Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
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 | 2,438,209 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 3,581 | $ 4,166 |
Accounts receivable, net | 6,226 | 6,022 |
Inventories, net | 12,105 | 12,040 |
Prepaid income taxes | 114 | |
Deferred income taxes | 1,060 | 2,812 |
Other assets | 615 | 450 |
Total current assets | 23,701 | 25,490 |
Property, plant and equipment, net | 9,652 | 9,375 |
Other non-current assets | 383 | 380 |
Total Assets | 33,736 | 35,245 |
Current liabilities: | ||
Current portion of long-term debt | 548 | 548 |
Dividend payable | 375 | |
Accounts payable | 1,677 | 1,345 |
Accrued employee compensation and benefit costs | 2,057 | 1,773 |
Accrued arbitration award liability | 5,152 | |
Accrued income taxes | 31 | |
Other accrued liabilities | 318 | 444 |
Total current liabilities | 4,975 | 9,293 |
Long-term debt | 3,798 | 4,072 |
Accrued arbitration award liability | 445 | 445 |
Deferred income taxes | 555 | 555 |
Shareholders' equity: | ||
Common stock, par value $.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,261,356 (2,278,791 - 2014) shares | 523 | 523 |
Capital in excess of par value | 14,091 | 14,068 |
Retained earnings | 12,193 | 9,176 |
Accumulated other comprehensive loss | (14) | (14) |
Employee stock ownership trust commitment | (964) | (964) |
Treasury stock, at cost 176,297 (158,862 - 2014) shares | (1,866) | (1,909) |
Total shareholders' equity | 23,963 | 20,880 |
Total Liabilities and Shareholders' Equity | $ 33,736 | $ 35,245 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
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 | 2,261,356 | 2,278,791 |
Treasury stock, shares | 176,297 | 158,862 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 9,242 | $ 7,995 | $ 17,413 | $ 14,985 |
Cost, expenses and other income: | ||||
Cost of goods sold, exclusive of depreciation and amortization | 6,926 | 5,850 | 13,402 | 11,288 |
Selling, general and administrative | 1,312 | 1,343 | 3,077 | 2,919 |
Interest expense | 14 | 10 | 35 | 19 |
Arbitration award expense | 50 | |||
Depreciation and amortization | 177 | 171 | 340 | 340 |
Insurance proceeds - arbitration | (4,500) | |||
Other income, net | (128) | (11) | (130) | (12) |
Total expenses | 8,301 | 7,363 | 12,274 | 14,554 |
Income before income tax provision | 941 | 632 | 5,139 | 431 |
Income tax provision | 320 | 185 | 1,747 | 129 |
Net income | $ 621 | $ 447 | $ 3,392 | $ 302 |
Basic | ||||
Net income per share (in dollars per share) | $ 0.28 | $ 0.21 | $ 1.56 | $ 0.14 |
Diluted | ||||
Net income per share (in dollars per share) | $ 0.27 | $ 0.21 | $ 1.50 | $ 0.14 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows related to operating activities: | ||
Net income | $ 3,392 | $ 302 |
Adjustments to reconcile net income to net cash provided (used) by operating activities | ||
Depreciation and amortization | 340 | 340 |
Deferred income tax | 1,752 | |
Stock based compensation | 180 | 180 |
Increase in inventory reserve | 55 | 81 |
Decrease in allowance for doubtful accounts | (7) | (43) |
Loss on disposal of property and equipment | (5) | |
Change in assets and liabilities: | ||
Accounts receivable | (197) | (543) |
Inventories | (120) | (1,007) |
Prepaid income taxes | (114) | 154 |
Other assets | (165) | (154) |
Other non-current assets | (3) | (7) |
Accounts payable | 332 | 543 |
Accrued employee compensation and benefit costs | 284 | 41 |
Accrued arbitration award liability | (5,152) | |
Other accrued liabilities | (126) | 3 |
Accrued income taxes | (29) | |
Net cash provided (used) by operating activities | 417 | (110) |
Cash flows related to investing activities: | ||
Capital expenditures - property, plant and equipment | (647) | (877) |
Proceeds from sale of assets | 33 | |
Net cash used in investing activities | (614) | (877) |
Cash flows related to financing activities: | ||
Principal payments on long-term debt | (274) | (9) |
Purchase of treasury shares | (114) | (189) |
Net cash used in financing activities | (388) | (198) |
Net decrease in cash and cash equivalents | (585) | (1,185) |
Cash and cash equivalents at beginning of period | 4,166 | 4,502 |
Cash and cash equivalents at end of period | $ 3,581 | $ 3,317 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The consolidated financial statements should be read in conjunction with the 2014 annual report and the notes thereto. |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Business Description and Summary Of Significant 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 $59,000 at June 30, 2015 and $66,000 at December 31, 2014. 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 standard 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 $1,309,000 and $1,254,000 at June 30, 2015 and December 31, 2014, 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. 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 operating loss and credit carryforwards and temporary differences between the carrying amounts and the tax basis of assets and liabilities. 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, 2015 or December 31, 2014, and did not recognize any interest and/or penalties in its consolidated statements of income during the three and six months ended June 30, 2015 and 2014. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of June 30, 2015 and December 31, 2014. The 2011 through 2013 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid during the six months ended June 30, 2015 amounted to approximately $136,000. Income taxes refunded (net of payments) during the six months ended June 30, 2014 amounted to approximately $36,000. Interest paid during the six months ended June 30, 2015 and 2014 amounted to approximately $ 43,000 and $19,000 , respectively. On May 29, 2015, the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on July 15, 2015 to shareholders of record on June 30, 2015 and was approximately $375,000 in the aggregate. 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, 2015 and December 31, 2014. 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. 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. Refer to Note 9, Business Segments, for disclosures related to customer concentrations. 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 In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. For public business entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, entities are required to comply with the applicable disclosures for a change in an accounting principle. The Company plans to adopt ASU 2015-03 effective January 1, 2016; as such, the Company plans to present debt issuance costs as a direct deduction from the carrying amounts of its debt liabilities and to provide all necessary disclosures beginning with the Form 10-Q for the period ended March 31, 2016. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories June 30, December 31, ($000’s omitted) Raw material and common parts, net of reserve $ 6,715 $ 6,680 Work-in-process, net of reserve 2,970 2,280 Finished goods, net of reserve 2,420 3,080 Total inventories $ 12,105 $ 12,040 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment June 30, December 31, ($000’s omitted) Land $ 21 $ 21 Buildings 10,272 7,916 Machinery, equipment and tooling 14,228 13,530 Construction in progress 360 2,817 24,881 24,284 Less accumulated depreciation and amortization (15,229 ) (14,909 ) Total property, plant and equipment $ 9,652 $ 9,375 Property, plant and equipment includes land and building in Elma, New York, that was previously under a $5,000,000 capital lease and was purchased on December 1, 2014 for a nominal amount. As of June 30, 2015 and December 31, 2014, accumulated depreciation on the building amounted to approximately $2,876,000 and $2,811,000, respectively. The associated current and long-term liabilities are discussed in Note 5, Long-Term Debt, of the accompanying consolidated financial statements. Depreciation and amortization expense amounted to $177,00 0 and $ for the three month periods ended June 30, 2015 and 2014, respectively, and amounted to $340,000 for the six month periods ended June 30, 2015 and 2014, 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, 2015, there is approximately $300,000 ($2,529,000 – 2014) of construction in progress included in property, plant and equipment related to facility expansion and renovation project at the Consumer Products Group and $60,000 ($288,000 – 2014) related to capital projects at the Advanced Technology Group. Approximately $2,400,000 was placed in service in the second quarter of 2015. See Note 7, Commitments and Contingencies, of the accompanying consolidated financial statements. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 5. Long-Term Debt June 30, December 31, ($000’s omitted) Term loan payable to a financial institution; $ 2,489 $ 2,620 Term loan payable to a financial institution; 1,857 2,000 4,346 4,620 Less current portion (548 ) (548 ) $ 3,798 $ 4,072 The Company has a $2,000,000 line of credit on which there was no balance outstanding at June 30, 2015 and December 31, 2014. 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 June 30, 2015 and December 31, 2014 the Company was in compliance with these covenants. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity ($000’s omitted except for share data) Common Stock Accumulated Other Comprehensive Loss Number of shares issued Amount Capital in excess of par value Retained earnings ESOT Treasury stock Total shareholders’ Balance at December 31, 2014 2,614,506 $ 523 $ 14,068 $ 9,176 $ (964 ) $ (1,909 ) $ (14 ) $ 20,880 Net income - - - 3,392 - - - 3,392 Purchase of treasury shares - - - - - (114 ) - (114 ) Dividend payable - - - (375 ) - - - (375 ) Stock based compensation - - 23 - - 157 - 180 Balance at June 30, 2015 2,614,506 $ 523 $ 14,091 $ 12,193 $ (964 ) $ (1,866 ) $ (14 ) $ 23,963 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, 2015, the Company has purchased 331,970 shares and there remain shares available to purchase under this program. There were no shares purchased by the Company during the six month period ended June 30, 2015. On April 18, 2013, the Company issued 165,000 shares of restricted stock to Executive Officers of the Company under the Company’s 2012 Long-Term Incentive Plan that was approved by the shareholders at the 2012 Annual Meeting of Shareholders. This plan authorizes the issuance of up to 300,000 shares. The restricted share awards vest over four year periods between January 2014 and January 2017; however, 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 $1,336,500 and will be recognized over the four year requisite service period. Included in the six months ended June 30, 2015 and 2014 is approximately $180,000, respectively, of compensation expense related to the restrictive share awards. On January 1, 2015, 41,250 shares of restricted stock vested of which 17,435 shares were withheld and repurchased by the Company for approximately $114,000 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 29, 2015, the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on July 15, 2015 to shareholders of record on June 30, 2015 and was approximately $375,000 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 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 2015 2014 2015 2014 ($000’s omitted except per share data) Net income $ 621 $ 447 $ 3,392 $ 302 Weighted average common shares outstanding (basic) 2,179 2,141 2,179 2,142 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 82 124 82 124 Weighted average common Shares outstanding (diluted) 2,261 2,265 2,261 2,266 Basic Net income per share $ 0.28 $ 0.21 $ 1.56 $ 0.14 Diluted Net income per share $ 0.27 $ 0.21 $ 1.50 $ 0.14 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Litigation. Final Arbitration Award. The arbitration award, including interest and attorney’s fees and disbursements was approximately $5,201,000. The Company recognized the expense in fiscal 2014 and paid the award on March 6, 2015. The Company is also expected to pay post employment health related benefits for the Former Employee, of which approximately $445,000 has been accrued as of June 30, 2015 and is reflected as Accrued Arbitration Award Liability in the accompanying balance sheet. Agreement with respect to Insurance Claim Facility Expansion. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2015 | |
Litigation [Abstract] | |
Litigation | 8. Litigation Except as set forth in Note 7, Commitments and Contingencies, there are no other legal proceedings which are material to the Company 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. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | 9. 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. As of June 30, 2015, the Company had identifiable assets of approximately $ 33,736,000 ($35,245,000 – December 31, 2014) of which approximately $ ($23,092,000 – December 31, 2014) was for ATG and approximately $ ($12,153,000 – December 31, 2014) was for CPG. Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): ATG CPG Consolidated Six Months Six Months Six Months 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 13,554 $ 11,559 $ 3,859 $ 3,426 $ 17,413 $ 14,985 Cost of goods sold, exclusive of depreciation and amortization (9,857 ) (8,187 ) (3,545 ) (3,101 ) (13,402 ) (11,288 ) Selling, general and administrative (2,317 ) (2,182 ) (760 ) (737 ) (3,077 ) (2,919 ) Interest expense (20 ) (19 ) (15 ) - (35 ) (19 ) Arbitration award expense (50 ) - - - (50 ) - Depreciation and amortization (241 ) (245 ) (99 ) (95 ) (340 ) (340 ) Insurance proceeds - arbitration 4,500 - - - 4,500 - Other income, net 129 10 1 2 130 12 Income (loss) before income tax provision (benefit) 5,698 936 (559 ) (505 ) 5,139 431 Income tax provision (benefit) 1,937 280 (190 ) (151 ) 1,747 129 Net income (loss) $ 3,761 $ 656 $ (369 ) $ (354 ) $ 3,392 $ 302 Capital expenditures $ 375 $ 453 $ 272 $ 424 $ 647 $ 877 ATG CPG Consolidated Three Months June 30, Three Months June 30, Three Months June 30, 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 7,201 $ 6,254 $ 2,041 $ 1,741 $ 9,242 $ 7,995 Cost of goods sold, exclusive of depreciation and amortization (5,106 ) (4,347 ) (1,820 ) (1,503 ) (6,926 ) (5,850 ) Selling, general and administrative (957 ) (1,042 ) (355 ) (301 ) (1,312 ) (1,343 ) Interest expense (7 ) (10 ) (7 ) - (14 ) (10 ) Depreciation and amortization (124 ) (123 ) (53 ) (48 ) (177 ) (171 ) Other income, net 127 10 1 1 128 11 Income (loss) before income tax provision (benefit) 1,134 742 (193 ) (110 ) 941 632 Income tax provision (benefit) 385 226 (65 ) (41 ) 320 185 Net income (loss) $ 749 $ 516 $ (128 ) $ (69 ) $ 621 $ 447 Capital expenditures $ 187 $ 81 $ 179 $ 378 $ 366 $ 459 |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income | 10. 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, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events None. |
Business Description and Summ17
Business Description and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Business Description and Summary Of Significant 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 $59,000 at June 30, 2015 and $66,000 at December 31, 2014. 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 standard 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 $1,309,000 and $1,254,000 at June 30, 2015 and December 31, 2014, 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. |
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 operating loss and credit carryforwards and temporary differences between the carrying amounts and the tax basis of assets and liabilities. 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, 2015 or December 31, 2014, and did not recognize any interest and/or penalties in its consolidated statements of income during the three and six months ended June 30, 2015 and 2014. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of June 30, 2015 and December 31, 2014. The 2011 through 2013 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, 2015 amounted to approximately $136,000. Income taxes refunded (net of payments) during the six months ended June 30, 2014 amounted to approximately $36,000. Interest paid during the six months ended June 30, 2015 and 2014 amounted to approximately $ 43,000 and $19,000 , respectively. On May 29, 2015, the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on July 15, 2015 to shareholders of record on June 30, 2015 and was approximately $375,000 in the aggregate. |
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, 2015 and December 31, 2014. |
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. |
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. Refer to Note 9, Business Segments, for disclosures related to customer concentrations. |
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 In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. For public business entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, entities are required to comply with the applicable disclosures for a change in an accounting principle. The Company plans to adopt ASU 2015-03 effective January 1, 2016; as such, the Company plans to present debt issuance costs as a direct deduction from the carrying amounts of its debt liabilities and to provide all necessary disclosures beginning with the Form 10-Q for the period ended March 31, 2016. |
Business Description and Summ18
Business Description and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Description and Summary Of Significant 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, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, ($000’s omitted) Raw material and common parts, net of reserve $ 6,715 $ 6,680 Work-in-process, net of reserve 2,970 2,280 Finished goods, net of reserve 2,420 3,080 Total inventories $ 12,105 $ 12,040 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | June 30, December 31, ($000’s omitted) Land $ 21 $ 21 Buildings 10,272 7,916 Machinery, equipment and tooling 14,228 13,530 Construction in progress 360 2,817 24,881 24,284 Less accumulated depreciation and amortization (15,229 ) (14,909 ) Total property, plant and equipment $ 9,652 $ 9,375 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | June 30, December 31, ($000’s omitted) Term loan payable to a financial institution; $ 2,489 $ 2,620 Term loan payable to a financial institution; 1,857 2,000 4,346 4,620 Less current portion (548 ) (548 ) $ 3,798 $ 4,072 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of stockholders equity | ($000’s omitted except for share data) Common Stock Accumulated Other Comprehensive Loss Number of shares issued Amount Capital in excess of par value Retained earnings ESOT Treasury stock Total shareholders’ Balance at December 31, 2014 2,614,506 $ 523 $ 14,068 $ 9,176 $ (964 ) $ (1,909 ) $ (14 ) $ 20,880 Net income - - - 3,392 - - - 3,392 Purchase of treasury shares - - - - - (114 ) - (114 ) Dividend payable - - - (375 ) - - - (375 ) Stock based compensation - - 23 - - 157 - 180 Balance at June 30, 2015 2,614,506 $ 523 $ 14,091 $ 12,193 $ (964 ) $ (1,866 ) $ (14 ) $ 23,963 |
Schedule of earnings per share | Three Months Ended Six Months Ended 2015 2014 2015 2014 ($000’s omitted except per share data) Net income $ 621 $ 447 $ 3,392 $ 302 Weighted average common shares outstanding (basic) 2,179 2,141 2,179 2,142 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 82 124 82 124 Weighted average common Shares outstanding (diluted) 2,261 2,265 2,261 2,266 Basic Net income per share $ 0.28 $ 0.21 $ 1.56 $ 0.14 Diluted Net income per share $ 0.27 $ 0.21 $ 1.50 $ 0.14 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of information regarding operations in business segment | ATG CPG Consolidated Six Months Six Months Six Months 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 13,554 $ 11,559 $ 3,859 $ 3,426 $ 17,413 $ 14,985 Cost of goods sold, exclusive of depreciation and amortization (9,857 ) (8,187 ) (3,545 ) (3,101 ) (13,402 ) (11,288 ) Selling, general and administrative (2,317 ) (2,182 ) (760 ) (737 ) (3,077 ) (2,919 ) Interest expense (20 ) (19 ) (15 ) - (35 ) (19 ) Arbitration award expense (50 ) - - - (50 ) - Depreciation and amortization (241 ) (245 ) (99 ) (95 ) (340 ) (340 ) Insurance proceeds - arbitration 4,500 - - - 4,500 - Other income, net 129 10 1 2 130 12 Income (loss) before income tax provision (benefit) 5,698 936 (559 ) (505 ) 5,139 431 Income tax provision (benefit) 1,937 280 (190 ) (151 ) 1,747 129 Net income (loss) $ 3,761 $ 656 $ (369 ) $ (354 ) $ 3,392 $ 302 Capital expenditures $ 375 $ 453 $ 272 $ 424 $ 647 $ 877 ATG CPG Consolidated Three Months June 30, Three Months June 30, Three Months June 30, 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 7,201 $ 6,254 $ 2,041 $ 1,741 $ 9,242 $ 7,995 Cost of goods sold, exclusive of depreciation and amortization (5,106 ) (4,347 ) (1,820 ) (1,503 ) (6,926 ) (5,850 ) Selling, general and administrative (957 ) (1,042 ) (355 ) (301 ) (1,312 ) (1,343 ) Interest expense (7 ) (10 ) (7 ) - (14 ) (10 ) Depreciation and amortization (124 ) (123 ) (53 ) (48 ) (177 ) (171 ) Other income, net 127 10 1 1 128 11 Income (loss) before income tax provision (benefit) 1,134 742 (193 ) (110 ) 941 632 Income tax provision (benefit) 385 226 (65 ) (41 ) 320 185 Net income (loss) $ 749 $ 516 $ (128 ) $ (69 ) $ 621 $ 447 Capital expenditures $ 187 $ 81 $ 179 $ 378 $ 366 $ 459 |
Business Description and Summ24
Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5-40 years |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5-20 years |
Tooling | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 3-5 years |
Business Description and Summ25
Business Description and Summary of Significant Accounting Policies (Detail Textuals) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Business Description and Summary Of Significant Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 59,000 | $ 66,000 | |
Inventory reserve | 1,309,000 | $ 1,254,000 | |
Income taxes paid | 136,000 | ||
Income taxes refunded (net of payments) | $ 36,000 | ||
Interest paid | $ 43,000 | $ 19,000 |
Business Description and Summ26
Business Description and Summary of Significant Accounting Policies (Detail Textuals 1) - May. 29, 2015 - Dividend Declared - USD ($) | Total |
Dividends Payable [Line Items] | |
Cash dividend declared, amount per share | $ 0.15 |
Dividends payable, declared date | May 29, 2015 |
Dividends payable, date to be paid | Jul. 15, 2015 |
Dividends payable, record date | Jun. 30, 2015 |
Dividends Payable | $ 375,000 |
Inventories - Summary of invent
Inventories - Summary of inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw material and common parts, net of reserve | $ 6,715 | $ 6,680 |
Work-in-process, net of reserve | 2,970 | 2,280 |
Finished goods, net of reserve | 2,420 | 3,080 |
Total inventories | $ 12,105 | $ 12,040 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 24,881 | $ 24,284 |
Less accumulated depreciation and amortization | (15,229) | (14,909) |
Total property, plant and equipment | 9,652 | 9,375 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 21 | 21 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 10,272 | 7,916 |
Less accumulated depreciation and amortization | (2,876) | (2,811) |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 14,228 | 13,530 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 360 | $ 2,817 |
Property, Plant and Equipment29
Property, Plant and Equipment (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Accumulated amortization | $ 15,229 | $ 15,229 | $ 14,909 | ||
Depreciation and amortization expense | 177 | $ 171 | 340 | $ 340 | |
CPG | |||||
Property, Plant and Equipment [Line Items] | |||||
Construction in progress | 300 | 300 | 2,529 | ||
Additions to construction in progress | 2,400 | 2,400 | |||
ATG | |||||
Property, Plant and Equipment [Line Items] | |||||
Construction in progress | 60 | 60 | 288 | ||
Land and building | Elma | |||||
Property, Plant and Equipment [Line Items] | |||||
Nominal amount of capital lease | 5,000 | 5,000 | |||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated amortization | $ 2,876 | $ 2,876 | $ 2,811 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,346 | $ 4,620 |
Less current portion | (548) | (548) |
Long-term debt, Noncurrent | 3,798 | 4,072 |
Term loan payable to a financial institution, principal payments through 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,489 | 2,620 |
Term loan payable to a financial institution, principal payments through 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,857 | $ 2,000 |
Long-Term Debt - Summary of l31
Long-Term Debt - Summary of long term debt (Parentheticals) (Details) - Jun. 30, 2015 - USD ($) | Total |
Term loan payable to a financial institution, principal payments through 2020 | |
Debt Instrument [Line Items] | |
Description of rate basis | Libor |
Percentage of floating interest rate payable | 1.40% |
Frequency of principal payments | monthly |
Monthly principal payments | $ 21,833 |
Percentage of fixed interest rate payable | 1.58% |
Balloon payment due December 1, 2021 | $ 786,000 |
Term loan payable to a financial institution, principal payments through 2021 | |
Debt Instrument [Line Items] | |
Description of rate basis | Libor |
Percentage of floating interest rate payable | 1.40% |
Frequency of principal payments | monthly |
Monthly principal payments | $ 23,810 |
Percentage of fixed interest rate payable | 1.58% |
Long-Term Debt (Detail Textuals
Long-Term Debt (Detail Textuals ) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Line of credit | ||
Debt Instrument [Line Items] | ||
Unsecured line of credit | $ 2,000,000 | $ 2,000,000 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Summary of common shareholders' equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Common Stock | Capital in excess of par value | Retained earnings | ESOT | Treasury stock | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2014 | $ 523 | $ 14,068 | $ 9,176 | $ (964) | $ (1,909) | $ (14) | $ 20,880 |
Balance (shares) at Dec. 31, 2014 | 2,614,506 | 2,614,506 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 3,392 | $ 3,392 | |||||
Purchase of treasury shares | $ (114) | (114) | |||||
Dividend payable | $ (375) | (375) | |||||
Stock based compensation | $ 23 | $ 157 | 180 | ||||
Balance at Jun. 30, 2015 | $ 523 | $ 14,091 | $ 12,193 | $ (964) | $ (1,866) | $ (14) | $ 23,963 |
Balance (shares) at Jun. 30, 2015 | 2,614,506 | 2,614,506 |
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, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | ||||
Net income | $ 621 | $ 447 | $ 3,392 | $ 302 |
Weighted average common shares outstanding (basic) (in shares) | 2,179 | 2,141 | 2,179 | 2,142 |
Incremental shares from assumed conversions of stock options (in shares) | ||||
Unvested restricted stock | 82 | 124 | 82 | 124 |
Weighted average common Shares outstanding (diluted) (in shares) | 2,261 | 2,265 | 2,261 | 2,266 |
Basic | ||||
Net income per share (in dollars per share) | $ 0.28 | $ 0.21 | $ 1.56 | $ 0.14 |
Diluted | ||||
Net income per share (in dollars per share) | $ 0.27 | $ 0.21 | $ 1.50 | $ 0.14 |
Shareholders' Equity (Detail Te
Shareholders' Equity (Detail Textuals) - Jun. 30, 2015 - Share Repurchase Program - shares | Total |
Equity, Class of Treasury Stock [Line Items] | |
Number of common shares authorized to be purchased | 450,000 |
Shares purchased during period | 331,970 |
Remaining number of shares authorized to be purchased | 118,030 |
Shareholders' Equity (Detail 36
Shareholders' Equity (Detail Textuals 1) - 2012 Long-Term Incentive Plan - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jan. 31, 2015 | Apr. 18, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of restricted stock shares vested | 41,250 | |||
Number of shares withheld and repurchased | 17,435 | |||
Value of shares withheld and repurchased | $ 114,000 | |||
Restricted stock | Executive Officers | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of restricted stock issued | 165,000 | |||
Number of shares authorized for issuance | 300,000 | |||
Vesting period of restricted share awards | 4 years | |||
Compensation expense not yet recognized | $ 1,336,500 | |||
Compensation expenses, recognition period | 4 years | |||
Expense recognized for issuance of restricted shares | $ 180,000 | $ 180,000 |
Shareholders' Equity (Detail 37
Shareholders' Equity (Detail Textuals 2) - May. 29, 2015 - Dividend Declared - USD ($) | Total |
Dividends Payable [Line Items] | |
Cash dividend declared, amount per share | $ 0.15 |
Dividends payable, declared date | May 29, 2015 |
Dividends payable, date to be paid | Jul. 15, 2015 |
Dividends payable, record date | Jun. 30, 2015 |
Dividends payable | $ 375,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Textuals) - Jun. 30, 2015 | USD ($)ft² |
Loss Contingencies [Line Items] | |
Final amount of arbitration award paid on March 6, 2015 | $ 5,201,000 |
Received claim for insurance damage | 4,500,000 |
Payments for postemployment benefits | $ 445,000 |
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 | 3,053,000 |
CPG | |
Loss Contingencies [Line Items] | |
Reduction to assets | 273,000 |
Amount of grant received from Cattaraugus County, New York | 300,000 |
Amount of grant received from New York State Community Development Block | $ 416,000 |
Term of maintaining employment level | 5 years |
Aero Metal Products, Inc. (AMP) | |
Loss Contingencies [Line Items] | |
Amount of alleged damages | $ 3,000,000 |
Amount of counter claim | $ 3,191,000 |
Business Segments - Summary of
Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | $ 9,242 | $ 7,995 | $ 17,413 | $ 14,985 |
Cost of goods sold, exclusive of depreciation and amortization | (6,926) | (5,850) | (13,402) | (11,288) |
Selling, general and administrative | (1,312) | (1,343) | (3,077) | (2,919) |
Interest expense | (14) | (10) | (35) | (19) |
Arbitration award expense | (50) | |||
Depreciation and amortization | (177) | (171) | (340) | (340) |
Insurance proceeds - arbitration | 4,500 | |||
Other income, net | 128 | 11 | 130 | 12 |
Income (loss) before income tax provision (benefit) | 941 | 632 | 5,139 | 431 |
Income tax provision (benefit) | 320 | 185 | 1,747 | 129 |
Net income | 621 | 447 | 3,392 | 302 |
Capital expenditures | 647 | 877 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | 9,242 | 7,995 | 17,413 | 14,985 |
Cost of goods sold, exclusive of depreciation and amortization | (6,926) | (5,850) | (13,402) | (11,288) |
Selling, general and administrative | (1,312) | (1,343) | (3,077) | (2,919) |
Interest expense | (14) | (10) | (35) | $ (19) |
Arbitration award expense | (50) | |||
Depreciation and amortization | (177) | (171) | (340) | $ (340) |
Insurance proceeds - arbitration | 4,500 | |||
Other income, net | 128 | 11 | 130 | $ 12 |
Income (loss) before income tax provision (benefit) | 941 | 632 | 5,139 | 431 |
Income tax provision (benefit) | 320 | 185 | 1,747 | 129 |
Net income | 621 | 447 | 3,392 | 302 |
Capital expenditures | 366 | 459 | 647 | 877 |
Operating Segments | ATG | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | 7,201 | 6,254 | 13,554 | 11,559 |
Cost of goods sold, exclusive of depreciation and amortization | (5,106) | (4,347) | (9,857) | (8,187) |
Selling, general and administrative | (957) | (1,042) | (2,317) | (2,182) |
Interest expense | (7) | (10) | (20) | $ (19) |
Arbitration award expense | (50) | |||
Depreciation and amortization | (124) | (123) | (241) | $ (245) |
Insurance proceeds - arbitration | 4,500 | |||
Other income, net | 127 | 10 | 129 | $ 10 |
Income (loss) before income tax provision (benefit) | 1,134 | 742 | 5,698 | 936 |
Income tax provision (benefit) | 385 | 226 | 1,937 | 280 |
Net income | 749 | 516 | 3,761 | 656 |
Capital expenditures | 187 | 81 | 375 | 453 |
Operating Segments | CPG | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from unaffiliated customers | 2,041 | 1,741 | 3,859 | 3,426 |
Cost of goods sold, exclusive of depreciation and amortization | (1,820) | (1,503) | (3,545) | (3,101) |
Selling, general and administrative | (355) | $ (301) | (760) | $ (737) |
Interest expense | (7) | $ (15) | ||
Arbitration award expense | ||||
Depreciation and amortization | (53) | $ (48) | $ (99) | $ (95) |
Insurance proceeds - arbitration | ||||
Other income, net | 1 | 1 | $ 1 | $ 2 |
Income (loss) before income tax provision (benefit) | (193) | (110) | (559) | (505) |
Income tax provision (benefit) | (65) | (41) | (190) | (151) |
Net income | (128) | (69) | (369) | (354) |
Capital expenditures | $ 179 | $ 378 | $ 272 | $ 424 |
Business Segments (Detail Textu
Business Segments (Detail Textuals) | 6 Months Ended | |
Jun. 30, 2015USD ($)Segment | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||
Total identifiable assets | $ 33,736,000 | $ 35,245,000 |
Number of operating segments | Segment | 2 | |
Operating Segments | ATG | ||
Segment Reporting Information [Line Items] | ||
Total identifiable assets | $ 22,229,000 | 23,092,000 |
Operating Segments | CPG | ||
Segment Reporting Information [Line Items] | ||
Total identifiable assets | $ 11,507,000 | $ 12,153,000 |