Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Entity Registrant Name | ALPHA PRO TECH LTD | |
Entity Central Index Key | 884269 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 18,219,454 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash | $1,105,000 | $5,495,000 | [1] |
Investments | 2,307,000 | 2,840,000 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $60,000 and $60,000 as of March 31, 2015 and December 31, 2014, respectively | 7,792,000 | 5,333,000 | [1] |
Accounts receivable, related party | 417,000 | 333,000 | [1] |
Inventories | 19,117,000 | 16,544,000 | [1] |
Prepaid expenses | 4,528,000 | 4,472,000 | [1] |
Deferred income tax assets | 486,000 | 486,000 | [1] |
Total current assets | 35,752,000 | 35,503,000 | [1] |
Property and equipment, net | 3,208,000 | 3,315,000 | [1] |
Goodwill | 55,000 | 55,000 | [1] |
Definite-lived intangible assets, net | 65,000 | 71,000 | [1] |
Equity investments in unconsolidated affiliate | 3,106,000 | 3,008,000 | |
Total assets | 42,186,000 | 41,952,000 | [1] |
Current liabilities: | |||
Accounts payable | 2,679,000 | 1,099,000 | [1] |
Accrued liabilities | 540,000 | 1,195,000 | [1] |
Total current liabilities | 3,219,000 | 2,294,000 | [1] |
Deferred income tax liabilities | 1,546,000 | 1,752,000 | [1] |
Total liabilities | 4,765,000 | 4,046,000 | [1] |
Commitments | |||
Shareholders' equity: | |||
Common stock, $.01 par value: 50,000,000 shares authorized; 18,219,456 and 18,348,556 shares outstanding as of March 31, 2015 and December 31, 2014, respectively | 182,000 | 183,000 | [1] |
Additional paid-in capital | 17,529,000 | 17,833,000 | [1] |
Accumulated other comprehensive income | 1,047,000 | 1,375,000 | [1] |
Retained earnings | 18,663,000 | 18,515,000 | [1] |
Total shareholders' equity | 37,421,000 | 37,906,000 | [1] |
Total liabilities and shareholders' equity | $42,186,000 | $41,952,000 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2014 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 $) | Mar. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts | $60,000 | $60,000 | [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) | 18,219,456 | 18,348,556 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2014 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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net sales | $10,654,000 | $9,956,000 |
Cost of goods sold, excluding depreciation and amortization | 6,829,000 | 6,346,000 |
Gross profit | 3,825,000 | 3,610,000 |
Operating expenses: | ||
Selling, general and administrative | 3,577,000 | 3,371,000 |
Depreciation and amortization | 171,000 | 188,000 |
Total operating expenses | 3,748,000 | 3,559,000 |
Income from operations | 77,000 | 51,000 |
Other income: | ||
Equity in income of unconsolidated affiliate | 98,000 | 110,000 |
Gain on sale of marketable securities and investment in common stock warrants | 191,000 | |
Interest, net | 1,000 | 3,000 |
Total other income | 99,000 | 304,000 |
Income before provision for income taxes | 176,000 | 355,000 |
Provision for income taxes | 28,000 | 86,000 |
Net income | $148,000 | $269,000 |
Basic earnings per common share (in dollars per share) | $0.01 | $0.01 |
Diluted earnings per common share (in dollars per share) | $0.01 | $0.01 |
Basic weighted average common shares outstanding (in shares) | 18,299,933 | 18,859,834 |
Diluted weighted average common shares outstanding (in shares) | 18,499,572 | 19,163,050 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net income | $148,000 | $269,000 |
Other comprehensive income (loss): | ||
Change in unrealized gain (loss) on marketable securities, net of tax of ($205,000) and $155,000 | -328,000 | 442,000 |
Reclassification adjustment for gains included in net income, net of tax of $57,000 | -104,000 | |
Total other comprehensive income (loss) | -328,000 | 338,000 |
Comprehensive income (loss) | ($180,000) | $607,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ($205,000) | $155,000 |
Reclassification adjustment for gains included in net income, tax | $57,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement 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, 2014 | $183,000 | $17,833,000 | $18,515,000 | $1,375,000 | $37,906,000 | [1] |
Balance (in shares) at Dec. 31, 2014 | 18,348,556 | 18,348,556 | [1] | |||
Common stock repurchased and retired (in shares) | -129,100 | |||||
Common stock repurchased and retired | -1,000 | -310,000 | -311,000 | |||
Stock-based compensation expense | 6,000 | 6,000 | ||||
Net income | 148,000 | 148,000 | ||||
Other comprehensive loss | -328,000 | -328,000 | ||||
Balance at Mar. 31, 2015 | $182,000 | $17,529,000 | $18,663,000 | $1,047,000 | $37,421,000 | |
Balance (in shares) at Mar. 31, 2015 | 18,219,456 | 18,219,456 | ||||
[1] | The condensed consolidated balance sheet as of December 31, 2014 has been prepared using information from the audited consolidated balance sheet as of that date. |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | ||
Cash Flows From Operating Activities: | |||
Net income | $148,000 | $269,000 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Stock-based compensation expense | 6,000 | 8,000 | |
Depreciation and amortization | 171,000 | 188,000 | |
Equity in income of unconsolidated affiliate | -98,000 | -110,000 | |
Gain on investment in common stock warrants | -30,000 | ||
Changes in assets and liabilities: | |||
Accounts receivable, net | -2,459,000 | -2,064,000 | |
Accounts receivable, related party | -84,000 | ||
Inventories | -2,573,000 | -342,000 | |
Prepaid expenses | -56,000 | -291,000 | |
Accounts payable and accrued liabilities | 924,000 | -295,000 | |
Net cash used in operating activities | -4,021,000 | -2,667,000 | |
Cash Flows From Investing Activities: | |||
Purchase of property and equipment | -58,000 | -21,000 | |
Purchase of investments | -134,000 | ||
Net cash used in investing activities | -58,000 | -155,000 | |
Cash Flows From Financing Activities: | |||
Repurchase of common stock | -311,000 | -577,000 | |
Proceeds from exercise of stock options | 48,000 | ||
Net cash used in financing activities | -311,000 | -529,000 | |
Decrease in cash | -4,390,000 | -3,351,000 | |
Cash, beginning of the period | 5,495,000 | [1] | 8,215,000 |
Cash, end of the period | $1,105,000 | $4,864,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2014 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_1_The_Company
Note 1 - The Company | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
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, industrial and 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, 2015 | ||
Notes to Financial Statements | ||
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 US 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, 2014, which are included in the Company’s Annual Report on Form 10-K (the “2014 Form 10-K”), which was filed on March 6, 2015. The results of operations for the three months ended March 31, 2015 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, 2014 was prepared using information from the audited consolidated balance sheet contained in the 2014 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, 2015 | |||||||||
Notes to Financial Statements | |||||||||
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 records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options. | |||||||||
For the three months ended March 31, 2015 and 2014, there were no stock options granted under the Company’s option plan. The Company recognized $6,000 and $8,000 in stock-based compensation expense for the three months ended March 31, 2015 and 2014, respectively, related to the vesting of previously issued options. | |||||||||
Stock options to purchase 580,000 shares of common stock were outstanding as of March 31, 2015 and December 31, 2014. | |||||||||
6 | |||||||||
Alpha Pro Tech, Ltd. | |||||||||
Notes to Condensed Consolidated Financial Statements (Unaudited) | |||||||||
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 US Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility and management’s expectations of future 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 for the three months ended March 31, 2015: | |||||||||
Weighted | |||||||||
Average | |||||||||
Exercise Price | |||||||||
Shares | Per Option | ||||||||
Options outstanding, December 31, 2014 | 580,000 | $ | 1.58 | ||||||
Granted to employees and non-employee directors | - | - | |||||||
Exercised | - | - | |||||||
Canceled/expired/forfeited | - | - | |||||||
Options outstanding, March 31, 2015 | 580,000 | 1.58 | |||||||
Options exercisable, March 31, 2015 | 500,000 | 1.59 | |||||||
As of March 31, 2015, $35,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 1.5 years. | |||||||||
Note_4_Investments
Note 4 - Investments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4 | Investments | |||||||
As of March 31, 2015 and December 31, 2014, investments totaled $2,307,000 and $2,840,000 respectively, which consisted of marketable securities. | |||||||||
The following provides information regarding the Company’s marketable securities as of March 31, 2015 and December 31, 2014: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Cost basis | $ | 327,000 | $ | 327,000 | |||||
Gains previously recognized on warrants | 380,000 | 380,000 | |||||||
Gains included in accumulated other comprehensive income | 1,600,000 | 2,133,000 | |||||||
Fair value | $ | 2,307,000 | $ | 2,840,000 | |||||
No marketable securities were sold during the quarter ended March 31, 2015. Marketable securities were sold during the year ended December 31, 2014, which resulted in $440,000 of proceeds and realized gains included in earnings of $379,000, $245,000 net of tax. The change in unrealized loss of $328,000 and unrealized gains of $442,000 in the statements of comprehensive income (loss) are presented net of tax. The tax benefit on the unrealized loss was $205,000 and the tax expense on unrealized gains was $155,000 for the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
7 | |||||||||
Alpha Pro Tech, Ltd. | |||||||||
Notes to Condensed Consolidated Financial Statements (Unaudited) | |||||||||
The Company held warrants to purchase common stock in an entity that were exercisable for up to 167,500 shares of the entity. During 2014, all warrants were exercised. The following provides information regarding the Company’s investment in common stock warrants for the three months ended March 31, 2015 and 2014: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning balance | $ | - | $ | 350,000 | |||||
Fair value change in common stock warrants | - | 30,000 | |||||||
Fair value of warrants exercised | - | (380,000 | ) | ||||||
Ending balance | $ | - | $ | - |
Note_5_New_Accounting_Standard
Note 5 - New Accounting Standard | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 5 | New Accounting Standard |
Accounting Standards Update (“ASU”) 2014-09, | ||
Revenue from Contracts with Customers | ||
(Topic 606) (“ASU 2014-09”) is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within an annual reporting period beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt ASU 2014-09 during the first quarter of 2017. Management is evaluating the provisions of this update and has not determined the impact its adoption will have on the Company’s financial position or results of operations. | ||
Management periodically reviews new accounting standards that are issued. Management has not identified any other new standards that it believes merit further discussion at this time. | ||
Note_6_Inventories
Note 6 - Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Inventory Disclosure [Text Block] | 6 | Inventories | |||||||
As of March 31, 2015 and December 31, 2014, inventories consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 7,424,000 | $ | 6,436,000 | |||||
Work in process | 5,299,000 | 4,834,000 | |||||||
Finished goods | 6,394,000 | 5,274,000 | |||||||
$ | 19,117,000 | $ | 16,544,000 |
Note_7_Equity_Investment_in_Un
Note 7 - Equity Investment in Unconsolidated Affiliate | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 7 | Equity Investment 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. | ||
8 | ||
Alpha Pro Tech, Ltd. | ||
Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
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 for coating material. All additions have been financed by Harmony with no guarantees from the Company or its subsidiaries. | ||
The Company assesses whether or not related entities are variable interest entities (“VIEs”). For those related entities that qualify as VIEs, the Company determines whether or not it is the primary beneficiary of the VIE, and, if so, the Company will 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 investment in 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. The Company reviews annually its investment in Harmony for impairment. Management has determined that no impairment was required as of March 31, 2015. | ||
For the three months ended March 31, 2015 and 2014, the Company purchased $3,058,000 and $4,258,000 of inventories, respectively, from Harmony. For the three months ended March 31, 2015 and 2014, the Company recorded equity in income of unconsolidated affiliate of $98,000 and $110,000, respectively. | ||
As of March 31, 2015, the Company’s investment in Harmony was $3,106,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $2,675,000, less $942,000 in repayments of the advance and $77,000 in dividends. |
Note_8_Accrued_Liabilities
Note 8 - Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8 | Accrued Liabilities | |||||||
As of March 31, 2015 and December 31, 2014, accrued liabilities consisted of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Payroll expenses | $ | 277,000 | $ | 192,000 | |||||
Bonuses payable | 69,000 | 809,000 | |||||||
Uncertain tax position liability | 194,000 | 194,000 | |||||||
$ | 540,000 | $ | 1,195,000 |
Note_9_Basic_and_Diluted_Earni
Note 9 - Basic and Diluted Earnings Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
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 dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three months ended March 31, 2015 and 2014. | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (numerator) | $ | 148,000 | $ | 269,000 | |||||
Shares (denominator): | |||||||||
Basic weighted average common shares outstanding | 18,299,933 | 18,859,834 | |||||||
Add: dilutive effect of common stock options | 199,639 | 303,216 | |||||||
Diluted weighted average common shares outstanding | 18,499,572 | 19,163,050 | |||||||
Earnings per common share: | |||||||||
Basic | $ | 0.01 | $ | 0.01 | |||||
Diluted | $ | 0.01 | $ | 0.01 |
Note_10_Activity_of_Business_S
Note 10 - Activity of Business Segments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
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 and other unallocated expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales. | |||||||||
10 | |||||||||
Alpha Pro Tech, Ltd. | |||||||||
Notes to Condensed Consolidated Financial Statements (Unaudited) | |||||||||
The following table presents consolidated net sales for each segment for the three months ended March 31, 2015 and 2014: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Building Supply | $ | 5,811,000 | $ | 5,521,000 | |||||
Disposable Protective Apparel | 3,648,000 | 3,364,000 | |||||||
Infection Control | 1,195,000 | 1,071,000 | |||||||
Consolidated net sales | $ | 10,654,000 | $ | 9,956,000 | |||||
The following table presents the reconciliation of consolidated segment income to consolidated net income for the three months ended March 31, 2015 and 2014: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Building Supply | $ | 653,000 | $ | 750,000 | |||||
Disposable Protective Apparel | 331,000 | 240,000 | |||||||
Infection Control | 387,000 | 321,000 | |||||||
Total segment income | 1,371,000 | 1,311,000 | |||||||
Unallocated corporate overhead expenses | 1,195,000 | 1,147,000 | |||||||
Provision for income taxes | 28,000 | 86,000 | |||||||
Gain on sale of marketable securities and investment in common stock warrants | - | 191,000 | |||||||
Consolidated net income | $ | 148,000 | $ | 269,000 | |||||
The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of March 31, 2015 and December 31, 2014: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Building Supply | $ | 2,567,000 | $ | 2,613,000 | |||||
Disposable Protective Apparel | 434,000 | 450,000 | |||||||
Infection Control | 317,000 | 368,000 | |||||||
Total segment assets | 3,318,000 | 3,431,000 | |||||||
Unallocated corporate assets | 10,000 | 10,000 | |||||||
Total consolidated assets | $ | 3,328,000 | $ | 3,441,000 |
Note_11_Subsequent_Events
Note 11 - Subsequent Events | 3 Months Ended | |
Mar. 31, 2015 | ||
Notes to Financial Statements | ||
Subsequent Events [Text Block] | 11 | Subsequent Events |
The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of March 31, 2015 through the filing date of this Quarterly Report on Form 10-Q that would require accounting or disclosure and has concluded that there are none. |
Note_3_StockBased_Compensation1
Note 3 - Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted | ||||||||
Average | |||||||||
Exercise Price | |||||||||
Shares | Per Option | ||||||||
Options outstanding, December 31, 2014 | 580,000 | $ | 1.58 | ||||||
Granted to employees and non-employee directors | - | - | |||||||
Exercised | - | - | |||||||
Canceled/expired/forfeited | - | - | |||||||
Options outstanding, March 31, 2015 | 580,000 | 1.58 | |||||||
Options exercisable, March 31, 2015 | 500,000 | 1.59 |
Note_4_Investments_Tables
Note 4 - Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Cost basis | $ | 327,000 | $ | 327,000 | |||||
Gains previously recognized on warrants | 380,000 | 380,000 | |||||||
Gains included in accumulated other comprehensive income | 1,600,000 | 2,133,000 | |||||||
Fair value | $ | 2,307,000 | $ | 2,840,000 | |||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | For the Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning balance | $ | - | $ | 350,000 | |||||
Fair value change in common stock warrants | - | 30,000 | |||||||
Fair value of warrants exercised | - | (380,000 | ) | ||||||
Ending balance | $ | - | $ | - |
Note_6_Inventories_Tables
Note 6 - Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 7,424,000 | $ | 6,436,000 | |||||
Work in process | 5,299,000 | 4,834,000 | |||||||
Finished goods | 6,394,000 | 5,274,000 | |||||||
$ | 19,117,000 | $ | 16,544,000 |
Note_8_Accrued_Liabilities_Tab
Note 8 - Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Payroll expenses | $ | 277,000 | $ | 192,000 | |||||
Bonuses payable | 69,000 | 809,000 | |||||||
Uncertain tax position liability | 194,000 | 194,000 | |||||||
$ | 540,000 | $ | 1,195,000 |
Note_9_Basic_and_Diluted_Earni1
Note 9 - Basic and Diluted Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (numerator) | $ | 148,000 | $ | 269,000 | |||||
Shares (denominator): | |||||||||
Basic weighted average common shares outstanding | 18,299,933 | 18,859,834 | |||||||
Add: dilutive effect of common stock options | 199,639 | 303,216 | |||||||
Diluted weighted average common shares outstanding | 18,499,572 | 19,163,050 | |||||||
Earnings per common share: | |||||||||
Basic | $ | 0.01 | $ | 0.01 | |||||
Diluted | $ | 0.01 | $ | 0.01 |
Note_10_Activity_of_Business_S1
Note 10 - Activity of Business Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Building Supply | $ | 5,811,000 | $ | 5,521,000 | |||||
Disposable Protective Apparel | 3,648,000 | 3,364,000 | |||||||
Infection Control | 1,195,000 | 1,071,000 | |||||||
Consolidated net sales | $ | 10,654,000 | $ | 9,956,000 | |||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Building Supply | $ | 653,000 | $ | 750,000 | |||||
Disposable Protective Apparel | 331,000 | 240,000 | |||||||
Infection Control | 387,000 | 321,000 | |||||||
Total segment income | 1,371,000 | 1,311,000 | |||||||
Unallocated corporate overhead expenses | 1,195,000 | 1,147,000 | |||||||
Provision for income taxes | 28,000 | 86,000 | |||||||
Gain on sale of marketable securities and investment in common stock warrants | - | 191,000 | |||||||
Consolidated net income | $ | 148,000 | $ | 269,000 | |||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Building Supply | $ | 2,567,000 | $ | 2,613,000 | |||||
Disposable Protective Apparel | 434,000 | 450,000 | |||||||
Infection Control | 317,000 | 368,000 | |||||||
Total segment assets | 3,318,000 | 3,431,000 | |||||||
Unallocated corporate assets | 10,000 | 10,000 | |||||||
Total consolidated assets | $ | 3,328,000 | $ | 3,441,000 |
Note_3_StockBased_Compensation2
Note 3 - Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Rate | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 580,000 | 580,000 | 580,000 |
Allocated Share-based Compensation Expense | $6,000 | $8,000 | |
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 | $35,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 182 days |
Note_3_StockBased_Compensation3
Note 3 - Stock-Based Compensation - Stock Option Activity (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Options outstanding (in shares) | 580,000 | 580,000 |
Options outstanding (in dollars per share) | $1.58 | $1.58 |
Options outstanding (in shares) | 580,000 | 580,000 |
Options outstanding (in dollars per share) | $1.58 | $1.58 |
Options exercisable, March 31, 2015 (in shares) | 500,000 | |
Options exercisable, March 31, 2015 (in dollars per share) | $1.59 |
Note_4_Investments_Details_Tex
Note 4 - Investments (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Proceeds from Sale and Maturity of Marketable Securities | $0 | $440,000 | ||
Available-for-sale Securities, Current | 2,307,000 | 2,840,000 | [1] | |
Marketable Securities, Realized Gain (Loss) | 379,000 | |||
Marketable Securities Realized Gain (Loss), Net of Tax | 245,000 | |||
Marketable Securities, Unrealized Gain (Loss) | -328,000 | 442,000 | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | ($205,000) | $155,000 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 167,500 | |||
[1] | The condensed consolidated balance sheet as of December 31, 2014 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_4_Investments_Availablefo
Note 4 - Investments - Available-for-Sale Marketable Securities (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | ||
Available-for-sale Securities, Current | $2,307,000 | $2,840,000 | [1] |
Marketable Securities [Member] | |||
Cost basis | 327,000 | 327,000 | |
Gains previously recognized on warrants | 380,000 | 380,000 | |
Gains included in accumulated other comprehensive income | 1,600,000 | 2,133,000 | |
Available-for-sale Securities, Current | $2,307,000 | $2,840,000 | |
[1] | The condensed consolidated balance sheet as of December 31, 2014 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_4_Investments_Investment_
Note 4 - Investments - Investment in Common Stock Warrants (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2015 | |
Gain on investment in common stock warrants | ($30,000) | |
Ending balance | 2,307,000 | |
Warrant [Member] | ||
Beginning balance | 350,000 | |
Gain on investment in common stock warrants | 30,000 | |
Fair value of warrants exercised | -380,000 | |
Ending balance |
Note_6_Inventories_Details
Note 6 - Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
Raw materials | $7,424,000 | $6,436,000 | |
Work in process | 5,299,000 | 4,834,000 | |
Finished goods | 6,394,000 | 5,274,000 | |
$19,117,000 | $16,544,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2014 has been prepared using information from the audited consolidated balance sheet as of that date. |
Note_7_Equity_Investment_in_Un1
Note 7 - Equity Investment in Unconsolidated Affiliate (Details Textual) (USD $) | 3 Months Ended | 111 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2005 | |
Rate | ||||
Expense To Acquire Inventory | $3,058,000 | $4,258,000 | ||
Income (Loss) from Equity Method Investments | 98,000 | 110,000 | ||
Harmony [Member] | Alpha Pro Tech Engineered Products [Member] | ||||
Equity Method Investment, Ownership Percentage | 41.66% | |||
Equity Method Investment, Aggregate Cost | 508,000 | |||
Harmony [Member] | Maple Industries and Associates [Member] | ||||
Equity Method Investment, Ownership Percentage | 58.34% | |||
Equity Method Investment, Aggregate Cost | 708,000 | |||
Harmony [Member] | ||||
Equity Method Investment, Other than Temporary Impairment | 0 | |||
Equity Method Investment, Aggregate Cost | 1,450,000 | |||
Equity Method Investments | 3,106,000 | 3,106,000 | ||
Cumulative Equity In Income Of Unconsolidated Affiliate | 2,675,000 | 2,675,000 | ||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 942,000 | |||
Proceeds from Equity Method Investment, Dividends or Distributions | $77,000 |
Note_8_Accrued_Liabilities_Acc
Note 8 - Accrued Liabilities - Accrued Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
Payroll expenses | $277,000 | $192,000 | |
Bonuses payable | 69,000 | 809,000 | |
Uncertain tax position liability | 194,000 | 194,000 | |
$540,000 | $1,195,000 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2014 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 - Reconciliation of Net Income and Number of Shares Used in Computations of Basic and Diluted EPS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net income (numerator) | $148,000 | $269,000 |
Shares (denominator): | ||
Basic weighted average common shares outstanding (in shares) | 18,299,933 | 18,859,834 |
Add: dilutive effect of common stock options (in shares) | 199,639 | 303,216 |
Diluted weighted average common shares outstanding (in shares) | 18,499,572 | 19,163,050 |
Earnings per common share: | ||
Basic (in dollars per share) | $0.01 | $0.01 |
Diluted (in dollars per share) | $0.01 | $0.01 |
Note_10_Activity_of_Business_S2
Note 10 - Activity of Business Segments (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
Number of Operating Segments | 3 |
Note_10_Activity_of_Business_S3
Note 10 - Activity of Business Segments - Consolidated Net Sales (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Consolidated net sales | $10,654,000 | $9,956,000 |
Building Supply [Member] | Operating Segments [Member] | ||
Consolidated net sales | 5,811,000 | 5,521,000 |
Disposable Protective Apparel [Member] | Operating Segments [Member] | ||
Consolidated net sales | 3,648,000 | 3,364,000 |
Infection Control [Member] | Operating Segments [Member] | ||
Consolidated net sales | $1,195,000 | $1,071,000 |
Note_10_Activity_of_Business_S4
Note 10 - Activity of Business Segments - Reconciliation of Total Segment Income to Total Consolidated Net Income (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net income (numerator) | $148,000 | $269,000 |
Provision for income taxes | 28,000 | 86,000 |
Building Supply [Member] | Operating Segments [Member] | ||
Net income (numerator) | 653,000 | 750,000 |
Disposable Protective Apparel [Member] | Operating Segments [Member] | ||
Net income (numerator) | 331,000 | 240,000 |
Infection Control [Member] | Operating Segments [Member] | ||
Net income (numerator) | 387,000 | 321,000 |
Operating Segments [Member] | ||
Net income (numerator) | 1,371,000 | 1,311,000 |
Corporate, Non-Segment [Member] | ||
Net income (numerator) | 1,195,000 | 1,147,000 |
Common Stock [Member] | ||
Gain on sale of marketable securities and investment in common stock warrants | $191,000 |
Note_10_Activity_of_Business_S5
Note 10 - Activity of Business Segments - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Consolidated assets | $3,328,000 | $3,441,000 |
Building Supply [Member] | Operating Segments [Member] | ||
Consolidated assets | 2,567,000 | 2,613,000 |
Disposable Protective Apparel [Member] | Operating Segments [Member] | ||
Consolidated assets | 434,000 | 450,000 |
Infection Control [Member] | Operating Segments [Member] | ||
Consolidated assets | 317,000 | 368,000 |
Operating Segments [Member] | ||
Consolidated assets | 3,318,000 | 3,431,000 |
Corporate, Non-Segment [Member] | ||
Consolidated assets | $10,000 | $10,000 |