Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Mar. 10, 2014 | Jun. 29, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'APPLIANCE RECYCLING CENTERS OF AMERICA INC /MN | ' | ' |
Entity Central Index Key | '0000862861 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 5,580,927 | ' |
Entity Well Known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $12.20 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $1,948 | $3,174 | ||
Accounts receivable, net of allowance of $27 and $8, respectively | 12,278 | 6,256 | ||
Inventories, net of reserves of $175 and $682, respectively | 16,654 | 17,274 | ||
Income taxes receivable | 82 | 522 | ||
Other current assets | 622 | 1,332 | ||
Deferred income tax assets | 523 | 0 | ||
Total current assets | 32,107 | 28,558 | ||
Property and equipment, net | 11,424 | 12,248 | ||
Restricted cash | 500 | 0 | ||
Other assets | 927 | 973 | ||
Deferred income tax assets | 21 | 25 | ||
Total assets | 44,979 | [1] | 41,804 | [1] |
Current liabilities: | ' | ' | ||
Accounts payable | 5,880 | 4,957 | ||
Accrued expenses | 4,806 | 4,310 | ||
Line of credit | 9,661 | 10,559 | ||
Current maturities of long-term obligations | 1,131 | 955 | ||
Deferred Income tax liabilities | 0 | 146 | ||
Total current liabilities | 21,478 | 20,927 | ||
Long-term obligations, less current maturities | 5,447 | 6,357 | ||
Deferred gain, net of current portion | 0 | 365 | ||
Deferred tax income liabilities | 1,092 | 921 | ||
Total liabilities | 28,017 | 28,570 | ||
Commitments and contingencies | 0 | 0 | ||
Shareholders' equity: | ' | ' | ||
Common Stock, no par value; 10,000 shares authorized; issued and outstanding: 5,571 shares and 5,556 shares, respectively | 20,846 | 20,577 | ||
Accumulated deficit | -5,331 | -8,649 | ||
Accumulated other comprehensive loss | -464 | -290 | ||
Total shareholders' equity | 15,051 | 11,638 | ||
Noncontrolling interest | 1,911 | 1,596 | ||
Total equity | 16,962 | 13,234 | ||
Total liabilities and shareholders' equity | $44,979 | $41,804 | ||
[1] | Assets of ARCA Advanced Processing, LLC (AAP), the consolidated variable interest entity (VIE), that can only be used to settle obligations of AAP were $9,949 and $10,045 as of December 28, 2013, and December 29, 2012, respectively. Liabilities of AAP for which creditors do not have recourse to the general credit of Appliance Recycling Centers of America, Inc. were $1,874 and $1,948 as of December 28, 2013, and December 29, 2012, respectively. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Accounts receivable, allowance | $27 | $8 |
Inventories, reserves | 175 | 682 |
Common Stock, shares authorized (in shares) | 10,000 | 10,000 |
Common Stock, issued shares (in shares) | 5,571 | 5,556 |
Common Stock, outstanding shares (in shares) | 5,571 | 5,556 |
Assets of the consolidated variable interest entity | 9,949 | 10,045 |
Liabilities of the consolidated variable interest entity | $1,874 | $1,948 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Revenues: | ' | ' |
Retail | $68,556 | $71,234 |
Recycling | 42,185 | 25,280 |
Byproduct | 18,320 | 17,721 |
Total revenues | 129,061 | 114,235 |
Costs of revenues | 95,187 | 84,915 |
Gross profit | 33,874 | 29,320 |
Selling, general and administrative expenses | 29,295 | 31,460 |
Impairment charge | 0 | 1,082 |
Operating income (loss) | 4,579 | -3,222 |
Other expense: | ' | ' |
Interest expense, net | -1,194 | -1,139 |
Other expense, net | -90 | -12 |
Income (loss) before income taxes and noncontrolling interest | 3,295 | -4,373 |
Provision for income taxes | -338 | 83 |
Net income (loss) | 3,633 | -4,456 |
Net (income) loss attributable to noncontrolling interest | -315 | 604 |
Net income (loss) attributable to controlling interest | 3,318 | -3,852 |
Income (loss) per common share: | ' | ' |
Basic (in dollars per share) | $0.60 | ($0.69) |
Diluted (in dollars per share) | $0.58 | ($0.69) |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 5,562 | 5,551 |
Diluted (in shares) | 5,742 | 5,551 |
Net income (loss) | 3,633 | -4,456 |
Other comprehensive income (loss), net of tax: | ' | ' |
Effect of foreign currency translation adjustments | -174 | 71 |
Total other comprehensive income (loss), net of tax | -174 | 71 |
Comprehensive income (loss) | 3,459 | -4,385 |
Comprehensive loss (income) attributable to noncontrolling interest | -315 | 604 |
Comprehensive income (loss) attributable to controlling interest | $3,144 | ($3,781) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (USD $) | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] |
In Thousands | |||||
Balance, Stockholders Equity at Dec. 31, 2011 | ' | ' | ' | ' | ' |
Net income (loss) | ($4,456) | ' | ' | ($3,852) | ($604) |
Other comprehensive income, net of tax | 71 | ' | 71 | ' | ' |
Issuance of Common Stock (in Shares) | ' | 29 | ' | ' | ' |
Issuance of Common Stock | 86 | 86 | ' | ' | ' |
Share-based compensation | 153 | 153 | ' | ' | ' |
Excess tax benefits related to share-based compensation | 994 | ' | ' | ' | ' |
Balance, Stockholders Equity at Dec. 29, 2012 | 13,234 | 20,577 | -290 | -8,649 | 1,596 |
Balance, Common Stock in Shares at Dec. 29, 2012 | 5,556 | 5,556 | ' | ' | ' |
Net income (loss) | 3,633 | ' | ' | 3,318 | 315 |
Other comprehensive income, net of tax | -174 | ' | -174 | ' | ' |
Issuance of Common Stock (in Shares) | ' | 15 | ' | ' | ' |
Issuance of Common Stock | 36 | 36 | ' | ' | ' |
Share-based compensation | 233 | 233 | ' | ' | ' |
Balance, Stockholders Equity at Dec. 28, 2013 | $16,962 | $20,846 | ($464) | ($5,331) | $1,911 |
Balance, Common Stock in Shares at Dec. 28, 2013 | 5,571 | 5,571 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Operating activities | ' | ' |
Net income (loss) | $3,633 | ($4,456) |
Adjustments to reconcile net income (loss) to net cash and cash equivalents (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 1,369 | 1,221 |
Impairment charge | 0 | 1,082 |
Share-based compensation | 233 | 153 |
Amortization of deferred financing costs | 131 | 197 |
Amortization of deferred gain | -488 | -488 |
Reversal of deferred income tax valuation allowance | -1,200 | 0 |
Deferred income taxes | 703 | 367 |
Other | 83 | 38 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -6,018 | 1,178 |
Inventories | 620 | 1,182 |
Income taxes receivable | 440 | -130 |
Other current assets | 711 | -304 |
Other assets | -34 | 20 |
Accounts payable and accrued expenses | 1,557 | 491 |
Net cash flows provided by operating activities | 1,740 | 551 |
Investing activities | ' | ' |
Purchases of property and equipment | -501 | -818 |
Decrease (increase) in restricted cash | -500 | 0 |
Proceeds from sale of property and equipment | 10 | ' |
Net cash flows used in investing activities | -991 | -818 |
Financing activities | ' | ' |
Net borrowings (payments) under line of credit | -898 | -126 |
Payments on debt obligations | -1,032 | -990 |
Proceeds from issuance of debt obligations | 220 | 0 |
Payment of deferred financing costs | -129 | 0 |
Proceeds from issuance of Common Stock | 36 | 86 |
Net cash flows (used in) provided by financing activities | -1,803 | -1,030 |
Effect of changes in exchange rate on cash and cash equivalents | -172 | 70 |
Increase (decrease) in cash and cash equivalents | -1,226 | -1,227 |
Cash and cash equivalents at beginning of period | 3,174 | ' |
Cash and cash equivalents at end of period | 1,948 | 3,174 |
Supplemental disclosures of cash flow information | ' | ' |
Cash payments for interest | 966 | 935 |
Cash payments (refunds) for income taxes | -274 | -154 |
Non-cash investing and financing activities | ' | ' |
Equipment acquired under financing obligations and capital leases | 78 | 159 |
Repayment of debt from trade-in of equipment | $0 | $87 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Fiscal Period, Policy [Policy Text Block] | ' |
Fiscal year: We report on a 52- or 53-week fiscal year. Our 2013 fiscal year (“2013”) ended on December 28, 2013, and included 52 weeks. Our 2012 fiscal year (“2012”) ended on December 29, 2012, and included 52 weeks. | |
Nature of Business and Basis of Presentation | ' |
Nature of Business and Basis of Presentation | |
Nature of business: Appliance Recycling Centers of America, Inc. and subsidiaries (“we,” the “Company” or “ARCA”) are in the business of providing turnkey appliance recycling and replacement services for electric utilities and other sponsors of energy efficiency programs. We also sell new major household appliances through a chain of Company-owned stores under the name ApplianceSmart®. In addition, we have a 50% interest in a joint venture operating under the name ARCA Advanced Processing, LLC (“AAP”), which recycles appliances from twelve states in the Northeast and Mid-Atlantic regions of the United States for General Electric Company (“GE”) acting through its GE Appliances business component. These appliances include units manufactured by GE as well as by other manufacturers. | |
Principles of consolidation: The consolidated financial statements include the accounts of Appliance Recycling Centers of America, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
ApplianceSmart, Inc., a Minnesota corporation, is a wholly owned subsidiary that was formed through a corporate reorganization in July 2011 to hold our business of selling new major household appliances through a chain of Company-owned retail stores. ARCA Canada Inc., a Canadian corporation, is a wholly owned subsidiary that was formed in September 2006 to provide turnkey recycling services for electric utility energy efficiency programs. ARCA Recycling, Inc., a California corporation, is a wholly owned subsidiary that was formed in November 1991 to provide turnkey recycling services for electric utility efficiency programs. The operating results of our wholly owned subsidiaries are consolidated in our financial statements. | |
AAP is a joint venture that was formed in October 2009 between ARCA and 4301 Operations, LLC (“4301”) to support ARCA’s agreement, as amended, with GE acting through its GE Appliances business component. Both ARCA and 4301 have a 50% interest in AAP. GE sells its recyclable appliances to ARCA, which collects, processes and recycles the appliances. The agreement requires that ARCA will only recycle, and will not sell for re-use or resale, the recyclable appliances purchased from GE. AAP established a regional processing center in Philadelphia, Pennsylvania, at which the recyclable appliances are processed. The term of the agreement is for six years from the first date of appliance collection, which was March 31, 2010. AAP commenced operations in February 2010 and has the exclusive rights to service the GE agreement as a subcontractor for ARCA. The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have a controlling financial interest in AAP, through our contractual agreement with GE which is material to AAP and we have provided substantially all of the financial support to fund the operations of AAP since its inception. | |
Reclassifications: The consolidated statements of comprehensive income (loss) include the reclassification of prior year revenues, cost of revenues and sales, general and administrative expenses related to AAP to conform with the current year presentation. The reclassification is related primarily to facilities costs and certain other costs not directly related to the production of recycled materials from cost of revenues to sales, general and administrative expenses. | |
Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to estimates and assumptions include the valuation allowances for accounts receivable, inventories and deferred tax assets, accrued expenses, and the assumptions we use to value share-based compensation. Actual results could differ from those estimates. | |
Fair value of financial instruments: The following methods and assumptions are used to estimate the fair value of each class of financial instrument: | |
Cash and cash equivalents, accounts receivable and accounts payable: Due to their nature and short-term maturities, the carrying amounts approximate fair value. | |
Short- and long-term debt: The fair value of short- and long-term debt approximates carrying value and has been estimated based on discounted cash flows using interest rates being offered for similar debt having the same or similar remaining maturities and collateral requirements. | |
No separate comparison of fair values versus carrying values is presented for the aforementioned financial instruments since their fair values are not significantly different than their balance sheet carrying amounts. In addition, the aggregate fair values of the financial instruments would not represent the underlying value of our Company. | |
Fiscal year: We report on a 52- or 53-week fiscal year. Our 2013 fiscal year (“2013”) ended on December 28, 2013, and included 52 weeks. Our 2012 fiscal year (“2012”) ended on December 29, 2012, and included 52 weeks. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Cost of Sales, Policy [Policy Text Block] | ' | |||||||||
Recycling segment cost of revenues: Costs of revenues in our recycling segment are comprised primarily of the following: | ||||||||||
• | Transportation costs, including employee compensation and benefits, related to collecting appliances for recycling and delivering appliances under our replacement programs; | |||||||||
• | Purchase of appliance inventories, including freight to our recycling center warehouses, early payment discounts, and warehousing costs for appliances used in our replacement programs; | |||||||||
• | Cost of recyclable appliances purchased under our GE contract; and | |||||||||
• | Processing costs, including employee compensation and benefits, related to recycling and processing appliances. | |||||||||
Retail segment cost of revenues: Costs of revenues in our retail segment are comprised primarily of the following: | ||||||||||
• | Purchase of appliance inventories, including freight to and from our distribution centers; | |||||||||
• | Shipping, receiving and distribution of appliance inventories to our retail stores, including employee compensation and benefits; | |||||||||
• | Delivery and service of appliances, including employee compensation and benefits, after the appliances are sold to the consumer; | |||||||||
• | Early payment discounts and allowances offered by appliance manufacturers; and | |||||||||
• | Inventory markdowns and shortages. | |||||||||
Significant Accounting Policies | ' | |||||||||
Significant Accounting Policies | ||||||||||
Cash and cash equivalents: We consider all highly liquid investments purchased with original maturity dates of three months or less to be cash equivalents. We maintain our cash in bank deposit and money-market accounts, which, at times, exceed federally insured limits. We have determined that the fair value of the money-market accounts fall within Level 1 of the fair value hierarchy. We have not experienced any losses in such accounts. | ||||||||||
Trade receivables: We carry unsecured trade receivables at the original invoice amount less an estimate made for doubtful accounts based on a monthly review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. We write off trade receivables when we deem them uncollectible. We record recoveries of trade receivables previously written off when we receive them. We consider a trade receivable to be past due if any portion of the receivable balance is outstanding for more than ninety days. We do not charge interest on past due receivables. Our management considers the allowance for doubtful accounts of $27 and $8 to be adequate to cover any exposure to loss as of December 28, 2013, and December 29, 2012, respectively. | ||||||||||
Inventories: Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market and consist of the following as of December 28, 2013, and December 29, 2012: | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Appliances held for resale | $ | 16,449 | $ | 17,768 | ||||||
Processed metals to be sold from recycled appliances | 380 | 188 | ||||||||
Less provision for inventory obsolescence | (175 | ) | (682 | ) | ||||||
$ | 16,654 | $ | 17,274 | |||||||
We provide estimated provisions for the obsolescence of our appliance inventories, including adjustments to market, based on various factors, including the age of such inventory and our management’s assessment of the need for such provisions. We look at historical inventory agings and margin analysis in determining our provision estimate. A revised cost basis is used once a provision for obsolescence is recorded. | ||||||||||
Property and equipment: Property and equipment are stated at cost. We compute depreciation using straight-line method over a range of estimated useful lives from 3 to 30 years. AAP computed depreciation on its URT materials recovery system using a modified-units-of-production method for the fiscal year ended December 29, 2012. On December 30, 2012, AAP changed to the straight-line deprecation method over 15 years on its URT materials recovery system, which increased annual depreciation expense by approximately $250. | ||||||||||
We amortize leasehold improvements on a straight-line basis over the shorter of their estimated useful lives or the underlying lease term. Repair and maintenance costs are charged to operations as incurred. | ||||||||||
Property and equipment consists of the following as of December 28, 2013, and December 29, 2012: | ||||||||||
Useful Life (Years) | December 28, | December 29, | ||||||||
2013 | 2012 | |||||||||
Land | — | $ | 1,140 | $ | 1,140 | |||||
Buildings and improvements | 18-30 | 3,273 | 3,429 | |||||||
Equipment (including computer software) | 15-Mar | 20,561 | 20,158 | |||||||
Projects under construction | — | 63 | 63 | |||||||
25,037 | 24,790 | |||||||||
Less accumulated depreciation and amortization | (13,613 | ) | (12,542 | ) | ||||||
$ | 11,424 | $ | 12,248 | |||||||
Depreciation and amortization expense: Depreciation and amortization expense related to buildings and equipment from our recycling centers is presented in cost of revenues, and depreciation and amortization expense related to buildings and equipment from our ApplianceSmart stores and corporate assets, such as furniture and computers, is presented in selling, general and administrative expenses in the consolidated statements of comprehensive income (loss). Depreciation and amortization expense was $1,289 and $1,141 for fiscal years 2013 and 2012, respectively. Depreciation and amortization included in cost of revenues was $817 and $585 for fiscal years 2013 and 2012, respectively. | ||||||||||
Software development costs: We capitalize software developed for internal use and are amortizing such costs over their estimated useful lives of three years. Costs capitalized were $99 and $135 for fiscal years 2013 and 2012, respectively. Amortization expense on software development costs was $145 and $150 for fiscal years 2013 and 2012, respectively. Estimated future amortization expense is as follows: | ||||||||||
Fiscal year 2014 | $ | 111 | ||||||||
Fiscal year 2015 | 50 | |||||||||
Fiscal year 2016 | 13 | |||||||||
$ | 174 | |||||||||
Impairment of long-lived assets: We evaluate long-lived assets such as property and equipment for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. We assess impairment based on the estimated future net undiscounted cash flows expected to result from the use of the assets, including cash flows from disposition. Should the sum of the expected future net cash flows be less than the carrying value, we recognize an impairment loss at that time. We measure an impairment loss by comparing the amount by which the carrying value exceeds the fair value (estimated discounted future cash flows or appraisal of assets) of the long-lived assets. We recognized no impairment charges during fiscal years 2013 and 2012 related to long-lived assets. | ||||||||||
Restricted cash: Restricted cash consisted of a reserve required by our bankcard processor to cover chargebacks, adjustments, fees and other charges that may be due from us. As of December 28, 2013, we had restricted cash of $500. | ||||||||||
Goodwill: We test goodwill annually for impairment. Additionally, goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of an entity below its carrying value. In assessing the recoverability of goodwill, market values and projections regarding estimated future cash flows and other factors are used to determine the fair value of the respective assets. If these estimates or related projections change in the future, we may be required to record impairment charges for these assets. We allocate goodwill to our two reporting segments, retail and recycling. We compare the fair value of each reporting segment to its carrying amount on an annual basis to determine if there is potential goodwill impairment. If the fair value of a reporting segment is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than the carrying value of its goodwill. To determine the fair value of our reporting segments, we generally use a present value technique (discounted cash flow) corroborated by market multiples when available and as appropriate. The factor most sensitive to change with respect to the discounted cash flow analyses is the estimated future cash flows of each reporting segment, which is, in turn, sensitive to the estimates of future revenue growth and margins for these businesses. If actual revenue growth and/or margins are lower than expectations, the impairment test results could differ. Fair value for goodwill is determined based on discounted cash flows, market multiples or appraised values as appropriate. During the fourth quarter of 2012, AAP determined that indicators of impairment existed that made it more-likely-than-not that the carrying value of the reporting entity exceeded its fair value. The future cash flows generated by AAP were significantly below the original investment model due to a higher level of debt service, delays and uncertainty in monetizing CFCs and declining average American Metal Market (“AMM”) metal prices. As a result of the goodwill impairment test, AAP recorded a $1,082 impairment charge during the fourth quarter of 2012. As of December 28, 2013 and December 29, 2012, we had goodwill of $38 allocated to our recycling segment which is presented as a component of other assets on the consolidated balance sheets. | ||||||||||
Accounting for leases: We conduct the majority of our retail and recycling operations from leased facilities. The majority of our leases require payment of real estate taxes, insurance and common area maintenance in addition to rent. The terms of our lease agreements typically range from five to ten years. Most of the leases contain renewal and escalation clauses, and certain store leases require contingent rents based on factors such as revenue. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between straight-line rent amounts and amounts payable under the leases as part of accrued rent in accrued expenses. Cash or lease incentives (tenant allowances) received upon entering into certain store leases are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. | ||||||||||
Product warranty: We provide a warranty for the replacement or repair of certain defective appliances. Our standard warranty policy requires us to repair or replace certain defective units at no cost to our customers. We estimate the costs that may be incurred under our warranty and record an accrual in the amount of such costs at the time we recognize product revenue. Factors that affect our warranty accrual for covered units include the number of units sold, historical and anticipated rates of warranty claims on these units, and the cost of such claims. We periodically assess the adequacy of our recorded warranty accrual and adjust the amounts as necessary. | ||||||||||
Changes in our warranty accrual, presented as a component of accrued expenses on the consolidated balance sheets, for the fiscal years ended December 28, 2013, and December 29, 2012, are as follows: | ||||||||||
For the fiscal years ended | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Beginning Balance | $ | 47 | $ | 71 | ||||||
Standard accrual based on units sold | 40 | 43 | ||||||||
Actual costs incurred | (16 | ) | (16 | ) | ||||||
Periodic accrual adjustments | (37 | ) | (51 | ) | ||||||
Ending Balance | $ | 34 | $ | 47 | ||||||
Income taxes: We account for income taxes under the liability method. Deferred tax liabilities are recognized for temporary differences that will result in taxable amounts in future years. Deferred tax assets are recognized for deductible temporary differences and tax operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and record a valuation allowance to reduce our deferred tax assets to the amounts we believe to be realizable. We regularly evaluate both positive and negative evidence related to either recording or retaining a valuation allowance against our deferred tax assets. | ||||||||||
Share-based compensation: We recognize share-based compensation expense on a straight-line basis over the vesting period for all share-based awards granted. We use the Black-Scholes option pricing model to determine the fair value of awards at the grant date. We calculate the expected volatility for stock options and awards using historical volatility. We estimate a 0%-5% forfeiture rate for stock options issued to employees and Board of Directors members, but will continue to review these estimates in future periods. The risk-free rates for the expected terms of the stock options are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life represents the period that the stock option awards are expected to be outstanding. The expected dividend yield is zero as we have not paid or declared any cash dividends on our Common Stock. Based on these valuations, we recognized share-based compensation expense of $233 and $153 for fiscal years 2013 and 2012, respectively. | ||||||||||
Based on the value of options outstanding as of December 28, 2013, estimated future share-based compensation expense is as follows: | ||||||||||
Fiscal year 2014 | $ | 159 | ||||||||
Fiscal year 2015 | 97 | |||||||||
Fiscal year 2016 | 19 | |||||||||
$ | 275 | |||||||||
The estimate above does not include any expense for additional options that may be granted and vest during 2014, 2015 and 2016. | ||||||||||
Comprehensive income (loss): Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income (loss) but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to shareholders’ equity. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments. | ||||||||||
Revenue recognition: We recognize revenue from appliance sales in the period the consumer purchases and pays for the appliance, net of an allowance for estimated returns. We recognize revenue from appliance recycling when we collect and process a unit. We recognize revenue generated from appliance replacement programs when we deliver the new appliance and collect and process the old appliance. The delivery, collection and processing activities under our replacement programs typically occur within one business day and are required to complete the earnings process; there are no other performance obligations. We recognize byproduct revenue upon shipment. We recognize revenue on extended warranties with retained service obligations on a straight-line basis over the period of the warranty. On extended warranty arrangements that we sell but others service for a fixed portion of the warranty sales price, we recognize revenue for the net amount retained at the time of sale of the extended warranty to the consumer. As a result of our recycling processes, we are able to produce carbon offsets from the destruction of certain types of ozone-depleting refrigerants. We record revenue from the sale of carbon offsets in the period when all of the following requirements have been met: (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title, ownership and risk of loss associated with the credits have been transferred to the customer, and (iv) collectability is reasonably assured. These requirements are met upon collection of cash due to the uncertainty around collectability and the involvement of various third parties and partners. We include shipping and handling charges to customers in revenue, which are recognized in the period the consumer purchases and pays for delivery. | ||||||||||
Retail segment cost of revenues: Costs of revenues in our retail segment are comprised primarily of the following: | ||||||||||
• | Purchase of appliance inventories, including freight to and from our distribution centers; | |||||||||
• | Shipping, receiving and distribution of appliance inventories to our retail stores, including employee compensation and benefits; | |||||||||
• | Delivery and service of appliances, including employee compensation and benefits, after the appliances are sold to the consumer; | |||||||||
• | Early payment discounts and allowances offered by appliance manufacturers; and | |||||||||
• | Inventory markdowns and shortages. | |||||||||
Recycling segment cost of revenues: Costs of revenues in our recycling segment are comprised primarily of the following: | ||||||||||
• | Transportation costs, including employee compensation and benefits, related to collecting appliances for recycling and delivering appliances under our replacement programs; | |||||||||
• | Purchase of appliance inventories, including freight to our recycling center warehouses, early payment discounts, and warehousing costs for appliances used in our replacement programs; | |||||||||
• | Cost of recyclable appliances purchased under our GE contract; and | |||||||||
• | Processing costs, including employee compensation and benefits, related to recycling and processing appliances. | |||||||||
Selling, general and administrative expenses: Selling, general and administrative expenses are comprised primarily of the following: | ||||||||||
• | Employee compensation and benefits related to management, corporate services, and retail sales; | |||||||||
• | Outside and outsourced corporate service fees; | |||||||||
• | Occupancy costs related to our retail stores and corporate office; | |||||||||
• | Advertising costs; | |||||||||
• | Bank charges and costs associated with credit and debit card interchange fees; and | |||||||||
• | Other administrative costs, such as supplies, travel and lodging. | |||||||||
Advertising expense: Our policy is to expense advertising costs as incurred. Advertising expense was $2,092 and $2,238 for fiscal years 2013 and 2012, respectively. | ||||||||||
Taxes collected from customers: We account for taxes collected from customers on a net basis. | ||||||||||
Basic and diluted income (loss) per common share: Basic income (loss) per common share is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of Common Stock include unexercised stock options and warrants. Basic per share amounts are computed, generally, by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted per share amounts assume the conversion, exercise or issuance of all potential Common Stock instruments unless their effect is anti-dilutive, thereby reducing the loss or increasing the income per common share. In calculating diluted weighted average shares and per share amounts, we included stock options with exercise prices below average market prices, for the respective fiscal years in which they were dilutive, using the Treasury stock method. We calculated the number of additional shares by assuming the outstanding stock options were exercised and that the proceeds from such exercises were used to acquire Common Stock at the average market price during the year. For fiscal year 2013, we excluded 452 options and warrants from the diluted weighted average share outstanding calculation as the effect of these options and warrants is anti-dilutive. For fiscal year 2012, we excluded 795 options and warrants from the diluted weighted average share outstanding calculation as the effect of these options and warrants is anti-dilutive due to the net loss incurred. | ||||||||||
A reconciliation of the denominator in the basic and diluted income or loss per share is as follows: | ||||||||||
For the fiscal year ended | ||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||
Numerator: | ||||||||||
Net income (loss) attributable to controlling interest | $ | 3,318 | $ | (3,852 | ) | |||||
Denominator: | ||||||||||
Weighted average common shares outstanding - basic | 5,562 | 5,551 | ||||||||
Employee stock options | 7 | — | ||||||||
Stock warrants | 173 | — | ||||||||
Weighted average common shares outstanding - diluted | 5,742 | 5,551 | ||||||||
Income (loss) per common share: | ||||||||||
Basic | $ | 0.6 | $ | (0.69 | ) | |||||
Diluted | $ | 0.58 | $ | (0.69 | ) | |||||
SaleLeaseback_Transaction
Sale-Leaseback Transaction | 12 Months Ended |
Dec. 28, 2013 | |
Sale-Leaseback Transaction [Abstract] | ' |
Sale Leaseback Transaction Disclosure [Text Block] | ' |
Sale-Leaseback Transaction | |
On September 25, 2009, we completed the sale-leaseback of our St. Louis Park, Minnesota, building. The building is a 126,458-square-foot facility that includes our corporate offices, a processing and recycling center, and an ApplianceSmart retail store. Pursuant to the agreement entered into on August 11, 2009, we sold the St. Louis Park building for $4,627, net of fees, and leased the building back over an initial lease term of five years. The sale of the building provided the Company with $2,032 in cash after repayment of the $2,595 mortgage. The sale-leaseback transaction resulted in an adjustment of $2,191 to the net book value related to the land and building, and we recorded a deferred gain of $2,436. Under the terms of the lease agreement, we are classifying the lease as an operating lease and amortizing the gain on a straight-line basis over five years. For both fiscal years 2013 and 2012, we amortized $488 of the deferred gain. The deferred gain amortization is netted against rent expense as a component of selling, general and administrative expenses in the consolidated statements of comprehensive income (loss). |
Variable_Interest_Entity
Variable Interest Entity | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Variable Interest Entity | ' | |||||||
Variable Interest Entity | ' | |||||||
Variable Interest Entity | ||||||||
The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have a controlling financial interest in AAP through our contractual agreement with GE, which is material to AAP, and we have provided substantially all of the financial support to fund the operations of AAP since its inception. The financial position and results of operations for AAP are reported in our recycling segment. | ||||||||
The following table summarizes the assets and liabilities of AAP as of December 28, 2013, and December 29, 2012: | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Assets | ||||||||
Current assets | $ | 1,099 | $ | 787 | ||||
Property and equipment, net | 8,713 | 9,109 | ||||||
Other assets | 137 | 149 | ||||||
Total assets | $ | 9,949 | $ | 10,045 | ||||
Liabilities | ||||||||
Accounts payable | $ | 861 | $ | 826 | ||||
Accrued expenses | 202 | 204 | ||||||
Current maturities of long-term debt obligations | 797 | 635 | ||||||
Long-term debt obligations, net of current maturities | 3,796 | 4,437 | ||||||
Other liabilities (a) | 469 | 749 | ||||||
Total liabilities | $ | 6,125 | $ | 6,851 | ||||
(a) Other liabilities represent outstanding loans from ARCA and are eliminated in consolidation. | ||||||||
The following table summarizes the operating results of AAP for fiscal years 2013 and 2012: | ||||||||
For the fiscal years ended | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Revenues | $ | 11,833 | $ | 11,163 | ||||
Gross profit | 2,766 | 1,948 | ||||||
Operating income (loss) (b) | 956 | (847 | ) | |||||
(b) The operating loss reported in fiscal year 2012 includes a $1,082 goodwill impairment charge. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets as of December 28, 2013, and December 29, 2012, consist of the following: | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Deposits | $ | 411 | $ | 376 | ||||
Recycling contract, net | 179 | 259 | ||||||
Deferred financing costs, net | 278 | 279 | ||||||
Patent costs | 21 | 21 | ||||||
Goodwill | 38 | 38 | ||||||
$ | 927 | $ | 973 | |||||
For both fiscal years 2013 and 2012, we recorded amortization expense of $80 related to our recycling contract. For fiscal years 2013 and 2012, we recorded non-cash interest expense of $131 and $197, respectively, related to deferred financing costs. | ||||||||
Estimated future amortization expense over the remaining life of our recycling contract is as follows: | ||||||||
Fiscal year 2014 | $ | 80 | ||||||
Fiscal year 2015 | 80 | |||||||
Fiscal year 2016 | 19 | |||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses | ' | |||||||
Accrued Expenses | ||||||||
Accrued expenses as of December 28, 2013, and December 29, 2012, consist of the following: | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Compensation and benefits | $ | 1,317 | $ | 963 | ||||
Accrued rebate and incentive checks | 461 | 563 | ||||||
Accrued rent | 1,121 | 1,383 | ||||||
Warranty expense | 34 | 47 | ||||||
Accrued payables | 437 | 307 | ||||||
Current portion of deferred gain on sale-leaseback of building | 365 | 487 | ||||||
Deferred revenue | 346 | 157 | ||||||
Other | 725 | 403 | ||||||
$ | 4,806 | $ | 4,310 | |||||
Line_of_Credit
Line of Credit | 12 Months Ended | |
Dec. 28, 2013 | ||
Line of Credit Facility [Abstract] | ' | |
Line of Credit | ' | |
Line of Credit | ||
On January 24, 2011, we entered into a Revolving Credit, Term Loan and Security Agreement, as amended, (“Revolving Credit Agreement”) with PNC Bank, National Association (“PNC”) that provides us with a $15,000 revolving line of credit. See Note 8 for further discussion regarding the Term Loan entered into with PNC. The Revolving Credit Agreement has a stated maturity date of January 24, 2016, if not renewed. The Revolving Credit Agreement includes a lockbox agreement and a subjective acceleration clause and, as a result, we have classified the revolving line of credit as a current liability. The Revolving Credit Agreement is collateralized by a security interest in substantially all of our assets, and PNC is also secured by an inventory repurchase agreement with Whirlpool Corporation for Whirlpool purchases only. We also issued a $750 letter of credit in favor of Whirlpool Corporation. The Revolving Credit Agreement requires, starting with the fiscal quarter ending March 30, 2014, and continuing at the end of each quarter thereafter, that we meet a minimum fixed charge coverage ratio of 1.1 to 1.0, measured on a trailing twelve-month basis. The Revolving Credit Agreement limits investments we can purchase, the amount of other debt and leases we can incur, the amount of loans we can issue to our affiliates and the amount we can spend on fixed assets, along with prohibiting the payment of dividends. As of December 28, 2013, we were in compliance with all the covenants of the Revolving Credit Agreement. As of December 29, 2012, we were not in compliance with all the covenants of the Revolving Credit Agreement and received a notice of default from PNC. On March 14, 2013, we received a waiver of the events of default from PNC. | ||
The interest rate on the revolving line of credit is PNC Base Rate plus 1.75%, or 1-, 2- or 3-month PNC LIBOR Rate plus 2.75%. The PNC Base Rate shall mean, for any day, a fluctuating per annum rate of interest equal to the highest of (i) the interest rate per annum announced from time to time by PNC at its prime rate, (ii) the Federal Funds Open Rate plus 0.5%, and (iii) the one-month LIBOR rate plus 1%. As of December 28, 2013, and December 29, 2012, the weighted average interest rate was 4.27% and 3.07%, respectively, which included both PNC LIBOR Rate and PNC Base Rate loans, and the outstanding balance under the Revolving Credit Agreement was $9,661 and $10,559, respectively. The amount of revolving borrowings under the Revolving Credit Agreement is based on a formula using accounts receivable and inventories. We may not have access to the full $15,000 revolving line of credit due to the formula using accounts receivable and inventories, the amount of the letter of credit issued in favor of Whirlpool Corporation and the amount of outstanding loans between PNC and our AAP joint venture. As of December 28, 2013, and December 29, 2012, our available borrowing capacity under the Revolving Credit Agreement was $3,966 and $2,531, respectively. | ||
On March 14, 2013, we executed the third amendment to the Revolving Credit Agreement that extended the agreement from January 24, 2014, until January 24, 2016, waived our prior “events of default,” reset our financial covenants and increased our interest rate, among other things. The material amended terms under the Revolving Credit Agreement are as follows: | ||
• | We were required to monthly minimum EBITDA thresholds set forth in the amendment through 2013. | |
• | The affiliate loan balance must be reduced by $40 per month in 2013 and the affiliate loan balance will be capped at $300 on January 25, 2014, and thereafter. | |
• | Starting on December 28, 2013, we must meet a minimum fixed charge coverage ratio of 1.1 to 1.0 for the nine months then ended and on a trailing twelve-month basis beginning with the period ending March 30, 2014, and each quarter thereafter. | |
• | The interest rate spread on our Revolving Loan and Term Loan increased 100 basis points for both PNC Base Rate loans and 1-, 2- or 3-month PNC LIBOR Rate loans. We were not eligible to borrow under 1-, 2- or 3-month PNC LIBOR Rate loans until certain interest rate reduction conditions were met as set forth in the amendment, which included meeting all financial covenants during 2013. If these interest rate reduction conditions are met, we will also be able to remove the 100 basis point increase for both PNC Base Rate loans and 1-, 2- or 3-month PNC LIBOR Rate loans. We met the interest rate reduction conditions on January 31, 2014. | |
• | A prepayment penalty will be assessed at 3% during the first year of the third amendment to our Revolving Credit Agreement, 2% during the second year and 1% during the third year. | |
On September 27, 2013, we executed the fourth amendment to the Revolving Credit Agreement. The material amended terms under the Revolving Credit Agreement are as follows: | ||
• | The affiliate loan balance will be held at $469.1 until January 24, 2014, and starting in January 2014 and each month thereafter the affiliate loan balance must be reduced by $14.1 per month until December 31, 2014. The affiliate loan balance will be capped at $300 on December 31, 2014, and thereafter. | |
• | We were eligible to borrow under 1-, 2- or 3-month PNC LIBOR Rate loans on November 1, 2013, if ARCA and AAP received at least $300 in cash related to selling carbon offsets. On October 9, 2013, the combination of ARCA and AAP received $516 in cash related to selling carbon offsets. |
Borrowings
Borrowings | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Borrowings | ' | |||||||||||
Borrowings | ||||||||||||
Long-term debt, capital lease and other financing obligations as of December 28, 2013, and December 29, 2012, consist of the following: | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
PNC term loan | 1,785 | 2,040 | ||||||||||
Susquehanna term loans | 3,783 | 4,154 | ||||||||||
2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 381 | 411 | ||||||||||
10.00% note, due in monthly installments of $10, including interest, due December 2014 | 147 | 280 | ||||||||||
Capital leases and other financing obligations | 482 | 427 | ||||||||||
6,578 | 7,312 | |||||||||||
Less current maturities | 1,131 | 955 | ||||||||||
$ | 5,447 | $ | 6,357 | |||||||||
On January 24, 2011, we entered into a $2,550 term loan (“Term Loan”) with PNC Bank to finance the mortgage on our California facility. The Term Loan is payable as follows, subject to acceleration upon the occurrence of an event of default or termination of the Revolving Credit Agreement: 119 consecutive monthly principal payments of $21 plus interest commencing on February 1, 2011, and continuing on the first day of each month thereafter followed by a 120th payment of all unpaid principal, interest and fees on February 1, 2021. If the Revolving Credit Agreement is not renewed a balloon payment of $1,254 in principal plus interest and additional fees will be due on January 24, 2016. The Term Loan is collateralized with our California facility located in Compton, California. The Term Loan interest rate is PNC Base Rate plus 2.25%, or 1-, 2- or 3-month PNC LIBOR Rate plus 3.25%. As of December 28, 2013, the weighted average interest rate was 4.75%, which included both PNC LIBOR Rate and PNC Base Rate loans. As of December 29, 2012, the interest rate was 5.50%, which included only PNC Base Rate Loans. | ||||||||||||
On March 10, 2011, ARCA Advanced Processing, LLC entered into three separate commercial term loans (“Term Loans”) with Susquehanna Bank, pursuant to the guidelines of the U.S. Small Business Administration 7(a) Loan Program. The total amount of the Term Loans is $4,750, split into three separate loans for $2,100, $1,400 and $1,250. The Term Loans mature in ten years and bear an interest rate of Prime plus 2.75%. As of both December 28, 2013, and December 29, 2012, the interest rate was 6.00%. The total monthly interest and principal payments are $54 and began on July 1, 2011. Borrowings under the Term Loans are secured by substantially all of the assets of AAP along with liens on the business assets and certain personal assets of the owners of 4301 Operations, LLC. We are a guarantor of the Term Loans along with 4301 Operations, LLC and its owners. | ||||||||||||
The future annual maturities of borrowings are as follows: | ||||||||||||
ARCA | AAP | Total | ||||||||||
Fiscal year 2014 | $ | 334 | $ | 797 | $ | 1,131 | ||||||
Fiscal year 2015 | 324 | 536 | 860 | |||||||||
Fiscal year 2016 | 286 | 545 | 831 | |||||||||
Fiscal year 2017 | 269 | 562 | 831 | |||||||||
Fiscal year 2018 | 262 | 580 | 842 | |||||||||
Thereafter | 510 | 1,573 | 2,083 | |||||||||
$ | 1,985 | $ | 4,593 | $ | 6,578 | |||||||
Capital leases and other financing obligations: We acquire certain equipment under capital leases and other financing obligations. The cost of equipment was approximately $2,020 and $1,969 as of December 28, 2013, and December 29, 2012, respectively. Accumulated amortization as of December 28, 2013, and December 29, 2012, was approximately $1,630 and $1,574, respectively. Depreciation and amortization expense for equipment under capital leases and other financing obligations is included in cost of revenues and selling, general and administrative expenses. | ||||||||||||
The following schedule by fiscal year is the approximate remaining minimum payments required under the capital leases and other financing obligations, together with the present value as of December 28, 2013: | ||||||||||||
ARCA | AAP | Total | ||||||||||
Fiscal year 2014 | $ | 91 | $ | 196 | $ | 287 | ||||||
Fiscal year 2015 | 75 | 51 | 126 | |||||||||
Fiscal year 2016 | 32 | 30 | 62 | |||||||||
Fiscal year 2017 | 15 | 15 | 30 | |||||||||
Fiscal year 2018 | 6 | — | 6 | |||||||||
Total minimum lease and other financing obligation payments | 219 | 292 | 511 | |||||||||
Less amount representing interest | 19 | 10 | 29 | |||||||||
Present value of minimum payments | 200 | 282 | 482 | |||||||||
Less current portion | 79 | 190 | 269 | |||||||||
Capital lease and other financing obligations, net of current portion | $ | 121 | $ | 92 | $ | 213 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
Commitments and Contingencies | ||||||||||||
Operating leases: We lease the majority of our retail stores and recycling centers under noncancelable operating leases. The leases typically require the payment of taxes, maintenance, utilities and insurance. | ||||||||||||
Minimum future rental commitments under noncancelable operating leases as of December 28, 2013, are as follows: | ||||||||||||
ARCA | AAP | Total | ||||||||||
Fiscal year 2014 | $ | 4,725 | $ | 253 | $ | 4,978 | ||||||
Fiscal year 2015 | 3,471 | 255 | 3,726 | |||||||||
Fiscal year 2016 | 2,543 | 267 | 2,810 | |||||||||
Fiscal year 2017 | 2,214 | 268 | 2,482 | |||||||||
Fiscal year 2018 | 1,527 | 269 | 1,796 | |||||||||
Thereafter | 846 | 544 | 1,390 | |||||||||
$ | 15,326 | $ | 1,856 | $ | 17,182 | |||||||
Rent expense for fiscal years 2013 and 2012 was $4,838 and $5,313, respectively. We have an agreement to receive future sublease payments of $443 through March 2016. | ||||||||||||
Contracts: We have entered into material contracts with three appliance manufacturers. Under the agreements there are no minimum purchase commitments; however, we have agreed to indemnify the manufacturers for certain claims, allegations or losses with respect to appliances we sell. | ||||||||||||
Litigation: We are party from time to time to ordinary course disputes that we do not believe to be material or have merit. We intend to vigorously defend ourselves against these ordinary course disputes. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
For fiscal year 2013, we recorded an income tax benefit of $338. As of December 29, 2012, we recorded a full valuation allowance against the majority of our U.S. deferred tax assets due to the uncertainty of their realization. During the fourth quarter of 2013, we concluded, based on the assessment of all available evidence, including previous three-year cumulative income and estimates of future profitability, that it was more-likely-than-not that we would be able to realize the majority of our deferred tax assets in the future and as a result recorded a $1,200 non-cash reversal of our deferred tax asset valuation allowance. As of December 28, 2013, we maintained a valuation allowance of $613 against our state net operating loss carryforwards, foreign tax credits and capital loss carryforward deferred tax assets. During fiscal year 2013, we also utilized $372 in net operating loss deferred tax assets that were reduced by a full valuation allowance due to the uncertainty of future realization as of December 29, 2012. In fiscal year 2013, we recorded a $1,234 tax provision related to taxable income primarily from our U.S. operations, which partially offset the $1,572 reduction in our deferred tax asset valuation allowance. | ||||||||
For fiscal year 2012, we recorded a provision for income taxes of $83. The provision recorded in fiscal year 2012 was related primarily to the tax effect of the cumulative undistributed earnings from our Canadian subsidiary as it was determined that our investment is no longer permanent in duration. In fiscal year 2012, we recognized a net deferred tax liability of $114, consisting of a deferred tax liability of $994 for undistributed earnings and a deferred tax assets of $880 for foreign tax credits related to the undistributed earnings. In fiscal year 2012, we recorded a valuation allowance of $1,154 primarily against the NOLs generated during the year as it was determined at the time to be more-likely-than-not that we will not recognize the benefit of the net loss incurred in 2012. | ||||||||
The provision for (benefit of) income taxes for fiscal years 2013 and 2012 consisted of the following: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Current tax expense: | ||||||||
Federal | $ | 123 | $ | (248 | ) | |||
State | 107 | 26 | ||||||
Foreign | (71 | ) | (62 | ) | ||||
Current tax expense | $ | 159 | $ | (284 | ) | |||
Deferred tax expense — domestic | (499 | ) | 365 | |||||
Deferred tax expense — foreign | 2 | 2 | ||||||
Provision for (benefit of) income taxes | $ | (338 | ) | $ | 83 | |||
A reconciliation of our provision for (benefit of) income taxes with the federal statutory tax rate for fiscal years 2013 and 2012 is shown below: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Income tax expense at statutory rate | $ | 1,120 | $ | (1,487 | ) | |||
Portion attributable to noncontrolling interest at statutory rate | (107 | ) | 205 | |||||
State tax expense, net of federal tax effect | 188 | (130 | ) | |||||
Permanent differences | 61 | 194 | ||||||
Change in valuation allowance | (372 | ) | 1,154 | |||||
Recognition of tax effect for the cumulative undistributed earnings from Canada | (54 | ) | 114 | |||||
Reversal of deferred tax asset valuation allowance | (1,200 | ) | — | |||||
Adjustment of deferred tax assets | (1 | ) | 58 | |||||
Foreign income tax payable true-up | (4 | ) | (57 | ) | ||||
Other | 31 | 32 | ||||||
$ | (338 | ) | $ | 83 | ||||
Income before provision for (benefit of) income taxes and noncontrolling interest was derived from the following sources for fiscal years 2013 and 2012 as shown below: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
United States | $ | 3,532 | $ | (4,356 | ) | |||
Canada | (237 | ) | (17 | ) | ||||
$ | 3,295 | $ | (4,373 | ) | ||||
The components of net deferred tax assets (liabilities) as of December 28, 2013, and December 29, 2012, are as follows: | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 317 | $ | 689 | ||||
Federal and state tax credits | 199 | 464 | ||||||
Reserves | 210 | 414 | ||||||
Accrued expenses | 257 | 254 | ||||||
Share-based compensation | 307 | 286 | ||||||
Deferred gain | 142 | 331 | ||||||
Property and equipment | 21 | 25 | ||||||
Total deferred tax assets | 1,453 | 2,463 | ||||||
Deferred tax liabilities: | ||||||||
Prepaid expenses | (148 | ) | (146 | ) | ||||
Property and equipment | (29 | ) | (50 | ) | ||||
Investments | (1,211 | ) | (1,124 | ) | ||||
Total deferred tax liabilities | (1,388 | ) | (1,320 | ) | ||||
Valuation allowance | (613 | ) | (2,185 | ) | ||||
Net deferred tax liabilities | $ | (548 | ) | $ | (1,042 | ) | ||
The deferred tax amounts have been classified in the accompanying consolidated balance sheets as follows: | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Current assets | $ | 523 | $ | — | ||||
Non-current assets | 21 | 25 | ||||||
Current liabilities | — | (146 | ) | |||||
Non-current liabilities | (1,092 | ) | (921 | ) | ||||
$ | (548 | ) | $ | (1,042 | ) | |||
Future utilization of net operating loss (“NOL”) and tax credit carryforwards is subject to certain limitations under provisions of Section 382 of the Internal Revenue Code. This section relates to a 50 percent change in control over a three-year period. We believe that the issuance of Common Stock during 1999 resulted in an “ownership change” under Section 382. Accordingly, our ability to utilize NOL and tax credit carryforwards generated prior to February 1999 is limited to approximately $56 per year. | ||||||||
As of December 28, 2013, we had $278 of federal NOL carryforwards not subject to IRC section 382 limitations that begin expiring in 2018 and a foreign tax credit carryforward of $256. We also had state NOL carryforwards of $4,638. The state NOL carryforwards are available to offset future taxable income or reduce taxes payable through 2029. These state loss carryforwards began expiring in 2011. | ||||||||
We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of December 28, 2013, and December 29, 2012, we did not have any material uncertain tax positions. | ||||||||
It is our practice to recognize interest related to income tax matters as a component of interest expense and penalties as a component of selling, general and administrative expense. As of December 28, 2013, and December 29, 2012, we had an immaterial amount of accrued interest and penalties. | ||||||||
We are subject to income taxes in the U.S. federal jurisdiction, foreign jurisdictions and various state jurisdictions. Tax regulations from each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, we are no longer subject to U.S. federal, foreign, state or local income tax examinations by tax authorities for the years before 2010. We are not currently under examination by any taxing jurisdiction. | ||||||||
We had no significant unrecognized tax benefits as of December 28, 2013, that would reasonably be expected to affect our effective tax rate during the next twelve months. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Shareholders' Equity | ' | ||||||||||||
Shareholders’ Equity | |||||||||||||
Common Stock: During fiscal year 2013, 15 stock options were exercised that resulted in cash proceeds of $36 and had an intrinsic value of $7. During fiscal year 2012, 29 stock options were exercised that resulted in cash proceeds of $86 and had an intrinsic value of $71. | |||||||||||||
Stock options: The 2011 Stock Compensation Plan (the “2011 Plan”) authorizes the granting of awards in any of the following forms: (i) stock options, (ii) stock appreciation rights, and (iii) other share-based awards, including but not limited to, restricted stock, restricted stock units or performance shares, and expires on the earlier of May 12, 2021, or the date that all shares reserved under the 2011 Plan are issued or no longer available. The 2011 Plan provides for the issuance of up to 700 shares of Common Stock pursuant to awards granted under the 2011 Plan. Options granted to employees typically vest over two years, while grants to non-employee directors vest in six months. As of December 28, 2013, 367 options were outstanding under the 2011 Plan. Our 2006 Stock Option Plan (the “2006 Plan”) expired on June 30, 2011, but the options outstanding under the 2006 Plan continue to be exercisable in accordance with their terms. As of December 28, 2013, 391 options were outstanding to employees and non-employee directors under the 2006 Plan. Our Restated 1997 Stock Option Plan (the “1997 Plan”) has expired, but the options outstanding under the expired 1997 Plan continue to be exercisable in accordance with their terms. As of December 28, 2013, options to purchase an aggregate of 8 shares were outstanding under the 1997 Plan. We issue new Common Stock when stock options are exercised. | |||||||||||||
On May 9, 2013, we granted 30 stock options from our 2011 Plan to non-employee directors with an exercise price of $1.89 per share, a vesting period of six months and a weighted average fair value of $1.66 per share. Also on May 9, 2013, we granted 185 stock options from our 2011 Plan to management with an exercise price of $1.89 per share and a weighted average fair value of $1.47 per share. The stock options granted to management have both time and performance vesting, of which 135 stock options vest equally over two years and 50 stock options vest based on the achievement of performance targets. For performance-based options, the Company evaluates the likelihood of the targets being met and records the expense over the probable vesting period. | |||||||||||||
On July 22, 2013, we granted 100 stock options from our 2011 Plan to management with an exercise price of $2.65 per share and a weighted average fair value of $2.06 per share. The stock options granted to management have both time and performance vesting, of which 50 stock options vest equally over three years and 50 stock options vest based on the achievement of performance targets. For performance-based options, the Company evaluates the likelihood of the targets being met and records the expense over the probable vesting period. | |||||||||||||
On May 10, 2012, we granted 30 stock options from our 2011 Plan to non-employee directors with an exercise price of $4.05 per share, a vesting period of six months and a weighted average fair value of $3.57 per share. On August 2, 2012, we granted 8 stock options from our 2011 plan to non-employee directors with an exercise price of $4.01 per share, a vesting period of six months and a weighted average fair value of $3.52 per share. | |||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for fiscal years 2013 and 2012: | |||||||||||||
For the fiscal years ended | |||||||||||||
28-Dec-13 | 29-Dec-12 | ||||||||||||
Expected dividend yield | — | — | |||||||||||
Expected stock price volatility | 90.5 | % | 95.46 | % | |||||||||
Risk-free interest rate | 1.47 | % | 1.8 | % | |||||||||
Expected life of options (years) | 7.29 | 10 | |||||||||||
Additional information relating to all outstanding options is as follows (in thousands, except per share data): | |||||||||||||
Options | Weighted | ||||||||||||
Outstanding | Average | ||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Balance at December 31, 2011 | 588 | $ | 3.99 | ||||||||||
Granted | 38 | 4.04 | |||||||||||
Exercised | (29 | ) | 3.03 | ||||||||||
Cancelled/expired | (59 | ) | 5.25 | ||||||||||
Forfeited | (5 | ) | 4.25 | ||||||||||
Balance at December 29, 2012 | 533 | 3.88 | |||||||||||
Granted | 315 | 2.13 | |||||||||||
Exercised | (15 | ) | 2.38 | ||||||||||
Cancelled/expired | (67 | ) | 3.11 | ||||||||||
Balance at December 28, 2013 | 766 | $ | 3.26 | ||||||||||
The weighted average fair value per option of options granted during fiscal years 2013 and 2012 was $1.68 and $3.56, respectively. | |||||||||||||
The following table summarizes information about stock options outstanding as of December 28, 2013 (in thousands, except per share data): | |||||||||||||
Range of Exercise Prices | Options | Weighted Average Remaining Contractual Life | Weighted | Aggregate Intrinsic Value | |||||||||
Outstanding | Average | ||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
$5.05 to $6.41 | 157 | 1.61 | $ | 5.41 | |||||||||
$3.55 to $4.69 | 183 | 5.82 | 4.02 | ||||||||||
$2.22 to $2.80 | 176 | 4.96 | 2.49 | ||||||||||
$1.87 to $1.89 | 250 | 6.53 | 1.89 | ||||||||||
766 | 4.99 | 3.26 | $ | 326 | |||||||||
The following table summarizes information about stock options exercisable as of December 28, 2013 (in thousands, except per share data): | |||||||||||||
Range of Exercise Prices | Options Exercisable | Weighted | Aggregate Intrinsic Value | ||||||||||
Average | |||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
$5.05 to $6.41 | 157 | $ | 5.41 | ||||||||||
$3.55 to $4.69 | 183 | 4.02 | |||||||||||
$2.22 to $2.80 | 76 | 2.28 | |||||||||||
$1.87 to $1.89 | 115 | 1.88 | |||||||||||
531 | 3.72 | $ | 164 | ||||||||||
The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on our closing stock price of $2.90 on December 27, 2013, which theoretically could have been received by the option holders had all option holders exercised their options as of that date. As of December 28, 2013, there were 191 in-the-money options exercisable. | |||||||||||||
Warrants: On October 21, 2009, we issued a warrant to GE to purchase 248 shares of Common Stock at a price of $0.75 per share. The fair market value of the warrant issued was $479 and is exercisable in full at any time during a term of ten years. The fair value per share of Common Stock underlying the warrant issued to GE was $1.93 based on our closing stock price of $1.97. The exercise price may be reduced and the number of shares of Common Stock that may be purchased under the warrant may be increased if the Company issues or sells additional shares of Common Stock at a price lower than the then-current warrant exercise price or the then-current market price of the Common Stock. The shares underlying the warrant include legal restrictions regarding the transfer or sale of the shares. As a result of our private placement offering in April 2010, the number of shares of Common Stock underlying the warrant increased to 254 shares and the exercise price decreased to $0.73 per share as defined in the agreement. There was no accounting charge as a result of the change in warrant shares or exercise price due to the treatment of the warrant as permanent equity. On May 13, 2010, we issued warrants to non-employees to purchase 24 shares of Common Stock at a price of $3.55 per share, with a vesting period of two years and a fair value of $3.03 per share. | |||||||||||||
Preferred Stock: Our amended Articles of Incorporation authorize two million shares of Preferred Stock that may be issued from time to time in one or more series having such rights, powers, preferences and designations as the Board of Directors may determine. To date no such preferred shares have been issued. |
Major_Customers_and_Suppliers
Major Customers and Suppliers | 12 Months Ended |
Dec. 28, 2013 | |
Major Customers and Suppliers [Abstract] | ' |
Major Customers and Suppliers | ' |
Major Customers and Suppliers | |
For the fiscal year ended December 28, 2013, one customer represented 11% of our total revenues. For the fiscal year ended December 29, 2012, no single customer represented 10% or more of our total revenues. As of December 28, 2013, and December 29, 2012, two customers and four customers, respectively, each represented more than 10% of our total trade receivables, for a total of 42% and 54%, respectively, of our total trade receivables. | |
During the two fiscal years ended December 28, 2013, and December 29, 2012, we purchased a vast majority of appliances for resale from three suppliers. We have and are continuing to secure other vendors from which to purchase appliances. However, the curtailment or loss of one of these suppliers or any appliance supplier could adversely affect our operations. |
Segment_Information
Segment Information | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Information | ' | |||||||
Segment Information | ||||||||
We operate within targeted markets through two reportable segments: retail and recycling. The retail segment is comprised of income generated through our ApplianceSmart stores, which includes appliance sales and byproduct revenues from collected appliances. The recycling segment includes all fees charged and costs incurred for collecting, recycling and installing appliances for utilities and other customers. The recycling segment also includes byproduct revenue, which is primarily generated through the recycling of appliances and includes all revenues from AAP. The nature of products, services and customers for both segments varies significantly. As such, the segments are managed separately. Our Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”). The CODM evaluates performance and allocates resources based on sales and income from operations of each segment. Income from operations represents revenues less cost of revenues and operating expenses, including certain allocated selling, general and administrative costs. There are no inter-segment sales or transfers. | ||||||||
On December 30, 2012, we modified the estimate used to allocate certain selling, general and administrative costs and, as a result, approximately $569 of corporate services were not allocated to the retail and recycling segments during fiscal year 2013. The impact of the change in estimate to the retail and recycling segments during fiscal year 2013 was $142 and $427, respectively. | ||||||||
The increase in recycling segment revenues and assets for the fiscal year ended December 28, 2013, presented in the table below was the result of an increase in revenues and accounts receivable, respectively, related to appliance replacement programs. | ||||||||
The following tables present our segment information for fiscal years 2013 and 2012: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Revenues: | ||||||||
Retail | $ | 69,642 | $ | 72,360 | ||||
Recycling | 59,419 | 41,875 | ||||||
Total revenues | $ | 129,061 | $ | 114,235 | ||||
Operating income (loss): | ||||||||
Retail | $ | (1,064 | ) | $ | (2,645 | ) | ||
Recycling | 6,270 | (241 | ) | |||||
Unallocated corporate costs | (627 | ) | (336 | ) | ||||
Total operating income (loss) | $ | 4,579 | $ | (3,222 | ) | |||
Assets: | ||||||||
Retail | $ | 17,682 | $ | 18,476 | ||||
Recycling | 23,290 | 18,658 | ||||||
Corporate assets not allocable | 4,007 | 4,670 | ||||||
Total assets | $ | 44,979 | $ | 41,804 | ||||
Cash capital expenditures: | ||||||||
Retail | $ | 11 | $ | 228 | ||||
Recycling | 354 | 332 | ||||||
Corporate | 136 | 258 | ||||||
Total cash capital expenditures | $ | 501 | $ | 818 | ||||
Depreciation and amortization expense: | ||||||||
Retail | $ | 191 | $ | 226 | ||||
Recycling | 815 | 609 | ||||||
Corporate | 363 | 386 | ||||||
Total depreciation and amortization expense | $ | 1,369 | $ | 1,221 | ||||
Interest expense: | ||||||||
Retail | $ | 494 | $ | 377 | ||||
Recycling | 423 | 468 | ||||||
Corporate | 280 | 298 | ||||||
Total interest expense | $ | 1,197 | $ | 1,143 | ||||
Benefit_Contribution_Plan
Benefit Contribution Plan | 12 Months Ended |
Dec. 28, 2013 | |
Benefit Contribution Plan [Abstract] | ' |
Benefit Contribution Plan | ' |
Benefit Contribution Plan | |
We have a defined contribution salary deferral plan covering substantially all employees under Section 401(k) of the Internal Revenue Code. We contribute an amount equal to 10 cents for each dollar contributed by each employee up to a maximum of 5% of each employee’s compensation. AAP also has a 401(k) plan which includes a safe harbor matching contribution of 4% of the employee’s contribution. We recognized expense for contributions to the plans of $58 and $51 for fiscal years 2013 and 2012, respectively. |
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of business and basis of presentation | ' |
Nature of business: Appliance Recycling Centers of America, Inc. and subsidiaries (“we,” the “Company” or “ARCA”) are in the business of providing turnkey appliance recycling and replacement services for electric utilities and other sponsors of energy efficiency programs. We also sell new major household appliances through a chain of Company-owned stores under the name ApplianceSmart®. In addition, we have a 50% interest in a joint venture operating under the name ARCA Advanced Processing, LLC (“AAP”), which recycles appliances from twelve states in the Northeast and Mid-Atlantic regions of the United States for General Electric Company (“GE”) acting through its GE Appliances business component. These appliances include units manufactured by GE as well as by other manufacturers. | |
Principles of consolidation | ' |
Principles of consolidation: The consolidated financial statements include the accounts of Appliance Recycling Centers of America, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
ApplianceSmart, Inc., a Minnesota corporation, is a wholly owned subsidiary that was formed through a corporate reorganization in July 2011 to hold our business of selling new major household appliances through a chain of Company-owned retail stores. ARCA Canada Inc., a Canadian corporation, is a wholly owned subsidiary that was formed in September 2006 to provide turnkey recycling services for electric utility energy efficiency programs. ARCA Recycling, Inc., a California corporation, is a wholly owned subsidiary that was formed in November 1991 to provide turnkey recycling services for electric utility efficiency programs. The operating results of our wholly owned subsidiaries are consolidated in our financial statements. | |
AAP is a joint venture that was formed in October 2009 between ARCA and 4301 Operations, LLC (“4301”) to support ARCA’s agreement, as amended, with GE acting through its GE Appliances business component. Both ARCA and 4301 have a 50% interest in AAP. GE sells its recyclable appliances to ARCA, which collects, processes and recycles the appliances. The agreement requires that ARCA will only recycle, and will not sell for re-use or resale, the recyclable appliances purchased from GE. AAP established a regional processing center in Philadelphia, Pennsylvania, at which the recyclable appliances are processed. The term of the agreement is for six years from the first date of appliance collection, which was March 31, 2010. AAP commenced operations in February 2010 and has the exclusive rights to service the GE agreement as a subcontractor for ARCA. The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have a controlling financial interest in AAP, through our contractual agreement with GE which is material to AAP and we have provided substantially all of the financial support to fund the operations of AAP since its inception | |
Fair value of financial instruments | ' |
Fair value of financial instruments: The following methods and assumptions are used to estimate the fair value of each class of financial instrument: | |
Cash and cash equivalents, accounts receivable and accounts payable: Due to their nature and short-term maturities, the carrying amounts approximate fair value. | |
Short- and long-term debt: The fair value of short- and long-term debt approximates carrying value and has been estimated based on discounted cash flows using interest rates being offered for similar debt having the same or similar remaining maturities and collateral requirements. | |
No separate comparison of fair values versus carrying values is presented for the aforementioned financial instruments since their fair values are not significantly different than their balance sheet carrying amounts. In addition, the aggregate fair values of the financial instruments would not represent the underlying value of our Company. | |
Estimates | ' |
Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to estimates and assumptions include the valuation allowances for accounts receivable, inventories and deferred tax assets, accrued expenses, and the assumptions we use to value share-based compensation. Actual results could differ from those estimates. | |
Reclassifications | ' |
Reclassifications: The consolidated statements of comprehensive income (loss) include the reclassification of prior year revenues, cost of revenues and sales, general and administrative expenses related to AAP to conform with the current year presentation. The reclassification is related primarily to facilities costs and certain other costs not directly related to the production of recycled materials from cost of revenues to sales, general and administrative expenses. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Cash and cash equivalents | ' | |||||||||
Cash and cash equivalents: We consider all highly liquid investments purchased with original maturity dates of three months or less to be cash equivalents. We maintain our cash in bank deposit and money-market accounts, which, at times, exceed federally insured limits. We have determined that the fair value of the money-market accounts fall within Level 1 of the fair value hierarchy. We have not experienced any losses in such accounts. | ||||||||||
Trade receivables | ' | |||||||||
Trade receivables: We carry unsecured trade receivables at the original invoice amount less an estimate made for doubtful accounts based on a monthly review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. We write off trade receivables when we deem them uncollectible. We record recoveries of trade receivables previously written off when we receive them. We consider a trade receivable to be past due if any portion of the receivable balance is outstanding for more than ninety days. We do not charge interest on past due receivables. Our management considers the allowance for doubtful accounts of $27 and $8 to be adequate to cover any exposure to loss as of December 28, 2013, and December 29, 2012, respectively. | ||||||||||
Inventories | ' | |||||||||
Inventories: Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market and consist of the following as of December 28, 2013, and December 29, 2012: | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Appliances held for resale | $ | 16,449 | $ | 17,768 | ||||||
Processed metals to be sold from recycled appliances | 380 | 188 | ||||||||
Less provision for inventory obsolescence | (175 | ) | (682 | ) | ||||||
$ | 16,654 | $ | 17,274 | |||||||
We provide estimated provisions for the obsolescence of our appliance inventories, including adjustments to market, based on various factors, including the age of such inventory and our management’s assessment of the need for such provisions. We look at historical inventory agings and margin analysis in determining our provision estimate. | ||||||||||
Property and equipment | ' | |||||||||
Property and equipment: Property and equipment are stated at cost. We compute depreciation using straight-line method over a range of estimated useful lives from 3 to 30 years. AAP computed depreciation on its URT materials recovery system using a modified-units-of-production method for the fiscal year ended December 29, 2012. On December 30, 2012, AAP changed to the straight-line deprecation method over 15 years on its URT materials recovery system, which increased annual depreciation expense by approximately $250. | ||||||||||
We amortize leasehold improvements on a straight-line basis over the shorter of their estimated useful lives or the underlying lease term. Repair and maintenance costs are charged to operations as incurred. | ||||||||||
Property and equipment consists of the following as of December 28, 2013, and December 29, 2012: | ||||||||||
Useful Life (Years) | December 28, | December 29, | ||||||||
2013 | 2012 | |||||||||
Land | — | $ | 1,140 | $ | 1,140 | |||||
Buildings and improvements | 18-30 | 3,273 | 3,429 | |||||||
Equipment (including computer software) | 15-Mar | 20,561 | 20,158 | |||||||
Projects under construction | — | 63 | 63 | |||||||
25,037 | 24,790 | |||||||||
Less accumulated depreciation and amortization | (13,613 | ) | (12,542 | ) | ||||||
$ | 11,424 | $ | 12,248 | |||||||
Depreciation and amortization expense | ' | |||||||||
Depreciation and amortization expense: Depreciation and amortization expense related to buildings and equipment from our recycling centers is presented in cost of revenues, and depreciation and amortization expense related to buildings and equipment from our ApplianceSmart stores and corporate assets, such as furniture and computers, is presented in selling, general and administrative expenses in the consolidated statements of comprehensive income (loss). Depreciation and amortization expense was $1,289 and $1,141 for fiscal years 2013 and 2012, respectively. Depreciation and amortization included in cost of revenues was $817 and $585 for fiscal years 2013 and 2012, respectively. | ||||||||||
Software development costs | ' | |||||||||
Software development costs: We capitalize software developed for internal use and are amortizing such costs over their estimated useful lives of three years. Costs capitalized were $99 and $135 for fiscal years 2013 and 2012, respectively. Amortization expense on software development costs was $145 and $150 for fiscal years 2013 and 2012, respectively. Estimated future amortization expense is as follows: | ||||||||||
Fiscal year 2014 | $ | 111 | ||||||||
Fiscal year 2015 | 50 | |||||||||
Fiscal year 2016 | 13 | |||||||||
$ | 174 | |||||||||
Impairment of long-lived assets | ' | |||||||||
Impairment of long-lived assets: We evaluate long-lived assets such as property and equipment for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. We assess impairment based on the estimated future net undiscounted cash flows expected to result from the use of the assets, including cash flows from disposition. Should the sum of the expected future net cash flows be less than the carrying value, we recognize an impairment loss at that time. We measure an impairment loss by comparing the amount by which the carrying value exceeds the fair value (estimated discounted future cash flows or appraisal of assets) of the long-lived assets. We recognized no impairment charges during fiscal years 2013 and 2012 related to long-lived assets. | ||||||||||
Restricted cash | ' | |||||||||
Restricted cash: Restricted cash consisted of a reserve required by our bankcard processor to cover chargebacks, adjustments, fees and other charges that may be due from us. As of December 28, 2013, we had restricted cash of $500. | ||||||||||
Goodwill | ' | |||||||||
Goodwill: We test goodwill annually for impairment. Additionally, goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of an entity below its carrying value. In assessing the recoverability of goodwill, market values and projections regarding estimated future cash flows and other factors are used to determine the fair value of the respective assets. If these estimates or related projections change in the future, we may be required to record impairment charges for these assets. We allocate goodwill to our two reporting segments, retail and recycling. We compare the fair value of each reporting segment to its carrying amount on an annual basis to determine if there is potential goodwill impairment. If the fair value of a reporting segment is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than the carrying value of its goodwill. To determine the fair value of our reporting segments, we generally use a present value technique (discounted cash flow) corroborated by market multiples when available and as appropriate. The factor most sensitive to change with respect to the discounted cash flow analyses is the estimated future cash flows of each reporting segment, which is, in turn, sensitive to the estimates of future revenue growth and margins for these businesses. If actual revenue growth and/or margins are lower than expectations, the impairment test results could differ. Fair value for goodwill is determined based on discounted cash flows, market multiples or appraised values as appropriate. During the fourth quarter of 2012, AAP determined that indicators of impairment existed that made it more-likely-than-not that the carrying value of the reporting entity exceeded its fair value. The future cash flows generated by AAP were significantly below the original investment model due to a higher level of debt service, delays and uncertainty in monetizing CFCs and declining average American Metal Market (“AMM”) metal prices. As a result of the goodwill impairment test, AAP recorded a $1,082 impairment charge during the fourth quarter of 2012. As of December 28, 2013 and December 29, 2012, we had goodwill of $38 allocated to our recycling segment which is presented as a component of other assets on the consolidated balance sheets. | ||||||||||
Cost of Revenue | ' | |||||||||
Recycling segment cost of revenues: Costs of revenues in our recycling segment are comprised primarily of the following: | ||||||||||
• | Transportation costs, including employee compensation and benefits, related to collecting appliances for recycling and delivering appliances under our replacement programs; | |||||||||
• | Purchase of appliance inventories, including freight to our recycling center warehouses, early payment discounts, and warehousing costs for appliances used in our replacement programs; | |||||||||
• | Cost of recyclable appliances purchased under our GE contract; and | |||||||||
• | Processing costs, including employee compensation and benefits, related to recycling and processing appliances. | |||||||||
Retail segment cost of revenues: Costs of revenues in our retail segment are comprised primarily of the following: | ||||||||||
• | Purchase of appliance inventories, including freight to and from our distribution centers; | |||||||||
• | Shipping, receiving and distribution of appliance inventories to our retail stores, including employee compensation and benefits; | |||||||||
• | Delivery and service of appliances, including employee compensation and benefits, after the appliances are sold to the consumer; | |||||||||
• | Early payment discounts and allowances offered by appliance manufacturers; and | |||||||||
• | Inventory markdowns and shortages. | |||||||||
Selling, general and administrative expenses | ' | |||||||||
Selling, general and administrative expenses: Selling, general and administrative expenses are comprised primarily of the following: | ||||||||||
• | Employee compensation and benefits related to management, corporate services, and retail sales; | |||||||||
• | Outside and outsourced corporate service fees; | |||||||||
• | Occupancy costs related to our retail stores and corporate office; | |||||||||
• | Advertising costs; | |||||||||
• | Bank charges and costs associated with credit and debit card interchange fees; and | |||||||||
• | Other administrative costs, such as supplies, travel and lodging. | |||||||||
Accounting for leases | ' | |||||||||
Accounting for leases: We conduct the majority of our retail and recycling operations from leased facilities. The majority of our leases require payment of real estate taxes, insurance and common area maintenance in addition to rent. The terms of our lease agreements typically range from five to ten years. Most of the leases contain renewal and escalation clauses, and certain store leases require contingent rents based on factors such as revenue. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between straight-line rent amounts and amounts payable under the leases as part of accrued rent in accrued expenses. Cash or lease incentives (tenant allowances) received upon entering into certain store leases are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. | ||||||||||
Product warranty | ' | |||||||||
Product warranty: We provide a warranty for the replacement or repair of certain defective appliances. Our standard warranty policy requires us to repair or replace certain defective units at no cost to our customers. We estimate the costs that may be incurred under our warranty and record an accrual in the amount of such costs at the time we recognize product revenue. Factors that affect our warranty accrual for covered units include the number of units sold, historical and anticipated rates of warranty claims on these units, and the cost of such claims. We periodically assess the adequacy of our recorded warranty accrual and adjust the amounts as necessary. | ||||||||||
Changes in our warranty accrual, presented as a component of accrued expenses on the consolidated balance sheets, for the fiscal years ended December 28, 2013, and December 29, 2012, are as follows: | ||||||||||
For the fiscal years ended | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Beginning Balance | $ | 47 | $ | 71 | ||||||
Standard accrual based on units sold | 40 | 43 | ||||||||
Actual costs incurred | (16 | ) | (16 | ) | ||||||
Periodic accrual adjustments | (37 | ) | (51 | ) | ||||||
Ending Balance | $ | 34 | $ | 47 | ||||||
Income Taxes | ' | |||||||||
Income taxes: We account for income taxes under the liability method. Deferred tax liabilities are recognized for temporary differences that will result in taxable amounts in future years. Deferred tax assets are recognized for deductible temporary differences and tax operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and record a valuation allowance to reduce our deferred tax assets to the amounts we believe to be realizable. We regularly evaluate both positive and negative evidence related to either recording or retaining a valuation allowance against our deferred tax assets. | ||||||||||
Share-based compensation | ' | |||||||||
Share-based compensation: We recognize share-based compensation expense on a straight-line basis over the vesting period for all share-based awards granted. We use the Black-Scholes option pricing model to determine the fair value of awards at the grant date. We calculate the expected volatility for stock options and awards using historical volatility. We estimate a 0%-5% forfeiture rate for stock options issued to employees and Board of Directors members, but will continue to review these estimates in future periods. The risk-free rates for the expected terms of the stock options are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life represents the period that the stock option awards are expected to be outstanding. The expected dividend yield is zero as we have not paid or declared any cash dividends on our Common Stock. Based on these valuations, we recognized share-based compensation expense of $233 and $153 for fiscal years 2013 and 2012, respectively. | ||||||||||
Based on the value of options outstanding as of December 28, 2013, estimated future share-based compensation expense is as follows: | ||||||||||
Fiscal year 2014 | $ | 159 | ||||||||
Fiscal year 2015 | 97 | |||||||||
Fiscal year 2016 | 19 | |||||||||
$ | 275 | |||||||||
The estimate above does not include any expense for additional options that may be granted and vest during 2014, 2015 and 2016. | ||||||||||
Comprehensive Income (loss) | ' | |||||||||
Comprehensive income (loss): Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income (loss) but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to shareholders’ equity. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments. | ||||||||||
Revenue Recognition | ' | |||||||||
Revenue recognition: We recognize revenue from appliance sales in the period the consumer purchases and pays for the appliance, net of an allowance for estimated returns. We recognize revenue from appliance recycling when we collect and process a unit. We recognize revenue generated from appliance replacement programs when we deliver the new appliance and collect and process the old appliance. The delivery, collection and processing activities under our replacement programs typically occur within one business day and are required to complete the earnings process; there are no other performance obligations. We recognize byproduct revenue upon shipment. We recognize revenue on extended warranties with retained service obligations on a straight-line basis over the period of the warranty. On extended warranty arrangements that we sell but others service for a fixed portion of the warranty sales price, we recognize revenue for the net amount retained at the time of sale of the extended warranty to the consumer. As a result of our recycling processes, we are able to produce carbon offsets from the destruction of certain types of ozone-depleting refrigerants. We record revenue from the sale of carbon offsets in the period when all of the following requirements have been met: (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title, ownership and risk of loss associated with the credits have been transferred to the customer, and (iv) collectability is reasonably assured. These requirements are met upon collection of cash due to the uncertainty around collectability and the involvement of various third parties and partners. We include shipping and handling charges to customers in revenue, which are recognized in the period the consumer purchases and pays for delivery. | ||||||||||
Advertising expense | ' | |||||||||
Advertising expense: Our policy is to expense advertising costs as incurred. Advertising expense was $2,092 and $2,238 for fiscal years 2013 and 2012, respectively. | ||||||||||
Taxes collected from customers [Policy Text Block] | ' | |||||||||
Taxes collected from customers: We account for taxes collected from customers on a net basis. | ||||||||||
Basic and diluted income per common share | ' | |||||||||
Basic and diluted income (loss) per common share: Basic income (loss) per common share is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of Common Stock include unexercised stock options and warrants. Basic per share amounts are computed, generally, by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted per share amounts assume the conversion, exercise or issuance of all potential Common Stock instruments unless their effect is anti-dilutive, thereby reducing the loss or increasing the income per common share. In calculating diluted weighted average shares and per share amounts, we included stock options with exercise prices below average market prices, for the respective fiscal years in which they were dilutive, using the Treasury stock method. We calculated the number of additional shares by assuming the outstanding stock options were exercised and that the proceeds from such exercises were used to acquire Common Stock at the average market price during the year. For fiscal year 2013, we excluded 452 options and warrants from the diluted weighted average share outstanding calculation as the effect of these options and warrants is anti-dilutive. For fiscal year 2012, we excluded 795 options and warrants from the diluted weighted average share outstanding calculation as the effect of these options and warrants is anti-dilutive due to the net loss incurred. | ||||||||||
A reconciliation of the denominator in the basic and diluted income or loss per share is as follows: | ||||||||||
For the fiscal year ended | ||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||
Numerator: | ||||||||||
Net income (loss) attributable to controlling interest | $ | 3,318 | $ | (3,852 | ) | |||||
Denominator: | ||||||||||
Weighted average common shares outstanding - basic | 5,562 | 5,551 | ||||||||
Employee stock options | 7 | — | ||||||||
Stock warrants | 173 | — | ||||||||
Weighted average common shares outstanding - diluted | 5,742 | 5,551 | ||||||||
Income (loss) per common share: | ||||||||||
Basic | $ | 0.6 | $ | (0.69 | ) | |||||
Diluted | $ | 0.58 | $ | (0.69 | ) | |||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | ' | |||||||||
Based on the value of options outstanding as of December 28, 2013, estimated future share-based compensation expense is as follows: | ||||||||||
Fiscal year 2014 | $ | 159 | ||||||||
Fiscal year 2015 | 97 | |||||||||
Fiscal year 2016 | 19 | |||||||||
$ | 275 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||
Fiscal year 2014 | $ | 111 | ||||||||
Fiscal year 2015 | 50 | |||||||||
Fiscal year 2016 | 13 | |||||||||
$ | 174 | |||||||||
Schedule of inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market | ' | |||||||||
Inventories: Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market and consist of the following as of December 28, 2013, and December 29, 2012: | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Appliances held for resale | $ | 16,449 | $ | 17,768 | ||||||
Processed metals to be sold from recycled appliances | 380 | 188 | ||||||||
Less provision for inventory obsolescence | (175 | ) | (682 | ) | ||||||
$ | 16,654 | $ | 17,274 | |||||||
Schedule of property and equipment | ' | |||||||||
Property and equipment consists of the following as of December 28, 2013, and December 29, 2012: | ||||||||||
Useful Life (Years) | December 28, | December 29, | ||||||||
2013 | 2012 | |||||||||
Land | — | $ | 1,140 | $ | 1,140 | |||||
Buildings and improvements | 18-30 | 3,273 | 3,429 | |||||||
Equipment (including computer software) | 15-Mar | 20,561 | 20,158 | |||||||
Projects under construction | — | 63 | 63 | |||||||
25,037 | 24,790 | |||||||||
Less accumulated depreciation and amortization | (13,613 | ) | (12,542 | ) | ||||||
$ | 11,424 | $ | 12,248 | |||||||
Schedule of warranty accrual | ' | |||||||||
Changes in our warranty accrual, presented as a component of accrued expenses on the consolidated balance sheets, for the fiscal years ended December 28, 2013, and December 29, 2012, are as follows: | ||||||||||
For the fiscal years ended | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Beginning Balance | $ | 47 | $ | 71 | ||||||
Standard accrual based on units sold | 40 | 43 | ||||||||
Actual costs incurred | (16 | ) | (16 | ) | ||||||
Periodic accrual adjustments | (37 | ) | (51 | ) | ||||||
Ending Balance | $ | 34 | $ | 47 | ||||||
Schedule of reconciliation of the denominator in the basic and diluted income or loss per share | ' | |||||||||
A reconciliation of the denominator in the basic and diluted income or loss per share is as follows: | ||||||||||
For the fiscal year ended | ||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||
Numerator: | ||||||||||
Net income (loss) attributable to controlling interest | $ | 3,318 | $ | (3,852 | ) | |||||
Denominator: | ||||||||||
Weighted average common shares outstanding - basic | 5,562 | 5,551 | ||||||||
Employee stock options | 7 | — | ||||||||
Stock warrants | 173 | — | ||||||||
Weighted average common shares outstanding - diluted | 5,742 | 5,551 | ||||||||
Income (loss) per common share: | ||||||||||
Basic | $ | 0.6 | $ | (0.69 | ) | |||||
Diluted | $ | 0.58 | $ | (0.69 | ) | |||||
Variable_Interest_Entity_Table
Variable Interest Entity (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Variable Interest Entity | ' | |||||||
Summary of assets and liabilities | ' | |||||||
The following table summarizes the assets and liabilities of AAP as of December 28, 2013, and December 29, 2012: | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Assets | ||||||||
Current assets | $ | 1,099 | $ | 787 | ||||
Property and equipment, net | 8,713 | 9,109 | ||||||
Other assets | 137 | 149 | ||||||
Total assets | $ | 9,949 | $ | 10,045 | ||||
Liabilities | ||||||||
Accounts payable | $ | 861 | $ | 826 | ||||
Accrued expenses | 202 | 204 | ||||||
Current maturities of long-term debt obligations | 797 | 635 | ||||||
Long-term debt obligations, net of current maturities | 3,796 | 4,437 | ||||||
Other liabilities (a) | 469 | 749 | ||||||
Total liabilities | $ | 6,125 | $ | 6,851 | ||||
Summary of operating results | ' | |||||||
The following table summarizes the operating results of AAP for fiscal years 2013 and 2012: | ||||||||
For the fiscal years ended | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Revenues | $ | 11,833 | $ | 11,163 | ||||
Gross profit | 2,766 | 1,948 | ||||||
Operating income (loss) (b) | 956 | (847 | ) | |||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Schedule of other assets | ' | |||||||
Other assets as of December 28, 2013, and December 29, 2012, consist of the following: | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Deposits | $ | 411 | $ | 376 | ||||
Recycling contract, net | 179 | 259 | ||||||
Deferred financing costs, net | 278 | 279 | ||||||
Patent costs | 21 | 21 | ||||||
Goodwill | 38 | 38 | ||||||
$ | 927 | $ | 973 | |||||
Schedule of expected recycling contract amortization expense | ' | |||||||
Estimated future amortization expense over the remaining life of our recycling contract is as follows: | ||||||||
Fiscal year 2014 | $ | 80 | ||||||
Fiscal year 2015 | 80 | |||||||
Fiscal year 2016 | 19 | |||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses as of December 28, 2013, and December 29, 2012, consist of the following: | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Compensation and benefits | $ | 1,317 | $ | 963 | ||||
Accrued rebate and incentive checks | 461 | 563 | ||||||
Accrued rent | 1,121 | 1,383 | ||||||
Warranty expense | 34 | 47 | ||||||
Accrued payables | 437 | 307 | ||||||
Current portion of deferred gain on sale-leaseback of building | 365 | 487 | ||||||
Deferred revenue | 346 | 157 | ||||||
Other | 725 | 403 | ||||||
$ | 4,806 | $ | 4,310 | |||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Schedule of long-term debt, capital lease and other financing obligations | ' | |||||||||||
Long-term debt, capital lease and other financing obligations as of December 28, 2013, and December 29, 2012, consist of the following: | ||||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||||
PNC term loan | 1,785 | 2,040 | ||||||||||
Susquehanna term loans | 3,783 | 4,154 | ||||||||||
2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 381 | 411 | ||||||||||
10.00% note, due in monthly installments of $10, including interest, due December 2014 | 147 | 280 | ||||||||||
Capital leases and other financing obligations | 482 | 427 | ||||||||||
6,578 | 7,312 | |||||||||||
Less current maturities | 1,131 | 955 | ||||||||||
$ | 5,447 | $ | 6,357 | |||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||||||
The future annual maturities of borrowings are as follows: | ||||||||||||
ARCA | AAP | Total | ||||||||||
Fiscal year 2014 | $ | 334 | $ | 797 | $ | 1,131 | ||||||
Fiscal year 2015 | 324 | 536 | 860 | |||||||||
Fiscal year 2016 | 286 | 545 | 831 | |||||||||
Fiscal year 2017 | 269 | 562 | 831 | |||||||||
Fiscal year 2018 | 262 | 580 | 842 | |||||||||
Thereafter | 510 | 1,573 | 2,083 | |||||||||
$ | 1,985 | $ | 4,593 | $ | 6,578 | |||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | |||||||||||
The following schedule by fiscal year is the approximate remaining minimum payments required under the capital leases and other financing obligations, together with the present value as of December 28, 2013: | ||||||||||||
ARCA | AAP | Total | ||||||||||
Fiscal year 2014 | $ | 91 | $ | 196 | $ | 287 | ||||||
Fiscal year 2015 | 75 | 51 | 126 | |||||||||
Fiscal year 2016 | 32 | 30 | 62 | |||||||||
Fiscal year 2017 | 15 | 15 | 30 | |||||||||
Fiscal year 2018 | 6 | — | 6 | |||||||||
Total minimum lease and other financing obligation payments | 219 | 292 | 511 | |||||||||
Less amount representing interest | 19 | 10 | 29 | |||||||||
Present value of minimum payments | 200 | 282 | 482 | |||||||||
Less current portion | 79 | 190 | 269 | |||||||||
Capital lease and other financing obligations, net of current portion | $ | 121 | $ | 92 | $ | 213 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Minimum future rental commitments under noncancelable operating leases | ' | |||||||||||
Minimum future rental commitments under noncancelable operating leases as of December 28, 2013, are as follows: | ||||||||||||
ARCA | AAP | Total | ||||||||||
Fiscal year 2014 | $ | 4,725 | $ | 253 | $ | 4,978 | ||||||
Fiscal year 2015 | 3,471 | 255 | 3,726 | |||||||||
Fiscal year 2016 | 2,543 | 267 | 2,810 | |||||||||
Fiscal year 2017 | 2,214 | 268 | 2,482 | |||||||||
Fiscal year 2018 | 1,527 | 269 | 1,796 | |||||||||
Thereafter | 846 | 544 | 1,390 | |||||||||
$ | 15,326 | $ | 1,856 | $ | 17,182 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Income Taxes [Abstract] | ' | |||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||
The provision for (benefit of) income taxes for fiscal years 2013 and 2012 consisted of the following: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Current tax expense: | ||||||||
Federal | $ | 123 | $ | (248 | ) | |||
State | 107 | 26 | ||||||
Foreign | (71 | ) | (62 | ) | ||||
Current tax expense | $ | 159 | $ | (284 | ) | |||
Deferred tax expense — domestic | (499 | ) | 365 | |||||
Deferred tax expense — foreign | 2 | 2 | ||||||
Provision for (benefit of) income taxes | $ | (338 | ) | $ | 83 | |||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
A reconciliation of our provision for (benefit of) income taxes with the federal statutory tax rate for fiscal years 2013 and 2012 is shown below: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Income tax expense at statutory rate | $ | 1,120 | $ | (1,487 | ) | |||
Portion attributable to noncontrolling interest at statutory rate | (107 | ) | 205 | |||||
State tax expense, net of federal tax effect | 188 | (130 | ) | |||||
Permanent differences | 61 | 194 | ||||||
Change in valuation allowance | (372 | ) | 1,154 | |||||
Recognition of tax effect for the cumulative undistributed earnings from Canada | (54 | ) | 114 | |||||
Reversal of deferred tax asset valuation allowance | (1,200 | ) | — | |||||
Adjustment of deferred tax assets | (1 | ) | 58 | |||||
Foreign income tax payable true-up | (4 | ) | (57 | ) | ||||
Other | 31 | 32 | ||||||
$ | (338 | ) | $ | 83 | ||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | |||||||
Income before provision for (benefit of) income taxes and noncontrolling interest was derived from the following sources for fiscal years 2013 and 2012 as shown below: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
United States | $ | 3,532 | $ | (4,356 | ) | |||
Canada | (237 | ) | (17 | ) | ||||
$ | 3,295 | $ | (4,373 | ) | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
The deferred tax amounts have been classified in the accompanying consolidated balance sheets as follows: | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Current assets | $ | 523 | $ | — | ||||
Non-current assets | 21 | 25 | ||||||
Current liabilities | — | (146 | ) | |||||
Non-current liabilities | (1,092 | ) | (921 | ) | ||||
$ | (548 | ) | $ | (1,042 | ) | |||
The components of net deferred tax assets (liabilities) as of December 28, 2013, and December 29, 2012, are as follows: | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 317 | $ | 689 | ||||
Federal and state tax credits | 199 | 464 | ||||||
Reserves | 210 | 414 | ||||||
Accrued expenses | 257 | 254 | ||||||
Share-based compensation | 307 | 286 | ||||||
Deferred gain | 142 | 331 | ||||||
Property and equipment | 21 | 25 | ||||||
Total deferred tax assets | 1,453 | 2,463 | ||||||
Deferred tax liabilities: | ||||||||
Prepaid expenses | (148 | ) | (146 | ) | ||||
Property and equipment | (29 | ) | (50 | ) | ||||
Investments | (1,211 | ) | (1,124 | ) | ||||
Total deferred tax liabilities | (1,388 | ) | (1,320 | ) | ||||
Valuation allowance | (613 | ) | (2,185 | ) | ||||
Net deferred tax liabilities | $ | (548 | ) | $ | (1,042 | ) |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Summary of the assumptions used to estimate the fair value of stock options granted using the Black-Scholes Model | ' | ||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for fiscal years 2013 and 2012: | |||||||||||||
For the fiscal years ended | |||||||||||||
28-Dec-13 | 29-Dec-12 | ||||||||||||
Expected dividend yield | — | — | |||||||||||
Expected stock price volatility | 90.5 | % | 95.46 | % | |||||||||
Risk-free interest rate | 1.47 | % | 1.8 | % | |||||||||
Expected life of options (years) | 7.29 | 10 | |||||||||||
Schedule of all outstanding options, activity [Table Text Block] | ' | ||||||||||||
Additional information relating to all outstanding options is as follows (in thousands, except per share data): | |||||||||||||
Options | Weighted | ||||||||||||
Outstanding | Average | ||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Balance at December 31, 2011 | 588 | $ | 3.99 | ||||||||||
Granted | 38 | 4.04 | |||||||||||
Exercised | (29 | ) | 3.03 | ||||||||||
Cancelled/expired | (59 | ) | 5.25 | ||||||||||
Forfeited | (5 | ) | 4.25 | ||||||||||
Balance at December 29, 2012 | 533 | 3.88 | |||||||||||
Granted | 315 | 2.13 | |||||||||||
Exercised | (15 | ) | 2.38 | ||||||||||
Cancelled/expired | (67 | ) | 3.11 | ||||||||||
Balance at December 28, 2013 | 766 | $ | 3.26 | ||||||||||
Summary of stock options outstanding and exercisable by range of excercise prices | ' | ||||||||||||
The following table summarizes information about stock options outstanding as of December 28, 2013 (in thousands, except per share data): | |||||||||||||
Range of Exercise Prices | Options | Weighted Average Remaining Contractual Life | Weighted | Aggregate Intrinsic Value | |||||||||
Outstanding | Average | ||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
$5.05 to $6.41 | 157 | 1.61 | $ | 5.41 | |||||||||
$3.55 to $4.69 | 183 | 5.82 | 4.02 | ||||||||||
$2.22 to $2.80 | 176 | 4.96 | 2.49 | ||||||||||
$1.87 to $1.89 | 250 | 6.53 | 1.89 | ||||||||||
766 | 4.99 | 3.26 | $ | 326 | |||||||||
The following table summarizes information about stock options exercisable as of December 28, 2013 (in thousands, except per share data): | |||||||||||||
Range of Exercise Prices | Options Exercisable | Weighted | Aggregate Intrinsic Value | ||||||||||
Average | |||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
$5.05 to $6.41 | 157 | $ | 5.41 | ||||||||||
$3.55 to $4.69 | 183 | 4.02 | |||||||||||
$2.22 to $2.80 | 76 | 2.28 | |||||||||||
$1.87 to $1.89 | 115 | 1.88 | |||||||||||
531 | 3.72 | $ | 164 | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of segment information | ' | |||||||
The following tables present our segment information for fiscal years 2013 and 2012: | ||||||||
For the fiscal years ended | ||||||||
28-Dec-13 | 29-Dec-12 | |||||||
Revenues: | ||||||||
Retail | $ | 69,642 | $ | 72,360 | ||||
Recycling | 59,419 | 41,875 | ||||||
Total revenues | $ | 129,061 | $ | 114,235 | ||||
Operating income (loss): | ||||||||
Retail | $ | (1,064 | ) | $ | (2,645 | ) | ||
Recycling | 6,270 | (241 | ) | |||||
Unallocated corporate costs | (627 | ) | (336 | ) | ||||
Total operating income (loss) | $ | 4,579 | $ | (3,222 | ) | |||
Assets: | ||||||||
Retail | $ | 17,682 | $ | 18,476 | ||||
Recycling | 23,290 | 18,658 | ||||||
Corporate assets not allocable | 4,007 | 4,670 | ||||||
Total assets | $ | 44,979 | $ | 41,804 | ||||
Cash capital expenditures: | ||||||||
Retail | $ | 11 | $ | 228 | ||||
Recycling | 354 | 332 | ||||||
Corporate | 136 | 258 | ||||||
Total cash capital expenditures | $ | 501 | $ | 818 | ||||
Depreciation and amortization expense: | ||||||||
Retail | $ | 191 | $ | 226 | ||||
Recycling | 815 | 609 | ||||||
Corporate | 363 | 386 | ||||||
Total depreciation and amortization expense | $ | 1,369 | $ | 1,221 | ||||
Interest expense: | ||||||||
Retail | $ | 494 | $ | 377 | ||||
Recycling | 423 | 468 | ||||||
Corporate | 280 | 298 | ||||||
Total interest expense | $ | 1,197 | $ | 1,143 | ||||
Nature_of_Business_and_Basis_o2
Nature of Business and Basis of Presentation (Details) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
W | W | |
state | ||
Nature of Business and Basis of Presentation | ' | ' |
Interest in a joint venture (as a percent) | 50.00% | ' |
Number of states generating recyclable appliances | 12 | ' |
Number of weeks reflected in operating results | 52 | 52 |
Term of contractual agreement between GE and the entity | '6 years | ' |
4301 | ' | ' |
Nature of Business and Basis of Presentation | ' | ' |
Interest in a joint venture (as a percent) | 50.00% | ' |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | $80 | ' |
2015 | 80 | ' |
2016 | 19 | ' |
Recycling contract, net | 179 | 259 |
Trade receivables | ' | ' |
Trade Receivable Period to be Recognized as Past Due Minimum | '90 days | ' |
Accounts receivable, allowance | 27 | 8 |
Advertising Expense | 2,092 | 2,238 |
Restricted cash | 500 | 0 |
Software development costs | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 111 | ' |
2015 | 50 | ' |
2016 | 13 | ' |
Recycling contract, net | $174 | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 1) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Goodwill | $38 | $38 |
Share Based Compensation Arrangement by Share Based Payment Award Estimated Remaining Compensation Cost after Next Fiscal Year | 159 | ' |
Share Based Compensation Arrangement by Share Based Payment Award Estimated Remaining Compensation Cost after Second Fiscal Year | 97 | ' |
Share Based Compensation Arrangement by Share Based Payment Award Estimated Remaining Compensation Cost after Third Fiscal Year | 19 | ' |
Estimated share-based compensation expenses in 2013 | 275 | ' |
Inventories | ' | ' |
Appliances held for resale | 16,449 | 17,768 |
Processed metals from recycled appliances held for resale | 380 | 188 |
Less provision for inventory obsolescence | -175 | -682 |
Inventory, Net | $16,654 | $17,274 |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Property and equipment | ' | ' |
Depreciation and amortization | $1,289,000 | $1,141,000 |
Property plant and equipment, gross | 25,037,000 | 24,790,000 |
Less accumulated depreciation and amortization | -13,613,000 | -12,542,000 |
Property plant and equipment, net | 11,424,000 | 12,248,000 |
Estimated useful life | '15 years | ' |
Depreciation and amortization included in cost of revenues | 817,000 | 585,000 |
Estimated amortization expense | ' | ' |
2014 | 80,000 | ' |
2015 | 80,000 | ' |
2016 | 19,000 | ' |
Land | ' | ' |
Property and equipment | ' | ' |
Property plant and equipment, gross | 1,140,000 | 1,140,000 |
Buildings and improvements | ' | ' |
Property and equipment | ' | ' |
Property plant and equipment, gross | 3,273,000 | 3,429,000 |
Buildings and improvements | Minimum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '18 years | ' |
Buildings and improvements | Maximum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '30 years | ' |
Equipment (including computer software) | ' | ' |
Property and equipment | ' | ' |
Property plant and equipment, gross | 20,561,000 | 20,158,000 |
Equipment (including computer software) | Minimum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '3 years | ' |
Equipment (including computer software) | Maximum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '15 years | ' |
Projects under construction | ' | ' |
Property and equipment | ' | ' |
Property plant and equipment, gross | 63,000 | 63,000 |
Software development costs | ' | ' |
Property and equipment | ' | ' |
Costs capitalized | 99,000 | 135,000 |
Amortization | 145,000 | 150,000 |
Estimated amortization expense | ' | ' |
2014 | 111,000 | ' |
2015 | 50,000 | ' |
2016 | 13,000 | ' |
Property and Equipment [Member] | Minimum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '3 years | ' |
Property and Equipment [Member] | Maximum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '30 years | ' |
URT [Member] | ' | ' |
Property and equipment | ' | ' |
Depreciation and amortization | $250 | ' |
Estimated useful life | '15 years | ' |
Significant_Accounting_Policie6
Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Goodwill Disclosure [Abstract] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | '15 years | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill | ' | $38 | ' |
Impairment charge | -1,082 | 0 | -1,082 |
Goodwill | $38 | $38 | $38 |
Significant_Accounting_Policie7
Significant Accounting Policies (Details 4) | 12 Months Ended |
Dec. 28, 2013 | |
Minimum [Member] | ' |
Operating Leased Assets [Line Items] | ' |
Operating lease term | '5 years |
Maximum [Member] | ' |
Operating Leased Assets [Line Items] | ' |
Operating lease term | '10 years |
Significant_Accounting_Policie8
Significant Accounting Policies (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Changes in warranty accrual | ' | ' |
Beginning Balance | $47 | $71 |
Standard accrual based on units sold | 40 | 43 |
Actual costs incurred | -16 | -16 |
Periodic accrual adjustments | -37 | -51 |
Ending Balance | $34 | $47 |
Significant_Accounting_Policie9
Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Share-based Compensation [Abstract] | ' | ' |
Estimated forfeiture rate, minimum (as a percent) | 0.00% | ' |
Estimated forfeiture rate, maximum (as a percent) | 5.00% | ' |
Expected dividend yield (as a percent) | 0.00% | ' |
Share-based compensation expense recognized | $233 | $153 |
Estimated share-based compensation expenses in 2013 | $275 | ' |
Recovered_Sheet1
Significant Accounting Policies (Details 7) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Basic and diluted income per share | ' | ' |
Options and warrants excluded from computation of earnings per share (in shares) | 452 | 795 |
Numerator: | ' | ' |
Net income (loss) attributable to controlling interest | $3,318 | ($3,852) |
Denominator: | ' | ' |
Weighted average shares outstanding - basic | 5,562 | 5,551 |
Employee stock options (in shares) | 7 | 0 |
Stock warrants (in shares) | 173 | 0 |
Weighted average shares outstanding - diluted (in shares) | 5,742 | 5,551 |
Income per share: | ' | ' |
Basic (in dollars per share) | $0.60 | ($0.69) |
Diluted (in dollars per share) | $0.58 | ($0.69) |
SaleLeaseback_Transaction_Deta
Sale-Leaseback Transaction (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2009 | Dec. 28, 2013 | Dec. 29, 2012 | Sep. 25, 2009 |
sqft | ||||
Sale-Leaseback Transaction [Abstract] | ' | ' | ' | ' |
Area of building (Sq ft) | ' | ' | ' | 126,458 |
Proceeds, net of fees | $4,627 | ' | ' | ' |
Initial lease period (in years) | '5 years | ' | ' | ' |
Proceeds from Sale of building | 2,032 | 10 | ' | ' |
Repayments of mortgage | 2,595 | 0 | 87 | ' |
Adjustment to net book value | ' | ' | ' | 2,191 |
Deferred gain | ' | ' | ' | 2,436 |
Amortization of deferred gain | ' | $488 | $488 | ' |
Variable_Interest_Entity_Detai
Variable Interest Entity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Variable Interest Entity, Classification of Carrying Amount, Assets | ' | ' | ' |
Current assets | $28,558 | $32,107 | $28,558 |
Property and equipment, net | 12,248 | 11,424 | 12,248 |
Goodwill | 38 | 38 | 38 |
Other assets | 973 | 927 | 973 |
Total | 10,045 | 9,949 | 10,045 |
Liabilities | ' | ' | ' |
Accounts payable | 4,957 | 5,880 | 4,957 |
Accrued expenses | 4,310 | 4,806 | 4,310 |
Current maturities of long-term debt obligations | 955 | 1,131 | 955 |
Long-term obligations, less current maturities | 6,357 | 5,447 | 6,357 |
Total | 1,948 | 1,874 | 1,948 |
Operating results of AAP | ' | ' | ' |
Revenues | ' | 129,061 | 114,235 |
Gross profit (loss) | ' | 33,874 | 29,320 |
Operating income (loss) | ' | 4,579 | -3,222 |
Impairment charge | 1,082 | 0 | 1,082 |
AAP | ' | ' | ' |
Variable Interest Entity, Classification of Carrying Amount, Assets | ' | ' | ' |
Current assets | 787 | 1,099 | 787 |
Property and equipment, net | 9,109 | 8,713 | 9,109 |
Other assets | 149 | 137 | 149 |
Total | 10,045 | 9,949 | 10,045 |
Liabilities | ' | ' | ' |
Accounts payable | 826 | 861 | 826 |
Accrued expenses | 204 | 202 | 204 |
Current maturities of long-term debt obligations | 635 | 797 | 635 |
Long-term obligations, less current maturities | 4,437 | 3,796 | 4,437 |
Other liabilities | 749 | 469 | 749 |
Total | 6,851 | 6,125 | 6,851 |
Operating results of AAP | ' | ' | ' |
Revenues | ' | 11,833 | 11,163 |
Gross profit (loss) | ' | 2,766 | 1,948 |
Operating income (loss) | ' | $956 | ($847) |
Other_Assets_Details
Other Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Other Assets, Noncurrent [Abstract] | ' | ' |
Deposits | $411 | $376 |
Recycling contract, net | 179 | 259 |
Debt issuance costs, net | 278 | 279 |
Patent costs | 21 | 21 |
Goodwill | 38 | 38 |
Total | 927 | 973 |
Amortization expense related to recycling contract | 80 | 80 |
Non-cash interest expense related to debt issuance costs | 131 | 197 |
Estimated amortization expense of recycling contract | ' | ' |
2014 | 80 | ' |
2015 | 80 | ' |
2016 | $19 | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | ' | ' | ' |
Compensation and benefits | $1,317 | $963 | ' |
Accrued rebate and incentive checks | 461 | 563 | ' |
Accrued rent | 1,121 | 1,383 | ' |
Warranty expense | 34 | 47 | 71 |
Accrued payables | 437 | 307 | ' |
Current portion of deferred gain on sale-leaseback of building | 365 | 487 | ' |
Deferred revenue | 346 | 157 | ' |
Other | 725 | 403 | ' |
Total | $4,806 | $4,310 | ' |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 11 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Mar. 14, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 14, 2014 | Jan. 31, 2014 | Dec. 28, 2013 | Mar. 14, 2014 | Nov. 02, 2013 | Oct. 09, 2013 | Dec. 31, 2014 | Jan. 24, 2014 | Dec. 28, 2013 | Sep. 27, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 14, 2014 |
Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Letter of credit | Maximum [Member] | ||||
PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | Revolving line of credit | ||||
Base Rate | Base Rate | Base Rate | LIBOR Rate | LIBOR Rate | LIBOR Rate | LIBOR Rate | LIBOR Rate | LIBOR Rate | LIBOR Rate | Federal Funds Open Rate | One month LIBOR rate | PNC | |||||||
Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of revolving line of credit | ' | ' | ' | $15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit issued in favor of Whirlpool Corporation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' |
Minimum fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 |
Interest rate on the revolving line of credit | ' | ' | ' | ' | ' | 'PNC Base Rate | ' | ' | '1-, 2- or 3-month PNC LIBOR Rate | ' | ' | ' | ' | ' | ' | 'Federal Funds Open Rate | 'one-month LIBOR rate | ' | ' |
Prepayment Penalty Percent Year One | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment Penalty Percent Year Two | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment Penalty Percent Year Three | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | 2.75% | ' | 0.50% | 1.00% | ' | ' |
Debt covenant, interest rate increase | ' | ' | ' | ' | ' | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance under the Revolving Credit Agreement | ' | 9,661 | 10,559 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | ' | 4.27% | 3.07% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity under the Revolving Credit Agreement | ' | ' | ' | 3,966 | 2,531 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Covenant, Loan Affiliate Monthly Required Reduction | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Debt Covenant, Loan Affiliate Maximum Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | 500 | ' | ' | ' | ' |
Amount of Cash Received Due to Selling Carbon Offsets | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300 | $516 | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Details
Borrowings (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 28, 2011 | Jan. 30, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Mar. 30, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Mar. 30, 2011 | Mar. 30, 2011 | Mar. 30, 2011 | Mar. 30, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | AAP | AAP | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Debt instrument term loan one | Debt instrument term loan two | Debt instrument term loan three | 2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 10.00% note, due in monthly installments of $10, including interest, due December 2014 | 10.00% note, due in monthly installments of $10, including interest, due December 2014 | Capital leases and other financing obligations | Capital leases and other financing obligations | ||
PNC | PNC | PNC | PNC | Base Rate | LIBOR Rate | Susquehanna Bank | Susquehanna Bank | Susquehanna Bank | Susquehanna Bank | Prime | Prime | Susquehanna Bank | Susquehanna Bank | Susquehanna Bank | |||||||||||||||
payment | PNC | PNC | AAP | AAP | AAP | Susquehanna Bank | Susquehanna Bank | AAP | AAP | AAP | |||||||||||||||||||
loan | AAP | ||||||||||||||||||||||||||||
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, capital lease obligations and other financing obligations | $6,578 | $7,312 | ' | ' | $1,785 | $2,040 | ' | ' | ' | ' | ' | ' | $3,783 | $4,154 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $381 | $411 | $147 | $280 | $482 | $427 |
Less current maturities | 1,131 | 955 | 797 | 635 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, capital lease and other financing obligations, less current maturities | 5,447 | 6,357 | 3,796 | 4,437 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Monthly installments | ' | ' | ' | ' | 21 | ' | 21 | ' | ' | ' | ' | ' | ' | ' | 54 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | 10 | ' | ' | ' |
Debt instrument number payment after consecutive debt payments | ' | ' | ' | ' | ' | ' | 120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balloon Payment | ' | ' | ' | ' | ' | ' | ' | ' | 1,254 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan to refinance the existing mortgage | ' | ' | ' | ' | ' | ' | ' | 2,550 | ' | ' | ' | ' | ' | ' | ' | 4,750 | ' | ' | ' | ' | 2,100 | 1,400 | 1,250 | ' | ' | ' | ' | ' | ' |
Number of consecutive monthly principal payments plus interest | ' | ' | ' | ' | ' | ' | 119 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'PNC Base Rate | '1-, 2- or 3-month PNC LIBOR Rate | ' | ' | ' | ' | ' | ' | ' | 'Prime | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 3.25% | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at the end of the period (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% | 5.50% | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of separate commercial term loans entered into during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term Loans maturity period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital leases and other financing obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of equipment acquired under capital leases and other financing obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,020 | 1,969 |
Accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,630 | $1,574 |
Borrowings_Details_1
Borrowings (Details 1) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Future Annual Maturities of borrowings | ' |
2014 | $1,131 |
2015 | 860 |
2016 | 831 |
2017 | 831 |
2018 | 842 |
Thereafter | 2,083 |
Long-term Debt | 6,578 |
Remaining minimum payments required under the capital lease together with the present value | ' |
2014 | 287 |
2015 | 126 |
2016 | 62 |
2017 | 30 |
2018 | 6 |
Total minimum lease and other financing obligation payments | 511 |
Less amount representing interest | 29 |
Present value of minimum payments | 482 |
Less current portion | 269 |
Capital lease and other financing obligations, net of current portion | 213 |
ARCA | ' |
Future Annual Maturities of borrowings | ' |
2014 | 334 |
2015 | 324 |
2016 | 286 |
2017 | 269 |
2018 | 262 |
Thereafter | 510 |
Long-term Debt | 1,985 |
Remaining minimum payments required under the capital lease together with the present value | ' |
2014 | 91 |
2015 | 75 |
2016 | 32 |
2017 | 15 |
2018 | 6 |
Total minimum lease and other financing obligation payments | 219 |
Less amount representing interest | 19 |
Present value of minimum payments | 200 |
Less current portion | 79 |
Capital lease and other financing obligations, net of current portion | 121 |
AAP | ' |
Future Annual Maturities of borrowings | ' |
2014 | 797 |
2015 | 536 |
2016 | 545 |
2017 | 562 |
2018 | 580 |
Thereafter | 1,573 |
Long-term Debt | 4,593 |
Remaining minimum payments required under the capital lease together with the present value | ' |
2014 | 196 |
2015 | 51 |
2016 | 30 |
2017 | 15 |
2018 | 0 |
Total minimum lease and other financing obligation payments | 292 |
Less amount representing interest | 10 |
Present value of minimum payments | 282 |
Less current portion | 190 |
Capital lease and other financing obligations, net of current portion | $92 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
manufacturer | ||
Minimum future payments operating leases | ' | ' |
2013 | $4,978 | ' |
2014 | 3,726 | ' |
2015 | 2,810 | ' |
2016 | 2,482 | ' |
2017 | 1,796 | ' |
Thereafter | 1,390 | ' |
Total | 17,182 | ' |
Operating Leases, Rent Expense | 4,838 | 5,313 |
Future sublease rentals payments receivable through March 2016 | 443 | ' |
Number of appliance manufacturers that have material contracts with the Company | 3 | ' |
ARCA | ' | ' |
Minimum future payments operating leases | ' | ' |
2013 | 4,725 | ' |
2014 | 3,471 | ' |
2015 | 2,543 | ' |
2016 | 2,214 | ' |
2017 | 1,527 | ' |
Thereafter | 846 | ' |
Total | 15,326 | ' |
AAP | ' | ' |
Minimum future payments operating leases | ' | ' |
2013 | 253 | ' |
2014 | 255 | ' |
2015 | 267 | ' |
2016 | 268 | ' |
2017 | 269 | ' |
Thereafter | 544 | ' |
Total | $1,856 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Operating Loss Carryforwards [Line Items] | ' | ' |
Document Fiscal Year Focus | '2013 | ' |
Tax credit carryforwards, foreign | ' | $880 |
Number of previous periods of cumulative income before infrequent and unusual items | '3 years | ' |
Noncash reversal of valuation allowance | 1,200 | ' |
Non-cash reversal of deferred tax assets | 1,200 | 0 |
Operating loss carryforward utilized | 372 | ' |
Tax benefits from share-based compensation recorded to Common Stock | ' | 994 |
Provision for income taxes | ' | ' |
Federal | 123 | -248 |
State | 107 | 26 |
Foreign | -71 | -62 |
Current tax expense | 159 | -284 |
Deferred tax expense — domestic | -499 | 365 |
Deferred tax expense — foreign | 2 | 2 |
Provision for income taxes | -338 | 83 |
Reconciliation of provision for income taxes with federal statutory rate | ' | ' |
Income tax expense at statutory rate | 1,120 | -1,487 |
Portion attributable to noncontrolling interest at statutory rate | -107 | 205 |
State tax expense, net of federal tax effect | 188 | -130 |
Permanent differences | 61 | 194 |
Change in valuation allowance | -372 | 1,154 |
Recognition of tax effect for the cumulative undistributed earnings from Canada | -54 | 114 |
Reversal of deferred tax asset valuation allowance | -1,200 | 0 |
Adjustment of deferred tax assets | -1 | 58 |
Foreign income tax payable true-up | -4 | -57 |
Other | 31 | 32 |
Provision for income taxes at effective tax rate | -338 | 83 |
Income before income taxes and noncontrolling interest | ' | ' |
United States | 3,532 | -4,356 |
Canada | -237 | -17 |
Income (loss) before income taxes and noncontrolling interest | 3,295 | -4,373 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | 317 | 689 |
Federal and state tax credits | 199 | 464 |
Reserves | 210 | 414 |
Accrued expenses | 257 | 254 |
Share-based compensation | 307 | 286 |
Deferred gain | 142 | 331 |
Property and equipment | 21 | 25 |
Total deferred tax assets | 1,453 | 2,463 |
Deferred Tax Liabilities: | ' | ' |
Investments | -1,211 | -1,124 |
Prepaid expenses | -148 | -146 |
Property and equipment | -29 | -50 |
Total deferred tax liabilities | 1,388 | 1,320 |
Valuation allowance | -613 | -2,185 |
Net deferred tax liabilities | 548 | 1,042 |
Percentage of likelihood of realization that the tax position must exceed in order for the amount to be recognized | 50.00% | ' |
US | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Non-cash reversal of deferred tax assets | 1,572 | ' |
Provision for income taxes | ' | ' |
Provision for income taxes | $1,234 | ' |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current assets | $523 | $0 |
Non-current assets | 21 | 25 |
Deferred Tax Liabilities, Net, Current | 0 | -146 |
Deferred income tax liabilities | -1,092 | -921 |
Net deferred tax liabilities | ($548) | ($1,042) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2013 |
Carry Forwards [Line Items] | ' |
Percentage of change in control | 50.00% |
Period of change in control | '3 years |
Limitation On Use of Carryforward Annual Amount as per Section 382 | $56 |
Federal | ' |
Carry Forwards [Line Items] | ' |
Operating Loss Carryforwards Use Without Limitation Amount | 278 |
State | ' |
Carry Forwards [Line Items] | ' |
Operating Loss Carryforwards | 4,638 |
Foreign Tax Credit Carryforward | ' |
Carry Forwards [Line Items] | ' |
Tax credit carryforward | $256 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Jan. 01, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | 9-May-13 | Jul. 22, 2013 | 9-May-13 | Aug. 02, 2012 | 10-May-12 | Dec. 28, 2013 | Dec. 28, 2013 |
Common Stock [Member] | Common Stock [Member] | 2011 Plan | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | |||
Common Stock [Member] | Common Stock [Member] | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2006 Plan | 1997 Plan | |||||||||
Employees | Management [Member] | Non-employee directors | Non-employee directors | Non-employee directors | ||||||||||||||
Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Common Stock (in Shares) | ' | ' | 15,000 | 29,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Common Stock | $36 | $86 | $36 | $86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $164 | ' | ' | ' | ' | ' | ' | ' | $7 | $71 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of common stock which can be issued | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 years | '6 months | '6 months | '6 months | ' | ' |
Options Outstanding | ' | ' | ' | ' | ' | 766,000 | 533,000 | 588,000 | ' | ' | 367,000 | ' | ' | ' | ' | ' | 391,000 | 8,000 |
Granted (in shares) | ' | ' | ' | ' | ' | 315,000 | 38,000 | ' | ' | ' | ' | 185,000 | 100,000 | 30,000 | 8,000 | 30,000 | ' | ' |
Granted, exercise price | ' | ' | ' | ' | ' | $2.13 | $4.04 | ' | ' | ' | ' | $1.89 | $2.65 | $1.89 | $4.01 | $4.05 | ' | ' |
Weighted average grant date fair value (in dollars per share) | ' | ' | ' | ' | ' | $1.68 | $3.56 | ' | ' | ' | ' | $1.47 | $2.06 | $1.66 | $3.52 | $3.57 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Options that Will Vest Equally | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,000 | 50,000 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Options that Will Vest Based on Achievements of Performance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 50,000 | ' | ' | ' | ' | ' |
Assumptions used to estimate the fair value of stock options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | 0.00% | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected stock price volatility (as a percent) | ' | ' | ' | ' | ' | 90.50% | 95.46% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | ' | 1.47% | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life of options (in years) | ' | ' | ' | ' | ' | '7 years 3 months 15 days | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Outstanding Balance | ' | ' | ' | ' | ' | 533,000 | ' | 588,000 | ' | ' | 367,000 | ' | ' | ' | ' | ' | 391,000 | 8,000 |
Granted (in shares) | ' | ' | ' | ' | ' | 315,000 | 38,000 | ' | ' | ' | ' | 185,000 | 100,000 | 30,000 | 8,000 | 30,000 | ' | ' |
Exercised | ' | ' | ' | ' | ' | -15,000 | -29,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled/expired | ' | ' | ' | ' | ' | -67,000 | -59,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture | ' | ' | ' | ' | ' | ' | -5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Outstanding Balance | ' | ' | ' | ' | ' | 766,000 | 533,000 | 588,000 | ' | ' | 367,000 | ' | ' | ' | ' | ' | 391,000 | 8,000 |
Weighted average exercise Price, balance | ' | ' | ' | ' | ' | $3.88 | ' | $3.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, exercise price | ' | ' | ' | ' | ' | $2.13 | $4.04 | ' | ' | ' | ' | $1.89 | $2.65 | $1.89 | $4.01 | $4.05 | ' | ' |
Exercisesd, exercise Price | ' | ' | ' | ' | ' | $2.38 | $3.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired, exercise price | ' | ' | ' | ' | ' | $3.11 | $5.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture, exercise price | ' | ' | ' | ' | ' | ' | $4.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price, balance | ' | ' | ' | ' | ' | $3.26 | $3.88 | $3.99 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 27, 2013 | Oct. 21, 2009 |
Shareholders' Equity | ' | ' | ' |
Options Outstanding | 766 | ' | ' |
Outstanding Options, Weighted Average Remaining Contractual Life (in years) | '4 years 11 months 27 days | ' | ' |
Outstanding Options, Weighted Average Exercise Price | $3.26 | ' | ' |
Options Exercisable | 531 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $3.72 | ' | ' |
Outstanding Options, Aggregate Intrinsic Value | $326 | ' | ' |
Exercisable Options, Aggregate Intrinsic Value | $164 | ' | ' |
Closing stock price used for calculation of intrinsic value | ' | $2.90 | $1.97 |
5.05 to 6.41 [Member] | ' | ' | ' |
Shareholders' Equity | ' | ' | ' |
Options Outstanding | 157 | ' | ' |
Outstanding Options, Weighted Average Remaining Contractual Life (in years) | '1 year 7 months 10 days | ' | ' |
Outstanding Options, Weighted Average Exercise Price | $5.41 | ' | ' |
Options Exercisable | 157 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $5.41 | ' | ' |
Exercise price, minimum | $5.05 | ' | ' |
Exercise price, maximum | $6.41 | ' | ' |
3.55 to 4.69 [Member] | ' | ' | ' |
Shareholders' Equity | ' | ' | ' |
Options Outstanding | 183 | ' | ' |
Outstanding Options, Weighted Average Remaining Contractual Life (in years) | '5 years 9 months 26 days | ' | ' |
Outstanding Options, Weighted Average Exercise Price | $4.02 | ' | ' |
Options Exercisable | 183 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $4.02 | ' | ' |
Exercise price, minimum | $3.55 | ' | ' |
Exercise price, maximum | $4.69 | ' | ' |
2.22 to 2.80 [Member] | ' | ' | ' |
Shareholders' Equity | ' | ' | ' |
Options Outstanding | 176 | ' | ' |
Outstanding Options, Weighted Average Remaining Contractual Life (in years) | '4 years 11 months 16 days | ' | ' |
Outstanding Options, Weighted Average Exercise Price | $2.49 | ' | ' |
Options Exercisable | 76 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $2.28 | ' | ' |
Exercise price, minimum | $2.22 | ' | ' |
Exercise price, maximum | $2.80 | ' | ' |
1.87 [Member] | ' | ' | ' |
Shareholders' Equity | ' | ' | ' |
Options Outstanding | 250 | ' | ' |
Outstanding Options, Weighted Average Remaining Contractual Life (in years) | '6 years 6 months 11 days | ' | ' |
Outstanding Options, Weighted Average Exercise Price | $1.89 | ' | ' |
Options Exercisable | 115 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $1.88 | ' | ' |
Exercise price, minimum | $1.87 | ' | ' |
Stockholders_Equity_Details_3
Stockholders' Equity (Details 3) | Dec. 28, 2013 | 31-May-10 | Dec. 31, 2009 | 31-May-10 | Dec. 31, 2009 |
In Millions, unless otherwise specified | Non Employee Member [Member] | Non Employee Member [Member] | Warrant [Member] | Warrant [Member] | |
Preferred Stock | ' | ' | ' | ' | ' |
Warrant exercisable period | ' | '2 years | '0 years | '10 years | '10 years |
Number of authorized shares of preferred stock | 2 | ' | ' | ' | ' |
Shareholders_Equity_Details_4
Shareholders' Equity (Details 4) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 27, 2013 | Oct. 21, 2009 | 31-May-10 | Dec. 31, 2009 | Apr. 30, 2010 | Oct. 21, 2009 | 31-May-10 | Dec. 31, 2009 | 13-May-10 |
GE Common Stock Warrant | GE Common Stock Warrant | GE Common Stock Warrant | GE Common Stock Warrant | Non Employee Member Stock Warrant | Non Employee Member Stock Warrant | Non Employee Member Stock Warrant | ||||
Warrants [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Price of warrant | ' | ' | ' | ' | ' | 0.73 | 0.75 | ' | ' | 3.55 |
Number of shares of common stock which can be purchased | ' | ' | ' | ' | ' | 254 | 248 | ' | ' | 24 |
Warrants Fair Value | ' | ' | ' | ' | ' | ' | $479 | ' | ' | ' |
Fair value per share | ' | ' | ' | ' | ' | ' | $1.93 | ' | ' | $3.03 |
Warrant exercisable period | ' | ' | ' | '10 years | '10 years | ' | ' | '2 years | '0 years | ' |
Share Price | ' | $2.90 | $1.97 | ' | ' | ' | ' | ' | ' | ' |
Number of shares in the money | 191 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Major_Customers_and_Suppliers_
Major Customers and Suppliers (Details) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
customers | customers | |
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Number of customers representing more than 10% of total receivables | 1 | ' |
Percentage of customers representing 10% of total trade receivables | 11.00% | ' |
Customer Concentration Risk [Member] | Trade Receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Number of customers representing more than 10% of total receivables | 2 | 4 |
Percentage of customers representing 10% of total trade receivables | 42.00% | 54.00% |
Supplier Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Number of suppliers concentration risk | 3 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | ||
segment | ||||
Segment Information | ' | ' | ||
Revenues | $129,061 | $114,235 | ||
Operating income (loss) | 4,579 | -3,222 | ||
Assets | 44,979 | [1] | 41,804 | [1] |
Cash capital expenditures | 501 | 818 | ||
Depreciation and amortization | 1,369 | 1,221 | ||
Interest Expense | 1,197 | 1,143 | ||
Interest Expense | -1,194 | -1,139 | ||
Number of Reportable Segments | 2 | ' | ||
Selling, general and administrative expenses | 29,295 | 31,460 | ||
Retail | ' | ' | ||
Segment Information | ' | ' | ||
Revenues | 69,642 | 72,360 | ||
Operating income (loss) | -1,064 | -2,645 | ||
Assets | 17,682 | 18,476 | ||
Cash capital expenditures | 11 | 228 | ||
Depreciation and amortization | 191 | 226 | ||
Interest Expense | 494 | 377 | ||
Recycling | ' | ' | ||
Segment Information | ' | ' | ||
Revenues | 59,419 | 41,875 | ||
Operating income (loss) | 6,270 | -241 | ||
Assets | 23,290 | 18,658 | ||
Cash capital expenditures | 354 | 332 | ||
Depreciation and amortization | 815 | 609 | ||
Interest Expense | 423 | 468 | ||
Unallocated corporate | ' | ' | ||
Segment Information | ' | ' | ||
Operating income (loss) | -627 | -336 | ||
Assets | 4,007 | 4,670 | ||
Cash capital expenditures | 136 | 258 | ||
Depreciation and amortization | 363 | 386 | ||
Interest Expense | 280 | 298 | ||
Change in Estimate of Allocating Expenses | ' | ' | ||
Segment Information | ' | ' | ||
Selling, general and administrative expenses | 569 | ' | ||
Change in Estimate of Allocating Expenses | Retail | ' | ' | ||
Segment Information | ' | ' | ||
Selling, general and administrative expenses | 142 | ' | ||
Change in Estimate of Allocating Expenses | Recycling | ' | ' | ||
Segment Information | ' | ' | ||
Selling, general and administrative expenses | $427 | ' | ||
[1] | Assets of ARCA Advanced Processing, LLC (AAP), the consolidated variable interest entity (VIE), that can only be used to settle obligations of AAP were $9,949 and $10,045 as of December 28, 2013, and December 29, 2012, respectively. Liabilities of AAP for which creditors do not have recourse to the general credit of Appliance Recycling Centers of America, Inc. were $1,874 and $1,948 as of December 28, 2013, and December 29, 2012, respectively. |
Benefit_Contribution_Plan_Deta
Benefit Contribution Plan (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Benefit Contribution Plan [Abstract] | ' | ' |
Employer contribution per dollar | $0.10 | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent | 5.00% | ' |
Employer contribution safe habor matching percent | 4.00% | ' |
Recognized expenses for contributions | $58,000 | $51,000 |