Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CPI AEROSTRUCTURES INC | ' |
Entity Central Index Key | '0000889348 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 8,483,112 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
CONDENSED_BALANCE_SHEETS_Unaud
CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | $969,792 | $2,166,103 |
Accounts receivable, net | 12,082,203 | 4,392,254 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 73,560,852 | 112,597,136 |
Recoverable and deferred income taxes | 417,000 | 417,000 |
Prepaid expenses and other current assets | 842,828 | 609,268 |
Total current assets | 87,872,675 | 120,181,761 |
Plant and equipment, net | 2,803,275 | 2,849,753 |
Deferred income taxes | 15,761,300 | 1,133,000 |
Other assets | 108,080 | 108,080 |
Total Assets | 106,545,330 | 124,272,594 |
Current Liabilities: | ' | ' |
Accounts payable | 7,226,053 | 7,614,755 |
Accrued expenses | 539,067 | 654,868 |
Accrued losses on uncompleted contracts | 2,627,740 | 0 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 343,701 | 276,170 |
Current portion of long-term debt | 976,981 | 1,020,349 |
Line of credit | 29,850,000 | 21,350,000 |
Income tax payable | 0 | 736,536 |
Deferred income taxes | 89,000 | 89,000 |
Total current liabilities | 41,652,542 | 31,741,678 |
Long-term debt, net of current portion | 1,777,223 | 2,198,187 |
Deferred income taxes | 788,000 | 788,000 |
Other liabilities | 595,127 | 593,210 |
Total Liabilities | 44,812,892 | 35,321,075 |
Shareholders' Equity: | ' | ' |
Common stock - $.001 par value; authorized 50,000,000 shares, 8,483,112 and 8,410,493 shares, respectively, issued and outstanding | 8,483 | 8,410 |
Additional paid-in capital | 51,120,644 | 50,381,348 |
Retained earnings | 10,619,794 | 38,582,876 |
Accumulated other comprehensive loss | -16,483 | -21,115 |
Total Shareholders' Equity | 61,732,438 | 88,951,519 |
Total Liabilities and Shareholders' Equity | $106,545,330 | $124,272,594 |
CONDENSED_BALANCE_SHEETS_Unaud1
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Shareholders' Equity: | ' | ' |
Common stock, par value (in dollars per value) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 8,483,112 | 8,410,493 |
Common stock, shares outstanding (in shares) | 8,483,112 | 8,410,493 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | ' | ' | ' | ' |
Revenue | ($23,751,623) | $21,110,452 | ($1,868,106) | $41,037,885 |
Cost of sales | 19,211,531 | 16,874,205 | 36,603,916 | 32,361,068 |
Gross profit (loss) | -42,963,154 | 4,236,247 | -38,472,022 | 8,676,817 |
Selling, general and administrative expenses | 1,785,045 | 1,496,272 | 3,623,704 | 3,374,195 |
Income (loss) from operations | -44,748,199 | 2,739,975 | -42,095,726 | 5,302,622 |
Interest expense | 158,752 | 155,699 | 302,356 | 297,071 |
Income (loss) before provision for (benefit from) income taxes | -44,906,951 | 2,584,276 | -42,398,082 | 5,005,551 |
Provision for (benefit from) income taxes | -15,215,000 | 800,000 | -14,435,000 | 1,550,000 |
Net income (loss) | -29,691,951 | 1,784,276 | -27,963,082 | 3,455,551 |
Other comprehensive income (loss), net of tax - | ' | ' | ' | ' |
Change in unrealized gain (loss) - interest rate swap | 1,453 | 13,679 | 4,632 | 17,390 |
Comprehensive income (loss) | ($29,690,498) | $1,797,955 | ($27,958,450) | $3,472,941 |
Income (loss) per common share - basic (in dollars per share) | ($3.50) | $0.21 | ($3.31) | $0.41 |
Income (loss) per common share - diluted (in dollars per share) | ($3.50) | $0.21 | ($3.31) | $0.41 |
Shares used in computing income (loss) per common share: | ' | ' | ' | ' |
Basic (in shares) | 8,472,151 | 8,391,954 | 8,446,787 | 8,384,844 |
Diluted (in shares) | 8,472,151 | 8,456,156 | 8,446,787 | 8,452,064 |
STATEMENTS_OF_SHAREHOLDERS_EQU
STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2012 | $8,371 | $49,780,673 | $30,845,982 | ($40,827) | $80,594,199 |
Balance (in shares) at Dec. 31, 2012 | 8,371,439 | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net Income (loss) | 0 | 0 | 3,455,551 | 0 | 3,455,551 |
Change in unrealized loss from interest rate swap | 0 | 0 | 0 | 17,390 | 17,390 |
Common stock issued upon exercise of stock options | 3 | -3 | 0 | 0 | 0 |
Common stock issued upon exercise of options (in shares) | 2,645 | ' | ' | ' | ' |
Tax provision (benefit) of stock option exercise | 0 | -26,000 | 0 | 0 | -26,000 |
Common stock issued as bonus | 18 | 152,056 | 0 | 0 | 152,074 |
Common stock issued as bonus (in shares) | 17,870 | ' | ' | ' | ' |
Stock compensation expense | 0 | 360,964 | 0 | 0 | 360,964 |
Balance at Jun. 30, 2013 | 8,392 | 50,267,690 | 34,301,533 | -23,437 | 84,554,178 |
Balance (in shares) at Jun. 30, 2013 | 8,391,954 | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 8,410 | 50,381,348 | 38,582,876 | -21,115 | 88,951,519 |
Balance (in shares) at Dec. 31, 2013 | 8,410,493 | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net Income (loss) | 0 | 0 | -27,963,082 | 0 | -27,963,082 |
Change in unrealized loss from interest rate swap | 0 | 0 | 0 | 4,632 | 4,632 |
Common stock issued upon exercise of stock options | 73 | 447,678 | 0 | 0 | 447,751 |
Common stock issued upon exercise of options (in shares) | 72,619 | ' | ' | ' | ' |
Tax provision (benefit) of stock option exercise | 0 | 86,000 | 0 | 0 | 86,000 |
Common stock issued as bonus | ' | ' | ' | ' | 0 |
Stock compensation expense | 0 | 205,618 | 0 | 0 | 205,618 |
Balance at Jun. 30, 2014 | $8,483 | $51,120,644 | $10,619,794 | ($16,483) | $61,732,438 |
Balance (in shares) at Jun. 30, 2014 | 8,483,112 | ' | ' | ' | ' |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($27,963,082) | $3,455,551 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 361,613 | 338,733 |
Deferred rent | 8,549 | 27,311 |
Stock compensation | 205,618 | 360,964 |
Deferred income taxes | -14,628,300 | -10,000 |
Tax benefit from stock option plans | -86,000 | 26,000 |
Changes in operating assets and liabilities: | ' | ' |
Increase in accounts receivable | -7,689,949 | -2,931,047 |
(Increase) decrease in costs and estimated earnings in excess of billings on uncompleted contracts | 39,036,284 | -2,393,630 |
Increase in prepaid expenses and other assets | -233,560 | -141,907 |
Decrease in accounts payable and accrued expenses | -506,503 | -6,349,868 |
Decrease in billings in excess of costs and estimated earnings on uncompleted contracts | 67,531 | -236,292 |
Increase in accrued loss on uncompleted contracts | 2,627,740 | 0 |
Increase (decrease) in income taxes payable | -650,536 | 222,530 |
Net cash used in operating activities | -9,450,595 | -7,631,655 |
Cash used in investing activities - purchase of plant and equipment | -315,135 | -548,179 |
Cash flows from financing activities: | ' | ' |
Payment of long-term debt | -464,332 | -556,592 |
Proceeds from line of credit | 8,500,000 | 7,500,000 |
Payments on line of credit | 0 | -1,000,000 |
Proceeds from exercise of stock options | 447,751 | 0 |
Tax benefit from stock option plans | 86,000 | -26,000 |
Net cash provided by financing activities | 8,569,419 | 5,917,408 |
Net decrease in cash | -1,196,311 | -2,262,426 |
Cash at beginning of period | 2,166,103 | 2,709,803 |
Cash at end of period | 969,792 | 447,377 |
Noncash investing and financing activities: | ' | ' |
Common stock issued as bonus | 0 | 152,074 |
Cash paid during the period for: | ' | ' |
Interest | 471,500 | 412,954 |
Income taxes | $850,000 | $1,250,000 |
INTERIM_FINANCIAL_STATEMENTS
INTERIM FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
INTERIM FINANCIAL STATEMENTS [Abstract] | ' |
INTERIM FINANCIAL STATEMENTS | ' |
1. INTERIM FINANCIAL STATEMENTS | |
The condensed financial statements of CPI Aerostructures, Inc. (the “Company”) as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. | |
The condensed balance sheet at December 31, 2013 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation for the periods presented have been reflected as required by the SEC. Such adjustments are of a normal, recurring nature. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for interim periods are not necessarily indicative of the operating results to be expected for the full year or any other interim period. | |
The Company maintains its cash in two financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed these limits. As of June 30, 2014, the Company had approximately $1,760,000 of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly credit worthy. | |
The Company recognizes revenue from the Company’s contracts over the contractual period under the percentage-of-completion (“POC”) method of accounting. Under the POC method of accounting, sales and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at the completion of the contract. Recognized revenues that will not be billed under the terms of the contract until a later date are recorded as an asset captioned “Costs and estimated earnings in excess of billings on uncompleted contracts.” Contracts where billings to date have exceeded recognized revenues are recorded as a liability captioned “Billings in excess of costs and estimated earnings on uncompleted contracts.” Changes to the original estimates may be required during the life of the contract. Estimates are reviewed monthly and the effect of any change in the estimated revenue or gross margin percentage for a contract is reflected in revenue or cost of sales in the period the change becomes known. The use of the POC method of accounting involves considerable use of estimates in determining revenues, costs and profits and in assigning the amounts to accounting periods. As a result, there can be a significant disparity between earnings (both for accounting and tax purposes) as reported and actual cash received by us during any reporting period. We continually evaluate all of the issues related to the assumptions, risks and uncertainties inherent with the application of the POC method of accounting; however, we cannot assure you that our estimates will be accurate. If our estimates are not accurate or a contract is terminated, we will be forced to adjust revenue in later periods. Furthermore, even if our estimates are accurate, we may have a shortfall in our cash flow and we may need to borrow money, or seek access to other forms of liquidity, to fund our work in process or to pay taxes until the reported earnings materialize as actual cash receipts. | |
When adjustments are required for the estimated total revenue on a contract, these changes are recognized with an inception-to-date effect in the current period. Also, when estimates of total costs to be incurred exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. For the quarterly period ended June 30, 2014, the Company adjusted the estimated total revenue and recorded a loss on its Wing Replacement Program (“WRP”) for the U.S. Air Force’s A-10 Thunderbolt aircraft (“A-10”). | |
The long term future of the A-10 has been uncertain since March 2014 when the U.S. Department of Defense released its 2015 Budget Request that called for the retirement of the entire A-10 fleet. More recent events have led the Company to conclude that our A-10 WRP will likely not continue to the full 242 aircraft as anticipated at the start of the program. The 2015 Department of Defense Appropriations Act passed by the United States House of Representatives on June 20, 2014 provides no funding for A-10 operations in U. S. Government fiscal year 2015 that commences October 1, 2014. Further, this bill rescinds funding from the 2014 U. S. Department of Defense Budget that was to have been used for the procurement of additional wings for the A-10. The Company has no information to support a different conclusion. | |
Because of the probable termination of the Company’s A-10 WRP, the Company has reduced its revenue estimates with respect to this program by approximately 41%. This change in estimate results in an approximate cumulative $44.7 million decrease in revenue from the inception of the program in 2008 through June 30, 2014, all of which is recorded in the quarter ended June 30, 2014. Also, the uncertainty of the future of the A-10 aircraft has impacted the Company’s ability to achieve program cost reductions at suppliers. Accordingly, in addition to the $44.7 million adjustment to revenue, we have recorded a $2.6 million adjustment to cost of sales on the A-10 WRP. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2016. Early application is not permitted. ASU 2014-09 is effective for our first quarter of fiscal year 2017 using either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||
STOCK-BASED COMPENSATION | ' | ||||
2 | STOCK-BASED COMPENSATION | ||||
The Company accounts for compensation expense associated with stock options based on the fair value of the options on the date of grant. | |||||
The Company’s net loss for the three and six months ended June 30, 2014 includes approximately $103,000 and $206,000, respectively, of non-cash compensation expense related to the Company’s stock options. The non-cash compensation expense related to all of the Company’s stock-based compensation arrangements is recorded as a component of selling, general and administrative expenses. | |||||
The estimated fair value of each option award granted was determined on the date of grant using the Black-Scholes option valuation model. No options were granted during the three months ended June 30, 2014 and 2013. The following weighted-average assumptions were used for the options granted during the six months ended June 30, 2014 and 2013: | |||||
2014 | 2013 | ||||
Risk-free interest rate | 1.45% | 0.72% | |||
Expected volatility | 102% | 106% | |||
Dividend yield | 0% | 0% | |||
Expected option term | 5 years | 5 years | |||
A summary of the status of the Company’s stock option plans as of June 30, 2014 and changes during the six months ended June 30, 2014 is as follows: | |||||
Weighted | Weighted | Aggregate | |||
average | average | Intrinsic Value | |||
Exercise | remaining | ||||
Price | contractual | ||||
Options | term (in years) | ||||
Outstanding | |||||
at beginning of period | 461,919 | $9.80 | |||
Granted | 36,292 | 15.04 | |||
Exercised | -130,000 | 9 | |||
Outstanding and vested | |||||
at end of period | 368,211 | $10.60 | 2.52 | $1,024,729 | |
Options to acquire 36,292 shares of common stock were granted on January 1, 2014 to members of our board of directors as part of their normal compensation. Of the 36,292 options granted on January 1, 2014, 9,075 vested immediately, 9,073 vested on April 1, 2014, 9,073 vest on July 1, 2014 and 9,071 vest on October 1, 2014. | |||||
During the six months ended June 30, 2014, 50,000 stock options were exercised for cash resulting in proceeds to the Company of $447,751. During the same period 80,000 options were exercised, pursuant to provisions of the stock option plan, where the Company received no cash and 57,381 shares of its common stock in exchange for the 80,000 shares issued in the exercise. The 57,381 shares that the Company received were valued at $727,072, the fair market value of the shares on the dates of exercise. | |||||
The intrinsic value of all options exercised during the six months ended June 30, 2014 and 2013 was approximately $513,000 and $26,300, respectively. The intrinsic value of all options exercised during the three months ended June 30, 2014 and 2013 was approximately $99,000 and zero, respectively. |
DERIVATIVE_INSTRUMENTS_AND_FAI
DERIVATIVE INSTRUMENTS AND FAIR VALUE | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
DERIVATIVE INSTRUMENTS AND FAIR VALUE [Abstract] | ' | |||||
DERIVATIVE INSTRUMENTS AND FAIR VALUE | ' | |||||
3. DERIVATIVE INSTRUMENTS AND FAIR VALUE | ||||||
Our use of derivative instruments has been to hedge interest rates. These derivative contracts are entered into with a financial institution. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use. | ||||||
We record these derivative financial instruments on the condensed balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. | ||||||
Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the results of operations immediately. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately. | ||||||
In March 2012, the Company entered into interest rate swaps with the objective of reducing our exposure to cash flow volatility arising from interest rate fluctuations associated with certain debt. The notional amount, maturity date, and currency of these contracts match those of the underlying debt. The Company has designated these interest rate swap contracts as cash flow hedges. The Company measures ineffectiveness by comparing the cumulative change in the forward contact with the cumulative change in the hedged item. No material ineffectiveness was recognized in the quarter ended June 30, 2014. As of June 30, 2014 and December 31, 2013, we had a net deferred loss associated with cash flow hedges of approximately $25,000 and $32,000, respectively, due to the interest rate swap which has been included in Other Liabilities. | ||||||
As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties may fail to meet their contractual obligations. Recent adverse developments in the global financial and credit markets could negatively impact the creditworthiness of our counterparties and cause one or more of our counterparties to fail to perform as expected. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. To date, all counterparties have performed in accordance with their contractual obligations. | ||||||
Fair Value | ||||||
At June 30, 2014 and December 31, 2013, the fair values of cash, accounts receivable, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these instruments. | ||||||
30-Jun-14 | ||||||
Carrying Amount | Fair Value | |||||
Debt | ||||||
Short-term borrowings and long-term debt | $32,604,204 | $32,604,204 | ||||
31-Dec-13 | ||||||
Carrying Amount | Fair Value | |||||
Debt | ||||||
Short-term borrowings and long-term debt | $24,568,536 | $24,568,536 | ||||
We estimated the fair value of debt using market quotes and calculations based on market rates. | ||||||
The following table presents the fair values of those financial liabilities measured on a recurring basis as of June 30, 2014 and December 31, 2013: | ||||||
Fair Value Measurements June 30, 2014 | ||||||
Description | Total | Quoted Prices | Significant | Significant | ||
in Active | Other | Unobservable | ||||
Markets for | Observable | Inputs (Level 3) | ||||
Identical assets | Inputs (Level 2) | |||||
(Level 1) | ||||||
Interest Rate Swap, net | $24,975 | -- | $24,975 | -- | ||
Total | $24,975 | -- | $24,975 | -- | ||
Fair Value Measurements December 31, 2013 | ||||||
Description | Total | Quoted Prices | Significant | Significant | ||
in Active | Other | Unobservable | ||||
Markets for | Observable | Inputs (Level 3) | ||||
Identical assets | Inputs (Level 2) | |||||
(Level 1) | ||||||
Interest Rate Swap, net | $31,992 | -- | $31,992 | -- | ||
Total | $31,992 | -- | $31,992 | -- | ||
The fair value of the Company’s interest rate swaps was determined by comparing the fixed rate set at the inception of the transaction to the “replacement swap rate,” which represents the market rate for an offsetting interest rate swap with the same notional amounts and final maturity date. The market value is then determined by calculating the present value of the interest differential between the contractual swap and the replacement swap. | ||||||
As of June 30, 2014 and December 31, 2013, $24,975and $31,992, respectively, was included in Other Liabilities related to the fair value of the Company’s interest rate swap, and $16,483 and $21,115, respectively, net of tax of $8,492 and $10,877, was included in Accumulated Other Comprehensive Loss. |
COSTS_AND_ESTIMATED_EARNINGS_O
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS [Abstract] | ' | ||||
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | ' | ||||
4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts consist of: | |||||
30-Jun-14 | |||||
U.S | |||||
Government | Commercial | Total | |||
Costs incurred on uncompleted | |||||
contracts | $283,389,597 | $74,375,964 | $357,765,561 | ||
Estimated earnings | 54,647,673 | 33,817,544 | 88,465,217 | ||
Sub-total | 338,037,270 | 108,193,508 | 446,230,778 | ||
Less billings to date | 295,396,600 | 77,617,027 | 373,013,627 | ||
Costs and estimated earningsin excess of billings on uncompleted contracts | $42,640,670 | $30,576,481 | $73,217,151 | ||
31-Dec-13 | |||||
U.S. | |||||
Government | Commercial | Total | |||
Costs incurred on uncompleted | |||||
contracts | $259,050,407 | $62,502,116 | $321,552,523 | ||
Estimated earnings | 95,590,879 | 30,694,605 | 126,285,484 | ||
Sub-total | 354,641,286 | 93,196,721 | 447,838,007 | ||
Less billings to date | 272,783,120 | 62,733,921 | 335,517,041 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $81,858,166 | $30,462,800 | $112,320,966 | ||
The above amounts are included in the accompanying balance sheets under the following captions at June 30, 2014 and December 31, 2013: | |||||
30-Jun-14 | 31-Dec-13 | ||||
Costs and estimated earnings in excess of billings on | |||||
uncompleted contracts | $73,560,852 | $112,597,136 | |||
Billings in excess of costs and estimated earnings on | |||||
uncompleted contracts | (343,701) | (276,170) | |||
Totals | $73,217,151 | $112,320,966 | |||
U.S. Government Contracts includes contracts directly with the U.S. Government and Government subcontracts. | |||||
Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the six months ended June 30, 2014 and 2013, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $41,820,000 and $2,797,000, respectively, from that which would have been reported had the revised estimates been used as the basis of recognition of contract profits in prior years. Approximately 95% of the decrease in the six months ended June 30, 2014 is the result of a change in estimate on the Company's A-10 program, discussed in Note 1. | |||||
Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is possible that additional significant costs could occur on contracts prior to completion. |
INCOME_PER_COMMON_SHARE
INCOME PER COMMON SHARE | 6 Months Ended | |
Jun. 30, 2014 | ||
INCOME PER COMMON SHARE [Abstract] | ' | |
INCOME PER COMMON SHARE | ' | |
5 | INCOME PER COMMON SHARE | |
Basic income (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted income (loss) per common share for the three and six month periods ended June 30, 2014 and 2013 is computed using the weighted-average number of common shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock incremental shares were used in the calculation of diluted income per common share in both the three and six month period ended June 30, 2014, as the effect of incremental shares would be anti-dilutive. Incremental shares of 64,202 were used in the calculation of diluted income per common share in both the three and six months ended June 30, 2013. Incremental shares of 239,734 were not included in the diluted earnings per share calculations for both the three and six month period ended June 30, 2013 as their exercise price was in excess of the Company’s average stock price for the respective period and, accordingly, these shares are not assumed to be exercise for the diluted earnings per share calculation, as they would be anti-dilutive. |
LINE_OF_CREDIT
LINE OF CREDIT | 6 Months Ended | |
Jun. 30, 2014 | ||
LINE OF CREDIT [Abstract] | ' | |
LINE OF CREDIT | ' | |
6 | LINE OF CREDIT | |
On December 5, 2012, the Company entered into an Amended and Restated Credit Agreement (“Restated Agreement”) with Sovereign Bank, now called Santander Bank, N.A. (“Santander”), as the sole arranger, administrative agent and collateral agent and Valley National Bank. The Restated Agreement provides for a revolving credit loan commitment of $35 million. | ||
As of June 30, 2014, the Company was not in compliance with the net income financial covenant contained in the “Restated Agreement”, which non-compliance has been waived by our lenders (the "Waiver"). On August 6, 2014, the Company entered into an amendment and waiver to the Restated Agreement which, among other things, provided for the Waiver and the repayment of revolving credit loans if and to the extent that the Company receives contract reimbursement payments with respect to our A-10 WRP. As of June 30, 2014, the Company had $29.85 million outstanding under the “Restated Agreement” bearing interest at 3.25%. | ||
The Santander Revolving Facility and term loan under the Restated Agreement are secured by all our assets. |
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended | |
Jun. 30, 2014 | ||
LONG-TERM DEBT [Abstract] | ' | |
LONG-TERM DEBT | ' | |
7. LONG-TERM DEBT | ||
On March 9, 2012, the Company obtained a $4.5 million term loan from Santander to be amortized over five years (the “Santander Term Facility”). Santander Term Facility was used to purchase tooling and equipment for new programs. Santander Term Facility bears interest at the lower of LIBOR plus 3% or Santander Bank’s prime rate. | ||
Additionally, the Company and Santander Bank entered into a five year interest rate swap agreement, in the notional amount of $4.5 million. Under the interest rate swap, the Company pays an amount to Santander Bank representing interest on the notional amount at a fixed rate of 4.11% and receives an amount from Santander Bank representing interest on the notional amount of a rate equal to the one-month LIBOR plus 3%. The effect of this interest rate swap will be the Company paying a fixed interest fixed rate of 4.11% over the term of the Santander Term Facility. | ||
The maturities of long-term debt are as follows: | ||
Twelve months ending June 30, | ||
2015 | $976,981 | |
2016 | 968,019 | |
2017 | 778,685 | |
2018 | 15,711 | |
Thereafter | 14,808 | |
$2,754,204 | ||
In addition to the Santander Term Facility, included in long-term debt are capital leases and notes payable of $204,204, including a current portion of $76,981. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
INCOME TAXES [Abstract] | ' |
INCOME TAXES | ' |
8. INCOME TAXES | |
Benefit from income taxes was $15,215,000 and $14,435,000 for the three and six months ended June 30, 2014, respectively. These benefits result from the Company’s ability to carry back federal and state tax losses to prior periods and recover previously paid taxes. In addition, the Company will be able to carry forward losses that could not be carried back to prior years, to reduce taxable income in future periods. The benefit for both the carry back and net operating loss carry forward are recorded as a component of non-current Deferred Tax Assets. Provision for income taxes for the three and six months ended June 30, 2013 was at the Company’s historic effective tax rate of approximately 31%. |
MAJOR_CUSTOMERS
MAJOR CUSTOMERS | 6 Months Ended |
Jun. 30, 2014 | |
MAJOR CUSTOMERS [Abstract] | ' |
MAJOR CUSTOMERS | ' |
9. MAJOR CUSTOMERS | |
During the six months ended June 30, 2014, the Company’s three largest commercial customers accounted for 29%, 21% and 15% of revenue, respectively. During the six months ended June 30, 2013, the Company’s three largest commercial customers accounted for 27%, 22% and 19% of revenue, respectively. In addition, during the six months ended June 30, 2014 and 2013, 1% of revenue was directly from the U.S. Government. The percentages of revenue for the 2014 are computed prior to the change in estimate adjustment to revenue discussed in Note 1. | |
At June 30, 2014, 27%, 26%, 14% and 9% of Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts were from the four largest commercial customers. At December 31, 2013, 40%, 17%, 16% and 10% of Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts were from the Company’s four largest commercial customers. | |
At June 30, 2014 and December 31, 2013, less than 1% of Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts were direct from the U.S. Government. | |
At June 30, 2014, 29%, 29% and 12% of our accounts receivable were from our three largest commercial customers. At December 31, 2013, 28%, 24% and 20% of accounts receivable were from our three largest commercial customers. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||
Weighted-average assumptions used for options granted | ' | ||||
The following weighted-average assumptions were used for the options granted during the six months ended June 30, 2014 and 2013: | |||||
2014 | 2013 | ||||
Risk-free interest rate | 1.45% | 0.72% | |||
Expected volatility | 102% | 106% | |||
Dividend yield | 0% | 0% | |||
Expected option term | 5 years | 5 years | |||
Stock option activity | ' | ||||
A summary of the status of the Company’s stock option plans as of June 30, 2014 and changes during the six months ended June 30, 2014 is as follows: | |||||
Weighted | Weighted | Aggregate | |||
average | average | Intrinsic Value | |||
Exercise | remaining | ||||
Price | contractual | ||||
Options | term (in years) | ||||
Outstanding | |||||
at beginning of period | 461,919 | $9.80 | |||
Granted | 36,292 | 15.04 | |||
Exercised | -130,000 | 9 | |||
Outstanding and vested | |||||
at end of period | 368,211 | $10.60 | 2.52 | $1,024,729 |
DERIVATIVE_INSTRUMENTS_AND_FAI1
DERIVATIVE INSTRUMENTS AND FAIR VALUE (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
DERIVATIVE INSTRUMENTS AND FAIR VALUE [Abstract] | ' | |||||
Fair values of cash, accounts receivable, accounts payable and accrued expenses | ' | |||||
At June 30, 2014 and December 31, 2013, the fair values of cash, accounts receivable, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these instruments. | ||||||
30-Jun-14 | ||||||
Carrying Amount | Fair Value | |||||
Debt | ||||||
Short-term borrowings and long-term debt | $32,604,204 | $32,604,204 | ||||
31-Dec-13 | ||||||
Carrying Amount | Fair Value | |||||
Debt | ||||||
Short-term borrowings and long-term debt | $24,568,536 | $24,568,536 | ||||
Fair value of financial liabilities measured on a recurring basis | ' | |||||
The following table presents the fair values of those financial liabilities measured on a recurring basis as of June 30, 2014 and December 31, 2013: | ||||||
Fair Value Measurements June 30, 2014 | ||||||
Description | Total | Quoted Prices | Significant | Significant | ||
in Active | Other | Unobservable | ||||
Markets for | Observable | Inputs (Level 3) | ||||
Identical assets | Inputs (Level 2) | |||||
(Level 1) | ||||||
Interest Rate Swap, net | $24,975 | -- | $24,975 | -- | ||
Total | $24,975 | -- | $24,975 | -- | ||
Fair Value Measurements December 31, 2013 | ||||||
Description | Total | Quoted Prices | Significant | Significant | ||
in Active | Other | Unobservable | ||||
Markets for | Observable | Inputs (Level 3) | ||||
Identical assets | Inputs (Level 2) | |||||
(Level 1) | ||||||
Interest Rate Swap, net | $31,992 | -- | $31,992 | -- | ||
Total | $31,992 | -- | $31,992 | -- | ||
COSTS_AND_ESTIMATED_EARNINGS_O1
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS [Abstract] | ' | ||||
Costs and estimated earnings in excess of billings on uncompleted contracts | ' | ||||
Costs and estimated earnings in excess of billings on uncompleted contracts consist of: | |||||
30-Jun-14 | |||||
U.S | |||||
Government | Commercial | Total | |||
Costs incurred on uncompleted | |||||
contracts | $283,389,597 | $74,375,964 | $357,765,561 | ||
Estimated earnings | 54,647,673 | 33,817,544 | 88,465,217 | ||
Sub-total | 338,037,270 | 108,193,508 | 446,230,778 | ||
Less billings to date | 295,396,600 | 77,617,027 | 373,013,627 | ||
Costs and estimated earningsin excess of billings on uncompleted contracts | $42,640,670 | $30,576,481 | $73,217,151 | ||
31-Dec-13 | |||||
U.S. | |||||
Government | Commercial | Total | |||
Costs incurred on uncompleted | |||||
contracts | $259,050,407 | $62,502,116 | $321,552,523 | ||
Estimated earnings | 95,590,879 | 30,694,605 | 126,285,484 | ||
Sub-total | 354,641,286 | 93,196,721 | 447,838,007 | ||
Less billings to date | 272,783,120 | 62,733,921 | 335,517,041 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $81,858,166 | $30,462,800 | $112,320,966 | ||
Net unbilled and estimated earnings | ' | ||||
The above amounts are included in the accompanying balance sheets under the following captions at June 30, 2014 and December 31, 2013: | |||||
30-Jun-14 | 31-Dec-13 | ||||
Costs and estimated earnings in excess of billings on | |||||
uncompleted contracts | $73,560,852 | $112,597,136 | |||
Billings in excess of costs and estimated earnings on | |||||
uncompleted contracts | (343,701) | (276,170) | |||
Totals | $73,217,151 | $112,320,966 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 6 Months Ended | |
Jun. 30, 2014 | ||
LONG-TERM DEBT [Abstract] | ' | |
Maturities of long-term debt | ' | |
The maturities of long-term debt are as follows: | ||
Twelve months ending June 30, | ||
2015 | $976,981 | |
2016 | 968,019 | |
2017 | 778,685 | |
2018 | 15,711 | |
Thereafter | 14,808 | |
$2,754,204 |
INTERIM_FINANCIAL_STATEMENTS_D
INTERIM FINANCIAL STATEMENTS (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Institution | |
INTERIM FINANCIAL STATEMENTS [Abstract] | ' |
Number of financial institutions with which cash is maintained | 2 |
Uninsured balances | $1,760,000 |
A-10 WRP PROGRAM [Abstract] | ' |
Estimated percentage of revenue reduction from probable termination of program | 41.00% |
Estimated decrease in revenue from probable termination of program | 44,700,000 |
Adjustment to cost of sales from termination of program | $2,600,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Vesting period of options granted [Line Items] | ' | ' | ' | ' |
Noncash compensation expense | $103,000 | ' | $206,000 | ' |
Weighted-average assumptions used for options granted [Abstract] | ' | ' | ' | ' |
Risk-free interest rate (in hundredths) | ' | ' | 1.45% | 0.72% |
Expected volatility (in hundredths) | ' | ' | 102.00% | 106.00% |
Dividend yield (in hundredths) | ' | ' | 0.00% | 0.00% |
Expected option term | ' | ' | '5 years | '5 years |
Options [Abstract] | ' | ' | ' | ' |
Outstanding at beginning of period (in shares) | ' | ' | 461,919 | ' |
Granted (in shares) | 0 | 0 | 36,292 | ' |
Exercised (in shares) | ' | ' | -130,000 | ' |
Outstanding and vested at end of period (in shares) | 368,211 | ' | 368,211 | ' |
Weighted average Exercise Price [Abstract] | ' | ' | ' | ' |
Outstanding at beginning of period (in dollars per share) | ' | ' | $9.80 | ' |
Granted (in dollars per share) | ' | ' | $15.04 | ' |
Exercised (in dollars per share) | ' | ' | $9 | ' |
Outstanding and vested at end of period (in dollars per share) | $10.60 | ' | $10.60 | ' |
Weighted average remaining contractual term [Abstract] | ' | ' | ' | ' |
Outstanding and vested at end of period | ' | ' | '2 years 6 months 7 days | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' |
Outstanding and vested at end of period | 1,024,729 | ' | 1,024,729 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Proceeds from exercise of stock options | ' | ' | 447,751 | 0 |
Intrinsic value of options exercised | 99,000 | 0 | 513,000 | 26,300 |
Issue of Stock for Cash [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock issued upon exercise of options (in shares) | ' | ' | 50,000 | ' |
Proceeds from exercise of stock options | ' | ' | 447,751 | ' |
Issue of Stock for Noncash Consideration [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock issued upon exercise of options (in shares) | ' | ' | 80,000 | ' |
Exchange of common stock upon exercise of stock options (in shares) | ' | ' | 57,381 | ' |
Fair market value of common stock upon exercise of options | ' | ' | $727,072 | ' |
January 1, 2014 [Member] | ' | ' | ' | ' |
Options [Abstract] | ' | ' | ' | ' |
Vested (in shares) | 9,075 | ' | 9,075 | ' |
April 1, 2014 [Member] | ' | ' | ' | ' |
Options [Abstract] | ' | ' | ' | ' |
Vested (in shares) | 9,073 | ' | 9,073 | ' |
July 1, 2014 [Member] | ' | ' | ' | ' |
Options [Abstract] | ' | ' | ' | ' |
Vested (in shares) | 9,073 | ' | 9,073 | ' |
October 1, 2014 [Member] | ' | ' | ' | ' |
Options [Abstract] | ' | ' | ' | ' |
Vested (in shares) | 9,071 | ' | 9,071 | ' |
DERIVATIVE_INSTRUMENTS_AND_FAI2
DERIVATIVE INSTRUMENTS AND FAIR VALUE (Details) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Counterparty | ||
DERIVATIVE INSTRUMENTS AND FAIR VALUE [Abstract] | ' | ' |
Material ineffectiveness | $0 | ' |
Net deferred loss on interest rate swap included in other liabilities | 25,000 | 32,000 |
Number of counterparties failed to perform as expected, minimum | 1 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of interest rate swap included in accumulated other comprehensive loss | 16,483 | 21,115 |
Interest rate swap included in accumulated other comprehensive loss, tax effect | 8,492 | 10,877 |
Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest Rate Swap, net | 24,975 | 31,992 |
Total | 24,975 | 31,992 |
Recurring [Member] | Quoted Prices in Active Markets for Identical assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest Rate Swap, net | 0 | 0 |
Total | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest Rate Swap, net | 24,975 | 31,992 |
Total | 24,975 | 31,992 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest Rate Swap, net | 0 | 0 |
Total | 0 | 0 |
Carrying Amount [Member] | ' | ' |
Fair values and carrying values of short-term instruments [Abstract] | ' | ' |
Short-term borrowings and long-term debt | 32,604,204 | 24,568,536 |
Fair Value [Member] | ' | ' |
Fair values and carrying values of short-term instruments [Abstract] | ' | ' |
Short-term borrowings and long-term debt | $32,604,204 | $24,568,536 |
COSTS_AND_ESTIMATED_EARNINGS_O2
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Costs and Estimated Earnings on Uncompleted Contracts [Line Items] | ' | ' | ' |
Costs incurred on uncompleted contracts | $357,765,561 | ' | $321,552,523 |
Estimated earnings | 88,465,217 | ' | 126,285,484 |
Sub-total | 446,230,778 | ' | 447,838,007 |
Less billings to date | 373,013,627 | ' | 335,517,041 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 73,217,151 | ' | 112,320,966 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 73,560,852 | ' | 112,597,136 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -343,701 | ' | -276,170 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 73,217,151 | ' | 112,320,966 |
Decrease in estimated gross profits on contracts due to revisions | 41,820,000 | 2,797,000 | ' |
Percentage of decrease due to change in estimate on the company's A-10 program (in hundredths) | 95.00% | ' | ' |
U.S. Government [Member] | ' | ' | ' |
Costs and Estimated Earnings on Uncompleted Contracts [Line Items] | ' | ' | ' |
Costs incurred on uncompleted contracts | 283,389,597 | ' | 259,050,407 |
Estimated earnings | 54,647,673 | ' | 95,590,879 |
Sub-total | 338,037,270 | ' | 354,641,286 |
Less billings to date | 295,396,600 | ' | 272,783,120 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 42,640,670 | ' | 81,858,166 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 42,640,670 | ' | 81,858,166 |
Commercial [Member] | ' | ' | ' |
Costs and Estimated Earnings on Uncompleted Contracts [Line Items] | ' | ' | ' |
Costs incurred on uncompleted contracts | 74,375,964 | ' | 62,502,116 |
Estimated earnings | 33,817,544 | ' | 30,694,605 |
Sub-total | 108,193,508 | ' | 93,196,721 |
Less billings to date | 77,617,027 | ' | 62,733,921 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 30,576,481 | ' | 30,462,800 |
Costs and estimated earnings in excess of billings on uncompleted contracts | $30,576,481 | ' | $30,462,800 |
INCOME_PER_COMMON_SHARE_Detail
INCOME PER COMMON SHARE (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2013 | Jun. 30, 2013 | |
INCOME PER COMMON SHARE [Abstract] | ' | ' |
Incremental shares used in calculation of diluted income per share (in shares) | 64,202 | 64,202 |
Incremental shares not included in calculation of diluted earnings per share (in shares) | 239,734 | 239,734 |
LINE_OF_CREDIT_Details
LINE OF CREDIT (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' | ' |
Outstanding amount under line of credit facility | $29,850,000 | $21,350,000 |
Sovereign Revolving Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Outstanding amount under line of credit facility | 29,850,000 | ' |
Interest rate on revolving credit facility (in hundredths) | 3.25% | ' |
Sovereign Revolving Facility [Member] | Restated Agreement [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Revolving credit facility under credit agreement | $35,000,000 | ' |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Mar. 09, 2012 | Dec. 31, 2012 | Mar. 09, 2012 |
Santander Term Facility [Member] | Santander Term Facility [Member] | Term loan [Member] | Term loan [Member] | Term loan [Member] | ||
Interest Rate Swap [Member] | Santander Term Facility [Member] | Santander Term Facility [Member] | Santander Term Facility [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount of term loan | ' | ' | ' | ' | ' | $4,500,000 |
Period of amortization | ' | ' | ' | ' | '5 years | ' |
Description of variable rate basis | ' | 'Santander Term Facility bears interest at the lower of LIBOR plus 3% or Santander Bank's prime rate. | ' | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | 3.00% | ' | ' |
Period of derivative contract | ' | ' | '5 years | ' | ' | ' |
Notional amount | ' | ' | 4,500,000 | ' | ' | ' |
Rate of interest on notional amount (in hundredths) | ' | ' | 4.11% | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | 3.00% | ' | ' | ' |
Effect of interest rate derivative (in hundredths) | ' | ' | 4.11% | ' | ' | ' |
Maturities of long-term debt [Abstract] | ' | ' | ' | ' | ' | ' |
2015 | 976,981 | ' | ' | ' | ' | ' |
2016 | 968,019 | ' | ' | ' | ' | ' |
2017 | 778,685 | ' | ' | ' | ' | ' |
2018 | 15,711 | ' | ' | ' | ' | ' |
Thereafter | 14,808 | ' | ' | ' | ' | ' |
Long-term debt | 2,754,204 | ' | ' | ' | ' | ' |
Capital leases and notes payable | 204,204 | ' | ' | ' | ' | ' |
Current portion of capital leases and notes payable | $76,981 | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
INCOME TAXES [Abstract] | ' | ' | ' | ' |
Income taxe benefit | $15,215,000 | ($800,000) | $14,435,000 | ($1,550,000) |
Effective income tax rate (in hundredths) | 31.00% | ' | 31.00% | ' |
MAJOR_CUSTOMERS_Details
MAJOR CUSTOMERS (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Customer | Customer | Customer | |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Number of major commercial customers contributed to revenue | 3 | 3 | ' |
Number of large commercial customers accounted for major share in costs and estimated earnings in excess of billings on uncompleted contracts | 4 | ' | 4 |
Number of large customers included in accounts receivable of entity | 3 | ' | 3 |
U.S. Government [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue accounted by major customers (in hundredths) | 1.00% | 1.00% | ' |
Percentage of costs and estimated earnings in excess of billings on uncompleted contracts accounted by major customers (in hundredths) | 1.00% | ' | 1.00% |
Customer A [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue accounted by major customers (in hundredths) | 29.00% | 27.00% | ' |
Percentage of costs and estimated earnings in excess of billings on uncompleted contracts accounted by major customers (in hundredths) | 27.00% | ' | 40.00% |
Percentage of accounts receivable from major customers (in hundredths) | 29.00% | ' | 28.00% |
Customer B [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue accounted by major customers (in hundredths) | 21.00% | 22.00% | ' |
Percentage of costs and estimated earnings in excess of billings on uncompleted contracts accounted by major customers (in hundredths) | 26.00% | ' | 17.00% |
Percentage of accounts receivable from major customers (in hundredths) | 29.00% | ' | 24.00% |
Customer C [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenue accounted by major customers (in hundredths) | 15.00% | 19.00% | ' |
Percentage of costs and estimated earnings in excess of billings on uncompleted contracts accounted by major customers (in hundredths) | 14.00% | ' | 16.00% |
Percentage of accounts receivable from major customers (in hundredths) | 12.00% | ' | 20.00% |
Customer D [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of costs and estimated earnings in excess of billings on uncompleted contracts accounted by major customers (in hundredths) | 9.00% | ' | 10.00% |