Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SERVOTRONICS INC /DE/ | |
Entity Central Index Key | 89,140 | |
Trading Symbol | svt | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,434,449 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,588 | $ 3,515 |
Accounts receivable, net | 7,298 | 7,439 |
Inventories, net | 13,070 | 13,293 |
Prepaid income taxes | 206 | 182 |
Other current assets | 378 | 387 |
Total current assets | 23,540 | 24,816 |
Property, plant and equipment, net | 9,883 | 9,937 |
Deferred income taxes | 491 | 491 |
Other non-current assets | 754 | 376 |
Total Assets | 34,668 | 35,620 |
Current liabilities: | ||
Current portion of long-term debt | 548 | 548 |
Dividend payable | 376 | |
Accounts payable | 1,568 | 2,080 |
Accrued employee compensation and benefits costs | 2,011 | 1,945 |
Other accrued liabilities | 137 | 426 |
Total current liabilities | 4,640 | 4,999 |
Long-term debt | 2,681 | 2,976 |
Post retirement obligation | 528 | 528 |
Shareholders' equity: | ||
Common stock, par value $0.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,294,157 (2,310,148 - 2016) shares | 523 | 523 |
Capital in excess of par value | 14,166 | 14,160 |
Retained earnings | 14,523 | 14,768 |
Accumulated other comprehensive loss | (20) | (20) |
Employee stock ownership trust commitment | (763) | (763) |
Treasury stock, at cost 180,057 (164,066 - 2016) shares | (1,610) | (1,551) |
Total shareholders' equity | 26,819 | 27,117 |
Total Liabilities and Shareholders' Equity | $ 34,668 | $ 35,620 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
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 | 2,294,157 | 2,310,148 |
Treasury stock, shares | 180,057 | 164,066 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,616 | $ 10,296 | $ 18,719 | $ 19,243 |
Cost, expenses and other (income): | ||||
Cost of goods sold, exclusive of depreciation and amortization | 7,628 | 7,129 | 14,670 | 13,845 |
Selling, general and administrative | 1,611 | 1,521 | 3,443 | 3,157 |
Depreciation and amortization | 218 | 205 | 428 | 412 |
Interest expense | 15 | 17 | 38 | 36 |
Other income, net | (5) | (10) | (5) | (10) |
Total expenses | 9,467 | 8,862 | 18,574 | 17,440 |
Income before income tax provision | 149 | 1,434 | 145 | 1,803 |
Income tax provision | 44 | 430 | 14 | 541 |
Net income | $ 105 | $ 1,004 | $ 131 | $ 1,262 |
Basic | ||||
Net Income per share (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.06 | $ 0.57 |
Diluted | ||||
Net income per share (in dollars per share) | $ 0.05 | $ 0.43 | $ 0.06 | $ 0.55 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows related to operating activities: | ||
Net Income | $ 131 | $ 1,262 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 428 | 412 |
Loss on disposal of property | 16 | |
Stock based compensation | 107 | 238 |
Increase in inventory reserve | 12 | 46 |
Increase (decrease) in allowance for doubtful accounts | 1 | (5) |
Change is assets and liabilities: | ||
Accounts receivable | 141 | (970) |
Inventories | 211 | (1,098) |
Prepaid income taxes | (24) | 173 |
Other current assets | 9 | (454) |
Other non-current assets | (378) | (5) |
Accounts payable | (512) | 669 |
Accrued employee compensation and benefit costs | 66 | 267 |
Other accrued liabilities | (96) | 211 |
Accrued income taxes | (193) | 221 |
Net cash (used) provided by operating activities | (81) | 967 |
Cash flows related to investing activities: | ||
Capital expenditures - property, plant and equipment | (571) | (701) |
Proceeds from sale of assets | 180 | |
Net cash used in investing activities | (391) | (701) |
Cash flows related to financing activities: | ||
Principal payments on long-term debt | (295) | (273) |
Purchase of treasury shares | (160) | (165) |
Cash dividend | (380) | |
Net cash used in financing activities | (455) | (818) |
Net decrease in cash and cash equivalents | (927) | (552) |
Cash and cash equivalents at beginning of period | 3,515 | 3,268 |
Cash and cash equivalents at end of period | $ 2,588 | $ 2,716 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The consolidated financial statements should be read in conjunction with the 2016 annual report and the notes thereto. |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Business Description and Summary of Significant Accounting Policies | 2. 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 and Cash Equivalents The Company considers cash and cash equivalents to include all cash accounts and short-term investments purchased with an original maturity of three months or less. 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 $78,000 at June 30, 2017 and $77,000 at December 31, 2016. The Company does not accrue interest on past due receivables. Revenue Recognition Revenues are recognized as services are rendered or as units are shipped and at the designated FOB point consistent with the transfer of title, risks and rewards of ownership. Such 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. 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 one year are applied to the gross value of the inventory through a reserve of approximately $1,525,000 and $1,513,000 at June 30, 2017 and December 31, 2016, 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 one year of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. These amounts are not included in the inventory reserve discussed above. 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 income 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 separate Pennsylvania and Arkansas 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 June 30, 2017 or December 31, 2016, and did not recognize any interest and/or penalties in its consolidated statements of income during the six months ended June 30, 2017 and 2016. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of June 30, 2017 and December 31, 2016. The 2013 through 2015 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid during the six months ended June 30, 2017 and 2016 amounted to approximately $165,000 and $134,000, respectively. Interest paid amounted to approximately $38,000 and $36,000, respectively, during the six months ended June 30, 2017 and 2016. 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. 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 June 30, 2017 and December 31, 2016. 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. Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, 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 Effective January 1, 2017, the Company adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The ASU changes the measurement principle for certain inventory methods from the lower of cost or market to the lower of cost and net realizable value. Adoption of this new guidance had no impact on the Company’s consolidated results of operations and financial position. Effective January 1, 2017, the Company adopted new guidance issued by the FASB ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. The guidance requires that all deferred tax assets and deferred tax liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Adoption of this new guidance during the reporting period resulted in the reclassification of a deferred tax liability, of $661,000 from current to noncurrent at June 30, 2017 and December 31, 2016. The deferred tax liability, for both reporting periods offsets the deferred tax asset, as presented on the balance sheet at June 30, 2017 and December 31, 2016. Effective January 1, 2017, the Company adopted new guidance issued by the FASB ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a Company’s payments for tax withholdings should be classified. Adoption of this new guidance has not had a material impact on the Company’s consolidated results of operations and financial position. Effective January 1, 2017, the Company selected early adoption of the new guidance issued by the FASB ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. Adoption of this new guidance has not had a material impact on the Company’s consolidated results of operations and financial position. In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. This update is effective for annual periods beginning after December 15, 2017. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The new revenue recognition standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB affirmed its proposal to defer the effective date of the standard to annual reporting periods (and interim reporting periods within those years) beginning after December 15, 2017. Entities are permitted to apply the new revenue standard early, but not before the original effective date of annual periods beginning after December 15, 2016. The Company’s revenues are recognized as services are rendered or as units are shipped and at the designated FOB point. The Company does not believe the adoption will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” There are elements of the new standard that could impact almost all entities to some extent, although the lessees will likely see the most significant changes. Lessee will need to recognize virtually all of their leases on the balance sheet, by recording the right-of-use asset and a lease liability. Public business entities are required to adopt the new leasing standard for fiscal years, and interim period within those fiscal years, beginning December 15, 2018. For calendar year-end public companies, this means an adoption date of January 1, 2019. Early adoption is permitted. The Company does not believe the adoption will have a material impact on the financial statements and disclosures. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories June 30, December 31, 2017 2016 ($000's omitted) Raw material and common parts, net of reserve $ 8,292 $ 7,618 Work-in-process 2,544 2,062 Finished goods, net of reserve 2,234 3,613 Total inventories $ 13,070 $ 13,293 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment June 30, December 31, 2017 2016 ($000's omitted) Land $ 7 $ 21 Buildings 10,138 10,422 Machinery, equipment and tooling 16,151 15,826 Construction in progress 335 77 26,631 26,346 Less accumulated depreciation (16,748 ) (16,409 ) $ 9,883 $ 9,937 As previously disclosed, the Company through a wholly-owned subsidiary, entered into a contract to sell unused commercial real property in Franklinville, New York for approximately $180,000. The sale transaction closed on March 9, 2017 and the wholly-owned subsidiary recognized a de minimis loss on the sale. Depreciation and amortization expense amounted to approximately $428,000 and $412,000 for the six months ended June 30, 2017 and 2016, respectively. Depreciation and amortization expense amounted to approximately $218,000 and $205,000 for the 3 months ended June 30, 2017 and 2016, respectively. The Company believes that it 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. As of June 30, 2017, there is approximately $335,000 ($77,000 – 2016) of construction in progress included in property, plant and equipment all of which is related to capital projects at the Advanced Technology Group (“ATG”). See Note 7, Commitments and Contingencies, for more information on anticipated capital expenditures. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 5. Long-Term Debt 2017 2016 ($000's omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 $ 1,943 $ 2,096 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly prinicipal payments of $23,810 through December 1, 2021 1,286 1,428 3,229 3,524 Less current portion (548 ) (548 ) $ 2,681 $ 2,976 The Company had a $2,000,000 line of credit available until June 21, 2017, which is intended to be renewed under similar terms in the third quarter of 2017. There was no balance outstanding at June 21, 2017 and December 31, 2016. The term loans 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 June 30, 2017 and December 31, 2016 the Company was in compliance with these covenants. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity Common Stock ($000's omitted except for share data) Accumulated Number Capital in Other Total of shares excess of Retained Treasury Comprehensive shareholders' issued Amount par value earnings ESOT stock Loss equity Balance at December 31, 2016 2,614,506 $ 523 $ 14,160 $ 14,768 $ (763 ) $ (1,551 ) $ (20 ) $ 27,117 Net income 131 131 Purchase of treasury shares (160 ) (160 ) Cash dividend (376 ) (376 ) Stock based compensation, net of tax benefit - - 6 - - 101 - 107 Balance at June 30, 2017 2,614,506 $ 523 $ 14,166 $ 14,523 $ (763 ) $ (1,610 ) $ (20 ) $ 26,819 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 June 30, 2017, the Company has purchased 345,404 shares and there remains 104,596 shares available to purchase under this program. There were no shares purchased by the Company during the six month period ended June 30, 2017. On April 11, 2016, the Company issued 51,000 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 2017 and January 2018; however, these shares have voting rights and accrue dividends prior to vesting. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be approximately $370,000 and will be recognized over the requisite service period. Included in the six months ended June 30, 2017 and 2016 is approximately $107,000 and $238,000, respectively, of stock-based compensation expense related to the restrictive share awards. On January 1, 2017, 39,750 shares of restricted stock vested of which 15,991 shares were withheld and repurchased by the Company for approximately $160,000 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 16, 2017 the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on July 14, 2017 to shareholders of record on June 30, 2017 and was approximately $376,000 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 earnings 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 earnings 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. Incremental shares from assumed conversions are calculated as the number of shares that would be issued, net of the number of shares that could be purchased in the marketplace with the cash received upon stock option exercise. The dilutive effect of unvested restrictive stock is determined using the treasury stock method. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ($000's omitted except per share data) Net Income $ 105 $ 1,004 $ 131 $ 1,262 Weighted average common shares outstanding (basic) 2,251 2,220 2,251 2,195 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 43 92 43 92 Weighted average common shares outstanding (diluted) 2,294 2,312 2,294 2,287 Basic Net income per share $ 0.05 $ 0.45 $ 0.06 $ 0.57 Diluted Net income per share $ 0.05 $ 0.43 $ 0.06 $ 0.55 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Litigation. Post retirement obligation. Facility Expansion. The Company’s Consumer Products Group (“CPG”) was awarded certain incentives from the County of Cattaraugus Industrial Development Agency (CCIDA) in connection with the expansion of the Company’s CPG facility in Franklinville, New York and other proposed capital expenditures. The incentives include certain real property tax and sales tax abatements in connection with the proposed project. The Company’s CPG entered into customary lease and leaseback arrangements with the CCIDA to facilitate the various tax incentives. The Company’s CPG was awarded a $300,000 grant from Cattaraugus County, New York. The grant was used towards new manufacturing equipment in connection with the proposed expansion project. As part of the terms of the Grant Contract with Cattaraugus County, the Company’s CPG has agreed to maintain certain employment levels for a period of five years from the date of the agreement, March 13, 2014. If the employment levels are not maintained, the Company will be required to repay the grant proceeds on a prorated basis. The Company has maintained the required employment levels as of June 30, 2017. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2017 | |
Litigation [Abstract] | |
Litigation | 8. Litigation Except as set forth in Note 7, Commitments and Contingencies, 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 | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company paid legal fees and disbursements of approximately $144,000 and $23,000 in the six month period ended June 30, 2017 and 2016, respectively, for services provided by a law firm that is owned by a member of the Company’s Board of Directors. Legal fees paid for the three month period ended June 30, 2017 and 2016 amounted to approximately $94,000 and $0, respectively. As of June 30, 2017, the Company had accrued additional legal fees of approximately $23,000 with this firm. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | 10. Business Segments The Company operates in two business segments, ATG and 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. As of June 30, 2017, the Company had identifiable assets of approximately $34,668,000 ($35,620,000 – December 31, 2016) of which approximately $23,603,000 ($24,037,000 – December 31, 2016) was for ATG and approximately $11,065,000 ($11,583,000 – December 31, 2016) was for CPG. Information regarding the Company’s operations in these segments is summarized as follows: ($000's omitted) ATG CPG Consolidated Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 Revenues from unaffiliated customers $ 15,050 $ 15,365 $ 3,669 $ 3,878 $ 18,719 $ 19,243 Cost of goods sold, exclusive of depreciation and amortization (11,345 ) (10,643 ) (3,325 ) (3,202 ) (14,670 ) (13,845 ) Selling, general and administrative (2,493 ) (2,236 ) (950 ) (921 ) (3,443 ) (3,157 ) Depreciation and amortization (300 ) (276 ) (128 ) (136 ) (428 ) (412 ) Interest expense (23 ) (21 ) (15 ) (15 ) (38 ) (36 ) Other income, net 4 10 1 - 5 10 Income (loss) before income tax provision (benefits) 893 2,199 (748 ) (396 ) 145 1,803 Income tax provision (benefits) 239 660 (225 ) (119 ) 14 541 Net income (loss) $ 654 $ 1,539 $ (523 ) $ (277 ) $ 131 $ 1,262 Capital expenditures $ 495 $ 543 $ 76 $ 158 $ 571 $ 701 ($000's omitted) ATG CPG Consolidated Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 Revenues from unaffiliated customers $ 7,630 $ 8,256 $ 1,986 $ 2,040 $ 9,616 $ 10,296 Cost of goods sold, exclusive of depreciation and amortization (5,881 ) (5,474 ) (1,747 ) (1,655 ) (7,628 ) (7,129 ) Selling, general and administrative (1,166 ) (1,105 ) (445 ) (416 ) (1,611 ) (1,521 ) Depreciation and amortization (154 ) (136 ) (64 ) (69 ) (218 ) (205 ) Interest expense (8 ) (10 ) (7 ) (7 ) (15 ) (17 ) Other income, net 4 10 1 - 5 10 Income (loss) before income tax provision (benefits) 425 1,541 (276 ) (107 ) 149 1,434 Income tax provision (benefits) 127 462 (83 ) (32 ) 44 430 Net income (loss) $ 298 $ 1,079 $ (193 ) $ (75 ) $ 105 $ 1,004 Capital expenditures $ 314 $ 404 $ 74 $ 119 $ 388 $ 523 |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income | 11. Other Income Components of other income include interest income on cash and cash equivalents, and other amounts not directly related to the sale of the Company’s products. Other income is immaterial in relationship to the consolidated financial statements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events None. |
Business Description and Summ18
Business Description and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
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 and Cash Equivalents | Cash and Cash Equivalents The Company considers cash and cash equivalents to include all cash accounts and short-term investments purchased with an original maturity of three months or less. |
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 $78,000 at June 30, 2017 and $77,000 at December 31, 2016. The Company does not accrue interest on past due receivables. |
Revenue Recognition | Revenue Recognition Revenues are recognized as services are rendered or as units are shipped and at the designated FOB point consistent with the transfer of title, risks and rewards of ownership. Such 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. |
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 one year are applied to the gross value of the inventory through a reserve of approximately $1,525,000 and $1,513,000 at June 30, 2017 and December 31, 2016, 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 one year of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. These amounts are not included in the inventory reserve discussed above. |
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 income 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 separate Pennsylvania and Arkansas 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 June 30, 2017 or December 31, 2016, and did not recognize any interest and/or penalties in its consolidated statements of income during the six months ended June 30, 2017 and 2016. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of June 30, 2017 and December 31, 2016. The 2013 through 2015 federal and state tax returns remain subject to examination. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Income taxes paid during the six months ended June 30, 2017 and 2016 amounted to approximately $165,000 and $134,000, respectively. Interest paid amounted to approximately $38,000 and $36,000, respectively, during the six months ended June 30, 2017 and 2016. |
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. 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 June 30, 2017 and December 31, 2016. |
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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, 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 | Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The ASU changes the measurement principle for certain inventory methods from the lower of cost or market to the lower of cost and net realizable value. Adoption of this new guidance had no impact on the Company’s consolidated results of operations and financial position. Effective January 1, 2017, the Company adopted new guidance issued by the FASB ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. The guidance requires that all deferred tax assets and deferred tax liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Adoption of this new guidance during the reporting period resulted in the reclassification of a deferred tax liability, of $661,000 from current to noncurrent at June 30, 2017 and December 31, 2016. The deferred tax liability, for both reporting periods offsets the deferred tax asset, as presented on the balance sheet at June 30, 2017 and December 31, 2016. Effective January 1, 2017, the Company adopted new guidance issued by the FASB ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a Company’s payments for tax withholdings should be classified. Adoption of this new guidance has not had a material impact on the Company’s consolidated results of operations and financial position. Effective January 1, 2017, the Company selected early adoption of the new guidance issued by the FASB ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. Adoption of this new guidance has not had a material impact on the Company’s consolidated results of operations and financial position. In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. The other components of net periodic benefit cost will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. This update is effective for annual periods beginning after December 15, 2017. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The new revenue recognition standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In August 2015, the FASB affirmed its proposal to defer the effective date of the standard to annual reporting periods (and interim reporting periods within those years) beginning after December 15, 2017. Entities are permitted to apply the new revenue standard early, but not before the original effective date of annual periods beginning after December 15, 2016. The Company’s revenues are recognized as services are rendered or as units are shipped and at the designated FOB point. The Company does not believe the adoption will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” There are elements of the new standard that could impact almost all entities to some extent, although the lessees will likely see the most significant changes. Lessee will need to recognize virtually all of their leases on the balance sheet, by recording the right-of-use asset and a lease liability. Public business entities are required to adopt the new leasing standard for fiscal years, and interim period within those fiscal years, beginning December 15, 2018. For calendar year-end public companies, this means an adoption date of January 1, 2019. Early adoption is permitted. The Company does not believe the adoption will have a material impact on the financial statements and disclosures. |
Business Description and Summ19
Business Description and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of property, plant and equipment estimated useful life | Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years |
Inventories (Table)
Inventories (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, 2017 2016 ($000's omitted) Raw material and common parts, net of reserve $ 8,292 $ 7,618 Work-in-process 2,544 2,062 Finished goods, net of reserve 2,234 3,613 Total inventories $ 13,070 $ 13,293 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | June 30, December 31, 2017 2016 ($000's omitted) Land $ 7 $ 21 Buildings 10,138 10,422 Machinery, equipment and tooling 16,151 15,826 Construction in progress 335 77 26,631 26,346 Less accumulated depreciation (16,748 ) (16,409 ) $ 9,883 $ 9,937 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | 2017 2016 ($000's omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 $ 1,943 $ 2,096 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly prinicipal payments of $23,810 through December 1, 2021 1,286 1,428 3,229 3,524 Less current portion (548 ) (548 ) $ 2,681 $ 2,976 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of stockholders equity | Common Stock ($000's omitted except for share data) Accumulated Number Capital in Other Total of shares excess of Retained Treasury Comprehensive shareholders' issued Amount par value earnings ESOT stock Loss equity Balance at December 31, 2016 2,614,506 $ 523 $ 14,160 $ 14,768 $ (763 ) $ (1,551 ) $ (20 ) $ 27,117 Net income 131 131 Purchase of treasury shares (160 ) (160 ) Cash dividend (376 ) (376 ) Stock based compensation, net of tax benefit - - 6 - - 101 - 107 Balance at June 30, 2017 2,614,506 $ 523 $ 14,166 $ 14,523 $ (763 ) $ (1,610 ) $ (20 ) $ 26,819 |
Schedule of earnings per share | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ($000's omitted except per share data) Net Income $ 105 $ 1,004 $ 131 $ 1,262 Weighted average common shares outstanding (basic) 2,251 2,220 2,251 2,195 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 43 92 43 92 Weighted average common shares outstanding (diluted) 2,294 2,312 2,294 2,287 Basic Net income per share $ 0.05 $ 0.45 $ 0.06 $ 0.57 Diluted Net income per share $ 0.05 $ 0.43 $ 0.06 $ 0.55 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of information regarding operations in business segment | ($000's omitted) ATG CPG Consolidated Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 Revenues from unaffiliated customers $ 15,050 $ 15,365 $ 3,669 $ 3,878 $ 18,719 $ 19,243 Cost of goods sold, exclusive of depreciation and amortization (11,345 ) (10,643 ) (3,325 ) (3,202 ) (14,670 ) (13,845 ) Selling, general and administrative (2,493 ) (2,236 ) (950 ) (921 ) (3,443 ) (3,157 ) Depreciation and amortization (300 ) (276 ) (128 ) (136 ) (428 ) (412 ) Interest expense (23 ) (21 ) (15 ) (15 ) (38 ) (36 ) Other income, net 4 10 1 - 5 10 Income (loss) before income tax provision (benefits) 893 2,199 (748 ) (396 ) 145 1,803 Income tax provision (benefits) 239 660 (225 ) (119 ) 14 541 Net income (loss) $ 654 $ 1,539 $ (523 ) $ (277 ) $ 131 $ 1,262 Capital expenditures $ 495 $ 543 $ 76 $ 158 $ 571 $ 701 ($000's omitted) ATG CPG Consolidated Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2017 2016 2017 2016 2017 2016 Revenues from unaffiliated customers $ 7,630 $ 8,256 $ 1,986 $ 2,040 $ 9,616 $ 10,296 Cost of goods sold, exclusive of depreciation and amortization (5,881 ) (5,474 ) (1,747 ) (1,655 ) (7,628 ) (7,129 ) Selling, general and administrative (1,166 ) (1,105 ) (445 ) (416 ) (1,611 ) (1,521 ) Depreciation and amortization (154 ) (136 ) (64 ) (69 ) (218 ) (205 ) Interest expense (8 ) (10 ) (7 ) (7 ) (15 ) (17 ) Other income, net 4 10 1 - 5 10 Income (loss) before income tax provision (benefits) 425 1,541 (276 ) (107 ) 149 1,434 Income tax provision (benefits) 127 462 (83 ) (32 ) 44 430 Net income (loss) $ 298 $ 1,079 $ (193 ) $ (75 ) $ 105 $ 1,004 Capital expenditures $ 314 $ 404 $ 74 $ 119 $ 388 $ 523 |
Business Description and Summ25
Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 40 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 20 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 3 years |
Business Description and Summ26
Business Description and Summary of Significant Accounting Policies (Detail Textuals) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 78,000 | $ 77,000 | |
Inventory reserve | 1,525,000 | 1,513,000 | |
Income taxes paid | 165,000 | $ 134,000 | |
Interest paid | 38,000 | $ 36,000 | |
Reclassification of deferred tax liability from current to noncurrent | $ 661,000 | $ 661,000 |
Inventories - Summary of invent
Inventories - Summary of inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw material and common parts, net of reserve | $ 8,292 | $ 7,618 |
Work-in-process | 2,544 | 2,062 |
Finished goods, net of reserve | 2,234 | 3,613 |
Total inventories | $ 13,070 | $ 13,293 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 26,631 | $ 26,346 |
Less accumulated depreciation | (16,748) | (16,409) |
Total property, plant and equipment | 9,883 | 9,937 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 7 | 21 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 10,138 | 10,422 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 16,151 | 15,826 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 335 | $ 77 |
Property, Plant and Equipment29
Property, Plant and Equipment (Detail Textuals) - USD ($) | Mar. 09, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||||||
Sell unused commercial real property in Franklinville, New York | $ 180,000 | |||||
Depreciation and amortization expense | $ 218,000 | $ 205,000 | $ 428,000 | $ 412,000 | ||
Advanced Technology Group ("ATG") | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Construction in progress | $ 335,000 | $ 335,000 | $ 77,000 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,229 | $ 3,524 |
Less current portion | (548) | (548) |
Long-term debt, Noncurrent | 2,681 | 2,976 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,943 | 2,096 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly principal payments of $23,810 through December 1, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,286 | $ 1,428 |
Long-Term Debt - Summary of l31
Long-Term Debt - Summary of long term debt (Parentheticals) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 | |
Debt Instrument [Line Items] | |
Description of rate basis | Libor |
Percentage of floating interest rate payable | 1.40% |
Percentage of fixed interest rate payable | 2.45% |
Frequency of principal payments | Monthly |
Monthly principal payments | $ 21,833 |
Balloon payment due December 1, 2021 | $ 786,000 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.45% as of June 30, 2017), monthly principal payments of $23,810 through December 1, 2021 | |
Debt Instrument [Line Items] | |
Description of rate basis | Libor |
Percentage of floating interest rate payable | 1.40% |
Percentage of fixed interest rate payable | 2.45% |
Frequency of principal payments | Monthly |
Monthly principal payments | $ 23,810 |
Long-Term Debt (Detail Textuals
Long-Term Debt (Detail Textuals) | Jun. 21, 2017USD ($) |
Debt Disclosure [Abstract] | |
Line of credit | $ 2,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of common shareholders' equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 27,117 | |||
Net Income | $ 105 | $ 1,004 | 131 | $ 1,262 |
Purchase of treasury shares | (160) | |||
Cash dividend | (376) | |||
Stock based compensation, net of tax benefit | 107 | |||
Balance | $ 26,819 | $ 26,819 | ||
Balance (shares) | 2,614,506 | 2,614,506 | ||
ESOT | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ (763) | |||
Balance | $ (763) | (763) | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 523 | |||
Balance (shares) | 2,614,506 | |||
Balance | $ 523 | $ 523 | ||
Balance (shares) | 2,614,506 | 2,614,506 | ||
Capital in excess of par value | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 14,160 | |||
Stock based compensation, net of tax benefit | 6 | |||
Balance | $ 14,166 | 14,166 | ||
Retained earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | 14,768 | |||
Net Income | 131 | |||
Cash dividend | (376) | |||
Balance | 14,523 | 14,523 | ||
Treasury stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (1,551) | |||
Purchase of treasury shares | (160) | |||
Stock based compensation, net of tax benefit | 101 | |||
Balance | (1,610) | (1,610) | ||
Accumulated other comprehensive loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (20) | |||
Balance | $ (20) | $ (20) |
Shareholders' Equity - Calculat
Shareholders' Equity - Calculation of earning per share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||||
Net Income | $ 105 | $ 1,004 | $ 131 | $ 1,262 |
Weighted average common shares outstanding (basic) (in shares) | 2,251 | 2,220 | 2,251 | 2,195 |
Incremental shares from assumed conversions of stock options (in shares) | ||||
Unvested restricted stock (in shares) | 43 | 92 | 43 | 92 |
Weighted average common Shares outstanding (diluted) (in shares) | 2,294 | 2,312 | 2,294 | 2,287 |
Basic | ||||
Net income per share (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.06 | $ 0.57 |
Diluted | ||||
Net income per share (in dollars per share) | $ 0.05 | $ 0.43 | $ 0.06 | $ 0.55 |
Shareholders' Equity (Detail Te
Shareholders' Equity (Detail Textuals) - Share Repurchase Program | 6 Months Ended |
Jun. 30, 2017shares | |
Equity, Class of Treasury Stock [Line Items] | |
Number of common shares authorized to be purchased | 450,000 |
Shares purchased during period | 345,404 |
Remaining number of shares authorized to be purchased | 104,596 |
Shareholders' Equity (Detail 36
Shareholders' Equity (Detail Textuals 1) - USD ($) | Jan. 01, 2017 | Apr. 11, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of restricted stock shares vested | 39,750 | |||
Number of shares withheld and repurchased | 15,991 | |||
Value of shares withheld and repurchased | $ 160,000 | |||
2012 Long-Term Incentive Plan | Restricted stock | Executive Officers | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of restricted stock issued | 51,000 | |||
Compensation expense not yet recognized | $ 370,000 | |||
Expense recognized for issuance of restricted shares | $ 107,000 | $ 238,000 |
Shareholders' Equity (Detail 37
Shareholders' Equity (Detail Textuals 2) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |
May 16, 2017 | Jun. 30, 2017 | |
Equity [Abstract] | ||
Dividends declaration date | May 16, 2017 | |
Common stock dividend per share | $ 0.15 | |
Dividends payable date | Jul. 14, 2017 | |
Dividends payable record date | Jun. 30, 2017 | |
Dividend payable | $ 376 | $ 376 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Textuals) | 6 Months Ended |
Jun. 30, 2017USD ($)ft² | |
Loss Contingencies [Line Items] | |
Accrued arbitration award liability | $ 528,000 |
Term of project | 5 years |
Area of additional construction facility for capital improvements | ft² | 28,000 |
Cost of the project | $ 4,000,000 |
Completed cost of the project | 3,432,000 |
CPG | |
Loss Contingencies [Line Items] | |
Amount of grant received from Cattaraugus County, New York | $ 300,000 |
Term of maintaining employment level | 5 years |
Aero, Inc. | |
Loss Contingencies [Line Items] | |
Amount of alleged damages | $ 3,000,000 |
Amount of counter claim | $ 3,191,000 |
Related Party Transactions (Det
Related Party Transactions (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transactions [Abstract] | ||||
Legal fees and disbursements | $ 94,000 | $ 0 | $ 144,000 | $ 23,000 |
Accrued additional legal fees | $ 23,000 | $ 23,000 |
Business Segments - Summary of
Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | $ 9,616 | $ 10,296 | $ 18,719 | $ 19,243 |
Cost of goods sold, exclusive of depreciation and amortization | (7,628) | (7,129) | (14,670) | (13,845) |
Selling, general and administrative | (1,611) | (1,521) | (3,443) | (3,157) |
Depreciation and amortization | (218) | (205) | (428) | (412) |
Interest expense | (15) | (17) | (38) | (36) |
Other income, net | 5 | 10 | 5 | 10 |
Income (loss) before income tax provision (benefits) | 149 | 1,434 | 145 | 1,803 |
Income tax provision (benefits) | 44 | 430 | 14 | 541 |
Net income (loss) | 105 | 1,004 | 131 | 1,262 |
Capital expenditures | 571 | 701 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | 9,616 | 10,296 | 18,719 | 19,243 |
Cost of goods sold, exclusive of depreciation and amortization | (7,628) | (7,129) | (14,670) | (13,845) |
Selling, general and administrative | (1,611) | (1,521) | (3,443) | (3,157) |
Depreciation and amortization | (218) | (205) | (428) | (412) |
Interest expense | (15) | (17) | (38) | (36) |
Other income, net | 5 | 10 | 5 | 10 |
Income (loss) before income tax provision (benefits) | 149 | 1,434 | 145 | 1,803 |
Income tax provision (benefits) | 44 | 430 | 14 | 541 |
Net income (loss) | 105 | 1,004 | 131 | 1,262 |
Capital expenditures | 388 | 523 | 571 | 701 |
Operating Segments | Advanced Technology Group ("ATG") | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | 7,630 | 8,256 | 15,050 | 15,365 |
Cost of goods sold, exclusive of depreciation and amortization | (5,881) | (5,474) | (11,345) | (10,643) |
Selling, general and administrative | (1,166) | (1,105) | (2,493) | (2,236) |
Depreciation and amortization | (154) | (136) | (300) | (276) |
Interest expense | (8) | (10) | (23) | (21) |
Other income, net | 4 | 10 | 4 | 10 |
Income (loss) before income tax provision (benefits) | 425 | 1,541 | 893 | 2,199 |
Income tax provision (benefits) | 127 | 462 | 239 | 660 |
Net income (loss) | 298 | 1,079 | 654 | 1,539 |
Capital expenditures | 314 | 404 | 495 | 543 |
Operating Segments | CPG | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | 1,986 | 2,040 | 3,669 | 3,878 |
Cost of goods sold, exclusive of depreciation and amortization | (1,747) | (1,655) | (3,325) | (3,202) |
Selling, general and administrative | (445) | (416) | (950) | (921) |
Depreciation and amortization | (64) | (69) | (128) | (136) |
Interest expense | (7) | (7) | (15) | (15) |
Other income, net | 1 | 1 | ||
Income (loss) before income tax provision (benefits) | (276) | (107) | (748) | (396) |
Income tax provision (benefits) | (83) | (32) | (225) | (119) |
Net income (loss) | (193) | (75) | (523) | (277) |
Capital expenditures | $ 74 | $ 119 | $ 76 | $ 158 |
Business Segments (Detail Textu
Business Segments (Detail Textuals) | 6 Months Ended | |
Jun. 30, 2017USD ($)Segment | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Total identifiable assets | $ 34,668,000 | $ 35,620,000 |
Number of operating segments | Segment | 2 | |
Operating Segments | Advanced Technology Group ("ATG") | ||
Segment Reporting Information [Line Items] | ||
Total identifiable assets | $ 23,603,000 | 24,037,000 |
Operating Segments | CPG | ||
Segment Reporting Information [Line Items] | ||
Total identifiable assets | $ 11,065,000 | $ 11,583,000 |