Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 04, 2020 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SERVOTRONICS INC /DE/ | ||
Entity Central Index Key | 0000089140 | ||
Trading Symbol | svt | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 2,477,099 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 15,269,041 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 2,029 | $ 2,598 |
Accounts receivable, net | 13,183 | 10,586 |
Inventories, net | 20,151 | 15,150 |
Prepaid income taxes | 416 | 314 |
Other current assets | 522 | 496 |
Total current assets | 36,301 | 29,144 |
Property, plant and equipment, net | 12,717 | 11,875 |
Deferred income taxes | 107 | 295 |
Other non-current assets | 345 | 371 |
Total Assets | 49,470 | 41,685 |
Current liabilities: | ||
Current portion of long-term debt | 548 | 548 |
Current portion of equipment financing and capital leases | 301 | 175 |
Dividend payable | 17 | 13 |
Accounts payable | 4,458 | 2,494 |
Accrued employee compensation and benefits costs | 2,283 | 1,908 |
Other accrued liabilities | 1,035 | 865 |
Total current liabilities | 8,642 | 6,003 |
Long-term debt | 5,170 | 2,410 |
Post retirement obligation | 2,126 | 1,759 |
Shareholders' equity: | ||
Common stock, par value $0.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,392,576 (2,399,207 - 2018) shares | 523 | 523 |
Capital in excess of par value | 14,358 | 14,250 |
Retained earnings | 20,484 | 18,788 |
Accumulated other comprehensive gain | 98 | 35 |
Employee stock ownership trust commitment | (460) | (561) |
Treasury stock, at cost 125,504 (117,979 - 2018) shares | (1,471) | (1,522) |
Total shareholders' equity | 33,532 | 31,513 |
Total Liabilities and Shareholders' Equity | $ 49,470 | $ 41,685 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 2,614,506 | 2,614,506 |
Common stock, shares outstanding | 2,399,576 | 2,392,207 |
Treasury stock, shares | 127,504 | 117,979 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
Revenue | $ 55,272 | $ 47,857 | ||||||||
Costs of goods sold, inclusive of depreciation and amortization | 43,146 | 35,772 | ||||||||
Gross margin | 12,126 | 12,085 | ||||||||
Operating Expenses: | ||||||||||
Selling, general and administrative | 9,313 | 7,743 | ||||||||
Interest expense | 125 | 107 | ||||||||
Total operating expenses | 9,438 | 7,850 | ||||||||
Income before income tax provision | 2,688 | 4,235 | ||||||||
Income tax provision | 579 | 737 | ||||||||
Net income | $ 165 | $ 1,132 | $ 714 | $ 98 | $ 1,003 | $ 1,457 | $ 707 | $ 331 | $ 2,109 | $ 3,498 |
Basic | ||||||||||
Net Income per share (in dollars per share) | $ 0.91 | $ 1.54 | ||||||||
Diluted | ||||||||||
Net income per share (in dollars per share) | $ 0.88 | $ 1.49 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income | $ 2,109 | $ 3,498 |
Other comprehensive income: | ||
Retirement benefits adjustment, net of income taxes | 63 | 67 |
Total comprehensive income | $ 2,172 | $ 3,565 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows related to operating activities: | ||
Net Income | $ 2,109,000 | $ 3,498,000 |
Adjustments to reconcile net income to net cash (used) generated by operating activities: | ||
Depreciation and amortization | 1,268,000 | 1,025,000 |
Loss on disposal of property | 137,000 | 1,000 |
Stock based compensation | 316,000 | 276,000 |
Increase in allowance for doubtful accounts | 167,000 | 21,000 |
(Decrease)/Increase in inventory reserve | (106,000) | 105,000 |
(Decrease)/Increase in warranty reserve | (8,000) | 389,000 |
Deferred income tax | 188,000 | 114,000 |
Change in assets and liabilities: | ||
Accounts receivable | (2,764,000) | (2,183,000) |
Inventories | (4,895,000) | (2,464,000) |
Prepaid income taxes | (102,000) | (314,000) |
Other current assets | (26,000) | (247,000) |
Other non-current assets | 49,000 | |
Accounts payable | 1,964,000 | 1,117,000 |
Accrued employee compensation and benefit costs | 375,000 | 124,000 |
Other accrued liabilities | 177,000 | (399,000) |
Accrued income taxes | (414,000) | |
Post retirement obligation | 430,000 | 83,000 |
Employee stock ownership trust payment | 101,000 | 101,000 |
Net cash (used) generated by operating activities | (620,000) | 833,000 |
Cash flows related to investing activities: | ||
Capital expenditures - property, plant and equipment | (2,271,000) | (1,866,000) |
Net cash used by investing activities | (2,271,000) | (1,866,000) |
Cash flows related to financing activities: | ||
Principal payments on long-term debt | (548,000) | (548,000) |
Principal payments on equipment financing lease obligations | (285,000) | (160,000) |
Proceeds from equipment note and equipment financing lease | 721,000 | 210,000 |
Proceeds from the line of credit | 3,000,000 | |
Purchase of treasury shares | (157,000) | (175,000) |
Cash dividend | (409,000) | (403,000) |
Net cash provided (used) by financing activities | 2,322,000 | (1,076,000) |
Net decrease in cash | (569,000) | (2,109,000) |
Cash at beginning of year | 2,598,000 | 4,707,000 |
Cash at end of year | 2,029,000 | $ 2,598,000 |
Supplemental Cash Flow Information: | ||
Equipment acquired through financing paid directly to vendor | $ 333,000 |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Business Description and Summary of Significant Accounting Policies | |
Business Description and Summary of Significant Accounting Policies | 1. Business Description and Summary of Significant Accounting Policies Business Description Servotronics, Inc. and its subsidiaries design, manufacture and market advanced technology products consisting primarily of control components and consumer products consisting of knives and various types of cutlery and other edged products. Principles of Consolidation The consolidated financial statements include the accounts of Servotronics, Inc. and its wholly-owned subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated upon consolidation. Cash The Company considers cash to include all checking, savings and money market accounts. Accounts Receivable The Company grants credit to substantially all of its customers and carries its accounts receivable at original invoice amount less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts based on history of past write-offs, collections, and current credit conditions. The allowance for doubtful accounts amounted to approximately $337,000 at December 31, 2019 and $170,000 at December 31, 2018. The Company does not accrue interest on past due receivables. Note Receivable There was a note receivable with a balance of $125,000 as of September 30, 2019 and recorded as other current assets in the accompanying balance sheet. The note was with a third party with the intent to develop a business venture. As of October 21, 2019, the note receivable plus an additional $18,000 was converted to capitalized tooling and owned by the CPG. The total capitalized tooling is approximately $143,000. As of December 9, 2019 the business venture was terminated. The capitalized tooling, computer equipment, a 3D printer, final payments and interest owed the CPG were expensed. The approximate costs of the dissolution of $237,000 is included in CPG's Selling, general & administrative expenses. Revenue Recognition Revenues are recognized at the time of shipment of goods, transfer of title and customer acceptance, as required. Our revenue transactions generally consist of a single performance obligation to transfer contracted goods and are not accounted for under industry-specific guidance. Purchase orders generally include specific terms relative to quantity, item description, specifications, price, customer responsibility for in-process costs, delivery schedule, shipping point, payment and other standard terms and conditions of purchase. Service sales, principally representing repair, are recognized at the time of shipment of goods. The costs incurred for nonrecurring engineering, development and repair activities of our products under agreements with commercial customers are expensed as incurred. Subsequently, the revenue is recognized as products are delivered to the customers with the approval by the customers. Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods and services to a customer. The Company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when the company satisfies a performance obligation. Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g., sales and use taxes). Revenue includes payments for shipping activities that are reimbursed by the customer to the Company. Performance obligations are satisfied as of a point in time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. As a significant portion of the Company’s revenue are recognized at the time of shipment, transfer of title and customer acceptance, there is no significant judgment applied to determine the timing of the satisfaction of performance obligations or transaction price. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The Company generally receives payment for these contracts within the payment terms negotiated and agreed upon by each customer contract. Warranty and repair obligations are assessed on all returns. Revenue is not recorded on any warranty returns. The Company warrants its products against design, materials and workmanship based on an average of twenty-seven months. The Company determines warranty reserves needed based on actual average costs of warranty units shipped and current facts and circumstances. As of December 31, 2019 and December 31, 2018 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $420,000 and $428,000, respectively. This amount is reflected in other accrued expenses in the accompanying balance sheet. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer. Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes all costs incurred to bring each product to its present location and condition. Market provisions in respect of lower of cost or market adjustments and inventory expected to be used in greater than two year are applied to the gross value of the inventory through a reserve of approximately $1,437,000 and $1,543,000 at December 31, 2019 and December 31, 2018, respectively. Pre-production and start-up costs are expensed as incurred. The purchase of suppliers’ minimum economic quantities of material such as steel, etc. may result in a purchase of quantities exceeding two years of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time or minimum stocking requirements, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. Shipping and Handling Costs Shipping and handling costs are classified as a component of cost of goods sold. Property, Plant and Equipment Property, plant and equipment is carried at cost; expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for tax purposes. Depreciation expense includes the amortization of capital lease assets. The estimated useful lives of depreciable properties are generally as follows: Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York and Texas state income tax returns and various separate state income tax returns. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at December 31, 2019 or December 31, 2018, and did not recognize any interest and/or penalties in its consolidated statements of income during the years ended December 31, 2019 and 2018. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of December 31, 2019 and December 31, 2018. The 2016 through 2018 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid during the twelve month periods ended December 31, 2019 and 2018 amounted to approximately $524,000 and $1,325,000, respectively. Interest paid during the twelve month periods ended December 31, 2019 and 2018 amounted to approximately $125,000 and $107,000, respectively. Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Due to the losses incurred by our CPG segment, we performed a test for recoverability of the long-lived assets by comparing its carrying value to the future undiscounted cash flows that we expect will be generated by the asset group. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. The Company has determined that no impairment of long-lived assets existed at December 31, 2019 and December 31, 2018. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain balances as previously reported were reclassified to conform with classifications adopted in the current period. Research and Development Costs Research and development costs are expensed as incurred. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institutions. The Company had sales of advanced technology products to two customers, including various divisions and subsidiaries of a common parent company, which represented more than 10% of consolidated revenues in 2019. Total revenues from these two customers amounted to approximately 55% in 2019 as compared to the same two customers amounting to approximately 49% of the Company’s consolidated revenues in 2018. No other customers of the ATG or CPG represented more than 10% of the Company’s consolidated revenues in either of these years. Refer to Note 11, Business Segments, for disclosures related to business segments of the Company. Fair Value of Financial Instruments Accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on variable interest rates and the borrowing rates currently available to the Company for loans similar to its long-term debt, the fair value approximates its carrying amount. Recent Accounting Pronouncements Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The new standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months and requires both lessees and lessors to disclose certain key information about lease transactions. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard during the first quarter of 2019. The adoption of this guidance did not have a material impact on the Company’s financial statements and related disclosures. The Company originally financed four pieces of equipment through a lease line of credit and have recognized a lease liability and a ROU (Right of Use) asset for each piece of equipment. During 2019 one piece of equipment was traded and financed through our equipment note obligations leaving three remaining ROU assets. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | 2. Inventories December 31, December 31, 2019 2018 ($000's omitted) Raw material and common parts $ 14,707 $ 9,088 Work-in-process 4,158 5,123 Finished goods 2,723 2,482 21,588 16,693 Less inventory reserve (1,437) (1,543) Total inventories $ 20,151 $ 15,150 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 3. Property, Plant and Equipment December 31, December 31, 2019 2018 ($000's omitted) Land $ 7 $ 7 Buildings 11,017 10,452 Machinery, equipment and tooling 20,695 18,345 Construction in progress 331 1,258 32,050 30,062 Less accumulated depreciation and amortization (19,333) (18,187) Property, plant and equipment, net $ 12,717 $ 11,875 Depreciation and amortization expense amounted to approximately $1,268,000 and $1,025,000 for the year ended December 31, 2019 and 2018, respectively. Depreciation expense amounted to approximately $1,178,000 and $948,000 for the year ended December 31, 2019 and 2018, respectively. Amortization expense primarily related to capital leases amounted to approximately $90,000 and $77,000 for the year ended December 31, 2019 and 2018, respectively. The Company maintains property and casualty insurance in amounts adequate for the risk and nature of its assets and operations and which are generally customary in its industry. The Company's ROU assets included in machinery, equipment and tooling had a net book value of approximately $728,000 ($811,000 - 2018). As of December 31, 2019, there is approximately $331,000 ($1,258,000 – 2018) of construction in progress (CIP) included in property, plant and equipment all of which is related to capital projects. There is approximately $280,000 in CIP for the machinery and equipment and self-constructed assets, $32,000 of computer equipment and $19,000 for building improvements primarily at the Advance Technology Group. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt | |
Long-Term Debt | 4. Long-Term Debt December 31, December 31, 2019 2018 ($000's omitted) Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) (A) $ 3,000 $ — Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 (B) 1,310 1,572 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 (B) 571 857 Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) (C) 670 0 Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) (D) 468 704 6,019 3,133 Less current portion (849) (723) $ 5,170 $ 2,410 A.) At December 31, 2019, the Company had a $4,000,000 line of credit. As of March 20, 2020, the Company increased its line of credit to $6,000,000. The interest rate is a rate per year equal to the bank’s prime rate or Libor plus 1.4%. In addition, effective June 17, 2019, the Company is required to pay a commitment fee of 0.15% on the unused portion of the line of credit. The line of credit expires June 19, 2021. There was $3,000,000 balance outstanding at December 31, 2019 and $0 balance at December 31, 2018. B.) The term loans and line of credit are secured by all personal property of the Company with the exception of certain equipment that was purchased from proceeds of government grants. Certain lenders require the Company to comply with debt covenants as described in the specific loan documents, including a debt service ratio. At December 31, 2019 and December 31, 2018 the Company was in compliance with these covenants. C.) The Company had an equipment loan facility in the amount of $2,500,000 available until November 30, 2019. This line was non-revolving and non-renewable. The loan term for the equipment covered by the agreement is 60 months. Monthly payments are fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. There was approximately $670,000 outstanding at December 31, 2019 and no balance outstanding at December 31, 2018. D.) The Company established a lease line of credit for equipment financing in the amount of $1,000,000 available until June 28, 2018. This line was non-revolving and non-renewable. The lease term for equipment covered by the lease line of credit is 60 months. Monthly payments are fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. There was approximately $468,000 outstanding at December 31, 2019 and $704,000 at December 31, 2018. Principal maturities of long-term debt are as follows: 2020 - $849,000, 2021 - $4,635,000, 2022 - $288,000, 2023 - $154,000, and 2023 - $93,000. Remaining principal payments for the capital note and capital lease obligations for each of the next five years: December 31, 2019 Year ($000's omitted) 331 331 316 169 97 Total principal and interest payments 1,244 Less amount representing interest (106) Present value of net minimum lease payments 1,138 Less current portion (301) Long term principle payments $ 837 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 5. Employee Benefit Plans Employee Stock Ownership Plan (ESOP) In 1985, the Company established an employee stock ownership plan (ESOP) for the benefit of employees who meet certain minimum age and service requirements. Upon inception of the ESOP, the Company borrowed $2,000,000 from a bank and lent the proceeds to the trust established under the ESOP to purchase shares of the Company’s common stock. The Company’s loan to the trust is at an interest rate approximating the prime rate and is repayable to the Company over a 40‑year term ending in December 2024. During 1987 and 1988, the Company loaned an additional $1,942,000 to the trust under terms similar to those under the Company’s original loan. ESOP shares are held by the plan trustees in a suspense account until allocated to participant accounts. Each year the Company makes contributions to the trust sufficient to enable the trust to repay the principal and interest due to the Company under the trust loans. As the loans are repaid, shares are released from the suspense account pro rata based on the portion of the aggregate loan payments that are paid during the year. During 2010, the ESOP plan was amended to allow dividends on unallocated shares to be distributed to participants in cash, unless otherwise directed. ESOP shares released from the suspense account are allocated to participants on the basis of their relative compensation in the year of allocation and/or on the participant’s account balance. For this purpose, “compensation” means taxable pay. If Servotronics shares are not readily tradable on an established securities market at the times of an ESOP participant’s termination of employment or retirement and if such ESOP participant requests that his/her ESOP distributed shares be repurchased by the Company, the Company is obligated to do so. The Company’s shares currently trade on NYSE MKT, formerly known as the American Stock Exchange. There were no outstanding shares subject to the repurchase obligation at December 31, 2019. Since inception of the ESOP, 414,515 shares have been allocated, exclusive of shares distributed to ESOP participants. At December 31, 2019 and 2018, 87,425 and 104,320 shares, respectively, remain unallocated. Related compensation expense associated with the Company’s ESOP, which is equal to the principal reduction on the loans receivable from the trust, amounted to approximately $101,000 in both 2019 and 2018. Included as a reduction to shareholders’ equity is the ESOP trust commitment which represents the remaining indebtedness of the trust to the Company. Employees are entitled to vote allocated shares and the ESOP trustees are entitled to vote unallocated shares and those allocated shares not voted by the employees. Other Postretirement Benefit Plans The Company provides certain postretirement health and life insurance benefits for the Company’s Chief Executive Officer and President, Kenneth Trbovich. Upon retirement and after attaining at least the age of 65, the Company will pay the annual cost of health insurance for the retired executive and his dependents and will continue the Company provided life insurance offered at the time of retirement. The retiree’s health insurance benefits ceases upon the death of the retired executive. The actuarially calculated future obligation of the benefits at December 31, 2019 and 2018 is approximately $583,000 and $644,000, respectively, excluding the estimated liability related to postretirement benefits for the former Executive Officer discussed in Note 8, Commitments and Contingencies. Additional expense of approximately $100,000 per year is expected to be paid subsequent to December 31, 2019 under the Plan. Estimated future annual expenses associated with the plan are immaterial. Included in accumulated other comprehensive income for 2019 and 2018 is approximately $63,000 and $67,000, respectively, net of deferred taxes, associated with the unrecognized service cost of the plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The income tax provision from operations included in the consolidated statements of income consists of the following: December 31, December 31, 2019 2018 ($000’s omitted) Current: Federal $ 363 $ 639 State 45 2 408 641 Deferred: Federal 171 96 171 96 $ 579 $ 737 The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate based upon the total income tax provision from operations is as follows: December 31, December 31, 2019 2018 Federal statutory rate 21.0 % 21.0 % Permanent non-deductible expenses 2.6 % 0.3 % Business credits (3.0) % (0.6) % ESOP dividend (0.6) % (0.4) % Stock compensation (0.1) % (0.4) % Domestic production activities deduction 0.0 % (0.4) % Foreign-derived intangible income deduction (1.2) % (1.8) % State taxes, net of federal benefit 1.3 % 0.0 % Other 1.5 % (0.3) % 21.5 % 17.4 % At December 31, 2019 and 2018, the deferred tax assets (liabilities) were comprised of the following: December 31, December 31, 2019 2018 ($000’s omitted) Deferred Tax Assets: Inventories $ 473 $ 417 Accrued employees compensation and benefits costs 446 478 Accrued arbitration award and related liability 324 234 Net operating loss and credit carryforwards 236 248 Bad debt reserve 71 37 Warranty reserve 88 90 Total deferred tax assets 1,638 1,504 Valuation allowance (236) (248) Net deferred tax assets 1,402 1,256 Deferred tax liabilities: Prepaid expenses (32) (28) Property, plant and equipment (1,238) (910) Other — (14) Minimum pension liability (25) (9) Total deferred tax liabilities (1,295) (961) Net deferred tax assets $ 107 $ 295 In assessing the ability of the Company to realize the benefit of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based upon the level of historical taxable income, the opportunity for net operating loss carrybacks, and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient taxable income to realize the benefits of these deductible differences at December 31, 2019, except for a valuation allowance of $236,000 ($248,000 – 2018) related to certain state net operating loss carryforwards, state tax credit carryforwards and other state net deferred tax assets. At December 31, 2019, the Company has net operating loss carryforwards with full valuation allowances from Pennsylvania of approximately $1,620,000 ($1,805,000 – 2018), which begin expiring in 2020, and Arkansas of approximately $0 ($31,000 – 2018). The Company also has a New York state tax credit carryforward at December 31, 2019 of approximately $139,000 ($131,000 – 2018), which begins to expire in 2023. There are no uncertain tax positions or unrecognized tax benefits for 2019 and 2018. The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The 2016 through 2018 Federal and state tax returns remain subject to examination. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | 7. Shareholders’ Equity Twelve-month Period Ended December 31, 2019 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2019 $ 18,788 $ 35 $ 523 $ 14,250 $ (561) $ (1,522) $ 31,513 Purchase of treasury shares — — — — — (128) (128) Stock based compensation — — — 14 — 44 58 Net Income 98 — — — — — 98 March 31, 2019 $ 18,886 $ 35 $ 523 $ 14,264 $ (561) $ (1,606) $ 31,541 Dividends declared ($0.16 per share) (413) — — — — — (413) Purchase of treasury shares — — — — — (21) (21) Stock based compensation — — — 34 — 61 95 Net Income 714 — — — — — 714 June 30, 2019 $ 19,187 $ 35 $ 523 $ 14,298 $ (561) $ (1,566) $ 31,916 Purchase of treasury shares — — — — — (8) (8) Stock based compensation — — — 28 — 58 86 Net Income 1,132 — — — — — 1,132 September 30, 2019 $ 20,319 $ 35 $ 523 $ 14,326 $ (561) $ (1,516) $ 33,126 Retirement benefits adjustment — 63 — — 101 — 164 Stock based compensation — — — 32 — 45 77 Net Income 165 — — — — — 165 December 31, 2019 $ 20,484 $ 98 $ 523 $ 14,358 $ (460) $ (1,471) $ 33,532 Twelve-month Period Ended December 31, 2018 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2018 $ 15,709 $ (32) $ 523 $ 14,171 $ (662) $ (1,544) $ 28,165 Purchase of treasury shares — — — — — (117) (117) Net Income 331 — — — — — 331 March 31, 2018 $ 16,040 $ (32) $ 523 $ 14,171 $ (662) $ (1,661) $ 28,379 Dividends declared ($0.16 per share) (416) — — — — — (416) Purchase of treasury shares — — — — — (33) (33) Stock based compensation (6) 6 — 21 — 64 85 Net Income 707 — — — — — 707 June 30, 2018 $ 16,325 $ (26) $ 523 $ 14,192 $ (662) $ (1,630) $ 28,722 Dividends declared ($0.16 per share) 3 — — — — — 3 Stock based compensation — — — 34 — 64 98 Net Income 1,457 — — — — — 1,457 September 30, 2018 $ 17,785 $ (26) $ 523 $ 14,226 $ (662) $ (1,566) $ 30,280 Compensation Expense — — — — 101 — 101 Retirement benefits adjustment — 67 — — — — 67 Purchase of treasury shares — — — — — (25) (25) Stock based compensation — (6) — 24 — 69 87 Net Income 1,003 — — — — — 1,003 December 31, 2018 $ 18,788 $ 35 $ 523 $ 14,250 $ (561) $ (1,522) $ 31,513 The Company’s Board of Directors authorized the purchase of up to 450,000 shares of its common stock in the open market or in privately negotiated transactions. As of December 31, 2019, the Company has purchased 360,255 shares and there remain 89,745 shares available to purchase under this program. There were 5,232 shares purchased by the Company in 2019. On January 1, 2019, 26,250 shares of restricted stock vested of which 9,729 shares were withheld by the Company for approximately $99,000 to satisfy statutory minimum withholding tax requirements for those participants who elected this option as permitted under the Company’s 2012 Long-Term Incentive Plan. On May 25, 2018, the Company issued 78,750 shares of restricted stock to Executive Officers and certain key management of the Company under the Company’s 2012 Long-Term Incentive Plan. The restricted share awards have varying vesting periods between January 2019 and January 2021; however, these shares have voting rights and accrue dividends prior to vesting. The accrued dividends are paid upon vesting of the restricted shares. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be approximately $735,000 and will be recognized over the requisite service period. The Company's director compensation policy provides that non-employee directors receive a portion of their annual retainer in the form of restricted stock under the Company’s 2012 Long-Term Incentive Plan. These shares vest quarterly over a twelve month service period, have voting rights and accrue dividends that are paid upon vesting. The aggregate amount of expense to the Company, measured based on the grant date fair value, will be recognized over the requisite service period. An aggregate of 4,288 restricted shares were issued on May 25, 2018 with a grant date fair value of $40,000. An aggregate of 7,836 restricted shares were issued on April 26, 2019 with a grant date fair value of $100,000. Included in the year ended December 31, 2019 and 2018 is approximately $316,000 and $276,000, respectively, of stock-based compensation expense related to the restrictive share awards. We have approximately $286,000 in unvested shares to be recognized in 2020. On May 15, 2019 the Company announced that its Board of Directors declared a $0.16 per share cash dividend. The dividend was subsequently paid on July 15, 2019 to shareholders of record on June 28, 2019 and was approximately $413,000 in the aggregate. These dividends do not represent that the Company will pay dividends on a regular or scheduled basis. The amount is recorded in dividends payable and as a reduction to retained earnings on the accompanying consolidated balance sheet. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on the earnings per share that were outstanding for the period. The dilutive effect of unvested restrictive stock is determined using the treasury stock method. December 31, December 31, 2019 2018 ($000's omitted except for per share data) Net Income $ 2,109 $ 3,498 Weighted average common shares outstanding (basic) 2,330 2,272 Unvested restricted stock 56 81 Weighted average common shares outstanding (diluted) 2,386 2,353 Basic Net income per share $ 0.91 $ 1.54 Diluted Net income per share $ 0.88 $ 1.49 Share Based Payments The Company’s 2012 Long-Term Incentive Plan was approved by the shareholders at the 2012 Annual Meeting of Shareholders. This plan authorizes the issuance of up to 300,000 shares. As of December 31, 2019, there is no unrecognized compensation related to the unvested restricted shares vested on January 1, 2020. A summary of the status of restricted share awards granted under all employee plans is presented below: Weighted Average Grant Date Shares Fair Value Restricted Share Activity: Unvested at December 31, 2017 28,500 $ 7.96 Granted in 2018 83,038 9.33 Vested in 2018 30,644 $ 8.06 Unvested at December 31, 2018 80,894 $ 9.33 Granted in 2019 7,836 $ 12.77 Forfeited in 2019 2,000 $ 9.33 Vested in 2019 32,314 $ 9.75 Unvested at December 31, 2019 54,416 $ 9.58 Shareholders’ Rights Plan During 2012, the Company’s Board of Directors adopted a shareholders’ rights plan (the “Rights Plan”) and simultaneously declared a dividend distribution of one right for each outstanding share of the Company’s common stock outstanding at October 15, 2012. The Rights Plan replaced a previous shareholders rights plan that was adopted in 2002 and expired on August 28, 2012. The rights do not become exercisable until the earlier of (i) the date of the Company’s public announcement that a person or affiliated group other than Dr. Nicholas D. Trbovich, Kenneth D. Trbovich or the ESOP trust (an “Acquiring Person”) has acquired, or obtained the right to acquire, beneficial ownership of 25% or more of the Company’s common stock (excluding shares held by the ESOP trust) or (ii) ten business days following the commencement of a tender offer that would result in a person or affiliated group becoming an Acquiring Person. The exercise price of a right has been established at $32.00. Once exercisable, each right would entitle the holder to purchase one one-hundredth of a share of Series A Junior Participating Preferred Stock. In the event that any person becomes an Acquiring Person, each right would entitle any holder other than the Acquiring Person to purchase common stock or other securities of the Company having a value equal to three times the exercise price. The Board of Directors has the discretion in such event to exchange two shares of common stock or two one-hundredths of a share of preferred stock for each right held by any holder other than the Acquiring Person. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Post retirement obligation. As previously disclosed in filings with the Securities and Exchange Commission (“SEC”), the Company, under an employment agreement, is expected to pay post-employment health related benefits to a former Executive Officer of the Company (the “Former Employee”), of which approximately $1,543,000 and $1,115,000 has been accrued as of December 31, 2019 and December 31, 2018, and is reflected as Post Retirement Obligation in the accompanying balance sheet. Employment Agreements. The Company provides certain post-employment health and life insurance benefits for its Chief Executive Officer and President Kenneth Trbovich. Upon retirement and after attaining at least the age of 65, the Company will pay for the retired Executive’s and dependent’s health benefits and will continue the Company-provided life insurance offered at the time of retirement. The retiree’s health insurance benefits ceases upon the death of the retired executive. Approximately $583,000 and $644,000 has been accrued as of December 31, 2019 and December 31, 2018, respectively, and is reflected as Post Retirement Obligation in the accompanying balance sheet. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2019 | |
Litigation | |
Litigation | 9. Litigation Litigation. The Company has pending litigation relative to leases of certain equipment and real property with a former subsidiary, Aero, Inc. Aero, Inc. is suing Servotronics, Inc. and its wholly owned subsidiary and has alleged damages in the amount of $3,000,000. The Company has filed a response to the Aero, Inc. lawsuit and has also filed a counter-claim in the amount of $3,191,000. The Company has not considered the risk of loss to be probable, and is unable to reasonably or accurately estimate the likelihood and amount of any liability or benefit that may be realized as a result of this litigation. Accordingly, no gain or loss has been recognized in the accompanying financial statements related to this litigation. There are no other legal proceedings currently pending by or against the Company other than ordinary routine litigation incidental to the business which is not expected to have a material adverse effect on the business or earnings of the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | 10. Related Party Transactions The Company paid legal fees and disbursements of approximately $197,000 and $141,000 in the year ended December 31, 2019 and 2018, respectively, for services provided by a law firm that is owned by a member of the Company’s Board of Directors. Additionally, the Company had accrued unbilled legal fees at December 31, 2019 and 2018 of approximately $52,000 and $19,000, respectively, with this firm. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Business Segments | |
Business Segments | 11. Business Segments The Company operates in two business segments, Advanced Technology Group (“ATG”) and Consumer Products Group (“CPG”). The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and are managed separately. Operations in ATG primarily involve the design, manufacture, and marketing of servo-control components (i.e., torque motors, control valves, actuators, etc.) for government, commercial and industrial applications. CPG’s operations involve the design, manufacture and marketing of a variety of cutlery products for use by consumers and government agencies. The Company derives its primary sales revenue from domestic customers, although a portion of finished products are for foreign end use. Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): ATG CPG Consolidated Years Ended Years Ended Years Ended December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Revenues from unaffiliated customers $ 48,519 $ 40,415 $ 6,753 $ 7,442 $ 55,272 $ 47,857 Cost of goods sold, inclusive of depreciation (35,632) (28,587) (7,514) (7,185) (43,146) $ (35,772) Gross margin 12,887 11,828 (761) 258 12,126 12,085 Gross margin % 26.6 % 29.3 % (11.3) % 3.5 % 21.9 % 25.3 % Selling, general and administrative (6,588) (5,423) (2,725) (2,320) (9,313) (7,743) Interest (97) (73) (28) (34) (125) (107) Total costs and expenses (42,317) (34,083) (10,268) (9,539) (52,584) (43,622) Income (loss) before income tax provision 6,203 6,332 (3,515) (2,097) 2,688 4,235 Income tax provision (benefits) 1,336 1,102 (757) (365) 579 737 Net income/(loss) $ 4,867 $ 5,230 $ (2,758) $ (1,732) $ 2,109 $ 3,498 Total assets $ 39,989 $ 31,647 $ 9,481 $ 10,038 $ 49,470 $ 41,685 Capital expenditures $ 1,990 $ 1,689 $ 281 $ 177 $ 2,271 $ 1,866 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events As previously disclosed subsequent to year-end 2019, the World Health Organization declared the novel coronavirus (COVID-19) outbreak a public health emergency. There have been mandates from international, federal, state and local authorities requiring forced closures of various schools, businesses and other facilities and organizations. While the closures and limitations on movement, domestically and internationally, are expected to be temporary, if the outbreak continues on its current trajectory the duration of the supply chain disruption could reduce the availability, or result in delays, of materials or supplies to or from the Company, which in turn could materially interrupt the Company’s business operations. Given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact to its results of operations. The Company’s operations are continuing in compliance with the New York Governor’s Executive Orders (202.6 202.7 202.8 and the guidance provided by New York State’s Department of Economic Development) regarding “Essential Business” in New York and Homeland Security Presidential Directive 21 which classifies certain assets and infrastructure as “critical infrastructure.” As such all personnel deemed essential will continue to report to work and the Company has implemented and will continue to monitor safeguards designed to promote social distancing and a safe working environment. |
Business Description and Summ_2
Business Description and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Business Description and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Servotronics, Inc. and its wholly-owned subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated upon consolidation. |
Cash | Cash The Company considers cash to include all checking, savings and money market accounts. |
Accounts Receivable | Accounts Receivable The Company grants credit to substantially all of its customers and carries its accounts receivable at original invoice amount less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts based on history of past write-offs, collections, and current credit conditions. The allowance for doubtful accounts amounted to approximately $337,000 at December 31, 2019 and $170,000 at December 31, 2018. The Company does not accrue interest on past due receivables. |
Note Receivable | Note Receivable There was a note receivable with a balance of $125,000 as of September 30, 2019 and recorded as other current assets in the accompanying balance sheet. The note was with a third party with the intent to develop a business venture. As of October 21, 2019, the note receivable plus an additional $18,000 was converted to capitalized tooling and owned by the CPG. The total capitalized tooling is approximately $143,000. As of December 9, 2019 the business venture was terminated. The capitalized tooling, computer equipment, a 3D printer, final payments and interest owed the CPG were expensed. The approximate costs of the dissolution of $237,000 is included in CPG's Selling, general & administrative expenses. |
Revenue Recognition | Revenue Recognition Revenues are recognized at the time of shipment of goods, transfer of title and customer acceptance, as required. Our revenue transactions generally consist of a single performance obligation to transfer contracted goods and are not accounted for under industry-specific guidance. Purchase orders generally include specific terms relative to quantity, item description, specifications, price, customer responsibility for in-process costs, delivery schedule, shipping point, payment and other standard terms and conditions of purchase. Service sales, principally representing repair, are recognized at the time of shipment of goods. The costs incurred for nonrecurring engineering, development and repair activities of our products under agreements with commercial customers are expensed as incurred. Subsequently, the revenue is recognized as products are delivered to the customers with the approval by the customers. Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods and services to a customer. The Company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when the company satisfies a performance obligation. Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g., sales and use taxes). Revenue includes payments for shipping activities that are reimbursed by the customer to the Company. Performance obligations are satisfied as of a point in time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. As a significant portion of the Company’s revenue are recognized at the time of shipment, transfer of title and customer acceptance, there is no significant judgment applied to determine the timing of the satisfaction of performance obligations or transaction price. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The Company generally receives payment for these contracts within the payment terms negotiated and agreed upon by each customer contract. Warranty and repair obligations are assessed on all returns. Revenue is not recorded on any warranty returns. The Company warrants its products against design, materials and workmanship based on an average of twenty-seven months. The Company determines warranty reserves needed based on actual average costs of warranty units shipped and current facts and circumstances. As of December 31, 2019 and December 31, 2018 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $420,000 and $428,000, respectively. This amount is reflected in other accrued expenses in the accompanying balance sheet. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes all costs incurred to bring each product to its present location and condition. Market provisions in respect of lower of cost or market adjustments and inventory expected to be used in greater than two year are applied to the gross value of the inventory through a reserve of approximately $1,437,000 and $1,543,000 at December 31, 2019 and December 31, 2018, respectively. Pre-production and start-up costs are expensed as incurred. The purchase of suppliers’ minimum economic quantities of material such as steel, etc. may result in a purchase of quantities exceeding two years of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time or minimum stocking requirements, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are classified as a component of cost of goods sold. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost; expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for tax purposes. Depreciation expense includes the amortization of capital lease assets. The estimated useful lives of depreciable properties are generally as follows: Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York and Texas state income tax returns and various separate state income tax returns. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at December 31, 2019 or December 31, 2018, and did not recognize any interest and/or penalties in its consolidated statements of income during the years ended December 31, 2019 and 2018. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of December 31, 2019 and December 31, 2018. The 2016 through 2018 federal and state tax returns remain subject to examination. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Income taxes paid during the twelve month periods ended December 31, 2019 and 2018 amounted to approximately $524,000 and $1,325,000, respectively. Interest paid during the twelve month periods ended December 31, 2019 and 2018 amounted to approximately $125,000 and $107,000, respectively. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Due to the losses incurred by our CPG segment, we performed a test for recoverability of the long-lived assets by comparing its carrying value to the future undiscounted cash flows that we expect will be generated by the asset group. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. The Company has determined that no impairment of long-lived assets existed at December 31, 2019 and December 31, 2018. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain balances as previously reported were reclassified to conform with classifications adopted in the current period. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institutions. The Company had sales of advanced technology products to two customers, including various divisions and subsidiaries of a common parent company, which represented more than 10% of consolidated revenues in 2019. Total revenues from these two customers amounted to approximately 55% in 2019 as compared to the same two customers amounting to approximately 49% of the Company’s consolidated revenues in 2018. No other customers of the ATG or CPG represented more than 10% of the Company’s consolidated revenues in either of these years. Refer to Note 11, Business Segments, for disclosures related to business segments of the Company. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on variable interest rates and the borrowing rates currently available to the Company for loans similar to its long-term debt, the fair value approximates its carrying amount. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The new standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months and requires both lessees and lessors to disclose certain key information about lease transactions. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard during the first quarter of 2019. The adoption of this guidance did not have a material impact on the Company’s financial statements and related disclosures. The Company originally financed four pieces of equipment through a lease line of credit and have recognized a lease liability and a ROU (Right of Use) asset for each piece of equipment. During 2019 one piece of equipment was traded and financed through our equipment note obligations leaving three remaining ROU assets. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. |
Business Description and Summ_3
Business Description and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Description and Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of property, plant and equipment | Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Schedule of inventories | December 31, December 31, 2019 2018 ($000's omitted) Raw material and common parts $ 14,707 $ 9,088 Work-in-process 4,158 5,123 Finished goods 2,723 2,482 21,588 16,693 Less inventory reserve (1,437) (1,543) Total inventories $ 20,151 $ 15,150 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | December 31, December 31, 2019 2018 ($000's omitted) Land $ 7 $ 7 Buildings 11,017 10,452 Machinery, equipment and tooling 20,695 18,345 Construction in progress 331 1,258 32,050 30,062 Less accumulated depreciation and amortization (19,333) (18,187) Property, plant and equipment, net $ 12,717 $ 11,875 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt | |
Schedule of long-term debt | December 31, December 31, 2019 2018 ($000's omitted) Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) (A) $ 3,000 $ — Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 (B) 1,310 1,572 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 (B) 571 857 Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) (C) 670 0 Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) (D) 468 704 6,019 3,133 Less current portion (849) (723) $ 5,170 $ 2,410 |
Schedule of payments for capital lease obligations | December 31, 2019 Year ($000's omitted) 331 331 316 169 97 Total principal and interest payments 1,244 Less amount representing interest (106) Present value of net minimum lease payments 1,138 Less current portion (301) Long term principle payments $ 837 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of income tax provision for income taxes from continuing operations | December 31, December 31, 2019 2018 ($000’s omitted) Current: Federal $ 363 $ 639 State 45 2 408 641 Deferred: Federal 171 96 171 96 $ 579 $ 737 |
Schedule of the reconciliation of effective tax rate from continuing operations and the federal statutory income tax rate | December 31, December 31, 2019 2018 Federal statutory rate 21.0 % 21.0 % Permanent non-deductible expenses 2.6 % 0.3 % Business credits (3.0) % (0.6) % ESOP dividend (0.6) % (0.4) % Stock compensation (0.1) % (0.4) % Domestic production activities deduction 0.0 % (0.4) % Foreign-derived intangible income deduction (1.2) % (1.8) % State taxes, net of federal benefit 1.3 % 0.0 % Other 1.5 % (0.3) % 21.5 % 17.4 % |
Schedule of deferred tax assets (liabilities) | December 31, December 31, 2019 2018 ($000’s omitted) Deferred Tax Assets: Inventories $ 473 $ 417 Accrued employees compensation and benefits costs 446 478 Accrued arbitration award and related liability 324 234 Net operating loss and credit carryforwards 236 248 Bad debt reserve 71 37 Warranty reserve 88 90 Total deferred tax assets 1,638 1,504 Valuation allowance (236) (248) Net deferred tax assets 1,402 1,256 Deferred tax liabilities: Prepaid expenses (32) (28) Property, plant and equipment (1,238) (910) Other — (14) Minimum pension liability (25) (9) Total deferred tax liabilities (1,295) (961) Net deferred tax assets $ 107 $ 295 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | |
Schedule of stockholders equity | Twelve-month Period Ended December 31, 2019 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2019 $ 18,788 $ 35 $ 523 $ 14,250 $ (561) $ (1,522) $ 31,513 Purchase of treasury shares — — — — — (128) (128) Stock based compensation — — — 14 — 44 58 Net Income 98 — — — — — 98 March 31, 2019 $ 18,886 $ 35 $ 523 $ 14,264 $ (561) $ (1,606) $ 31,541 Dividends declared ($0.16 per share) (413) — — — — — (413) Purchase of treasury shares — — — — — (21) (21) Stock based compensation — — — 34 — 61 95 Net Income 714 — — — — — 714 June 30, 2019 $ 19,187 $ 35 $ 523 $ 14,298 $ (561) $ (1,566) $ 31,916 Purchase of treasury shares — — — — — (8) (8) Stock based compensation — — — 28 — 58 86 Net Income 1,132 — — — — — 1,132 September 30, 2019 $ 20,319 $ 35 $ 523 $ 14,326 $ (561) $ (1,516) $ 33,126 Retirement benefits adjustment — 63 — — 101 — 164 Stock based compensation — — — 32 — 45 77 Net Income 165 — — — — — 165 December 31, 2019 $ 20,484 $ 98 $ 523 $ 14,358 $ (460) $ (1,471) $ 33,532 Twelve-month Period Ended December 31, 2018 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2018 $ 15,709 $ (32) $ 523 $ 14,171 $ (662) $ (1,544) $ 28,165 Purchase of treasury shares — — — — — (117) (117) Net Income 331 — — — — — 331 March 31, 2018 $ 16,040 $ (32) $ 523 $ 14,171 $ (662) $ (1,661) $ 28,379 Dividends declared ($0.16 per share) (416) — — — — — (416) Purchase of treasury shares — — — — — (33) (33) Stock based compensation (6) 6 — 21 — 64 85 Net Income 707 — — — — — 707 June 30, 2018 $ 16,325 $ (26) $ 523 $ 14,192 $ (662) $ (1,630) $ 28,722 Dividends declared ($0.16 per share) 3 — — — — — 3 Stock based compensation — — — 34 — 64 98 Net Income 1,457 — — — — — 1,457 September 30, 2018 $ 17,785 $ (26) $ 523 $ 14,226 $ (662) $ (1,566) $ 30,280 Compensation Expense — — — — 101 — 101 Retirement benefits adjustment — 67 — — — — 67 Purchase of treasury shares — — — — — (25) (25) Stock based compensation — (6) — 24 — 69 87 Net Income 1,003 — — — — — 1,003 December 31, 2018 $ 18,788 $ 35 $ 523 $ 14,250 $ (561) $ (1,522) $ 31,513 |
Schedule of earnings per share | December 31, December 31, 2019 2018 ($000's omitted except for per share data) Net Income $ 2,109 $ 3,498 Weighted average common shares outstanding (basic) 2,330 2,272 Unvested restricted stock 56 81 Weighted average common shares outstanding (diluted) 2,386 2,353 Basic Net income per share $ 0.91 $ 1.54 Diluted Net income per share $ 0.88 $ 1.49 |
Schedule of summary of the status of restricted share awards granted | Weighted Average Grant Date Shares Fair Value Restricted Share Activity: Unvested at December 31, 2017 28,500 $ 7.96 Granted in 2018 83,038 9.33 Vested in 2018 30,644 $ 8.06 Unvested at December 31, 2018 80,894 $ 9.33 Granted in 2019 7,836 $ 12.77 Forfeited in 2019 2,000 $ 9.33 Vested in 2019 32,314 $ 9.75 Unvested at December 31, 2019 54,416 $ 9.58 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Segments | |
Schedule of information regarding operations in business segment | Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): ATG CPG Consolidated Years Ended Years Ended Years Ended December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Revenues from unaffiliated customers $ 48,519 $ 40,415 $ 6,753 $ 7,442 $ 55,272 $ 47,857 Cost of goods sold, inclusive of depreciation (35,632) (28,587) (7,514) (7,185) (43,146) $ (35,772) Gross margin 12,887 11,828 (761) 258 12,126 12,085 Gross margin % 26.6 % 29.3 % (11.3) % 3.5 % 21.9 % 25.3 % Selling, general and administrative (6,588) (5,423) (2,725) (2,320) (9,313) (7,743) Interest (97) (73) (28) (34) (125) (107) Total costs and expenses (42,317) (34,083) (10,268) (9,539) (52,584) (43,622) Income (loss) before income tax provision 6,203 6,332 (3,515) (2,097) 2,688 4,235 Income tax provision (benefits) 1,336 1,102 (757) (365) 579 737 Net income/(loss) $ 4,867 $ 5,230 $ (2,758) $ (1,732) $ 2,109 $ 3,498 Total assets $ 39,989 $ 31,647 $ 9,481 $ 10,038 $ 49,470 $ 41,685 Capital expenditures $ 1,990 $ 1,689 $ 281 $ 177 $ 2,271 $ 1,866 |
Business Description and Summ_4
Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 40 years |
Machinery, equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Machinery, equipment and tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 20 years |
Tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 3 years |
Tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Business Description and Summ_5
Business Description and Summary of Significant Accounting Policies - Additional Information (Details) | Dec. 09, 2019USD ($) | Dec. 31, 2019USD ($)Y | Dec. 31, 2018USD ($) | Oct. 21, 2019USD ($) | Sep. 30, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for doubtful accounts | $ 337,000 | $ 170,000 | |||
Warranty period | 27 months | ||||
Inventory reserve | $ 1,437,000 | 1,543,000 | |||
Interest paid | 125,000 | 107,000 | |||
Capitalised tooling | $ 143,000 | ||||
Additional converted cost | $ 18,000 | ||||
Warranty reserve | 420,000 | 428,000 | |||
Income taxes paid | 524,000 | 1,325,000 | |||
Impairment of long-lived assets | $ 0 | $ 0 | |||
Concentration risk, benchmark description | No other customers of the ATG or CPG represented more than 10% of the Company's consolidated revenues in either of these years | ||||
Other non-current assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Note receivable | $ 125,000 | ||||
Selling, general & administrative expenses | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Costs of dissolution of capitalized assets | $ 237,000 | ||||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Period inventory is expected to be used | 2 years | ||||
Number of year's supply | Y | 1 | ||||
Number of years of customer requirements | Y | 2 | ||||
Customer Concentration Risk | Advanced Technology Products | Sales Revenue | Two Customers | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Concentration Risk, Percentage | 55.00% | 49.00% | |||
Concentration risk, benchmark description | more than 10% |
Inventories - Summary of invent
Inventories - Summary of inventories (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw material and common parts | $ 14,707,000 | $ 9,088,000 |
Work-in-process | 4,158,000 | 5,123,000 |
Finished goods | 2,723,000 | 2,482,000 |
Inventory, Gross | 21,588,000 | 16,693,000 |
Less inventory reserve | (1,437,000) | (1,543,000) |
Total inventories | $ 20,151,000 | $ 15,150,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 32,050 | $ 30,062 |
Less accumulated depreciation and amortization | (19,333) | (18,187) |
Property, plant and equipment, net | 12,717 | 11,875 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 7 | 7 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 11,017 | 10,452 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 20,695 | 18,345 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 331 | $ 1,258 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 1,268,000 | $ 1,025,000 |
Depreciation | 1,178,000 | 948,000 |
Amortization | 90,000 | 77,000 |
Property, plant and equipment, Gross | 32,050,000 | 30,062,000 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
ROU assets | 728,000 | 811,000 |
Property, plant and equipment, Gross | 20,695,000 | 18,345,000 |
ATG | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 331,000 | $ 1,258,000 |
ATG | Construction in progress (CIP) machinery & equipment and self-constructed assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 280,000 | |
ATG | Construction in progress (CIP) IT equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 32,000 | |
ATG | Construction in progress Building improvement | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 19,000 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Long-term debt | $ 6,019 | $ 3,133 |
Less current portion | (849) | (723) |
Long-term debt, Noncurrent | 5,170 | 2,410 |
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) | ||
Debt Instrument | ||
Long-term debt | 3,000 | 0 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 | ||
Debt Instrument | ||
Long-term debt | 1,310 | 1,572 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 | ||
Debt Instrument | ||
Long-term debt | 571 | 857 |
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding | ||
Debt Instrument | ||
Long-term debt | 670 | 0 |
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) | ||
Debt Instrument | ||
Long-term debt | $ 468 | $ 704 |
Long-Term Debt - Summary of l_2
Long-Term Debt - Summary of long term debt information (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 | |
Debt Instrument | |
Monthly principal payments | $ 21,833,000 |
Balloon payment due December 1, 2021 | 786,000,000 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 | |
Debt Instrument | |
Monthly principal payments | $ 23,810 |
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding | Minimum | |
Debt Instrument | |
Percentage of floating interest rate payable | 3.3943% |
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding | Maximum | |
Debt Instrument | |
Percentage of floating interest rate payable | 3.8527% |
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) | Minimum | |
Debt Instrument | |
Percentage of fixed interest rate payable | 1.82276% |
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) | Maximum | |
Debt Instrument | |
Percentage of fixed interest rate payable | 1.8693% |
LIBOR | Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) | |
Debt Instrument | |
Percentage of floating interest rate payable | 1.40% |
Percentage of fixed interest rate payable | 3.1085% |
LIBOR | Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 | |
Debt Instrument | |
Percentage of floating interest rate payable | 1.40% |
Percentage of fixed interest rate payable | 3.1085% |
LIBOR | Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 | |
Debt Instrument | |
Percentage of floating interest rate payable | 1.40% |
Percentage of fixed interest rate payable | 3.1085% |
Long-Term Debt - Maturities (De
Long-Term Debt - Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-Term Debt | |
2020 | $ 331 |
2021 | 331 |
2022 | 316 |
2023 | 169 |
2024 | 97 |
Total principal and interest payments | 1,244 |
Less amount representing interest | (106) |
Present value of net minimum lease payments | 1,138 |
Less current portion | (301) |
Long term principle payments | $ 837 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 20, 2020 | Dec. 31, 2018 | |
Debt Instrument | |||
Principal maturities of long-term debt for 2020 | $ 849,000 | ||
Principal maturities of long-term debt for 2021 | 4,635,000 | ||
Principal maturities of long-term debt for 2022 | 288,000 | ||
Principal maturities of long-term debt for 2023 | 154,000 | ||
Principal maturities of long-term debt for 2024 | 93,000 | ||
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) | |||
Debt Instrument | |||
Maximum borrowing capacity | $ 4,000,000 | ||
Commitment fee on unused portion of line of credit | 0.15% | ||
Balance outstanding of line of credit | $ 3,000,000 | $ 0 | |
Line of credit | 4,000,000 | ||
Balance outstanding | $ 3,000,000 | 0 | |
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) | LIBOR | |||
Debt Instrument | |||
Spread on variable rate | 1.40% | ||
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) | Subsequent Event | |||
Debt Instrument | |||
Maximum borrowing capacity | $ 6,000,000 | ||
Line of credit | $ 6,000,000 | ||
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) | |||
Debt Instrument | |||
Maximum borrowing capacity | $ 1,000,000 | ||
Lease term for equipment covered by lease line of credit | 60 months | ||
Leases line of credit outstanding | $ 468,000 | 704,000 | |
Line of credit | 1,000,000 | ||
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding | |||
Debt Instrument | |||
Maximum borrowing capacity | 670,000 | 0 | |
Loan line of credit | $ 2,500,000 | ||
Loan term for equipment covered by loan | 60 months | ||
Line of credit | $ 670,000 | $ 0 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 1988 | Dec. 31, 1987 | Dec. 31, 1985 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amount borrowed | $ 2,000,000 | |||||
Employee stock ownership plan debt structure interest rate description | prime rate | |||||
Employee stock ownership plan, term of loan | 40 years | |||||
Employee stock ownership plan, amount of additional loan | $ 1,942,000 | $ 1,942,000 | ||||
Outstanding shares subject to repurchase obligation | 0 | |||||
ESOP, number of allocated shares since inception | 414,515 | |||||
ESOP, number of unallocated shares | 104,320 | 87,425 | 104,320 | |||
ESOP, compensation expenses | $ 101,000 | $ 101,000 | $ 101,000 | |||
Other Postretirement Benefit Plans, Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Future obligation of benefits | 644,000 | 583,000 | 644,000 | |||
Additional expense | 100,000 | |||||
Estimated future annual expenses associated with the plan are immaterial. Included in accumulated other comprehensive income (loss) | $ 67,000 | $ 63,000 | $ 67,000 |
Income Taxes - Income tax provi
Income Taxes - Income tax provision from operations included in consolidated statements of operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
Federal | $ 363 | $ 639 |
State | 45 | 2 |
Total current tax | 408 | 641 |
Deferred: | ||
Federal | 171 | 96 |
Total deferred | 171 | 96 |
Income tax provision, total | $ 579 | $ 737 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate based upon total income tax provision (benefit) from continuing operations (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||
Federal statutory rate | 21.00% | 21.00% |
Permanent non-deductible expenses | 2.60% | 0.30% |
Business credits | (3.00%) | (0.60%) |
ESOP dividend | (0.60%) | (0.40%) |
Stock compensation | (0.10%) | (0.40%) |
Domestic production activities deduction | (0.00%) | (0.40%) |
Foreign-derived intangible income deduction | (1.20%) | (1.80%) |
State taxes, net of federal benefit | 1.30% | 0.00% |
Other | 1.50% | (0.30%) |
Effective tax rate | 21.50% | 17.40% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Inventories | $ 473 | $ 417 |
Accrued employees compensation and benefits costs | 446 | 478 |
Accrued arbitration award and related liability | 324 | 234 |
Net operating loss and credit carryforwards | 236 | 248 |
Bad debt reserve | 71 | 37 |
Warranty reserve. | 88 | 90 |
Total deferred tax assets | 1,638 | 1,504 |
Valuation allowance | (236) | (248) |
Net deferred tax asset | 1,402 | 1,256 |
Deferred tax liabilities: | ||
Prepaid expenses | (32) | (28) |
Property, plant and equipment | (1,238) | (910) |
Other | (14) | |
Minimum pension liability | (25) | (9) |
Total deferred tax liabilities | (1,295) | (961) |
Net deferred tax asset | $ 107 | $ 295 |
Income Taxes - Additinal inform
Income Taxes - Additinal information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
State net operating loss carryforwards, state tax credit carryforwards and other state net deferred tax assets valuation allowance | $ 236,000 | $ 248,000 |
Valuation allowance | 236,000 | 248,000 |
Uncertain tax positions or unrecognized tax benefits | 0 | 0 |
Domestic Tax Authority | Pennsylvania | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 1,620,000 | 1,805,000 |
Operating loss carryforward | 2020 | |
Domestic Tax Authority | Arkansas | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 0 | 31,000 |
Domestic Tax Authority | New York | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | $ 139,000 | $ 131,000 |
Tax credit carryforward expiration date in years | 2023 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of common shareholders' equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | $ 33,126,000 | $ 31,916,000 | $ 31,541,000 | $ 31,513,000 | $ 30,280,000 | $ 28,722,000 | $ 28,379,000 | $ 28,165,000 | $ 31,513,000 | $ 28,165,000 |
Net income | 165,000 | 1,132,000 | 714,000 | 98,000 | 1,003,000 | 1,457,000 | 707,000 | 331,000 | 2,109,000 | 3,498,000 |
Compensation expense | 101,000 | 101,000 | 101,000 | |||||||
Retirement benefits adjustment | 164,000 | 67,000 | 63,000 | 67,000 | ||||||
Purchase of treasury shares | (8,000) | (21,000) | (128,000) | (25,000) | (33,000) | (117,000) | ||||
Dividends declared ($0.16 per share) | (413,000) | 3,000 | (416,000) | |||||||
Stock based compensation | (77,000) | 86,000 | 95,000 | (58,000) | 87,000 | 98,000 | 85,000 | |||
Balance | $ 33,532,000 | 33,126,000 | 31,916,000 | 31,541,000 | $ 31,513,000 | 30,280,000 | 28,722,000 | 28,379,000 | $ 33,532,000 | $ 31,513,000 |
Balance (shares) | 2,614,506 | 2,614,506 | 2,614,506 | 2,614,506 | ||||||
Common Stock | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | $ 523,000 | 523,000 | 523,000 | 523,000 | $ 523,000 | 523,000 | 523,000 | 523,000 | $ 523,000 | $ 523,000 |
Stock based compensation | 0 | |||||||||
Balance | 523,000 | 523,000 | 523,000 | 523,000 | 523,000 | 523,000 | 523,000 | 523,000 | 523,000 | 523,000 |
Capital in excess of par value | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | 14,326,000 | 14,298,000 | 14,264,000 | 14,250,000 | 14,226,000 | 14,192,000 | 14,171,000 | 14,171,000 | 14,250,000 | 14,171,000 |
Stock based compensation | (32,000) | 28,000 | 34,000 | (14,000) | 24,000 | 34,000 | 21,000 | |||
Balance | 14,358,000 | 14,326,000 | 14,298,000 | 14,264,000 | 14,250,000 | 14,226,000 | 14,192,000 | 14,171,000 | 14,358,000 | 14,250,000 |
Retained earnings | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | 20,319,000 | 19,187,000 | 18,886,000 | 18,788,000 | 17,785,000 | 16,325,000 | 16,040,000 | 15,709,000 | 18,788,000 | 15,709,000 |
Net income | 165,000 | 1,132,000 | 714,000 | 98,000 | 1,003,000 | 1,457,000 | 707,000 | 331,000 | ||
Dividends declared ($0.16 per share) | (413,000) | 3,000 | (416,000) | |||||||
Stock based compensation | 0 | (6,000) | ||||||||
Balance | 20,484,000 | 20,319,000 | 19,187,000 | 18,886,000 | 18,788,000 | 17,785,000 | 16,325,000 | 16,040,000 | 20,484,000 | 18,788,000 |
ESOT | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | (561,000) | (561,000) | (561,000) | (561,000) | (662,000) | (662,000) | (662,000) | (662,000) | (561,000) | (662,000) |
Compensation expense | 101,000 | |||||||||
Retirement benefits adjustment | 101,000 | |||||||||
Stock based compensation | 0 | |||||||||
Balance | (460,000) | (561,000) | (561,000) | (561,000) | (561,000) | (662,000) | (662,000) | (662,000) | (460,000) | (561,000) |
Treasury stock | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | (1,516,000) | (1,566,000) | (1,606,000) | (1,522,000) | (1,566,000) | (1,630,000) | (1,661,000) | (1,544,000) | (1,522,000) | (1,544,000) |
Purchase of treasury shares | (8,000) | (21,000) | (128,000) | (25,000) | (33,000) | (117,000) | ||||
Stock based compensation | (45,000) | 58,000 | 61,000 | (44,000) | 69,000 | 64,000 | 64,000 | |||
Balance | (1,471,000) | (1,516,000) | (1,566,000) | (1,606,000) | (1,522,000) | (1,566,000) | (1,630,000) | (1,661,000) | (1,471,000) | (1,522,000) |
Accumulated Other Comprehensive Income (Loss) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | 35,000 | 35,000 | 35,000 | 35,000 | (26,000) | (26,000) | (32,000) | (32,000) | 35,000 | (32,000) |
Retirement benefits adjustment | 63,000 | 67,000 | ||||||||
Stock based compensation | 0 | (6,000) | 6,000 | |||||||
Balance | $ 98,000 | $ 35,000 | $ 35,000 | $ 35,000 | $ 35,000 | $ (26,000) | $ (26,000) | $ (32,000) | $ 98,000 | $ 35,000 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of common shareholders' equity - Parentheticals (Details) - $ / shares | May 15, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Shareholders' Equity | |||
Dividends Payable, Amount Per Share | $ 0.16 | $ 0.16 | $ 0.16 |
Shareholders' Equity - Calculat
Shareholders' Equity - Calculation of earning per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shareholders' Equity | ||||||||||
Net Income | $ 165 | $ 1,132 | $ 714 | $ 98 | $ 1,003 | $ 1,457 | $ 707 | $ 331 | $ 2,109 | $ 3,498 |
Weighted average common shares outstanding (basic) (in shares) | 2,330 | 2,272 | ||||||||
Unvested restricted stock (in shares) | 56 | 81 | ||||||||
Weighted average common shares outstanding (diluted) (in shares) | 2,386 | 2,353 | ||||||||
Basic | ||||||||||
Net Income per share (in dollars per share) | $ 0.91 | $ 1.54 | ||||||||
Diluted | ||||||||||
Net income per share (in dollars per share) | $ 0.88 | $ 1.49 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of restricted share awards (Details) - Restricted shares - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | ||
Unvested, beginning balance | 80,894 | 28,500 |
Granted | 7,836 | 83,038 |
Forfeited | 2,000 | |
Vested | 32,314 | 30,644 |
Unvested, ending balance | 54,416 | 80,894 |
Weighted Average Grant Date Fair Value | ||
Unvested, beginning balance | $ 9.33 | $ 7.96 |
Granted | 12.77 | 9.33 |
Forfeited | 9.33 | |
Vested | 9.75 | 8.06 |
Unvested, ending balance | $ 9.58 | $ 9.33 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Program (Details) - Share Repurchase Program | 12 Months Ended |
Dec. 31, 2019shares | |
Equity, Class of Treasury Stock [Line Items] | |
Number of common shares authorized to be purchased | 450,000 |
Shares purchased | 5,232 |
Remaining number of shares authorized to be purchased | 89,745 |
Number of shares purchased | 360,255 |
Shareholders' Equity - 2012 Lon
Shareholders' Equity - 2012 Long-Term Incentive Plan (Details) - USD ($) | Apr. 26, 2019 | Jan. 01, 2019 | May 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Compensation expense not yet recognized | $ 0 | ||||
Expense recognized for issuance of restricted shares | $ 316,000 | $ 276,000 | |||
Unvested Shares Recognized | 286,000 | ||||
Non-employee directors | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of restricted stock issued | 7,836 | 4,288 | |||
Compensation expense not yet recognized | $ 100,000 | $ 40,000 | |||
2012 Long Term Incentive Plan | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of restricted stock shares vested | 26,250 | ||||
Number of shares withheld and repurchased | 9,729 | ||||
Value of shares withheld and repurchased | $ 99,000 | ||||
2012 Long Term Incentive Plan | Executive Officer | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of restricted stock issued | 78,750 | ||||
Compensation expense not yet recognized | $ 735,000 | ||||
2012 Long Term Incentive Plan | Non-employee directors | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Vesting period of restricted share awards | 12 months |
Shareholders' Equity - Share-ba
Shareholders' Equity - Share-based payments and shareholders' rights plan (Details) | 12 Months Ended | ||
Dec. 31, 2012item$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Common stock, shares authorized | 4,000,000 | 4,000,000 | |
Unrecognized compensation | $ | $ 0 | ||
2012 Long Term Incentive Plan | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Common stock, shares authorized | 300,000 | ||
Rights Plan | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of rights for each outstanding share | 1 | ||
Percentage of beneficial ownership | 25% | ||
Number of business days | 10 days | ||
Exercise price | $ / shares | $ 32 | ||
Rights Plan | Event Any Person Becomes Acquiring Person [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of times the exercise price | item | 3 | ||
Rights Plan | Common | Event Any Person Becomes Acquiring Person [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of rights for each outstanding share | 2 | ||
Rights Plan | Series A Preferred Stock | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares for each right | 0.01 | ||
Rights Plan | Series A Preferred Stock | Event Any Person Becomes Acquiring Person [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares for each right | 0.02 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | May 15, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Shareholders' Equity | |||
Dividends declaration date | May 15, 2019 | ||
Per share cash dividend | $ 0.16 | $ 0.16 | $ 0.16 |
Date of dividends to be paid | Jul. 15, 2019 | ||
Dividends payable record date | Jun. 28, 2019 | ||
Aggregate dividend payable | $ 413,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Post retirement obligation | $ 1,543,000 | $ 1,115,000 |
Kenneth Trbovich | Employment Agreement | ||
Loss Contingencies [Line Items] | ||
Post retirement obligation | $ 583,000 | $ 644,000 |
Minimum age limit | 65 years |
Litigation (Details)
Litigation (Details) - Aero, Inc. | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Litigation | |
Amount of alleged damages | $ 3,000,000 |
Amount of counter claim | 3,191,000 |
Gain or loss on litigation | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions | ||
Legal fees and disbursements | $ 197,000 | $ 141,000 |
Accrued additional legal fees | $ 52,000 | $ 19,000 |
Business Segments - Summary of
Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenues from unaffiliated customers | $ 55,272 | $ 47,857 | ||||||||
Cost of goods sold, inclusive of depreciation | (43,146) | (35,772) | ||||||||
Gross margin | 12,126 | 12,085 | ||||||||
Selling, general and administrative | (9,313) | (7,743) | ||||||||
Interest | (125) | (107) | ||||||||
Total costs and expenses | (9,438) | (7,850) | ||||||||
Income (loss) before income tax provision | 2,688 | 4,235 | ||||||||
Income tax provision (benefits) | (579) | (737) | ||||||||
Net income/(loss) | $ 165 | $ 1,132 | $ 714 | $ 98 | $ 1,003 | $ 1,457 | $ 707 | $ 331 | 2,109 | 3,498 |
Total assets | 49,470 | 41,685 | 49,470 | 41,685 | ||||||
Capital expenditures | 2,271 | 1,866 | ||||||||
Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues from unaffiliated customers | 55,272 | 47,857 | ||||||||
Cost of goods sold, inclusive of depreciation | (43,146) | (35,772) | ||||||||
Gross margin | $ 12,126 | $ 12,085 | ||||||||
Gross margin % | 21.90% | 25.30% | ||||||||
Selling, general and administrative | $ (9,313) | $ (7,743) | ||||||||
Interest | (125) | (107) | ||||||||
Total costs and expenses | (52,584) | (7,850) | ||||||||
Income (loss) before income tax provision | 2,688 | 4,235 | ||||||||
Income tax provision (benefits) | (579) | (737) | ||||||||
Net income/(loss) | 2,109 | 3,498 | ||||||||
Total assets | 49,470 | 41,685 | 49,470 | 41,685 | ||||||
Capital expenditures | 2,271 | 1,866 | ||||||||
Operating Segments | ATG | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues from unaffiliated customers | 48,519 | 40,415 | ||||||||
Cost of goods sold, inclusive of depreciation | (35,632) | (28,587) | ||||||||
Gross margin | $ 12,887 | $ 11,828 | ||||||||
Gross margin % | 26.60% | 29.30% | ||||||||
Selling, general and administrative | $ (6,588) | $ (5,423) | ||||||||
Interest | (97) | (73) | ||||||||
Total costs and expenses | (42,317) | (34,083) | ||||||||
Income (loss) before income tax provision | 6,203 | 6,332 | ||||||||
Income tax provision (benefits) | (1,336) | (1,102) | ||||||||
Net income/(loss) | 4,867 | 5,230 | ||||||||
Total assets | 39,989 | 31,647 | 39,989 | 31,647 | ||||||
Capital expenditures | 1,990 | 1,689 | ||||||||
Operating Segments | CPG | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues from unaffiliated customers | 6,753 | 7,442 | ||||||||
Cost of goods sold, inclusive of depreciation | (7,514) | (7,185) | ||||||||
Gross margin | $ (761) | $ 258 | ||||||||
Gross margin % | (11.30%) | 3.50% | ||||||||
Selling, general and administrative | $ (2,725) | $ (2,320) | ||||||||
Interest | (28) | (34) | ||||||||
Total costs and expenses | (10,268) | (9,539) | ||||||||
Income (loss) before income tax provision | (3,515) | (2,097) | ||||||||
Income tax provision (benefits) | 757 | 365 | ||||||||
Net income/(loss) | (2,758) | (1,732) | ||||||||
Total assets | $ 9,481 | $ 10,038 | 9,481 | 10,038 | ||||||
Capital expenditures | $ 281 | $ 177 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Business Segments | |
Number of operating segments | 2 |