Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ALPHA PRO TECH LTD | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 18,921,209 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000884269 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Current assets: | ' | ' | |
Cash and cash equivalents | $7,709,000 | $4,554,000 | [1] |
Marketable securities | 867,000 | 293,000 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $112,000 and $74,000 as of September 30, 2013 and December 31, 2012, respectively | 5,935,000 | 6,350,000 | [1] |
Inventories | 13,641,000 | 17,164,000 | [1] |
Prepaid expenses | 2,349,000 | 2,299,000 | [1] |
Deferred income tax assets | 575,000 | 554,000 | [1] |
Total current assets | 31,076,000 | 31,214,000 | [1] |
Property and equipment, net | 3,186,000 | 3,419,000 | [1] |
Goodwill | 55,000 | 55,000 | [1] |
Definite-lived intangible assets, net | 97,000 | 113,000 | [1] |
Equity investments in and advances to unconsolidated affiliate | 2,670,000 | 2,498,000 | [1] |
Total assets | 37,084,000 | 37,299,000 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 326,000 | 860,000 | [1] |
Accrued liabilities | 905,000 | 793,000 | [1] |
Total current liabilities | 1,231,000 | 1,653,000 | [1] |
Deferred income tax liabilities | 1,035,000 | 813,000 | [1] |
Total liabilities | 2,266,000 | 2,466,000 | [1] |
Shareholders' equity: | ' | ' | |
Common stock, $.01 par value: 50,000,000 shares authorized; 18,921,209 and 20,044,457 shares outstanding as of September 30, 2013and December 31, 2012, respectively | 189,000 | 200,000 | [1] |
Additional paid-in capital | 19,158,000 | 20,915,000 | [1] |
Accumulated other comprehensive income | 382,000 | 24,000 | [1] |
Retained earnings | 15,089,000 | 13,694,000 | [1] |
Total shareholders' equity | 34,818,000 | 34,833,000 | [1] |
Total liabilities and shareholders' equity | $37,084,000 | $37,299,000 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Allowance for doubtful accounts (in Dollars) | $112,000 | $74,000 | [1] |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 | [1] |
Common stock, shares authorized (in Shares) | 50,000,000 | 50,000,000 | [1] |
Common stock, shares outstanding (in Shares) | 18,921,209 | 20,044,457 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net sales | $12,692,000 | $10,740,000 | $33,298,000 | $31,210,000 |
Cost of goods sold, excluding depreciation and amortization | 8,113,000 | 6,942,000 | 20,999,000 | 20,135,000 |
Gross profit | 4,579,000 | 3,798,000 | 12,299,000 | 11,075,000 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 3,190,000 | 3,076,000 | 9,885,000 | 9,550,000 |
Depreciation and amortization | 178,000 | 166,000 | 534,000 | 591,000 |
Total operating expenses | 3,368,000 | 3,242,000 | 10,419,000 | 10,141,000 |
Income from operations | 1,211,000 | 556,000 | 1,880,000 | 934,000 |
Other income (expense): | ' | ' | ' | ' |
Equity in income of unconsolidated affiliate | 101,000 | 84,000 | 172,000 | 402,000 |
Interest income (expense) | 1,000 | -2,000 | 3,000 | 7,000 |
Total other income | 102,000 | 82,000 | 175,000 | 409,000 |
Income before provision for income taxes | 1,313,000 | 638,000 | 2,055,000 | 1,343,000 |
Provision for income taxes | 408,000 | 224,000 | 660,000 | 484,000 |
Net income | $905,000 | $414,000 | $1,395,000 | $859,000 |
Basic earnings per common share (in Dollars per share) | $0.05 | $0.02 | $0.07 | $0.04 |
Diluted earnings per common share (in Dollars per share) | $0.05 | $0.02 | $0.07 | $0.04 |
Basic weighted average common shares outstanding (in Shares) | 19,008,660 | 20,674,335 | 19,326,491 | 20,839,266 |
Diluted weighted average common shares outstanding (in Shares) | 19,009,656 | 20,674,335 | 19,326,491 | 20,839,266 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net income | $905,000 | $414,000 | $1,395,000 | $859,000 |
Unrealized gain on investments, net of tax | 289,000 | ' | 358,000 | ' |
Comprehensive income | $1,194,000 | $414,000 | $1,753,000 | $859,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at Dec. 31, 2012 | $200,000 | $20,915,000 | $13,694,000 | $24,000 | $34,833,000 | [1] |
Balance (in Shares) at Dec. 31, 2012 | 20,044,457 | ' | ' | ' | 20,044,457 | [1] |
Options exercised | 4,000 | 510,000 | ' | ' | 514,000 | |
Options exercised (in Shares) | 420,002 | ' | ' | ' | 420,002 | |
Income tax expense from stock options exercised | ' | -1,000 | ' | ' | -1,000 | |
Share-based compensation expense | ' | 141,000 | ' | ' | 141,000 | |
Common stock repurchased and retired | -15,000 | -2,407,000 | ' | ' | -2,422,000 | |
Common stock repurchased and retired (in Shares) | -1,543,250 | ' | ' | ' | ' | |
Net income | ' | ' | 1,395,000 | ' | 1,395,000 | |
Other comprehensive income | ' | ' | ' | 358,000 | 358,000 | |
Balance at Sep. 30, 2013 | $189,000 | $19,158,000 | $15,089,000 | $382,000 | $34,818,000 | |
Balance (in Shares) at Sep. 30, 2013 | 18,921,209 | ' | ' | ' | 18,921,209 | |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | ||
Cash Flows From Operating Activities: | ' | ' | |
Net income | $1,395,000 | $859,000 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | |
Share-based compensation expense | 141,000 | 171,000 | |
Depreciation and amortization | 534,000 | 591,000 | |
Equity in income of unconsolidated affiliate | -172,000 | -402,000 | |
Deferred income taxes | -14,000 | -17,000 | |
Changes in assets and liabilities: | ' | ' | |
Accounts receivable, net | 415,000 | -1,382,000 | |
Inventories | 3,523,000 | -1,125,000 | |
Prepaid expenses | -50,000 | 269,000 | |
Accounts payable and accrued liabilities | -423,000 | 269,000 | |
Net cash provided by (used in) operating activities | 5,349,000 | -767,000 | |
Cash Flows From Investing Activities: | ' | ' | |
Purchase of property and equipment | -284,000 | -481,000 | |
Purchase of intangible assets | -1,000 | -3,000 | |
Repayment of advances from unconsolidated affiliate | ' | 417,000 | |
Net cash used in investing activities | -285,000 | -67,000 | |
Cash Flows From Financing Activities: | ' | ' | |
Proceeds from exercise of stock options | 514,000 | ' | |
Repurchase of common stock | -2,422,000 | -778,000 | |
Income tax expense on stock options exercised | -1,000 | ' | |
Net cash used in financing activities | -1,909,000 | -778,000 | |
Net increase (decrease) in cash and cash equivalents | 3,155,000 | -1,612,000 | |
Cash and cash equivalents, beginning of the period | 4,554,000 | [1] | 7,503,000 |
Cash and cash equivalents, end of the period | $7,709,000 | $5,891,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_1_The_Company
Note 1 - The Company | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
1. The Company | |
Alpha Pro Tech, Ltd. (“Alpha Pro Tech” or the “Company”) is in the business of protecting people, products and environments. The Company accomplishes this by developing, manufacturing and marketing a line of disposable protective apparel for the cleanroom, the industrial markets and the pharmaceutical markets, a line of building supply products for the new home and re-roofing markets, and a line of infection control products for the medical and dental markets. | |
The Building Supply segment consists of a line of construction weatherization products, such as housewrap and synthetic roof underlayment as well as other woven material. | |
The Disposable Protective Apparel segment consists of a complete line of shoecovers, bouffant caps, coveralls, frocks, lab coats, gowns, hoods and other miscellaneous products. | |
The Infection Control segment consists of a line of face masks and eye shields. | |
The Company’s products are sold under the "Alpha Pro Tech" brand name and under private label, and are predominantly sold in the United States of America (“U.S.”). |
Note_2_Basis_of_Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
2. Basis of Presentation | |
The interim financial information included herein is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. These interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, omit certain information and note disclosures necessary to present the statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings on Form 10-Q and Form 8-K, as well as the consolidated financial statements for the year ended December 31, 2012, which are included in the Company’s Annual Report on Form 10-K (the “2012 Form 10-K”), which was filed on March 6, 2013. The results of operations for the three and nine months ended September 30, 2013 reported in this Form 10-Q are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2012 was extracted from the audited consolidated balance sheet contained in the 2012 Form 10-K and does not include all disclosures required by U.S. GAAP for annual consolidated financial statements. |
Note_3_ShareBased_Compensation
Note 3 - Share-Based Compensation | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
3. Share-Based Compensation | |||||||||||||
The Company maintains a stock option plan under which the Company may grant incentive stock options and non-qualified stock options to key employees and non-employee directors. Stock options have been granted with exercise prices at or above the current market price of the underlying shares of common stock on the grant date. Options vest and expire according to terms established at the grant date. | |||||||||||||
During the first nine months of 2013, there were 120,000 stock options granted under the stock option plan, compared to no stock options granted for the same period of 2012. The Company recognized $141,000 and $171,000 in share-based compensation expense in its condensed consolidated statements of income and comprehensive income for the nine months ended September 30, 2013 and 2012, respectively, related to previously issued options. | |||||||||||||
Stock options to purchase 1,415,000 and 1,796,669 shares of common stock were outstanding as of September 30, 2013 and 2012, respectively. | |||||||||||||
The Company uses the Black-Scholes-Merton option-pricing model to value the options. The Company uses historical data to estimate the life of the options. The risk-free interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility. The Company uses an estimated dividend payout of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the future. | |||||||||||||
The following table summarizes stock option activity during the nine months ended September 30, 2013: | |||||||||||||
Options | Weighted | Weighted Average | |||||||||||
Average | Remaining | ||||||||||||
Exercise | Contractual Life | ||||||||||||
Price | (in years) | ||||||||||||
Options outstanding as of December 31, 2012 | 1,790,002 | $ | 1.49 | 2.64 | |||||||||
Granted at fair value | 120,000 | 1.51 | - | ||||||||||
Exercised | (420,002 | ) | 1.22 | - | |||||||||
Canceled/expired/forfeited | (75,000 | ) | 1.48 | - | |||||||||
Options outstanding as of September 30, 2013 | 1,415,000 | 1.58 | 2 | ||||||||||
Options exercisable as of September 30, 2013 | 1,266,667 | 1.59 | 1.7 | ||||||||||
As of September 30, 2013, $80,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 2.7 years. |
Note_4_Marketable_Securities
Note 4 - Marketable Securities | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||
4. Marketable Securities | |||||
The following provides information regarding the Company’s available-for-sale marketable securities as of September 30, 2013: | |||||
Cost basis | $ | 255,000 | |||
Unrealized gains included in accumulated other comprehensive income | 612,000 | ||||
Fair value | $ | 867,000 | |||
No marketable securities were sold during the three months ended September 30, 2013. The unrealized gains for the three months ended September 30, 2013 of $463,000 are presented net of tax of $174,000 for a net total of $289,000, as shown in the 2013 condensed consolidated statement of comprehensive income. The unrealized gains for the nine months ended September 30, 2013 of $574,000 are presented net of tax of $216,000 for a net total of $358,000, as shown in the 2013 condensed consolidated statement of comprehensive income. |
Note_5_New_Accounting_Standard
Note 5 - New Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
5. New Accounting Standards | |
In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-05, Comprehensive Income. This update requires companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements. It eliminates the option to present components of other comprehensive income as part of the statement of shareholders’ equity. This update impacts presentation only and had no effect on the Company’s consolidated financial position, results of operations or cash flows. | |
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require a company to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, a company is required to present, either on the face of the income statement or in the notes, significant amounts reclassified from accumulated other comprehensive income by the net income line item. The adoption of this amended guidance on January 1, 2013 did not have a material effect on the Company’s consolidated results of operations, financial position, or cash flows. |
Note_6_Inventories
Note 6 - Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
6. Inventories | |||||||||
As of September 30, 2013 and December 31, 2012, inventories consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,590,000 | $ | 8,212,000 | |||||
Work in process | 2,628,000 | 3,056,000 | |||||||
Finished goods | 5,423,000 | 5,896,000 | |||||||
$ | 13,641,000 | $ | 17,164,000 | ||||||
Note_7_Equity_Investments_in_a
Note 7 - Equity Investments in and Advances to Unconsolidated Affiliate | 9 Months Ended |
Sep. 30, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' |
7. Equity Investments in and Advances to Unconsolidated Affiliate | |
In 2005, Alpha ProTech Engineered Products, Inc. (a subsidiary of Alpha Pro Tech) entered into a joint venture with a manufacturer in India for the production of building products. Under the terms of the joint venture agreement, a private company, Harmony Plastics Private Limited (“Harmony”), was created with ownership interests of 41.66% by Alpha ProTech Engineered Products, Inc. and 58.34% by Maple Industries and Associates. Alpha ProTech Engineered Products, Inc. contributed $508,000 for its equity position, and Maple Industries and Associates contributed $708,000 for its equity position. | |
This joint venture positions Alpha ProTech Engineered Products, Inc. to respond to current and expected increased product demand for the Building Supply segment. In addition, the joint venture also supplies some products for the Disposable Protective Apparel segment. | |
The capital from the initial funding and a bank loan, which loan is guaranteed exclusively by the individual shareholders of Maple Industries and Associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India. Harmony currently has three facilities in India, consisting of: (1) a 102,000 square foot building for manufacturing housewrap and synthetic roof underlayment; (2) a 71,500 square foot building for manufacturing coated material and sewing proprietary disposable protective apparel; and (3) a 16,000 square foot facility for sewing proprietary disposable protective apparel. All facility additions have been financed by Harmony with no guarantees from the Company. | |
In accordance with FASB Accounting Standards Codification 810, Consolidation (“ASC 810”), the Company assesses whether or not related entities are variable interest entities (“VIEs”). For those related entities that qualify as VIEs, ASC 810 requires the Company to determine whether or not the Company is the primary beneficiary of the VIE and, if so, to consolidate the VIE. The Company has determined that Harmony is not a VIE and is, therefore, considered to be an unconsolidated affiliate. | |
The Company records its investment in Harmony as “equity investments in and advances to unconsolidated affiliate” in the accompanying condensed consolidated balance sheets. The Company records its equity interest in Harmony’s results of operations as “equity in income of unconsolidated affiliate” in the accompanying condensed consolidated statements of income and comprehensive income. The Company continuously reviews its investment in Harmony for impairment. Management has determined that no impairment was required either as of September 30, 2013 or December 31, 2012. | |
Alpha ProTech Engineered Products, Inc. initially invested $1,450,000 in the joint venture: $508,000 as equity and $942,000 as a long-term advance for materials. Harmony has repaid the advance in full. | |
For the three months ended September 30, 2013 and 2012, Alpha Pro Tech purchased $4,140,000 and $5,843,000 of inventory, respectively, from Harmony. For the nine months ended September 30, 2013 and 2012, the Company purchased $9,132,000 and $13,669,000 of inventory, respectively, from Harmony. For the three months ended September 30, 2013 and 2012, the Company recorded equity in income of unconsolidated affiliate of $101,000 and $84,000, respectively. For the nine months ended September 30, 2013 and 2012, the Company recorded equity in income of unconsolidated affiliate of $172,000 and $402,000, respectively. As of September 30, 2013, the Company’s investment in Harmony was $2,670,000, consisting of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $2,239,000, less $942,000 in repayments of the advance and dividends of $77,000. |
Note_8_Accrued_Liabilities
Note 8 - Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
8. Accrued Liabilities | |||||||||
As of September 30, 2013 and December 31, 2012, accrued liabilities consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll expenses | $ | 282,000 | $ | 126,000 | |||||
Bonuses payable | 430,000 | 325,000 | |||||||
Uncertain tax position | 193,000 | 342,000 | |||||||
$ | 905,000 | $ | 793,000 | ||||||
Note_9_Basic_and_Diluted_Earni
Note 9 - Basic and Diluted Earnings Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
9. Basic and Diluted Earnings Per Common Share | |||||||||||||||||
The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to potential shares, and “diluted” EPS, which includes all such dilutive shares, for the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (numerator) | $ | 905,000 | $ | 414,000 | $ | 1,395,000 | $ | 859,000 | |||||||||
Shares (denominator): | |||||||||||||||||
Basic weighted average common shares outstanding | 19,008,660 | 20,674,335 | 19,326,491 | 20,839,266 | |||||||||||||
Add: Dilutive effect of common stock options | 996 | - | - | - | |||||||||||||
Diluted weighted average common shares outstanding | 19,009,656 | 20,674,335 | 19,326,491 | 20,839,266 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.04 | |||||||||
Diluted | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.04 | |||||||||
Note_10_Activity_of_Business_S
Note 10 - Activity of Business Segments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
10. Activity of Business Segments | |||||||||||||||||
The Company operates through three business segments: | |||||||||||||||||
Building Supply consists of a line of construction supply weatherization products as well as other woven material. The construction supply weatherization product consists of housewrap and synthetic roof underlayment. The Company’s equity in income of unconsolidated affiliate (Harmony) is included in the Building Supply segment. | |||||||||||||||||
Disposable Protective Apparel consists of a complete line of disposable protective clothing, such as shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods for the pharmaceutical, cleanroom, industrial and medical markets. | |||||||||||||||||
Infection Control consists of a line of face masks and eye shields. | |||||||||||||||||
Segment data excludes charges allocated to the principal executive office, corporate expenses and income taxes. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales. | |||||||||||||||||
The following table presents consolidated net sales for each segment for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Building Supply | $ | 8,238,000 | $ | 5,844,000 | $ | 20,460,000 | $ | 17,877,000 | |||||||||
Disposable Protective Apparel | 3,336,000 | 3,779,000 | 9,610,000 | 10,185,000 | |||||||||||||
Infection Control | 1,118,000 | 1,117,000 | 3,228,000 | 3,148,000 | |||||||||||||
Total consolidated net sales | $ | 12,692,000 | $ | 10,740,000 | $ | 33,298,000 | $ | 31,210,000 | |||||||||
The following table presents the reconciliation of total segment income to total consolidated net income for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Building Supply | $ | 1,668,000 | $ | 849,000 | $ | 3,668,000 | $ | 2,275,000 | |||||||||
Disposable Protective Apparel | 389,000 | 550,000 | 950,000 | 1,472,000 | |||||||||||||
Infection Control | 403,000 | 316,000 | 1,052,000 | 868,000 | |||||||||||||
Total segment income | 2,460,000 | 1,715,000 | 5,670,000 | 4,615,000 | |||||||||||||
Unallocated corporate overhead expenses | (1,147,000 | ) | (1,077,000 | ) | (3,615,000 | ) | (3,272,000 | ) | |||||||||
Provision for income taxes | (408,000 | ) | (224,000 | ) | (660,000 | ) | (484,000 | ) | |||||||||
Consolidated net income | $ | 905,000 | $ | 414,000 | $ | 1,395,000 | $ | 859,000 | |||||||||
The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Building Supply | $ | 2,199,000 | $ | 2,252,000 | |||||||||||||
Disposable Protective Apparel | 496,000 | 528,000 | |||||||||||||||
Infection Control | 619,000 | 763,000 | |||||||||||||||
Total segment assets | 3,314,000 | 3,543,000 | |||||||||||||||
Unallocated corporate assets | 24,000 | 44,000 | |||||||||||||||
Total consolidated assets | $ | 3,338,000 | $ | 3,587,000 | |||||||||||||
Note_11_Subsequent_Events
Note 11 - Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
11. Subsequent Events | |
The Company has reviewed and evaluated whether any subsequent events have occurred from the condensed consolidated balance sheet date of September 30, 2013 through the filing date of this Form 10-Q that would require accounting or disclosure. |
Note_3_ShareBased_Compensation1
Note 3 - Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Options | Weighted | Weighted Average | |||||||||||
Average | Remaining | ||||||||||||
Exercise | Contractual Life | ||||||||||||
Price | (in years) | ||||||||||||
Options outstanding as of December 31, 2012 | 1,790,002 | $ | 1.49 | 2.64 | |||||||||
Granted at fair value | 120,000 | 1.51 | - | ||||||||||
Exercised | (420,002 | ) | 1.22 | - | |||||||||
Canceled/expired/forfeited | (75,000 | ) | 1.48 | - | |||||||||
Options outstanding as of September 30, 2013 | 1,415,000 | 1.58 | 2 | ||||||||||
Options exercisable as of September 30, 2013 | 1,266,667 | 1.59 | 1.7 |
Note_4_Marketable_Securities_T
Note 4 - Marketable Securities (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ||||
Cost basis | $ | 255,000 | |||
Unrealized gains included in accumulated other comprehensive income | 612,000 | ||||
Fair value | $ | 867,000 |
Note_6_Inventories_Tables
Note 6 - Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,590,000 | $ | 8,212,000 | |||||
Work in process | 2,628,000 | 3,056,000 | |||||||
Finished goods | 5,423,000 | 5,896,000 | |||||||
$ | 13,641,000 | $ | 17,164,000 |
Note_8_Accrued_Liabilities_Tab
Note 8 - Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll expenses | $ | 282,000 | $ | 126,000 | |||||
Bonuses payable | 430,000 | 325,000 | |||||||
Uncertain tax position | 193,000 | 342,000 | |||||||
$ | 905,000 | $ | 793,000 |
Note_9_Basic_and_Diluted_Earni1
Note 9 - Basic and Diluted Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (numerator) | $ | 905,000 | $ | 414,000 | $ | 1,395,000 | $ | 859,000 | |||||||||
Shares (denominator): | |||||||||||||||||
Basic weighted average common shares outstanding | 19,008,660 | 20,674,335 | 19,326,491 | 20,839,266 | |||||||||||||
Add: Dilutive effect of common stock options | 996 | - | - | - | |||||||||||||
Diluted weighted average common shares outstanding | 19,009,656 | 20,674,335 | 19,326,491 | 20,839,266 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.04 | |||||||||
Diluted | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.04 |
Note_10_Activity_of_Business_S1
Note 10 - Activity of Business Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Building Supply | $ | 8,238,000 | $ | 5,844,000 | $ | 20,460,000 | $ | 17,877,000 | |||||||||
Disposable Protective Apparel | 3,336,000 | 3,779,000 | 9,610,000 | 10,185,000 | |||||||||||||
Infection Control | 1,118,000 | 1,117,000 | 3,228,000 | 3,148,000 | |||||||||||||
Total consolidated net sales | $ | 12,692,000 | $ | 10,740,000 | $ | 33,298,000 | $ | 31,210,000 | |||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Building Supply | $ | 1,668,000 | $ | 849,000 | $ | 3,668,000 | $ | 2,275,000 | |||||||||
Disposable Protective Apparel | 389,000 | 550,000 | 950,000 | 1,472,000 | |||||||||||||
Infection Control | 403,000 | 316,000 | 1,052,000 | 868,000 | |||||||||||||
Total segment income | 2,460,000 | 1,715,000 | 5,670,000 | 4,615,000 | |||||||||||||
Unallocated corporate overhead expenses | (1,147,000 | ) | (1,077,000 | ) | (3,615,000 | ) | (3,272,000 | ) | |||||||||
Provision for income taxes | (408,000 | ) | (224,000 | ) | (660,000 | ) | (484,000 | ) | |||||||||
Consolidated net income | $ | 905,000 | $ | 414,000 | $ | 1,395,000 | $ | 859,000 | |||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Building Supply | $ | 2,199,000 | $ | 2,252,000 | |||||||||||||
Disposable Protective Apparel | 496,000 | 528,000 | |||||||||||||||
Infection Control | 619,000 | 763,000 | |||||||||||||||
Total segment assets | 3,314,000 | 3,543,000 | |||||||||||||||
Unallocated corporate assets | 24,000 | 44,000 | |||||||||||||||
Total consolidated assets | $ | 3,338,000 | $ | 3,587,000 |
Note_3_ShareBased_Compensation2
Note 3 - Share-Based Compensation (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 120,000 | ' | ' |
Share-based Compensation (in Dollars) | $141,000 | $171,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,415,000 | 1,796,669 | 1,790,002 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $80,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 255 days | ' | ' |
Note_3_ShareBased_Compensation3
Note 3 - Share-Based Compensation (Details) - Stock option activity (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Stock option activity [Abstract] | ' | ' | ' |
Options outstanding as of December 31, 2012 (in Shares) | ' | 1,790,002 | 1,796,669 |
Options outstanding as of December 31, 2012 | ' | $1.49 | ' |
Options outstanding as of December 31, 2012 | '2 years | '2 years 233 days | ' |
Granted at fair value | $1.51 | ' | ' |
Granted at fair value | $120,000 | ' | ' |
Exercised (in Shares) | -420,002 | ' | ' |
Exercised | $1.22 | ' | ' |
Canceled/expired/forfeited (in Shares) | -75,000 | ' | ' |
Canceled/expired/forfeited | $1.48 | ' | ' |
Options outstanding as of September 30, 2013 (in Shares) | 1,415,000 | ' | 1,796,669 |
Options outstanding as of September 30, 2013 | $1.58 | ' | ' |
Options outstanding as of September 30, 2013 | '2 years | '2 years 233 days | ' |
Options exercisable as of September 30, 2013 (in Shares) | 1,266,667 | ' | ' |
Options exercisable as of September 30, 2013 | $1.59 | ' | ' |
Options exercisable as of September 30, 2013 | '1 year 255 days | ' | ' |
Note_4_Marketable_Securities_D
Note 4 - Marketable Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | $463,000 | $574,000 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 174,000 | 216,000 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $289,000 | $358,000 |
Note_4_Marketable_Securities_D1
Note 4 - Marketable Securities (Details) - Available-for-sale marketable securities (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | ||
Available-for-sale marketable securities [Abstract] | ' | ' | |
Cost basis | $255,000 | ' | |
Unrealized gains included in accumulated other comprehensive income | 612,000 | ' | |
Fair value | $867,000 | $293,000 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_6_Inventories_Details_Inv
Note 6 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Inventories [Abstract] | ' | ' | |
Raw materials | $5,590,000 | $8,212,000 | |
Work in process | 2,628,000 | 3,056,000 | |
Finished goods | 5,423,000 | 5,896,000 | |
$13,641,000 | $17,164,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_7_Equity_Investments_in_a1
Note 7 - Equity Investments in and Advances to Unconsolidated Affiliate (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2005 | Sep. 30, 2013 | Dec. 31, 2005 | Sep. 30, 2013 | Sep. 30, 2013 | |
Manufacturing Coated Material And Sewing Proprietary Disposable Protective Apparel [Member] | Sewing Proprietary Disposable Protective Apparel [Member] | Long Term Advance For Materials [Member] | Unconsolidated Affiliate [Member] | Unconsolidated Affiliate [Member] | Alpha ProTech Engineered Products [Member] | Alpha ProTech Engineered Products [Member] | Maple Industries And Associates [Member] | Maple Industries And Associates [Member] | Harmony [Member] | India [Member] | |||||
India [Member] | India [Member] | Alpha ProTech Engineered Products [Member] | sqft | ||||||||||||
sqm | sqm | ||||||||||||||
Note 7 - Equity Investments in and Advances to Unconsolidated Affiliate (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41.66% | ' | 58.34% | ' | ' |
Equity Method Investment, Aggregate Cost | $2,670,000 | ' | $2,670,000 | ' | ' | ' | ' | ' | ' | $508,000 | ' | $708,000 | ' | $1,450,000 | ' |
Number of Real Estate Properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Area of Real Estate Property (in Square Feet) | ' | ' | ' | ' | 71,500 | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | 102,000 |
Area of Real Estate Property (in Square Meters) | ' | ' | ' | ' | 71,500 | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | 102,000 |
Equity Method Investments | 1,450,000 | ' | 1,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 508,000 | ' |
Advances on Inventory Purchases | ' | ' | ' | ' | ' | ' | 942,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Expense To Acquire Inventory | 4,140,000 | 5,843,000 | 9,132,000 | 13,669,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (Loss) from Equity Method Investments | 101,000 | 84,000 | 172,000 | 402,000 | ' | ' | ' | 172,000 | 402,000 | ' | ' | ' | ' | ' | ' |
Cumulative Equity In Income of Unconsolidated Affiliate | ' | ' | ' | ' | ' | ' | ' | 2,239,000 | ' | ' | ' | ' | ' | ' | ' |
Repayments Of Advance | ' | ' | 942,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Equity Method Investment, Dividends or Distributions | ' | ' | $77,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_8_Accrued_Liabilities_Det
Note 8 - Accrued Liabilities (Details) - Accrued Liabilities consisted of the following (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Accrued Liabilities consisted of the following [Abstract] | ' | ' | |
Payroll expenses | $282,000 | $126,000 | |
Bonuses payable | 430,000 | 325,000 | |
Uncertain tax position | 193,000 | 342,000 | |
$905,000 | $793,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2012 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_9_Basic_and_Diluted_Earni2
Note 9 - Basic and Diluted Earnings Per Common Share (Details) - Earnings Per Share Reconciliation (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Net income (numerator) (in Dollars) | $905,000 | $414,000 | $1,395,000 | $859,000 |
Shares (denominator): | ' | ' | ' | ' |
Basic weighted average common shares outstanding | 19,008,660 | 20,674,335 | 19,326,491 | 20,839,266 |
Add: Dilutive effect of common stock options | 996 | ' | ' | ' |
Diluted weighted average common shares outstanding | 19,009,656 | 20,674,335 | 19,326,491 | 20,839,266 |
Earnings per common share: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.05 | $0.02 | $0.07 | $0.04 |
Diluted (in Dollars per share) | $0.05 | $0.02 | $0.07 | $0.04 |
Note_10_Activity_of_Business_S2
Note 10 - Activity of Business Segments (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 3 |
Note_10_Activity_of_Business_S3
Note 10 - Activity of Business Segments (Details) - Consolidated net sales (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net sales | $12,692,000 | $10,740,000 | $33,298,000 | $31,210,000 |
Building Supply [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net sales | 8,238,000 | 5,844,000 | 20,460,000 | 17,877,000 |
Disposable Protective Apparel [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net sales | 3,336,000 | 3,779,000 | 9,610,000 | 10,185,000 |
Infection Control [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment net sales | $1,118,000 | $1,117,000 | $3,228,000 | $3,148,000 |
Note_10_Activity_of_Business_S4
Note 10 - Activity of Business Segments (Details) - Reconciliation of total segment income to total consolidated net income (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Segment Income | $2,460,000 | $1,715,000 | $5,670,000 | $4,615,000 |
Unallocated corporate overhead expenses | -1,147,000 | -1,077,000 | -3,615,000 | -3,272,000 |
Provision for income taxes | -408,000 | -224,000 | -660,000 | -484,000 |
Consolidated net income | 905,000 | 414,000 | 1,395,000 | 859,000 |
Building Supply [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Segment Income | 1,668,000 | 849,000 | 3,668,000 | 2,275,000 |
Disposable Protective Apparel [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Segment Income | 389,000 | 550,000 | 950,000 | 1,472,000 |
Infection Control [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Segment Income | $403,000 | $316,000 | $1,052,000 | $868,000 |
Note_10_Activity_of_Business_S5
Note 10 - Activity of Business Segments (Details) - Consolidated net property and equipment, goodwill and intangible assets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment Assets | $3,314,000 | $3,543,000 |
Unallocated corporate assets | 24,000 | 44,000 |
Total consolidated assets | 3,338,000 | 3,587,000 |
Building Supply [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment Assets | 2,199,000 | 2,252,000 |
Disposable Protective Apparel [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment Assets | 496,000 | 528,000 |
Infection Control [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment Assets | $619,000 | $763,000 |