Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INTRICON CORP | |
Entity Central Index Key | 88,790 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 8,640,927 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 1,198 | $ 1,017 |
Available for sale securities | 45,042 | |
Accounts receivable, less allowance for doubtful accounts of $700 at September 30, 2018 and $332 at December 31, 2017 | 13,591 | 9,052 |
Inventories | 18,537 | 13,708 |
Contract assets | 6,324 | 2,979 |
Other current assets | 1,973 | 1,544 |
Total current assets | 86,665 | 28,300 |
Machinery and equipment | 39,321 | 40,124 |
Less: Accumulated depreciation | 27,953 | 32,949 |
Net machinery and equipment | 11,368 | 7,175 |
Goodwill | 10,808 | 10,808 |
Intangible assets, net | 2,624 | 2,740 |
Investment in partnerships | 1,920 | 1,616 |
Other assets, net | 3,628 | 3,835 |
Total assets | 117,013 | 54,474 |
Current liabilities: | ||
Current maturities of long-term debt | 96 | 2,040 |
Accounts payable | 15,030 | 10,423 |
Accrued salaries, wages and commissions | 3,558 | 3,113 |
Other accrued liabilities | 3,385 | 3,739 |
Total current liabilities | 22,069 | 19,315 |
Long-term debt, less current maturities | 95 | 9,321 |
Other postretirement benefit obligations | 421 | 455 |
Accrued pension liabilities | 771 | 772 |
Other long-term liabilities | 3,053 | 3,172 |
Total liabilities | 26,409 | 33,035 |
Commitments and contingencies (note 15) | ||
Shareholders' equity: | ||
Common stock, $1.00 par value per share; 20,000 shares authorized; 8,640 and 6,900 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 8,640 | 6,900 |
Additional paid-in capital | 84,509 | 21,581 |
Accumulated deficit | (1,377) | (6,056) |
Accumulated other comprehensive loss | (889) | (733) |
Total shareholders' equity | 90,883 | 21,692 |
Non-controlling interest | (279) | (253) |
Total equity | 90,604 | 21,439 |
Total liabilities and equity | $ 117,013 | $ 54,474 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Consolidated Condensed Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 700 | $ 332 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 8,640,000 | 6,900,000 |
Common stock, shares outstanding | 8,640,000 | 6,900,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Condensed Statements of Operations [Abstract] | ||||
Sales, net | $ 30,134 | $ 25,061 | $ 85,657 | $ 68,800 |
Cost of sales | 20,609 | 17,334 | 57,731 | 48,600 |
Gross profit | 9,525 | 7,727 | 27,926 | 20,200 |
Operating expenses: | ||||
Sales and marketing | 3,009 | 2,342 | 8,729 | 6,857 |
General and administrative | 3,232 | 2,698 | 9,434 | 7,961 |
Research and development | 1,251 | 1,047 | 3,693 | 3,312 |
Total operating expenses | 7,492 | 6,087 | 21,856 | 18,130 |
Operating income | 2,033 | 1,640 | 6,070 | 2,070 |
Interest expense, net | (48) | (177) | (453) | (548) |
Other expense | (179) | (337) | (580) | (328) |
Income from continuing operations before income taxes and discontinued operations | 1,806 | 1,126 | 5,037 | 1,194 |
Income tax expense (benefit) | (97) | 47 | 358 | 165 |
Income from continuing operations before discontinued operations | 1,903 | 1,079 | 4,679 | 1,029 |
Loss on sale of discontinued operations (Note 3) | (164) | |||
Loss from discontinued operations (Note 3) | (128) | |||
Net income | 1,903 | 1,079 | 4,679 | 737 |
Less: Loss allocated to non-controlling interest | (186) | (925) | ||
Net income attributable to IntriCon shareholders | $ 1,903 | $ 1,265 | $ 4,679 | $ 1,662 |
Basic income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ 0.24 | $ 0.18 | $ 0.65 | $ 0.29 |
Discontinued operations | (0.04) | |||
Net income per share: | 0.24 | 0.18 | 0.65 | 0.24 |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | 0.22 | 0.17 | 0.56 | 0.27 |
Discontinued operations | (0.04) | |||
Net income per share: | $ 0.22 | $ 0.17 | $ 0.56 | $ 0.23 |
Average shares outstanding: | ||||
Basic | 7,825 | 6,853 | 7,249 | 6,836 |
Diluted | 8,822 | 7,251 | 8,360 | 7,179 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Condensed Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,903 | $ 1,079 | $ 4,679 | $ 737 |
Interest rate swap, net of taxes of $0 | (4) | 3 | (1) | 18 |
Pension and postretirement obligations, net of taxes of $0 | 5 | 5 | 15 | 15 |
Foreign currency translation adjustment, net of taxes of $0 | 8 | 116 | (171) | 241 |
Comprehensive income | $ 1,912 | $ 1,203 | $ 4,522 | $ 1,011 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements Of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Condensed Statements of Comprehensive Income [Abstract] | ||||
Interest rate swap, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Pension and postretirement obligations, tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 4,679 | $ 737 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,146 | 1,659 |
Stock-based compensation | 1,025 | 634 |
Loss on sale of discontinued operations | 164 | |
Change in allowance for doubtful accounts | 368 | 65 |
Equity in loss of partnerships | 300 | 281 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,915) | 249 |
Inventories | (4,838) | (1,658) |
Contract assets | (3,345) | (1,335) |
Other assets | (571) | (658) |
Accounts payable | 2,520 | 1,712 |
Accrued expenses | 65 | 1,228 |
Other liabilities | (146) | 31 |
Net cash provided by (used in) operating activities | (2,712) | 3,109 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (3,496) | (984) |
Purchase of investment securities | (48,842) | |
Sale of investment securities | 3,800 | |
Investment in partnerships | (843) | (730) |
Net cash used in investing activities | (49,381) | (1,714) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 14,195 | 10,906 |
Repayments of long-term debt | (25,539) | (13,110) |
Proceeds from issuance of common stock, net of costs | 88,967 | |
Payments for repurchase of common stock and related costs | (25,907) | |
Proceeds from employee stock purchases and exercise of stock options | 584 | 164 |
Net cash provided by (used in) financing activities | 52,300 | (2,040) |
Effect of exchange rate changes on cash | (26) | 364 |
Net increase (decrease) in cash | 181 | (281) |
Cash, cash equivalents and restricted cash, beginning of period | 1,017 | 1,262 |
Cash, cash equivalents and restricted cash, end of period | 1,198 | $ 981 |
Noncash investing and financing: | ||
Investment in partnerships through liability incurred | 86 | |
Acquisition of property, plant and equipment in accounts payable | $ 2,098 |
General
General | 9 Months Ended |
Sep. 30, 2018 | |
General [Abstract] | |
General | 1. General In the opinion of management, the accompanying consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly IntriCon Corporation's (“IntriCon” or the “Company”) consolidated financial position as of September 30, 2018 and December 31, 2017, the consolidated results of its operations for the three and nine months ended September 30, 2018 and 2017 and cash flows for the nine months ended September 30, 2018 and 2017. Results of operations for the interim periods are not necessarily indicative of the results of operations expected for the full year or any other interim period. In December 2016, the Company’s board of directors approved plans to discontinue its cardiac diagnostic monitoring business. The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC. For all periods presented, the Company classified this business as discontinued operations, and, accordingly, has reclassified historical financial data presented herein. The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. In December 2017, the Company acquired the remaining 80 -percent stake in Hearing Help Express, Inc. (referred to as “Hearing Help Express” or “HHE”), a direct-to-consumer mail order hearing aid provider, for $650 in cash, repayment of $1,833 in debt to HHE’s 80% holder and an earn-out. The results of HHE have been consolidated into the Company’s financial statements since October 31, 2016. Prior to the acquisition of 100% ownership in December 2017, the Company allocated income and losses to the noncontrolling interest based on ownership percentage. In February 2018, the Company closed on an additional 33% ownership interest in Soundperience, bringing its total ownership to 49% and its total investment to 1,500 Euros consisting of an equity investment and license agreement. Soundperience has designed self-fitting hearing aid technology. The Company does not anticipate the Soundperience business will have a notable financial impact on operating results, but rather will provide the Company with exclusive access in the United States to critical software technology. Soundperience’s self-fitting hearing aid technology is being used in the German market today, most notably through Signison, the Company’s joint venture with the majority owner of Soundperience. Soundperience and Signison are accounted for in the Company’s financial statements using the equity method. The Company has evaluated subsequent events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the consolidated financial statements. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In July 2018, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2018-11, "Leases (Topic 842): Targeted Improvements." The amendments of this ASU provide another transition method for the adoption of the new leases standard. Currently, entities are required to adopt the new leases standard using a modified retrospective transition method. The amendments of this ASU provide another transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Additionally, this ASU also provides lessors a practical expedient to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. The amendments related to separating components of a contract affect the amendments in ASU 2016-02, which are not yet effective but can be early adopted. For entities that have not adopted Topic 842 before the issuance of this ASU, the effective date and transition requirements for the amendments in this ASU related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures In January 2018, the FASB issued ASU No. 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842." This ASU provides an optional transition practical expedient to not evaluate under Topic 842, existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The amendments in this guidance affect the amendments in ASU 2016-02, which are not yet effective but may be early adopted. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. An entity that early adopted Topic 842 should apply the amendments in this ASU upon issuance. Management does not intend to early adopt this guidance. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In March 2017, the FASB issued Accounting Standards Update ASU 2017-07, Retirement Benefits – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The rules related to the timing of when costs are recognized or how they are measured have not changed. This amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component will be eligible for capitalization in inventory and other assets. This guidance became effective January 1, 2018. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has commenced its implementation of the standard and has established a timeline it believes is adequate for a timely adoption of the standard. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures, but anticipates it will be required to record additional lease liabilities and corresponding rights to use assets. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 3. Discontinued Operations The following table shows the results of the cardiac diagnostic monitoring discontinued operations: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Sales, net $ - $ - $ - $ 140 Operating costs and expenses - - - (268) Net loss from discontinued operations $ - $ - $ - $ (128) The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC for a future revenue earn-out that was valued by the Company at $0 . The Company has no t earned any earn-out revenue through September 30, 2018. The Company recorded a loss on the sale of $164 . The net loss was computed as follows: Accounts receivable, net $ 179 Accrued liabilities (15) Net assets sold 164 Fair value of consideration received - Loss on sale of discontinued operations, net of income taxes $ 164 |
Changes In Accounting Policies
Changes In Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Changes In Accounting Policies [Abstract] | |
Changes In Accounting Policies | 4. Changes in Accounting Policies The Company’s significant accounting policies are detailed in “Note 1: Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In May 2014, the FASB issued ASU 2014-09 “Topic 606. Revenue from Contracts with Customers” (Topic 606). Topic 606 supersedes the revenue recognition requirements previously set forth in the Accounting Standards Codification (ASC) Topic 605 “Revenue Recognition,” and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted Topic 606 with a date of initial application of January 1, 2018. The Company applied Topic 606 retrospectively using the practical expedient in ASC 606-10-65-1(f)(3). The Company notes that all previously reported historical amounts are adjusted for the impact of ASC 606. Changes to the Company’s significant accounting policies as a result of adopting Topic 606 are discussed below: Revenue recognition - Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including noncash consideration, consideration paid or payable to customers and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer, as further described below under “Performance obligations”. Individual promised goods and services in a contract are considered a performance obligation and accounted for separately if the individual good or service is distinct, i.e., the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated stand-alone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs under ASC 340-40 or other applicable guidance are met. Cost of revenues consist primarily of direct labor, manufacturing overhead, materials and components. The Company excludes from revenue taxes collected from a customer that are assessed by a governmental authority and imposed on and concurrent with a specific revenue-producing transaction. The Company includes shipping and handling fees in sales. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet as further described below under “Receivables, net”, “Contract assets” and “Contract liabilities”. When more than one party is involved in providing goods or services to a customer, an entity determines whether it is a principal or an agent in these transactions by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis if it controls a promised good or service before transferring that good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. Performance obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation in proportion to the standalone selling price for each and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s various performance obligations and the timing or method of revenue recognition in each of the Company’s markets are discussed below: Medical biotelemetry market - Customer orders from the medical biotelemetry market consist of a specified number of assembled and customized parts that the customer further integrates into their production process to produce market ready products. Customer orders do not include additional follow-on goods or services. With the exception of prompt payment discounts, the transaction price for medical biotelemetry market products is the invoiced amount, as variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. All of the Company’s products manufactured for the medical biotelemetry market are designed to each customer’s specifications, do not have an alternative use and cannot be sold or redirected by the Company to others. The Company has an enforceable right to payment for any finished or in-process units, including a reasonable margin, if the customer terminates the contract for reasons other than the Company’s failure to perform as promised. Control of these units is deemed to transfer to the customer over time during the manufacturing process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Each order is for a series of distinct units that comprise a single performance obligation. Consequently, the transaction price is recognized as revenue over time based on actual costs incurred in the manufacturing process to date relative to total expected costs to produce all ordered units. Medical biotelemetry market products are invoiced when shipped and paid within normal commercial terms. The Company records a contract asset for revenue recognized over time in the production process for customized products that have not been shipped or invoiced to the customer. Hearing health market - Customer orders from the hearing health market consist of hearing aid devices and related accessories. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. With the exception of prompt payment discounts, the transaction price for the hearing health markets products is the invoiced amount, as variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Nearly all of the Company’s products manufactured for the hearing health market could be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery, and therefore have an alternative use to the Company. Generally, revenue is recognized upon the transfer of control of the products which is based on shipment terms; however, in certain cases the amount of shipment is adjusted for expected future returns and related consideration received. Professional audio market - The Company sells body-worn audio devices with application in the aviation, fire, law enforcement, safety and military markets as well as for performers and production staff in the music and stage performance markets. Each unit on a customer’s purchase order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit is separately identifiable from the others because one does not significantly affect, modify or customize another. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting the transaction price are not present. Invoiced amounts are deemed to approximate standalone selling price, such that a relative standalone selling price allocation between performance obligations is not required. The products manufactured for the professional audio market could be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery and therefore have an alternative use to the Company. Transfer of control of the goods, and revenue recognition, occurs at the point in time of shipment or delivery of the products to the customer depending on the applicable shipping terms. Professional audio market products are billed when shipped and paid within normal commercial terms. Hearing health direct-to-consumer (DTC) market - The hearing health DTC business distributes hearing aids and related accessories to the end consumer and is the Company’s only business market that generates revenue from sales to the end consumer. The Company also sells a limited number of service plans for the hearing aids. Each product or service is a distinct performance obligation as each is independently useful either on its own or together with other products procured from the Company or other vendors and each product or service is separately identifiable from the others because one does not significantly affect, modify or customize another. Invoiced amounts are deemed to approximate standalone selling price, therefore a relative standalone selling price allocation between performance obligations is not required. The hearing health DTC business offers a 60 -day trial period to the end consumer for hearing aids, during which customers can return the hearing aids for a full refund or exchange for a different hearing aid. The Company invoices for the hearing aids and recognizes revenue only after completion of the 60-day trial period, when the customer’s commitment to the arrangement is deemed to exist and an enforceable right to payment is established. The transaction price for hearing aid accessories and service plans is the invoiced amount, as variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Hearing aid accessories are billed and revenue is recognized upon shipment to the customer. Invoices are paid within normal commercial terms. Annual service plans are billed along with the hearing aid at the end of the 60-day trial period or upon renewal of the service plan, and paid within normal commercial terms. As the customer consumes the benefits of the service plan relatively evenly over the plan term, revenue for service plans is recognized on a straight-line basis commencing at the end of the trial period. Receivables, net – Excluding the hearing health direct-to-consumer market, amounts recorded in receivables, net, on the consolidated balance sheet include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. An allowance for doubtful accounts is maintained to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. For the hearing health direct-to-consumer market, receivables, net, include amounts billed and currently due from customers and amounts to become due from customers on trial programs. The amounts due are stated at their net estimated realizable value. An allowance for doubtful accounts is maintained to provide for the estimated amount of receivables that will not be collected. Contract Assets - Contract assets primarily include unbilled amounts recognized as revenue for customized products manufactured for the medical biotelemetry market. The customized goods have no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company begins revenue recognition when these goods enter the manufacturing process and continues based on a measure of progress toward completion using a cost-to-cost input method that considers labor and overhead costs incurred and materials used to date in the manufacturing process relative to total expected production costs. Given the relatively short duration of the production process, contract assets are classified as current. Contract assets are reclassified to accounts receivable upon shipment of and invoicing for the products, at which point the right to consideration becomes unconditional. Sales Commissions - Sales commissions paid to sales representatives are eligible for capitalization as they are incremental costs that would not have been incurred without entering into a specific sales arrangement and are recoverable through the expected margin on the transaction. The Company has elected to apply the practical expedient provided by ASC 340-40-25-4 and recognize the incremental costs of obtaining contracts as an expense when incurred, as the amortization period of the assets that would have otherwise been recognized is one year or less. These costs are included in sales and marketing expenses on the consolidated statements of operations. Product Warranty - The Company offers warranties on various products and services. These warranties are assurance type warranties not sold on a standalone basis, and therefore are not considered distinct performance obligations. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. |
Significant Changes Due To Topi
Significant Changes Due To Topic 606 | 9 Months Ended |
Sep. 30, 2018 | |
Significant Changes Due To Topic 606 [Abstract] | |
Significant Changes Due To Topic 606 | 5. Significant Changes Due to Topic 606 Sales of Customized Medical Biotelemetry Products - The primary factor impacting the timing of the Company’s reported net income (loss) in the financial statements as a result of the adoption of Topic 606 is the acceleration of revenue and associated cost of sales recognized from the sale of customized medical biotelemetry products. For sales of these products, the Company previously recognized revenue at a point in time when the products were completed and shipped to the customer. Under Topic 606, if control of the products is transferred to the customer over the manufacturing process and the criteria for over time revenue recognition are otherwise met, revenue is recognized as products are manufactured utilizing an appropriate measure of progress toward satisfaction of the performance obligation. The Company’s contracts with customers for the production of customized medical biotelemetry products meet the criteria for over time revenue recognition; therefore, the Company utilizes an input method based on actual costs incurred in the manufacturing process to date relative to total expected production costs as a measure of progress toward transfer of control of the products to the customer and recognizes revenue on that basis. Amounts recognized as revenue but not yet shipped or billed to the customer are recorded as contract assets. See Note 4 for further discussion. Principal vs. Agent Role in Sales under Supply Arrangement - The Company has determined that the nature of its promise to a third-party supplier is a performance obligation to provide the integrated hearing aid products to its customers and that the associated sales contracts meet the control criteria necessary to qualify the Company as the principal in the transactions. As a result, gross reporting of revenues for sales under the supply arrangement is appropriate under Topic 606 and the profit sharing amount due to the third party is reported as cost of sales. Impacts on financial statements Previously reported amounts for sales, cost of sales, contract assets and contract liabilities have been retrospectively adjusted to provide amounts comparable to the reporting under Topic 606. The following tables summarize the effects of adopting this accounting standard on the Company’s unaudited Consolidated Financial Statements. Consolidated Statement of Operations: Three Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended September 30, 2017, as adjusted Nine Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Nine Months Ended September 30, 2017, as adjusted Sales, net $ 24,034 $ 1,027 $ 25,061 $ 66,083 $ 2,717 $ 68,800 Cost of sales 16,469 865 17,334 46,261 2,339 48,600 Gross profit 7,565 162 7,727 19,822 378 20,200 Operating expenses: Sales and marketing 2,342 - 2,342 6,857 - 6,857 General and administrative 2,698 - 2,698 7,961 - 7,961 Research and development 1,047 - 1,047 3,312 - 3,312 Total operating expenses 6,087 - 6,087 18,130 - 18,130 Operating income 1,478 162 1,640 1,692 378 2,070 Interest expense (177) - (177) (548) - (548) Other expense (337) - (337) (328) - (328) Income from continuing operations before income taxes and discontinued operations 964 162 1,126 816 378 1,194 Income tax expense 47 - 47 165 - 165 Income from continuing operations before discontinued operations 917 162 1,079 651 378 1,029 Loss on sale of discontinued operations (Note 3) - - - (164) - (164) Loss from discontinued operations (Note 3) - - - (128) - (128) Net income 917 162 1,079 359 378 737 Less: Loss allocated to non-controlling interest (186) - (186) (925) - (925) Net income attributable to IntriCon shareholders $ 1,103 $ 162 $ 1,265 $ 1,284 $ 378 $ 1,662 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.16 $ 0.02 $ 0.18 $ 0.23 $ 0.06 $ 0.29 Discontinued operations - - $ - (0.04) - (0.04) Net Income per share $ 0.16 $ 0.02 $ 0.18 $ 0.19 $ 0.06 $ 0.24 Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.15 $ 0.02 $ 0.17 $ 0.22 $ 0.05 $ 0.27 Discontinued operations - - - (0.04) - (0.04) Net Income per share $ 0.15 $ 0.02 $ 0.17 $ 0.18 $ 0.05 $ 0.23 Average shares outstanding: Basic 6,853 6,853 6,853 6,836 6,836 6,836 Diluted 7,251 7,251 7,251 7,179 7,179 7,179 Consolidated Statement of Comprehensive Income: Three Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended September 30, 2017, as adjusted Net income $ 917 $ 162 $ 1,079 Nine Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Nine Months Ended September 30, 2017, as adjusted Net income $ 359 $ 378 $ 737 Consolidated Statement of Cash Flows: Nine Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Nine Months Ended September 30, 2017, as adjusted Net income $ 359 $ 378 $ 737 Inventories (2,615) 957 (1,658) Contract assets - (1,335) (1,335) Prior Year Consolidated Balance Sheet: December 31, 2017, as reported Effect of Adoption of ASC 606 December 31, 2017, as adjusted Inventories $ 15,397 $ (1,689) $ 13,708 Contract assets - 2,979 2,979 Other accrued liabilities 3,224 515 3,739 Accumulated deficit (6,831) 775 (6,056) In addition, the cumulative impact to the Company’s retained earnings at January 1, 2017 was a decrease to the accumulated deficit of $518 . Transaction price allocated to remaining performance obligations - The Company’s remaining performance obligations as of September 30, 2018 primarily include uncompleted production of customized products for which control transfers to the customer over time, certain uncompleted product sales for orders received and future obligations under service plan arrangements recognized over time. The Company has elected to apply the practical expedient provided in ASC 606-10-50-14 and not disclose information about the amount of transaction price allocated to these remaining performance obligations as they all have original expected durations of one year or less. The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers. September 30, 2018 December 31, 2017, as adjusted Receivables, included in accounts receivable, less allowance for doubtful account $ 13,591 $ 9,052 Contract assets 6,324 2,979 Contract liabilities, included in other current liabilities 416 312 Significant changes in contract assets and contract liabilities during the period are as follows: For the nine months ended September 30, 2018 Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of beginning contract liabilities to revenue, as a result of performance obligations satisfied $ - $ 312 Cash received in advance and not recognized as revenue - (416) Reclassification of beginning contract assets to accounts receivable, as a result of right to consideration becoming unconditional - - Contract assets recognized, net of reclassification to accounts receivable 3,345 Cumulative catch-up from a change in the timeframe for recognition of revenue arising from a contract liability - - Increase as a result of cumulative catch-up adjustment arising from changes in the estimate of costs incurred relative to total amounts projected, excluding amounts transferred to receivables during the period. - Net Change $ 3,345 $ (104) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 6. Segment Reporting The Company currently operates in two reportable segments: body-worn devices and hearing health direct-to-consumer. The nature of distribution and services has been deemed separately identifiable. Therefore, segment reporting has been applied. Income (loss) from operations is total revenues less cost of sales and operating expenses. Identifiable assets by industry segment include assets directly identifiable with those operations. The accounting policies applied to determine segment information are the same as those described in the summary of significant accounting policies described in and incorporated by reference from “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 1 to the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company evaluates the performance of each segment based on income and loss from continuing operations before income taxes. The following table summarizes data by industry segment: At and for the Three Months Ended September 30, 2018 Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 28,644 $ 1,490 $ 30,134 Income (loss) from continuing operations 2,942 (1,039) 1,903 Identifiable assets (excluding goodwill) 100,051 6,137 106,188 Goodwill 9,551 1,257 10,808 Depreciation and amortization 659 55 714 Capital expenditures 1,885 3 1,888 At and for the Nine Months Ended September 30, 2018 Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 80,325 $ 5,332 $ 85,657 Income (loss) from continuing operations 6,671 (1,992) 4,679 Identifiable assets (excluding goodwill) 100,051 6,137 106,188 Goodwill 9,551 1,257 10,808 Depreciation and amortization 1,991 155 2,146 Capital expenditures 3,426 70 3,496 At and for the Three Months Ended September 30, 2017 (as adjusted) Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 23,298 $ 1,763 $ 25,061 Income (loss) from continuing operations 1,283 (204) 1,079 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 506 48 554 Capital expenditures 350 16 366 At and for the Nine Months Ended September 30, 2017 (as adjusted) Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 64,212 $ 4,588 $ 68,800 Income (loss) from continuing operations 2,114 (1,085) 1,029 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 1,500 159 1,659 Capital expenditures 836 148 984 |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | 7. Geographic Information The geographical distribution of long-lived assets to geographical areas consisted of the following at: September 30, December 31, 2018 2017 United States $ 9,826 $ 5,407 Singapore 1,081 1,254 Other – primarily United Kingdom and Indonesia 461 514 Consolidated $ 11,368 $ 7,175 Long-lived assets consist of property and equipment. Excluded from long-lived assets are investments in partnerships, patents, license agreements and goodwill. The Company capitalizes long-lived assets pertaining to the production of specialized parts. These assets are periodically reviewed to ensure the net realizable value from the estimated future production based on forecasted cash flows exceeds the carrying value of the assets. The geographical distribution of net sales to geographical areas for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 (as adjusted) September 30, 2018 September 30, 2017 (as adjusted) United States $ 25,157 $ 20,632 $ 70,871 $ 55,521 Europe 2,068 2,317 6,230 7,102 Asia 2,472 1,740 7,639 5,541 All other countries 437 372 917 636 Consolidated $ 30,134 $ 25,061 $ 85,657 $ 68,800 Geographic net sales are allocated based on the location of the customer. For the three and nine months ended September 30, 2018, one customer accounted for 55% and 56% , respectively, of the Company’s consolidated net sales. For the three and nine months ended September 30, 2017, one customer accounted for 51% and 48% , respectively, of the Company’s consolidated net sales. At September 30, 2018, two customers combined accounted for 51% of the Company’s consolidated accounts receivable. At December 31, 2017, two customers combined accounted for 32% of the Company’s consolidated accounts receivable. At September 30, 2018, one customer accounted for 77% of the Company’s consolidated contract assets. At December 31, 2017, one customer accounted for 62% of the Company’s consolidated contract assets. |
Investment In Partnerships
Investment In Partnerships | 9 Months Ended |
Sep. 30, 2018 | |
Investment In Partnerships [Abstract] | |
Investment In Partnerships | 8. Investment in Partnerships Investment in partnerships consisted of the following: September 30, December 31, 2018 2017 Investment in Soundperience $ 1,037 $ 842 Investment in Signison 662 498 Other 221 276 Total $ 1,920 $ 1,616 As of September 30, 2018, the Company held a 49% ownership interest in Soundperience. In February 2018, the Company acquired an additional 33% stake in Soundperience. Soundperience is accounted for in the Company’s financial statements using the equity method as of September 30, 2018. The Company’s investment in Soundperience exceeded the underlying interest in net equity of the Company. As a result, the Company assigned the excess investment to related identifiable intangible assets and includes the amortization of those intangibles within the equity in the income (losses) of Soundperience, which are included in other income (expenses) in the consolidated statements of operations. Soundperience’s income (loss) in earnings is immaterial for the periods presented. The Company has a 50% stake in Signison as of September 30, 2018. Signison is accounted for in the Company’s financial statements using the equity method. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments Securities [Abstract] | |
Investment Securities | 9. Investment Securities The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and non-recurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows: Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 - Inputs are unobservable for the asset or liability. Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value as of Fair Value Measurements Using Inputs Considered as September 30, 2018 Level 1 Level 2 Level 3 Available for sale securities $ 45,042 $ 45,042 $ - $ - Fair Value as of Fair Value Measurements Using Inputs Considered as September 30, 2017 Level 1 Level 2 Level 3 Available for sale securities $ - $ - $ - $ - Financial assets that are classified as Level 1 securities include cash equivalents and available for sale securities. These are valued using quoted market prices in an active market. All of the available for sale securities are invested in a money market account as of September 30, 2018. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended September 3 0 , 201 8 and September 3 0, 201 7 . When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventories [Abstract] | |
Inventories | 10. Inventories Inventories consisted of the following at: Raw materials Work-in process Finished products and components Total September 30, 2018 Domestic $ 10,158 $ 1,924 $ 1,765 $ 13,847 Foreign 2,674 1,169 847 4,690 Total $ 12,832 $ 3,093 $ 2,612 $ 18,537 December 31, 2017 (as adjusted) Domestic $ 6,924 $ 1,791 $ 1,366 $ 10,081 Foreign 2,258 514 855 3,627 Total $ 9,182 $ 2,305 $ 2,221 $ 13,708 |
Short And Long-Term Debt
Short And Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Short And Long-Term Debt [Abstract] | |
Short And Long-Term Debt | 11. Short and Long-Term Debt Short and long-term debt is summarized as follows: September 30, December 31, 2018 2017 Domestic Asset-Based Revolving Credit Facility $ - $ 4,000 Foreign Overdraft and Letter of Credit Facility 272 1,250 Domestic Term-Loan - 6,250 Unamortized Finance Costs (81) (139) Total Debt 191 11,361 Less: Current maturities (96) (2,040) Total Long-Term Debt $ 95 $ 9,321 During the third quarter, we utilized proceeds from our equity offering (see Note 13) and paid down all of our domestic debt and most of our foreign debt. We plan on paying off the remaining foreign debt during the fourth quarter of 2018. The Company was in compliance with the financial covenants under the facility as of September 30, 2018. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes [Abstract] | |
Income taxes | 12. Income Taxes Income tax expense (benefit) for the three and nine months ended September 30, 2018 was $ (97) and $358, respectively , compared to $ 47 and $165, respectively , for the same periods in 2017. The expense was primarily due to domestic state income tax along with some foreign taxes for those periods in 2018 and 2017. The Company has net operating loss carryforwards for U.S. federal income tax purposes and, consequently, minimal federal benefit or expense from the domestic operations was recognized as the deferred tax asset has a full valuation allowance. The following was the income (loss) before income taxes for each jurisdiction in which the Company has operations for the three and nine months ended September 30, 2018 and 2017. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 United States $ 1,575 $ 1,170 $ 4,875 $ 1,427 Singapore 378 245 724 168 Indonesia 18 20 60 54 United Kingdom (299) (184) (869) (595) Germany 134 (125) 247 140 Income before income taxes $ 1,806 $ 1,126 $ 5,037 $ 1,194 |
Shareholders' Equity And Stock-
Shareholders' Equity And Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Shareholders' Equity And Stock-Based Compensation | 13. Shareholders’ Equity and Stock-based Compensation The Company has a 2006 Equity Incentive Plan and a 2015 Equity Incentive Plan. The 2015 Equity Incentive Plan replaced the 2006 Equity Incentive Plan and new grants may not be made under the 2006 Plan. Under the 2015 Equity Incentive Plan, the Company may grant stock options, stock awards, stock appreciation rights, restricted stock units (“RSUs”) and other equity-based awards. Under all awards, the terms are fixed on the grant date. The Company granted 0 and 98 RSUs for the three and nine months ended September 30, 2018. The closing price of the Company’s common stock on the date of grant was $0 and $20.61 , respectively, for the RSUs granted for the three and nine months ended September 30, 2018. The RSUs vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant at which time common stock is issued with respect to vested units. The Company also has granted stock options under the plans. Options granted under the plans generally vest in equal, annual installments over a three -year period beginning on the first anniversary of the date of grant and have a maximum term of 10 years. Stock option activity during the nine months ended September 30, 2018 was as follows: Outstanding Awards Weighted-average Aggregate Stock Options RSUs Total Exercise Price (a) Intrinsic Value Outstanding at December 31, 2017 1,453 - 1,453 $ 5.95 Forfeited, cancelled or expired (18) - (18) 7.93 Granted - 98 98 - Exercised (578) - (578) 5.69 Outstanding at September 30, 2018 857 98 955 $ 5.56 $ 48,377 Exercisable at September 30, 2018 603 - 603 $ 5.76 $ 30,438 Available for future grant at December 31, 2017 251 Available for future grant at September 30, 2018 249 (a) The weighted average exercise price calculation does not include outstanding RSUs The number of shares available for future grants at September 30, 2018 does not include a total of up to 455 shares subject to options outstanding under the 2006 Equity Incentive Plan which will become available for grant under the 2015 Equity Incentive Plan in the event of the expiration, cancellation or surrender of such options. The Company reco rded $358 and $1,025 of non-cash stock compensation expense for the three and nine months ended September 30, 2018, respectively. The Company recorded $209 and $634 of non-cash stock compensation expense for the three and nine months ended September 30, 2017, respectively. As of September 30, 2018, there was $2,295 of total unrecognized compensation costs related to non-vested stock option and RSU awards that are expected to be recognized over a weighted-average period of 2.02 years. The total intrinsic value of options exercised during the nine months ended September 30, 2018 was 25,060 . The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, through September 30, 2018, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 1 and 5 shares purchased under the plan for the three and nine months ended September 30, 2018, respectively, and 3 and 10 shares purchased for the three and nine months ended September 30, 2017, respectively. On August 20, 2018, the Company completed a public offering and sale of 1,725 shares of common stock at a price to the public of $55 per share less an underwriting discount of $3.30 per share. The net proceeds from this offering, after deducting underwriting discounts and offering expenses, totaled approximately $88,967 and wer e used to repay debt, fund capital expenditures, to repurchase and retire 500 shares of common stock owned by directors and officers and for working capital and other general corporate purposes. |
Income Per Share
Income Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Income Per Share [Abstract] | |
Income Per Share | 14. Income Per Share The following table presents a reconciliation between basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 (as adjusted) September 30, 2018 September 30, 2017 (as adjusted) Numerator: Income from continuing operations before discontinued operations $ 1,903 $ 1,079 $ 4,679 $ 1,029 Loss on sale of discontinued operations - - - (164) Loss from discontinued operations, net of income taxes - - - (128) Net income 1,903 1,079 4,679 737 Less: loss allocated to non-controlling interest - (186) - (925) Net income attributable to shareholders $ 1,903 $ 1,265 $ 4,679 $ 1,662 Denominator: Basic – weighted shares outstanding 7,825 6,853 7,249 6,836 Weighted shares assumed upon exercise of stock options 997 398 1,111 343 Diluted – weighted shares outstanding 8,822 7,251 8,360 7,179 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.24 $ 0.18 $ 0.65 $ 0.29 Discontinued operations - - - (0.04) Net income per share: $ 0.24 $ 0.18 $ 0.65 $ 0.24 Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.22 $ 0.17 $ 0.56 0.27 Discontinued operations - - - (0.04) Net income per share: $ 0.22 $ 0.17 $ 0.56 $ 0.23 The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option and RSU securities granted. Earnings per common share was based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted earnings per share. Individual components of basic and diluted income (loss) per share may not sum to the total income (loss) per share due to rounding. No options were excluded from the dilutive calculation for the three and nine months ended September 30, 2018 and September 30, 2017. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2018 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 15. Legal Proceedings The Company is a defendant along with a number of other parties in lawsuits alleging that plaintiffs have or may have contracted asbestos-related diseases as a result of exposure to asbestos products or equipment containing asbestos sold by one or more named defendants. These lawsuits relate to the discontinued heat technologies segment which was sold in March 2005. Due to the non-informative nature of the complaints, the Company does not know whether any of the complaints state valid claims against the Company. Certain insurance carriers have informed the Company that the primary policies for the period August 1, 1970-1978 have been exhausted and that the carriers will no longer provide defense and insurance coverage under those policies. However, the Company has other primary and excess insurance policies that the Company believes afford coverage for later years. Some of these other primary insurers have accepted defense and insurance coverage for these suits, and some of them have either ignored the Company’s tender of defense of these cases, or have denied coverage, or have accepted the tenders but asserted a reservation of rights and/or advised the Company that they need to investigate further. Because settlement payments are applied to all years a litigant was deemed to have been exposed to asbestos, the Company believes that it will have funds available for defense and insurance coverage under the non-exhausted primary and excess insurance policies. However, unlike the older policies, the more recent policies have deductible amounts for defense and settlements costs that the Company will be required to pay; accordingly, the Company expects that its litigation costs will increase in the future. Further, many of the policies covering later years (approximately 1984 and thereafter) have exclusions for any asbestos products or operations, and thus do not provide insurance coverage for asbestos-related lawsuits. The Company does not believe that the asserted exhaustion of some of the primary insurance coverage for the 1970-1978 period will have a material adverse effect on its financial condition, liquidity, or results of operations. Management believes that the number of insurance carriers involved in the defense of the suits, and the significant number of policy years and policy limits under which these insurance carriers are insuring the Company, make the ultimate disposition of these lawsuits not material to the Company's consolidated financial position or results of operations. The Company’s former French subsidiary, Selas SAS, filed for insolvency in France. The Company may be subject to additional litigation or liabilities as a result of the French insolvency proceeding, including liabilities under guarantees aggregating approximately $453 . The Company is also involved in other lawsuits arising in the normal course of business. While it is not possible to predict with certainty the outcome of these matters, management is of the opinion that the disposition of these lawsuits and claims will not materially affect our consolidated financial position, liquidity or results of operations. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 16. Related-Party Transactions The Company uses the law firm of Blank Rome LLP for legal services. A partner of that firm is the son-in-law of the Chairman of the Company’s Board of Directors. For the three and nine months ended September 30, 2018, the Company paid that firm approximately $238 and $413 , respectively , for legal services and costs. For the three and nine months ended September 30, 2017, the Company paid that firm approximately $29 and $94 , respectively , for legal services and costs. The Chairman of our Board of Directors is considered independent under applicable Nasdaq and Securities and Exchange Commission rules because (i) no payments were made to the Chairman or the partner directly in exchange for the services provided by the law firm and (ii) the amounts paid to the law firm did not exceed the thresholds contained in the Nasdaq standards. Furthermore, the aforementioned partner does not provide any legal services to the Company and is not involved in billing matters. |
Revenue By Market
Revenue By Market | 9 Months Ended |
Sep. 30, 2018 | |
Revenue By Market [Abstract] | |
Revenue By Market | 17. Revenue by Market The following tables set forth, for the periods indicated, net revenue by market: Timing of revenue recognition for the three months ended September 30, 2018: Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 19,356 $ 19,356 Hearing Health 7,284 - 7,284 Professional Audio Communications 2,004 - 2,004 Hearing Health DTEC Segment: Hearing Health DTEC 1,490 - 1,490 Total Revenue $ 10,778 $ 19,356 $ 30,134 Timing of revenue recognition for the nine months ended September 30, 2018: Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 55,487 $ 55,487 Hearing Health 19,484 - 19,484 Professional Audio Communications 5,353 - 5,353 Hearing Health DTEC Segment: Hearing Health DTEC 5,333 - 5,333 Total Revenue $ 30,170 $ 55,487 $ 85,657 Timing of revenue recognition for the three months ended September 30, 2017 (as adjusted): Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 15,468 $ 15,468 Hearing Health 6,215 - 6,215 Professional Audio Communications 1,615 - 1,615 Hearing Health DTEC Segment: Hearing Health DTEC 1,763 - 1,763 Total Revenue $ 9,593 $ 15,468 $ 25,061 Timing of revenue recognition for the nine months ended September 30, 2017 (as adjusted): Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 41,220 $ 41,220 Hearing Health 18,487 - 18,487 Professional Audio Communications 4,505 - 4,505 Hearing Health DTEC Segment: Hearing Health DTEC 4,588 - 4,588 Total Revenue $ 137,601 $ 41,220 $ 68,800 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events None |
New Accounting Pronouncements (
New Accounting Pronouncements (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | In July 2018, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2018-11, "Leases (Topic 842): Targeted Improvements." The amendments of this ASU provide another transition method for the adoption of the new leases standard. Currently, entities are required to adopt the new leases standard using a modified retrospective transition method. The amendments of this ASU provide another transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Additionally, this ASU also provides lessors a practical expedient to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. The amendments related to separating components of a contract affect the amendments in ASU 2016-02, which are not yet effective but can be early adopted. For entities that have not adopted Topic 842 before the issuance of this ASU, the effective date and transition requirements for the amendments in this ASU related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures In January 2018, the FASB issued ASU No. 2018-01, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842." This ASU provides an optional transition practical expedient to not evaluate under Topic 842, existing or expired land easements that were not previously accounted for as leases under the current leases guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The amendments in this guidance affect the amendments in ASU 2016-02, which are not yet effective but may be early adopted. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. An entity that early adopted Topic 842 should apply the amendments in this ASU upon issuance. Management does not intend to early adopt this guidance. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In March 2017, the FASB issued Accounting Standards Update ASU 2017-07, Retirement Benefits – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The rules related to the timing of when costs are recognized or how they are measured have not changed. This amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component will be eligible for capitalization in inventory and other assets. This guidance became effective January 1, 2018. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has commenced its implementation of the standard and has established a timeline it believes is adequate for a timely adoption of the standard. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures, but anticipates it will be required to record additional lease liabilities and corresponding rights to use assets. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations [Abstract] | |
Summary Of Balance Sheet And Results Of Discontinued Operations | The following table shows the results of the cardiac diagnostic monitoring discontinued operations: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Sales, net $ - $ - $ - $ 140 Operating costs and expenses - - - (268) Net loss from discontinued operations $ - $ - $ - $ (128) The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC for a future revenue earn-out that was valued by the Company at $0 . The Company has no t earned any earn-out revenue through September 30, 2018. The Company recorded a loss on the sale of $164 . The net loss was computed as follows: Accounts receivable, net $ 179 Accrued liabilities (15) Net assets sold 164 Fair value of consideration received - Loss on sale of discontinued operations, net of income taxes $ 164 |
Significant Changes Due To To_2
Significant Changes Due To Topic 606 (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Significant Changes Due To Topic 606 [Abstract] | |
Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Financial Statements | Consolidated Statement of Operations: Three Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended September 30, 2017, as adjusted Nine Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Nine Months Ended September 30, 2017, as adjusted Sales, net $ 24,034 $ 1,027 $ 25,061 $ 66,083 $ 2,717 $ 68,800 Cost of sales 16,469 865 17,334 46,261 2,339 48,600 Gross profit 7,565 162 7,727 19,822 378 20,200 Operating expenses: Sales and marketing 2,342 - 2,342 6,857 - 6,857 General and administrative 2,698 - 2,698 7,961 - 7,961 Research and development 1,047 - 1,047 3,312 - 3,312 Total operating expenses 6,087 - 6,087 18,130 - 18,130 Operating income 1,478 162 1,640 1,692 378 2,070 Interest expense (177) - (177) (548) - (548) Other expense (337) - (337) (328) - (328) Income from continuing operations before income taxes and discontinued operations 964 162 1,126 816 378 1,194 Income tax expense 47 - 47 165 - 165 Income from continuing operations before discontinued operations 917 162 1,079 651 378 1,029 Loss on sale of discontinued operations (Note 3) - - - (164) - (164) Loss from discontinued operations (Note 3) - - - (128) - (128) Net income 917 162 1,079 359 378 737 Less: Loss allocated to non-controlling interest (186) - (186) (925) - (925) Net income attributable to IntriCon shareholders $ 1,103 $ 162 $ 1,265 $ 1,284 $ 378 $ 1,662 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.16 $ 0.02 $ 0.18 $ 0.23 $ 0.06 $ 0.29 Discontinued operations - - $ - (0.04) - (0.04) Net Income per share $ 0.16 $ 0.02 $ 0.18 $ 0.19 $ 0.06 $ 0.24 Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.15 $ 0.02 $ 0.17 $ 0.22 $ 0.05 $ 0.27 Discontinued operations - - - (0.04) - (0.04) Net Income per share $ 0.15 $ 0.02 $ 0.17 $ 0.18 $ 0.05 $ 0.23 Average shares outstanding: Basic 6,853 6,853 6,853 6,836 6,836 6,836 Diluted 7,251 7,251 7,251 7,179 7,179 7,179 Consolidated Statement of Comprehensive Income: Three Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Three Months Ended September 30, 2017, as adjusted Net income $ 917 $ 162 $ 1,079 Nine Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Nine Months Ended September 30, 2017, as adjusted Net income $ 359 $ 378 $ 737 Consolidated Statement of Cash Flows: Nine Months Ended September 30, 2017, as reported Effect of Adoption of ASC 606 Nine Months Ended September 30, 2017, as adjusted Net income $ 359 $ 378 $ 737 Inventories (2,615) 957 (1,658) Contract assets - (1,335) (1,335) Prior Year Consolidated Balance Sheet: December 31, 2017, as reported Effect of Adoption of ASC 606 December 31, 2017, as adjusted Inventories $ 15,397 $ (1,689) $ 13,708 Contract assets - 2,979 2,979 Other accrued liabilities 3,224 515 3,739 Accumulated deficit (6,831) 775 (6,056) |
Summary of Information about Receivables, Contracts Assets, and Contract Liabilities from Contracts with Customers | September 30, 2018 December 31, 2017, as adjusted Receivables, included in accounts receivable, less allowance for doubtful account $ 13,591 $ 9,052 Contract assets 6,324 2,979 Contract liabilities, included in other current liabilities 416 312 Significant changes in contract assets and contract liabilities during the period are as follows: For the nine months ended September 30, 2018 Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of beginning contract liabilities to revenue, as a result of performance obligations satisfied $ - $ 312 Cash received in advance and not recognized as revenue - (416) Reclassification of beginning contract assets to accounts receivable, as a result of right to consideration becoming unconditional - - Contract assets recognized, net of reclassification to accounts receivable 3,345 Cumulative catch-up from a change in the timeframe for recognition of revenue arising from a contract liability - - Increase as a result of cumulative catch-up adjustment arising from changes in the estimate of costs incurred relative to total amounts projected, excluding amounts transferred to receivables during the period. - Net Change $ 3,345 $ (104) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary Of Data By Industry Segment | At and for the Three Months Ended September 30, 2018 Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 28,644 $ 1,490 $ 30,134 Income (loss) from continuing operations 2,942 (1,039) 1,903 Identifiable assets (excluding goodwill) 100,051 6,137 106,188 Goodwill 9,551 1,257 10,808 Depreciation and amortization 659 55 714 Capital expenditures 1,885 3 1,888 At and for the Nine Months Ended September 30, 2018 Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 80,325 $ 5,332 $ 85,657 Income (loss) from continuing operations 6,671 (1,992) 4,679 Identifiable assets (excluding goodwill) 100,051 6,137 106,188 Goodwill 9,551 1,257 10,808 Depreciation and amortization 1,991 155 2,146 Capital expenditures 3,426 70 3,496 At and for the Three Months Ended September 30, 2017 (as adjusted) Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 23,298 $ 1,763 $ 25,061 Income (loss) from continuing operations 1,283 (204) 1,079 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 506 48 554 Capital expenditures 350 16 366 At and for the Nine Months Ended September 30, 2017 (as adjusted) Body Worn Devices Hearing Health Direct-to-End-Consumer Total Revenue, net $ 64,212 $ 4,588 $ 68,800 Income (loss) from continuing operations 2,114 (1,085) 1,029 Identifiable assets (excluding goodwill) 29,883 5,404 35,287 Goodwill 9,551 1,004 10,555 Depreciation and amortization 1,500 159 1,659 Capital expenditures 836 148 984 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Geographical Distribution Of Long-Lived Assets, Net | September 30, December 31, 2018 2017 United States $ 9,826 $ 5,407 Singapore 1,081 1,254 Other – primarily United Kingdom and Indonesia 461 514 Consolidated $ 11,368 $ 7,175 |
Geographical Distribution Of Net Sales | Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 (as adjusted) September 30, 2018 September 30, 2017 (as adjusted) United States $ 25,157 $ 20,632 $ 70,871 $ 55,521 Europe 2,068 2,317 6,230 7,102 Asia 2,472 1,740 7,639 5,541 All other countries 437 372 917 636 Consolidated $ 30,134 $ 25,061 $ 85,657 $ 68,800 |
Investment In Partnerships (Tab
Investment In Partnerships (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investment In Partnerships [Abstract] | |
Investments in Partnerships | September 30, December 31, 2018 2017 Investment in Soundperience $ 1,037 $ 842 Investment in Signison 662 498 Other 221 276 Total $ 1,920 $ 1,616 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Securities [Abstract] | |
Schedule Of Information By Level For Assets And Liabilities That Are Measured At Fair Value On A Recurring Basis | Fair Value as of Fair Value Measurements Using Inputs Considered as September 30, 2018 Level 1 Level 2 Level 3 Available for sale securities $ 45,042 $ 45,042 $ - $ - Fair Value as of Fair Value Measurements Using Inputs Considered as September 30, 2017 Level 1 Level 2 Level 3 Available for sale securities $ - $ - $ - $ - |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total September 30, 2018 Domestic $ 10,158 $ 1,924 $ 1,765 $ 13,847 Foreign 2,674 1,169 847 4,690 Total $ 12,832 $ 3,093 $ 2,612 $ 18,537 December 31, 2017 (as adjusted) Domestic $ 6,924 $ 1,791 $ 1,366 $ 10,081 Foreign 2,258 514 855 3,627 Total $ 9,182 $ 2,305 $ 2,221 $ 13,708 |
Short And Long-Term Debt (Table
Short And Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Short And Long-Term Debt [Abstract] | |
Summary Of Short And Long-Term Debt | September 30, December 31, 2018 2017 Domestic Asset-Based Revolving Credit Facility $ - $ 4,000 Foreign Overdraft and Letter of Credit Facility 272 1,250 Domestic Term-Loan - 6,250 Unamortized Finance Costs (81) (139) Total Debt 191 11,361 Less: Current maturities (96) (2,040) Total Long-Term Debt $ 95 $ 9,321 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes [Abstract] | |
Income (Loss) Before Income Taxes For Each Jurisdiction | Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 United States $ 1,575 $ 1,170 $ 4,875 $ 1,427 Singapore 378 245 724 168 Indonesia 18 20 60 54 United Kingdom (299) (184) (869) (595) Germany 134 (125) 247 140 Income before income taxes $ 1,806 $ 1,126 $ 5,037 $ 1,194 |
Shareholders' Equity And Stoc_2
Shareholders' Equity And Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Shareholders' Equity And Stock-Based Compensation [Abstract] | |
Summary Of Award Activity | Outstanding Awards Weighted-average Aggregate Stock Options RSUs Total Exercise Price (a) Intrinsic Value Outstanding at December 31, 2017 1,453 - 1,453 $ 5.95 Forfeited, cancelled or expired (18) - (18) 7.93 Granted - 98 98 - Exercised (578) - (578) 5.69 Outstanding at September 30, 2018 857 98 955 $ 5.56 $ 48,377 Exercisable at September 30, 2018 603 - 603 $ 5.76 $ 30,438 Available for future grant at December 31, 2017 251 Available for future grant at September 30, 2018 249 (a) The weighted average exercise price calculation does not include outstanding RSUs |
Income Per Share (Tables)
Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 (as adjusted) September 30, 2018 September 30, 2017 (as adjusted) Numerator: Income from continuing operations before discontinued operations $ 1,903 $ 1,079 $ 4,679 $ 1,029 Loss on sale of discontinued operations - - - (164) Loss from discontinued operations, net of income taxes - - - (128) Net income 1,903 1,079 4,679 737 Less: loss allocated to non-controlling interest - (186) - (925) Net income attributable to shareholders $ 1,903 $ 1,265 $ 4,679 $ 1,662 Denominator: Basic – weighted shares outstanding 7,825 6,853 7,249 6,836 Weighted shares assumed upon exercise of stock options 997 398 1,111 343 Diluted – weighted shares outstanding 8,822 7,251 8,360 7,179 Basic income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.24 $ 0.18 $ 0.65 $ 0.29 Discontinued operations - - - (0.04) Net income per share: $ 0.24 $ 0.18 $ 0.65 $ 0.24 Diluted income (loss) per share attributable to IntriCon shareholders: Continuing operations $ 0.22 $ 0.17 $ 0.56 0.27 Discontinued operations - - - (0.04) Net income per share: $ 0.22 $ 0.17 $ 0.56 $ 0.23 |
Revenue By Market (Tables)
Revenue By Market (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue By Market [Abstract] | |
Schedule Of Net Revenue By Market | Timing of revenue recognition for the three months ended September 30, 2018: Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 19,356 $ 19,356 Hearing Health 7,284 - 7,284 Professional Audio Communications 2,004 - 2,004 Hearing Health DTEC Segment: Hearing Health DTEC 1,490 - 1,490 Total Revenue $ 10,778 $ 19,356 $ 30,134 Timing of revenue recognition for the nine months ended September 30, 2018: Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 55,487 $ 55,487 Hearing Health 19,484 - 19,484 Professional Audio Communications 5,353 - 5,353 Hearing Health DTEC Segment: Hearing Health DTEC 5,333 - 5,333 Total Revenue $ 30,170 $ 55,487 $ 85,657 Timing of revenue recognition for the three months ended September 30, 2017 (as adjusted): Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 15,468 $ 15,468 Hearing Health 6,215 - 6,215 Professional Audio Communications 1,615 - 1,615 Hearing Health DTEC Segment: Hearing Health DTEC 1,763 - 1,763 Total Revenue $ 9,593 $ 15,468 $ 25,061 Timing of revenue recognition for the nine months ended September 30, 2017 (as adjusted): Products and services transferred at point in time Products and services transferred over time Total Body Worn Devices Segment: Medical Biotelemetry $ - $ 41,220 $ 41,220 Hearing Health 18,487 - 18,487 Professional Audio Communications 4,505 - 4,505 Hearing Health DTEC Segment: Hearing Health DTEC 4,588 - 4,588 Total Revenue $ 137,601 $ 41,220 $ 68,800 |
General (Narrative) (Details)
General (Narrative) (Details) € in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Hearing Help Express (HHE) [Member] | ||
Additional percentage acquired | 80.00% | |
Purchase price, paid in cash | $ 650 | |
Repayment in debt to HHE's 80% holder | $ 1,833 | |
Percentage ownership after transaction | 100.00% | |
Soundperience GmbH [Member] | ||
Additional percentage acquired | 33.00% | |
Percentage ownership after transaction | 49.00% | |
Equity method investment | € | € 1,500 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | Feb. 17, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Revenue earn-out | $ 0 | ||
Loss on sale of discontinued operations, net of income taxes | $ 164,000 | ||
Cardiac Diagnostic Monitoring Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
Revenue earn-out | $ 0 | ||
Loss on sale of discontinued operations, net of income taxes | $ 164,000 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - Cardiac Diagnostic Monitoring Business [Member] - Discontinued Operations, Disposed of by Sale [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Sales, net | $ 140 |
Operating costs and expenses | (268) |
Net loss from discontinued operations | $ (128) |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Loss On Sale Of Discontinued Operations) (Details) - USD ($) $ in Thousands | Feb. 17, 2017 | Sep. 30, 2017 |
Loss on sale of discontinued operations, net of income taxes | $ 164 | |
Discontinued Operations, Disposed of by Sale [Member] | Cardiac Diagnostic Monitoring Business [Member] | ||
Accounts receivable, net | $ 179 | |
Accrued liabilities | (15) | |
Net assets sold | 164 | |
Fair value of consideration received | ||
Loss on sale of discontinued operations, net of income taxes | $ 164 |
Changes In Accounting Policies
Changes In Accounting Policies (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Hearing Health Direct-to-End Consumer (DTEC) Market [Member] | |
Trial period | 60 days |
Significant Changes Due To To_3
Significant Changes Due To Topic 606 (Narrative) (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 518 |
Significant Changes Due To To_4
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Statements of Operations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Sales, net | $ 30,134 | $ 25,061 | $ 85,657 | $ 68,800 |
Cost of sales | 20,609 | 17,334 | 57,731 | 48,600 |
Gross profit | 9,525 | 7,727 | 27,926 | 20,200 |
Operating expenses: | ||||
Sales and marketing | 3,009 | 2,342 | 8,729 | 6,857 |
General and administrative | 3,232 | 2,698 | 9,434 | 7,961 |
Research and development | 1,251 | 1,047 | 3,693 | 3,312 |
Total operating expenses | 7,492 | 6,087 | 21,856 | 18,130 |
Operating income | 2,033 | 1,640 | 6,070 | 2,070 |
Interest expense, net | (48) | (177) | (453) | (548) |
Other income | (179) | (337) | (580) | (328) |
Income from continuing operations before income taxes and discontinued operations | 1,806 | 1,126 | 5,037 | 1,194 |
Income tax expense (benefit) | (97) | 47 | 358 | 165 |
Income from continuing operations before discontinued operations | 1,903 | 1,079 | 4,679 | 1,029 |
Loss on sale of discontinued operations (Note 3) | (164) | |||
Loss from discontinued operations (Note 3) | (128) | |||
Net income | 1,903 | 1,079 | 4,679 | 737 |
Less: Loss allocated to non-controlling interest | (186) | (925) | ||
Net income attributable to IntriCon shareholders | $ 1,903 | $ 1,265 | $ 4,679 | $ 1,662 |
Basic income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ 0.24 | $ 0.18 | $ 0.65 | $ 0.29 |
Discontinued operations | (0.04) | |||
Net income per share: | 0.24 | 0.18 | 0.65 | 0.24 |
Diluted income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | 0.22 | 0.17 | 0.56 | 0.27 |
Discontinued operations | (0.04) | |||
Net income per share: | $ 0.22 | $ 0.17 | $ 0.56 | $ 0.23 |
Average shares outstanding: | ||||
Basic | 7,825 | 6,853 | 7,249 | 6,836 |
Diluted | 8,822 | 7,251 | 8,360 | 7,179 |
Accounting Standards Update 2014-09 [Member] | ||||
Sales, net | $ 25,061 | $ 68,800 | ||
Cost of sales | 17,334 | 48,600 | ||
Gross profit | 7,727 | 20,200 | ||
Operating expenses: | ||||
Sales and marketing | 2,342 | 6,857 | ||
General and administrative | 2,698 | 7,961 | ||
Research and development | 1,047 | 3,312 | ||
Total operating expenses | 6,087 | 18,130 | ||
Operating income | 1,640 | 2,070 | ||
Interest expense, net | (177) | (548) | ||
Other income | (337) | (328) | ||
Income from continuing operations before income taxes and discontinued operations | 1,126 | 1,194 | ||
Income tax expense (benefit) | 47 | 165 | ||
Income from continuing operations before discontinued operations | 1,079 | 1,029 | ||
Loss on sale of discontinued operations (Note 3) | (164) | |||
Loss from discontinued operations (Note 3) | (128) | |||
Net income | 1,079 | 737 | ||
Less: Loss allocated to non-controlling interest | (186) | (925) | ||
Net income attributable to IntriCon shareholders | $ 1,265 | $ 1,662 | ||
Basic income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ 0.18 | $ 0.29 | ||
Discontinued operations | (0.04) | |||
Net income per share: | 0.18 | 0.24 | ||
Diluted income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | 0.17 | 0.27 | ||
Discontinued operations | (0.04) | |||
Net income per share: | $ 0.17 | $ 0.23 | ||
Average shares outstanding: | ||||
Basic | 6,853 | 6,836 | ||
Diluted | 7,251 | 7,179 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Sales, net | $ 1,027 | $ 2,717 | ||
Cost of sales | 865 | 2,339 | ||
Gross profit | 162 | 378 | ||
Operating expenses: | ||||
Operating income | 162 | 378 | ||
Income from continuing operations before income taxes and discontinued operations | 162 | 378 | ||
Income from continuing operations before discontinued operations | 162 | 378 | ||
Net income | 162 | 378 | ||
Net income attributable to IntriCon shareholders | $ 162 | $ 378 | ||
Basic income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ 0.02 | $ 0.06 | ||
Net income per share: | 0.02 | 0.06 | ||
Diluted income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | 0.02 | 0.05 | ||
Net income per share: | $ 0.02 | $ 0.05 | ||
Average shares outstanding: | ||||
Basic | 6,853 | 6,836 | ||
Diluted | 7,251 | 7,179 | ||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Sales, net | $ 24,034 | $ 66,083 | ||
Cost of sales | 16,469 | 46,261 | ||
Gross profit | 7,565 | 19,822 | ||
Operating expenses: | ||||
Sales and marketing | 2,342 | 6,857 | ||
General and administrative | 2,698 | 7,961 | ||
Research and development | 1,047 | 3,312 | ||
Total operating expenses | 6,087 | 18,130 | ||
Operating income | 1,478 | 1,692 | ||
Interest expense, net | (177) | (548) | ||
Other income | (337) | (328) | ||
Income from continuing operations before income taxes and discontinued operations | 964 | 816 | ||
Income tax expense (benefit) | 47 | 165 | ||
Income from continuing operations before discontinued operations | 917 | 651 | ||
Loss on sale of discontinued operations (Note 3) | (164) | |||
Loss from discontinued operations (Note 3) | (128) | |||
Net income | 917 | 359 | ||
Less: Loss allocated to non-controlling interest | (186) | (925) | ||
Net income attributable to IntriCon shareholders | $ 1,103 | $ 1,284 | ||
Basic income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | $ 0.16 | $ 0.23 | ||
Discontinued operations | (0.04) | |||
Net income per share: | 0.16 | 0.19 | ||
Diluted income (loss) per share attributable to IntriCon shareholders: | ||||
Continuing operations | 0.15 | 0.22 | ||
Discontinued operations | (0.04) | |||
Net income per share: | $ 0.15 | $ 0.18 | ||
Average shares outstanding: | ||||
Basic | 6,853 | 6,836 | ||
Diluted | 7,251 | 7,179 |
Significant Changes Due To To_5
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 1,903 | $ 1,079 | $ 4,679 | $ 737 |
Accounting Standards Update 2014-09 [Member] | ||||
Net income | 1,079 | 737 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Net income | 162 | 378 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Net income | $ 917 | $ 359 |
Significant Changes Due To To_6
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's unaudited Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 1,903 | $ 1,079 | $ 4,679 | $ 737 |
Inventories | (4,838) | (1,658) | ||
Contract assets | $ (3,345) | (1,335) | ||
Accounting Standards Update 2014-09 [Member] | ||||
Net income | 1,079 | 737 | ||
Inventories | (1,658) | |||
Contract assets | (1,335) | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Net income | 162 | 378 | ||
Inventories | 957 | |||
Contract assets | (1,335) | |||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Net income | $ 917 | 359 | ||
Inventories | $ (2,615) |
Significant Changes Due To To_7
Significant Changes Due To Topic 606 (Summary of the Effects of Adoption of ASC Topic 606 on the Company's Prior Year Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventories | $ 18,537 | $ 13,708 |
Contract assets | 6,324 | 2,979 |
Other accrued liabilities | 3,385 | 3,739 |
Accumulated deficit | $ (1,377) | (6,056) |
Accounting Standards Update 2014-09 [Member] | ||
Inventories | 13,708 | |
Contract assets | 2,979 | |
Other accrued liabilities | 3,739 | |
Accumulated deficit | (6,056) | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
Inventories | (1,689) | |
Contract assets | 2,979 | |
Other accrued liabilities | 515 | |
Accumulated deficit | 775 | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Inventories | 15,397 | |
Other accrued liabilities | 3,224 | |
Accumulated deficit | $ (6,831) |
Significant Changes Due To To_8
Significant Changes Due To Topic 606 (Summary of Information about Receivables, Contracts Assets, and Contract Liabilities from Contracts with Customers) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Significant Changes Due To Topic 606 [Abstract] | ||
Receivables, included in "accounts receivable, less allowance for doubtful accounts" | $ 13,591 | $ 9,052 |
Contract assets, included in other current assets | 6,324 | 2,979 |
Contract liabilities, included in other current liabilities | $ 416 | $ 312 |
Significant Changes Due To To_9
Significant Changes Due To Topic 606 (Significant Changes in Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Significant Changes Due To Topic 606 [Abstract] | ||
Reclassification of beginning contract liabilities to revenue, as a result of performance obligations satisfied | $ 312 | |
Cash received in advance and not recognized as revenue | (416) | |
Contract assets recognized, net of reclassification to accounts receivable | 3,345 | |
Net Change in Contract Asset | 3,345 | $ 1,335 |
Net Change in Contract Liability | $ (104) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Summary Of D
Segment Reporting (Summary Of Data By Industry Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenue, net | $ 30,134 | $ 25,061 | $ 85,657 | $ 68,800 | |
Income (loss) from continuing operations | 1,903 | 1,079 | 4,679 | 1,029 | |
Identifiable assets (excluding goodwill) | 106,188 | 35,287 | 106,188 | 35,287 | |
Goodwill | 10,808 | 10,555 | 10,808 | 10,555 | $ 10,808 |
Depreciation and amortization | 714 | 554 | 2,146 | 1,659 | |
Capital expenditures | 1,888 | 366 | 3,496 | 984 | |
Body Worn Devices Segment [Member] | |||||
Revenue, net | 28,644 | 23,298 | 80,325 | 64,212 | |
Income (loss) from continuing operations | 2,942 | 1,283 | 6,671 | 2,114 | |
Identifiable assets (excluding goodwill) | 100,051 | 29,883 | 100,051 | 29,883 | |
Goodwill | 9,551 | 9,551 | 9,551 | 9,551 | |
Depreciation and amortization | 659 | 506 | 1,991 | 1,500 | |
Capital expenditures | 1,885 | 350 | 3,426 | 836 | |
Hearing Health Direct-to-End Consumer [Member] | |||||
Revenue, net | 1,490 | 1,763 | 5,332 | 4,588 | |
Income (loss) from continuing operations | (1,039) | (204) | (1,992) | (1,085) | |
Identifiable assets (excluding goodwill) | 6,137 | 5,404 | 6,137 | 5,404 | |
Goodwill | 1,257 | 1,004 | 1,257 | 1,004 | |
Depreciation and amortization | 55 | 48 | 155 | 159 | |
Capital expenditures | $ 3 | $ 16 | $ 70 | $ 148 |
Geographic Information (Narrati
Geographic Information (Narrative) (Details) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Net Sales [Member] | One Customer [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 1 | 1 | 1 | 1 | |
Percentage of risk | 55.00% | 51.00% | 56.00% | 48.00% | |
Accounts Receivable [Member] | Two Customers [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Number of customers | 2 | 2 | |||
Percentage of risk | 51.00% | 32.00% | |||
Contract Assets [Member] | One Customer [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of risk | 77.00% | 62.00% |
Geographic Information (Geograp
Geographic Information (Geographical Distribution Of Long-Lived Assets, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 11,368 | $ 7,175 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 9,826 | 5,407 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 1,081 | 1,254 |
Other-Primarily United Kingdom And Indonesia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 461 | $ 514 |
Geographic Information (Geogr_2
Geographic Information (Geographical Distribution Of Net Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | $ 30,134 | $ 25,061 | $ 85,657 | $ 68,800 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 25,157 | 20,632 | 70,871 | 55,521 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 2,068 | 2,317 | 6,230 | 7,102 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 2,472 | 1,740 | 7,639 | 5,541 |
All Other Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | $ 437 | $ 372 | $ 917 | $ 636 |
Investment In Partnerships (Nar
Investment In Partnerships (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Soundperience GmbH [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Additional percentage acquired | 33.00% |
Percentage ownership after transaction | 49.00% |
Signison [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method, ownership interest | 50.00% |
Investment In Partnerships (Inv
Investment In Partnerships (Investments in Partnerships) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Other | $ 221 | $ 276 |
Total | 1,920 | 1,616 |
Soundperience GmbH [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 1,037 | 842 |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 662 | $ 498 |
Investment Securities (Schedule
Investment Securities (Schedule Of Information By Level For Assets And Liabilities That Are Measured At Fair Value On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 45,042 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 45,042 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 12,832 | $ 9,182 |
Work-in process | 3,093 | 2,305 |
Finished products and components | 2,612 | 2,221 |
Total | 18,537 | 13,708 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 10,158 | 6,924 |
Work-in process | 1,924 | 1,791 |
Finished products and components | 1,765 | 1,366 |
Total | 13,847 | 10,081 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 2,674 | 2,258 |
Work-in process | 1,169 | 514 |
Finished products and components | 847 | 855 |
Total | $ 4,690 | $ 3,627 |
Short And Long-Term Debt (Narra
Short And Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Short And Long-Term Debt Instrument [Line Items] | |||||
Interest expense | $ 48 | $ 177 | $ 453 | $ 548 | |
Domestic Term-Loan [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Debt | $ 6,250 | ||||
Domestic Asset-based Revolving Credit Facility [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Debt | 4,000 | ||||
Foreign Overdraft And Letter Of Credit Facility [Member] | |||||
Short And Long-Term Debt Instrument [Line Items] | |||||
Debt | $ 272 | $ 272 | $ 1,250 |
Short And Long-Term Debt (Summa
Short And Long-Term Debt (Summary Of Short And Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized Finance Costs | $ (81) | $ (139) |
Total Debt | 191 | 11,361 |
Less: Current maturities | (96) | (2,040) |
Total long-term debt | 95 | 9,321 |
Domestic Term-Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 6,250 | |
Domestic Asset-based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 4,000 | |
Foreign Overdraft And Letter Of Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 272 | $ 1,250 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes [Abstract] | ||||
Income tax expense (benefit) | $ (97) | $ 47 | $ 358 | $ 165 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes For Each Jurisdiction) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Income from continuing operations before income taxes and discontinued operations | $ 1,806 | $ 1,126 | $ 5,037 | $ 1,194 |
United States IRS [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income before income taxes, United States | 1,575 | 1,170 | 4,875 | 1,427 |
Singapore Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income before income taxes, Foreign | 378 | 245 | 724 | 168 |
Indonesia [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income before income taxes, Foreign | 18 | 20 | 60 | 54 |
United Kingdom [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income before income taxes, Foreign | (299) | (184) | (869) | (595) |
Germany [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income before income taxes, Foreign | $ 134 | $ (125) | $ 247 | $ 140 |
Shareholders' Equity And Stoc_3
Shareholders' Equity And Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Aug. 20, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock for which awards can be granted | 249 | 249 | 251 | ||||
Number of Shares, Options granted | 98 | ||||||
Stock option expense | $ 358 | $ 209 | $ 1,025 | $ 634 | |||
Unrecognized compensation costs related to non-vested awards | $ 2,295 | $ 2,295 | |||||
Unrecognized compensation costs related to non-vested awards, recognition period | 2 years 7 days | ||||||
Shares issued of common stock | 1,725 | ||||||
Price per share | $ 55 | ||||||
Discounted per share price | $ 3.30 | ||||||
Proceeds from issuance of common stock, net of costs | $ 88,967 | $ 88,967 | |||||
Repurchased shares of common stock owned by directors and officers | 500 | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Total intrinsic value of options exercised | $ 25,060 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Number of Shares, Options granted | 0 | 98 | |||||
Share Price | $ 20.61 | $ 20.61 | $ 0 | ||||
2006 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate number of shares of common stock for which awards can be granted | 455 | 455 | |||||
Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares purchased for award | 1 | 3 | 5 | 10 | |||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term of options | 10 years | ||||||
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares approved under purchase plan | 300 | 300 |
Shareholders' Equity And Stoc_4
Shareholders' Equity And Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | |
Number of Shares, Outstanding | 1,453 | |
Number of Shares, Options forfeited, cancelled or expired | (18) | |
Number of Shares, Options granted | 98 | |
Number of Shares, Options exercised | (578) | |
Number of Shares, Outstanding | 955 | 955 |
Number of Shares, Exercisable | 603 | 603 |
Number of Shares, Available for future grant at beginning of period | 251 | |
Number of Shares, Available for future grant at end of period | 249 | 249 |
Weighted-average Exercise Price, Outstanding | $ / shares | $ 5.95 | |
Weighted-average Exercise Price, Options forfeited, cancelled or expired | $ / shares | 7.93 | |
Weighted-average Exercise Price, Options exercised | $ / shares | 5.69 | |
Weighted-average Exercise Price, Outstanding | $ / shares | $ 5.56 | 5.56 |
Weighted-average Exercise Price, Exercisable | $ / shares | $ 5.76 | $ 5.76 |
Aggregate Intrinsic Value, Outstanding | $ | $ 48,377 | $ 48,377 |
Aggregate Intrinsic Value, Exercisable | $ | $ 30,438 | $ 30,438 |
Stock Options [Member] | ||
Number of Shares, Outstanding | 1,453 | |
Number of Shares, Options forfeited, cancelled or expired | (18) | |
Number of Shares, Options exercised | (578) | |
Number of Shares, Outstanding | 857 | 857 |
Number of Shares, Exercisable | 603 | 603 |
Restricted Stock Units (RSUs) [Member] | ||
Number of Shares, Options granted | 0 | 98 |
Number of Shares, Outstanding | 98 | 98 |
Income Per Share (Narrative) (D
Income Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Income Per Share [Abstract] | ||
Securities excluded from computation of diluted income per share | 0 | 0 |
Income Per Share (Reconciliatio
Income Per Share (Reconciliation Between Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Per Share [Abstract] | ||||
Income from continuing operations before income taxes and discontinued operations | $ 1,903 | $ 1,079 | $ 4,679 | $ 1,029 |
Loss on sale of discontinued operations | (164) | |||
Loss from discontinued operations, net of income taxes | (128) | |||
Net income | 1,903 | 1,079 | 4,679 | 737 |
Less: Loss allocated to non-controlling interest | (186) | (925) | ||
Net income attributable to IntriCon shareholders | $ 1,903 | $ 1,265 | $ 4,679 | $ 1,662 |
Basic - weighted shares outstanding | 7,825 | 6,853 | 7,249 | 6,836 |
Weighted shares assumed upon exercise of stock options | 997 | 398 | 1,111 | 343 |
Diluted - weighted shares outstanding | 8,822 | 7,251 | 8,360 | 7,179 |
Continuing operations | $ 0.24 | $ 0.18 | $ 0.65 | $ 0.29 |
Discontinued operations | (0.04) | |||
Net income per share: | 0.24 | 0.18 | 0.65 | 0.24 |
Continuing operations | 0.22 | 0.17 | 0.56 | 0.27 |
Discontinued operations | (0.04) | |||
Net income per share: | $ 0.22 | $ 0.17 | $ 0.56 | $ 0.23 |
Legal Proceedings (Narrative) (
Legal Proceedings (Narrative) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Legal Proceedings [Abstract] | |
Selas SAS, Liabilities | $ 453 |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related-Party Transactions [Abstract] | ||||
Legal services and costs | $ 238 | $ 29 | $ 413 | $ 94 |
Revenue By Market (Schedule Of
Revenue By Market (Schedule Of Net Revenue By Market) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Total Revenue | $ 30,134 | $ 25,061 | $ 85,657 | $ 68,800 |
Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 10,778 | 9,593 | 30,170 | 137,601 |
Products and Services Transferred over Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 19,356 | 15,468 | 55,487 | 41,220 |
Body Worn Devices Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 28,644 | 23,298 | 80,325 | 64,212 |
Hearing Health Direct-to-End Consumer [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 1,490 | 1,763 | 5,332 | 4,588 |
Medical Biotelemetry [Member] | Body Worn Devices Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 19,356 | 15,468 | 55,487 | 41,220 |
Medical Biotelemetry [Member] | Body Worn Devices Segment [Member] | Products and Services Transferred over Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 19,356 | 15,468 | 55,487 | 41,220 |
Hearing Health Market [Member] | Body Worn Devices Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 7,284 | 6,215 | 19,484 | 18,487 |
Hearing Health Market [Member] | Body Worn Devices Segment [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 7,284 | 6,215 | 19,484 | 18,487 |
Professional Audio Communications [Member] | Body Worn Devices Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 2,004 | 1,615 | 5,353 | 4,505 |
Professional Audio Communications [Member] | Body Worn Devices Segment [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 2,004 | 1,615 | 5,353 | 4,505 |
Hearing Health Direct-to-End Consumer (DTEC) Market [Member] | Hearing Health Direct-to-End Consumer [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 1,490 | 1,763 | 5,333 | 4,588 |
Hearing Health Direct-to-End Consumer (DTEC) Market [Member] | Hearing Health Direct-to-End Consumer [Member] | Products and Services Transferred at Point in Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | $ 1,490 | $ 1,763 | $ 5,333 | $ 4,588 |