Servotronics (SVT) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 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	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	[1]	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 2,985		$ 4,166
Accounts receivable, net	6,647		6,022
Inventories, net	12,694		12,040
Deferred income taxes	1,060		2,812
Other assets	830		450
Total current assets	24,216		25,490
Property, plant and equipment, net	10,208		9,375
Other non-current assets	369		380
Total Assets	34,793		35,245
Current liabilities:
Current portion of long-term debt	548		548
Accounts payable	2,019		1,345
Accrued employee compensation and benefit costs	$ 2,121		1,773
Accrued arbitration award liability			5,152
Accrued income taxes	$ 286		31
Other accrued liabilities	382		444
Total current liabilities	5,356		9,293
Long-term debt	3,662		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	14,080		14,068
Retained earnings	12,937		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	(1,787)		(1,909)
Total shareholders' equity	24,775		20,880
Total Liabilities and Shareholders' Equity	$ 34,793		$ 35,245
[1]	(Unaudited)

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2015	[1]	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
[1]	(Unaudited)

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 9,709	$ 8,031	$ 27,122	$ 23,016
Cost, expenses and other income:
Cost of goods sold, exclusive of depreciation and amortization	6,893	6,125	20,295	17,413
Selling, general and administrative	1,486	1,262	4,563	4,181
Interest expense	18	12	53	31
Arbitration award expense		5,419	50	5,419
Depreciation and amortization	185	150	525	490
Insurance proceeds - arbitration			(4,500)
Other income, net	(1)	(4)	(131)	(16)
Total expenses	8,581	12,964	20,855	27,518
Income (loss) before income tax provision	1,128	(4,933)	6,267	(4,502)
Income tax provision (benefit)	384	(1,632)	2,131	(1,503)
Net income (loss)	$ 744	$ (3,301)	$ 4,136	$ (2,999)
Basic
Net income (loss) per share (in dollars per share)	$ 0.34	$ (1.54)	$ 1.90	$ (1.40)
Diluted
Net income (loss) per share (in dollars per share)	$ 0.33	$ (1.46)	$ 1.83	$ (1.32)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015		Sep. 30, 2014
Cash flows related to operating activities:
Net income (loss)	$ 4,136		$ (2,999)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	525		490
Deferred income tax (benefit)	1,752		(1,842)
Stock based compensation	271		271
Increase in inventory reserve	112		177
Increase (decrease) in allowance for doubtful accounts	19		(60)
Loss on disposal of property and equipment	5
Change in assets and liabilities:
Accounts receivable	(644)		(689)
Inventories	(766)		(1,098)
Prepaid income taxes			274
Other assets	(381)		(218)
Other non-current assets	11		(8)
Accounts payable	674		280
Accrued employee compensation and benefit costs	348		28
Accrued arbitration award liability	(5,152)		5,419
Other accrued liabilities	(62)		225
Accrued income taxes	232
Net cash provided by operating activities	1,080		250
Cash flows related to investing activities:
Capital expenditures - property, plant and equipment	(1,395)		(1,777)
Proceeds from sale of assets	33
Net cash used in investing activities	(1,362)		(1,777)
Cash flows related to financing activities:
Principal payments on long-term debt	(410)		(17)
Demand note payable			1,000
Purchase of treasury shares	(114)		(189)
Cash dividend	(375)
Net cash (used) provided by financing activities	(899)		794
Net decrease in cash and cash equivalents	(1,181)		(733)
Cash and cash equivalents at beginning of period	4,166		4,502
Cash and cash equivalents at end of period	$ 2,985	[1]	$ 3,769
[1]	(Unaudited)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 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 nine months ended September 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	9 Months Ended
	Sep. 30, 2015
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 $85,000 at September 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 and $1,254,000 at September 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 September 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 nine months ended September 30, 2015 and 2014. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of September 30, 2015 and December 31, 2014. The 2012 through 2014 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid during the nine months ended September 30, 2015 amounted to approximately $136,000. Income taxes paid (net of refunds) during the nine months ended September 30, 2014 amounted to approximately $44,000. Interest paid during the nine months ended September 30, 2015 and 2014 amounted to approximately $ , 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 September 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. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which adds comments from the Securities and Exchange Commission (SEC) addressing ASU 2015-03, as discussed on the previous page, and debt issuance costs related to line-of-credit arrangements. The SEC commented it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company plans to adopt ASU 2015-15 in connection with its adoption of ASU 2015-03 effective January 1, 2016. The Company does not anticipate the adoption of ASU 2015-15 will have a material impact on the Company's financial condition or results of operations. In July 2015, the FASB issued 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. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the guidance to determine the impact it may have to its consolidated financial statements. 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 standard shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the new guidance to determine the impact it may have to its consolidated financial statements.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	3. Inventories September 30, December 31, ($000’s omitted) Raw material and common parts, net of reserve $ 6,883 $ 6,680 Work-in-process, net of reserve 3,229 2,280 Finished goods, net of reserve 2,582 3,080 Total inventories $ 12,694 $ 12,040

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	4. Property, Plant and Equipment September 30, 2015 December 31, 2014 ($000’s omitted) Land $ 21 $ 21 Buildings 10,326 7,916 Machinery, equipment and tooling 14,664 13,530 Construction in progress 608 2,817 25,619 24,284 Less accumulated depreciation and amortization (15,411 ) (14,909 ) Total property, plant and equipment $ 10,208 $ 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 September 30, 2015 and December 31, 2014, accumulated depreciation on the building amounted to approximately $2,907,000 and $2,811,000, respectively. The associated current and long-term liabilities are discussed in Note 5, Long-Term Debt. Depreciation and amortization expense amounted to $185,00 and $ for the three month periods ended September 30, 2015 and 2014, respectively, and amounted to $525,000 and $490,000 for the nine month periods ended September 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 September 30, 2015, there is approximately $431,000 ($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 $178,000 ($288,000 – 2014) related to capital projects at the Advanced Technology Group. Approximately $2,800,000 was placed in service in 2015. See Note 7, Commitments and Contingencies.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt	5. Long-Term Debt September 30, 2015 December 31, 2014 ($000’s omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.60% as of September 30, 2015); monthly principal payments of $21,833 through 2020 with a balloon payment of $786,000 due December 1, 2021 $ 2,424 $ 2,620 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.60% as of September 30, 2015); monthly principal payments of $23,810 through 2021 1,786 2,000 4,210 4,620 Less current portion (548 ) (548 ) $ 3,662 $ 4,072 The Company has a $2,000,000 line of credit on which there was no balance outstanding at September 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 September 30, 2015 and December 31, 2014 the Company was in compliance with these covenants.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Shareholders' Equity	6. Shareholders’ Equity ($000’s omitted except for share data) Common Stock Number of shares issued Amount Capital in excess of par value Retained earnings ESOT Treasury stock Accumulated Other Comprehensive Loss Total shareholders’ equity Balance at December 31, 2014 2,614,506 $ 523 $ 14,068 $ 9,176 $ (964 ) $ (1,909 ) $ (14 ) $ 20,880 Net income - - - 4,136 - - - 4,136 Purchase of treasury shares - - - - - (114 ) - (114 ) Cash dividend - - - (375 ) - - - (375 ) Stock based compensation, net of tax benefit - - 12 - - 236 - 248 Balance at September 30, 2015 2,614,506 $ 523 $ 14,080 $ 12,937 $ (964 ) $ (1,787 ) $ (14 ) $ 24,775 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 September 30, 2015, the Company has purchased shares and there remain shares available to purchase under this program. There were no shares purchased by the Company during the nine month period ended September 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 and 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 nine months ended September 30, 2015 and 2014 is approximately $271,000, respectively, of compensation expense related to the restrictive share awards. On January 1, 2015, 41,250 shares of restricted stock vested of which 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 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 ($000’s omitted except per share data) Net income (loss) $ 744 $ (3,301 ) $ 4,136 $ (2,999 ) Weighted average common shares outstanding (basic) 2,179 2,138 2,179 2,141 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 82 124 82 124 Weighted average common Shares outstanding (diluted) 2,261 2,262 2,261 2,265 Basic Net income (loss) per share $ 0.34 $ (1.54 ) $ 1.90 $ (1.40 ) Diluted Net income (loss) per share $ 0.33 $ (1.46 ) $ 1.83 $ (1.32 )

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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 accrued for $5,597,000 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 September 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 September 30, 2015, the Company had identifiable assets of approximately $ ($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 Nine Months September 30, Nine Months September 30, Nine Months September 30, 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 21,067 $ 18,002 $ 6,055 $ 5,014 $ 27,122 $ 23,016 Cost of goods sold, exclusive of depreciation and amortization (14,917 ) (12,658 ) (5,378 ) (4,755 ) (20,295 ) (17,413 ) Selling, general and administrative (3,367 ) (3,096 ) (1,196 ) (1,085 ) (4,563 ) (4,181 ) Interest expense (30 ) (31 ) (23 ) - (53 ) (31 ) Arbitration award expense (50 ) (5,419 ) - - (50 ) (5,419 ) Depreciation and amortization (364 ) (351 ) (161 ) (139 ) (525 ) (490 ) Insurance proceeds - arbitration 4,500 - - - 4,500 - Other income, net 130 13 1 3 131 16 Income (loss) before income tax provision (benefit) 6,969 (3,540 ) (702 ) (962 ) 6,267 (4,502 ) Income tax provision (benefit) 2,370 (1,183 ) (239 ) (320 ) 2,131 (1,503 ) Net income (loss) $ 4,599 $ (2,357 ) $ (463 ) $ (642 ) $ 4,136 $ (2,999 ) Capital expenditures $ 782 $ 602 $ 613 $ 1,175 $ 1,395 $ 1,777 ATG CPG Consolidated Three Months September 30, Three Months September 30, Three Months September 30, 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 7,513 $ 6,443 $ 2,196 $ 1,588 $ 9,709 $ 8,031 Cost of goods sold, exclusive of depreciation and amortization (5,060 ) (4,471 ) (1,833 ) (1,654 ) (6,893 ) (6,125 ) Selling, general and administrative (1,050 ) (914 ) (436 ) (348 ) (1,486 ) (1,262 ) Interest expense (10 ) (12 ) (8 ) - (18 ) (12 ) Arbitration award expense - (5,419 ) - - - (5,419 ) Depreciation and amortization (124 ) (106 ) (61 ) (44 ) (185 ) (150 ) Other income, net 1 3 - 1 1 4 Income (loss) before income tax provision (benefit) 1,270 (4,476 ) (142 ) (457 ) 1,128 (4,933 ) Income tax provision (benefit) 432 (1,462 ) (48 ) (170 ) 384 (1,632 ) Net income (loss) $ 838 $ (3,014 ) $ (94 ) $ (287 ) $ 744 $ (3,301 ) Capital expenditures $ 407 $ 149 $ 341 $ 751 $ 748 $ 900

Other Income

Other Income	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events None.

Business Description and Summ17

Business Description and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
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 $85,000 at September 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 and $1,254,000 at September 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 September 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 nine months ended September 30, 2015 and 2014. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of September 30, 2015 and December 31, 2014. The 2012 through 2014 federal and state tax returns remain subject to examination.
Supplemental Cash Flow Information	Supplemental Cash Flow Information Income taxes paid during the nine months ended September 30, 2015 amounted to approximately $136,000. Income taxes paid (net of refunds) during the nine months ended September 30, 2014 amounted to approximately $44,000. Interest paid during the nine months ended September 30, 2015 and 2014 amounted to approximately $ , 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 September 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. In August 2015, the FASB issued ASU 2015-15, “Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which adds comments from the Securities and Exchange Commission (SEC) addressing ASU 2015-03, as discussed on the previous page, and debt issuance costs related to line-of-credit arrangements. The SEC commented it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company plans to adopt ASU 2015-15 in connection with its adoption of ASU 2015-03 effective January 1, 2016. The Company does not anticipate the adoption of ASU 2015-15 will have a material impact on the Company's financial condition or results of operations. In July 2015, the FASB issued 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. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the guidance to determine the impact it may have to its consolidated financial statements. 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 standard shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the new guidance to determine the impact it may have to its consolidated financial statements.

Business Description and Summ18

Business Description and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
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)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, December 31, ($000’s omitted) Raw material and common parts, net of reserve $ 6,883 $ 6,680 Work-in-process, net of reserve 3,229 2,280 Finished goods, net of reserve 2,582 3,080 Total inventories $ 12,694 $ 12,040

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	September 30, 2015 December 31, 2014 ($000’s omitted) Land $ 21 $ 21 Buildings 10,326 7,916 Machinery, equipment and tooling 14,664 13,530 Construction in progress 608 2,817 25,619 24,284 Less accumulated depreciation and amortization (15,411 ) (14,909 ) Total property, plant and equipment $ 10,208 $ 9,375

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of long-term debt	September 30, 2015 December 31, 2014 ($000’s omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.60% as of September 30, 2015); monthly principal payments of $21,833 through 2020 with a balloon payment of $786,000 due December 1, 2021 $ 2,424 $ 2,620 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.60% as of September 30, 2015); monthly principal payments of $23,810 through 2021 1,786 2,000 4,210 4,620 Less current portion (548 ) (548 ) $ 3,662 $ 4,072

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of stockholders equity	($000’s omitted except for share data) Common Stock Number of shares issued Amount Capital in excess of par value Retained earnings ESOT Treasury stock Accumulated Other Comprehensive Loss Total shareholders’ equity Balance at December 31, 2014 2,614,506 $ 523 $ 14,068 $ 9,176 $ (964 ) $ (1,909 ) $ (14 ) $ 20,880 Net income - - - 4,136 - - - 4,136 Purchase of treasury shares - - - - - (114 ) - (114 ) Cash dividend - - - (375 ) - - - (375 ) Stock based compensation, net of tax benefit - - 12 - - 236 - 248 Balance at September 30, 2015 2,614,506 $ 523 $ 14,080 $ 12,937 $ (964 ) $ (1,787 ) $ (14 ) $ 24,775
Schedule of earnings per share	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 ($000’s omitted except per share data) Net income (loss) $ 744 $ (3,301 ) $ 4,136 $ (2,999 ) Weighted average common shares outstanding (basic) 2,179 2,138 2,179 2,141 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 82 124 82 124 Weighted average common Shares outstanding (diluted) 2,261 2,262 2,261 2,265 Basic Net income (loss) per share $ 0.34 $ (1.54 ) $ 1.90 $ (1.40 ) Diluted Net income (loss) per share $ 0.33 $ (1.46 ) $ 1.83 $ (1.32 )

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of information regarding operations in business segment	ATG CPG Consolidated Nine Months September 30, Nine Months September 30, Nine Months September 30, 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 21,067 $ 18,002 $ 6,055 $ 5,014 $ 27,122 $ 23,016 Cost of goods sold, exclusive of depreciation and amortization (14,917 ) (12,658 ) (5,378 ) (4,755 ) (20,295 ) (17,413 ) Selling, general and administrative (3,367 ) (3,096 ) (1,196 ) (1,085 ) (4,563 ) (4,181 ) Interest expense (30 ) (31 ) (23 ) - (53 ) (31 ) Arbitration award expense (50 ) (5,419 ) - - (50 ) (5,419 ) Depreciation and amortization (364 ) (351 ) (161 ) (139 ) (525 ) (490 ) Insurance proceeds - arbitration 4,500 - - - 4,500 - Other income, net 130 13 1 3 131 16 Income (loss) before income tax provision (benefit) 6,969 (3,540 ) (702 ) (962 ) 6,267 (4,502 ) Income tax provision (benefit) 2,370 (1,183 ) (239 ) (320 ) 2,131 (1,503 ) Net income (loss) $ 4,599 $ (2,357 ) $ (463 ) $ (642 ) $ 4,136 $ (2,999 ) Capital expenditures $ 782 $ 602 $ 613 $ 1,175 $ 1,395 $ 1,777 ATG CPG Consolidated Three Months September 30, Three Months September 30, Three Months September 30, 2015 2014 2015 2014 2015 2014 Revenues from unaffiliated customers $ 7,513 $ 6,443 $ 2,196 $ 1,588 $ 9,709 $ 8,031 Cost of goods sold, exclusive of depreciation and amortization (5,060 ) (4,471 ) (1,833 ) (1,654 ) (6,893 ) (6,125 ) Selling, general and administrative (1,050 ) (914 ) (436 ) (348 ) (1,486 ) (1,262 ) Interest expense (10 ) (12 ) (8 ) - (18 ) (12 ) Arbitration award expense - (5,419 ) - - - (5,419 ) Depreciation and amortization (124 ) (106 ) (61 ) (44 ) (185 ) (150 ) Other income, net 1 3 - 1 1 4 Income (loss) before income tax provision (benefit) 1,270 (4,476 ) (142 ) (457 ) 1,128 (4,933 ) Income tax provision (benefit) 432 (1,462 ) (48 ) (170 ) 384 (1,632 ) Net income (loss) $ 838 $ (3,014 ) $ (94 ) $ (287 ) $ 744 $ (3,301 ) Capital expenditures $ 407 $ 149 $ 341 $ 751 $ 748 $ 900

Business Description and Summ24

Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details)	9 Months Ended
	Sep. 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 ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 85,000		$ 66,000
Inventory reserve	1,366,000		$ 1,254,000
Income taxes paid	136,000
Income taxes refunded (net of payments)		$ 44,000
Interest paid	$ 60,000	$ 31,000

Business Description and Summ26

Business Description and Summary of Significant Accounting Policies (Detail Textuals 1) - Dividend Declared	1 Months Ended
	May. 29, 2015USD ($)$ / shares
Dividends Payable [Line Items]
Cash dividend declared, amount per share | $ / shares	$ 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	Sep. 30, 2015		Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw material and common parts, net of reserve	$ 6,883		$ 6,680
Work-in-process, net of reserve	3,229		2,280
Finished goods, net of reserve	2,582		3,080
Total inventories	$ 12,694	[1]	$ 12,040
[1]	(Unaudited)

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2015		Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 25,619		$ 24,284
Less accumulated depreciation and amortization	(15,411)		(14,909)
Total property, plant and equipment	10,208	[1]	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	10,326		7,916
Less accumulated depreciation and amortization	(2,907)		(2,811)
Machinery, equipment and tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	14,664		13,530
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 608		$ 2,817
[1]	(Unaudited)

Property, Plant and Equipment29

Property, Plant and Equipment (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ 15,411		$ 15,411		$ 14,909
Depreciation and amortization expense	185	$ 150	525	$ 490
CPG
Property, Plant and Equipment [Line Items]
Construction in progress	431		431		2,529
Construction in progress placed in service	2,800		2,800
ATG
Property, Plant and Equipment [Line Items]
Construction in progress	178		178		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 depreciation	$ 2,907		$ 2,907		$ 2,811

Long-Term Debt - Summary of lon

Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2015		Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 4,210		$ 4,620
Less current portion	(548)	[1]	(548)
Long-term debt, Noncurrent	3,662	[1]	4,072
Term loan payable to a financial institution, principal payments through 2020
Debt Instrument [Line Items]
Long-term debt	2,424		2,620
Term loan payable to a financial institution, principal payments through 2021
Debt Instrument [Line Items]
Long-term debt	$ 1,786		$ 2,000
[1]	(Unaudited)

Long-Term Debt - Summary of l31

Long-Term Debt - Summary of long term debt (Parentheticals) (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
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%
Percentage of fixed interest rate payable	1.60%
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, principal payments through 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Percentage of fixed interest rate payable	1.60%
Frequency of principal payments	monthly
Monthly principal payments	$ 23,810

Long-Term Debt (Detail Textuals

Long-Term Debt (Detail Textuals) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Line of credit	$ 2,000,000	$ 2,000,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of common shareholders' equity (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2015	Sep. 30, 2015
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			$ 14,068
Stock based compensation, net of tax benefit			12
Balance		$ 14,080	14,080
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			9,176
Net income (loss)			4,136
Cash dividend			(375)
Balance		12,937	12,937
ESOT
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			(964)
Balance		(964)	(964)
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			(1,909)
Purchase of treasury shares			(114)
Stock based compensation, net of tax benefit			236
Balance		(1,787)	(1,787)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			(14)
Balance		(14)	(14)
Balance			$ 20,880
Balance (shares)			2,614,506
Net income (loss)		744	$ 4,136
Purchase of treasury shares			(114)
Cash dividend			(375)
Stock based compensation, net of tax benefit			248
Balance	[1]	$ 24,775	$ 24,775
Balance (shares)	[1]	2,614,506	2,614,506
[1]	(Unaudited)

Shareholders' Equity - Calculat

Shareholders' Equity - Calculation of earning per share (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Equity [Abstract]
Net income (loss)	$ 744	$ (3,301)	$ 4,136	$ (2,999)
Weighted average common shares outstanding (basic) (in shares)	2,179	2,138	2,179	2,141
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	2,262	2,261	2,265
Basic
Net income (loss) per share (in dollars per share)	$ 0.34	$ (1.54)	$ 1.90	$ (1.40)
Diluted
Net income (loss) per share (in dollars per share)	$ 0.33	$ (1.46)	$ 1.83	$ (1.32)

Shareholders' Equity (Detail Te

Shareholders' Equity (Detail Textuals) - Share Repurchase Program	9 Months Ended
	Sep. 30, 2015shares
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		9 Months Ended
	Jan. 31, 2015	Apr. 18, 2013	Sep. 30, 2015	Sep. 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			$ 271,000	$ 271,000
Tax benefit credited to capital in excess			$ 23,000

Shareholders' Equity (Detail 37

Shareholders' Equity (Detail Textuals 2) - Dividend Declared	1 Months Ended
	May. 29, 2015USD ($)$ / shares
Dividends Payable [Line Items]
Cash dividend declared, amount per share | $ / shares	$ 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)	9 Months Ended
	Sep. 30, 2015USD ($)ft²		Dec. 31, 2014USD ($)
Loss Contingencies [Line Items]
Final amount of arbitration award paid on March 6, 2015	$ 5,201,000
Accrued arbitration award liability	445,000	[1]	$ 445,000
Received claim for insurance damage	$ 4,500,000
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	3,393,000
Total expenses on settlement of litigation	5,597,000
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, Inc.
Loss Contingencies [Line Items]
Amount of alleged damages	$ 3,000,000
Amount of counter claim	$ 3,191,000
[1]	(Unaudited)

Business Segments - Summary of

Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	$ 9,709	$ 8,031	$ 27,122	$ 23,016
Cost of goods sold, exclusive of depreciation and amortization	(6,893)	(6,125)	(20,295)	(17,413)
Selling, general and administrative	(1,486)	(1,262)	(4,563)	(4,181)
Interest expense	(18)	(12)	(53)	(31)
Arbitration award expense		(5,419)	(50)	(5,419)
Depreciation and amortization	(185)	(150)	(525)	(490)
Insurance proceeds - arbitration			4,500
Other income, net	1	4	131	16
Income (loss) before income tax provision (benefit)	1,128	(4,933)	6,267	(4,502)
Income tax provision (benefit)	384	(1,632)	2,131	(1,503)
Net income	744	(3,301)	4,136	(2,999)
Capital expenditures			1,395	1,777
Operating Segments
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	9,709	8,031	27,122	23,016
Cost of goods sold, exclusive of depreciation and amortization	(6,893)	(6,125)	(20,295)	(17,413)
Selling, general and administrative	(1,486)	(1,262)	(4,563)	(4,181)
Interest expense	$ (18)	(12)	(53)	(31)
Arbitration award expense		(5,419)	(50)	(5,419)
Depreciation and amortization	$ (185)	(150)	(525)	$ (490)
Insurance proceeds - arbitration			4,500
Other income, net	1	4	131	$ 16
Income (loss) before income tax provision (benefit)	1,128	(4,933)	6,267	(4,502)
Income tax provision (benefit)	384	(1,632)	2,131	(1,503)
Net income	744	(3,301)	4,136	(2,999)
Capital expenditures	748	900	1,395	1,777
Operating Segments | ATG
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	7,513	6,443	21,067	18,002
Cost of goods sold, exclusive of depreciation and amortization	(5,060)	(4,471)	(14,917)	(12,658)
Selling, general and administrative	(1,050)	(914)	(3,367)	(3,096)
Interest expense	$ (10)	(12)	(30)	(31)
Arbitration award expense		(5,419)	(50)	(5,419)
Depreciation and amortization	$ (124)	(106)	(364)	$ (351)
Insurance proceeds - arbitration			4,500
Other income, net	1	3	130	$ 13
Income (loss) before income tax provision (benefit)	1,270	(4,476)	6,969	(3,540)
Income tax provision (benefit)	432	(1,462)	2,370	(1,183)
Net income	838	(3,014)	4,599	(2,357)
Capital expenditures	407	149	782	602
Operating Segments | CPG
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	2,196	1,588	6,055	5,014
Cost of goods sold, exclusive of depreciation and amortization	(1,833)	(1,654)	(5,378)	(4,755)
Selling, general and administrative	(436)	$ (348)	(1,196)	$ (1,085)
Interest expense	$ (8)		$ (23)
Arbitration award expense
Depreciation and amortization	$ (61)	$ (44)	$ (161)	$ (139)
Insurance proceeds - arbitration
Other income, net		1	$ 1	$ 3
Income (loss) before income tax provision (benefit)	$ (142)	(457)	(702)	(962)
Income tax provision (benefit)	(48)	(170)	(239)	(320)
Net income	(94)	(287)	(463)	(642)
Capital expenditures	$ 341	$ 751	$ 613	$ 1,175

Business Segments (Detail Textu

Business Segments (Detail Textuals)	9 Months Ended
	Sep. 30, 2015USD ($)Segment		Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Total identifiable assets	$ 34,793,000	[1]	$ 35,245,000
Number of operating segments | Segment	2
Operating Segments | ATG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 22,877,000		23,092,000
Operating Segments | CPG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 11,916,000		$ 12,153,000
[1]	(Unaudited)