Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 04, 2015 | Nov. 10, 2015 | |
Entity Registrant Name | SYPRIS SOLUTIONS INC | |
Entity Central Index Key | 864,240 | |
Trading Symbol | sypr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 20,788,544 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 4, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Net revenue: | ||||
Outsourced services | $ 29,089,000 | $ 82,417,000 | $ 93,903,000 | $ 242,170,000 |
Products | 9,348,000 | 7,787,000 | 22,299,000 | 25,391,000 |
Total net revenue | 38,437,000 | 90,204,000 | 116,202,000 | 267,561,000 |
Cost of sales: | ||||
Outsourced services | 29,278,000 | 74,965,000 | 100,390,000 | 216,762,000 |
Products | 6,691,000 | 7,030,000 | 16,535,000 | 21,199,000 |
Total cost of sales | 35,969,000 | 81,995,000 | 116,925,000 | 237,961,000 |
Gross profit (loss) | 2,468,000 | 8,209,000 | (723,000) | 29,600,000 |
Selling, general and administrative | 5,969,000 | 8,273,000 | 22,414,000 | 25,406,000 |
Research and development | 119,000 | 116,000 | 647,000 | 277,000 |
Severance | 457,000 | 0 | 1,023,000 | 0 |
Operating (loss) income | (4,077,000) | (180,000) | (24,807,000) | 3,917,000 |
Interest expense, net | 1,783,000 | 179,000 | 3,271,000 | 466,000 |
Other (income) expense, net | (7,841,000) | (397,000) | (8,595,000) | (850,000) |
Income (loss) before taxes | 1,981,000 | 38,000 | (19,483,000) | 4,301,000 |
Income tax expense | 2,255,000 | 1,197,000 | 2,240,000 | 3,438,000 |
Net (loss) income | $ (274,000) | $ (1,159,000) | $ (21,723,000) | $ 863,000 |
(Loss) income per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ (0.06) | $ (1.10) | $ 0.04 |
Diluted (in dollars per share) | $ (0.01) | $ (0.06) | $ (1.10) | $ 0.04 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 19,654 | 19,612 | 19,684 | 19,564 |
Diluted (in shares) | 19,654 | 19,612 | 19,684 | 19,607 |
Dividends declared per common share (in dollars per share) | $ 0 | $ 0.02 | $ 0 | $ 0.06 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Net (loss) income | $ (274,000) | $ (1,159,000) | $ (21,723,000) | $ 863,000 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (995,000) | (657,000) | (2,048,000) | (558,000) |
Total comprehensive (loss) income | $ (1,269,000) | $ (1,816,000) | $ (23,771,000) | $ 305,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Oct. 04, 2015 | Dec. 31, 2014 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | $ 0 | $ 0 |
Nonvoting Common Stock [Member] | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Cash and cash equivalents | 1,773,000 | 7,003,000 |
Accounts receivable, net | 13,647,000 | 47,666,000 |
Inventory, net | 23,348,000 | 29,031,000 |
Other current assets | 4,829,000 | 5,666,000 |
Total current assets | 43,597,000 | 89,366,000 |
Property, plant and equipment, net | 26,464,000 | 37,654,000 |
Other assets | 2,613,000 | 2,661,000 |
Total assets | 72,674,000 | 129,681,000 |
Accounts payable | 12,821,000 | 39,027,000 |
Accrued liabilities | 13,022,000 | 18,775,000 |
Current portion of long-term debt | 2,893,000 | 17,000,000 |
Total current liabilities | 28,736,000 | 74,802,000 |
Note payable – Meritor | 3,780,000 | 0 |
Note payable – related party | 5,500,000 | 0 |
Long-term debt | 3,369,000 | 0 |
Other liabilities | 7,532,000 | 7,991,000 |
Total liabilities | 48,917,000 | 82,793,000 |
Preferred stock | 0 | 0 |
Common stock | 208,000 | 206,000 |
Additional paid-in capital | 151,952,000 | 151,314,000 |
Retained deficit | (101,319,000) | (79,596,000) |
Accumulated other comprehensive loss | (27,083,000) | (25,035,000) |
Treasury stock, 37,692 and 82,692 shares in 2015 and 2014, respectively | (1,000) | (1,000) |
Total stockholders’ equity | 23,757,000 | 46,888,000 |
Total liabilities and stockholders’ equity | $ 72,674,000 | $ 129,681,000 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Oct. 04, 2015 | Dec. 31, 2014 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 24,850 | 24,850 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Nonvoting Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 975,150 | 975,150 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 20,826,236 | 20,567,735 |
Common stock, shares outstanding (in shares) | 20,788,544 | 20,485,043 |
Treasury stock (in shares) | 37,692 | 82,692 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements (Unaudited) - USD ($) | 9 Months Ended | |
Oct. 04, 2015 | Sep. 28, 2014 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (21,723,000) | $ 863,000 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 7,022,000 | 7,987,000 |
Deferred income taxes | 2,436,000 | 0 |
Stock-based compensation expense | 717,000 | 1,235,000 |
Deferred revenue recognized | (4,200,000) | (6,493,000) |
Deferred loan costs recognized | 1,929,000 | 58,000 |
Gain on sale of assets | (7,423,000) | (4,000) |
Provision for excess and obsolete inventory | 1,305,000 | 897,000 |
Other noncash items | (1,478,000) | (135,000) |
Contributions to pension plans | (315,000) | (907,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 23,384,000 | (23,041,000) |
Inventory | 2,154,000 | (1,955,000) |
Other current assets | (4,332,000) | (835,000) |
Accounts payable | (12,051,000) | 22,993,000 |
Accrued and other liabilities | 860,000 | 5,376,000 |
Net cash (used in) provided by operating activities | (11,715,000) | 6,039,000 |
Cash flows from investing activities: | ||
Capital expenditures, net | (1,155,000) | (4,462,000) |
Proceeds from sale of assets | 15,700,000 | 8,000 |
Net cash provided by (used in) investing activities | 14,545,000 | (4,454,000) |
Cash flows from financing activities: | ||
Net change in debt under revolving credit agreements | (10,738,000) | 1,000,000 |
Proceeds from note payable – related party | 5,500,000 | 0 |
Debt modification costs | (2,335,000) | 0 |
Common stock repurchases | 0 | (357,000) |
Indirect repurchase of shares for minimum statutory tax withholdings | (77,000) | (420,000) |
Cash dividends paid | (410,000) | (1,225,000) |
Proceeds from issuance of common stock | 0 | 4,000 |
Net cash used in financing activities | (8,060,000) | (998,000) |
Net (decrease) increase in cash and cash equivalents | (5,230,000) | 587,000 |
Cash and cash equivalents at beginning of period | 7,003,000 | 18,674,000 |
Cash and cash equivalents at end of period | $ 1,773,000 | $ 19,261,000 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | (1) Nature of Business All references to “Sypris,” the “Company,” “we” or “our” include Sypris Solutions, Inc. and its wholly-owned subsidiaries. Sypris is a diversified provider of outsourced services and specialty products. The Company performs a wide range of manufacturing, engineering, design, and other technical services, often under multi-year, sole-source contracts with corporations and government agencies in the markets for truck components and assemblies and aerospace and defense electronics. The Company provides such services through its two segments, Sypris Technologies, Inc. (Sypris Technologies) and Sypris Electronics, LLC (Sypris Electronics). See Note 13, “Segment Data,” to the consolidated financial statements. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | (2) Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Sypris Solutions, Inc. and its wholly-owned subsidiaries, and have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission. The Company’s operations are domiciled in the United States (U.S.), Mexico and the United Kingdom (U.K.) and serve a wide variety of domestic and international customers. All intercompany transactions and accounts have been eliminated. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state the results of operations, financial position and cash flows for the periods presented, and the disclosures herein are adequate to make the information presented not misleading. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses (see, e.g., Note 12 “Debt,” to the consolidated financial statements) . Actual results for the three and nine months ended October 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2014 as presented in the Company’s Annual Report on Form 10-K. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | (3 ) Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that revises the definition of a discontinued operation. The revised definition limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on operations and financial results. The guidance also requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance will apply to covered transactions that occur after 2014 and was optional for the initial reporting of disposals completed or approved in 2014. The Company adopted the standard effective January 1, 2015. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” This ASU supersedes the revenue recognition requirements in “Accounting Standard Codification 605 - Revenue Recognition” and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance will also require new disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 was originally effective for us on January 1, 2017; however, in July 2015 the FASB decided to defer the effective date by one year. Early application is not permitted, but reporting entities may choose to adopt the standard as of the original effective date. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its results of operations, financial position and cash flows. In August 2014, the FASB issued ASU No. 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, and to provide certain disclosures when it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. ASU 2014-15 is effective for the annual period ended December 31, 2016 and for annual periods and interim periods thereafter with early adoption permitted. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 changes the presentation of debt issuance costs for term debt in the balance sheet by requiring the debt issuance costs to be presented as a direct deduction from the related debt liability, rather than recorded as an asset. The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2015, and interim periods within those annual periods and will need to be applied retrospectively. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition . In July 2015, the FASB issued ASU No. 2015-11, which simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with a lower of cost or net realizable value test. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance must be applied prospectively. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years and interim reporting periods within those fiscal years, beginning after December 15, 2015. Prospective adoption is required. This ASU is not expected to have a material impact on the Company's consolidated financial statements. |
Note 4 - Management's Plans
Note 4 - Management's Plans | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | ( 4 ) Management’s Plans Our supply agreement with Dana Holding Corporation (“Dana”) was originally scheduled to expire on December 31, 2014. For the year ended December 31, 2014, Dana represented approximately 59% of our net revenue. In July 2013, Sypris and Dana signed an amended and restated supply agreement to extend the supply agreement term beyond December 31, 2014, the binding effect of which is currently in dispute. Dana has repudiated this July 2013 agreement, and Dana has ordered a minimal amount of components from us since December 31, 2014. Sypris disputes Dana’s ability to do so and is seeking to recover its lost margins and additional remedies with respect to the revenues to which Sypris was entitled under the renewed agreement. Dana initiated an ancillary action in Ohio state court challenging the arbitrability of the existence and enforceability of the amended and restated July 2013 supply agreement on January 17, 2014. The parties have conducted discovery, and the Ohio trial court has granted an initial motion for judgment on the pleadings or summary judgment, which Sypris has appealed. If the case goes to trial and if ruled in the Company’s favor, the dispute would revert to an arbitrator to determine damages. Additionally, the parties also asserted various damages claims against each other arising out of their prior supply agreement and sought the assistance of an arbitrator in connection with these disputes. The parties had an arbitration hearing in January 2015, and the ruling was received on April 29, 2015, awarding Sypris $505,000. As a result of these disputes with Dana and the loss of the Dana business, the Company has taken significant actions during the fourth quarter of 2014 and the first nine months of 2015, including but not limited to the following: (i) selling certain assets used in the Company’s manufacturing facility in Morganton, North Carolina within the Sypris Technologies segment (ii) bid on significant new business opportunities with existing and potential customers resulting from the strength of the commercial vehicle market and a perceived shift in market share among tier one suppliers, (iii) reduced workforce at the locations most impacted by the loss of Dana, (iv) reduced employment costs by reduced work schedules, senior management pay reductions, deferral of merit increases and certain benefit payments, and (v) utilized labor for preventative maintenance on equipment and facilities, and deployment of Toyota Production System management and production practices. The Company is in the advanced stages of negotiations with several customers about potential new programs, although the typical cycle time for adding such programs can require six months or more. The Company engaged an investment banking firm who provided financial advisory services in connection with its successful effort to secure new loan agreements and a financial advisor to assist in the management of the Company’s cash flows and expense levels. Separately, the Company has engaged Needham & Co., Inc. to assist in the potential sale of other appropriate business lines. The Company has also engaged a commercial real estate firm to provide advisory and brokerage services related to the potential disposition of certain real property owned by the Company. There can be no assurance that our plans to mitigate the loss of the Dana business and to effectively manage our costs during the transition will be successful. The Company amended its Credit Facility in March, July and September 2015, the most recent of which provided for borrowings up to $8,500,000 through October 30, 2015. On October 30, 2015, the Company secured debt financing of up to $27,000,000 that supports short-term funding needs, which replaced the Company’s Credit Facility and Meritor Note, which expired on October 30, 2015. See Note 12 “Debt,” to the consolidated financial statements for more detail on the Credit Facility, these recent amendments to the Credit Facility, our other debt arrangements and our current liquidity position. Since the loss of the Dana business, the Company has also experienced negative cash flow from operating activities which could hamper or materially increase the costs of the Company’s ability to comply with various covenants. T he Company’s consolidated financial statements have been prepared assuming the ongoing realization of assets, satisfaction of liabilities and continuity of operations as a going concern in the ordinary course of business. These assumptions are based upon the Company’s current initiatives and forecasts, including the launch of new products and services to replace legacy programs, and the execution of our ongoing, contingency planning efforts to reduce operating costs if our forecasted revenues do not materialize. However, there can be no assurances that these initiatives, forecasts and plans will ultimately prove to have been accurate or successful, and our failure or inability to realize our key financial objectives could materially and adversely impair the Company’s ability to operate, its cash flows, financial condition and ongoing results . |
Note 5 - Morganton Sale
Note 5 - Morganton Sale | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ( 5 ) Morganton Sale On July 9, 2015, the Company entered an asset purchase agreement (the “Agreement”) to sell certain assets used in the Company’s manufacturing facility in Morganton, North Carolina, to its largest customer, Meritor, Inc. (“Meritor”). The Company retained the Morganton plant’s axle shaft manufacturing lines and certain related assets, intellectual property and inventories, which was transitioned to the Company’s Louisville, Kentucky plant in October 2015. All other Morganton equipment, related assets and intellectual property were sold to Meritor (the “Morganton Sale”) for $10,500,000 in cash paid at the closing and other consideration. Meritor purchased related inventories and accounts receivable and assumed or released certain accounts payable and other accrued liabilities, for $2,000,000 (subject to customary post-closing adjustments to actual). Meritor also agreed to purchase the Morganton facility for $3,200,000. The total proceeds received of $15,700,000 in consideration for the Morganton sale was used to pay down the Company’s outstanding debt with PNC Bank, National Association (“PNC”). As a result of the Morganton sale, the Company recognized a gain of $7,744,000. At closing, the parties also entered into a Meritor Note Amendment, whereby the Company has issued an additional secured obligation to Meritor of $412,000 on July 9, 2015. The parties also agreed to increase the Meritor Note by an additional $321,000 in September to reflect certain roof repairs required at the Morganton facility. The Company repaid the Meritor Note on October 30, 2015. See Note 12 “Debt,” to the consolidated financial statements for more detail on the Meritor Note. |
Note 6 - Milestone Revenue Reco
Note 6 - Milestone Revenue Recognition | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Milestone Revenue Recognition [Text Block] | ( 6 ) Milestone Revenue Recognition The Company periodically enters into research and development contracts with customers related primarily to key encryption products. When the contracts provide for milestone or other interim payments, the Company will recognize revenue under the milestone method in accordance with Accounting Standards Codification (“ASC”) 605-28 Revenue Recognition, Milestone Method |
Note 7 - Dana Claim
Note 7 - Dana Claim | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Extraordinary Items Disclosure [Text Block] | ( 7 ) Dana Claim On March 3, 2006, Dana and 40 of its U.S. subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. On August 7, 2007, the Company entered into a comprehensive settlement agreement with Dana to resolve all outstanding disputes between the parties, terminate previously approved arbitration payments and replace three existing supply agreements with a single, revised contract running through 2014. In addition, Dana provided the Company with an allowed general unsecured non-priority claim in the face amount of $89,900,000 (the “Claim”). The Claim provided to the Company was agreed to by the Company and Dana as consideration for the aggregate economic impact of the various elements the two parties were negotiating. After the aggregate Claim value of $89,900,000 was established, the Company recorded the claim at the estimated fair value of $76,483,000 and allocated the estimated fair value to each commercial issue negotiated. The revenues and resulting net income associated with each of those issues requiring the Company’s continued involvement were deferred and were recognized over the applicable period of the involvement. For the nine months ended September 28, 2014, the Company recognized into revenue $6,493,000 related to the Claim. The Claim was fully amortized as of December 31, 2014. |
Note 8 - Other Income, Net
Note 8 - Other Income, Net | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | ( 8 ) Other Income, Net During the three and nine months ended October 4, 2015, the Company recognized other income of $7,841,000 and $8,595,000, respectively, which consisted primarily of a gain of $7,744,000 related to the Morganton sale (see Note 5 “Morganton Sale” to the consolidated financial statement in this Form 10-Q). Additionally, during the nine months ended October 4, 2015, the Company recognized $505,000 related to an arbitration settlement in the Dana dispute received in the second quarter (see Note 4 During the nine months ended September 28, 2014, the Company recognized net gains of $714,000 within the Sypris Technologies segment from the receipt of federal grant funds for improvements made under a flood relief program. Additionally, for the three and nine months ended September 28, 2014, the Company recognized foreign currency translation gains of $314,000 and $219,000, respectively. |
Note 9 - Earnings (Loss) Per Co
Note 9 - Earnings (Loss) Per Common Share | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 9 ) E arnings (Loss) Per Common Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three and nine months ended October 4, 2015, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive. For the three months ended September 28, 2014, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive. There were 786,000 potential common shares excluded from diluted earnings per share for the nine months ended September 28, 2014. A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted earnings (loss) per common share is as follows (in thousands): Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) (Loss) income attributable to stockholders: Net (loss) income as reported $ (274 ) $ (1,159 ) $ 21,723 ) $ 863 Less dividends declared attributable to restricted award holders 0 (15 ) 0 (46 ) Net (loss) income allocable to common stockholders $ (274 ) $ (1,174 ) $ (21,723 ) $ 817 (Loss) income per common share attributable to stockholders: Basic $ (0.01 ) $ (0.06 ) $ (1.10 ) $ 0.04 Diluted $ (0.01 ) $ (0.06 ) $ (1.10 ) $ 0.04 Weighted average shares outstanding – basic 19,654 19,612 19,684 19,564 Weighted average additional shares assuming conversion of potential common shares 0 0 0 43 Weighted average shares outstanding – diluted 19,654 19,612 19,684 19,607 |
Note 10 - Inventory
Note 10 - Inventory | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | ( 10 ) Inventory Inventory consists of the following (in thousands): October 4 , December 31, 201 5 201 4 (Unaudited) Raw materials $ 14,312 $ 16,687 Work in process 11,709 11,702 Finished goods 4,109 6,991 Reserve for excess and obsolete inventory (6,782 ) (6,349 ) $ 23,348 $ 29,031 |
Note 11 - Property, Plant and E
Note 11 - Property, Plant and Equipment | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (11 ) Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): October 4 , December 31, 201 5 201 4 (Unaudited) Land and land improvements $ 1,819 $ 2,770 Buildings and building improvements 21,935 26,055 Machinery, equipment, furniture and fixtures 125,898 158,816 Construction in progress 782 2,100 150,434 189,741 Accumulated depreciation (123,970 ) (152,087 ) $ 26,464 $ 37,654 |
Note 12 - Debt
Note 12 - Debt | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | (12 ) Long-Term Debt Long-term debt consists of the following: October 4 , December 31, 201 5 201 4 (Unaudited) Revolving credit facility $ 6,262 $ 17,000 Note payable – Meritor 3,780 0 Note payable – related party 5,500 0 15,542 17,000 Less current portion 2,893 17,000 $ 12,649 $ 0 Revolving Credit Facility: The Company’s Revolving Credit and Security Agreement, dated May 12, 2011 with PNC (which we refer to as the "Loan Agreement" or our “Credit Facility”) was amended during the first quarter of 2015 to, among other things: (i) waive certain existing or potential events of default, (ii) limit total borrowings to $25,000,000, (iii) restrict the payment of dividends, (iv) increase the applicable margin on borrowings which will result in an initial interest rate of approximately 6% and increasing by 50 basis points beginning June 2015 and each month thereafter to an estimated interest rate of 10% in January 2016, (v) revise the maturity date to January 15, 2016, (vi) revise certain financial covenants to include a minimum cumulative free cash flow covenant, (vii) establish minimum excess availability of $1,000,000 initially, through May 31, 2015, and then in the amount of up to $5,000,000 on or before September 30, 2015, and (viii) require the Company to raise new capital by securing subordinated debt or divesting certain real property or a combination thereof on or before September 30, 2015 (and, if earlier than September 30, 2015, to maintain minimum excess availability of up to $5,000,000 thereafter). Obligations under the Credit Facility are guaranteed by all of our U.S. subsidiaries and are secured by a first priority lien on substantially all domestic assets of the Company. The Company engaged an investment banking firm on March 20, 2015 to provide financial advisory services in connection with its efforts to secure new subordinated debt. The Company also engaged a commercial real estate firm to provide advisory and brokerage services related to a potential disposition of certain real property owned by the Company. On July 2, 2015, the Company further amended its Credit Facility to reduce the reserved amount available to be borrowed under the Loan Agreement from $25,000,000 to $22,500,000 prior to the sale of certain assets used in the Company’s manufacturing business in Morganton, North Carolina (see Note 13, “Morganton Sale,” to the consolidated financial statements), and to further reduce such reserved amount to $10,000,000 after the Morganton Sale. The Amendment also waives certain existing or potential events of default under the Loan Agreement, amends the Company’s borrowing base formula, relaxes the Company’s financial covenants to reflect its near term forecasts, and commits the Company to repay all amounts borrowed under the Loan Agreement on or before September 30, 2015 and to take a number of mutually agreed actions designed to accomplish that goal, including the continued retention of various advisers to assist in the Company’s efforts to divest non-core, underutilized or other appropriate assets and to modify its cost structure as needed, and the completion of the Morganton Sale. The Company agreed to pay PNC a fee of $500,000 in connection with the execution of the Amendment and a success fee of $500,000 on September 30, 2015 (or upon any earlier acceleration or repayment of the Loan Agreement). On September 30, 2015, the Company further amended its Credit Facility to reduce the reserved amount available to be borrowed under the Loan Agreement from $10,000,000 to $8,500,000 and extend the maturity date from September 30, 2015 to October 30, 2015 in order to provide the Company with additional time to refinance its obligations to PNC with another lender. The Company agreed to continue its efforts to refinance its obligations to PNC and agreed to pay the Lender a fee of $500,000 in the event a new lending arrangement was not in place by October 30, 2015. 11 Actual borrowing availability under the Credit Facility was determined by a daily borrowing base collateral calculation that is based on specified percentages of the value of eligible accounts receivable, inventory and machinery and equipment, less certain reserves and subject to certain other adjustments. Based on that calculation, at October 4, 2015, we had actual total borrowing availability under the Credit Facility of $8,500,000, of which we had drawn $6,262,000, leaving $2,238,000 available for borrowing. Standby letters of credit up to a maximum of $5,000,000 could be issued under the Credit Facility. There were no outstanding letters of credit at October 4, 2015 and $755,000 was outstanding at December 31, 2014. On October 30, 2015, all outstanding principal and interest obligations outstanding under the Credit Facility were repaid in full in conjunction with the Company’s new financing agreements. The Credit Facility was replaced by the new financing agreements. Note Payable – Related Party In connection with the amendments to the Credit Facility, the Company has received the proceeds of subordinated indebtedness from Gill Family Capital Management in an amount of $5,500,000. Gill Family Capital Management (GFCM) is an entity controlled by our president and chief executive officer, Jeffrey T. Gill and one of our directors, R. Scott Gill. Gill Family Capital Management, Inc., Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. The promissory note bears interest at a rate of 8.00% per year. All principal and interest on the promissory note will be due and payable at maturity. On October 30, 2015, the Company amended the GFCM note to extend the maturity date from April 12, 2016 to January 30, 2019. Note Payable – Meritor On July 2, 2015, the Company entered into a secured promissory note (the “Meritor Note”) in the principal amount of $3,047,000, with Meritor, in exchange for the release of certain outstanding net trade payables owed to Meritor for ongoing purchases of raw materials and the guarantee of certain inventory values related to Meritor’s business as collateral under the Credit Facility. The Meritor Note was secured by substantially all of the collateral for the Credit Facility, was senior to the promissory note previously issued to GFCM and was subordinate to the rights under the Credit Facility. The Meritor Note bears interest at a rate of 10.0% per year and all principal and interest on the Meritor Note was due and payable on the maturity date. On July 9, 2015, the Company entered an asset purchase agreement to sell certain assets and related liabilities used in the Company’s manufacturing facility in Morganton, North Carolina, to Meritor for $12,500,000. Meritor also agreed to purchase the Morganton facility for $3,200,000. At closing, the parties also entered into a Meritor Note Amendment, whereby the Company issued an additional secured obligation to Meritor of $412,000 on July 9, 2015 for the release of certain outstanding net trade payables and other accrued liabilities and further agreed to increase the Meritor Note by an additional $320,000 in September to reflect certain potential roof repairs required at the Morganton facility. On September 30, 2015, the Meritor Note was amended to extend the maturity date from September 30, 2015 to October 30, 2015 or upon any earlier acceleration or repayment of the Credit Facility. On October 30, 2015, the Meritor Note and interest were repaid in full in conjunction with the Company’s new financing agreements. New Credit Facility and Term Loan On October 30, 2015, the Company secured debt financing consisting of a $12,000,000 term loan (“Term Loan”) and a $15,000,000 revolving credit facility (“New Credit Facility”). Proceeds from the two new financing arrangements (collectively the “New Loan Agreements”) were used to repay the Credit Facility and the Meritor Note. Borrowing availability under the New Credit Facility is determined by a weekly borrowing base collateral calculation that is based on specified percentages of the value of eligible accounts receivable and inventory, less certain reserves and subject to certain other adjustments (see Note 19 “Subsequent Events”). Borrowing availability under the Term Loan is also evaluated using a separate borrowing base collateral calculation that includes designated percentages of real estate, machinery and equipment appraisals, in each case less certain reserves and subject to certain other adjustments; if the appraised values of such collateral causes the Term Loan borrowing base to fall below the then current Term Loan balance, the Company can be required to make a partial prepayment of such difference and related fees. Obligations under the New Loan Agreements are guaranteed by all of our U.S. subsidiaries and are secured by a first priority lien on substantially all assets of the Company. 12 The New Loan Agreements contain a number of affirmative, negative and financial maintenance covenants, representations, warranties, events of default and remedies upon default, including acceleration and rights to foreclose on the collateral securing each lender. Among other covenants, the New Loan Agreements require the Company to use its best efforts to enter a satisfactory sale-leaseback of the Toluca, Mexico property and buildings, and upon closing any such transaction, to prepay on the Term Loan, either $5,000,000 or all net cash proceeds, at the election of the term lender. (Under certain circumstances, the Company may also satisfy the foregoing requirement by depositing $5,000,000 of such net cash proceeds into a controlled cash collateral account; however, if such sale-leaseback transaction has not closed before April 30, 2016, then the Company must contribute $5,000,000 in alternative proceeds from the sale of new equity, subordinated debt or certain permitted collateral assets.) If the Company’s borrowing availability under the New Credit Facility falls below $4,000,000, the Company must maintain a fixed charge coverage ratio of at least 1 to 1, as measured on a trailing twelve months’ basis. Non-compliance with the Company’s debt covenants would provide the debt holders with certain contractual rights, including the right to demand immediate repayment of all outstanding borrowings. Since the loss of the Dana business (see Note 4 “ Management’s Plans” ), the Company has also experienced negative cash flows from operating activities which could hamper or materially increase the costs of the Company’s ability to comply with such covenants. T he Company’s consolidated financial statements have been prepared assuming the ongoing realization of assets, satisfaction of liabilities and continuity of operations as a going concern in the ordinary course of business, but there can be no assurances that the Company’s current initiatives, forecasts and plans will ultimately succeed, which could materially and adversely impair the Company’s ability to operate, its cash flows, financial condition and ongoing results. The classification of debt as of October 4, 2015 considers the debt refinanced on a long-term basis. However, the New Credit Facility allows the lender to accelerate payment in the event of a “material adverse change.” Because such an event is not objectively measureable in advance and because the Company is required to maintain a lock-box arrangement, ASC 470-10-45 requires the otherwise long-term revolving advances to be classified as a current liability. As a result, all borrowings under the revolving advances have been classified in the accompanying consolidated balance sheets as a current liability. |
Note 13 - Segment Data
Note 13 - Segment Data | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 13) Segment Data The Company is organized into two business groups, Sypris Technologies and Sypris Electronics. These segments are each managed separately because of the distinctions between the products, services, markets, customers, technologies and workforce skills of the segments. Sypris Technologies provides manufacturing services for a variety of customers that outsource forged and finished steel components and subassemblies. Sypris Technologies also manufactures high-pressure closures and other fabricated products. Sypris Electronics provides manufacturing and technical services as an outsourced service provider and manufactures complex data storage systems, trusted solutions for identity management, cryptographic key distribution and cyber analytics. There was no intersegment net revenue recognized in any of the periods presented. The following table presents financial information for the reportable segments of the Company (in thousands): Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 27,824 $ 82,555 $ 87,904 $ 242,104 Sypris Electronics 10,613 7,649 28,298 25,457 $ 38,437 $ 90,204 $ 116,202 $ 267,561 Gross profit (loss): Sypris Technologies $ 1,973 $ 9,299 $ (1,550 ) $ 31,836 Sypris Electronics 495 (1,090 ) 827 (2,236 ) $ 2,468 $ 8,209 $ (723 ) $ 29,600 Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) Operating (loss) income: Sypris Technologies $ (609 ) $ 5,373 $ (12,347 ) $ 20,526 Sypris Electronics (1,515 ) (3,645 ) (6,216 ) (9,890 ) General, corporate and other (1,953 ) (1,908 ) (6,244 ) (6,719 ) $ (4,077 ) $ (180 ) $ (24,807 ) $ 3,917 October 4 , December 31, 201 5 201 4 (Unaudited) Total assets: Sypris Technologies $ 45,184 $ 95,108 Sypris Electronics 25,084 26,874 General, corporate and other 2,406 7,699 $ 72,674 $ 129,681 |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 14 ) Commitments and Contingencies The provision for estimated warranty costs is recorded at the time of sale and periodically adjusted to reflect actual experience. The Company’s warranty liability, which is included in accrued liabilities in the accompanying balance sheets as of October 4, 2015 and December 31, 2014, was $808,000 and $825,000, respectively. The Company’s warranty expense for the nine months ended October 4, 2015 and September 28, 2014 was $112,000 and $108,000, respectively. Additionally, the Company sells three and five-year extended warranties for one of its link encryption products. The revenue from the extended warranties is deferred and recognized ratably over the contractual term. As of October 4, 2015 and December 31, 2014, the Company had deferred $579,000 and $839,000, respectively, related to extended warranties. The Company bears insurance risk as a member of a group captive insurance entity for certain general liability, automobile and workers’ compensation insurance programs and a self-insured employee health program. The Company records estimated liabilities for its insurance programs based on information provided by the third-party plan administrators, historical claims experience, expected costs of claims incurred but not paid, and expected costs to settle unpaid claims. The Company monitors its estimated insurance-related liabilities on a quarterly basis. As facts change, it may become necessary to make adjustments that could be material to the Company’s consolidated results of operations and financial condition. The Company believes that its present insurance coverage and level of accrued liabilities are adequate. As of October 4, 2015, the Company had outstanding purchase commitments of approximately $6,515,000, primarily for the acquisition of inventory and manufacturing equipment. The Company is involved in certain litigation and contract issues arising in the normal course of business. As a result, contingencies may arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible loss. The Company accounts for loss contingencies in accordance with GAAP. Estimated loss contingencies are accrued only if the loss is probable and the amount of the loss can be reasonably estimated. With respect to a particular loss contingency, it may be probable that a loss has occurred but the estimate of the loss is within a wide range or undeterminable. If the Company deems an amount within the range to be a better estimate than any other amount within the range, that amount will be accrued. However, if no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued. The Company’s lease for its Tampa, FL facility will expire on December 31, 2016 unless the Company exercises its option to renew a five year extension prior to December 31, 2015. If the Company does not exercise this option, it is reasonably possible that the Company may be required to make certain repairs to the facility, which may be significant. While the Company believes that a potential loss contingency may exist, it cannot currently estimate the amount of the contingency. The Company believes that a reasonable determination of the loss will be possible if the Company chooses not to exercise the lease term extension. If the Company chooses to exercise the extension option, any costs incurred would be capitalized as a leasehold improvement and amortized over the remaining term of the lease. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 15 ) Income Taxes The provision for income taxes includes federal, state, local and foreign taxes. The Company’s effective tax rate varies from period to period due to the proportion of foreign and domestic pre-tax income expected to be generated by the Company. The Company provides for income taxes for its domestic operations at a statutory rate of 35% and for its foreign operations at a statutory rate of 30% in 2015 and 2014. The Company’s foreign operations are also subject to minimum income taxes in periods prior to 2015 where positive cash flows exceed taxable income. Reconciling items between the federal statutory rate and the effective tax rate also include the expected usage of federal net operating loss carryforwards, state income taxes, valuation allowances and certain other permanent differences. The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements in accordance with ASC 740, Income Taxes As a result of the increased uncertainty surrounding the Company’s forecast of taxable income in Mexico, it was determined that the Company no longer met the “more likely than not” threshold required under ASC 740-10 in order to maintain the Mexico deferred tax asset. Accordingly, the Company recorded a valuation allowance on its net deferred tax asset related to certain non-U.S. tax benefits, resulting in deferred tax expense of $2,436,000 during the third quarter ended October 4, 2015. Until an appropriate level and characterization of profitability is attained, the Company expects to continue to maintain a valuation allowance on its net deferred tax assets related to future U.S. and non-U.S. tax benefits. The Company expects to repatriate available non-U.S. cash holdings in 2016 to support management’s strategic objectives and fund ongoing U.S. operational cash flow requirements; therefore current earnings from non-U.S. operations are not treated as permanently reinvested. The U.S. income tax expense recorded in 2015 on these non-U.S. earnings is expected to be offset by the benefit of a partial release of a valuation allowance on U.S. |
Note 16 - Employee Benefit Plan
Note 16 - Employee Benefit Plans | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (1 6 ) Employee Benefit Plans Pension expense (benefit) consisted of the following (in thousands): Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) Service cost $ 3 $ 3 $ 10 $ 9 Interest cost on projected benefit obligation 423 447 1,268 1,342 Net amortizations, deferrals and other costs 173 133 520 398 Expected return on plan assets (561 ) (599 ) (1,683 ) (1,798 ) $ 38 $ (16 ) $ 115 $ (49 ) |
Note 17 - Accumulated Other Com
Note 17 - Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (1 7 ) Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss consists of employee benefit-related adjustments and foreign currency translation adjustments. Accumulated other comprehensive loss consisted of the following (in thousands): October 4 , December 31, 201 5 201 4 (Unaudited) Foreign currency translation adjustments $ (9,313 ) $ (7,265 ) Employee benefit related adjustments – U.S. (17,584 ) (17,584 ) Employee benefit related adjustments – Mexico (186 ) (186 ) Accumulated other comprehensive loss $ (27,083 ) $ (25,035 ) |
Note 18 - Fair Value of Financi
Note 18 - Fair Value of Financial Instruments | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | ( 1 8 ) Fair Value of Financial Instruments Cash, accounts receivable, accounts payable and accrued liabilities are reflected in the consolidated financial statements at their carrying amount which approximates fair value because of the short-term maturity of those instruments. The carrying amount of debt outstanding at October 4, 2015 under the Credit Facility, the Meritor Note and the related party note payable approximates fair value because borrowings mature between October 2015 and April 2016. |
Note 19 - Subsequent Events
Note 19 - Subsequent Events | 9 Months Ended |
Oct. 04, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (1 9 ) Subsequent Events On October 30, 2015, the Company entered into New Loan Agreements providing for a $12,000,000 Term Loan and a $15,000,000 New Credit Facility. See Note 12 “Debt,” to the consolidated financial statements for more detail on the New Loan Agreements, the New Credit Facility and the Term Loan. Proceeds from New Loan Agreements were used to repay the Credit Facility and the Meritor Note. Interest will accrue on the New Credit Facility at an annual rate of 2.50% above a “Base Rate” equal to the greatest of the “Prime Rate” published in the Wall Street Journal, the Federal Funds Rate plus 0.5%, or 3.25%, and on the Term Loan at an annual rate of 9% above the same Base Rate. The Company must also pay an unused facility fee (currently set at 0.5%) under the New Credit Facility if utilization under the facility is less than the maximum borrowing availability, among other fees due to each lender. Loans made under the New Loan Agreements will mature and the commitments thereunder will terminate in October 2018. Specific borrowing availability levels under the New Loan Agreements are determined by a borrowing base collateral calculation that includes designated percentages of eligible inventory values and accounts receivable for the New Credit Facility, and, in the case of the Term Loan, designated percentages of real estate, machinery and equipment valuations, in each case less certain reserves and subject to certain other adjustments. Borrowing availability under the Term Loan is also evaluated using a separate borrowing base collateral calculation that includes designated percentages of real estate, machinery and equipment appraisals, in each case less certain reserves and subject to certain other adjustments; if the appraised values of such collateral causes the Term Loan borrowing base to fall below the then current Term Loan balance, the Company can be required to make a partial prepayment of such difference and related fees. Obligations under the New Credit Facility and Term Loan are guaranteed by all of our U.S. subsidiaries and are secured by a first priority lien on substantially all assets of the Company. The New Loan Agreements contain a number of affirmative, negative and financial maintenance covenants, representations, warranties, events of default and remedies upon default, including acceleration and rights to foreclose on the collateral securing each lender. Among other covenants, the New Loan Agreements require the Company to use its best efforts to enter a satisfactory sale-leaseback of the Toluca, Mexico property and buildings, and upon closing any such transaction, to prepay on the Term Loan, either $5,000,000 or all net cash proceeds, at the election of the term lender. (Under certain circumstances, the Company may also satisfy the foregoing requirement by depositing $5,000,000 of such net cash proceeds into a controlled cash collateral account; however, if such sale-leaseback transaction has not closed before April 30, 2016, then the Company must contribute $5,000,000 in alternative proceeds from the sale of new equity, subordinated debt or certain permitted collateral assets.) If the Company’s borrowing availability under the New Credit Facility falls below $4,000,000, the Company must maintain a fixed charge coverage ratio of at least 1 to 1, as measured on a trailing twelve months’ basis. On October 30, 2015, the Company entered into a non-binding letter of intent to sell and lease-back its land and facility in Mexico, which is part of Sypris Technologies. The purchase price is expected to be $13,000,000, with $5,200,000 to be paid upon signing of the definitive purchase agreement and the remaining amount to be paid upon closing. The closing is scheduled to occur no later than March 15, 2016. The non-binding term sheet provides that a portion of the proceeds will be used to pay down a portion of the Term Loan. The assets had a net book value of $3,316,000 as of October 4, 2015. The transaction is subject to the negotiation of definitive agreements and the Company can give no assurance that it will be successful in completing this sale on these terms. |
Note 9 - Earnings (Loss) Per 26
Note 9 - Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) (Loss) income attributable to stockholders: Net (loss) income as reported $ (274 ) $ (1,159 ) $ 21,723 ) $ 863 Less dividends declared attributable to restricted award holders 0 (15 ) 0 (46 ) Net (loss) income allocable to common stockholders $ (274 ) $ (1,174 ) $ (21,723 ) $ 817 (Loss) income per common share attributable to stockholders: Basic $ (0.01 ) $ (0.06 ) $ (1.10 ) $ 0.04 Diluted $ (0.01 ) $ (0.06 ) $ (1.10 ) $ 0.04 Weighted average shares outstanding – basic 19,654 19,612 19,684 19,564 Weighted average additional shares assuming conversion of potential common shares 0 0 0 43 Weighted average shares outstanding – diluted 19,654 19,612 19,684 19,607 |
Note 10 - Inventory (Tables)
Note 10 - Inventory (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | October 4 , December 31, 201 5 201 4 (Unaudited) Raw materials $ 14,312 $ 16,687 Work in process 11,709 11,702 Finished goods 4,109 6,991 Reserve for excess and obsolete inventory (6,782 ) (6,349 ) $ 23,348 $ 29,031 |
Note 11 - Property, Plant and28
Note 11 - Property, Plant and Equipment (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | October 4 , December 31, 201 5 201 4 (Unaudited) Land and land improvements $ 1,819 $ 2,770 Buildings and building improvements 21,935 26,055 Machinery, equipment, furniture and fixtures 125,898 158,816 Construction in progress 782 2,100 150,434 189,741 Accumulated depreciation (123,970 ) (152,087 ) $ 26,464 $ 37,654 |
Note 12 - Debt (Tables)
Note 12 - Debt (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | October 4 , December 31, 201 5 201 4 (Unaudited) Revolving credit facility $ 6,262 $ 17,000 Note payable – Meritor 3,780 0 Note payable – related party 5,500 0 15,542 17,000 Less current portion 2,893 17,000 $ 12,649 $ 0 |
Note 13 - Segment Data (Tables)
Note 13 - Segment Data (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 27,824 $ 82,555 $ 87,904 $ 242,104 Sypris Electronics 10,613 7,649 28,298 25,457 $ 38,437 $ 90,204 $ 116,202 $ 267,561 Gross profit (loss): Sypris Technologies $ 1,973 $ 9,299 $ (1,550 ) $ 31,836 Sypris Electronics 495 (1,090 ) 827 (2,236 ) $ 2,468 $ 8,209 $ (723 ) $ 29,600 Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) Operating (loss) income: Sypris Technologies $ (609 ) $ 5,373 $ (12,347 ) $ 20,526 Sypris Electronics (1,515 ) (3,645 ) (6,216 ) (9,890 ) General, corporate and other (1,953 ) (1,908 ) (6,244 ) (6,719 ) $ (4,077 ) $ (180 ) $ (24,807 ) $ 3,917 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | October 4 , December 31, 201 5 201 4 (Unaudited) Total assets: Sypris Technologies $ 45,184 $ 95,108 Sypris Electronics 25,084 26,874 General, corporate and other 2,406 7,699 $ 72,674 $ 129,681 |
Note 16 - Employee Benefit Pl31
Note 16 - Employee Benefit Plans (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Nine Months Ended October 4 , September 28 , October 4 , September 28 , 201 5 201 4 201 5 201 4 (Unaudited) (Unaudited) Service cost $ 3 $ 3 $ 10 $ 9 Interest cost on projected benefit obligation 423 447 1,268 1,342 Net amortizations, deferrals and other costs 173 133 520 398 Expected return on plan assets (561 ) (599 ) (1,683 ) (1,798 ) $ 38 $ (16 ) $ 115 $ (49 ) |
Note 17 - Accumulated Other C32
Note 17 - Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | October 4 , December 31, 201 5 201 4 (Unaudited) Foreign currency translation adjustments $ (9,313 ) $ (7,265 ) Employee benefit related adjustments – U.S. (17,584 ) (17,584 ) Employee benefit related adjustments – Mexico (186 ) (186 ) Accumulated other comprehensive loss $ (27,083 ) $ (25,035 ) |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) | 9 Months Ended |
Oct. 04, 2015 | |
Number of Operating Segments | 2 |
Note 4 - Management's Plans (De
Note 4 - Management's Plans (Details Textual) - USD ($) | Apr. 29, 2015 | Aug. 07, 2007 | Dec. 31, 2014 | Oct. 31, 2015 | Oct. 30, 2015 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Dana [Member] | |||||
Concentration Risk, Percentage | 59.00% | ||||
Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 27,000,000 | $ 8,500,000 | |||
Litigation Settlement, Amount | $ 505,000 | $ 89,900,000 |
Note 5 - Morganton Sale (Detail
Note 5 - Morganton Sale (Details Textual) - USD ($) | Jul. 09, 2015 | Sep. 30, 2015 |
Morganton [Member] | Certain Assets [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 10,500,000 | |
Morganton [Member] | Certain Assets and Liabilities [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 2,000,000 | |
Morganton [Member] | Morganton Facility [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 3,200,000 | |
Morganton [Member] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | 15,700,000 | |
Gain (Loss) on Disposition of Business | 7,744,000 | |
Meritor Note Amendment [Member] | ||
Secured Debt | $ 412,000 | $ 321,000 |
Note 6 - Milestone Revenue Re36
Note 6 - Milestone Revenue Recognition (Details Textual) - USD ($) | 9 Months Ended | |
Oct. 04, 2015 | Sep. 28, 2014 | |
Revenue Recognition, Milestone Method, Revenue Recognized | $ 300,000 | $ 2,375,000 |
Note 7 - Dana Claim (Details Te
Note 7 - Dana Claim (Details Textual) | Apr. 29, 2015USD ($) | Aug. 07, 2007USD ($) | Sep. 28, 2014USD ($) | Mar. 03, 2006 |
Fair Value [Member] | ||||
Litigation Settlement, Amount | $ 76,483,000 | |||
Number of Subsidiaries of Client | 40 | |||
Number of Supply Commitments Replaced | 3 | |||
Bankruptcy Claims, Amount of Claims Filed | $ 89,900,000 | |||
Litigation Settlement, Amount | $ 505,000 | $ 89,900,000 | ||
Deferred Revenue, Revenue Recognized | $ 6,493,000 |
Note 8 - Other Income, Net (Det
Note 8 - Other Income, Net (Details Textual) - USD ($) | Jul. 09, 2015 | Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 |
Morganton [Member] | |||||
Gain (Loss) on Disposition of Assets | $ 7,744,000 | ||||
Other Nonoperating Income (Expense) [Member] | Sypris Technologies [Member] | |||||
Gain (Loss) on Disposition of Assets | $ 714,000 | ||||
Other Nonoperating Income (Expense) [Member] | |||||
Gain (Loss) Related to Litigation Settlement | $ 505,000 | ||||
Foreign Currency Transaction Gain (Loss), Realized | 105,000 | $ 314,000 | $ 276,000 | 219,000 | |
Other Nonoperating Income (Expense) | $ 7,841,000 | $ 397,000 | $ 8,595,000 | $ 850,000 |
Note 9 - Earnings (Loss) Per 39
Note 9 - Earnings (Loss) Per Common Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 786,000 |
Note 9 - Earnings (Loss) Per 40
Note 9 - Earnings (Loss) Per Common Share - Reconciliation of Weighted Average Shares Outstanding Used in Calculation of Basic and Diluted (Loss) Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
(Loss) income attributable to stockholders: | ||||
Net (loss) income as reported | $ (274,000) | $ (1,159,000) | $ (21,723,000) | $ 863,000 |
Less dividends declared attributable to restricted award holders | 0 | (15,000) | 0 | (46,000) |
Net (loss) income allocable to common stockholders | $ (274,000) | $ (1,174,000) | $ (21,723,000) | $ 817,000 |
(Loss) income per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ (0.06) | $ (1.10) | $ 0.04 |
Diluted (in dollars per share) | $ (0.01) | $ (0.06) | $ (1.10) | $ 0.04 |
Basic (in shares) | 19,654,000 | 19,612,000 | 19,684,000 | 19,564,000 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 0 | 0 | 43,000 |
Weighted average shares outstanding – diluted (in shares) | 19,654,000 | 19,612,000 | 19,684,000 | 19,607,000 |
Note 10 - Inventory - Inventory
Note 10 - Inventory - Inventory Components (Details) - USD ($) | Oct. 04, 2015 | Dec. 31, 2014 |
Raw materials | $ 14,312,000 | $ 16,687,000 |
Work in process | 11,709,000 | 11,702,000 |
Finished goods | 4,109,000 | 6,991,000 |
Reserve for excess and obsolete inventory | (6,782,000) | (6,349,000) |
Total | $ 23,348,000 | $ 29,031,000 |
Note 11 - Property, Plant and42
Note 11 - Property, Plant and Equipment - Property, Plant and Equipment Components (Details) - USD ($) | Oct. 04, 2015 | Dec. 31, 2014 |
Land and Land Improvements [Member] | ||
Land and land improvements | $ 1,819,000 | $ 2,770,000 |
Building and Building Improvements [Member] | ||
Land and land improvements | 21,935,000 | 26,055,000 |
Property, Plant and Equipment, Other Types [Member] | ||
Land and land improvements | 125,898,000 | 158,816,000 |
Construction in Progress [Member] | ||
Land and land improvements | 782,000 | 2,100,000 |
Land and land improvements | 150,434,000 | 189,741,000 |
Accumulated depreciation | (123,970,000) | (152,087,000) |
Property plant and equipment net | $ 26,464,000 | $ 37,654,000 |
Note 12 - Debt (Details Textual
Note 12 - Debt (Details Textual) | Oct. 30, 2015USD ($) | Jul. 09, 2015USD ($) | Dec. 31, 2015USD ($) | Oct. 04, 2015USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 29, 2015USD ($) | Jul. 02, 2015USD ($) | Dec. 31, 2014USD ($) |
Standby Letters of Credit [Member] | ||||||||||
Letters of Credit Outstanding, Amount | $ 0 | $ 755,000 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | |||||||||
Proceeds from Lines of Credit | 6,262,000 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,238,000 | |||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||
Revolving Credit Facility [Member] | Maximum [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||
Revolving Credit Facility [Member] | Through May Thirty First Two Thous and Fifteen [Member] | ||||||||||
Line of Credit Facility Minimum Availability | $ 1,000,000 | |||||||||
Revolving Credit Facility [Member] | On Or Before September Thirtieth Two Thousand Fifteen [Member] | ||||||||||
Line of Credit Facility Minimum Availability | $ 5,000,000 | |||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | New Credit Facility [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||||||||
Line of Credit Facility, Fixed Charge Coverage Ratio Trigger, Borrowing Availability | $ 4,000,000 | |||||||||
Fixed Charge Coverage Ratio Applicable If Borrowing Availability Falls Below a Specified Level | 1 | |||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 22,500,000 | ||||||||
Debt Instrument Incremental Basis Point Monthly Increase | 0.50% | |||||||||
Line of Credit Facility Minimum Availability | $ 8,500,000 | $ 10,000,000 | ||||||||
Line of Credit Facility, Amendment Fee | 500,000 | 500,000 | ||||||||
Line of Credit Facility, Success Fee | $ 500,000 | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 8,500,000 | |||||||||
Scenario, Forecast [Member] | Term Loan [Member] | ||||||||||
Repayments of Debt | $ 5,000,000 | |||||||||
Subsequent Event [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Face Amount | $ 12,000,000 | |||||||||
Debt Prepayment, Alternative Satisfaction of Requirement, Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account | 5,000,000 | |||||||||
Debt Prepayment, Alternative Satisfaction of Requirement, Alternative Proceeds to Be Contributed | 5,000,000 | |||||||||
Subsequent Event [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,500,000 | $ 27,000,000 | ||||||||
Promissory Note [Member] | Gill Family Capital Management [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||
Subordinated Debt | $ 5,500,000 | |||||||||
Meritor Note [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||||
Debt Instrument, Face Amount | $ 3,047,000 | |||||||||
Meritor Note Amendment [Member] | ||||||||||
Secured Debt | 412,000 | $ 321,000 | ||||||||
Morganton [Member] | Morganton Facility [Member] | ||||||||||
Proceeds from Sale of Productive Assets | 3,200,000 | |||||||||
Disposal Group, Including Discontinued Operation, Consideration, Assets Transferred and Liabilities Assumed | $ 12,500,000 |
Note 12 - Debt - Debt Component
Note 12 - Debt - Debt Components (Details) - USD ($) | Oct. 04, 2015 | Dec. 31, 2014 |
Revolving credit facility | $ 6,262,000 | $ 17,000,000 |
Note payable – Meritor | 3,780,000 | 0 |
Note payable – related party | 5,500,000 | 0 |
Long term debt | 15,542,000 | 17,000,000 |
Current portion of long-term debt | 2,893,000 | 17,000,000 |
$ 12,649,000 | $ 0 |
Note 13 - Segment Data (Details
Note 13 - Segment Data (Details Textual) | 9 Months Ended |
Oct. 04, 2015 | |
Number of Operating Segments | 2 |
Note 13 - Segment Data - Financ
Note 13 - Segment Data - Financial Information From Reportable Segments - Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Sypris Technologies [Member] | ||||
Revenues | $ 27,824,000 | $ 82,555,000 | $ 87,904,000 | $ 242,104,000 |
Gross profit (loss) | 1,973,000 | 9,299,000 | (1,550,000) | 31,836,000 |
Operating (loss) income | (609,000) | 5,373,000 | (12,347,000) | 20,526,000 |
Sypris Electronics [Member] | ||||
Revenues | 10,613,000 | 7,649,000 | 28,298,000 | 25,457,000 |
Gross profit (loss) | 495,000 | (1,090,000) | 827,000 | (2,236,000) |
Operating (loss) income | (1,515,000) | (3,645,000) | (6,216,000) | (9,890,000) |
Corporate and Other [Member] | ||||
Operating (loss) income | (1,953,000) | (1,908,000) | (6,244,000) | (6,719,000) |
Revenues | 38,437,000 | 90,204,000 | 116,202,000 | 267,561,000 |
Gross profit (loss) | 2,468,000 | 8,209,000 | (723,000) | 29,600,000 |
Operating (loss) income | $ (4,077,000) | $ (180,000) | $ (24,807,000) | $ 3,917,000 |
Note 13 - Segment Data - Fina47
Note 13 - Segment Data - Financial Information From Reportable Segments - Balance Sheet (Details) - USD ($) | Oct. 04, 2015 | Dec. 31, 2014 |
Sypris Technologies [Member] | ||
Assets | $ 45,184,000 | $ 95,108,000 |
Sypris Electronics [Member] | ||
Assets | 25,084,000 | 26,874,000 |
General, Corporate and Other [Member] | ||
Assets | 2,406,000 | 7,699,000 |
Assets | $ 72,674,000 | $ 129,681,000 |
Note 14 - Commitments and Con48
Note 14 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Apr. 05, 2015 | Oct. 04, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | |
Minimum [Member] | Link Encryption Products [Member] | |||||
Extended Product Warranty Term | 3 years | ||||
Maximum [Member] | Link Encryption Products [Member] | |||||
Extended Product Warranty Term | 5 years | ||||
Scenario, Forecast [Member] | Tampa Facility [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||||
Product Warranty Accrual | $ 808,000 | $ 825,000 | |||
Product Warranty Expense | 112,000 | $ 108,000 | |||
Extended Product Warranty Accrual, Warranties Issued | 579,000 | $ 839,000 | |||
Purchase Obligation | $ 6,515,000 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 04, 2015 | Oct. 04, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 30.00% | 30.00% | ||
Deferred Income Tax Expense (Benefit) | $ 2,436,000 | $ 2,436,000 | $ 0 |
Note 16 - Employee Benefit Pl50
Note 16 - Employee Benefit Plans - Components of Pension Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Service cost | $ 3 | $ 3 | $ 10 | $ 9 |
Interest cost on projected benefit obligation | 423 | 447 | 1,268 | 1,342 |
Net amortizations, deferrals and other costs | 173 | 133 | 520 | 398 |
Expected return on plan assets | (561) | (599) | (1,683) | (1,798) |
Pension expense (benefit) | $ 38 | $ (16) | $ 115 | $ (49) |
Note 17 - Accumulated Other C51
Note 17 - Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss Components (Details) - USD ($) | Oct. 04, 2015 | Dec. 31, 2014 |
UNITED STATES | ||
Employee benefit related adjustments | $ (17,584,000) | $ (17,584,000) |
MEXICO | ||
Employee benefit related adjustments | (186,000) | (186,000) |
Foreign currency translation adjustments | (9,313,000) | (7,265,000) |
Accumulated other comprehensive loss | $ (27,083,000) | $ (25,035,000) |
Note 19 - Subsequent Events (De
Note 19 - Subsequent Events (Details Textual) | Oct. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 15, 2016USD ($) | Oct. 04, 2015USD ($) | Sep. 28, 2014USD ($) | Jan. 31, 2016 | Oct. 31, 2015USD ($) | Jul. 09, 2015USD ($) | Jul. 02, 2015USD ($) |
Term Loan [Member] | Subsequent Event [Member] | Base Rate [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | ||||||||
Term Loan [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Face Amount | $ 12,000,000 | ||||||||
Debt Prepayment, Alternative Satisfaction of Requirement, Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account | 5,000,000 | ||||||||
Debt Prepayment, Alternative Satisfaction of Requirement, Alternative Proceeds to Be Contributed | $ 5,000,000 | ||||||||
Term Loan [Member] | Scenario, Forecast [Member] | |||||||||
Repayments of Debt | $ 5,000,000 | ||||||||
New Credit Facility [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||||||||
New Credit Facility [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||||||
Basis Spread on Fedreal Funds Rate | 0.50% | ||||||||
New Credit Facility [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Basis Spread on Fedreal Funds Rate | 3.25% | ||||||||
New Credit Facility [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||
Line of Credit Facility, Fixed Charge Coverage Ratio Trigger, Borrowing Availability | $ 4,000,000 | ||||||||
Fixed Charge Coverage Ratio Applicable If Borrowing Availability Falls Below a Specified Level | 1 | ||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | ||||||||
Subsequent Event [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,500,000 | $ 27,000,000 | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||
Revolving Credit Facility [Member] | Maximum [Member] | Scenario, Forecast [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||
Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 22,500,000 | |||||||
Scenario, Forecast [Member] | Land and Facility in Mexio [Member] | |||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 13,000,000 | ||||||||
Proceeds upon Signing from Sale of Property, Plant, and Equipment | $ 5,200,000 | ||||||||
Land and Facility in Mexio [Member] | |||||||||
Sale Leaseback Transaction, Net Book Value | 3,316,000 | ||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 15,700,000 | $ 8,000 |