Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 27, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | LAPOLLA INDUSTRIES INC | |
Entity Central Index Key | 875,296 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 123,519,129 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets, Current [Abstract] | ||
Cash | $ 1,060 | $ 1,722 |
Trade Receivables, Net | 13,006 | 12,508 |
Inventories | 5,035 | 6,610 |
Prepaid Expenses and Other Current Assets | 1,721 | 2,074 |
Total Current Assets | 20,822 | 22,914 |
Property, Plant and Equipment | 1,121 | 985 |
Goodwill | 4,235 | 4,235 |
Other Intangible Assets, Net | 1,323 | 1,180 |
Deposits and Other Non-Current Assets, Net | 66 | 81 |
Total Assets | 27,567 | 29,395 |
Current Liabilities: | ||
Accounts Payable | 6,590 | 6,741 |
Accrued Expenses and Other Current Liabilities | 3,495 | 2,938 |
Total Current Liabilities | 10,085 | 9,679 |
Accrued Interest – Note Payable – Related Party | 6,200 | 8,945 |
Deferred Tax Liability | 427 | 414 |
Total Liabilities | 16,712 | 19,038 |
Stockholders' Equity: | ||
Common Stock, $0.01 Par Value; 140,000,000 Shares Authorized; 123,519,129 and 123,494,129 Issued and Outstanding for March 31, 2017 and December 31, 2016, respectively. | 1,235 | 1,235 |
Additional Paid-In Capital | 92,689 | 93,600 |
Accumulated Deficit | (83,069) | (84,478) |
Total Stockholders' Equity | 10,855 | 10,357 |
Total Liabilities and Stockholders' Equity | $ 27,567 | $ 29,395 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 140,000,000 | 140,000,000 |
Common Stock, Shares, Issued | 123,519,129 | 123,494,129 |
Common Stock, Shares, Outstanding | 123,519,129 | 123,494,129 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 22,544 | $ 20,639 |
Cost of Sales | 16,241 | 14,965 |
Gross Profit | 6,303 | 5,674 |
Operating Expenses: | ||
Selling, General and Administrative | 4,036 | 3,712 |
Professional Fees | 481 | 310 |
Depreciation | 21 | 30 |
Amortization of Other Intangible Assets | 64 | 73 |
Consulting Fees | 138 | 152 |
Total Operating Expenses | 4,740 | 4,277 |
Operating Income | 1,563 | 1,397 |
Other (Income) Expense: | ||
Interest Expense | 61 | 322 |
Interest Expense – Related Party | 0 | 183 |
Interest Expense – Amortization of Discount | 0 | 45 |
Other, Net | 11 | (50) |
Total Other Expense | 72 | 500 |
Income Before Income Taxes | 1,491 | 897 |
Income Tax Expense | 82 | 66 |
Net Income | $ 1,409 | $ 831 |
Basic | $ 0.01 | $ 0.01 |
Basic | 123,494 | 122,256 |
Net Income (Loss) Per Share – Diluted | $ 0.01 | $ 0.01 |
Diluted | 124,900 | 122,286 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income | $ 1,409 | $ 831 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation | 71 | 72 |
Amortization of Other Intangible Assets | 64 | 73 |
Provision for Losses on Accounts Receivable | 110 | 88 |
Share Based Compensation Expense | 340 | 217 |
Interest Expense – Related Party | 0 | 183 |
Interest Expense – Amortization of Discount | 0 | 45 |
Loss on Foreign Currency Exchange | 5 | (3) |
Deferred Income Tax Provision | 13 | 13 |
Changes in Assets and Liabilities: | ||
Trade Receivables | (611) | (630) |
Inventories | 1,575 | 2,073 |
Prepaid Expenses and Other Current Assets | 353 | 185 |
Other Intangible Assets | (206) | (13) |
Deposits and Other Non-Current Assets | 19 | (7) |
Accounts Payable | (154) | 244 |
Accrued Expenses and Other Current Liabilities | (782) | (94) |
Net Cash Provided by Operating Activities | 2,206 | 3,277 |
Cash Flows From Investing Activities: | ||
Additions to Property, Plant and Equipment | (118) | (1) |
Net Cash Used in Investing Activities | (118) | (1) |
Cash Flows From Financing Activities: | ||
Proceeds from Line of Credit | 500 | 0 |
Principal Repayments to Line of Credit | (3,250) | 0 |
Proceeds from Revolver Loan | 0 | 21,707 |
Principal Repayments to Revolver Loan | 0 | (24,983) |
Net Cash Used in Financing Activities | (2,750) | (3,276) |
Net Decrease in Cash | (662) | 0 |
Cash at Beginning of Period | 1,722 | 0 |
Cash at End of Period | 1,060 | 0 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Payments for Income Taxes | 0 | 0 |
Cash Payments for Interest | 118 | 203 |
Supplemental Schedule of Non Cash Investing and Financing Activities: | ||
Issuances of Common Stock for Guaranty by Related Party classified as Interest Expense | $ 0 | $ 183 |
Basis of Presentation, Critical
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions | Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions The condensed financial statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes to the condensed financial statements. These unaudited condensed financial statements should be read in conjunction with the risk factors and the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , which was filed with the SEC on February 15, 2017, in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company’s critical accounting policies were described in Note 1 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . There have been no significant changes in the Company’s accounting policies during the three months ended March 31, 2017 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. Reclassifications Certain reclassifications of prior year amounts have been made to confirm to the current year presentation. The reclassifications had no impact on net income. Income Taxes The Company is a corporation subject to federal income tax at a statutory rate of 34% of pretax earnings. The Company estimated an annual effective income tax rate of 5.5% based on projected results for the year and applied this rate to income before taxes to calculate income tax expense. The tax expense was approximately $82,000 and $66,000 , resulting in an effective tax rate of approximately 5.5% and 7.4%, for the thee months ended March 31, 2017 and |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which applies to inventory that is measured using first-in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out ("LIFO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The adoption did not have a material impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment awards to employees, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption did not have a material impact on the Company’s financial statements. Note 2 - Recent Accounting Pronouncements, continued New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. generally accepted accounting principles ("GAAP") and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification," which requires companies to recognize all leases as assets and liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which contains amendments designed to make current GAAP clear or provide specific guidance on eight cash flow classification issues relating to how certain cash receipts and cash payments are presented and classified in the statement of cash flows, thereby reducing the current and potential future diversity in practice. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which contains amendments to simplify the subsequent measurement of goodwill. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of adopting this guidance. |
Dependence on Few Suppliers
Dependence on Few Suppliers | 3 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Dependence on Few Suppliers | Dependence on Few Suppliers The Company is dependent on a few suppliers for certain raw materials and finished goods. For the three month period ended March 31, 2017 and 2016 , raw materials and finished goods purchased from the three largest suppliers accounted for approximately 44% and 42% , of purchases, respectively. |
Trade Receivables
Trade Receivables | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Trade Receivables | Trade Receivables Trade receivables are comprised of the following (in thousands): March 31, 2017 December 31, 2016 Trade Receivables $ 13,479 $ 12,874 Less: Allowance for Doubtful Accounts (473 ) (366 ) Trade Receivables, Net $ 13,006 $ 12,508 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following is a summary of inventories (in thousands): March 31, 2017 December 31, 2016 Raw Materials $ 1,696 $ 2,157 Finished Goods 3,339 4,453 Total Inventories $ 5,035 $ 6,610 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets (in thousands): March 31, 2017 December 31, 2016 Prepaid Insurances $ 699 $ 735 Prepaid Marketing 128 181 Prepaid Consulting 40 94 Prepaid Other 854 1,064 Total Prepaid Expenses and Other Current Assets $ 1,721 $ 2,074 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following is a summary of property, plant and equipment (in thousands): March 31, 2017 December 31, 2016 Vehicles $ 194 $ 244 Leasehold Improvements 278 269 Office Furniture and Equipment 190 159 Computers and Software 1,073 907 Machinery and Equipment 2,558 2,557 Total Property, Plant and Equipment $ 4,293 $ 4,136 Less: Accumulated Depreciation (3,172 ) (3,151 ) Total Property, Plant and Equipment, Net $ 1,121 $ 985 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following is a summary of Goodwill (in thousands): March 31, 2017 December 31, 2016 Foam $ 2,932 $ 2,932 Coatings 1,303 1,303 Total Goodwill $ 4,235 $ 4,235 Other Intangible Assets The following is a summary of Other Intangible Assets (in thousands): March 31, 2017 December 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Product Formulation $ 138 $ (106 ) $ 32 $ 138 $ (104 ) $ 34 Trade Names 750 (432 ) 318 750 (419 ) 331 Approvals and Certifications 3,669 (2,696 ) 973 3,462 (2,647 ) 815 $ 4,557 $ (3,234 ) $ 1,323 $ 4,350 $ (3,170 ) $ 1,180 |
Deposits and Other Non-Current
Deposits and Other Non-Current Assets | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deposits and Other Non-Current Assets | Deposits and Other Non-Current Assets The following is a summary of deposits and other non-current assets (in thousands): March 31, 2017 December 31, 2016 Prepaid Expenses $ 7 $ 8 Other Receivables 2 9 Deposits 57 64 Total Deposits and Other Non-Current Assets $ 66 $ 81 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The following is a summary of accrued expenses and other current liabilities (in thousands): March 31, 2017 December 31, 2016 Accrued Payroll $ 138 $ 3 Accrued Commissions 157 172 Accrued Dividends Payable 1,250 — Accrued Inventory Purchases 222 249 Accrued Taxes and Other 1,246 2,011 Accrued Insurance 466 490 Deferred Finance Charge Income 16 13 Total Accrued Expenses and Other Current Liabilities $ 3,495 $ 2,938 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financing Instruments | Long-Term Debt The following is a summary of long-term debt (in thousands): Debt Facility Effective Cash Interest Rate March 31, 2017 December 31, 2016 Line of Credit 2.94% $ 6,250 $ 9,000 Less Debt Issuance Costs (50 ) (55 ) Long-Term Debt, Net $ 6,200 $ 8,945 The Company entered into a loan agreement with Bank of America, N.A. (the “Bank”) on September 7, 2016 (the “Loan Agreement”), which amended and restated in its entirety that certain prior Loan and Security Agreement dated August 31, 2010 with the Bank. The Loan Agreement provides an initial line of credit of $15 million for a 3 years term maturing on September 7, 2019 (the “Line of Credit”). The available amount of the Line of Credit will be reduced each quarter by $250,000 starting January 1, 2017, until it reaches $12 million on July 1, 2019, thereby reducing the Company’s unused line fee. The interest rate used by the Company is the daily floating LIBOR rate plus 2.25% . The Loan Agreement requires the Company to comply with two financial covenants, including: (i) an asset coverage ratio of at least (a) 1.10 to 1.00 from September 30, 2016, until September 30, 2017, (b) 1.15 to 1.00 from October 1, 2017, through March 31, 2018, and (c) 1.20 to 1.00 from April 1, 2018, and thereafter, tested quarterly, which in each case will be determined based upon the ratio of (x) 85% of book value of all accounts receivable, plus 55% of book value of all inventory, plus 50% of net book value of plant, property and equipment of the Company (the “Total Margined Value”) to (y) all outstanding liabilities for borrowed money and other interest-bearing liabilities arising under the Line of Credit (the “Total Line of Credit"); and (ii) a fixed charge coverage ratio of at least 1.20 to 1.00, tested quarterly based upon the ratio of (a) Adjusted EBITDA (as defined in the Loan Agreement), to (b) the sum of capital expenditures, cash taxes paid, interest expenses, principal payments made on borrowed money other than the Line of Credit and certain prior refinanced debt agreements, and distributions made, in each case for the immediately preceding four fiscal quarter period and determined on a consolidated basis. Upon closing of the Loan Agreement, an aggregate of $8.5 million was drawn from the Line of Credit and used to pay off certain prior refinanced debt agreements. The Company granted the Bank a continuing security interest in and lien upon substantially all assets of the corporation. If, at any time, the Company’s Total Margined Value is less than the amount outstanding under the Total Line of Credit, and that amount remains unpaid or future Total Margined Value calculations do not increase to an amount equal to the balance outstanding under the Total Line of Credit, the Bank, in its sole discretion, may accelerate any and all amounts outstanding under the Line of Credit. At March 31, 2017, the balance outstanding on the Line of Credit, net of deferred financing costs, was $6.3 million , and the weighted-average interest rate was 2.94% . Cash available under our Line of Credit based on the Asset Coverage Ratio, and after giving effect to outstanding borrowings, at March 31, 2017 was $7.2 million . At March 31, 2017, the Company was in compliance with all of its Loan Agreement debt covenants. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions (a) On January 1, 2017, the Company granted a stock bonus to the chairman of the board, Richard J. Kurtz, for the right to acquire 100,000 shares of the Company's common stock, par value $.01 . No monetary payment is required as a condition of receiving the shares of common stock, as the consideration is continued satisfactory chairman of the board services with the Company during the vesting period. The shares of common stock vest in four equal 25,000 share increments on March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, respectively, subject to continued chairman of the board services to the Company. Once vested, the shares of common stock are freely transferable. The transaction was valued at $53,000 (calculated by multiplying the 100,000 shares by the $.53 closing price of the Company's common stock on the date of grant) and is being expensed over the requisite service period on the respective vesting dates. On March 31, 2017, the first tranche of 25,000 shares of common stock vested, which transaction was valued and recorded at $13,000 . (b) On January 5, 2017, the Company granted eight -year stock options to non-employee directors, Richard J. Kurtz, Jay C. Nadel, Arthur J. Gregg, and Augustus J. Larson, each for the right to acquire 100,000 shares of the Company's common stock, par value $.01 , at an exercise price per share equal to the fair market value of a share of the Company’s common stock on the date of grant, determined based on the per share closing price on such date, or $0.50 per share, which options vest 33,333 , 33,333 , and 33,334 on December 31, 2017, December 31, 2018, and December 31, 2019, respectively, subject to continued satisfactory board services. The transactions were valued in the aggregate at $191,000 which was estimated using the Black-Scholes option pricing model and will be expensed over the requisite vesting period. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share - Basic and Diluted | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share - Basic and Diluted | Net Income (Loss) Per Common Share – Basic and Diluted Basic income (loss) per share is based upon the net income (loss) applicable to common shares and upon the weighted average number of common shares outstanding during the period. Diluted income (loss) per share reflects the effect of the assumed exercise of stock options only in periods in which such effect would have been dilutive. The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data): For The Three Months Ended 2017 2016 Income available to common shareholders (A) $ 1,409 $ 831 Weighted average common shares outstanding (B) 123,494 122,256 Dilutive effect of equity incentive plans 1,406 30 Weighted average common shares outstanding, assuming dilution (C) 124,900 122,286 Basic earnings per common share (A)/(B) $ 0.01 $ 0.01 Diluted earnings per common share (A)/(C) $ 0.01 $ 0.01 For the three months ended March 31, 2017 , a total of 600,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were greater than the market value of the common shares (out-of-the-money). For the three months ended March 31, 2016 , a total of 600,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were out-of-the-money. Out-of-the money options could be included in the calculation in the future if the market value of the Company’s common shares increases and is greater than their exercise price. |
Securities Transactions
Securities Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Securities Financing Transactions [Abstract] | |
Securities Transactions | Securities Transactions |
Business Segment and Geographic
Business Segment and Geographic Area Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Area Information | Business Segment and Geographic Area Information Business Segments Summarized financial information for the reportable segments is as follows (in thousands): Three Months Ended March 31, 2017 2016 Foam Coatings Totals Foam Coatings Totals Sales $ 19,593 $ 2,951 $ 22,544 $ 17,745 $ 2,894 $ 20,639 Depreciation 16 2 18 23 4 27 Amortization of Other Intangible Assets 60 8 68 57 9 66 Interest Expense 27 4 31 236 39 275 Segment Profit 2,646 512 3,158 2,022 434 2,456 Segment Assets (1) 21,720 4,114 25,834 19,939 4,045 23,984 Expenditures for Segment Assets $ 1 $ — $ 1 $ 1 $ — $ 1 Note 15. Business Segment and Geographic Area Information - continued. The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s consolidated totals (in thousands): For The Three Months Ended Profit or Loss 2017 2016 Total Profit or Loss for Reportable Segments $ 3,158 $ 2,456 Unallocated Amounts: Corporate Expenses (1,667 ) (1,559 ) Income (Loss) Before Income Taxes $ 1,491 $ 897 Assets At March 31, 2017 At December 31, 2016 Total Assets for Reportable Segments (1) $ 25,834 $ 27,104 Other Unallocated Amounts (2) 1,733 2,291 Consolidated Total $ 27,567 $ 29,395 (1) Segment assets are the total assets used in the operation of each segment. (2) Includes corporate assets which are principally cash and cash equivalents and deposits. Geographic Area Information The Company does not operate any manufacturing sites nor maintain a permanent establishment in any particular country outside of the United States at this time. The Company’s products are sold to independent distributors globally for select target markets. Sales are attributed to geographic areas based on customer location. Long-lived assets are attributable to geographic areas based on asset location. Sales and Long-Lived Assets by geographic area are as follows (in thousands): Three Months Ended March 31, 2017 2016 United States Europe Canada Rest of World Total United States Europe Canada Rest of World Total Sales $ 21,899 $ 328 $ 86 $ 231 $ 22,544 $ 19,287 $ 629 $ 304 $ 419 $ 20,639 Long-Lived Assets 6,502 — — — 6,502 6,838 — — — 6,838 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events (a) On April 6, 2017, and effective January 1, 2017, the Company entered into an Executive Employment Agreement with Jomarc C. Marukot, chief financial officer and treasurer (the “Marukot Employment Agreement”), which superseded and replaced all prior employment agreements between the Company and Mr. Marukot. The Marukot Employment Agreement provides, among other things, that Mr. Marukot will receive base compensation of $210,000 per annum and shall be entitled to a bonus equal to 25% of his base salary for each fiscal year if the Company's earnings before interest, taxes, depreciation, amortization, and share based compensation (“Adjusted EBITDA”) for such fiscal year exceeds a target established by the Company's Board of Directors (which bonus shall be increased to: (a) 30% of Mr. Marukot’s annual base compensation if the Company achieves 110% of the Adjusted EBITDA target for such fiscal year and (b) 35% of Mr. Marukot’s annual base compensation if the Company achieves 120% of the Adjusted EBITDA target for such fiscal year). In addition, if the Company achieves Adjusted EBITDA greater than 120% of the target in any fiscal year, the Company's CEO, in his discretion, may pay Mr. Marukot a bonus greater than 35% of his annual base compensation, subject to review and approval by the Compensation Committee and Board of Directors. The Marukot Employment Agreement also provides for a transaction bonus equal to 0.25% of the consideration received by the Company's shareholders (the amount of such bonus being subject to the restrictions and further calculations set forth in the Marukot Employment Agreement) upon consummation of a change in control if Mr. Marukot is still employed at such time or in the event Mr. Marukot’s employment is terminated within one year immediately preceding the consummation of a change in control. Note 16 - Subsequent Events - continued (b) On April 6, 2017, the Company entered into an Executive Employment Agreement with Michael T. Adams, chief governance officer, vice president and corporate secretary (the “Adams Employment Agreement”), which superseded and replaced all prior employment agreements between the Company and Mr. Adams. The Adams Employment Agreement provides, among other things, that Mr. Adams will receive base compensation of $200,000 per annum and shall be entitled to a bonus equal to 25% of his base salary for each fiscal year if the Company's Adjusted EBITDA for such fiscal year exceeds a target established by the Company's Board of Directors (which bonus shall be increased to: (a) 30% of Mr. Adam’s annual base compensation if the Company achieves 110% of the Adjusted EBITDA target for such fiscal year and (b) 35% of Mr. Adam’s annual base compensation if the Company achieves 120% of the Adjusted EBITDA target for such fiscal year). In addition, if the Company achieves Adjusted EBITDA greater than 120% of the target in any fiscal year, the Company's CEO, in his discretion, may pay Mr. Adams a bonus greater than 35% of his annual base compensation, subject to review and approval by the Compensation Committee and Board of Directors. Also, the Adams Employment Agreement provides for a transaction bonus equal to 0.50% of the consideration received by the Company's shareholders (the amount of such bonus being subject to the restrictions and further calculations set forth in the Adams Employment Agreement) upon consummation of a change in control if Mr. Adams is still employed at such time or in the event Mr. Adams’ employment is terminated within one year immediately preceding the consummation of a change in control. (c) The Company has evaluated subsequent events through the date of filing this report. |
Basis of Presentation, Critic22
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The condensed financial statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes to the condensed financial statements. These unaudited condensed financial statements should be read in conjunction with the risk factors and the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , which was filed with the SEC on February 15, 2017, in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company’s critical accounting policies were described in Note 1 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . There have been no significant changes in the Company’s accounting policies during the three months ended March 31, 2017 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. |
Income Taxes | Income Taxes The Company is a corporation subject to federal income tax at a statutory rate of 34% of pretax earnings. The Company estimated an annual effective income tax rate of 5.5% based on projected results for the year and applied this rate to income before taxes to calculate income tax expense. The tax expense was approximately $82,000 and $66,000 , resulting in an effective tax rate of approximately 5.5% and 7.4%, for the thee months ended March 31, 2017 and |
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. generally accepted accounting principles ("GAAP") and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification," which requires companies to recognize all leases as assets and liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which contains amendments designed to make current GAAP clear or provide specific guidance on eight cash flow classification issues relating to how certain cash receipts and cash payments are presented and classified in the statement of cash flows, thereby reducing the current and potential future diversity in practice. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which contains amendments to simplify the subsequent measurement of goodwill. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of adopting this guidance. |
Trade Receivables (Tables)
Trade Receivables (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Trade Receivables | Trade receivables are comprised of the following (in thousands): March 31, 2017 December 31, 2016 Trade Receivables $ 13,479 $ 12,874 Less: Allowance for Doubtful Accounts (473 ) (366 ) Trade Receivables, Net $ 13,006 $ 12,508 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following is a summary of inventories (in thousands): March 31, 2017 December 31, 2016 Raw Materials $ 1,696 $ 2,157 Finished Goods 3,339 4,453 Total Inventories $ 5,035 $ 6,610 |
Prepaid Expenses and Other Cu25
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | The following is a summary of prepaid expenses and other current assets (in thousands): March 31, 2017 December 31, 2016 Prepaid Insurances $ 699 $ 735 Prepaid Marketing 128 181 Prepaid Consulting 40 94 Prepaid Other 854 1,064 Total Prepaid Expenses and Other Current Assets $ 1,721 $ 2,074 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of property, plant and equipment (in thousands): March 31, 2017 December 31, 2016 Vehicles $ 194 $ 244 Leasehold Improvements 278 269 Office Furniture and Equipment 190 159 Computers and Software 1,073 907 Machinery and Equipment 2,558 2,557 Total Property, Plant and Equipment $ 4,293 $ 4,136 Less: Accumulated Depreciation (3,172 ) (3,151 ) Total Property, Plant and Equipment, Net $ 1,121 $ 985 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following is a summary of Goodwill (in thousands): March 31, 2017 December 31, 2016 Foam $ 2,932 $ 2,932 Coatings 1,303 1,303 Total Goodwill $ 4,235 $ 4,235 |
Other Intangible Assets | Other Intangible Assets The following is a summary of Other Intangible Assets (in thousands): March 31, 2017 December 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Product Formulation $ 138 $ (106 ) $ 32 $ 138 $ (104 ) $ 34 Trade Names 750 (432 ) 318 750 (419 ) 331 Approvals and Certifications 3,669 (2,696 ) 973 3,462 (2,647 ) 815 $ 4,557 $ (3,234 ) $ 1,323 $ 4,350 $ (3,170 ) $ 1,180 |
Deposits and Other Non-Curren28
Deposits and Other Non-Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Deposits and Other Non-Current Assets | The following is a summary of deposits and other non-current assets (in thousands): March 31, 2017 December 31, 2016 Prepaid Expenses $ 7 $ 8 Other Receivables 2 9 Deposits 57 64 Total Deposits and Other Non-Current Assets $ 66 $ 81 |
Accrued Expenses and Other Cu29
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following is a summary of accrued expenses and other current liabilities (in thousands): March 31, 2017 December 31, 2016 Accrued Payroll $ 138 $ 3 Accrued Commissions 157 172 Accrued Dividends Payable 1,250 — Accrued Inventory Purchases 222 249 Accrued Taxes and Other 1,246 2,011 Accrued Insurance 466 490 Deferred Finance Charge Income 16 13 Total Accrued Expenses and Other Current Liabilities $ 3,495 $ 2,938 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | The following is a summary of long-term debt (in thousands): Debt Facility Effective Cash Interest Rate March 31, 2017 December 31, 2016 Line of Credit 2.94% $ 6,250 $ 9,000 Less Debt Issuance Costs (50 ) (55 ) Long-Term Debt, Net $ 6,200 $ 8,945 |
Net Income (Loss) per Common 31
Net Income (Loss) per Common Share - Basic and Diluted (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data): For The Three Months Ended 2017 2016 Income available to common shareholders (A) $ 1,409 $ 831 Weighted average common shares outstanding (B) 123,494 122,256 Dilutive effect of equity incentive plans 1,406 30 Weighted average common shares outstanding, assuming dilution (C) 124,900 122,286 Basic earnings per common share (A)/(B) $ 0.01 $ 0.01 Diluted earnings per common share (A)/(C) $ 0.01 $ 0.01 |
Business Segment and Geograph32
Business Segment and Geographic Area Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended March 31, 2017 2016 Foam Coatings Totals Foam Coatings Totals Sales $ 19,593 $ 2,951 $ 22,544 $ 17,745 $ 2,894 $ 20,639 Depreciation 16 2 18 23 4 27 Amortization of Other Intangible Assets 60 8 68 57 9 66 Interest Expense 27 4 31 236 39 275 Segment Profit 2,646 512 3,158 2,022 434 2,456 Segment Assets (1) 21,720 4,114 25,834 19,939 4,045 23,984 Expenditures for Segment Assets $ 1 $ — $ 1 $ 1 $ — $ 1 |
Reconciliation of Reportable Segment Profit or Loss | The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s consolidated totals (in thousands): For The Three Months Ended Profit or Loss 2017 2016 Total Profit or Loss for Reportable Segments $ 3,158 $ 2,456 Unallocated Amounts: Corporate Expenses (1,667 ) (1,559 ) Income (Loss) Before Income Taxes $ 1,491 $ 897 |
Reconciliation of Assets from Segment to Consolidated | Assets At March 31, 2017 At December 31, 2016 Total Assets for Reportable Segments (1) $ 25,834 $ 27,104 Other Unallocated Amounts (2) 1,733 2,291 Consolidated Total $ 27,567 $ 29,395 |
Summary of Sales and Long-Lived Assets by Geographic Area | Three Months Ended March 31, 2017 2016 United States Europe Canada Rest of World Total United States Europe Canada Rest of World Total Sales $ 21,899 $ 328 $ 86 $ 231 $ 22,544 $ 19,287 $ 629 $ 304 $ 419 $ 20,639 Long-Lived Assets 6,502 — — — 6,502 6,838 — — — 6,838 Three Months Ended March 31, 2017 2016 United States Europe Canada Rest of World Total United States Europe Canada Rest of World Total Sales $ 21,899 $ 328 $ 86 $ 231 $ 22,544 $ 19,287 $ 629 $ 304 $ 419 $ 20,639 Long-Lived Assets 6,502 — — — 6,502 6,838 — — — 6,838 |
Basis of Presentation, Critic33
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Income Taxes | ||
Deferred tax asset | $ 82 | $ 66 |
Deferred tax liability | $ 427 | $ 414 |
Dependence on Few Suppliers (De
Dependence on Few Suppliers (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Concentration Risk [Line Items] | ||
Concentration Risk (percent) | 44.00% | 42.00% |
Trade Receivables (Details)
Trade Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Trade Receivables | $ 13,479 | $ 12,874 |
Less: Allowance for Doubtful Accounts | (473) | (366) |
Trade Receivables, Net | $ 13,006 | $ 12,508 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 1,696 | $ 2,157 |
Finished Goods | 3,339 | 4,453 |
Total Inventories | $ 5,035 | $ 6,610 |
Prepaid Expenses and Other Cu37
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Insurances | $ 699 | $ 735 |
Prepaid Marketing | 128 | 181 |
Prepaid Consulting | 40 | 94 |
Prepaid Other | 854 | 1,064 |
Total Prepaid Expenses and Other Current Assets | $ 1,721 | $ 2,074 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 4,293 | $ 4,136 |
Less: Accumulated Depreciation | (3,172) | (3,151) |
Total Property, Plant and Equipment, Net | 1,121 | 985 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 194 | 244 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 278 | 269 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 190 | 159 |
Computers and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,073 | 907 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,558 | $ 2,557 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Total Goodwill | $ 4,235 | $ 4,235 |
Operating Segments [Member] | Foam [Member] | ||
Goodwill [Line Items] | ||
Total Goodwill | 2,932 | 2,932 |
Operating Segments [Member] | Coatings [Member] | ||
Goodwill [Line Items] | ||
Total Goodwill | $ 1,303 | $ 1,303 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 4,557 | $ 4,350 |
Accumulated Amortization | (3,234) | (3,170) |
Net Amount | 1,323 | 1,180 |
Product Formulations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 138 | 138 |
Accumulated Amortization | (106) | (104) |
Net Amount | 32 | 34 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 750 | 750 |
Accumulated Amortization | (432) | (419) |
Net Amount | 318 | 331 |
Approvals and Certifications [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,669 | 3,462 |
Accumulated Amortization | (2,696) | (2,647) |
Net Amount | $ 973 | $ 815 |
Deposits and Other Non-Curren41
Deposits and Other Non-Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Expenses | $ 7 | $ 8 |
Other Receivables | 2 | 9 |
Deposits | 57 | 64 |
Total Deposits and Other Non-Current Assets | $ 66 | $ 81 |
Accrued Expenses and Other Cu42
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued Payroll | $ 138 | $ 3 |
Accrued Commissions | 157 | 172 |
Dividends Payable, Current | 1,250 | 0 |
Accrued Inventory Purchases | 222 | 249 |
Accrued Taxes and Other | 1,246 | 2,011 |
Accrued Insurance | 466 | 490 |
Deferred Finance Charge Income | 16 | 13 |
Total Accrued Expenses and Other Current Liabilities | $ 3,495 | $ 2,938 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less Debt Issuance Costs | $ (50) | $ (55) |
Long-Term Debt, Net | $ 6,200 | 8,945 |
Line of Credit [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Effective Cash Interest Rate (as a percent) | 2.94% | |
Total Long-Term Debt | $ 6,250 | $ 9,000 |
Long-Term Debt - Loan Agreement
Long-Term Debt - Loan Agreement (Details) | Sep. 07, 2016USD ($)covenant | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 07, 2019 | Jul. 01, 2019USD ($) | Mar. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||
Amounts outstanding net of deferred financing costs | $ 6,200,000 | $ 8,945,000 | ||||||
Loan Agreement [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 15,000,000 | |||||||
Number of debt covenants (in covenant) | covenant | 2 | |||||||
Debt instrument term (in years) | 3 years | |||||||
Quarterly decrease in borrowing capacity | $ 250,000 | |||||||
Financial covenant, book value of accounts receivable compared to all borrowings and interest bearing liabilities (percent) | 85.00% | |||||||
Financial covenant, book value of inventory compared to all borrowings and interest bearing liabilities (percent) | 55.00% | |||||||
Financial covenant, book value of plant, property and equipment compared to all borrowings and interest bearing liabilities (percent) | 50.00% | |||||||
Financial covenant, minimum fixed charge coverage ratio | 1.20 | |||||||
Amounts outstanding net of deferred financing costs | $ 8,500,000 | $ 6,300,000 | ||||||
Weighted average interest rate (percent) | 2.94% | |||||||
Remaining borrowing capacity | $ 7,200,000 | |||||||
Loan Agreement [Member] | Line of Credit [Member] | Daily Floating LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (percent) | 2.25% | |||||||
Loan Agreement [Member] | Line of Credit [Member] | Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 12,000,000 | |||||||
Financial covenant, minimum asset coverage ratio | 1.15 | 1.10 | 1.20 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Mar. 31, 2017 | Jan. 05, 2017 | Jan. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||
Employee Stock Option [Member] | Board of Directors Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options, grants in period | 100,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 53,000 | ||||
Share price (in USD per share) | $ 0.53 | ||||
Employee Stock Option [Member] | Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||
Expiration period (years) | 8 years | ||||
Share price (in USD per share) | $ 0.50 | ||||
Share based Compensation by Share-based Payment Award, Options, Right to Acquire Shares | 100,000 | ||||
Fair value of options vested in the period | $ 191,000 | ||||
Share-based Compensation Award, Tranche One [Member] | Employee Stock Option [Member] | Board of Directors Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 25,000 | ||||
Fair value of options vested in the period | $ 13,000 | ||||
Share-based Compensation Award, Tranche One [Member] | Employee Stock Option [Member] | Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 33,333 | ||||
Share-based Compensation Award, Tranche Two [Member] | Employee Stock Option [Member] | Board of Directors Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 25,000 | ||||
Share-based Compensation Award, Tranche Two [Member] | Employee Stock Option [Member] | Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 33,333 | ||||
Share-based Compensation Award, Tranche Three [Member] | Employee Stock Option [Member] | Board of Directors Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 25,000 | ||||
Share-based Compensation Award, Tranche Three [Member] | Employee Stock Option [Member] | Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 33,334 | ||||
Share-based Compensation Award, Tranche Four [Member] | Employee Stock Option [Member] | Board of Directors Chairman [Member] | |||||
Related Party Transaction [Line Items] | |||||
Options vested in period (in shares) | 25,000 |
Net Income (Loss) per Common 46
Net Income (Loss) per Common Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) available to common shareholders | $ 1,409 | $ 831 |
Weighted average common shares outstanding (shares) | 123,494 | 122,256 |
Dilutive effect of equity incentive plans | $ 1,406 | $ 30 |
Weighted average common shares outstanding, assuming dilution (shares) | 124,900 | 122,286 |
Basic earnings per common share (usd per share) | $ 0.01 | $ 0.01 |
Diluted earnings per common share (usd per share) | $ 0.01 | $ 0.01 |
Net Income (Loss) per Common 47
Net Income (Loss) per Common Share - Basic and Diluted - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Out-of-the-money [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (shares) | 600,000 | 600,000 |
Securities Transactions (Detail
Securities Transactions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Affiliated Entity [Member] | ||
Common stock issued (shares) | 25,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 |
Business Segment and Geograph49
Business Segment and Geographic Area Information - Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 22,544 | $ 20,639 |
Depreciation | 18 | 27 |
Amortization of Other Intangible Assets | 68 | 66 |
Interest Expense | 31 | 275 |
Segment Profit | 3,158 | 2,456 |
Segment Assets | 25,834 | 23,984 |
Expenditures for Segment Assets | 1 | 1 |
Operating Segments [Member] | Foam [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 19,593 | 17,745 |
Depreciation | 16 | 23 |
Amortization of Other Intangible Assets | 60 | 57 |
Interest Expense | 27 | 236 |
Segment Profit | 2,646 | 2,022 |
Segment Assets | 21,720 | 19,939 |
Expenditures for Segment Assets | 1 | 1 |
Operating Segments [Member] | Coatings [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,951 | 2,894 |
Depreciation | 2 | 4 |
Amortization of Other Intangible Assets | 8 | 9 |
Interest Expense | 4 | 39 |
Segment Profit | 512 | 434 |
Segment Assets | 4,114 | 4,045 |
Expenditures for Segment Assets | $ 0 | $ 0 |
Business Segment and Geograph50
Business Segment and Geographic Area Information - Reconciliation of Reportable Segment Profit or Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting [Abstract] | ||
Total Profit or Loss for Reportable Segments | $ 3,158 | $ 2,456 |
Corporate Expenses | (1,667) | (1,559) |
Income Before Income Taxes | $ 1,491 | $ 897 |
Business Segment and Geograph51
Business Segment and Geographic Area Information - Reconciliation of Reportable Segment Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting [Abstract] | ||
Total Assets for Reportable Segments | $ 25,834 | $ 27,104 |
Other Unallocated Amounts | 1,733 | 2,291 |
Consolidated Total | $ 27,567 | $ 29,395 |
Business Segment and Geograph52
Business Segment and Geographic Area Information - Geographic Area Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 22,544 | $ 20,639 | |
Long-Lived Assets | 6,502 | $ 6,838 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 21,899 | 19,287 | |
Long-Lived Assets | 6,502 | 6,838 | |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 328 | 629 | |
Long-Lived Assets | 0 | 0 | |
Middle East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 86 | 304 | |
Long-Lived Assets | 0 | 0 | |
Rest of the World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 231 | $ 419 | |
Long-Lived Assets | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Apr. 06, 2017USD ($) |
Chief Financial Officer [Member] | |
Subsequent Event [Line Items] | |
Officers' Compensation | $ 210,000 |
Related Party Transaction, Annual Bonus Percentage of Base Salary | 25.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option One | 30.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold One | 110.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Two | 35.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Two | 120.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Three | 35.00% |
Transaction Bonus, Percent | 0.25% |
Vice President [Member] | |
Subsequent Event [Line Items] | |
Officers' Compensation | $ 200,000 |
Related Party Transaction, Annual Bonus Percentage of Base Salary | 25.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option One | 30.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold One | 110.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Two | 35.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Two | 120.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Three | 120.00% |
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Three | 35.00% |
Transaction Bonus, Percent | 0.50% |