Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 27, 2015 | Oct. 28, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Ultralife Corporation | |
Entity Central Index Key | 875,657 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 27, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 15,219,620 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 27, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 14,585,000 | $ 17,711,000 |
Restricted cash | 143,000 | 155,000 |
Trade accounts receivable, net of allowance for doubtful account | 11,242,000 | 11,295,000 |
Inventories, net | 23,352,000 | 26,086,000 |
Prepaid expenses and other current assets | 1,943,000 | 1,313,000 |
Due from insurance company | 177,000 | 184,000 |
Deferred income taxes | 106,000 | 106,000 |
Total current assets | 51,548,000 | 56,850,000 |
Property, equipment and improvements, net | 9,191,000 | 9,812,000 |
Goodwill | 16,327,000 | 16,407,000 |
Other intangible assets, net | 4,155,000 | 4,338,000 |
Security deposits and other non-current assets | 131,000 | 235,000 |
Total assets | 81,352,000 | 87,642,000 |
Current liabilities: | ||
Accounts payable | 6,766,000 | 6,996,000 |
Accrued compensation and related benefits | 2,398,000 | 1,725,000 |
Accrued expenses and other current liabilities | 2,170,000 | 2,421,000 |
Accrued income taxes | 164,000 | 69,000 |
Total current liabilities | 11,498,000 | 11,211,000 |
Deferred income taxes | 4,623,000 | 4,462,000 |
Other non-current liabilities | 56,000 | 56,000 |
Total liabilities | 16,177,000 | 15,729,000 |
Shareholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock | 1,899,000 | 1,894,000 |
Capital in excess of par value | 176,402,000 | 175,940,000 |
Accumulated deficit | (94,553,000) | (96,920,000) |
Accumulated other comprehensive loss | (750,000) | (467,000) |
Treasury stock - at cost | (17,686,000) | (8,420,000) |
Total Ultralife equity | 65,312,000 | 72,027,000 |
Noncontrolling interest | (137,000) | (114,000) |
Total shareholders' equity | 65,175,000 | 71,913,000 |
Total liabiltiies and shareholders' equity | $ 81,352,000 | $ 87,642,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 27, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable allowance for doubtful accounts | $ 361,000 | $ 340,000 |
Preferred stock - par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 18,992,380 | 18,941,544 |
Common stock, shares outstanding | 15,153,573 | 17,340,813 |
Treasury stock shares | 3,838,807 | 1,600,731 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 19,044,000 | $ 16,062,000 | $ 57,176,000 | $ 46,546,000 |
Cost of products sold | 13,144,000 | 11,576,000 | 39,410,000 | 33,513,000 |
Gross profit | 5,900,000 | 4,486,000 | 17,766,000 | 13,033,000 |
Operating expenses: | ||||
Research and development | 1,224,000 | 1,014,000 | 3,917,000 | 4,010,000 |
Selling, general and administrative | 3,503,000 | 3,527,000 | 11,037,000 | 11,498,000 |
Total operating expenses | 4,727,000 | 4,541,000 | 14,954,000 | 15,508,000 |
Operating income (loss) | 1,173,000 | (55,000) | 2,812,000 | (2,475,000) |
Other (expense) income: | ||||
Interest income | 0 | 3,000 | 2,000 | 12,000 |
Interest and financing expense | (65,000) | (56,000) | (197,000) | (153,000) |
Miscellaneous | 70,000 | (158,000) | 39,000 | (128,000) |
Income (Loss) from continuing operations before income taxes | 1,178,000 | (266,000) | 2,656,000 | (2,744,000) |
Income tax provision | 130,000 | 60,000 | 312,000 | 177,000 |
Net income (loss) from continuing operations | 1,048,000 | (326,000) | 2,344,000 | (2,921,000) |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | (61,000) |
Net Income (loss) | 1,048,000 | (326,000) | 2,344,000 | (2,982,000) |
Net loss attributable to noncontrolling interest | (1,000) | 3,000 | 23,000 | 13,000 |
Net Income (loss) attributable to Ultralife | 1,047,000 | (323,000) | 2,367,000 | (2,969,000) |
Other comprehensive income: | ||||
Foreign currency translation adjustments | (349,000) | 29,000 | (283,000) | 164,000 |
Comprehensive loss attributable to Ultralife | $ 698,000 | $ (294,000) | $ 2,084,000 | $ (2,805,000) |
Net income (loss) per share attributable to Ultralife common shareholders - Basic: | ||||
Continuing operations (in dollars per share) | $ .07 | $ (.02) | $ .14 | $ (.17) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Total (in dollars per share) | .07 | $ (.02) | 0.14 | $ (0.17) |
Net income per share attributable to Ultralife common shareholders - Diluted: | ||||
Continuing operations (in dollars per share) | 0.07 | 0.14 | ||
Discontinued operations (in dollars per share) | 0 | 0 | ||
Total (in dollars per share) | $ 0.07 | $ 0.14 | ||
Weighted average shares outstanding - basic | 15,633,000 | 17,490,000 | 16,503,000 | 17,510,000 |
Potential common shares | 107,000 | 47,000 | ||
Weighted average shares outstanding - diluted | 15,740,000 | 16,550,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 2,344,000 | $ (2,982,000) |
Loss from discontinued operations, net of tax | 0 | 61,000 |
Depreciation and amortization of financing fees | 1,848,000 | 2,227,000 |
Amortization of intangible assets | 180,000 | 232,000 |
Loss on long-lived asset impairment' | 36,000 | 0 |
Stock-based compensation | 439,000 | 721,000 |
Changes in deferred income taxes | 165,000 | 165,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (29,000) | 3,755,000 |
Inventories | 2,621,000 | (2,460,000) |
Prepaid expenses and other assets | (631,000) | (197,000) |
Accounts payable and other liabilities | 455,000 | (1,017,000) |
Net cash provided by (used in) operating activities | 7,428,000 | 505,000 |
INVESTING ACTIVITIES: | ||
Cash paid for property, equipment and improvements | (1,310,000) | (968,000) |
Change in restricted cash | 12,000 | 0 |
Net cash used in investing activities | (1,298,000) | (968,000) |
FINANCING ACTIVITIES: | ||
Cash paid to repurchase treasury stock | (9,266,000) | (589,000) |
Proceeds from the issuance of common stock | 28,000 | 11,000 |
Return of security deposit | 49,000 | 0 |
Net cash (used in) provided by financing activities | (9,189,000) | (578,000) |
Effect of exchange rate changes on cash and cash equivalents | (67,000) | 123,000 |
DECREASE IN CASH AND CASH EQUIVALENTS | (3,126,000) | (918,000) |
Cash and cash equivalents, beginning of period | 17,711,000 | 16,489,000 |
Cash and cash equivalents, end of period | $ 14,585,000 | $ 15,571,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Statement of Cash Flows [Abstract] | ||
Construction in progress included in accounts payable | $ 0 | $ 903,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 27, 2015 | |
Note 1 - Basis Of Presentation | |
Basis of Presentation | 1. BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements of Ultralife Corporation (the Company) and subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and with the instructions to Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the Condensed Consolidated Financial Statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the Consolidated Financial Statements and related notes thereto contained in our Form 10-K for the year ended December 31, 2014. The December 31, 2014 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. Our quarters end on the last Sunday of the third month in the quarter, as opposed to a calendar month-based cycle for each fiscal quarter. While the actual dates for the quarter-ends will change slightly each year, we believe that there are not any material differences when making quarterly comparisons. |
Note 2 - Share Repurchase Progr
Note 2 - Share Repurchase Program | 9 Months Ended |
Sep. 27, 2015 | |
Note 2 - Share Repurchase Program | |
Share Repurchase Program | 2. SHARE REPURCHASE PROGRAM On April 28, 2014, the Companys Board of Directors approved a share repurchase program (the Share Repurchase Program) which became effective on May 1, 2014, under which the Company was authorized to repurchase up to 1.8 million shares of its outstanding common stock over a period not to exceed twelve months. The Share Repurchase Program has been extended through April 30, 2016, and the maximum number of shares authorized to be repurchased under the program has been increased to 3.4 million shares. Share repurchases under this program are made in accordance with SEC Rule 10b-18 using a variety of methods, which may include open market purchases, privately negotiated transactions and block trades, or any combination of such methods, in compliance with applicable insider trading and other securities laws and regulations. With the exception of repurchases made during stock trading black-out periods under a 10b5-1 Plan, the timing, manner, price and amount of any repurchases are determined at the Companys discretion. The Share Repurchase Program may be suspended, terminated or modified by the Company at any time and for any reason. The Share Repurchase Program does not obligate the Company to repurchase any specific number of shares. During the three month period ended September 27, 2015, the Company repurchased 748,582 shares under this program for a total cost (excluding fees and commissions) of $3,357. During the nine month period ended September 27, 2015, the Company repurchased 2,225,437 shares under this program for a total cost (excluding fees and commissions) of $9,162. From the inception of the Share Repurchase Program on May 1, 2014 through October 28, 2015, the Company has repurchased 2,442,191 shares for an aggregate cost (excluding fees and commissions) of $9,877. The total remaining balance of shares authorized for repurchase under the Share Repurchase Program is 957,809 shares as of October 28, 2015. |
Note 3 - Inventories
Note 3 - Inventories | 9 Months Ended |
Sep. 27, 2015 | |
Note 4 - Inventories | |
Inventories | 3. INVENTORIES Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. The composition of inventories was: September 27, December 31, 2015 2014 Raw materials $ 12,601 $ 15,100 Work in process 1,874 1,489 Finished goods 8,877 9,497 Total $ 23,352 $ 26,086 |
Note 4 - Property, Equipment an
Note 4 - Property, Equipment and Improvements | 9 Months Ended |
Sep. 27, 2015 | |
Note 5 - Property Equipment And Improvements | |
Property, Equipment and Improvements | 4. PROPERTY, EQUIPMENT AND IMPROVEMENTS Major classes of property, equipment and improvements consisted of the following: September 27, December 31, 2015 2014 Land $ 123 $ 123 Buildings and leasehold improvements 7,441 7,437 Machinery and equipment 49,357 48,054 Furniture and fixtures 1,976 1,811 Computer hardware and software 4,562 4,452 Construction in process 679 1,351 64,138 63,228 Less-accumulated depreciation (54,947 ) (53,416 ) Net property, equipment and improvements $ 9,191 $ 9,812 Depreciation expense for property, equipment and improvements was as follows: Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Depreciation expense $ 617 $ 709 $ 1,795 $ 2,174 |
Note 5 - Goodwill, Intangible A
Note 5 - Goodwill, Intangible Assets and Long Term Assets | 9 Months Ended |
Sep. 27, 2015 | |
Note 6 - Goodwill Intangible Assets And Long Term Assets | |
Goodwill, Intangible Assets and Long Term Assets | 5. GOODWILL, INTANGIBLE ASSETS AND LONG TERM ASSETS a. Goodwill The following table summarizes the goodwill activity by segment for the nine-month periods ended September 27, 2015 and September 28, 2014: Battery & Energy Communi- cations Products Systems Total Balance - December 31, 2013 $ 4,926 $ 11,493 $ 16,419 Effect of foreign currency translation (12 ) (12 ) Balance September 28, 2014 4,914 11,493 16,407 Effect of foreign currency translation Balance - December 31, 2014 4,914 11,493 16,407 Effect of foreign currency translation (80 ) (80 ) Balance September 27, 2015 $ 4,834 $ 11,493 $ 16,327 b. Intangible Assets The composition of intangible assets was: at September 27, 2015 Accumulated Cost amortization Net Trademarks $ 3,563 $ $ 3,563 Patents and technology 4,491 (4,193 ) 298 Customer relationships 3,991 (3,715 ) 276 Distributor relationships 377 (359 ) 18 Total intangible assets $ 12,422 $ (8,267 ) $ 4,155 at December 31, 2014 Accumulated Cost amortization Net Trademarks $ 3,567 $ $ 3,567 Patents and technology 4,509 (4,114 ) 395 Customer relationships 4,029 (3,679 ) 350 Distributor relationships 391 (365 ) 26 Total intangible assets $ 12,496 $ (8,158 ) $ 4,338 Amortization expense for intangible assets was as follows: Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Amortization included in: Research and development $ 32 $ 44 $ 97 $ 131 Selling, general and administrative 29 34 83 101 Total amortization expense $ 61 $ 78 $ 180 $ 232 The change in the cost value of total intangible assets from December 31, 2014 to September 27, 2015 is a result of the effect of foreign currency translations. |
Note 6 - Revolving Credit Agree
Note 6 - Revolving Credit Agreement | 9 Months Ended |
Sep. 27, 2015 | |
Note 7 - Revolving Credit Agreement | |
Revolving Credit Agreement | 6. REVOLVING CREDIT AGREEMENT We have financing through a Revolving Credit, Guaranty and Security Agreement, dated as of May 24, 2013 (the Credit Agreement), and related security agreements with PNC Bank, National Association (PNC), which provides a $20 million secured asset-based revolving credit facility that includes a $1 million letter of credit sub-facility (the Credit Facility). The Credit Agreement provides that the Credit Facility may be increased with PNCs concurrence to an amount not to exceed $35 million, provided such increase must occur prior to the last six months of the term, which expires on May 24, 2017. Our available borrowing limit under the Credit Facility is based on a borrowing base formula equal to a percentage of accounts receivable, inventory and eligible foreign in-transit inventory. Interest is payable quarterly and accrues on outstanding indebtedness under the Credit Agreement at either a LIBOR-based rate or an alternate base rate, as defined in the Credit Agreement. We pay a quarterly fee on the Credit Facilitys unused availability at 0.375% per annum. As of September 27, 2015, we had approximately $9,666 of borrowing capacity in addition to our cash on hand of $14,585, and we had no outstanding borrowings or outstanding letters of credit under the Credit Facility at either September 27, 2015 or December 31, 2014. |
Note 7 - Shareholders' Equity
Note 7 - Shareholders' Equity | 9 Months Ended |
Sep. 27, 2015 | |
Note 8 - Shareholders Equity | |
Shareholders' Equity | 7. SHAREHOLDERS EQUITY We recorded non-cash stock compensation expense in each period as follows: Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Stock options $ 112 $ 142 $ 368 $ 430 Restricted stock grants: Employee 23 4 71 4 President and CEO 34 117 Board of Directors compensation stock grant 57 170 Total $ 135 $ 237 $ 439 $ 721 These are more fully discussed as follows: a. Stock Options We have stock options outstanding from various stock-based employee compensation plans for which we record compensation expense relating to share-based payment transactions in our financial statements. As of September 27, 2015, there was $414 of total unrecognized compensation expense related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.1 years. The following table summarizes stock option activity for the nine-month period ended September 27, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2015 2,056,122 $ 6.66 Granted 311,250 3.83 Exercised (8,502 ) 3.37 Forfeited or expired (68,166 ) 12.21 Outstanding at September 27, 2015 2,290,704 6.12 3.61 $ 1,985 Vested and expected to vest at September 27, 2015 2,151,104 6.27 3.47 $ 1,763 Exercisable at September 27, 2015 1,387,971 $ 5.10 2.69 $ 1,184 Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended September 27, 2015 and September 28, 2014 was $19 and $0, respectively. Cash received from stock option exercises for the nine-month periods ended September 27, 2015 and September 28, 2014 was $28 and $11, respectively. b. Restricted Stock Awards At September 27, 2015, our President and Chief Executive Officer held 60,000 unearned, unvested restricted stock units. These units vested subsequent to September 27, 2015 upon the satisfaction of the condition of our common stock having closed at a price of $5.00 per share or greater for 15 trading days in a 30 trading day period. In addition, 49,200 shares of restricted stock were awarded to certain of our employees in September, 2014. 16,400 shares of these awards vested in September 2015. There is $60 of unrecognized compensation expense related to these restricted shares at September 27, 2015. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 9 Months Ended |
Sep. 27, 2015 | |
Note 9 - Income Taxes | |
Income Taxes | 8. INCOME TAXES We use the asset and liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. For the three-month periods ended September 27, 2015 and September 28, 2014, we recorded $130 and $60, respectively, in income tax expense. For the nine-month periods ended September 27, 2015 and September 28, 2014, we recorded $312 and $177, respectively, in income tax expense. These are detailed as follows: Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Current income tax provision: Foreign $ 44 $ $ 87 $ Federal 26 48 State 5 5 12 12 Deferred income tax provision 55 55 165 165 Total $ 130 $ 60 $ 312 $ 177 Deferred income tax provision is primarily due to the recognition of deferred tax liabilities generated from goodwill and certain intangible assets that cannot be predicted to reverse for book purposes during our loss carryforward periods. The remaining expense in 2015 was primarily due to the income reported for our China operations during the period and estimated U.S. federal alternative minimum taxes, while the remaining expense in 2014 was primarily due to state income taxes. Our overall effective tax rate is the result of the combination of income and losses in each of our tax jurisdictions, which is particularly influenced by the fact that we have recorded a full reserve against our deferred tax assets pertaining to cumulative historical losses for our U.S. operations and our U.K. subsidiary, as management does not believe, at this time, that it is more likely than not that we will realize the benefit of these losses. Our tax rate for the nine-month period ended September 27, 2015 was 11.7%, which was different from the federal statutory rate due to the effect of the utilization of fully reserved net operating loss carryforwards (NOL) as well as the effect of differing foreign income tax rates, principally in China. Our tax rate for the nine-month period ended September 28, 2014 was (6.5%), which was different from the federal statutory rate due to the loss incurred and our full reserve against our NOLs, and the effect of differing foreign income tax rates, principally in China. We have substantial NOLs available to offset taxable income in the United States. However, we remain subject to the alternative minimum tax in the United States. The alternative minimum tax limits the amount of NOL available to offset taxable income to 90% of the current year income. We recorded a provision of $26 and $48 for U.S. alternative minimum tax for the three and nine months ended September 27, 2015, respectively, and no alternative minimum tax in either the three or nine months ended September 28, 2014. The payment of the alternative minimum tax normally results in the establishment of a deferred tax asset; however, we have established a full valuation allowance for this related deferred tax asset. As of September 27, 2015, we have foreign and domestic NOL and credit carryforwards totaling approximately $85,200 and $1,400 available to reduce future taxable income. Included in our NOL carryforwards are foreign loss carryforwards of approximately $12,400 that can be carried forward indefinitely. The domestic NOL carryforward of $72,800 expires from 2019 through 2035. The domestic NOL carryforward includes approximately $2,900 for which a benefit will be recorded in capital in excess of par value when realized. Our unrecognized tax benefits related to uncertain tax positions at September 27, 2015 pertain to foreign tax jurisdictions. The following table summarizes the activity related to our unrecognized tax benefits: Nine month periods ended September 27, September 28, 2015 2014 Balance beginning of period $ 7,296 $ 7,296 Increases related to current year tax positions Increases related to prior year tax positions Decreases related to prior year tax positions Expiration of statute of limitations for assessment of taxes Settlements of examinations (7,296 ) Balance end of period $ $ 7,296 The release of uncertain tax positions in 2015 relates to the conclusion of a federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carryforward. We file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for the years 2000 through 2014 remain subject to examination by the Internal Revenue Service (IRS) and by various state and local tax jurisdictions due to our NOL carryforwards. Our tax matters for the years 2007 through 2014 remain subject to examination by the respective foreign tax jurisdiction authorities. |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 9 Months Ended |
Sep. 27, 2015 | |
Note 10 - Earnings Per Share | |
Earnings Per Share | 9. EARNINGS PER SHARE Basic earnings per share (EPS) is computed by dividing earnings attributable to the Companys common shareholders by the weighted-average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method. For the three-month period ended September 27, 2015, 1,026,282 stock options and 34,200 restricted stock units were included in the calculation of Diluted EPS as such securities are dilutive. Inclusion of these securities resulted in 107,000 additional shares in the calculation of fully diluted earnings per share. For the nine-month period ended September 27, 2015, 431,532 stock options and 34,200 restricted stock units were included in the calculation of Diluted EPS as such securities are dilutive. Inclusion of these securities resulted in 47,000 additional shares in the calculation of fully diluted earnings per share. D There were 1,264,422 and 2,020,588 outstanding stock options for the three-month periods ended September 27, 2015 and September 28, 2014, respectively, that were not included in EPS as the effect would be anti-dilutive. There were 1,859,172 and 2,020,588 outstanding stock options for the nine-month periods ended September 27, 2015 and September 28, 2014, respectively, that were not included in EPS as the effect would be anti-dilutive. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2015 | |
Note 11 - Commitments And Contingencies | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES a. Purchase Commitments As of September 27, 2015, we have made commitments to purchase approximately $358 of production machinery and equipment. b. Product Warranties We estimate future costs associated with expected product failure rates, material usage and service costs in the development of our warranty obligations. Warranty reserves are based on historical experience of warranty claims and generally will be estimated as a percentage of sales over the warranty period. In the event the actual results of these items differ from the estimates, an adjustment to the warranty obligation would be recorded. Changes in our product warranty liability during the first nine months of 2015 and 2014 were as follows: Nine month periods ended September 27, 2015 September 28, 2014 Accrued warranty obligations beginning $ 376 $ 513 Accruals for warranties issued 16 77 Settlements made (29 ) (90 ) Effect of foreign currency translation (5 ) Accrued warranty obligations ending $ 358 $ 500 c. Contingencies and Legal Matters We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of such matters, other than the matters described below, will not have a material adverse effect on our financial position, results of operations or cash flows. Dreamliner Litigation In July 2013, an unoccupied Boeing 787 Dreamliner aircraft operated by Ethiopian Airlines was damaged by a fire while parked at London Heathrow Airport. We participated in and provided technical assistance in support of an investigation of this incident conducted by U.K. and U.S. regulatory authorities as well as by the manufacturer of the aircraft, as we are one of many downstream suppliers to that manufacturer. A final report was issued by the Air Accidents Investigative Branch - - UK Civil Aviation regulatory authority, with findings indicating that the fire was caused by circumstances related to the planes emergency locator transmitter (ELT) manufactured and installed by another company. On May 4, 2015, we were notified of a lawsuit in which we were named, along with other suppliers to the aircraft manufacturer, concerning that 2013 fire. The suit was filed by Ethiopian Airlines Enterprise in the Commercial Court, Queens Bench Division of the High Court of Justice, London. The suit seeks as damages USD 42 million plus other unspecified amounts, including those for loss of use and diminution in value of the aircraft. We maintain liability and products liability insurance through reputable providers, and in accordance with our corporate practices, immediately advised and referred this matter to our insurers. We are working with those insurers and their counsel to respond to and actively defend against this action. A component of the ELT is a battery pack which incorporates Ultralifes industry-standard lithium manganese dioxide non-rechargeable D-cell. Ultralife has had this cell in production since 2001, with millions of units produced and this cell is widely-used for global defense and commercial applications. This battery product has gone through rigorous safety and qualification testing, including United Nations Transport of Dangerous Goods, Manual of Tests and Criteria, and is authorized for use in aerospace applications under Technical Standard Order C142. At this time, we believe that there is not a reasonable possibility that this incident will result in a material financial exposure to the Company. Arista Power Litigation In September 2011, we initiated an action against Arista Power, Inc. (Arista) and our former employee, David Modeen (Modeen), in the State of New York Supreme Court, County of Wayne, in which we allege that Arista recruited all but one of the members of its executive team from us, subsequently changed and redirected its business to compete directly with us by using our confidential information, and during the summer of 2011, recruited Modeen to become an Arista employee. As more fully disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014, we allege that both Arista and Modeen breached agreements with us, that Aristas employment of Modeen will inevitably lead to the disclosure and use of our trade secrets by Arista. We seek damages as determined at trial and preliminary and permanent injunctive relief. The defendants answered the allegations set forth in the Complaint and asserted claims against us , We initiated the September 2011 Complaint against Arista Power to protect our shareholders, customers Discovery in this action is ongoing, and we plan to continue to pursue our complaint against Arista. It is not possible to predict the outcome of this action, whether we will be granted the injunctive relief we seek, nor the monetary amount, if any, which we may be awarded should we prevail. |
Note 11 - Business Segment Info
Note 11 - Business Segment Information | 9 Months Ended |
Sep. 27, 2015 | |
Note 12 - Business Segment Information | |
Business Segment Information | 11. BUSINESS SEGMENT INFORMATION We report our results in two operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes: lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories, such as cables. The Communications Systems segment includes: power supplies, cable and connector assemblies, RF amplifiers, amplified speakers, equipment mounts, case equipment, integrated communication system kits and communications and electronics systems design. We believe that reporting performance at the gross profit level is the best indicator of segment performance. As such, we report segment performance at the gross profit level and operating expenses as Corporate charges . The components of segment performance were as follows: Three-Month Period Ended September 27, 2015: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 16,390 $ 2,654 $ $ $ 19,044 Segment contribution 4,774 1,126 (4,727 ) 1,173 Interest, financing and miscellaneous expense, net 5 5 Tax provision (130 ) (130 ) Discontinued operations Noncontrolling interest (1 ) (1 ) Net income attributable to Ultralife $ 1,047 Total assets $ 35,828 $ 28,191 $ $ 17,333 $ 81,352 Three-Month Period Ended September 28, 2014: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 13,913 $ 2,149 $ $ $ 16,062 Segment contribution 3,812 674 (4,541 ) (55 ) Interest, financing and miscellaneous expense, net (211 ) (211 ) Tax provision (60 ) (60 ) Noncontrolling interest 3 3 Net loss attributable to Ultralife $ (323 ) Total assets $ 39,568 $ 29,649 $ $ 18,323 $ 87,540 Nine-Month Period Ended September 27, 2015: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 48,638 $ 8,538 $ $ $ 57,176 Segment contribution 14,100 3,666 (14,954 ) 2,812 Interest, financing and miscellaneous expense, net (156 ) (156 ) Tax provision (312 ) (312 ) Noncontrolling interest 23 23 Net income attributable to Ultralife $ 2,367 Nine-Month Period Ended September 28, 2014: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 40,000 $ 6,546 $ $ $ 46,546 Segment contribution 10,489 2,544 (15,508 ) (2,475 ) Interest, financing and miscellaneous expense, net (269 ) (269 ) Tax provision (177 ) (177 ) Discontinued operations (61 ) (61 ) Noncontrolling interest 13 13 Net loss attributable to Ultralife $ (2,969 ) |
Note 12 - Fair Value of Financi
Note 12 - Fair Value of Financial Instruments | 9 Months Ended |
Sep. 27, 2015 | |
Note 13 - Fair Value Of Financial Instruments | |
Fair Value of Financial Instruments | 12. FAIR VALUE OF FINANCIAL INSTRUMENTS FASBs guidance for the disclosure regarding fair value of financial instruments requires disclosure of an estimate of the fair value of certain financial instruments. The fair value of financial instruments pursuant to FASBs guidance for the disclosure regarding fair value of financial instruments approximated their carrying values at September 27, 2015 and December 31, 2014. |
Note 13 - Fire at Manufacturing
Note 13 - Fire at Manufacturing Facility | 9 Months Ended |
Sep. 27, 2015 | |
Note 14 - Fire At Manufacturing Facility | |
Fire at Manufacturing Facility | 13. FIRE AT MANUFACTURING FACILITY In June 2011, we experienced a fire that damaged certain inventory and machinery and equipment at our facility in China. The total amount of the loss pertaining to assets and the related expenses was approximately $1,589. We have pursued a claim against our insurance policy, with the majority of our insurance claim related to the recovery of damaged inventory. We have received payments in June 2012 and April 2013 totaling approximately $1,286 as a partial payment on our insurance claim, which resulted in no gain or loss being recognized. As of September 27, 2015, we reflect a receivable from the insurance company relating to this claim of $177, which is net of our deductible of approximately $130, and represents additional proceeds expected to be received. |
Note 14 - Recent Accounting Pro
Note 14 - Recent Accounting Pronouncements and Developments | 9 Months Ended |
Sep. 27, 2015 | |
Note 15 - Recent Accounting Pronouncements And Developments | |
Recent Accounting Pronouncements and Developments | 14. RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. In April 2015, the FASB proposed a one year delay in the effective date of ASU 2014-09. This standard currently becomes effective for the Company on January 1, 2017, and the one-year delay, if promulgated as proposed, will make this standard effective for the Company on January 1, 2018. The Company is currently evaluating the potential impact of this new guidance as well as the available transition methods. |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 4 - Inventories Tables | |
Inventories Tables | September 27, December 31, 2015 2014 Raw materials $ 12,601 $ 15,100 Work in process 1,874 1,489 Finished goods 8,877 9,497 Total $ 23,352 $ 26,086 |
Note 4 - Property, Equipment 22
Note 4 - Property, Equipment and Improvements (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 5 - Property Equipment And Improvements Tables | |
Property, Equipment and Improvements Tables | September 27, December 31, 2015 2014 Land $ 123 $ 123 Buildings and leasehold improvements 7,441 7,437 Machinery and equipment 49,357 48,054 Furniture and fixtures 1,976 1,811 Computer hardware and software 4,562 4,452 Construction in process 679 1,351 64,138 63,228 Less-accumulated depreciation (54,947 ) (53,416 ) Net property, equipment and improvements $ 9,191 $ 9,812 |
Depreciation expense | Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Depreciation expense $ 617 $ 709 $ 1,795 $ 2,174 |
Note 5 - Goodwill, Intangible23
Note 5 - Goodwill, Intangible Assets and Long Term Assets (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 6 - Goodwill Intangible Assets And Long Term Assets Tables | |
Schedule of Goodwill Activity by Segment | Battery & Energy Communi- cations Products Systems Total Balance - December 31, 2013 $ 4,926 $ 11,493 $ 16,419 Effect of foreign currency translation (16 ) (16 ) Balance September 28, 2014 4,910 11,493 16,403 Effect of foreign currency translation 4 4 Balance - December 31, 2014 4,914 11,493 16,407 Effect of foreign currency translation (80 ) (80 ) Balance September 27, 2015 $ 4,834 $ 11,493 $ 16,327 |
Schedule of Intangible Assets | at September 27, 2015 Accumulated Cost amortization Net Trademarks $ 3,563 $ $ 3,563 Patents and technology 4,491 (4,193 ) 298 Customer relationships 3,991 (3,715 ) 276 Distributor relationships 377 (359 ) 18 Total intangible assets $ 12,422 $ (8,267 ) $ 4,155 at December 31, 2014 Accumulated Cost amortization Net Trademarks $ 3,567 $ $ 3,567 Patents and technology 4,509 (4,114 ) 395 Customer relationships 4,029 (3,679 ) 350 Distributor relationships 391 (365 ) 26 Total intangible assets $ 12,496 $ (8,158 ) $ 4,338 |
Schedule of Amortization of Intangible Assets | Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Amortization included in: Research and development $ 32 $ 44 $ 97 $ 131 Selling, general and administrative 29 34 83 101 Total amortization expense $ 61 $ 78 $ 180 $ 232 |
Note 7 - Shareholders' Equity (
Note 7 - Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 8 - Shareholders Equity Tables | |
Components of Stock Compensation Expense | Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Stock options $ 112 $ 142 $ 368 $ 430 Restricted stock grants: Employee 23 4 71 4 President and CEO 34 117 Board of Directors compensation stock grant 57 170 Total $ 135 $ 237 $ 439 $ 721 |
Schedule of Stock Option Activity | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2015 2,056,122 $ 6.66 Granted 311,250 3.83 Exercised (8,502 ) 3.37 Forfeited or expired (68,166 ) 12.21 Outstanding at September 27, 2015 2,290,704 6.12 3.61 $ 1,985 Vested and expected to vest at September 27, 2015 2,151,104 6.27 3.47 $ 1,763 Exercisable at September 27, 2015 1,387,971 $ 5.10 2.69 $ 1,184 |
Note 8 - Income Taxes (Tables)
Note 8 - Income Taxes (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 9 - Income Taxes Tables | |
Schedule of tax provision components | Three-month periods ended Nine-month periods ended September 27, September 28, September 27, September 28, 2015 2014 2015 2014 Current income tax provision: Foreign $ 44 $ $ 87 $ Federal 26 48 State 5 5 12 12 Deferred income tax provision 55 55 165 165 Total $ 130 $ 60 $ 312 $ 177 |
Schedule of Unrecognized Tax Benefits | Nine month periods ended September 27, September 28, 2015 2014 Balance beginning of period $ 7,296 $ 7,296 Increases related to current year tax positions Increases related to prior year tax positions Decreases related to prior year tax positions Expiration of statute of limitations for assessment of taxes Settlements of examinations (7,296 ) Balance end of period $ $ 7,296 |
Note 10 - Commitments and Con26
Note 10 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 11 - Commitments And Contingencies Tables | |
Rollforward of Accrued Warranty Obligations | Nine month periods ended September 27, 2015 September 28, 2014 Accrued warranty obligations beginning $ 376 $ 513 Accruals for warranties issued 16 77 Settlements made (29 ) (90 ) Effect of foreign currency translation (5 ) Accrued warranty obligations ending $ 358 $ 500 |
Note 11 - Business Segment In27
Note 11 - Business Segment Information (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Note 12 - Business Segment Information Tables | |
Segment disclosure | Three-Month Period Ended September 27, 2015: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 16,390 $ 2,654 $ $ $ 19,044 Segment contribution 4,774 1,126 (4,727 ) 1,173 Interest, financing and miscellaneous expense, net 5 5 Tax provision (130 ) (130 ) Discontinued operations Noncontrolling interest (1 ) (1 ) Net income attributable to Ultralife $ 1,047 Total assets $ 35,828 $ 28,191 $ $ 17,333 $ 81,352 Three-Month Period Ended September 28, 2014: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 13,913 $ 2,149 $ $ $ 16,062 Segment contribution 3,812 674 (4,541 ) (55 ) Interest, financing and miscellaneous expense, net (211 ) (211 ) Tax provision (60 ) (60 ) Noncontrolling interest 3 3 Net loss attributable to Ultralife $ (323 ) Total assets $ 39,568 $ 29,649 $ $ 18,323 $ 87,540 Nine-Month Period Ended September 27, 2015: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 48,638 $ 8,538 $ $ $ 57,176 Segment contribution 14,100 3,666 (14,954 ) 2,812 Interest, financing and miscellaneous expense, net (156 ) (156 ) Tax provision (312 ) (312 ) Noncontrolling interest 23 23 Net income attributable to Ultralife $ 2,367 Nine-Month Period Ended September 28, 2014: Battery & Energy Products Communi- cations systems Discontinued operations Corporate Total Revenues $ 40,000 $ 6,546 $ $ $ 46,546 Segment contribution 10,489 2,544 (15,508 ) (2,475 ) Interest, financing and miscellaneous expense, net (269 ) (269 ) Tax provision (177 ) (177 ) Discontinued operations (61 ) (61 ) Noncontrolling interest 13 13 Net loss attributable to Ultralife $ (2,969 ) |
Note 2 - Share Repurchase Pro28
Note 2 - Share Repurchase Program (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 18 Months Ended | 24 Months Ended | |
Sep. 27, 2015 | Sep. 27, 2015 | Jun. 02, 2016 | Apr. 30, 2016 | Oct. 28, 2015 | Apr. 30, 2016 | |
Note 2 - Share Repurchase Program Details Narrative | ||||||
Maximum number of shares the Company is authorized to repurchase | 1,800,000 | 1,800,000 | ||||
Additional number of shares the Company is authorized to repurchase | 1,600,000 | |||||
Shares repurchased | 748,582 | 2,225,437 | 2,442,191 | |||
Cost of shares repurchased | $ 3,357,000 | $ 9,162,000 | $ 9,877,000 | |||
Balance - shares authorized to be repurchased | 957,809 |
Note 3 - Inventories (Detail)
Note 3 - Inventories (Detail) - USD ($) | Sep. 27, 2015 | Dec. 31, 2014 |
Note 4 - Inventories Detail | ||
Raw materials | $ 12,601,000 | $ 15,100,000 |
Work in process | 1,874,000 | 1,489,000 |
Finished products | 8,877,000 | 9,497,000 |
Total | $ 23,352,000 | $ 26,086,000 |
Note 4 - Property, Equipment 30
Note 4 - Property, Equipment and Improvements (Details) - USD ($) | Sep. 27, 2015 | Dec. 31, 2014 |
Note 5 - Property Equipment And Improvements Details | ||
Land | $ 123,000 | $ 123,000 |
Buildings and leasehold improvements | 7,441,000 | 7,437,000 |
Machinery and equipment | 49,357,000 | 48,054,000 |
Furniture and fixtures | 1,976,000 | 1,811,000 |
Computer hardware and software | 4,562,000 | 4,452,000 |
Construction in progress | 679,000 | 1,351,000 |
Total | 64,138,000 | 63,228,000 |
Less-Accumulated depreciation | (54,947,000) | (53,416,000) |
Total | $ 9,191,000 | $ 9,812,000 |
Note 4 - Property, Equipment 31
Note 4 - Property, Equipment and Improvements (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Note 5 - Property Equipment And Improvements Details Narrative | ||||
Depreciation expense | $ 617,000 | $ 754,000 | $ 1,795,000 | $ 1,465,000 |
Note 5 - Goodwill, Intangible32
Note 5 - Goodwill, Intangible Assets and Long Term Assets Goodwill Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Goodwill - beginning | $ 16,407,000 | $ 16,407,000 | $ 16,419,000 |
Effect of foreign currency translation | 0 | (80,000) | (12,000) |
Goodwill - ending | 16,407,000 | 16,327,000 | 16,407,000 |
Battery & Energy Products | |||
Goodwill - beginning | 4,914,000 | 4,914,000 | 4,926,000 |
Effect of foreign currency translation | 0 | (80,000) | (12,000) |
Goodwill - ending | 4,914,000 | 4,834,000 | 4,914,000 |
Communications Systems | |||
Goodwill - beginning | 11,493,000 | 11,493,000 | 11,493,000 |
Effect of foreign currency translation | 0 | 0 | 0 |
Goodwill - ending | $ 11,493,000 | $ 11,493,000 | $ 11,493,000 |
Note 5 - Goodwill, Intangible33
Note 5 - Goodwill, Intangible Assets and Long Term Assets Composition of Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Amortization expense | $ 61,000 | $ 78,000 | $ 180,000 | $ 232,000 |
Selling, General and Administrative Expenses | ||||
Amortization expense | 29,000 | 34,000 | 83,000 | 101,000 |
Research and Development Expense | ||||
Amortization expense | $ 32,000 | $ 44,000 | $ 97,000 | $ 131,000 |
Note 5 - Goodwill, Intangible34
Note 5 - Goodwill, Intangible Assets and Long Term Assets (Details Narrative) - USD ($) | Sep. 27, 2015 | Dec. 31, 2014 |
Cost | $ 12,422,000 | $ 12,496,000 |
Accumulated Amortization | (8,267,000) | (8,158,000) |
Net | 4,155,000 | 4,338,000 |
Distributor Relationships | ||
Cost | 377,000 | 391,000 |
Accumulated Amortization | (359,000) | (365,000) |
Net | 18,000 | 26,000 |
Trademarks [Member] | ||
Cost | 3,563,000 | 3,567,000 |
Accumulated Amortization | 0 | 0 |
Net | 3,563,000 | 3,567,000 |
Customer Relationships | ||
Cost | 3,991,000 | 4,029,000 |
Accumulated Amortization | (3,715,000) | (3,679,000) |
Net | 276,000 | 350,000 |
Patents and Technology | ||
Cost | 4,491,000 | 4,509,000 |
Accumulated Amortization | (4,193,000) | (4,114,000) |
Net | $ 298,000 | $ 395,000 |
Note 6 - Revolving Credit Agr35
Note 6 - Revolving Credit Agreement (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 27, 2015 | May. 24, 2017 | Dec. 31, 2014 | Sep. 28, 2014 | Dec. 31, 2013 | |
Note 7 - Revolving Credit Agreement Details Narrative | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||||
Letter of credit sub-facility | $ 1,000,000 | ||||
Line of Credit Maximum Borrowing Capacity may be increased in the last six months of the term | $ 35,000,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||
Line of Credit Facility, Amount Outstanding | $ 0 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 9,666,000 | ||||
Unrestricted Cash on hand | $ 14,585,000 | $ 17,711,000 | $ 15,571,000 | $ 16,489,000 |
Note 7 - Shareholders' Equity36
Note 7 - Shareholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Stock compensation expense | $ 135,000 | $ 237,000 | $ 439,000 | $ 721,000 |
Stock Options | ||||
Stock compensation expense | 112,000 | 142,000 | 368,000 | 430,000 |
CEO Restricted Stock expense | ||||
Stock compensation expense | 0 | 34,000 | 0 | 117,000 |
Employee Restricted Stock | ||||
Stock compensation expense | 23,000 | 4,000 | 71,000 | 4,000 |
Board of Directors Stock Grant | ||||
Stock compensation expense | $ 0 | $ 57,000 | $ 0 | $ 170,000 |
Note 7 - Shareholders' Equity O
Note 7 - Shareholders' Equity Option Rollforward (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 27, 2015 | Dec. 31, 2014 | |
Note 8 - Shareholders Equity Option Rollforward Details Narrative | ||
Options outstanding | 2,290,704 | 2,056,122 |
Options outstanding - weighted average exercise price | $ 6.12 | $ 6.66 |
Options outstanding - weighted average remaining contractual term (years) | 3 years 223 days | |
Options outstanding - aggregate intrinsic value | $ 1,985,000 | |
Options granted | 311,250 | |
Options granted - weighted average exercise price | $ 3.83 | |
Options exercised | 8,502 | |
Options exercised - weighted average exercise price | $ 3.37 | |
Options forfeited or expired | 68,166 | |
Options forfeited or expired - weighted average exercise price | $ 12.21 | |
Options vested and expected to vest | 2,151,104 | |
Options vested and expected to vest - weighted average exercise price | $ 6.27 | |
Options vested and expected to vest - weighted average remaining contractual term (years) | 3 years 172 days | |
Options vested and expected to vest - aggregate intrinsic value | $ 1,763,000 | |
Options Exercisable | 1,387,971 | |
Options exercisable - weighted average exercise price | $ 5.10 | |
Options exercisable - weighted average remaining contractual term (years) | 2 years 252 days | |
Options exercisable - aggregate intrinsic value | $ 1,184,000 |
Note 7 - Shareholders' Equity38
Note 7 - Shareholders' Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Note 8 - Shareholders Equity Option Rollforward Details Narrative | |||||
Unrecognized stock option compensation cost | $ 414,000 | $ 414,000 | |||
Weighted average period over which unrecognized stock option compensation cost will be recognized (in years) | 1 year 37 days | ||||
Cash received upon the exercise of stock options | $ 19,000 | $ 0 | 28,000 | $ 11,000 | |
Unrecognized compensation cost related to restricted stock awards | $ 60,000 | $ 60,000 | |||
Unvested restricted stock units - President & CEO | 60,000 | 60,000 | |||
Shares of restricted stock awarded to certain employees | 49,200 | ||||
Shares of restricted stock awarded to certain employees - vested during period | 16,400 |
Note 8 - Income Taxes (Details)
Note 8 - Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Note 9 - Income Taxes Details | ||||
Foreign tax provision | $ 44,000 | $ 0 | $ 87,000 | $ 0 |
Federal tax provision | 26,000 | 0 | 48,000 | 0 |
State tax provision | 5,000 | 5,000 | 12,000 | 12,000 |
Deferred tax provision | 55,000 | 55,000 | 165,000 | 165,000 |
Total income tax provision | $ 130,000 | $ 60,000 | $ 312,000 | $ 177,000 |
Note 8 - Income Taxes Unrecogni
Note 8 - Income Taxes Unrecognized Tax Benefits (Details) - USD ($) | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Note 9 - Income Taxes Unrecognized Tax Benefits Details | ||
Unrecognized tax benefits - beginning | $ 7,296,000 | $ 7,296,000 |
Settlements of examinations | (7,296,000) | 0 |
Unrecognized tax benefits - ending | $ 0 | $ 7,296,000 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2015 | Sep. 27, 2015 | Sep. 28, 2014 | |
Note 9 - Income Taxes Details Narrative | |||
Net operating loss carryforward | $ 85,200,000 | $ 85,200,000 | |
Net operating loss carryforward - domestic | 72,800,000 | 72,800,000 | |
Net operating loss carryforward - foreign | 12,400,000 | 12,400,000 | |
Tax credit carryforwards | 1,400,000 | 1,400,000 | |
Net operating loss carryforward for which a benefit will be recorded in capital when realized | 2,900,000 | $ 2,900,000 | |
Income tax rate | 11.70% | (6.50%) | |
Alternative minimum tax provision recorded | $ 26,000 | $ 48,000 |
Note 9 - Earnings Per Share (De
Note 9 - Earnings Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Note 10 - Earnings Per Share Details Narrative | ||||
Employee stock options excluded from calculation of diluted earnings per share | 1,264,422 | 2,020,588 | 1,859,172 | 2,020,588 |
Incremental shares included in EPS denominator due to share based payment arrangements | 107,000 | 47,000 | ||
Number of Employee stock options included in calculation of diluted earnings per share | 1,026,282 | 0 | 431,532 | 0 |
Number of restricted shares included in calculation of diluted earnings per share | 34,200 | 0 | 34,200 | 0 |
Note 10 Commitments and Conting
Note 10 Commitments and Contingencies Warranty Obligations (Details) - USD ($) | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Note 11 Commitments And Contingencies Warranty Obligations Details | ||
Accrued warranty obligations - beginning | $ 376,000 | $ 513,000 |
Accrual for warranties issued | 16,000 | 77,000 |
Settlements made | (29,000) | (90,000) |
Effect of foreign currency translation | (5,000) | |
Accrued warranty obligations - ending | $ 358,000 | $ 500,000 |
Note 10 Commitments and Conti44
Note 10 Commitments and Contingencies (Detail Narrative) | Sep. 27, 2015USD ($) |
Note 11 Commitments And Contingencies Detail Narrative | |
Unrecorded Unconditional Purchase Obligation | $ 358,000 |
Note 11 - Business Segment In45
Note 11 - Business Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 31, 2014 | |
Revenue | $ 19,044,000 | $ 16,062,000 | $ 57,176,000 | $ 46,546,000 | |
Segment contribution | 1,173,000 | (55,000) | 2,812,000 | (2,475,000) | |
Interest, financing and miscellaneous expense, net | 5,000 | (211,000) | (156,000) | (269,000) | |
Income tax provision | (130,000) | (60,000) | (312,000) | (177,000) | |
Income (loss) from discontinued operations | 0 | (61,000) | |||
Noncontrolling interest | (1,000) | 3,000 | 23,000 | 13,000 | |
Net loss attributable to Ultralife | 1,047,000 | (323,000) | 2,367,000 | (2,969,000) | |
Total assets | 81,352,000 | 87,540,000 | 81,352,000 | 87,540,000 | $ 87,642,000 |
Communications Systems | |||||
Revenue | 2,654,000 | 2,149,000 | 8,538,000 | 6,546,000 | |
Segment contribution | 1,126,000 | 674,000 | 3,666,000 | 2,544,000 | |
Total assets | 28,191,000 | 29,649,000 | 28,191,000 | 29,649,000 | |
Corporate | |||||
Revenue | 0 | 0 | 0 | 0 | |
Segment contribution | (4,727,000) | (4,541,000) | (14,954,000) | (15,508,000) | |
Interest, financing and miscellaneous expense, net | 5,000 | (211,000) | (156,000) | (269,000) | |
Income tax provision | (130,000) | (60,000) | (312,000) | (177,000) | |
Noncontrolling interest | (1,000) | 3,000 | 23,000 | 13,000 | |
Total assets | 17,333,000 | 18,323,000 | 17,333,000 | 18,323,000 | |
Discontinued Operations | |||||
Revenue | 0 | 0 | 0 | 0 | |
Segment contribution | 0 | 0 | 0 | 0 | |
Income (loss) from discontinued operations | (61,000) | ||||
Battery & Energy Products | |||||
Revenue | 16,390,000 | 13,913,000 | 48,638,000 | 40,000,000 | |
Segment contribution | 4,774,000 | 3,812,000 | 14,100,000 | 10,489,000 | |
Total assets | $ 35,828,000 | $ 39,568,000 | $ 35,828,000 | $ 39,568,000 |
Note 12 - Fire at Manufacturing
Note 12 - Fire at Manufacturing Facility (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2013 | Jun. 30, 2011 | Sep. 27, 2015 | |
Note 14 - Fire At Manufacturing Facility Details Narrative | |||
Business Interruption Loss, Gross | $ 1,589,000 | ||
Proceeds from Insurance Settlement, Operating Activities | $ 1,286,000 | ||
Gain on Business Interruption Insurance Recovery | $ 0 | ||
Insurance Settlements Receivable | $ 177,000 | ||
Business Interruption, Insurance Deductible | $ 130,000 |