Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 12, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Scott's Liquid Gold - Inc. | |
Entity Central Index Key | 88,000 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SLGD | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 12,408,177 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 9,686 | $ 10,341 | $ 27,921 | $ 30,657 |
Cost of sales | 4,808 | 5,420 | 14,644 | 16,649 |
Gross Profit | 4,878 | 4,921 | 13,277 | 14,008 |
Operating expenses: | ||||
Advertising | 324 | 110 | 1,206 | 531 |
Selling | 2,063 | 1,583 | 5,536 | 4,879 |
General and administrative | 1,079 | 1,063 | 3,604 | 3,166 |
Total operating expenses | 3,466 | 2,756 | 10,346 | 8,576 |
Income from operations | 1,412 | 2,165 | 2,931 | 5,432 |
Interest expense | (5) | (26) | (77) | (102) |
Income before income taxes | 1,407 | 2,139 | 2,854 | 5,330 |
Income tax expense | (340) | (664) | (699) | (1,899) |
Net income | $ 1,067 | $ 1,475 | $ 2,155 | $ 3,431 |
Net income per common share | ||||
Basic | $ 0.09 | $ 0.12 | $ 0.18 | $ 0.29 |
Diluted | $ 0.09 | $ 0.12 | $ 0.17 | $ 0.28 |
Weighted average shares outstanding | ||||
Basic | 12,162 | 11,886 | 12,039 | 11,841 |
Diluted | 12,540 | 12,360 | 12,581 | 12,218 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 5,646 | $ 4,114 |
Accounts receivable, net | 3,346 | 3,104 |
Inventories, net | 8,387 | 8,787 |
Income taxes receivable | 177 | |
Prepaid expenses | 312 | 285 |
Total current assets | 17,868 | 16,290 |
Property and equipment, net | 988 | 909 |
Deferred tax asset | 483 | 384 |
Goodwill | 1,521 | 1,521 |
Intangible assets, net | 5,683 | 6,148 |
Other assets | 49 | 49 |
Total assets | 26,592 | 25,301 |
Current liabilities: | ||
Accounts payable | 1,862 | 1,656 |
Accrued expenses | 763 | 936 |
Income taxes payable | 366 | |
Current maturities of long-term debt | 800 | |
Total current liabilities | 2,625 | 3,758 |
Long-term debt, net of current maturities and debt issuance costs | 362 | |
Total liabilities | 2,625 | 4,120 |
Shareholders’ equity: | ||
Preferred stock, no par value, authorized 20,000,000 shares; no shares issued and outstanding | ||
Common stock; $0.10 par value, authorized 50,000,000 shares; issued and outstanding 12,408,177 shares (2018) and 11,885,839 shares (2017) | 1,241 | 1,189 |
Capital in excess of par | 7,020 | 6,441 |
Retained earnings | 15,706 | 13,551 |
Total shareholders’ equity | 23,967 | 21,181 |
Total liabilities and shareholders’ equity | $ 26,592 | $ 25,301 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,408,177 | 11,885,839 |
Common stock, shares outstanding | 12,408,177 | 11,885,839 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 2,155 | $ 3,431 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 626 | 591 |
Stock-based compensation | 184 | 184 |
Deferred income taxes | (99) | 829 |
Change in operating assets and liabilities: | ||
Accounts receivable | (242) | 304 |
Inventories | 400 | (3,843) |
Prepaid expenses and other assets | (27) | (75) |
Income taxes (receivable) payable | (543) | 204 |
Accounts payable and accrued expenses | 33 | 335 |
Total adjustments to net income | 332 | (1,471) |
Net cash provided by operating activities | 2,487 | 1,960 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (202) | (353) |
Net cash used by investing activities | (202) | (353) |
Cash flows from financing activities: | ||
Repayments under line-of-credit | (750) | |
Repayments of long-term debt | (1,200) | (600) |
Proceeds from exercise of stock options | 447 | 35 |
Net cash used by financing activities | (753) | (1,315) |
Net increase in cash and cash equivalents | 1,532 | 292 |
Cash and cash equivalents, beginning of period | 4,114 | 2,097 |
Cash and cash equivalents, end of period | 5,646 | 2,389 |
Supplemental disclosures: | ||
Cash paid during the period for interest | 39 | 102 |
Cash paid during the period for income taxes | $ 1,342 | $ 866 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies (a) Company Background Scott’s Liquid Gold-Inc. (a Colorado corporation) was incorporated on February 15, 1954. Scott’s Liquid Gold-Inc. and its wholly-owned subsidiaries (collectively, the “Company,” “we,” “our,” or “us”) develop, manufacture, market and sell quality household and skin and hair care products. We are also a distributor in the United States of skin and hair care products manufactured by two other companies. Our business is comprised of two segments, household products and skin and hair care products. (b) Principles of Consolidation Our Condensed Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. (c) Basis of Presentation The unaudited Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets, and Condensed Consolidated Statements of Cash Flows included in this Report have been prepared by the Company. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at September 30, 2018 and results of operations and cash flows for all periods have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the period ended September 30, 2018 are not necessarily indicative of the operating results for the full year. (d) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, intangible asset useful lives and amortization method, and stock-based compensation. Actual results could differ from our estimates. (e) Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. (f) Inventories Valuation and Reserves Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We estimate an inventory reserve for slow moving and obsolete products and raw materials based upon, among other things, an assessment of historical and anticipated sales of our products. In the event that actual results differ from our estimates, the results of future periods may be impacted. Inventories were comprised of the following at: September 30, 2018 December 31, 2017 Finished goods $ 5,852 $ 6,984 Raw materials 2,554 1,811 Inventory reserve for obsolescence (19 ) (8 ) $ 8,387 $ 8,787 (g) Property and Equipment Property and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years. Production equipment and production support equipment are estimated to have useful lives of 15 to 20 years and three to 10 years, respectively. Office furniture and office machines are estimated to have useful lives of 10 to 20 years and three to five years, respectively. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. (h) Intangible Assets Intangible assets consist of customer relationships, trade names, formulas and batching processes and a non-compete agreement. The fair value of the intangible assets is amortized over their estimated useful lives and range from a period of five to 15 years and are reviewed for impairment when changes in market circumstances occur and written down to fair value if impaired. (i) Goodwill Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests at the reporting unit level, which include the review of factors to determine if it is more-likely-than-not that the fair value of its reporting units were below carrying value. In certain circumstances these assets are written down to fair value if impaired. (j) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. During the nine months ended September 30, 2018, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable, accrued expenses, and current maturities of long-term debt approximate fair value due to the short-term nature of these financial instruments. The recorded amount of long-term debt approximates fair value and is estimated primarily based on current market rates for debt with similar terms and remaining maturities. At September 30, 2018, we had no outstanding balances on our long-term debt or on our line-of-credit. At December 31, 2017, we had long-term debt of $1,200 and no outstanding balance on our line-of-credit. (k) Income Taxes Income taxes reflect the tax effects of transactions reported in the financial statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. A valuation allowance is provided when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits or expense. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the Condensed Consolidated Statements of Income or accrued on the Condensed Consolidated Balance Sheets. The effective tax rate for the nine months ended September 30, 2018 and 2017 was 24.5% and 35.6% respectively, which differs from the statutory income tax rate due to permanent book to tax differences. The decrease in the effective tax rate is a result of the enactment of the Tax Cuts and Jobs Act (“TCJA”) on December 22, 2017 which lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. (l) Revenue Recognition Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. Certain criteria are required to be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Our revenue contracts are identified when purchase orders are received and accepted from customers and represent a single performance obligation to sell our products to a customer. Net sales reflect the transaction prices for contracts, which include products shipped at selling list prices reduced by variable consideration. Variable consideration includes estimates for expected customer allowances, promotional programs for consumers, and sales returns. Variable consideration is primarily comprised of customer allowances. Customer allowances primarily include reserves for trade promotions to support price features, displays, slotting fees, and other merchandising of our products to our customers. Promotional programs for consumers primarily include coupons, rebates, and certain other promotional programs, and do not represent a significant portion of variable consideration. The costs of customer allowances and promotional programs for consumers are estimated using either the expected value or most likely amount approach, depending on the nature of the allowance, using all reasonably available information, including our historical experience and current expectations. Customer allowances and promotional programs for consumers are reflected in the transaction price when sales are recorded. We may adjust our estimates based on actual results and consideration of other factors that cause allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. Adjustments to the costs of customer allowances and promotional programs for consumers in subsequent periods are generally not material, as our promotions are typically of short duration, thereby reducing the uncertainty inherent in such estimates. Sales returns are generally not material to our financial statements, and do not comprise a significant portion of variable consideration. Estimates for sales returns are based on, among other things, an assessment of historical trends, information from customers, and anticipated returns related to current sales activity. These estimates are established in the period of sale and reduce our revenue in that period. Sales are recorded at the time that control of the products is transferred to customers. In evaluating the timing of the transfer of control of products to customers, we consider several indicators, including significant risks and rewards of products, our right to payment, and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to customers. We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. At September 30, 2018 and December 31, 2017 approximately $1,130 and $1,070, respectively, had been reserved as a reduction of accounts receivable. Trade promotions to our customers and incentives such as coupons to our consumers are deducted from gross sales and totaled $1,990 and $1,854 for the nine months ended September 30, 2018 and 2017, and totaled $718 and $522 for the three months ended September 30, 2018 and 2017 respectively. (m) Advertising Costs We expense advertising costs as incurred. (n) Stock-based Compensation We account for share based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. We determine the estimated grant-date fair value of stock options using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including the estimated fair value of underlying common stock, risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. We recognize compensation costs ratably over the vesting period using the straight-line method. (o) Operating Costs and Expenses Classification Cost of sales includes costs associated with manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, internal transfer costs, repairs, maintenance and other indirect costs, as well as warehousing and distribution costs. We classify shipping and handling costs comprised primarily of freight-out as selling expenses. Other selling expenses consist primarily of wages, benefits, and travel expenses for sales and sales support personnel, brokerage commissions and promotional costs, as well as certain other indirect costs. Shipping and handling costs totaled $1,966 and $1,864 for the nine months ended September 30, 2018 and 2017, and totaled $806 and $611 for the three months ended September 30, 2018 and 2017 respectively. General and administrative expenses consist primarily of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility related expenses, and other general support costs. The Company entered into a confidential separation agreement, waiver and release with the former Chief Financial Officer of the Company effective June 1, 2018 (the “Separation Agreement”). The Company agreed to pay the former Chief Financial Officer severance pay over nine months in conjunction with terms set forth in the Separation Agreement. Severance costs of $287 were recognized in the second quarter of 2018 and are included in general and administrative expenses for the nine months ended September 30, 2018. Accrued severance costs are included in accrued expenses on the Condensed Consolidated Balance Sheets as of September 30, 2018. (p) Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) “Leases (Topic 842)” This guidance, as amended by subsequent ASUs on the topic, In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 2. Stock-Based Compensation During the nine months ended September 30, 2018, we granted options to acquire: (i) 40,056 shares of our common stock to employees at prices ranging from $2.17 to $3.35 per share; (ii) 105,000 shares of our common stock to executive officers at prices ranging from $2.09 to $2.17 per share; and (iii) 90,000 shares of our common stock to non-employee board members at a price of $2.17 per share. During the nine months ended September 30, 2017, we granted options to acquire: 16,560 shares of our common stock to employees at prices ranging from $1.80 and $2.25 per share; and (ii) 30,000 shares of our common stock to a non-employee board member at a price of $2.25 per share. The weighted average fair market value of the options granted during the nine months ended September 30, 2018 and 2017 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: September 30, 2018 September 30, 2017 Expected life of options (using the “simplified” method) 4 years 4 years Average risk-free interest rate 2.63% 1.44% Average expected volatility of stock 69% 78% Expected dividend rate None None Fair value of options granted $246 $55 Compensation cost related to stock options recognized in operating results (included in general and administrative expenses) totaled $184 in the nine months ended September 30, 2018 and 2017, respectively. Approximately $384 of total unrecognized compensation costs related to non-vested stock options is expected to be recognized over the next four years, depending on the vesting provisions of the options. There was no tax benefit from recording the non-cash expense as it relates to the options granted to employees, as these were qualified stock options which are not normally tax deductible. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3. Earnings per Share Per share data is determined by using the weighted average number of common shares outstanding. Common equivalent shares are considered only for diluted earnings per share, unless considered anti-dilutive. Common equivalent shares, determined using the treasury stock method, result from stock options with exercise prices that are below the average market price of the common stock. Basic earnings per share include no dilution and are computed by dividing income available to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflect the potential of securities that could share in our earnings. A reconciliation of the weighted average number of common shares outstanding is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Common shares outstanding, beginning of the period 12,024 11,886 11,886 11,750 Weighted average common shares issued 138 - 153 91 Weighted average number of common shares outstanding 12,162 11,886 12,039 11,841 Dilutive effect of common share equivalents 378 474 542 377 Diluted weighted average number of common shares outstanding 12,540 12,360 12,581 12,218 Common stock equivalents that have been excluded from the calculation of earnings per share because they would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 252 47 252 89 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 4. Segment Information We operate in two different segments: household products and skin and hair care products. Our products are sold nationally and internationally (primarily China and Canada), directly through our sales force (or pursuant to exclusive distribution agreements for our international sales) and indirectly through independent brokers and manufacturer’s representatives, to mass merchandisers, drugstores, supermarkets, hardware stores, e-commerce retailers, and other retail outlets and to wholesale distributors. We have chosen to organize our business around these segments based on differences in the products sold. Accounting policies for our segments are the same as those described in Note 1. We evaluate segment performance based on segment income or loss before income taxes. The following provides information on our segments for the three and nine months ended September 30: Three Months Ended September 30, 2018 Household Products Skin and Hair Care Products Total Net sales $ 1,165 $ 8,521 $ 9,686 (Loss) income from operations (414 ) 1,826 1,412 Capital and intangible asset expenditures - 161 161 Depreciation and amortization 29 164 193 Three Months Ended September 30, 2017 Household Products Skin and Hair Care Products Total Net sales $ 1,409 $ 8,932 $ 10,341 Income from operations 11 2,154 2,165 Capital and intangible asset expenditures 32 196 228 Depreciation and amortization 34 169 203 Nine Months Ended September 30, 2018 Household Products Skin and Hair Care Products Total Net sales $ 3,881 $ 24,040 $ 27,921 (Loss) income from operations (1,309 ) 4,240 2,931 Capital and intangible asset expenditures 18 184 202 Depreciation and amortization 97 529 626 Nine Months Ended September 30, 2017 Household Products Skin and Hair Care Products Total Net sales $ 4,189 $ 26,468 $ 30,657 (Loss) income from operations (199 ) 5,631 5,432 Capital and intangible asset expenditures 157 196 353 Depreciation and amortization 88 503 591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill and intangible assets, which are related to our acquisition of our Prell ® ® ® As of September 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Customer relationships $ 4,022 $ 905 $ 3,117 $ 4,022 $ 604 $ 3,418 Trade names 2,363 354 2,009 2,363 236 2,127 Formulas and batching processes 669 126 543 669 84 585 Non-compete agreement 26 12 14 26 8 18 7,080 1,397 5,683 7,080 932 6,148 Goodwill 1,521 1,521 Total intangible assets $ 7,204 $ 7,669 The amortization expense for the nine months ended September 30, 2018 and 2017 was $465, respectively. The amortization expense for the three months ended September 30, 2018 and 2017 was $155, respectively. Estimated amortization expense for 2018 and subsequent years is as follows: 2018 (remaining) $ 155 2019 621 2020 621 2021 618 Thereafter 3,668 Total $ 5,683 |
Long-Term Debt and Line-of-Cred
Long-Term Debt and Line-of-Credit | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Line-of-Credit | Note 6. Long-Term Debt and Line-of-Credit On June 30, 2016, the Company and Neoteric Cosmetics, Inc., a wholly-owned subsidiary of the Company, collectively as borrowers, entered into a credit agreement, as amended (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (“Chase”), as lender, pursuant to which Chase provided a term loan and a revolving credit facility that were related to our acquisition of the Prell ® ® ® In June 2018, we paid the remaining principal balance of the term loan in the amount of $1,000. There were no additional costs incurred associated with the prepayment of the term loan. The revolving credit facility amount is $4 million with interest of: (i) the LIBO Rate + 2.5%; or (ii) the Prime Rate, with a floor of the one month LIBO Rate + 2.5%, and will terminate on June 30, 2019 or any earlier date on which the revolving commitment is otherwise terminated pursuant to the Credit Agreement. Under the Credit Agreement we are obligated to pay quarterly an unused commitment fee equal to 0.5% per annum on the daily amount of the undrawn portion of the revolving line-of-credit. The loans are collateralized by all of the assets of the Company and its subsidiaries. The Credit Agreement requires, among other things, that beginning on December 31, 2016 and subsequently on a quarterly basis, the Company is subject to affirmative, negative, and financial covenants. The Company was in compliance with the covenants in the Credit Agreement as of September 30, 2018 and December 31, 2017. Debt issuance costs recognized as a component of interest expense for the nine months ended September 30, 2018 and 2017 were $38 and $19, respectively. Debt issuance costs recognized as a component of interest expense for the three months ended September 30, 2018 and 2017 were $0 and $6, respectively. In conjunction with the prepayment of the remaining principal balance of the term loan, $25 of unamortized debt issuance costs were recognized as a component of interest expense. Prior to the prepayment of the term loan, these costs were amortized using the effective interest method over the term of the Credit Agreement. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (b) Principles of Consolidation Our Condensed Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Basis of Presentation | (c) Basis of Presentation The unaudited Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets, and Condensed Consolidated Statements of Cash Flows included in this Report have been prepared by the Company. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at September 30, 2018 and results of operations and cash flows for all periods have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for the period ended September 30, 2018 are not necessarily indicative of the operating results for the full year. |
Use of Estimates | (d) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, intangible asset useful lives and amortization method, and stock-based compensation. Actual results could differ from our estimates. |
Cash Equivalents | (e) Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. |
Inventories Valuation and Reserves | (f) Inventories Valuation and Reserves Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We estimate an inventory reserve for slow moving and obsolete products and raw materials based upon, among other things, an assessment of historical and anticipated sales of our products. In the event that actual results differ from our estimates, the results of future periods may be impacted. Inventories were comprised of the following at: September 30, 2018 December 31, 2017 Finished goods $ 5,852 $ 6,984 Raw materials 2,554 1,811 Inventory reserve for obsolescence (19 ) (8 ) $ 8,387 $ 8,787 |
Property and Equipment | (g) Property and Equipment Property and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years. Production equipment and production support equipment are estimated to have useful lives of 15 to 20 years and three to 10 years, respectively. Office furniture and office machines are estimated to have useful lives of 10 to 20 years and three to five years, respectively. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. |
Intangible Assets | (h) Intangible Assets Intangible assets consist of customer relationships, trade names, formulas and batching processes and a non-compete agreement. The fair value of the intangible assets is amortized over their estimated useful lives and range from a period of five to 15 years and are reviewed for impairment when changes in market circumstances occur and written down to fair value if impaired. |
Goodwill | (i) Goodwill Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests at the reporting unit level, which include the review of factors to determine if it is more-likely-than-not that the fair value of its reporting units were below carrying value. In certain circumstances these assets are written down to fair value if impaired. |
Financial Instruments | (j) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. During the nine months ended September 30, 2018, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable, accrued expenses, and current maturities of long-term debt approximate fair value due to the short-term nature of these financial instruments. The recorded amount of long-term debt approximates fair value and is estimated primarily based on current market rates for debt with similar terms and remaining maturities. At September 30, 2018, we had no outstanding balances on our long-term debt or on our line-of-credit. At December 31, 2017, we had long-term debt of $1,200 and no outstanding balance on our line-of-credit. |
Income Taxes | (k) Income Taxes Income taxes reflect the tax effects of transactions reported in the financial statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. A valuation allowance is provided when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits or expense. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the Condensed Consolidated Statements of Income or accrued on the Condensed Consolidated Balance Sheets. The effective tax rate for the nine months ended September 30, 2018 and 2017 was 24.5% and 35.6% respectively, which differs from the statutory income tax rate due to permanent book to tax differences. The decrease in the effective tax rate is a result of the enactment of the Tax Cuts and Jobs Act (“TCJA”) on December 22, 2017 which lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. |
Revenue Recognition | (l) Revenue Recognition Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. Certain criteria are required to be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Our revenue contracts are identified when purchase orders are received and accepted from customers and represent a single performance obligation to sell our products to a customer. Net sales reflect the transaction prices for contracts, which include products shipped at selling list prices reduced by variable consideration. Variable consideration includes estimates for expected customer allowances, promotional programs for consumers, and sales returns. Variable consideration is primarily comprised of customer allowances. Customer allowances primarily include reserves for trade promotions to support price features, displays, slotting fees, and other merchandising of our products to our customers. Promotional programs for consumers primarily include coupons, rebates, and certain other promotional programs, and do not represent a significant portion of variable consideration. The costs of customer allowances and promotional programs for consumers are estimated using either the expected value or most likely amount approach, depending on the nature of the allowance, using all reasonably available information, including our historical experience and current expectations. Customer allowances and promotional programs for consumers are reflected in the transaction price when sales are recorded. We may adjust our estimates based on actual results and consideration of other factors that cause allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. Adjustments to the costs of customer allowances and promotional programs for consumers in subsequent periods are generally not material, as our promotions are typically of short duration, thereby reducing the uncertainty inherent in such estimates. Sales returns are generally not material to our financial statements, and do not comprise a significant portion of variable consideration. Estimates for sales returns are based on, among other things, an assessment of historical trends, information from customers, and anticipated returns related to current sales activity. These estimates are established in the period of sale and reduce our revenue in that period. Sales are recorded at the time that control of the products is transferred to customers. In evaluating the timing of the transfer of control of products to customers, we consider several indicators, including significant risks and rewards of products, our right to payment, and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to customers. We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. At September 30, 2018 and December 31, 2017 approximately $1,130 and $1,070, respectively, had been reserved as a reduction of accounts receivable. Trade promotions to our customers and incentives such as coupons to our consumers are deducted from gross sales and totaled $1,990 and $1,854 for the nine months ended September 30, 2018 and 2017, and totaled $718 and $522 for the three months ended September 30, 2018 and 2017 respectively. |
Advertising Costs | (m) Advertising Costs We expense advertising costs as incurred. |
Stock-based Compensation | (n) Stock-based Compensation We account for share based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. We determine the estimated grant-date fair value of stock options using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including the estimated fair value of underlying common stock, risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. We recognize compensation costs ratably over the vesting period using the straight-line method. |
Operating Costs and Expenses Classification | (o) Operating Costs and Expenses Classification Cost of sales includes costs associated with manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, internal transfer costs, repairs, maintenance and other indirect costs, as well as warehousing and distribution costs. We classify shipping and handling costs comprised primarily of freight-out as selling expenses. Other selling expenses consist primarily of wages, benefits, and travel expenses for sales and sales support personnel, brokerage commissions and promotional costs, as well as certain other indirect costs. Shipping and handling costs totaled $1,966 and $1,864 for the nine months ended September 30, 2018 and 2017, and totaled $806 and $611 for the three months ended September 30, 2018 and 2017 respectively. General and administrative expenses consist primarily of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility related expenses, and other general support costs. The Company entered into a confidential separation agreement, waiver and release with the former Chief Financial Officer of the Company effective June 1, 2018 (the “Separation Agreement”). The Company agreed to pay the former Chief Financial Officer severance pay over nine months in conjunction with terms set forth in the Separation Agreement. Severance costs of $287 were recognized in the second quarter of 2018 and are included in general and administrative expenses for the nine months ended September 30, 2018. Accrued severance costs are included in accrued expenses on the Condensed Consolidated Balance Sheets as of September 30, 2018. |
Recently Issued Accounting Standards | (p) Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) “Leases (Topic 842)” This guidance, as amended by subsequent ASUs on the topic, In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Composition of Inventory | Inventories were comprised of the following at: September 30, 2018 December 31, 2017 Finished goods $ 5,852 $ 6,984 Raw materials 2,554 1,811 Inventory reserve for obsolescence (19 ) (8 ) $ 8,387 $ 8,787 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted Average Fair Market Value of the Options Granted Estimated on the Date of Grant Assumptions | The weighted average fair market value of the options granted during the nine months ended September 30, 2018 and 2017 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: September 30, 2018 September 30, 2017 Expected life of options (using the “simplified” method) 4 years 4 years Average risk-free interest rate 2.63% 1.44% Average expected volatility of stock 69% 78% Expected dividend rate None None Fair value of options granted $246 $55 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Weighted Average Number of Common Shares Outstanding | A reconciliation of the weighted average number of common shares outstanding is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Common shares outstanding, beginning of the period 12,024 11,886 11,886 11,750 Weighted average common shares issued 138 - 153 91 Weighted average number of common shares outstanding 12,162 11,886 12,039 11,841 Dilutive effect of common share equivalents 378 474 542 377 Diluted weighted average number of common shares outstanding 12,540 12,360 12,581 12,218 |
Common Stock Equivalents Excluded From the Calculation of Earnings Per Share | Common stock equivalents that have been excluded from the calculation of earnings per share because they would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 252 47 252 89 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Information on Segments | The following provides information on our segments for the three and nine months ended September 30: Three Months Ended September 30, 2018 Household Products Skin and Hair Care Products Total Net sales $ 1,165 $ 8,521 $ 9,686 (Loss) income from operations (414 ) 1,826 1,412 Capital and intangible asset expenditures - 161 161 Depreciation and amortization 29 164 193 Three Months Ended September 30, 2017 Household Products Skin and Hair Care Products Total Net sales $ 1,409 $ 8,932 $ 10,341 Income from operations 11 2,154 2,165 Capital and intangible asset expenditures 32 196 228 Depreciation and amortization 34 169 203 Nine Months Ended September 30, 2018 Household Products Skin and Hair Care Products Total Net sales $ 3,881 $ 24,040 $ 27,921 (Loss) income from operations (1,309 ) 4,240 2,931 Capital and intangible asset expenditures 18 184 202 Depreciation and amortization 97 529 626 Nine Months Ended September 30, 2017 Household Products Skin and Hair Care Products Total Net sales $ 4,189 $ 26,468 $ 30,657 (Loss) income from operations (199 ) 5,631 5,432 Capital and intangible asset expenditures 157 196 353 Depreciation and amortization 88 503 591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | Goodwill and intangible assets, which are related to our acquisition of our Prell ® ® ® As of September 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Customer relationships $ 4,022 $ 905 $ 3,117 $ 4,022 $ 604 $ 3,418 Trade names 2,363 354 2,009 2,363 236 2,127 Formulas and batching processes 669 126 543 669 84 585 Non-compete agreement 26 12 14 26 8 18 7,080 1,397 5,683 7,080 932 6,148 Goodwill 1,521 1,521 Total intangible assets $ 7,204 $ 7,669 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for 2018 and subsequent years is as follows: 2018 (remaining) $ 155 2019 621 2020 621 2021 618 Thereafter 3,668 Total $ 5,683 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018Segment | |
Accounting Policies [Abstract] | |
Number of business segment | 2 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Composition of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 5,852 | $ 6,984 |
Raw materials | 2,554 | 1,811 |
Inventory reserve for obsolescence | (19) | (8) |
Inventories, net | $ 8,387 | $ 8,787 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Additional Information 1 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Significant financial instruments with off-balance sheet risk | $ 0 | $ 0 | |||
Long-term debt | 0 | 0 | $ 1,200,000 | ||
Line-of-credit outstanding balance | 0 | 0 | $ 0 | ||
Interest and penalties recognized in consolidated statements of income | 0 | ||||
Accrued interest or penalties related to uncertain tax positions | 0 | $ 0 | |||
Effective income tax rate | 24.50% | 35.60% | |||
U.S. Corporate income tax rate | 21.00% | 35.00% | |||
Reserve for reduction in account receivable | $ 1,130,000 | $ 1,070,000 | |||
Trade promotions to customers | $ 718,000 | $ 522,000 | $ 1,990,000 | $ 1,854,000 | |
Minimum | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 3 years | ||||
Useful lives of intangible assets | 5 years | ||||
Minimum | Production Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 15 years | ||||
Minimum | Production Support Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 3 years | ||||
Minimum | Office Furniture and Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 10 years | ||||
Minimum | Office Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 3 years | ||||
Maximum | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 20 years | ||||
Useful lives of intangible assets | 15 years | ||||
Maximum | Production Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 20 years | ||||
Maximum | Production Support Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 10 years | ||||
Maximum | Office Furniture and Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 20 years | ||||
Maximum | Office Equipment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Useful life of property, plant and equipment | 5 years |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Additional Information 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Shipping and handling costs | $ 4,808 | $ 5,420 | $ 14,644 | $ 16,649 | |
General and Administrative Expense | Former Chief Financial Officer | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Severance costs | $ 287 | ||||
Shipping and Handling Costs | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Shipping and handling costs | $ 806 | $ 611 | $ 1,966 | $ 1,864 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | $ 184,000 | $ 184,000 |
Unrecognized compensation costs related to non-vested stock options | $ 384,000 | |
Period over which compensation costs related to non-vested stock options recognize | 4 years | |
Tax benefit from recording non-cash expense relates to options granted to employees | $ 0 | |
General and Administrative Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | $ 184,000 | $ 184,000 |
Executive Officers | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options granted | 105,000 | |
Non-employee Board Member | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options granted | 90,000 | 30,000 |
Weighted average exercise price of options granted | $ 2.17 | $ 2.25 |
Minimum | Executive Officers | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average exercise price of options granted | 2.09 | |
Maximum | Executive Officers | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average exercise price of options granted | $ 2.17 | |
Employees | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options granted | 40,056 | 16,560 |
Employees | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average exercise price of options granted | $ 2.17 | $ 1.80 |
Employees | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average exercise price of options granted | $ 3.35 | $ 2.25 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Fair Market Value of the Options Granted Estimated on the Date of Grant Assumptions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected life of options (using the “simplified” method) | 4 years | 4 years |
Average risk-free interest rate | 2.63% | 1.44% |
Average expected volatility of stock | 69.00% | 78.00% |
Expected dividend rate | 0.00% | 0.00% |
Fair value of options granted | $ 246 | $ 55 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Weighted Average Number of Common Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Common shares outstanding, beginning of the period | 12,024,000 | 11,886,000 | 11,885,839 | 11,750,000 |
Weighted average common shares issued | 138,000 | 153,000 | 91,000 | |
Weighted average number of common shares outstanding | 12,162,000 | 11,886,000 | 12,039,000 | 11,841,000 |
Dilutive effect of common share equivalents | 378,000 | 474,000 | 542,000 | 377,000 |
Diluted weighted average number of common shares outstanding | 12,540,000 | 12,360,000 | 12,581,000 | 12,218,000 |
Earnings Per Share - Common Sto
Earnings Per Share - Common Stock Equivalents Excluded From the Calculation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of earnings per share | 252 | 47 | 252 | 89 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of business segment | 2 |
Segment Information - Informati
Segment Information - Information on Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 9,686 | $ 10,341 | $ 27,921 | $ 30,657 |
(Loss) income from operations | 1,412 | 2,165 | 2,931 | 5,432 |
Capital and intangible asset expenditures | 161 | 228 | 202 | 353 |
Depreciation and amortization | 193 | 203 | 626 | 591 |
Household Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,165 | 1,409 | 3,881 | 4,189 |
(Loss) income from operations | (414) | 11 | (1,309) | (199) |
Capital and intangible asset expenditures | 32 | 18 | 157 | |
Depreciation and amortization | 29 | 34 | 97 | 88 |
Skin And Hair Care Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 8,521 | 8,932 | 24,040 | 26,468 |
(Loss) income from operations | 1,826 | 2,154 | 4,240 | 5,631 |
Capital and intangible asset expenditures | 161 | 196 | 184 | 196 |
Depreciation and amortization | $ 164 | $ 169 | $ 529 | $ 503 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,080 | $ 7,080 |
Accumulated Amortization | 1,397 | 932 |
Net Carrying Value | 5,683 | 6,148 |
Goodwill | 1,521 | 1,521 |
Total intangible assets | 7,204 | 7,669 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,022 | 4,022 |
Accumulated Amortization | 905 | 604 |
Net Carrying Value | 3,117 | 3,418 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,363 | 2,363 |
Accumulated Amortization | 354 | 236 |
Net Carrying Value | 2,009 | 2,127 |
Formulas and Batching Processes | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 669 | 669 |
Accumulated Amortization | 126 | 84 |
Net Carrying Value | 543 | 585 |
Non-compete Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26 | 26 |
Accumulated Amortization | 12 | 8 |
Net Carrying Value | $ 14 | $ 18 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 155 | $ 155 | $ 465 | $ 465 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2018 (remaining) | $ 155 | |
2,019 | 621 | |
2,020 | 621 | |
2,021 | 618 | |
Thereafter | 3,668 | |
Net Carrying Value | $ 5,683 | $ 6,148 |
Long-Term Debt and Line-of-Cr_2
Long-Term Debt and Line-of-Credit - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Remaining principal balance amount paid | $ 1,200,000 | $ 600,000 | |||
Debt issuance costs | $ 0 | $ 6,000 | $ 38,000 | $ 19,000 | |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, frequency of commitment fee payment | quarterly | ||||
Unused commitment fee percentage | 0.50% | ||||
JPMorgan Chase Bank, N. A. | Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility amount | $ 4,000,000 | $ 4,000,000 | |||
Credit facility, terminate date | Jun. 30, 2019 | ||||
JPMorgan Chase Bank, N. A. | Credit Agreement | LIBO Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate | 2.50% | ||||
JPMorgan Chase Bank, N. A. | Credit Agreement | Floor Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate | 2.50% | ||||
JPMorgan Chase Bank, N. A. | Term Loan | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Remaining principal balance amount paid | $ 1,000,000 | ||||
Prepayment costs | $ 0 | ||||
Unamortized debt issuance costs | $ 25,000 |