Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
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 | ' | 18,638,907 |
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 | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Current assets: | ' | ' | |
Cash and cash equivalents | $4,864,000 | $8,215,000 | [1] |
Investments | 2,231,000 | 1,606,000 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $99,000 and $85,000 as of March 31, 2014 and December 31, 2013, respectively | 7,135,000 | 5,071,000 | [1] |
Inventories | 14,482,000 | 14,140,000 | [1] |
Prepaid expenses | 3,259,000 | 2,968,000 | [1] |
Deferred income tax assets | 640,000 | 640,000 | [1] |
Total current assets | 32,611,000 | 32,640,000 | [1] |
Property and equipment, net | 2,938,000 | 3,068,000 | [1] |
Goodwill | 55,000 | 55,000 | [1] |
Definite-lived intangible assets, net | 87,000 | 92,000 | [1] |
Equity investments in unconsolidated affiliate | 2,818,000 | 2,708,000 | [1] |
Total assets | 38,509,000 | 38,563,000 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 847,000 | 689,000 | [1] |
Accrued liabilities | 583,000 | 1,036,000 | [1] |
Total current liabilities | 1,430,000 | 1,725,000 | [1] |
Deferred income tax liabilities | 1,412,000 | 1,257,000 | [1] |
Total liabilities | 2,842,000 | 2,982,000 | [1] |
Shareholders' equity: | ' | ' | |
Common stock, $.01 par value: 50,000,000 shares authorized; 18,638,909 and 18,878,109 shares outstanding as of March 31, 2014 and December 31, 2013, respectively | 186,000 | 189,000 | [1] |
Additional paid-in capital | 18,476,000 | 18,994,000 | [1] |
Accumulated other comprehensive income | 963,000 | 625,000 | [1] |
Retained earnings | 16,042,000 | 15,773,000 | [1] |
Total shareholders' equity | 35,667,000 | 35,581,000 | [1] |
Total liabilities and shareholders' equity | $38,509,000 | $38,563,000 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts (in Dollars) | $99,000 | $85,000 | [1] |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 | [1] |
Common stock, shares authorized | 50,000,000 | 50,000,000 | [1] |
Common stock, shares outstanding | 18,638,909 | 18,878,109 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net sales | $9,956,000 | $9,450,000 |
Cost of goods sold, excluding depreciation and amortization | 6,346,000 | 5,787,000 |
Gross profit | 3,610,000 | 3,663,000 |
Operating expenses: | ' | ' |
Selling, general and administrative | 3,371,000 | 3,512,000 |
Depreciation and amortization | 188,000 | 181,000 |
Total operating expenses | 3,559,000 | 3,693,000 |
Income (loss) from operations | 51,000 | -30,000 |
Other income : | ' | ' |
Equity in income of unconsolidated affiliate | 110,000 | 33,000 |
Gain on investments in common stock and common stock warrants | 191,000 | ' |
Interest income | 3,000 | 1,000 |
Total other income | 304,000 | 34,000 |
Income before provision (benefit) for income taxes | 355,000 | 4,000 |
Provision (benefit) for income taxes | 86,000 | -11,000 |
Net income | $269,000 | $15,000 |
Basic earnings per common share (in Dollars per share) | $0.01 | $0 |
Diluted earnings per common share (in Dollars per share) | $0.01 | $0 |
Basic weighted average common shares outstanding (in Shares) | 18,859,834 | 19,715,775 |
Diluted weighted average common shares outstanding (in Shares) | 19,163,050 | 19,749,157 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net income | $269,000 | $15,000 |
Change in unrealized gain on marketable securities | 442,000 | 47,000 |
Reclassification adjustment for gains included in net income,net of tax of $57,000 | -104,000 | ' |
Other comprehensive income | 338,000 | 47,000 |
Comprehensive income | $607,000 | $62,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Reclassification adjustment for gains included in net income, tax | $57,000 |
Condensed_Consolidated_Stateme3
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, 2013 | $189,000 | $18,994,000 | $15,773,000 | $625,000 | $35,581,000 | [1] |
Balance (in Shares) at Dec. 31, 2013 | 18,878,109 | ' | ' | ' | 18,878,109 | [1] |
Options exercised | ' | 48,000 | ' | ' | 48,000 | |
Options exercised (in Shares) | 30,000 | ' | ' | ' | -30,000 | |
Share-based compensation expense | ' | 8,000 | ' | ' | 8,000 | |
Common stock repurchased and retired | -3,000 | -574,000 | ' | ' | -577,000 | |
Common stock repurchased and retired (in Shares) | -269,200 | ' | ' | ' | ' | |
Net income | ' | ' | 269,000 | ' | 269,000 | |
Other comprehensive income | ' | ' | ' | 338,000 | 338,000 | |
Balance at Mar. 31, 2014 | $186,000 | $18,476,000 | $16,042,000 | $963,000 | $35,667,000 | |
Balance (in Shares) at Mar. 31, 2014 | 18,638,909 | ' | ' | ' | 18,638,909 | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Cash Flows From Operating Activities: | ' | ' | |
Net income | $269,000 | $15,000 | |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' | |
Stock-based compensation expense | 8,000 | 55,000 | |
Depreciation and amortization | 188,000 | 181,000 | |
Equity in income of unconsolidated affiliate | -110,000 | -33,000 | |
Gain on investment in common stock warrants | -30,000 | ' | |
Changes in assets and liabilities: | ' | ' | |
Accounts receivable, net | -2,064,000 | -1,147,000 | |
Inventories | -342,000 | 865,000 | |
Prepaid expenses | -291,000 | -217,000 | |
Accounts payable and accrued liabilities | -295,000 | -41,000 | |
Net cash used in operating activities | -2,667,000 | -322,000 | |
Cash Flows From Investing Activities: | ' | ' | |
Purchase of property and equipment | -21,000 | -71,000 | |
Purchase of marketable securities | -134,000 | ' | |
Net cash used in investing activities | -155,000 | -71,000 | |
Cash Flows From Financing Activities: | ' | ' | |
Proceeds from exercise of stock options | 48,000 | 42,000 | |
Repurchase of common stock | -577,000 | -872,000 | |
Net cash used in financing activities | -529,000 | -830,000 | |
Net decrease in cash and cash equivalents | -3,351,000 | -1,223,000 | |
Cash and cash equivalents, beginning of the period | 8,215,000 | [1] | 4,554,000 |
Cash and cash equivalents, end of the period | $4,864,000 | $3,331,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Note_1_The_Company
Note 1 - The Company | 3 Months Ended | |
Mar. 31, 2014 | ||
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 building supply products for the new home and re-roofing markets; a line of disposable protective apparel for the cleanroom, the industrial markets and the pharmaceutical markets; and a line of infection control products for the medical and dental markets. | ||
The Building Supply segment consists 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, gowns, frocks and lab coats. | ||
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 (“US”). |
Note_2_Basis_of_Presentation
Note 2 - Basis of Presentation | 3 Months Ended | |
Mar. 31, 2014 | ||
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 (“US GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings on Form 8-K, as well as the consolidated financial statements for the year ended December 31, 2013, which are included in the Company’s Annual Report on Form 10-K (the “2013 Form 10-K”), which was filed on March 6, 2014. The results of operations for the three months ended March 31, 2014 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, 2013 was prepared using information from the audited consolidated balance sheet contained in the 2013 Form 10-K, and does not include all disclosures required by US GAAP for annual consolidated financial statements. |
Note_3_StockBased_Compensation
Note 3 - Stock-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
3 | Stock-Based Compensation | ||||||||||||
The Company maintains a stock option plan under which the Company may grant incentive stock options and non-qualified stock options to employees and non-employee directors. Stock options have been granted with exercise prices at or above the fair market value of the underlying shares of common stock on the date of grant. Options vest and expire according to terms established at the grant date. | |||||||||||||
The Company accounts for stock-based awards in accordance with FASB ASC 718, Stock Compensation. ASC 718 requires companies to record compensation expense for the value of all outstanding and unvested share-based awards, including employee stock options. | |||||||||||||
For the three months ended March 31, 2014 and 2013, there were no stock options granted under the Company’s option plan. The Company recognized $8,000 and $55,000 in stock-based compensation expense for the three months ended March 31, 2014 and 2013, respectively, related to issued options. | |||||||||||||
Stock options to purchase 1,040,000 and 1,705,001 shares of common stock were outstanding as of March 31, 2014 and 2013, respectively. | |||||||||||||
The Company uses the Black-Scholes 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 three months ended March 31, 2014: | |||||||||||||
Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | |||||||||||
Options outstanding as of December 31, 2013 | 1,070,000 | $ | 1.58 | 1.97 | |||||||||
Granted | - | - | - | ||||||||||
Exercised | 30,000 | 1.6 | - | ||||||||||
Canceled/expired/forfeited | - | - | - | ||||||||||
Options outstanding as of March 31, 2014 | 1,040,000 | 1.58 | 1.74 | ||||||||||
Options exercisable as of March 31, 2014 | 900,000 | 1.6 | 1.35 | ||||||||||
As of March 31, 2014, $64,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 2.5 years. |
Note_4_Investments
Note 4 - Investments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||
4 | Investments | ||||||||
The investments consist of available-for-sale marketable securities and non-trading common stock warrants. As of December 31, 2013, investments totaled $1,606,000, which consisted of marketable securities of $1,256,000 and common stock warrants of $350,000. As of March 31, 2014, investments totaled $2,231,000, which consisted of only available-for-sale marketable securities. | |||||||||
The following provides information regarding the Company’s marketable securities as of March 31, 2014 and December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Cost basis | $ | 358,000 | $ | 255,000 | |||||
Unrealized gains included in accumulated other comprehensive income | 1,493,000 | 1,001,000 | |||||||
Realized gains previously recognized as warrants | 380,000 | - | |||||||
Fair value | $ | 2,231,000 | $ | 1,256,000 | |||||
Certain marketable securities were sold in the first quarter of 2014, and no marketable securities were sold during the year ended December 31, 2013. Realized gains recognized during the first quarter of 2014 were $161,000 ($104,000 net of tax, which is the amount reclassified out of accumulated other comprehensive income). Unrealized gains of $338,000 and $47,000 on the statements of comprehensive income are presented net of tax. Taxes on the unrealized gains were $155,000 and $28,000, for the three months ended March 31, 2014 and 2013, respectively. | |||||||||
Prior to the first quarter of 2014, the Company held warrants to purchase up to 167,500 shares of common stock of an entity which were set to expire in September 2014; the Company exercised all of the warrants in the first quarter of 2014. Prior to the exercise, the Company recognized $30,000 in income during the three months ended March 31, 2014 based upon the appreciation in the fair value of the underlying common stock. |
Note_5_New_Accounting_Standard
Note 5 - New Accounting Standards | 3 Months Ended | |
Mar. 31, 2014 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' | |
5 | New Accounting Standards | |
Management periodically reviews new accounting standards that are issued. Although some of these accounting standards may be applicable to the Company, management has not identified any new standards that it believes merit further discussion at this time, and the Company expects that none would have a significant impact on its condensed consolidated financial statements. |
Note_6_Inventories
Note 6 - Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
6 | Inventories | ||||||||
As of March 31, 2014 and December 31, 2013, inventories consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 6,180,000 | $ | 5,876,000 | |||||
Work in process | 2,245,000 | 2,178,000 | |||||||
Finished goods | 6,057,000 | 6,086,000 | |||||||
$ | 14,482,000 | $ | 14,140,000 | ||||||
Note_7_Equity_Investments_in_U
Note 7 - Equity Investments in Unconsolidated Affiliate | 3 Months Ended | |
Mar. 31, 2014 | ||
Equity Method Investments and Joint Ventures [Abstract] | ' | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | |
7 | Equity Investments in Unconsolidated Affiliate | |
In 2005, Alpha ProTech Engineered Products, Inc. (a subsidiary of Alpha Pro Tech, Ltd.) 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 housewrap and synthetic roof underlayment and provides future capacity for sales of specialty roofing component products and custom products for industrial applications requiring high quality extrusion coated fabrics. In addition, the joint venture now supplies 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 four facilities in India (three owned and one rented), 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; (3) a 16,000 square foot facility for sewing proprietary disposable protective apparel; and (4) a 12,000 square foot rented facility that coats material. All additions have been financed by Harmony with no guarantees from the Company. | ||
In accordance with FASB ASC 810, Consolidation, 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 unconsolidated affiliate” in the accompanying balance sheets. The Company records its equity interest in Harmony’s results of operations as “equity in income of unconsolidated affiliate” in the accompanying statements of income. The Company reviews annually its investment in Harmony for impairment. Management has determined that no impairment was required as of March 31, 2014. | ||
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. Fifty percent of the $942,000 long-term advance for materials was to be repaid over a six-year term that commenced in July 2006, and any remaining balance was to be paid in the seventh year. Harmony has repaid the advance in full, with the final $417,000 payment made in the third quarter of 2012. | ||
For the three months ended March 31, 2014 and 2013, Alpha Pro Tech purchased $4,258,000 and $2,709,000 of inventories, respectively, from Harmony. For the three months ended March 31, 2014 and 2013, the Company recorded equity in income of unconsolidated affiliate of $110,000 and $33,000, respectively. As of March 31, 2014, the Company’s investment in Harmony was $2,818,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $2,387,000, less $942,000 in repayments of the advance and payment of $77,000 in dividends. |
Note_8_Accrued_Liabilities
Note 8 - Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
8 | Accrued Liabilities | ||||||||
As of March 31, 2014 and December 31, 2013, accrued liabilities consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Payroll expenses | $ | 226,000 | $ | 178,000 | |||||
Bonuses payable | 163,000 | 664,000 | |||||||
Uncertain tax position | 194,000 | 194,000 | |||||||
$ | 583,000 | $ | 1,036,000 | ||||||
Note_9_Basic_and_Diluted_Earni
Note 9 - Basic and Diluted Earnings Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 months ended March 31, 2014 and 2013. | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (numerator) | $ | 269,000 | $ | 15,000 | |||||
Shares (denominator): | |||||||||
Basic weighted average common shares outstanding | 18,859,834 | 19,715,775 | |||||||
Add: Dilutive effect of common stock options | 303,216 | 33,382 | |||||||
Diluted weighted average common shares outstanding | 19,163,050 | 19,749,157 | |||||||
Earnings per common share: | |||||||||
Basic | $ | 0.01 | $ | 0 | |||||
Diluted | $ | 0.01 | $ | 0 | |||||
Note_10_Activity_of_Business_S
Note 10 - Activity of Business Segments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
10 | Activity of Business Segments | ||||||||
The Company operates through three business segments: | |||||||||
Building Supply: consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and synthetic roof underlayment, as well as other woven material. The Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment. | |||||||||
Disposable Protective Apparel: consisting 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: consisting 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 months ended March 31, 2014 and 2013: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Building Supply | $ | 5,521,000 | $ | 5,164,000 | |||||
Disposable Protective Apparel | 3,364,000 | 3,220,000 | |||||||
Infection Control | 1,071,000 | 1,066,000 | |||||||
Total consolidated net sales | $ | 9,956,000 | $ | 9,450,000 | |||||
The following table presents the reconciliation of total segment income to total consolidated net income for the three months ended March 31, 2014 and 2013: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Building Supply | $ | 750,000 | $ | 637,000 | |||||
Disposable Protective Apparel | 240,000 | 364,000 | |||||||
Infection Control | 321,000 | 307,000 | |||||||
Total consolidated segment income | 1,311,000 | 1,308,000 | |||||||
Unallocated corporate overhead expenses | 956,000 | 1,304,000 | |||||||
Provision (benefit) for income taxes | 86,000 | (11,000 | ) | ||||||
Consolidated net income | $ | 269,000 | $ | 15,000 | |||||
The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of March 31, 2014 and December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Building Supply | $ | 2,086,000 | $ | 2,144,000 | |||||
Disposable Protective Apparel | 467,000 | 483,000 | |||||||
Infection Control | 519,000 | 568,000 | |||||||
Total segment assets | 3,072,000 | 3,195,000 | |||||||
Unallocated corporate assets | 8,000 | 20,000 | |||||||
Total consolidated assets | $ | 3,080,000 | $ | 3,215,000 | |||||
Note_11_Subsequent_Events
Note 11 - Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014 through the filing date of this Form 10-Q that would require accounting or disclosure and has concluded that there are no suck subsequent events that require disclosure.. |
Note_3_StockBased_Compensation1
Note 3 - Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | |||||||||||
Options outstanding as of December 31, 2013 | 1,070,000 | $ | 1.58 | 1.97 | |||||||||
Granted | - | - | - | ||||||||||
Exercised | 30,000 | 1.6 | - | ||||||||||
Canceled/expired/forfeited | - | - | - | ||||||||||
Options outstanding as of March 31, 2014 | 1,040,000 | 1.58 | 1.74 | ||||||||||
Options exercisable as of March 31, 2014 | 900,000 | 1.6 | 1.35 |
Note_4_Investments_Tables
Note 4 - Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Cost basis | $ | 358,000 | $ | 255,000 | |||||
Unrealized gains included in accumulated other comprehensive income | 1,493,000 | 1,001,000 | |||||||
Realized gains previously recognized as warrants | 380,000 | - | |||||||
Fair value | $ | 2,231,000 | $ | 1,256,000 |
Note_6_Inventories_Tables
Note 6 - Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 6,180,000 | $ | 5,876,000 | |||||
Work in process | 2,245,000 | 2,178,000 | |||||||
Finished goods | 6,057,000 | 6,086,000 | |||||||
$ | 14,482,000 | $ | 14,140,000 |
Note_8_Accrued_Liabilities_Tab
Note 8 - Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Payroll expenses | $ | 226,000 | $ | 178,000 | |||||
Bonuses payable | 163,000 | 664,000 | |||||||
Uncertain tax position | 194,000 | 194,000 | |||||||
$ | 583,000 | $ | 1,036,000 |
Note_9_Basic_and_Diluted_Earni1
Note 9 - Basic and Diluted Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (numerator) | $ | 269,000 | $ | 15,000 | |||||
Shares (denominator): | |||||||||
Basic weighted average common shares outstanding | 18,859,834 | 19,715,775 | |||||||
Add: Dilutive effect of common stock options | 303,216 | 33,382 | |||||||
Diluted weighted average common shares outstanding | 19,163,050 | 19,749,157 | |||||||
Earnings per common share: | |||||||||
Basic | $ | 0.01 | $ | 0 | |||||
Diluted | $ | 0.01 | $ | 0 |
Note_10_Activity_of_Business_S1
Note 10 - Activity of Business Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Building Supply | $ | 5,521,000 | $ | 5,164,000 | |||||
Disposable Protective Apparel | 3,364,000 | 3,220,000 | |||||||
Infection Control | 1,071,000 | 1,066,000 | |||||||
Total consolidated net sales | $ | 9,956,000 | $ | 9,450,000 | |||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Building Supply | $ | 750,000 | $ | 637,000 | |||||
Disposable Protective Apparel | 240,000 | 364,000 | |||||||
Infection Control | 321,000 | 307,000 | |||||||
Total consolidated segment income | 1,311,000 | 1,308,000 | |||||||
Unallocated corporate overhead expenses | 956,000 | 1,304,000 | |||||||
Provision (benefit) for income taxes | 86,000 | (11,000 | ) | ||||||
Consolidated net income | $ | 269,000 | $ | 15,000 | |||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Building Supply | $ | 2,086,000 | $ | 2,144,000 | |||||
Disposable Protective Apparel | 467,000 | 483,000 | |||||||
Infection Control | 519,000 | 568,000 | |||||||
Total segment assets | 3,072,000 | 3,195,000 | |||||||
Unallocated corporate assets | 8,000 | 20,000 | |||||||
Total consolidated assets | $ | 3,080,000 | $ | 3,215,000 |
Note_3_StockBased_Compensation2
Note 3 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | |
Note 3 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | $8,000 | $55,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,040,000 | 1,705,001 | 1,070,000 |
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) | $64,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 6 months | ' | ' |
The 2004 Plan [Member] | ' | ' | ' |
Note 3 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ' |
Note_3_StockBased_Compensation3
Note 3 - Stock-Based Compensation (Details) - Stock Option Activity (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
Stock Option Activity [Abstract] | ' | ' | ' |
Options | ' | 1,070,000 | 1,705,001 |
Weighted Average Exercise Price | ' | $1.58 | ' |
Weighted Average Remaining Contractual Life (in years) | '1 year 270 days | '1 year 354 days | ' |
Options exercisable as of March 31, 2014 | 900,000 | ' | ' |
Options exercisable as of March 31, 2014 | $1.60 | ' | ' |
Options exercisable as of March 31, 2014 | '1 year 127 days | ' | ' |
Exercised | 30,000 | ' | ' |
Exercised | $1.60 | ' | ' |
Options | 1,040,000 | ' | 1,705,001 |
Weighted Average Exercise Price | $1.58 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '1 year 270 days | '1 year 354 days | ' |
Note_4_Investments_Details
Note 4 - Investments (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Note 4 - Investments (Details) [Line Items] | ' | ' | ' | |
Available-for-sale Securities, Current | $2,231,000 | ' | $1,606,000 | [1] |
Marketable Securities, Realized Gain (Loss) | 161,000 | ' | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 104,000 | ' | ' | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 338,000 | 47,000 | ' | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 155,000 | 28,000 | ' | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 167,500 | ' | ' | |
Derivative, Gain on Derivative | 30,000 | ' | ' | |
Marketable Securities [Member] | ' | ' | ' | |
Note 4 - Investments (Details) [Line Items] | ' | ' | ' | |
Available-for-sale Securities, Current | 2,231,000 | ' | 1,256,000 | |
Warrant [Member] | ' | ' | ' | |
Note 4 - Investments (Details) [Line Items] | ' | ' | ' | |
Available-for-sale Securities, Current | ' | ' | $350,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Note_4_Investments_Details_Ava
Note 4 - Investments (Details) - Available-for-Sale Marketable Securities (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | ||
Note 4 - Investments (Details) - Available-for-Sale Marketable Securities [Line Items] | ' | ' | |
Fair value | $2,231,000 | $1,606,000 | [1] |
Marketable Securities [Member] | ' | ' | |
Note 4 - Investments (Details) - Available-for-Sale Marketable Securities [Line Items] | ' | ' | |
Cost basis | 358,000 | 255,000 | |
Unrealized gains included in accumulated other comprehensive income | 1,493,000 | 1,001,000 | |
Realized gains previously recognized as warrants | 380,000 | ' | |
Fair value | $2,231,000 | $1,256,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Note_6_Inventories_Details_Inv
Note 6 - Inventories (Details) - Inventories (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Inventories [Abstract] | ' | ' | |
Raw materials | $6,180,000 | $5,876,000 | |
Work in process | 2,245,000 | 2,178,000 | |
Finished goods | 6,057,000 | 6,086,000 | |
$14,482,000 | $14,140,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Note_7_Equity_Investments_in_U1
Note 7 - Equity Investments in Unconsolidated Affiliate (Details) (USD $) | 3 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Sep. 30, 2012 | ||
Alpha ProTech Engineered Products [Member] | Alpha ProTech Engineered Products [Member] | Maple Industries And Associates [Member] | Repaid Balance [Member] | ||||||
Long Term Advance For Materials [Member] | |||||||||
Note 7 - Equity Investments in Unconsolidated Affiliate (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | 41.66% | 58.34% | ' | |
Equity Method Investment, Aggregate Cost | ' | ' | ' | $1,450,000 | $942,000 | $508,000 | $708,000 | ' | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 2,818,000 | ' | 2,708,000 | [1] | ' | ' | ' | ' | 417,000 |
Expense To Acquire Inventory | 4,258,000 | 2,709,000 | ' | ' | ' | ' | ' | ' | |
Income (Loss) from Equity Method Investments | 110,000 | 33,000 | ' | ' | ' | ' | ' | ' | |
Equity Method Investments | 2,818,000 | ' | ' | ' | ' | ' | ' | ' | |
Cumulative Equity In Income of Unconsolidated Affiliate | 2,387,000 | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Equity Method Investment, Dividends or Distributions | $77,000 | ' | ' | ' | ' | ' | ' | ' | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance sheet as of that date. |
Note_8_Accrued_Liabilities_Det
Note 8 - Accrued Liabilities (Details) - Accrued Liabilities (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Accrued Liabilities [Abstract] | ' | ' | |
Payroll expenses | $226,000 | $178,000 | |
Bonuses payable | 163,000 | 664,000 | |
Uncertain tax position | 194,000 | 194,000 | |
$583,000 | $1,036,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been prepared using information from the audited consolidatedbalance 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 | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share Reconciliation [Abstract] | ' | ' |
Net income (numerator) (in Dollars) | $269,000 | $15,000 |
Shares (denominator): | ' | ' |
Basic weighted average common shares outstanding | 18,859,834 | 19,715,775 |
Add: Dilutive effect of common stock options | 303,216 | 33,382 |
Diluted weighted average common shares outstanding | 19,163,050 | 19,749,157 |
Earnings per common share: | ' | ' |
Basic (in Dollars per share) | $0.01 | $0 |
Diluted (in Dollars per share) | $0.01 | $0 |
Note_10_Activity_of_Business_S2
Note 10 - Activity of Business Segments (Details) | 3 Months Ended |
Mar. 31, 2014 | |
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 | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Consolidated net sales | $9,956,000 | $9,450,000 |
Operating Segments [Member] | Building Supply [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Consolidated net sales | 5,521,000 | 5,164,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Consolidated net sales | 3,364,000 | 3,220,000 |
Operating Segments [Member] | Infection Control [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Consolidated net sales | $1,071,000 | $1,066,000 |
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 | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Consolidated net income | $269,000 | $15,000 |
Provision (benefit) for income taxes | 86,000 | -11,000 |
Operating Segments [Member] | Building Supply [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Consolidated net income | 750,000 | 637,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Consolidated net income | 240,000 | 364,000 |
Operating Segments [Member] | Infection Control [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Consolidated net income | 321,000 | 307,000 |
Operating Segments [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Consolidated net income | 1,311,000 | 1,308,000 |
Corporate, Non-Segment [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Consolidated net income | $956,000 | $1,304,000 |
Note_10_Activity_of_Business_S5
Note 10 - Activity of Business Segments (Details) - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | $3,080,000 | $3,215,000 |
Operating Segments [Member] | Building Supply [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 2,086,000 | 2,144,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 467,000 | 483,000 |
Operating Segments [Member] | Infection Control [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 519,000 | 568,000 |
Operating Segments [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 3,072,000 | 3,195,000 |
Corporate, Non-Segment [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | $8,000 | $20,000 |