incentive Plans | 613,183 |
Reserved shares of common stock for issuance | 1,259,683 |
Warrant [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Reserved shares of common stock for issuance | 86,221 |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Reserved shares of common stock for issuance | 433,028 |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Reserved shares of common stock for issuance | 127,251 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $8,216 | $5,545 | $789 |
State | 2,065 | 1,544 | 1,133 |
Current, Total | 10,281 | 7,089 | 1,922 |
Deferred: | ' | ' | ' |
Federal | -3,129 | -821 | 3,994 |
State | -592 | -253 | -288 |
Deferred, Total | -3,721 | -1,074 | 3,706 |
Total | $6,560 | $6,015 | $5,628 |
Income_Taxes_Components_of_the
Income Taxes - Components of the Net Deferred Tax Liability (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for credit losses | $6,152 | $5,615 |
Depreciation and amortization | 32,709 | 29,717 |
State NOL and other state attributes | 62 | 251 |
State valuation allowance | -205 | -355 |
Total deferred tax assets | 38,718 | 35,228 |
Deferred tax liabilities: | ' | ' |
Lease receivable and unearned income | -35,758 | -35,539 |
Residual value | -9,228 | -9,670 |
Initial direct costs | -410 | -418 |
Total deferred tax liabilities | -45,396 | -45,627 |
Net deferred tax liability | ($6,678) | ($10,399) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' |
Nondeductible expenses and other tax rate | 0.60% | -0.61% | 0.54% |
Liability for accrued interest | $0 | $52,000 | $17,000 |
Impact of effective tax rate for state income taxes | ' | 30,000 | 10,000 |
Federal tax benefit for state income taxes | 0 | 22,000 | 4,000 |
Liability for accrued penalties | ' | 11,000 | 4,000 |
Change in total amount of unrecognized tax benefits | 'may change significantly within the next 12 months | ' | ' |
Federal [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating loss carry-forwards | 0 | 0 | ' |
Income tax years | 'tax years ended on or after December 31, 2009 | ' | ' |
State [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating loss carry-forwards | $2,100,000 | ' | ' |
Income tax years | 'tax years ended on or after December 31, 2010 | ' | ' |
State [Member] | Minimum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
State NOL's restrictions and expire period | '1 year | ' | ' |
State [Member] | Maximum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
State NOL's restrictions and expire period | '20 years | ' | ' |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 5.19% | 4.80% | 3.03% |
State valuation allowance | -0.60% | -0.06% | -0.07% |
Nondeductible expenses and other | 0.60% | -0.61% | 0.54% |
Effective income tax rate | 40.19% | 39.13% | 38.50% |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Beginning Balance | $63 | $21 | $21 |
Additions for tax positions related to current year | 26 | 63 | 21 |
Reductions for tax positions as a result of lapse of statute of limitations | ' | -21 | -21 |
Reductions for tax positions as a result of closed examinations | -89 | ' | ' |
Ending Balance | ' | $63 | $21 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 20, 2010 | Dec. 31, 2013 | Nov. 07, 2012 | Mar. 25, 2011 | |
Agreement | Massachusetts [Member] | Massachusetts [Member] | California [Member] | California [Member] | California [Member] | |||
sqft | sqft | sqft | ||||||
Commitment And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of leased office space | ' | ' | ' | ' | 23,834 | ' | ' | 2,667 |
Lease expiration | ' | ' | ' | '2017 | ' | ' | ' | ' |
Office lease agreement date | ' | ' | ' | ' | 20-Sep-10 | ' | ' | 25-Mar-11 |
Additional amount of leased office space | ' | ' | ' | ' | ' | ' | 2,319 | ' |
Amended lease period | ' | ' | ' | ' | ' | '64 months | ' | ' |
Number of lease agreements | 2 | ' | ' | ' | ' | ' | ' | ' |
Rental expense under operating leases | $663,000 | $617,000 | $610,000 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $712 |
2015 | 728 |
2016 | 744 |
2017 | 760 |
2018 | 421 |
Total | $3,365 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Defined contribution plan contribution by employee percentage maximum | 100.00% | ' | ' |
Employees contributions | $1 | ' | ' |
Matching contribution by company for each dollar contributed by employee under the plan | 0.5 | ' | ' |
Percentage of salary contributions for employee, maximum | 6.00% | ' | ' |
Percentage of maximum match | 3.00% | ' | ' |
Period of Vesting of contributions | '5 years | ' | ' |
Percentage of Vesting of contributions | 20.00% | ' | ' |
Defined contribution plan expenses | $122,000 | $125,000 | $106,000 |
Concentration_of_Credit_Risk_A
Concentration of Credit Risk - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentration Risk [Line Items] | ' | ' | ' |
Number of states with service leases and rental contracts | 50 | ' | ' |
Top Dealer [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 13.80% | 4.40% | 3.30% |
Maximum [Member] | All Other States [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 5.00% | ' | ' |
Finance Leases Portfolio Segment [Member] | Maximum [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 10.00% | ' | ' |
Finance Leases Portfolio Segment [Member] | Time Payment Corp [Member] | Water Filtration System [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 25.00% | ' | ' |
Concentration_of_Credit_Risk_S
Concentration of Credit Risk - Summary of Concentration of Lease in Certain States (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Florida [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 13.00% | 13.00% | 13.00% |
California [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 12.00% | 12.00% | 11.00% |
Texas [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 9.00% | 8.00% | 8.00% |
New York [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk benchmark percentage | 8.00% | 8.00% | 9.00% |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 10, 2010 | Jan. 14, 2014 | Mar. 31, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Dividends declared per common share | $0.25 | $0.24 | $0.21 | ' | $0.07 | ' |
Expected dividend payment date | ' | ' | ' | ' | 14-Feb-14 | ' |
Expected dividend record date | ' | ' | ' | ' | 30-Jan-14 | ' |
Shares repurchased, total | ' | ' | ' | ' | ' | 66,552 |
Average price of common stock per share | ' | ' | ' | ' | ' | $8.07 |
Total cost of the shares purchased | ' | ' | ' | ' | ' | $537,000 |
Shares repurchased | ' | ' | ' | 250,000 | ' | 250,000 |