Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 20, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TANDY LEATHER FACTORY INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 10,198,733 | ' |
Entity Public Float | ' | ' | $67,273,450 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000909724 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $11,082,679 | $7,705,182 |
Accounts receivable-trade, net of allowance for doubtful accounts of $1,000 and $112,000 in 2013 and 2012, respectively | 762,405 | 822,772 |
Inventory | 26,300,830 | 25,862,784 |
Deferred income taxes | 309,533 | 349,478 |
Prepaid expenses | 1,609,644 | 776,463 |
Other current assets | 478,593 | 153,450 |
Total current assets | 40,543,684 | 35,670,129 |
PROPERTY AND EQUIPMENT, at cost | 20,290,990 | 17,574,895 |
Less accumulated depreciation and amortization | -5,863,280 | -5,630,305 |
14,427,710 | 11,944,590 | |
GOODWILL | 981,985 | 990,725 |
OTHER INTANGIBLES, net of accumulated amortization of $622,000 and $582,000 in 2013 and 2012, respectively | 103,228 | 145,533 |
OTHER assets | 341,959 | 336,695 |
Total Assets | 56,398,566 | 49,087,672 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable-trade | 1,884,637 | 1,612,627 |
Accrued expenses and other liabilities | 5,808,882 | 5,928,798 |
Income taxes payable | 272,198 | 113,705 |
Current maturities of long-term debt | 202,500 | 202,500 |
Total current liabilities | 8,168,217 | 7,857,630 |
DEFERRED INCOME TAXES | 1,212,557 | 806,525 |
LONG-TERM DEBT, net of current maturities | 2,396,250 | 2,902,500 |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, $0.10 par value; 20,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.0024 par value; 25,000,000 shares authorized, 11,192,356 and 11,156,065 shares issued at 2013 and 2012, respectively 10,198,733 and 10,162,442 shares outstanding at 2013 and 2012, respectively | 26,862 | 26,775 |
Paid-in capital | 5,892,907 | 5,767,508 |
Retained earnings | 41,507,592 | 34,241,875 |
Treasury stock at cost (993,623 shares at 2013 and 2012) | -2,894,068 | -2,894,068 |
Accumulated other comprehensive income | 88,249 | 378,927 |
Total stockholders' equity | 44,621,542 | 37,521,017 |
Total Liabilities and Stockholders’ Equity | $56,398,566 | $49,087,672 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable-trade, net allowance for doubtful accounts (in Dollars) | $1,000 | $112,000 |
OTHER INTANGIBLES, net of accumulated amortization (in Dollars) | $622,000 | $582,000 |
Preferred stock par value (in Dollars per share) | $0.10 | $0.10 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 11,192,356 | 11,156,065 |
Common stock, shares outstanding | 10,198,733 | 10,162,442 |
Treasury stock shares | 993,623 | 993,623 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
NET SALES | $78,284,585 | $72,720,624 | $66,102,947 |
COST OF SALES | 28,956,561 | 26,814,950 | 25,765,788 |
Gross Profit | 49,328,024 | 45,905,674 | 40,337,159 |
OPERATING EXPENSES | 38,061,234 | 36,761,669 | 32,630,509 |
INCOME FROM OPERATIONS | 11,266,790 | 9,144,005 | 7,706,650 |
OTHER (INCOME) EXPENSE: | ' | ' | ' |
Interest expense | 206,763 | 240,934 | 248,576 |
Other, net | -160,732 | -42,574 | -83,428 |
Total other expense | 46,031 | 198,360 | 165,148 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 11,220,759 | 8,945,645 | 7,541,502 |
PROVISION FOR INCOME TAXES | 3,955,042 | 3,349,575 | 2,787,533 |
NET INCOME FROM CONTINUING OPERATIONS | 7,265,717 | 5,596,070 | 4,753,969 |
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | ' | ' | -1,368 |
NET INCOME | $7,265,717 | $5,596,070 | $4,752,601 |
NET INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE: | ' | ' | ' |
BASIC (in Dollars per share) | $0.71 | $0.55 | $0.47 |
DILUTED (in Dollars per share) | $0.71 | $0.55 | $0.47 |
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX PER COMMON SHARE: | ' | ' | ' |
BASIC (in Dollars per share) | $0 | $0 | $0 |
DILUTED (in Dollars per share) | $0 | $0 | $0 |
NET INCOME PER COMMON SHARE: | ' | ' | ' |
BASIC (in Dollars per share) | $0.71 | $0.55 | $0.47 |
DILUTED (in Dollars per share) | $0.71 | $0.55 | $0.47 |
Weighted Average Number of Shares Outstanding: | ' | ' | ' |
Basic (in Shares) | 10,176,492 | 10,157,395 | 10,156,442 |
Diluted (in Shares) | 10,216,438 | 10,175,346 | 10,182,098 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
NET INCOME | $7,265,717 | $5,596,070 | $4,752,601 |
Foreign currency translation adjustments | -290,678 | -3,703 | -113,550 |
COMPREHENSIVE INCOME | $6,975,039 | $5,592,367 | $4,639,051 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $7,265,717 | $5,596,070 | $4,752,601 |
Income (loss) from discontinued operations | ' | ' | -1,368 |
7,265,717 | 5,596,070 | 4,753,969 | |
Adjustments to reconcile net income to net cash provided by operating activities - | ' | ' | ' |
Depreciation and amortization | 1,194,612 | 1,068,226 | 1,016,561 |
Loss on disposal or abandonment of assets | 109,222 | 21,092 | 84,168 |
Non-cash stock-based compensation | 11,686 | 10,000 | 33,156 |
Deferred income taxes | 445,977 | -120,531 | 256,544 |
Other | -261,908 | -15,227 | -106,345 |
Net changes in assets and liabilities, net of effect of business acquisitions: | ' | ' | ' |
Accounts receivable-trade | 60,367 | 505,807 | -74,940 |
Inventory | -438,046 | -5,922,533 | 295,777 |
Prepaid expenses | -833,181 | -36,728 | 243,181 |
Other current assets | -325,143 | 55,274 | -135,439 |
Accounts payable-trade | 272,010 | -10,070 | 374,876 |
Accrued expenses and other liabilities | -119,916 | 1,287,607 | -252,045 |
Income taxes | 158,493 | -525,192 | 84,216 |
Total adjustments | 274,173 | -3,682,275 | 1,819,710 |
Net cash provided by continuing operating activities | 7,539,890 | 1,913,795 | 6,573,679 |
Cash used in discontinued operating activities | ' | ' | -1,067 |
Net cash provided by operating activities | 7,539,890 | 1,913,795 | 6,572,612 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of property and equipment | -3,770,022 | -2,686,221 | -1,100,523 |
Purchases of certificates of deposit | ' | ' | -87,893 |
Proceeds from maturities of certificates of deposit | ' | 423,893 | 1,285,593 |
Proceeds from sale of assets | 5,343 | 1,230 | 26,263 |
Decrease (increase) in other assets | -5,264 | 4,545 | -21,707 |
Net cash provided by (used in) investing activities | -3,769,943 | -2,256,553 | 101,733 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Payments on notes payable and long-term debt | -506,250 | -202,500 | -202,500 |
Payment of cash dividend | ' | -2,536,131 | ' |
Proceeds from issuance of common stock | 113,800 | 20,980 | ' |
Net cash used in financing activities | -392,450 | -2,717,651 | -202,500 |
NET INCREASE (DECREASE) IN CASH | 3,377,497 | -3,060,409 | 6,471,845 |
CASH, beginning of period | 7,705,182 | 10,765,591 | 4,293,746 |
CASH, end of period | 11,082,679 | 7,705,182 | 10,765,591 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' | ' |
Interest paid during the period | 206,763 | 240,934 | 248,576 |
Income tax paid during the period, net of (refunds) | $3,348,676 | $4,004,510 | $2,437,701 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2010 | $26,760 | $5,703,387 | ($2,894,068) | $26,429,335 | $496,180 | $29,761,594 |
Balance (shares) (in Shares) at Dec. 31, 2010 | 10,156,442 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 33,156 | ' | ' | ' | 33,156 |
Net income | ' | ' | ' | 4,752,601 | ' | 4,752,601 |
Translation adjustment | ' | ' | ' | ' | -113,550 | -113,550 |
Balance at Dec. 31, 2011 | 26,760 | 5,736,543 | -2,894,068 | 31,181,936 | 382,630 | 34,433,801 |
Balance (shares) (in Shares) at Dec. 31, 2011 | 10,156,442 | ' | ' | ' | ' | ' |
Shares issued - stock options exercised | 15 | 20,965 | ' | ' | ' | 20,980 |
Shares issued - stock options exercised (shares) (in Shares) | 6,000 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 10,000 | ' | ' | ' | 10,000 |
Net income | ' | ' | ' | 5,596,070 | ' | 5,596,070 |
Cash dividend paid | ' | ' | ' | -2,536,131 | ' | -2,536,131 |
Translation adjustment | ' | ' | ' | ' | -3,703 | -3,703 |
Balance at Dec. 31, 2012 | 26,775 | 5,767,508 | -2,894,068 | 34,241,875 | 378,927 | 37,521,017 |
Balance (shares) (in Shares) at Dec. 31, 2012 | 10,162,442 | ' | ' | ' | ' | 11,156,065 |
Shares issued - stock options exercised | 87 | 113,713 | ' | ' | ' | 113,800 |
Shares issued - stock options exercised (shares) (in Shares) | 36,291 | ' | ' | ' | ' | ' |
Stock-based compensation | ' | 11,686 | ' | ' | ' | 11,686 |
Net income | ' | ' | ' | 7,265,717 | ' | 7,265,717 |
Translation adjustment | ' | ' | ' | ' | -290,678 | -290,678 |
Balance at Dec. 31, 2013 | $26,862 | $5,892,907 | ($2,894,068) | $41,507,592 | $88,249 | $44,621,542 |
Balance (shares) (in Shares) at Dec. 31, 2013 | 10,198,733 | ' | ' | ' | ' | 11,192,356 |
Note_1_Description_of_Business
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
1. DESCRIPTION OF BUSINESS | |
Our primary line of business is the sale of leather, leather crafts and related supplies. We sell our products via company-owned stores throughout the United States, Canada, the United Kingdom, Australia and Spain. Numerous customers including retailers, wholesalers, assemblers, distributors and other manufacturers are geographically disbursed throughout the world. We also have light manufacturing facilities in Texas. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
2. SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
● | Management estimates and reporting | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us 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 financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Assets and liabilities with reported amounts based on significant estimates include trade accounts receivable, inventory (slow-moving), and deferred income taxes. | |||||||||||||||||
● | Principles of consolidation | ||||||||||||||||
Our consolidated financial statements include the accounts of Tandy Leather Factory, Inc. and its wholly owned subsidiaries, The Leather Factory, L.P. (a Texas limited partnership) and its corporate partners, Tandy Leather Company, L.P. (a Texas limited partnership) and its corporate partners, Mid-Continent Leather Sales, Inc. (an Oklahoma corporation), Roberts, Cushman & Company, Inc. (a Texas corporation), The Leather Factory of Canada, Ltd. (a Canadian corporation), Tandy Leather Factory UK Limited (a UK corporation), Tandy Leather Factory Australia Pty. Limited (an Australian corporation), and Tandy Leather Factory España, S.L. (a Spanish corporation). All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
● | Foreign currency translation | ||||||||||||||||
Foreign currency translation adjustments arise from activities of our foreign subsidiaries. Results of operations are translated into U.S. dollars using the average exchange rates during the period, while assets and liabilities are translated using period-end exchange rates. Foreign currency translation adjustments of assets and liabilities are recorded in stockholders’ equity. Gains and losses resulting from foreign currency transactions reported in the statements of income under the caption “Other (Income) Expense”, net, for all periods presented. We recognized foreign currency transaction gains of $41,000 and $26,000 in 2013 and 2012, respectively, and a foreign currency transaction loss of $200 in 2011. | |||||||||||||||||
● | Revenue recognition | ||||||||||||||||
Our sales generally occur via two methods: (1) at the store counter, and (2) shipment by common carrier. Sales at the counter are recorded and title passes as transactions occur. Otherwise, sales are recorded and title passes when the merchandise is shipped to the customer. Shipping terms are normally FOB shipping point. Sales tax and comparable foreign tax is excluded from revenue. | |||||||||||||||||
We offer an unconditional satisfaction guarantee to all customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. | |||||||||||||||||
● | Discounts | ||||||||||||||||
We maintain four price levels on a consistent basis: retail, wholesale, business, and distributor. Gross sales are reported after deduction of discounts. We do not pay slotting fees or make other payments to resellers. Several customers require us to participate in their cooperative advertising programs. These programs are a negotiated percentage of their purchases and are accounted for as a reduction of sales. | |||||||||||||||||
● | Expense categories | ||||||||||||||||
Cost of goods sold includes inbound freight and duty charges from vendors to our central warehouse, freight and handling charges to move merchandise from our central warehouse to our stores, and manufacturing overhead, as appropriate. | |||||||||||||||||
Operating expenses include all selling, general and administrative costs including wages and related employee expenses (payroll taxes, health benefits, savings plans, etc.), advertising, outbound freight charges (to ship merchandise to customers), rent, and utilities. | |||||||||||||||||
● | Property and equipment, net of accumulated depreciation and amortization | ||||||||||||||||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are five to ten years for equipment and machinery, seven to fifteen years for furniture and fixtures, five years for vehicles, and forty years for buildings and related improvements. Leasehold improvements are amortized over the lesser of the life of the lease or the useful life of the asset. Repairs and maintenance costs are expensed as incurred. | |||||||||||||||||
● | Inventory | ||||||||||||||||
Inventory is valued at the lower of first-in, first-out cost or market. In addition, the value of inventory is periodically reduced to net realizable value for slow-moving or obsolete inventory based on management's review of items on hand compared to their estimated future demand. | |||||||||||||||||
● | Impairment of long-lived assets | ||||||||||||||||
Potential impairments of long-lived assets are reviewed annually or when events and circumstances warrant an earlier review. Impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset’s carrying value. | |||||||||||||||||
● | Earnings per share | ||||||||||||||||
Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes, to the extent inclusion of such shares would be dilutive to earnings per share, the effect of outstanding options and warrants, computed using the treasury stock method. | |||||||||||||||||
BASIC | 2013 | 2012 | 2011 | ||||||||||||||
Net income | $ | 7,265,717 | $ | 5,596,070 | $ | 4,752,601 | |||||||||||
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 | ||||||||||||||
Earnings per share – basic | $ | 0.71 | $ | 0.55 | $ | 0.47 | |||||||||||
DILUTED | |||||||||||||||||
Net income | $ | 7,265,717 | $ | 5,596,070 | $ | 4,752,601 | |||||||||||
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 | ||||||||||||||
Effect of assumed exercise of stock options and warrants | 39,946 | 17,951 | 25,656 | ||||||||||||||
Weighted average common shares outstanding, assuming dilution | 10,216,438 | 10,175,346 | 10,182,098 | ||||||||||||||
Earnings per share - diluted | $ | 0.71 | $ | 0.55 | $ | 0.47 | |||||||||||
Outstanding options and warrants excluded as anti-dilutive | - | - | 25,000 | ||||||||||||||
For additional disclosures regarding the employee stock options and the warrants, see Note 11. The net effect of converting stock options and warrants to purchase 84,600, 125,600, and 90,600 shares of common stock at option prices less than the average market prices has been included in the computations of diluted EPS for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
● | Goodwill and other intangibles | ||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. Goodwill is not amortized, but is evaluated at least annually for impairment. We completed our annual goodwill impairment analysis as of December 31 in each of the three years ended December 31, 2013, and determined that no adjustment to the carrying value of goodwill was required. | |||||||||||||||||
A summary of changes in our goodwill for the years ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||
Balance, December 31, 2011 | $ | 603,603 | $ | 383,406 | $ | 987,009 | |||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||
Foreign exchange gain/loss | 3,716 | - | 3,716 | ||||||||||||||
Impairments | - | - | - | ||||||||||||||
Balance, December 31, 2012 | $ | 607,319 | $ | 383,406 | $ | 990,725 | |||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||
Foreign exchange gain/loss | (8,740 | ) | - | (8,740 | ) | ||||||||||||
Impairments | - | - | - | ||||||||||||||
Balance, December 31, 2013 | $ | 598,579 | $ | 383,406 | $ | 981,985 | |||||||||||
As of December 31, 2013 and 2012, our intangible assets and related accumulated amortization consisted of the following: | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | |||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 487,891 | $ | 56,478 | |||||||||||
Non-Compete Agreements | 181,216 | 134,466 | 46,750 | ||||||||||||||
$ | 725,585 | $ | 622,357 | $ | 103,228 | ||||||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated Amortization | Net | |||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 456,836 | $ | 87,533 | |||||||||||
Non-Compete Agreements | 183,216 | 125,216 | 58,000 | ||||||||||||||
$ | 727,585 | $ | 582,052 | $ | 145,533 | ||||||||||||
Excluding goodwill, we have no intangible assets not subject to amortization under U.S. GAAP. Amortization of intangible assets of $42,305 in 2013, $41,759 in 2012, and $44,933 in 2011 was recorded in operating expenses. The weighted average amortization period is 15 years for trademarks and copyrights. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding 5 years is as follows: | |||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||
2014 | $ | 505 | $ | 45,004 | $ | 45,509 | |||||||||||
2015 | - | 40,302 | 40,302 | ||||||||||||||
2016 | - | 5,667 | 5,667 | ||||||||||||||
2017 | - | 1000 | 1,000 | ||||||||||||||
2018 | - | 750 | 750 | ||||||||||||||
● | Fair value of financial Instruments | ||||||||||||||||
We measure fair value as an exit price, which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering such assumptions, accounting standards establish a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||
Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2 – include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||||||||
Level 3 – unobservable inputs which are supported by little or no market activity. | |||||||||||||||||
Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
Our principal financial instruments held consist of certificates of deposit, accounts receivable, accounts payable, notes payable and long-term debt. The carrying value of accounts receivable and accounts payable approximate their fair value due to the relatively short-term nature of the accounts. The terms of the long-term debt are considered reasonable for this type of financing; therefore, the carrying amount approximates fair value. | |||||||||||||||||
● | Income taxes | ||||||||||||||||
We account for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable is accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our assets and liabilities. | |||||||||||||||||
Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. | |||||||||||||||||
A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax position must meet a more-likely-than-not recognition threshold to be recognized. | |||||||||||||||||
We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which new information becomes available. | |||||||||||||||||
We may be subject to periodic audits by the Internal Revenue Service and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to the various jurisdictions. | |||||||||||||||||
● | Stock-based compensation | ||||||||||||||||
We have one stock option plan which permits annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant. Under this plan, 12,000 options were awarded to directors in each of the years 2013, 2012 and 2011. These options vest and become exercisable six months from the option grant date. We had two other stock option plans from 1995 which provided for stock option grants to officers, key employees and non-employee directors. These plans expired in 2005. The expiration of the plans has no effect on the options previously granted. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock on the date the option was granted and no option has a term in excess of ten years. We recognized share based compensation expense of $11,686, $10,000, and $33,000 for the years ended December 31, 2013, 2012 and 2011, respectively, as a component of operating expenses. | |||||||||||||||||
The stock option activity under our stock option plans was as follows: | |||||||||||||||||
Weighted | # | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||||||
Average | of | (in years) | Intrinsic | ||||||||||||||
Exercise | shares | Value | |||||||||||||||
Price | |||||||||||||||||
Outstanding, January 1, 2011 | $ | 4.35 | 103,600 | ||||||||||||||
Granted | 4.8 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Outstanding, December 31, 2011 | $ | 4.4 | 115,600 | 5.15 | $ | 206,332 | |||||||||||
Exercisable, December 31, 2011 | $ | 4.4 | 115,600 | 5.15 | $ | 206,332 | |||||||||||
Outstanding, January 1, 2012 | $ | 4.4 | 115,600 | ||||||||||||||
Granted | 5.27 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 3.5 | (6,000 | ) | ||||||||||||||
Outstanding, December 31, 2012 | $ | 4.53 | 121,600 | 4.83 | $ | 206,760 | |||||||||||
Exercisable, December 31, 2012 | $ | 4.53 | 121,600 | 4.83 | $ | 206,760 | |||||||||||
Outstanding, January 1, 2013 | $ | 4.53 | 121,600 | ||||||||||||||
Granted | 6.87 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.23 | (49,000 | ) | ||||||||||||||
Outstanding, December 31, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Exercisable, December 31, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Other information pertaining to option activity during the twelve month periods ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ | 0.97 | $ | 0.83 | $ | 1.19 | |||||||||||
Total fair value of stock options vested | $ | 11,686 | $ | 10,000 | $ | 14,257 | |||||||||||
Total intrinsic value of stock options exercised | $ | 113,790 | $ | 9,572 | N/A | ||||||||||||
As of December 31, 2013, there was no unrecognized compensation cost related to non-vested stock options. | |||||||||||||||||
Cash received from the exercise of stock options for the years ended December 31, 2013 and 2012 was $113,800 and $20,980, respectively. No stock options were exercised in 2011. | |||||||||||||||||
The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model (BSM) with the following weighted-average assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Volatility | 19.1 | % | 21.4 | % | 33.8 | % | |||||||||||
Expected option life | 3 | 3 | 3 | ||||||||||||||
Interest rate (risk free) | 0.8 | % | 0.875 | % | 1.5 | % | |||||||||||
Dividends | None | None | None | ||||||||||||||
The assumptions are evaluated and revised, as necessary, to reflect market conditions and our experience. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations. | |||||||||||||||||
We also have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years. No awards were made as of December 31, 2013. | |||||||||||||||||
● | Comprehensive income | ||||||||||||||||
Comprehensive income includes net income and certain other items that are recorded directly to Stockholders’ Equity. The Company’s only source of other comprehensive income is foreign currency translation adjustments. | |||||||||||||||||
● | Shipping and handling costs | ||||||||||||||||
All shipping and handling costs incurred by us are included in operating expenses on the statements of income. These costs totaled approximately $1,978,000, $1,767,000, and $1,725,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
● | Advertising | ||||||||||||||||
With the exception of catalog costs, advertising costs are expensed as incurred. Catalog costs are capitalized and expensed over the estimated useful life of the particular catalog in question, which is typically twelve to eighteen months. Such capitalized costs are included in other current assets and totaled $168,000 and $181,000 at December 31, 2013 and 2012, respectively. Total advertising expense was $4,099,000 in 2013; $3,543,000 in 2012; and $2,972,000 in 2011. | |||||||||||||||||
● | Cash flows presentation | ||||||||||||||||
For purposes of the statement of cash flows, we consider all highly liquid investments with initial maturities of three months or less from the date of purchase to be cash equivalents. |
Note_3_ShortTerm_Investments
Note 3 - Short-Term Investments | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | ' |
3. SHORT-TERM INVESTMENTS | |
All current fixed maturity securities are classified as “available for sale” and are reported at carrying value, which approximates fair value based on the discounted value of contractual cash flows. We have determined that our investment securities are available to support current operations and, accordingly, have classified such securities as current assets without regard to contractual maturities. We held no short-term investments as of December 31, 2013 and 2012. Investments at December 31, 2011 consisted of certificates of deposit. |
Note_4_Valuation_and_Qualifyin
Note 4 - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ' | ||||||||||||||||||||||||
4. VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||||||
● | Allowance for uncollectible accounts | ||||||||||||||||||||||||
We maintain allowances for bad debts based on factors such as the composition of accounts receivable, the age of the accounts, historical bad debt experience, and our evaluation of the financial condition and past collection history of each customer. Accounts are written off as they are deemed uncollectible based on a periodic review of accounts. Our allowance for doubtful accounts was $1,000 and $112,000 at December 31, 2013 and 2012, respectively. The following is a roll forward of the allowance for doubtful accounts: | |||||||||||||||||||||||||
Year ended: | Balance at beginning of year | Reserve "purchased" during year | Additions (reductions) | Foreign exchange gain/loss | Write-offs | Balance at end of year | |||||||||||||||||||
charged to costs and expenses | |||||||||||||||||||||||||
31-Dec-13 | $ | 111,996 | - | $ | (106,504 | ) | $ | (727 | ) | $ | (3,594 | ) | $ | 1,171 | |||||||||||
31-Dec-12 | 80,926 | - | 77,143 | 242 | (46,315 | ) | 111,996 | ||||||||||||||||||
31-Dec-11 | 146,929 | - | (45,315 | ) | 156 | (20,844 | ) | 80,926 | |||||||||||||||||
● | Sales returns and defective merchandise | ||||||||||||||||||||||||
Product returns are generally recorded directly against sales as those returns occur. Historically, the amount of returns is immaterial and as a result, no reserve is recorded in the financial statements. | |||||||||||||||||||||||||
● | Slow-moving and obsolete inventory | ||||||||||||||||||||||||
The majority of inventory items maintained by us have no restrictive shelf life. We review all inventory items annually to determine what items should be eliminated from the product line. Items are selected for several reasons: (1) the item is slow-moving; (2) the supplier is unable to provide an acceptable quality or quantity; or (3) to maintain a freshness in the product line. Reductions in inventory for slow-moving and obsolete inventory are recorded directly against inventory. |
Note_5_Balance_Sheet_Component
Note 5 - Balance Sheet Components | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | ||||||||
5. BALANCE SHEET COMPONENTS | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
INVENTORY | |||||||||
On hand: | |||||||||
Finished goods held for sale | $ | 24,546,771 | $ | 24,039,846 | |||||
Raw materials and work in process | 853,200 | 495,182 | |||||||
Inventory in transit | 900,859 | 1,327,756 | |||||||
TOTAL | $ | 26,300,830 | $ | 25,862,784 | |||||
PROPERTY AND EQUIPMENT | |||||||||
Building | $ | 9,232,066 | $ | 6,412,861 | |||||
Land | 1,451,132 | 1,451,132 | |||||||
Leasehold improvements | 527,637 | 652,641 | |||||||
Equipment and machinery | 4,321,509 | 4,124,553 | |||||||
Furniture and fixtures | 4,597,366 | 3,034,128 | |||||||
Vehicles | 161,280 | 77,396 | |||||||
Construction in progress | - | 1,822,184 | |||||||
20,290,990 | 17,574,895 | ||||||||
Less: accumulated depreciation | (5,863,280 | ) | (5,630,305 | ) | |||||
TOTAL | $ | 14,427,710 | $ | 11,944,590 | |||||
PREPAID EXPENSES | |||||||||
Prepaid insurance | $ | 479,220 | $ | 51,113 | |||||
Prepaid postage | 89,702 | 67,650 | |||||||
Prepaid advertising | 309,908 | 296,687 | |||||||
Prepaid rent | 93,866 | 46,825 | |||||||
Prepaid supplies/equipment | 145,223 | 67,098 | |||||||
Prepaid licenses/dues | 120,476 | 48,855 | |||||||
Prepaid IT services | 315,099 | 103,609 | |||||||
Prepaid other | 56,150 | 94,626 | |||||||
TOTAL | $ | 1,609,644 | $ | 776,463 | |||||
OTHER CURRENT ASSETS | |||||||||
Accounts receivable - employees | $ | 80,556 | $ | 47,533 | |||||
Accounts receivable - other | 257,932 | 22,244 | |||||||
Payments for merchandise not received | 140,105 | 83,673 | |||||||
TOTAL | $ | 478,593 | $ | 153,450 | |||||
OTHER ASSETS | |||||||||
Security deposits - utilities, locations, etc. | $ | 89,959 | $ | 84,695 | |||||
Leather art collection | 252,000 | 252,000 | |||||||
TOTAL | $ | 341,959 | $ | 336,695 | |||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||||
Accrued bonuses | $ | 2,741,003 | $ | 2,238,057 | |||||
Accrued payroll | 702,456 | 629,636 | |||||||
Deferred revenue | 864,104 | 826,467 | |||||||
Sales and payroll taxes payable | 423,340 | 295,482 | |||||||
Inventory in transit | 321,608 | 1,327,756 | |||||||
Other | 756,371 | 611,400 | |||||||
TOTAL | $ | 5,808,882 | $ | 5,928,798 | |||||
Depreciation expense was $1,152,307, $1,026,467, and $971,628 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
The 2011 loss from abandonment and/or disposal of obsolete equipment totaled $84,168. The loss is included in Operating expenses, $13,884 of which is reported in our Retail Leathercraft segment and $70,284 of which is reported in our Wholesale Leathercraft segment. | |||||||||
The 2012 loss from abandonment and/or disposal of obsolete equipment totaled $21,092. The loss is included in Operating expenses, $13,536 of which is reported in our Retail Leathercraft segment, $6,232 of which is reported in our Wholesale Leathercraft segment, and $1,324 of which is reported in our International Leathercraft segment. | |||||||||
The 2013 loss from abandonment and/or disposal of obsolete equipment totaled $109,222. The loss is included in Operating expenses, $32,348 of which is reported in our Retail Leathercraft segment, and $76,874 of which is reported in our Wholesale Leathercraft segment. |
Note_6_Notes_Payable_And_LongT
Note 6 - Notes Payable And Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
6. NOTES PAYABLE AND LONG-TERM DEBT | |||||||||
On July 31, 2007, we entered into a Credit Agreement and Line of Credit Note with JPMorgan Chase Bank, N.A., pursuant to which the bank agreed to provide us with a credit facility of up to $5,500,000 to facilitate our purchase of real estate consisting of a 191,000 square foot building situated on 30 acres of land located in Fort Worth, Texas. Under the terms of the Line of Credit Note, we could borrow from time to time until April 30, 2008, up to the lesser of $5,500,000 or 90% of the cost of the property and make monthly interest payments. On April 30, 2008, the principal balance was rolled into a 10-year term note with an interest rate of 7.10% per annum. | |||||||||
Proceeds in the amount of $4,050,000 were used to fund the purchase of the property from Standard Motor Products, Inc. under an Agreement of Purchase and Sale, dated June 25, 2007, which closed on July 31, 2007. No further borrowings were drawn. | |||||||||
At December 31, 2013 and 2012, the amount outstanding under the above agreement consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Credit Agreement with JPMorgan Chase Bank – collateralized by real estate; payable as follows: | |||||||||
Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018 | $ | 2,598,750 | $ | 3,105,000 | |||||
2,598,750 | 3,105,000 | ||||||||
Less - Current maturities | (202,500 | ) | (202,500 | ) | |||||
$ | 2,396,250 | $ | 2,902,500 | ||||||
The terms of the credit facility contain various covenants which among other things require us to maintain a debt service coverage ratio of not less than 1.2 to 1.0. We were in compliance with these covenants as of December 31, 2013. | |||||||||
Scheduled maturities of the Company’s notes payable and long-term debt are as follows: | |||||||||
2014 | $ | 202,500 | |||||||
2015 | 202,500 | ||||||||
2016 | 202,500 | ||||||||
2017 | 202,500 | ||||||||
2018 | 1,788,750 | ||||||||
$ | 2,598,750 | ||||||||
On July 12, 2012, we executed a Line of Credit Note with JPMorgan Chase Bank, N.A., pursuant to which the bank agreed to provide us with a revolving credit facility of up to $4,000,000. The revolver bears interest at LIBOR plus 2.0% (2.2442% at December 31, 2013) and was to mature on June 30, 2013. On June 25, 2013, we executed a Note Modification Agreement which extends the maturity date of the Line of Credit Note to June 30, 2014. All other terms remain unchanged. Interest is paid monthly. This note was obtained for working capital purposes and is secured by the real estate and improvements located at 1900 Southeast Loop 820, Fort Worth, Texas. No amounts were outstanding under the agreement at December 31, 2013. |
Note_7_Employee_Benefit_And_Sa
Note 7 - Employee Benefit And Savings Plans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||||||||
7. EMPLOYEE BENEFIT AND SAVINGS PLANS | |||||||||
We have a 401(k) plan to provide retirement benefits for our employees. As allowed under Section 401(k) of the Internal Revenue Code, the plan provides tax-deferred salary contributions for eligible employees and allows employees to contribute a percentage of their annual compensation to the plan on a pretax basis. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. In 2013 and 2012, we matched 100% of the pretax employee contributions on the first 3% of eligible earnings and 50% of the pretax employee contributions on the next 2% of eligible earnings that are contributed by employees. In 2011, we matched 100% of the pretax employee contributions on the first 3% of the eligible earnings that are contributed by employees. | |||||||||
Year Ended December 31, | Maximum Matching | Total Matching | |||||||
Contribution per Participant* | Contribution | ||||||||
2013 | $ | 10,200 | $ | 301,434 | |||||
2012 | $ | 7,500 | $ | 308,567 | |||||
2011 | $ | 7,350 | $ | 217,539 | |||||
* Due to the annual limit on eligible earnings imposed by the Internal Revenue Code | |||||||||
The plan allows employees who meet the age requirements and reach the plan contribution limits to make a catch-up contribution. The catch-up contributions are not eligible for matching contributions. In addition, the plan provides for discretionary matching contributions as determined by the Board of Directors. There were no discretionary matching contributions made in 2013, 2012 or 2011. | |||||||||
We currently offer no postretirement or postemployment benefits to our employees. |
Note_8_Income_Taxes
Note 8 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
8. INCOME TAXES | |||||||||||||
The provision for income taxes consists of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current provision: | |||||||||||||
Federal | $ | 2,982,023 | $ | 3,054,862 | $ | 2,155,653 | |||||||
State | 527,042 | 415,244 | 375,336 | ||||||||||
3,509,065 | 3,470,106 | 2,530,989 | |||||||||||
Deferred provision (benefit): | |||||||||||||
Federal | 399,032 | (107,843 | ) | 229,540 | |||||||||
State | 46,945 | (12,688 | ) | 27,004 | |||||||||
445,977 | (120,531 | ) | 256,544 | ||||||||||
$ | 3,955,042 | $ | 3,349,575 | $ | 2,787,533 | ||||||||
Income before income taxes is earned in the following tax jurisdictions: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 9,920,099 | $ | 7,941,689 | $ | 6,344,634 | |||||||
United Kingdom | 565,538 | 509,426 | 476,414 | ||||||||||
Canada | 858,532 | 999,609 | 945,041 | ||||||||||
Australia | 69,905 | (210,372 | ) | (131,467 | ) | ||||||||
Spain | (193,315 | ) | (294,707 | ) | (93,120 | ) | |||||||
$ | 11,220,759 | $ | 8,945,645 | $ | 7,541,502 | ||||||||
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Allowance for doubtful accounts | $ | 98 | $ | 39,310 | |||||||||
Capitalized inventory costs | 208,384 | 200,017 | |||||||||||
Warrants and stock-based compensation | 48,591 | 54,042 | |||||||||||
Accrued expenses, reserves, and other | 101,050 | 110,151 | |||||||||||
Total deferred income tax assets | 358,123 | 403,520 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Property and equipment depreciation | 1,074,646 | 689,893 | |||||||||||
Goodwill and other intangible assets amortization | 186,501 | 170,674 | |||||||||||
Total deferred income tax liabilities | 1,261,147 | 860,567 | |||||||||||
Net deferred tax asset (liability) | $ | (903,024 | ) | $ | (457,047 | ) | |||||||
The net deferred tax liability is classified on the balance sheets as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 309,533 | $ | 349,478 | |||||||||
Long-term deferred tax liabilities | (1,212,557 | ) | (806,525 | ) | |||||||||
Net deferred tax asset (liability) | $ | (903,024 | ) | $ | (457,047 | ) | |||||||
The effective tax rate differs from the statutory rate as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory rate – Federal US income tax | 34 | % | 34 | % | 34 | % | |||||||
State and local taxes | 6 | % | 4 | % | 4 | % | |||||||
Non-U.S. income tax at different rates | (1% | ) | 1 | % | 2 | % | |||||||
Domestic production activities deduction | (2% | ) | (1% | ) | (1% | ) | |||||||
Other, net | (2% | ) | (1% | ) | (2% | ) | |||||||
Effective rate | 35 | % | 37 | % | 37 | % | |||||||
We file a consolidated U.S. income tax return as well as state tax returns on a consolidated, combined or stand-alone basis, depending on the jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to the tax year ended December 2011. Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the December 2010 and December 2011 tax years. |
Note_9_Commitments_and_Conting
Note 9 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
9. COMMITMENTS AND CONTINGENCIES | |||||
Operating Leases | |||||
We lease our store locations under five-year lease agreements that expire on dates ranging from March 2014 to May 2020. Rent expense on all operating leases for the years ended December 31, 2013, 2012, and 2011, was $3,312,152, $3,135,773, and $2,750,373, respectively. | |||||
Future minimum lease payments under noncancelable operating leases at December 31, 2013 were as follows: | |||||
Year ending December 31: | |||||
2014 | $ | 3,307,344 | |||
2015 | 2,689,245 | ||||
2016 | 1,982,471 | ||||
2017 | 1,401,911 | ||||
2018 | 677,356 | ||||
2019 | 132,384 | ||||
2020 | 27,667 | ||||
Total minimum lease payments | $ | 10,218,378 | |||
Legal Proceedings | |||||
On March 16, 2011, two former employees of ours filed a lawsuit, entitled Mark Barnes and Jerry Mercante on behalf of themselves and all other similarly situated v. Tandy Leather Company, Inc., Tandy Leather Factory, and Does 1-50, in the US District Court for the District of Nevada. The lawsuit was subsequently transferred to the United State District Court, Northern District of Texas, Fort Worth Division (“Court”), and an amended complaint was filed on May 9, 2011 by plaintiffs to add another former employee, Donna Cavota, as a third named plaintiff. The suit alleged that we violated requirements of the Fair Labor Standards Act (FLSA) as well as various state wage laws. Plaintiffs sought to represent themselves and all similarly situated U.S. current and former store managers of ours. A Settlement Agreement was reached between the parties, and on September 24, 2012, the Court issued an Order Preliminarily Approving the Settlement of all federal and state claims asserted by the plaintiffs in the litigation. We continue to deny any violation of any statute, law, rule or regulation, any liability or wrongdoing, and the truth of plaintiffs’ allegations. We agreed to enter into the Settlement Agreement to avoid further expense and inconvenience, end the disruption and burden of the litigation, avoid any other present or future litigation arising out of the facts that gave rise to the litigation, avoid the risk inherent in uncertain complex litigation, and to put to rest the controversy underlying the litigation. | |||||
The Settlement Agreement preliminarily approved by the Court required us to establish a fund designated as a Qualified Settlement Fund (Escrow Account) in the amount of $993,386 to fund (1) settlement payments to the plaintiffs, (2) settlement payments to the other members of the settlement class who joined the case, (3) plaintiffs’ attorneys’ fees and expenses, and (4) and the claim administrator (Escrow Agent’s) fees and expenses. The foregoing description is not complete and is qualified in its entirety by reference to the full text of the Settlement Agreement which was attached as Exhibit 10.1 to a Current Report on Form 8-K, as filed with the Securities and Exchange Commission on October 1, 2012. | |||||
The deadline established by the Court for any persons employed by us as store managers between November 23, 2008 and September 24, 2012 to join the lawsuit as class members expired on May 24, 2013. On June 28, 2013, the Court issued two orders: (1) an Order Approving Class and Collective Action Settlement and Dismissing Case with Prejudice, and (2) a Final Judgment, Approving Class and Collective Action Settlement and Dismissing Case with Prejudice. Pursuant to the Court’s June 28, 2013 orders, the claims administrator (Escrow Agent) was required to make payments to the plaintiffs and those existing and former store managers who joined the lawsuit by signing and returning Consent to Join Forms, which contained a release of us from the claims asserted in plaintiffs’ lawsuit. | |||||
The settlement payments to the class members and the plaintiffs were made from the Escrow Account pursuant to the formula set forth in the Settlement Agreement by the claims administrator, as well as the payment of the plaintiffs’ attorney’s fees and the fees and expenses of the claims administrator (Escrow Agent). The total payment from the Escrow Account, including our required FICA payments based on the settlement payments, was $744,273 from the total Escrow Account of $993,386. All payments were made by the claims administrator and the balance of the Escrow Account (approximately $249,000) was returned to us in the first quarter of 2014. | |||||
In connection with the settlement, we recorded a charge to operations of $993,386 during the quarter ended September 30, 2012 as this amount, as ordered by the Court, covered the full settlement of all claims of the plaintiffs and the class members, plaintiffs’ attorneys’ fees, and the fees and expenses of the claims administrator (Escrow Agent) in accordance with the terms of the Settlement Agreement. In the quarter ended June 30, 2013, we recorded a benefit of approximately $312,000, which was the expected remaining balance in the Escrow Account after all payments have been made. Payroll taxes associated with the payments to claimants of approximately $63,000 was recorded in the fourth quarter of 2013. | |||||
We are periodically involved in various other litigation that arises in the ordinary course of business and operations. There are no such matters pending that we expect to have a material impact on our financial position and operating results. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. |
Note_10_Significant_Business_C
Note 10 - Significant Business Concentrations And Risk | 12 Months Ended |
Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
10. SIGNIFICANT BUSINESS CONCENTRATIONS AND RISK | |
Major Customers | |
Our revenues are derived from a diverse group of customers primarily involved in the sale of leathercraft. While no single customer accounted for more than 1% of our consolidated revenues in 2013, 2012 or 2011, sales to our five largest customers represented 2.5%, 2.9% and 5.5%, respectively, of consolidated revenues in those years. While we do not believe the loss of one of these customers would have a significant negative impact on our operations, we do believe the loss of several of these customers simultaneously or a substantial reduction in sales generated by them could temporarily affect our operating results. | |
Major Vendors | |
We purchase a significant portion of our inventory through one supplier. Due to the number of alternative sources of supply, loss of this supplier would not have an adverse impact on our operations. | |
Credit Risk | |
Due to the large number of customers comprising our customer base, concentrations of credit risk with respect to customer receivables are limited. At December 31, 2013, 2012, and 2011, 16%, 30% and 34%, respectively, of our consolidated accounts receivable were due from two nationally recognized retail chains. We do not generally require collateral for accounts receivable, but we do perform periodic credit evaluations of our customers and believe the allowance for doubtful accounts is adequate. It is our opinion that if any one or a group of customer receivable balances should be deemed uncollectable, it would not have a material adverse effect on our results of operations or financial condition. | |
We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk on our cash and cash equivalents. |
Note_11_Stockholders_Equity
Note 11 - Stockholders' Equity | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||||||||||||||||
11. STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
a) | Stock Option Plan | |||||||||||||||||||||||||||
In connection with its 2007 Director Non-Qualified Stock Option Plan for non-employee directors, there are outstanding options to purchase our common stock. The plan provides for the granting of non-qualified options at the discretion of the Compensation Committee of the Board of Directors. Options are granted at the fair market value of the underlying common stock at the date of grant and vest after six months. We have reserved 100,000 shares of common stock for issuance under this plan. | ||||||||||||||||||||||||||||
We had two other stock options plans from 1995 which provided stock option grants to officers, key employees, and non-employee directors. These plans expired in 2005. The expiration of the plans had no effect on the options previously granted. | ||||||||||||||||||||||||||||
All options expire ten years from date of grant and are exercisable at any time after vesting. Of the 100,000 shares available for issuance, there are 21,400 un-optioned shares available for future grants. | ||||||||||||||||||||||||||||
A summary of stock option transactions for the years ended December 31, 2013, 2012, and 2011, is as follows: | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||
Option | Exercise | Option | Exercise | Option | Exercise | |||||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | |||||||||||||||||||||||
Outstanding at January 1 | 121,600 | $ | 4.53 | 115,600 | $ | 4.4 | 103,600 | $ | 4.35 | |||||||||||||||||||
Granted | 12,000 | 6.87 | 12,000 | 5.27 | 12,000 | 4.8 | ||||||||||||||||||||||
Forfeited or expired | - | - | - | - | - | - | ||||||||||||||||||||||
Exchanged | - | - | - | - | - | - | ||||||||||||||||||||||
Exercised | (49,000 | ) | 4.23 | (6,000 | ) | 3.5 | - | - | ||||||||||||||||||||
Outstanding at December 31 | 84,600 | $ | 5.04 | 121,600 | $ | 4.53 | 115,600 | $ | 4.4 | |||||||||||||||||||
Exercisable at end of year | 84,600 | $ | 5.04 | 121,600 | $ | 4.53 | 115,600 | $ | 4.4 | |||||||||||||||||||
Weighted-average fair value of options granted during year | $ | 0.97 | $ | 0.83 | $ | 1.19 | ||||||||||||||||||||||
The following table summarizes outstanding options into groups based upon exercise price ranges at December 31, 2013: | ||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
Exercise Price Range | Option | Exercise | Maturity | Option | Exercise | Maturity | ||||||||||||||||||||||
Shares | Price | (Years) | Shares | Price | (Years) | |||||||||||||||||||||||
$2.72 | to | $3.90 | 2,000 | $ | 3.87 | 0.99 | 2,000 | $ | 3.87 | 0.99 | ||||||||||||||||||
$3.91 | to | $5.30 | 82,600 | 5.07 | 7.37 | 82,600 | 5.07 | 7.37 | ||||||||||||||||||||
84,600 | $ | 5.04 | 7.22 | 84600 | $ | 5.04 | 7.22 | |||||||||||||||||||||
We have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years. No awards had been made as of December 31, 2013. | ||||||||||||||||||||||||||||
b) | Cash Dividend | |||||||||||||||||||||||||||
In February 2012, our Board of Directors authorized a $0.25 per share special one-time cash dividend that was paid to stockholders of record at the close of business on March 1, 2012. We released the funds used to pay for the special one-time cash dividend on March 29, 2012 and the dividend, totaling $2.5 million, was paid to stockholders on April 2, 2012. | ||||||||||||||||||||||||||||
Our Board will determine future cash dividends after giving consideration to our then existing levels of profit and cash flow, capital requirements, current and forecasted liquidity, as well as financial and other business conditions existing at the time. | ||||||||||||||||||||||||||||
c) | Stockholder Rights Plan | |||||||||||||||||||||||||||
On June 6, 2013, our Board of Directors authorized and declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of our common stock, par value $0.0024 per share, to stockholders of record at the close of business on June 16, 2013. Each Right entitles the registered holder to purchase from us one one-thousandth of a newly created series of preferred stock at an exercise price of $30.00 per right. The Rights are exercisable in the event any person or group acquires 20% or more of our outstanding common stock, or commences a tender offer or exchange offer that would results in such person becoming an Acquiring Person. An exception is included in the Rights Plan in order to ensure that certain owners are not by virtue of their share ownership automatically deemed to be an Acquiring Person upon adoption of the plan unless any such owner subsequently accrues additional shares of our common stock and after giving effect to such acquisition owns 20% or more of our outstanding common stock. The Rights will expire at 5:00 P.M. Eastern on June 6, 2016, unless such date is advanced or extended or unless the Rights are earlier redeemed or exchanged by our Board. |
Note_12_Discontinued_Operation
Note 12 - Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||
12. DISCONTINUED OPERATIONS | |||||||||||||
Our subsidiary, Roberts, Cushman and Company, Inc., is classified as discontinued operations. The distributor of custom hat trims ceased doing business in the fourth quarter of 2009 as a result of decreased sales. All prior periods presented have been adjusted to reflect this presentation. Sales, earnings before income tax, and provision for income taxes of the discontinued operation for each year were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales | - | - | - | ||||||||||
Earnings before income taxes | - | - | - | ||||||||||
Current provision (benefit): | |||||||||||||
Federal | - | - | $ | (1,394 | ) | ||||||||
State | - | - | 26 | ||||||||||
- | - | (1,368 | ) | ||||||||||
Deferred provision (benefit): | |||||||||||||
Federal | - | - | - | ||||||||||
State | - | - | - | ||||||||||
- | - | - | |||||||||||
- | - | $ | (1,368 | ) | |||||||||
There were no assets and liabilities of discontinued operations in our consolidated balance sheet as of December 31, 2013 and 2012. |
Note_13_Segment_Information
Note 13 - Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
13. SEGMENT INFORMATION | |||||||||||||||||
We identify our segments based on the activities of three distinct operations: | |||||||||||||||||
a. | Wholesale Leathercraft, which consists of a chain of wholesale stores operating under the name, The Leather Factory, located in North America; | ||||||||||||||||
b. | Retail Leathercraft, which consists of a chain of retail stores operating under the name, Tandy Leather Company, located in North America; | ||||||||||||||||
c. | International Leathercraft, which sells to both wholesale and retail customers. We have one store located in Northampton, United Kingdom which opened in February 2008, one store located in Sydney, Australia which opened in October 2011, and one store located in Jerez, Spain which opened in January 2012. These stores carry the same products as our North American stores. | ||||||||||||||||
Our reportable operating segments have been determined as separately identifiable business units and we measure segment earnings as operating earnings, defined as income before interest and income taxes. | |||||||||||||||||
Wholesale Leathercraft | Retail Leathercraft | International | Total | ||||||||||||||
Leathercraft | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Net Sales | $ | 27,384,614 | $ | 46,995,902 | $ | 3,904,069 | $ | 78,284,585 | |||||||||
Gross Profit | 18,425,268 | 28,430,800 | 2,471,956 | 49,328,024 | |||||||||||||
Operating earnings | 4,840,416 | 6,026,731 | 399,643 | 11,266,790 | |||||||||||||
Interest expense | 206,763 | - | - | 206,763 | |||||||||||||
Other expenses, net | (118,218 | ) | (29 | ) | (42,485 | ) | (160,732 | ) | |||||||||
Income before income taxes | 4,751,871 | 6,026,760 | 442,128 | 11,220,759 | |||||||||||||
Depreciation and amortization | 866,264 | 271,536 | 56,812 | 1,194,612 | |||||||||||||
Fixed asset additions | 1,946,980 | 1,778,727 | 44,315 | 3,770,022 | |||||||||||||
Total assets | $ | 40,981,591 | $ | 12,206,584 | $ | 3,210,391 | $ | 56,398,566 | |||||||||
For the year ended December 31, 2012 | |||||||||||||||||
Net Sales | $ | 26,850,002 | $ | 42,616,546 | $ | 3,254,076 | $ | 72,720,624 | |||||||||
Gross Profit | 18,063,191 | 25,833,852 | 2,008,631 | 45,905,674 | |||||||||||||
Operating earnings | 3,730,678 | 5,436,745 | (23,418 | ) | 9,144,005 | ||||||||||||
Interest expense | 240,934 | - | - | 240,934 | |||||||||||||
Other expenses, net | (14,798 | ) | (13 | ) | (27,763 | ) | (42,574 | ) | |||||||||
Income before income taxes | 3,504,542 | 5,436,758 | 4,345 | 8,945,645 | |||||||||||||
Depreciation and amortization | 820,622 | 193,394 | 54,210 | 1,068,226 | |||||||||||||
Fixed asset additions | 2,111,569 | 496,846 | 77,806 | 2,686,221 | |||||||||||||
Total assets | $ | 36,535,099 | $ | 10,037,416 | $ | 2,515,157 | $ | 49,087,672 | |||||||||
For the year ended December 31, 2011 | |||||||||||||||||
Net Sales | $ | 26,540,899 | $ | 37,435,832 | $ | 2,126,216 | $ | 66,102,947 | |||||||||
Gross Profit | 16,268,075 | 22,645,847 | 1,423,237 | 40,337,159 | |||||||||||||
Operating earnings | 2,803,034 | 4,656,067 | 247,549 | 7,706,650 | |||||||||||||
Interest expense | 248,576 | - | - | 248,576 | |||||||||||||
Other expenses, net | (79,149 | ) | - | (4,279 | ) | (83,428 | ) | ||||||||||
Income before income taxes | 2,633,607 | 4,656,067 | 251,828 | 7,541,502 | |||||||||||||
Depreciation and amortization | 841,058 | 158,804 | 16,699 | 1,016,561 | |||||||||||||
Fixed asset additions | 535,713 | 350,570 | 214,240 | 1,100,523 | |||||||||||||
Total assets | $ | 35,966,965 | $ | 7,185,016 | $ | 2,350,934 | $ | 45,502,915 | |||||||||
Net sales by geographic areas were as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
United States | $ | 65,371,652 | $ | 61,041,650 | $ | 56,337,737 | |||||||||||
Canada | 8,004,320 | 7,496,840 | 6,714,100 | ||||||||||||||
All other countries | 4,908,613 | 4,182,134 | 3,051,110 | ||||||||||||||
$ | 78,284,585 | $ | 72,720,624 | $ | 66,102,947 | ||||||||||||
Geographic sales information is based on the location of the customer. Except for Canada, we had no sales to any single foreign country that was material to our consolidated net sales for the years ended December 31, 2013, 2012 and 2011. We do not have any significant long-lived assets outside of the United States. |
Note_14_Recent_Accounting_Pron
Note 14 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Table Text Block [Abstract] | ' |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | ' |
14. RECENT ACCOUNTING PRONOUNCEMENTS | |
In June 2011, FASB issued ASU 2011-05, “Comprehensive Income (Topic 220) – Presentation of Comprehensive Income” (ASU 2011-05). This standard update requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of stockholders’ equity. ASU 2011-05 was effective for the interim and annual periods beginning after December 15, 2011. The adoption of the standard did not have a significant impact on our consolidated financial statements as it only required a change in the format of presentation. | |
In September 2011, FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350) – Testing Goodwill for Impairment”. ASU 2011-08 provides companies with a new option to determine whether or not it is necessary to apply the traditional two-step quantitative goodwill impairment test in ASC 350, Intangibles – Goodwill and Other. Under ASU 2011-08 companies are no longer required to calculate the fair value of a reporting unit unless it determines, on the basis of qualitative information, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. ASU 2011-08 was effective for periods ending after December 15, 2011; however, early adoption is permitted for periods ending after September 15, 2011. The adoption of the standard did not have a material impact on our consolidated financial statements. | |
In February 2013, FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. The objective of ASU 2013-02 is to improve reporting by requiring entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in the statement of operations. The amendments in ASU 2013-02 were required to be applied retrospectively and were effective for reporting periods beginning after December 15, 2012. The adoption of the standard did not have any impact on our consolidated financial statements. |
Note_15_Quarterly_Financial_Da
Note 15 - Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
15. QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net sales | $ | 19,237,827 | $ | 18,973,013 | $ | 18,524,604 | $ | 21,549,141 | |||||||||
Gross profit | 11,930,829 | 11,920,121 | 11,700,943 | 13,776,131 | |||||||||||||
Net income from continuing operations | 1,586,321 | 1,629,353 | 1,561,832 | 2,488,211 | |||||||||||||
Net income | 1,586,321 | 1,629,353 | 1,561,832 | 2,488,211 | |||||||||||||
Net income from continuing operations per common share: | |||||||||||||||||
Basic | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Diluted | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Diluted | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 10,162,442 | 10,167,649 | 10,176,744 | 10,198,733 | |||||||||||||
Diluted | 10,194,219 | 10,216,535 | 10,221,512 | 10,233,009 | |||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2012 | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net sales | $ | 18,177,078 | $ | 16,904,254 | $ | 17,000,728 | $ | 20,638,564 | |||||||||
Gross profit | 11,365,633 | 10,940,201 | 10,404,770 | 13,195,070 | |||||||||||||
Net income from continuing operations | 1,574,105 | 1,539,639 | 280,770 | 2,201,556 | |||||||||||||
Net income | 1,574,105 | 1,539,639 | 280,770 | 2,201,556 | |||||||||||||
Net income from continuing operations per common share: | |||||||||||||||||
Basic | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Diluted | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Net income per common share: | |||||||||||||||||
Basic | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Diluted | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 10,156,442 | 10,156,442 | 10,156,442 | 10,159,877 | |||||||||||||
Diluted | 10,172,950 | 10,172,171 | 10,177,466 | 10,178,759 | |||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||||||||||
Management estimates and reporting | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us 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 financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Assets and liabilities with reported amounts based on significant estimates include trade accounts receivable, inventory (slow-moving), and deferred income taxes. | |||||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||||||||
Principles of consolidation | |||||||||||||||||
Our consolidated financial statements include the accounts of Tandy Leather Factory, Inc. and its wholly owned subsidiaries, The Leather Factory, L.P. (a Texas limited partnership) and its corporate partners, Tandy Leather Company, L.P. (a Texas limited partnership) and its corporate partners, Mid-Continent Leather Sales, Inc. (an Oklahoma corporation), Roberts, Cushman & Company, Inc. (a Texas corporation), The Leather Factory of Canada, Ltd. (a Canadian corporation), Tandy Leather Factory UK Limited (a UK corporation), Tandy Leather Factory Australia Pty. Limited (an Australian corporation), and Tandy Leather Factory España, S.L. (a Spanish corporation). All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||||||||||
Foreign currency translation | |||||||||||||||||
Foreign currency translation adjustments arise from activities of our foreign subsidiaries. Results of operations are translated into U.S. dollars using the average exchange rates during the period, while assets and liabilities are translated using period-end exchange rates. Foreign currency translation adjustments of assets and liabilities are recorded in stockholders’ equity. Gains and losses resulting from foreign currency transactions reported in the statements of income under the caption “Other (Income) Expense”, net, for all periods presented. We recognized foreign currency transaction gains of $41,000 and $26,000 in 2013 and 2012, respectively, and a foreign currency transaction loss of $200 in 2011. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||
Revenue recognition | |||||||||||||||||
Our sales generally occur via two methods: (1) at the store counter, and (2) shipment by common carrier. Sales at the counter are recorded and title passes as transactions occur. Otherwise, sales are recorded and title passes when the merchandise is shipped to the customer. Shipping terms are normally FOB shipping point. Sales tax and comparable foreign tax is excluded from revenue. | |||||||||||||||||
We offer an unconditional satisfaction guarantee to all customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. | |||||||||||||||||
Revenue Recognition, Discounts [Policy Text Block] | ' | ||||||||||||||||
Discounts | |||||||||||||||||
We maintain four price levels on a consistent basis: retail, wholesale, business, and distributor. Gross sales are reported after deduction of discounts. We do not pay slotting fees or make other payments to resellers. Several customers require us to participate in their cooperative advertising programs. These programs are a negotiated percentage of their purchases and are accounted for as a reduction of sales. | |||||||||||||||||
Selling, General and Administrative Expenses, Policy [Policy Text Block] | ' | ||||||||||||||||
Expense categories | |||||||||||||||||
Cost of goods sold includes inbound freight and duty charges from vendors to our central warehouse, freight and handling charges to move merchandise from our central warehouse to our stores, and manufacturing overhead, as appropriate. | |||||||||||||||||
Operating expenses include all selling, general and administrative costs including wages and related employee expenses (payroll taxes, health benefits, savings plans, etc.), advertising, outbound freight charges (to ship merchandise to customers), rent, and utilities | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
Property and equipment, net of accumulated depreciation and amortization | |||||||||||||||||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are five to ten years for equipment and machinery, seven to fifteen years for furniture and fixtures, five years for vehicles, and forty years for buildings and related improvements. Leasehold improvements are amortized over the lesser of the life of the lease or the useful life of the asset. Repairs and maintenance costs are expensed as incurred | |||||||||||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||||||||||
Inventory | |||||||||||||||||
Inventory is valued at the lower of first-in, first-out cost or market. In addition, the value of inventory is periodically reduced to net realizable value for slow-moving or obsolete inventory based on management's review of items on hand compared to their estimated future demand. | |||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||
Potential impairments of long-lived assets are reviewed annually or when events and circumstances warrant an earlier review. Impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset’s carrying value | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
Earnings per share | |||||||||||||||||
Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes, to the extent inclusion of such shares would be dilutive to earnings per share, the effect of outstanding options and warrants, computed using the treasury stock method. | |||||||||||||||||
BASIC | 2013 | 2012 | 2011 | ||||||||||||||
Net income | $ | 7,265,717 | $ | 5,596,070 | $ | 4,752,601 | |||||||||||
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 | ||||||||||||||
Earnings per share – basic | $ | 0.71 | $ | 0.55 | $ | 0.47 | |||||||||||
DILUTED | |||||||||||||||||
Net income | $ | 7,265,717 | $ | 5,596,070 | $ | 4,752,601 | |||||||||||
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 | ||||||||||||||
Effect of assumed exercise of stock options and warrants | 39,946 | 17,951 | 25,656 | ||||||||||||||
Weighted average common shares outstanding, assuming dilution | 10,216,438 | 10,175,346 | 10,182,098 | ||||||||||||||
Earnings per share - diluted | $ | 0.71 | $ | 0.55 | $ | 0.47 | |||||||||||
Outstanding options and warrants excluded as anti-dilutive | - | - | 25,000 | ||||||||||||||
For additional disclosures regarding the employee stock options and the warrants, see Note 11. The net effect of converting stock options and warrants to purchase 84,600, 125,600, and 90,600 shares of common stock at option prices less than the average market prices has been included in the computations of diluted EPS for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||||||||||||||
Goodwill and other intangibles | |||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. Goodwill is not amortized, but is evaluated at least annually for impairment. We completed our annual goodwill impairment analysis as of December 31 in each of the three years ended December 31, 2013, and determined that no adjustment to the carrying value of goodwill was required. | |||||||||||||||||
A summary of changes in our goodwill for the years ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||
Balance, December 31, 2011 | $ | 603,603 | $ | 383,406 | $ | 987,009 | |||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||
Foreign exchange gain/loss | 3,716 | - | 3,716 | ||||||||||||||
Impairments | - | - | - | ||||||||||||||
Balance, December 31, 2012 | $ | 607,319 | $ | 383,406 | $ | 990,725 | |||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||
Foreign exchange gain/loss | (8,740 | ) | - | (8,740 | ) | ||||||||||||
Impairments | - | - | - | ||||||||||||||
Balance, December 31, 2013 | $ | 598,579 | $ | 383,406 | $ | 981,985 | |||||||||||
As of December 31, 2013 and 2012, our intangible assets and related accumulated amortization consisted of the following: | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | |||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 487,891 | $ | 56,478 | |||||||||||
Non-Compete Agreements | 181,216 | 134,466 | 46,750 | ||||||||||||||
$ | 725,585 | $ | 622,357 | $ | 103,228 | ||||||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated Amortization | Net | |||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 456,836 | $ | 87,533 | |||||||||||
Non-Compete Agreements | 183,216 | 125,216 | 58,000 | ||||||||||||||
$ | 727,585 | $ | 582,052 | $ | 145,533 | ||||||||||||
Excluding goodwill, we have no intangible assets not subject to amortization under U.S. GAAP. Amortization of intangible assets of $42,305 in 2013, $41,759 in 2012, and $44,933 in 2011 was recorded in operating expenses. The weighted average amortization period is 15 years for trademarks and copyrights. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding 5 years is as follows: | |||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||
2014 | $ | 505 | $ | 45,004 | $ | 45,509 | |||||||||||
2015 | - | 40,302 | 40,302 | ||||||||||||||
2016 | - | 5,667 | 5,667 | ||||||||||||||
2017 | - | 1000 | 1,000 | ||||||||||||||
2018 | - | 750 | 750 | ||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair value of financial Instruments | |||||||||||||||||
We measure fair value as an exit price, which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering such assumptions, accounting standards establish a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||
Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2 – include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||||||||
Level 3 – unobservable inputs which are supported by little or no market activity. | |||||||||||||||||
Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
Our principal financial instruments held consist of certificates of deposit, accounts receivable, accounts payable, notes payable and long-term debt. The carrying value of accounts receivable and accounts payable approximate their fair value due to the relatively short-term nature of the accounts. The terms of the long-term debt are considered reasonable for this type of financing; therefore, the carrying amount approximates fair value | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||
Income taxes | |||||||||||||||||
We account for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable is accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our assets and liabilities. | |||||||||||||||||
Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. | |||||||||||||||||
A tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax position must meet a more-likely-than-not recognition threshold to be recognized. | |||||||||||||||||
We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense and the effective tax rate in the period in which new information becomes available. | |||||||||||||||||
We may be subject to periodic audits by the Internal Revenue Service and other taxing authorities. These audits may challenge certain of our tax positions, such as the timing and amount of deductions and allocation of taxable income to the various jurisdictions. | |||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||||||
Stock-based compensation | |||||||||||||||||
We have one stock option plan which permits annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant. Under this plan, 12,000 options were awarded to directors in each of the years 2013, 2012 and 2011. These options vest and become exercisable six months from the option grant date. We had two other stock option plans from 1995 which provided for stock option grants to officers, key employees and non-employee directors. These plans expired in 2005. The expiration of the plans has no effect on the options previously granted. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock on the date the option was granted and no option has a term in excess of ten years. We recognized share based compensation expense of $11,686, $10,000, and $33,000 for the years ended December 31, 2013, 2012 and 2011, respectively, as a component of operating expenses. | |||||||||||||||||
The stock option activity under our stock option plans was as follows: | |||||||||||||||||
Weighted | # | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||||||
Average | of | (in years) | Intrinsic | ||||||||||||||
Exercise | shares | Value | |||||||||||||||
Price | |||||||||||||||||
Outstanding, January 1, 2011 | $ | 4.35 | 103,600 | ||||||||||||||
Granted | 4.8 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Outstanding, December 31, 2011 | $ | 4.4 | 115,600 | 5.15 | $ | 206,332 | |||||||||||
Exercisable, December 31, 2011 | $ | 4.4 | 115,600 | 5.15 | $ | 206,332 | |||||||||||
Outstanding, January 1, 2012 | $ | 4.4 | 115,600 | ||||||||||||||
Granted | 5.27 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 3.5 | (6,000 | ) | ||||||||||||||
Outstanding, December 31, 2012 | $ | 4.53 | 121,600 | 4.83 | $ | 206,760 | |||||||||||
Exercisable, December 31, 2012 | $ | 4.53 | 121,600 | 4.83 | $ | 206,760 | |||||||||||
Outstanding, January 1, 2013 | $ | 4.53 | 121,600 | ||||||||||||||
Granted | 6.87 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.23 | (49,000 | ) | ||||||||||||||
Outstanding, December 31, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Exercisable, December 31, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Other information pertaining to option activity during the twelve month periods ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ | 0.97 | $ | 0.83 | $ | 1.19 | |||||||||||
Total fair value of stock options vested | $ | 11,686 | $ | 10,000 | $ | 14,257 | |||||||||||
Total intrinsic value of stock options exercised | $ | 113,790 | $ | 9,572 | N/A | ||||||||||||
As of December 31, 2013, there was no unrecognized compensation cost related to non-vested stock options. | |||||||||||||||||
Cash received from the exercise of stock options for the years ended December 31, 2013 and 2012 was $113,800 and $20,980, respectively. No stock options were exercised in 2011. | |||||||||||||||||
The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model (BSM) with the following weighted-average assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Volatility | 19.1 | % | 21.4 | % | 33.8 | % | |||||||||||
Expected option life | 3 | 3 | 3 | ||||||||||||||
Interest rate (risk free) | 0.8 | % | 0.875 | % | 1.5 | % | |||||||||||
Dividends | None | None | None | ||||||||||||||
The assumptions are evaluated and revised, as necessary, to reflect market conditions and our experience. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations. | |||||||||||||||||
We also have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years. No awards were made as of December 31, 2013. | |||||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||||||||||
Comprehensive income | |||||||||||||||||
Comprehensive income includes net income and certain other items that are recorded directly to Stockholders’ Equity. The Company’s only source of other comprehensive income is foreign currency translation adjustments | |||||||||||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | ||||||||||||||||
Shipping and handling costs | |||||||||||||||||
All shipping and handling costs incurred by us are included in operating expenses on the statements of income. These costs totaled approximately $1,978,000, $1,767,000, and $1,725,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Advertising Costs, Policy, Capitalized Direct Response Advertising [Policy Text Block] | ' | ||||||||||||||||
Advertising | |||||||||||||||||
With the exception of catalog costs, advertising costs are expensed as incurred. Catalog costs are capitalized and expensed over the estimated useful life of the particular catalog in question, which is typically twelve to eighteen months. Such capitalized costs are included in other current assets and totaled $168,000 and $181,000 at December 31, 2013 and 2012, respectively. Total advertising expense was $4,099,000 in 2013; $3,543,000 in 2012; and $2,972,000 in 2011. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
Cash flows presentation | |||||||||||||||||
For purposes of the statement of cash flows, we consider all highly liquid investments with initial maturities of three months or less from the date of purchase to be cash equivalents. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
BASIC | 2013 | 2012 | 2011 | ||||||||||||||
Net income | $ | 7,265,717 | $ | 5,596,070 | $ | 4,752,601 | |||||||||||
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 | ||||||||||||||
Earnings per share – basic | $ | 0.71 | $ | 0.55 | $ | 0.47 | |||||||||||
DILUTED | |||||||||||||||||
Net income | $ | 7,265,717 | $ | 5,596,070 | $ | 4,752,601 | |||||||||||
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 | ||||||||||||||
Effect of assumed exercise of stock options and warrants | 39,946 | 17,951 | 25,656 | ||||||||||||||
Weighted average common shares outstanding, assuming dilution | 10,216,438 | 10,175,346 | 10,182,098 | ||||||||||||||
Earnings per share - diluted | $ | 0.71 | $ | 0.55 | $ | 0.47 | |||||||||||
Outstanding options and warrants excluded as anti-dilutive | - | - | 25,000 | ||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||
Balance, December 31, 2011 | $ | 603,603 | $ | 383,406 | $ | 987,009 | |||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||
Foreign exchange gain/loss | 3,716 | - | 3,716 | ||||||||||||||
Impairments | - | - | - | ||||||||||||||
Balance, December 31, 2012 | $ | 607,319 | $ | 383,406 | $ | 990,725 | |||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||
Foreign exchange gain/loss | (8,740 | ) | - | (8,740 | ) | ||||||||||||
Impairments | - | - | - | ||||||||||||||
Balance, December 31, 2013 | $ | 598,579 | $ | 383,406 | $ | 981,985 | |||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated Amortization | Net | |||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 487,891 | $ | 56,478 | |||||||||||
Non-Compete Agreements | 181,216 | 134,466 | 46,750 | ||||||||||||||
$ | 725,585 | $ | 622,357 | $ | 103,228 | ||||||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated Amortization | Net | |||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 456,836 | $ | 87,533 | |||||||||||
Non-Compete Agreements | 183,216 | 125,216 | 58,000 | ||||||||||||||
$ | 727,585 | $ | 582,052 | $ | 145,533 | ||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||
2014 | $ | 505 | $ | 45,004 | $ | 45,509 | |||||||||||
2015 | - | 40,302 | 40,302 | ||||||||||||||
2016 | - | 5,667 | 5,667 | ||||||||||||||
2017 | - | 1000 | 1,000 | ||||||||||||||
2018 | - | 750 | 750 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Weighted | # | Weighted Average Remaining Contractual Term | Aggregate | ||||||||||||||
Average | of | (in years) | Intrinsic | ||||||||||||||
Exercise | shares | Value | |||||||||||||||
Price | |||||||||||||||||
Outstanding, January 1, 2011 | $ | 4.35 | 103,600 | ||||||||||||||
Granted | 4.8 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Outstanding, December 31, 2011 | $ | 4.4 | 115,600 | 5.15 | $ | 206,332 | |||||||||||
Exercisable, December 31, 2011 | $ | 4.4 | 115,600 | 5.15 | $ | 206,332 | |||||||||||
Outstanding, January 1, 2012 | $ | 4.4 | 115,600 | ||||||||||||||
Granted | 5.27 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 3.5 | (6,000 | ) | ||||||||||||||
Outstanding, December 31, 2012 | $ | 4.53 | 121,600 | 4.83 | $ | 206,760 | |||||||||||
Exercisable, December 31, 2012 | $ | 4.53 | 121,600 | 4.83 | $ | 206,760 | |||||||||||
Outstanding, January 1, 2013 | $ | 4.53 | 121,600 | ||||||||||||||
Granted | 6.87 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.23 | (49,000 | ) | ||||||||||||||
Outstanding, December 31, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Exercisable, December 31, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Other Activity and Valuation [Table Text Block] | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ | 0.97 | $ | 0.83 | $ | 1.19 | |||||||||||
Total fair value of stock options vested | $ | 11,686 | $ | 10,000 | $ | 14,257 | |||||||||||
Total intrinsic value of stock options exercised | $ | 113,790 | $ | 9,572 | N/A | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Volatility | 19.1 | % | 21.4 | % | 33.8 | % | |||||||||||
Expected option life | 3 | 3 | 3 | ||||||||||||||
Interest rate (risk free) | 0.8 | % | 0.875 | % | 1.5 | % | |||||||||||
Dividends | None | None | None |
Note_4_Valuation_and_Qualifyin1
Note 4 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||||||||||||||||||
Year ended: | Balance at beginning of year | Reserve "purchased" during year | Additions (reductions) | Foreign exchange gain/loss | Write-offs | Balance at end of year | |||||||||||||||||||
charged to costs and expenses | |||||||||||||||||||||||||
31-Dec-13 | $ | 111,996 | - | $ | (106,504 | ) | $ | (727 | ) | $ | (3,594 | ) | $ | 1,171 | |||||||||||
31-Dec-12 | 80,926 | - | 77,143 | 242 | (46,315 | ) | 111,996 | ||||||||||||||||||
31-Dec-11 | 146,929 | - | (45,315 | ) | 156 | (20,844 | ) | 80,926 |
Note_5_Balance_Sheet_Component1
Note 5 - Balance Sheet Components (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
INVENTORY | |||||||||
On hand: | |||||||||
Finished goods held for sale | $ | 24,546,771 | $ | 24,039,846 | |||||
Raw materials and work in process | 853,200 | 495,182 | |||||||
Inventory in transit | 900,859 | 1,327,756 | |||||||
TOTAL | $ | 26,300,830 | $ | 25,862,784 | |||||
PROPERTY AND EQUIPMENT | |||||||||
Building | $ | 9,232,066 | $ | 6,412,861 | |||||
Land | 1,451,132 | 1,451,132 | |||||||
Leasehold improvements | 527,637 | 652,641 | |||||||
Equipment and machinery | 4,321,509 | 4,124,553 | |||||||
Furniture and fixtures | 4,597,366 | 3,034,128 | |||||||
Vehicles | 161,280 | 77,396 | |||||||
Construction in progress | - | 1,822,184 | |||||||
20,290,990 | 17,574,895 | ||||||||
Less: accumulated depreciation | (5,863,280 | ) | (5,630,305 | ) | |||||
TOTAL | $ | 14,427,710 | $ | 11,944,590 | |||||
PREPAID EXPENSES | |||||||||
Prepaid insurance | $ | 479,220 | $ | 51,113 | |||||
Prepaid postage | 89,702 | 67,650 | |||||||
Prepaid advertising | 309,908 | 296,687 | |||||||
Prepaid rent | 93,866 | 46,825 | |||||||
Prepaid supplies/equipment | 145,223 | 67,098 | |||||||
Prepaid licenses/dues | 120,476 | 48,855 | |||||||
Prepaid IT services | 315,099 | 103,609 | |||||||
Prepaid other | 56,150 | 94,626 | |||||||
TOTAL | $ | 1,609,644 | $ | 776,463 | |||||
OTHER CURRENT ASSETS | |||||||||
Accounts receivable - employees | $ | 80,556 | $ | 47,533 | |||||
Accounts receivable - other | 257,932 | 22,244 | |||||||
Payments for merchandise not received | 140,105 | 83,673 | |||||||
TOTAL | $ | 478,593 | $ | 153,450 | |||||
OTHER ASSETS | |||||||||
Security deposits - utilities, locations, etc. | $ | 89,959 | $ | 84,695 | |||||
Leather art collection | 252,000 | 252,000 | |||||||
TOTAL | $ | 341,959 | $ | 336,695 | |||||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||||
Accrued bonuses | $ | 2,741,003 | $ | 2,238,057 | |||||
Accrued payroll | 702,456 | 629,636 | |||||||
Deferred revenue | 864,104 | 826,467 | |||||||
Sales and payroll taxes payable | 423,340 | 295,482 | |||||||
Inventory in transit | 321,608 | 1,327,756 | |||||||
Other | 756,371 | 611,400 | |||||||
TOTAL | $ | 5,808,882 | $ | 5,928,798 |
Note_6_Notes_Payable_And_LongT1
Note 6 - Notes Payable And Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Credit Agreement with JPMorgan Chase Bank – collateralized by real estate; payable as follows: | |||||||||
Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018 | $ | 2,598,750 | $ | 3,105,000 | |||||
2,598,750 | 3,105,000 | ||||||||
Less - Current maturities | (202,500 | ) | (202,500 | ) | |||||
$ | 2,396,250 | $ | 2,902,500 | ||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||
2014 | $ | 202,500 | |||||||
2015 | 202,500 | ||||||||
2016 | 202,500 | ||||||||
2017 | 202,500 | ||||||||
2018 | 1,788,750 | ||||||||
$ | 2,598,750 |
Note_7_Employee_Benefit_And_Sa1
Note 7 - Employee Benefit And Savings Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ' | ||||||||
Year Ended December 31, | Maximum Matching | Total Matching | |||||||
Contribution per Participant* | Contribution | ||||||||
2013 | $ | 10,200 | $ | 301,434 | |||||
2012 | $ | 7,500 | $ | 308,567 | |||||
2011 | $ | 7,350 | $ | 217,539 |
Note_8_Income_Taxes_Tables
Note 8 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current provision: | |||||||||||||
Federal | $ | 2,982,023 | $ | 3,054,862 | $ | 2,155,653 | |||||||
State | 527,042 | 415,244 | 375,336 | ||||||||||
3,509,065 | 3,470,106 | 2,530,989 | |||||||||||
Deferred provision (benefit): | |||||||||||||
Federal | 399,032 | (107,843 | ) | 229,540 | |||||||||
State | 46,945 | (12,688 | ) | 27,004 | |||||||||
445,977 | (120,531 | ) | 256,544 | ||||||||||
$ | 3,955,042 | $ | 3,349,575 | $ | 2,787,533 | ||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 9,920,099 | $ | 7,941,689 | $ | 6,344,634 | |||||||
United Kingdom | 565,538 | 509,426 | 476,414 | ||||||||||
Canada | 858,532 | 999,609 | 945,041 | ||||||||||
Australia | 69,905 | (210,372 | ) | (131,467 | ) | ||||||||
Spain | (193,315 | ) | (294,707 | ) | (93,120 | ) | |||||||
$ | 11,220,759 | $ | 8,945,645 | $ | 7,541,502 | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Allowance for doubtful accounts | $ | 98 | $ | 39,310 | |||||||||
Capitalized inventory costs | 208,384 | 200,017 | |||||||||||
Warrants and stock-based compensation | 48,591 | 54,042 | |||||||||||
Accrued expenses, reserves, and other | 101,050 | 110,151 | |||||||||||
Total deferred income tax assets | 358,123 | 403,520 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Property and equipment depreciation | 1,074,646 | 689,893 | |||||||||||
Goodwill and other intangible assets amortization | 186,501 | 170,674 | |||||||||||
Total deferred income tax liabilities | 1,261,147 | 860,567 | |||||||||||
Net deferred tax asset (liability) | $ | (903,024 | ) | $ | (457,047 | ) | |||||||
Schedule of Net Deferred Tax Liability [Table Text Block] | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 309,533 | $ | 349,478 | |||||||||
Long-term deferred tax liabilities | (1,212,557 | ) | (806,525 | ) | |||||||||
Net deferred tax asset (liability) | $ | (903,024 | ) | $ | (457,047 | ) | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory rate – Federal US income tax | 34 | % | 34 | % | 34 | % | |||||||
State and local taxes | 6 | % | 4 | % | 4 | % | |||||||
Non-U.S. income tax at different rates | (1% | ) | 1 | % | 2 | % | |||||||
Domestic production activities deduction | (2% | ) | (1% | ) | (1% | ) | |||||||
Other, net | (2% | ) | (1% | ) | (2% | ) | |||||||
Effective rate | 35 | % | 37 | % | 37 | % |
Note_9_Commitments_and_Conting1
Note 9 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Year ending December 31: | |||||
2014 | $ | 3,307,344 | |||
2015 | 2,689,245 | ||||
2016 | 1,982,471 | ||||
2017 | 1,401,911 | ||||
2018 | 677,356 | ||||
2019 | 132,384 | ||||
2020 | 27,667 | ||||
Total minimum lease payments | $ | 10,218,378 |
Note_11_Stockholders_Equity_Ta
Note 11 - Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||
Option | Exercise | Option | Exercise | Option | Exercise | |||||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | |||||||||||||||||||||||
Outstanding at January 1 | 121,600 | $ | 4.53 | 115,600 | $ | 4.4 | 103,600 | $ | 4.35 | |||||||||||||||||||
Granted | 12,000 | 6.87 | 12,000 | 5.27 | 12,000 | 4.8 | ||||||||||||||||||||||
Forfeited or expired | - | - | - | - | - | - | ||||||||||||||||||||||
Exchanged | - | - | - | - | - | - | ||||||||||||||||||||||
Exercised | (49,000 | ) | 4.23 | (6,000 | ) | 3.5 | - | - | ||||||||||||||||||||
Outstanding at December 31 | 84,600 | $ | 5.04 | 121,600 | $ | 4.53 | 115,600 | $ | 4.4 | |||||||||||||||||||
Exercisable at end of year | 84,600 | $ | 5.04 | 121,600 | $ | 4.53 | 115,600 | $ | 4.4 | |||||||||||||||||||
Weighted-average fair value of options granted during year | $ | 0.97 | $ | 0.83 | $ | 1.19 | ||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
Exercise Price Range | Option | Exercise | Maturity | Option | Exercise | Maturity | ||||||||||||||||||||||
Shares | Price | (Years) | Shares | Price | (Years) | |||||||||||||||||||||||
$2.72 | to | $3.90 | 2,000 | $ | 3.87 | 0.99 | 2,000 | $ | 3.87 | 0.99 | ||||||||||||||||||
$3.91 | to | $5.30 | 82,600 | 5.07 | 7.37 | 82,600 | 5.07 | 7.37 | ||||||||||||||||||||
84,600 | $ | 5.04 | 7.22 | 84600 | $ | 5.04 | 7.22 |
Note_12_Discontinued_Operation1
Note 12 - Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales | - | - | - | ||||||||||
Earnings before income taxes | - | - | - | ||||||||||
Current provision (benefit): | |||||||||||||
Federal | - | - | $ | (1,394 | ) | ||||||||
State | - | - | 26 | ||||||||||
- | - | (1,368 | ) | ||||||||||
Deferred provision (benefit): | |||||||||||||
Federal | - | - | - | ||||||||||
State | - | - | - | ||||||||||
- | - | - | |||||||||||
- | - | $ | (1,368 | ) |
Note_13_Segment_Information_Ta
Note 13 - Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Wholesale Leathercraft | Retail Leathercraft | International | Total | ||||||||||||||
Leathercraft | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Net Sales | $ | 27,384,614 | $ | 46,995,902 | $ | 3,904,069 | $ | 78,284,585 | |||||||||
Gross Profit | 18,425,268 | 28,430,800 | 2,471,956 | 49,328,024 | |||||||||||||
Operating earnings | 4,840,416 | 6,026,731 | 399,643 | 11,266,790 | |||||||||||||
Interest expense | 206,763 | - | - | 206,763 | |||||||||||||
Other expenses, net | (118,218 | ) | (29 | ) | (42,485 | ) | (160,732 | ) | |||||||||
Income before income taxes | 4,751,871 | 6,026,760 | 442,128 | 11,220,759 | |||||||||||||
Depreciation and amortization | 866,264 | 271,536 | 56,812 | 1,194,612 | |||||||||||||
Fixed asset additions | 1,946,980 | 1,778,727 | 44,315 | 3,770,022 | |||||||||||||
Total assets | $ | 40,981,591 | $ | 12,206,584 | $ | 3,210,391 | $ | 56,398,566 | |||||||||
For the year ended December 31, 2012 | |||||||||||||||||
Net Sales | $ | 26,850,002 | $ | 42,616,546 | $ | 3,254,076 | $ | 72,720,624 | |||||||||
Gross Profit | 18,063,191 | 25,833,852 | 2,008,631 | 45,905,674 | |||||||||||||
Operating earnings | 3,730,678 | 5,436,745 | (23,418 | ) | 9,144,005 | ||||||||||||
Interest expense | 240,934 | - | - | 240,934 | |||||||||||||
Other expenses, net | (14,798 | ) | (13 | ) | (27,763 | ) | (42,574 | ) | |||||||||
Income before income taxes | 3,504,542 | 5,436,758 | 4,345 | 8,945,645 | |||||||||||||
Depreciation and amortization | 820,622 | 193,394 | 54,210 | 1,068,226 | |||||||||||||
Fixed asset additions | 2,111,569 | 496,846 | 77,806 | 2,686,221 | |||||||||||||
Total assets | $ | 36,535,099 | $ | 10,037,416 | $ | 2,515,157 | $ | 49,087,672 | |||||||||
For the year ended December 31, 2011 | |||||||||||||||||
Net Sales | $ | 26,540,899 | $ | 37,435,832 | $ | 2,126,216 | $ | 66,102,947 | |||||||||
Gross Profit | 16,268,075 | 22,645,847 | 1,423,237 | 40,337,159 | |||||||||||||
Operating earnings | 2,803,034 | 4,656,067 | 247,549 | 7,706,650 | |||||||||||||
Interest expense | 248,576 | - | - | 248,576 | |||||||||||||
Other expenses, net | (79,149 | ) | - | (4,279 | ) | (83,428 | ) | ||||||||||
Income before income taxes | 2,633,607 | 4,656,067 | 251,828 | 7,541,502 | |||||||||||||
Depreciation and amortization | 841,058 | 158,804 | 16,699 | 1,016,561 | |||||||||||||
Fixed asset additions | 535,713 | 350,570 | 214,240 | 1,100,523 | |||||||||||||
Total assets | $ | 35,966,965 | $ | 7,185,016 | $ | 2,350,934 | $ | 45,502,915 | |||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
United States | $ | 65,371,652 | $ | 61,041,650 | $ | 56,337,737 | |||||||||||
Canada | 8,004,320 | 7,496,840 | 6,714,100 | ||||||||||||||
All other countries | 4,908,613 | 4,182,134 | 3,051,110 | ||||||||||||||
$ | 78,284,585 | $ | 72,720,624 | $ | 66,102,947 |
Note_15_Quarterly_Financial_Da1
Note 15 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net sales | $ | 19,237,827 | $ | 18,973,013 | $ | 18,524,604 | $ | 21,549,141 | |||||||||
Gross profit | 11,930,829 | 11,920,121 | 11,700,943 | 13,776,131 | |||||||||||||
Net income from continuing operations | 1,586,321 | 1,629,353 | 1,561,832 | 2,488,211 | |||||||||||||
Net income | 1,586,321 | 1,629,353 | 1,561,832 | 2,488,211 | |||||||||||||
Net income from continuing operations per common share: | |||||||||||||||||
Basic | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Diluted | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Diluted | $ | 0.16 | $ | 0.16 | $ | 0.15 | $ | 0.24 | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 10,162,442 | 10,167,649 | 10,176,744 | 10,198,733 | |||||||||||||
Diluted | 10,194,219 | 10,216,535 | 10,221,512 | 10,233,009 | |||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2012 | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net sales | $ | 18,177,078 | $ | 16,904,254 | $ | 17,000,728 | $ | 20,638,564 | |||||||||
Gross profit | 11,365,633 | 10,940,201 | 10,404,770 | 13,195,070 | |||||||||||||
Net income from continuing operations | 1,574,105 | 1,539,639 | 280,770 | 2,201,556 | |||||||||||||
Net income | 1,574,105 | 1,539,639 | 280,770 | 2,201,556 | |||||||||||||
Net income from continuing operations per common share: | |||||||||||||||||
Basic | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Diluted | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Net income per common share: | |||||||||||||||||
Basic | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Diluted | 0.15 | 0.15 | 0.03 | 0.22 | |||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 10,156,442 | 10,156,442 | 10,156,442 | 10,159,877 | |||||||||||||
Diluted | 10,172,950 | 10,172,171 | 10,177,466 | 10,178,759 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Foreign Currency Transaction Gain (Loss), Realized | $41,000 | $26,000 | ($200) |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 84,600 | 125,600 | 90,600 |
Amortization of Intangible Assets | 42,305 | 41,759 | 44,933 |
Finite-Lived Intangible Assets, Amortization Expense, Next Five Years | '5 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 12,000 | 12,000 | 12,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | '7 years 80 days | '4 years 302 days | '5 years 54 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '3 years | '3 years | '3 years |
Allocated Share-based Compensation Expense | 11,686 | 10,000 | 33,000 |
Proceeds from Stock Options Exercised | 113,800 | 20,980 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) | 49,000 | 6,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 0 | ' | ' |
Shipping, Handling and Transportation Costs | 1,978,000 | 1,767,000 | 1,725,000 |
Advertising Expense | 4,099,000 | 3,543,000 | 2,972,000 |
Restricted Stock [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 300,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 0 | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '7 years | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' |
Vehicles [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Building and Building Improvements [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
Other Current Assets [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Capitalized Costs | $168,000 | $181,000 | ' |
Director [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 12,000 | 12,000 | 12,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | '6 months | ' | ' |
Trademarks and Copyrights [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Weighted Average Amortization Period | '15 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '10 years | ' | ' |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies (Details) - Basic and Diluted Earnings Per Share (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Basic and Diluted Earnings Per Share [Abstract] | ' | ' | ' |
Net income (in Dollars) | $7,265,717 | $5,596,070 | $4,752,601 |
Weighted average common shares outstanding | 10,176,492 | 10,157,395 | 10,156,442 |
Earnings per share b basic (in Dollars per share) | $0.71 | $0.55 | $0.47 |
DILUTED | ' | ' | ' |
Effect of assumed exercise of stock options and warrants | 39,946 | 17,951 | 25,656 |
Weighted average common shares outstanding, assuming dilution | 10,216,438 | 10,175,346 | 10,182,098 |
Earnings per share - diluted (in Dollars per share) | $0.71 | $0.55 | $0.47 |
Outstanding options and warrants excluded as anti-dilutive | ' | ' | 25,000 |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies (Details) - Goodwill (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill [Line Items] | ' | ' | ' |
Balance | $981,985 | $990,725 | $987,009 |
Foreign exchange gain/loss | -8,740 | 3,716 | ' |
Leather Factory [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Balance | 598,579 | 607,319 | 603,603 |
Foreign exchange gain/loss | -8,740 | 3,716 | ' |
Tandy Leather [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Balance | $383,406 | $383,406 | $383,406 |
Note_2_Significant_Accounting_5
Note 2 - Significant Accounting Policies (Details) - Intangible Assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible Assets, Gross | $725,585 | $727,585 |
Intangible Assets, Accumulated Amortization | 622,000 | 582,000 |
Intangible Assets, Net | 103,228 | 145,533 |
Trademarks and Copyrights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible Assets, Gross | 544,369 | 544,369 |
Intangible Assets, Accumulated Amortization | 487,891 | 456,836 |
Intangible Assets, Net | 56,478 | 87,533 |
Noncompete Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible Assets, Gross | 181,216 | 183,216 |
Intangible Assets, Accumulated Amortization | 134,466 | 125,216 |
Intangible Assets, Net | $46,750 | $58,000 |
Note_2_Significant_Accounting_6
Note 2 - Significant Accounting Policies (Details) - Estimated Amortization Expense (USD $) | Dec. 31, 2013 |
Note 2 - Significant Accounting Policies (Details) - Estimated Amortization Expense [Line Items] | ' |
2014 | $45,509 |
2015 | 40,302 |
2016 | 5,667 |
2017 | 1,000 |
2018 | 750 |
Leather Factory [Member] | ' |
Note 2 - Significant Accounting Policies (Details) - Estimated Amortization Expense [Line Items] | ' |
2014 | 505 |
Tandy Leather [Member] | ' |
Note 2 - Significant Accounting Policies (Details) - Estimated Amortization Expense [Line Items] | ' |
2014 | 45,004 |
2015 | 40,302 |
2016 | 5,667 |
2017 | 1,000 |
2018 | $750 |
Note_2_Significant_Accounting_7
Note 2 - Significant Accounting Policies (Details) - Summary of Stock Option Activity Under Stock Option Plans (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Summary of Stock Option Activity Under Stock Option Plans [Abstract] | ' | ' | ' | ' |
Weighted Average Exercise Price Outstanding | $5.04 | $4.53 | $4.40 | $4.35 |
Number of Shares Outstanding | 84,600 | 121,600 | 115,600 | 103,600 |
Weighted Average Remaining Contractual Term Outstanding | '7 years 80 days | '4 years 302 days | '5 years 54 days | ' |
Aggregate Intrinsic Value Outstanding | $104,656 | $206,760 | $206,332 | ' |
Weighted Average Exercise Price Exercisable | $5.04 | $4.53 | $4.40 | ' |
Number of Shares Exercisable | 84,600 | 121,600 | 115,600 | ' |
Weighted Average Remaining Contractual Term (in years) Exercisable | '7 years 80 days | '4 years 302 days | '5 years 54 days | ' |
Aggregate Intrinsic Value Exercisable | $104,656 | $206,760 | $206,332 | ' |
Weighted Average Exercise Price Granted | $6.87 | $5.27 | $4.80 | ' |
Number of Shares Granted | 12,000 | 12,000 | 12,000 | ' |
Weighted Average Exercise Price Exercised | $4.23 | $3.50 | ' | ' |
Number of Shares Exercised | -49,000 | -6,000 | 0 | ' |
Note_2_Significant_Accounting_8
Note 2 - Significant Accounting Policies (Details) - Other Information Pertaining to Option Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Other Information Pertaining to Option Activity [Abstract] | ' | ' | ' |
Weighted average grant-date fair value of stock options granted (in Dollars per share) | $0.97 | $0.83 | $1.19 |
Total fair value of stock options vested | $11,686 | $10,000 | $14,257 |
Total intrinsic value of stock options exercised | $113,790 | $9,572 | ' |
Note_2_Significant_Accounting_9
Note 2 - Significant Accounting Policies (Details) - Fair Value of Options | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value of Options [Abstract] | ' | ' | ' |
Volatility | 19.10% | 21.40% | 33.80% |
Expected option life | '3 years | '3 years | '3 years |
Interest rate (risk free) | 0.80% | 0.88% | 1.50% |
Note_3_ShortTerm_Investments_D
Note 3 - Short-Term Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Short-term Investments | $0 | $0 |
Note_4_Valuation_and_Qualifyin2
Note 4 - Valuation and Qualifying Accounts (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable | $1,000 | $112,000 |
Note_4_Valuation_and_Qualifyin3
Note 4 - Valuation and Qualifying Accounts (Details) - Roll Forward of the Allowance for Doubtful Accounts (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Roll Forward of the Allowance for Doubtful Accounts [Abstract] | ' | ' | ' |
Balance at beginning of year | $111,996 | $80,926 | $146,929 |
Additions (reductions) charged to costs and expenses | -106,504 | 77,143 | -45,315 |
Foreign exchange gain/loss | -727 | 242 | 156 |
Write-offs | -3,594 | -46,315 | -20,844 |
Balance at end of year | $1,171 | $111,996 | $80,926 |
Note_5_Balance_Sheet_Component2
Note 5 - Balance Sheet Components (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 5 - Balance Sheet Components (Details) [Line Items] | ' | ' | ' |
Depreciation | $1,152,307 | $1,026,467 | $971,628 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | -109,222 | -21,092 | -84,168 |
Retail Leathercraft [Member] | ' | ' | ' |
Note 5 - Balance Sheet Components (Details) [Line Items] | ' | ' | ' |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | -32,348 | -13,536 | -13,884 |
Wholesale Leathercraft [Member] | ' | ' | ' |
Note 5 - Balance Sheet Components (Details) [Line Items] | ' | ' | ' |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | -76,874 | -6,232 | -70,284 |
International Leathercraft [Member] | ' | ' | ' |
Note 5 - Balance Sheet Components (Details) [Line Items] | ' | ' | ' |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | ' | ($1,324) | ' |
Note_5_Balance_Sheet_Component3
Note 5 - Balance Sheet Components (Details) - Summary of balance sheet components (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
On hand: | ' | ' |
Finished goods held for sale | $24,546,771 | $24,039,846 |
Raw materials and work in process | 853,200 | 495,182 |
Inventory in transit | 900,859 | 1,327,756 |
TOTAL | 26,300,830 | 25,862,784 |
PROPERTY AND EQUIPMENT | ' | ' |
Building | 9,232,066 | 6,412,861 |
Land | 1,451,132 | 1,451,132 |
Leasehold improvements | 527,637 | 652,641 |
Equipment and machinery | 4,321,509 | 4,124,553 |
Furniture and fixtures | 4,597,366 | 3,034,128 |
Construction in progress | ' | 1,822,184 |
20,290,990 | 17,574,895 | |
Less: accumulated depreciation | -5,863,280 | -5,630,305 |
TOTAL | 14,427,710 | 11,944,590 |
PREPAID EXPENSES | ' | ' |
Prepaid insurance | 479,220 | 51,113 |
Prepaid postage | 89,702 | 67,650 |
Prepaid advertising | 309,908 | 296,687 |
Prepaid rent | 93,866 | 46,825 |
Prepaid supplies/equipment | 145,223 | 67,098 |
Prepaid licenses/dues | 120,476 | 48,855 |
Prepaid IT services | 315,099 | 103,609 |
Prepaid other | 56,150 | 94,626 |
TOTAL | 1,609,644 | 776,463 |
OTHER CURRENT ASSETS | ' | ' |
Accounts receivable - employees | 80,556 | 47,533 |
Accounts receivable - other | 257,932 | 22,244 |
Payments for merchandise not received | 140,105 | 83,673 |
TOTAL | 478,593 | 153,450 |
OTHER ASSETS | ' | ' |
Security deposits - utilities, locations, etc. | 89,959 | 84,695 |
Leather art collection | 252,000 | 252,000 |
TOTAL | 341,959 | 336,695 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ' | ' |
Accrued bonuses | 2,741,003 | 2,238,057 |
Accrued payroll | 702,456 | 629,636 |
Deferred revenue | 864,104 | 826,467 |
Sales and payroll taxes payable | 423,340 | 295,482 |
Inventory in transit | 321,608 | 1,327,756 |
Other | 756,371 | 611,400 |
TOTAL | 5,808,882 | 5,928,798 |
Automobiles [Member] | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' |
Vehicles | $161,280 | $77,396 |
Note_6_Notes_Payable_And_LongT2
Note 6 - Notes Payable And Long-Term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2007 | Jul. 31, 2007 | Jul. 12, 2012 | Dec. 31, 2013 | Apr. 30, 2008 | Jul. 31, 2007 | Jul. 31, 2007 | Jul. 12, 2012 | Jul. 31, 2007 | Dec. 31, 2013 |
Building [Member] | Land [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Medium-term Notes [Member] | Credit Agreement [Member] | Line of Credit Note [Member] | Line of Credit Note [Member] | JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | |||
Credit Agreement [Member] | Credit Agreement [Member] | Line of Credit Note [Member] | Line of Credit Note [Member] | JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | |||||
JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | JPMorgan Chase Bank [Member] | |||||||||
sqft | acre | |||||||||||
Note 6 - Notes Payable And Long-Term Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | $5,500,000 | ' | $4,000,000 | ' | ' |
Area of Real Estate Property | ' | ' | 191,000 | 30 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' | ' |
Line Of Credit Facility Covenant Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | 7.10% | ' | ' | ' | ' | 7.10% | ' | ' | ' | ' | ' |
Proceeds from Bank Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,050,000 | ' |
Minimum Debt Service Coverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | 2.00% | 2.24% | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 |
Note_6_Notes_Payable_And_LongT3
Note 6 - Notes Payable And Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note: (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Credit Agreement with JPMorgan Chase Bank b collateralized by real estate; payable as follows: | ' | ' |
Line of Credit Note dated July 31, 2007, converted to a 10-year term note on April 30, 2008; $16,875 monthly principal payments plus interest at 7.1% per annum; matures April 30, 2018 | $2,598,750 | $3,105,000 |
2,598,750 | 3,105,000 | |
Less - Current maturities | -202,500 | -202,500 |
$2,396,250 | $2,902,500 |
Note_6_Notes_Payable_And_LongT4
Note 6 - Notes Payable And Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note: (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Credit Agreement and Line of Credit Note: [Abstract] | ' | ' |
Term of note | '10 years | '10 years |
Monthly principal payments | $16,875 | $16,875 |
Interest rate | 7.10% | 7.10% |
Maturity Date | 30-Apr-18 | 30-Apr-18 |
Note_6_Notes_Payable_And_LongT5
Note 6 - Notes Payable And Long-Term Debt (Details) - Scheduled Maturities (USD $) | Dec. 31, 2013 |
Scheduled Maturities [Abstract] | ' |
2014 | $202,500 |
2015 | 202,500 |
2016 | 202,500 |
2017 | 202,500 |
2018 | 1,788,750 |
$2,598,750 |
Note_7_Employee_Benefit_And_Sa2
Note 7 - Employee Benefit And Savings Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 7 - Employee Benefit And Savings Plans (Details) [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars) | $0 | $0 | $0 |
100% Matching [Member] | ' | ' | ' |
Note 7 - Employee Benefit And Savings Plans (Details) [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 100.00% | 100.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | 3.00% | 3.00% |
50% Matching [Member] | ' | ' | ' |
Note 7 - Employee Benefit And Savings Plans (Details) [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | 50.00% | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | 2.00% | ' |
Note_7_Employee_Benefit_And_Sa3
Note 7 - Employee Benefit And Savings Plans (Details) - Contributions to 401(k) Plan (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Maximum Matching Contribution per Participant | $10,200 | [1] | $7,500 | [1] | $7,350 | [1] |
Total Matching Contribution | 0 | 0 | 0 | |||
Total Matching Contribution [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Total Matching Contribution | $301,434 | $308,567 | $217,539 | |||
[1] | Due to the annual limit on eligible earnings imposed by the Internal Revenue Code |
Note_8_Income_Taxes_Details_Pr
Note 8 - Income Taxes (Details) - Provision for Income Taxes (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current provision: | ' | ' | ' |
Federal | $2,982,023 | $3,054,862 | $2,155,653 |
State | 527,042 | 415,244 | 375,336 |
3,509,065 | 3,470,106 | 2,530,989 | |
Deferred provision (benefit): | ' | ' | ' |
Federal | 399,032 | -107,843 | 229,540 |
State | 46,945 | -12,688 | 27,004 |
445,977 | -120,531 | 256,544 | |
$3,955,042 | $3,349,575 | $2,787,533 |
Note_8_Income_Taxes_Details_In
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions [Line Items] | ' | ' | ' |
$11,220,759 | $8,945,645 | $7,541,502 | |
UNITED STATES | ' | ' | ' |
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions [Line Items] | ' | ' | ' |
United States | 9,920,099 | 7,941,689 | 6,344,634 |
UNITED KINGDOM | ' | ' | ' |
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions [Line Items] | ' | ' | ' |
Income before income taxes by tax jurisdiction | 565,538 | 509,426 | 476,414 |
CANADA | ' | ' | ' |
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions [Line Items] | ' | ' | ' |
Income before income taxes by tax jurisdiction | 858,532 | 999,609 | 945,041 |
AUSTRALIA | ' | ' | ' |
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions [Line Items] | ' | ' | ' |
Income before income taxes by tax jurisdiction | 69,905 | -210,372 | -131,467 |
SPAIN | ' | ' | ' |
Note 8 - Income Taxes (Details) - Income before Income Taxes Earned in Tax Jurisdictions [Line Items] | ' | ' | ' |
Income before income taxes by tax jurisdiction | ($193,315) | ($294,707) | ($93,120) |
Note_8_Income_Taxes_Details_De
Note 8 - Income Taxes (Details) - Deferred Income Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Income Tax Assets and Liabilities [Abstract] | ' | ' |
Allowance for doubtful accounts | $98 | $39,310 |
Capitalized inventory costs | 208,384 | 200,017 |
Warrants and stock-based compensation | 48,591 | 54,042 |
Accrued expenses, reserves, and other | 101,050 | 110,151 |
Total deferred income tax assets | 358,123 | 403,520 |
Property and equipment depreciation | 1,074,646 | 689,893 |
Goodwill and other intangible assets amortization | 186,501 | 170,674 |
Total deferred income tax liabilities | 1,261,147 | 860,567 |
Net deferred tax asset (liability) | ($903,024) | ($457,047) |
Note_8_Income_Taxes_Details_Ne
Note 8 - Income Taxes (Details) - Net Deferred Tax Liablility Classified on the Balance Sheet (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Net Deferred Tax Liablility Classified on the Balance Sheet [Abstract] | ' | ' |
Current deferred tax assets | $309,533 | $349,478 |
Long-term deferred tax liabilities | -1,212,557 | -806,525 |
Net deferred tax asset (liability) | ($903,024) | ($457,047) |
Note_8_Income_Taxes_Details_Ef
Note 8 - Income Taxes (Details) - Effective Tax Rate Differences from the Statutory Rate | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Tax Rate Differences from the Statutory Rate [Abstract] | ' | ' | ' |
Statutory rate b Federal US income tax | 34.00% | 34.00% | 34.00% |
State and local taxes | 6.00% | 4.00% | 4.00% |
Non-U.S. income tax at different rates | -1.00% | 1.00% | 2.00% |
Domestic production activities deduction | -2.00% | -1.00% | -1.00% |
Other, net | -2.00% | -1.00% | -2.00% |
Effective rate | 35.00% | 37.00% | 37.00% |
Note_9_Commitments_and_Conting2
Note 9 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | |
Subsequent Event [Member] | |||||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Lease Term | ' | ' | ' | '5 years | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | ' | $3,312,152 | $3,135,773 | $2,750,373 | ' |
Litigation Settlement, Amount | ' | ' | ' | 993,386 | ' | ' | ' |
Payments for Legal Settlements | ' | ' | ' | 744,273 | ' | ' | ' |
Loss Contingency Escrow Deposit | ' | ' | ' | 993,386 | ' | ' | ' |
Return of Excess Litigation Settlement | ' | ' | ' | ' | ' | ' | 249,000 |
Litigation Settlement, Expense | ' | 993,386 | ' | ' | ' | ' | ' |
Loss Contingency Benefit | ' | ' | 312,000 | ' | ' | ' | ' |
Litigation Settlement, Payroll Taxes | $63,000 | ' | ' | ' | ' | ' | ' |
Note_9_Commitments_and_Conting3
Note 9 - Commitments and Contingencies (Details) - Future Minimum Lease Payments under Noncancelable Operating Leases (USD $) | Dec. 31, 2013 |
Note 9 - Commitments and Contingencies (Details) - Future Minimum Lease Payments under Noncancelable Operating Leases [Line Items] | ' |
2014 | $3,307,344 |
2015 | 2,689,245 |
2016 | 1,982,471 |
2017 | 1,401,911 |
2018 | 677,356 |
Total minimum lease payments | 10,218,378 |
Year 2019 [Member] | ' |
Note 9 - Commitments and Contingencies (Details) - Future Minimum Lease Payments under Noncancelable Operating Leases [Line Items] | ' |
Remaining lease payments after five years | 132,384 |
Year 2020 [Member] | ' |
Note 9 - Commitments and Contingencies (Details) - Future Minimum Lease Payments under Noncancelable Operating Leases [Line Items] | ' |
Remaining lease payments after five years | $27,667 |
Note_10_Significant_Business_C1
Note 10 - Significant Business Concentrations And Risk (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 10 - Significant Business Concentrations And Risk (Details) [Line Items] | ' | ' | ' |
Number of Major Customers | 5 | ' | ' |
Concentration Risk, Supplier | 'one | ' | ' |
Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ' | ' | ' |
Note 10 - Significant Business Concentrations And Risk (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 1.00% | 1.00% | 1.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Note 10 - Significant Business Concentrations And Risk (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 16.00% | 30.00% | 34.00% |
Five Largest Customers [Member] | Consolidated Revenues [Member] | ' | ' | ' |
Note 10 - Significant Business Concentrations And Risk (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 2.50% | ' | ' |
Five Largest Customers [Member] | Sales Revenue, Goods, Net [Member] | ' | ' | ' |
Note 10 - Significant Business Concentrations And Risk (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | ' | 2.90% | 5.50% |
Note_11_Stockholders_Equity_De
Note 11 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Apr. 02, 2012 | Feb. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 06, 2013 | Jun. 16, 2013 | |
Restricted Stock [Member] | Director 2007 Non-Qualified Stock Option Plan [Member] | Stockholder Rights Plan [Member] | Stockholder Rights Plan [Member] | |||||
Note 11 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '4 years | '6 months | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 300,000 | 100,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | '10 years | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | 21,400 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | ' | ' | 0 | ' | 0 | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared (in Dollars per share) | ' | $0.25 | ' | ' | ' | ' | ' | ' |
Payments of Dividends (in Dollars) | $2,500,000 | ' | ' | $2,536,131 | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | $0.00 | ' |
Ratio of Preferred Stock Authorized for Purchase | ' | ' | ' | ' | ' | ' | 'one one-thousandth | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | ' | ' | ' | ' | ' | ' | 30 | ' |
Minimum Ownership Percentage of Outstanding Common Stock | ' | ' | ' | ' | ' | ' | ' | 20.00% |
Note_11_Stockholders_Equity_De1
Note 11 - Stockholders' Equity (Details) - Stock Option Transactions (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 11 - Stockholders' Equity (Details) - Stock Option Transactions [Line Items] | ' | ' | ' |
Granted (in Shares) | 12,000 | 12,000 | 12,000 |
Granted | $6.87 | $5.27 | $4.80 |
Exercised (in Shares) | -49,000 | -6,000 | 0 |
Exercised | $4.23 | $3.50 | ' |
Outstanding at December 31 (in Shares) | 84,600 | ' | ' |
Outstanding at December 31 | $5.04 | ' | ' |
Weighted-average fair value of options granted during year | $0.97 | $0.83 | $1.19 |
Director 2007 Non-Qualified Stock Option Plan [Member] | Year 2013 [Member] | ' | ' | ' |
Note 11 - Stockholders' Equity (Details) - Stock Option Transactions [Line Items] | ' | ' | ' |
Outstanding at January 1 (in Shares) | 121,600 | ' | ' |
Outstanding at January 1 | $4.53 | ' | ' |
Granted (in Shares) | 12,000 | ' | ' |
Granted | $6.87 | ' | ' |
Exercised (in Shares) | -49,000 | ' | ' |
Exercised | $4.23 | ' | ' |
Outstanding at December 31 (in Shares) | 84,600 | ' | ' |
Outstanding at December 31 | $5.04 | ' | ' |
Exercisable at end of year (in Shares) | 84,600 | ' | ' |
Exercisable at end of year | $5.04 | ' | ' |
Weighted-average fair value of options granted during year | $0.97 | ' | ' |
Director 2007 Non-Qualified Stock Option Plan [Member] | Year 2012 [Member] | ' | ' | ' |
Note 11 - Stockholders' Equity (Details) - Stock Option Transactions [Line Items] | ' | ' | ' |
Outstanding at January 1 (in Shares) | ' | 115,600 | ' |
Outstanding at January 1 | ' | $4.40 | ' |
Granted (in Shares) | ' | 12,000 | ' |
Granted | ' | $5.27 | ' |
Exercised (in Shares) | ' | -6,000 | ' |
Exercised | ' | $3.50 | ' |
Outstanding at December 31 (in Shares) | ' | 121,600 | ' |
Outstanding at December 31 | ' | $4.53 | ' |
Exercisable at end of year (in Shares) | ' | 121,600 | ' |
Exercisable at end of year | ' | $4.53 | ' |
Weighted-average fair value of options granted during year | ' | $0.83 | ' |
Director 2007 Non-Qualified Stock Option Plan [Member] | Year 2011 [Member] | ' | ' | ' |
Note 11 - Stockholders' Equity (Details) - Stock Option Transactions [Line Items] | ' | ' | ' |
Outstanding at January 1 (in Shares) | ' | ' | 103,600 |
Outstanding at January 1 | ' | ' | $4.35 |
Granted (in Shares) | ' | ' | 12,000 |
Granted | ' | ' | $4.80 |
Outstanding at December 31 (in Shares) | ' | ' | 115,600 |
Outstanding at December 31 | ' | ' | $4.40 |
Exercisable at end of year (in Shares) | ' | ' | 115,600 |
Exercisable at end of year | ' | ' | $4.40 |
Weighted-average fair value of options granted during year | ' | ' | $1.19 |
Note_11_Stockholders_Equity_De2
Note 11 - Stockholders' Equity (Details) - Outstanding Options by Exercise Price Ranges (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding - Option Shares (in Shares) | 84,600 |
Options Outstanding - Weighted Average Exercise Price | $5.04 |
Options Outstanding - Weighted Average Maturity (Years) | '7 years 80 days |
Options Exercisable - Option Shares (in Shares) | 84,600 |
Options Exercisable - Weighted Average Exercise Price | $5.04 |
Options Exercisable - Weighted Average Maturity (Years) | '10 years |
Exercise Price Range $2.72 to $3.90 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range - Lower | $2.72 |
Exercise Price Range - Upper | $3.90 |
Options Outstanding - Option Shares (in Shares) | 2,000 |
Options Outstanding - Weighted Average Exercise Price | $3.87 |
Options Outstanding - Weighted Average Maturity (Years) | '361 days |
Options Exercisable - Option Shares (in Shares) | 2,000 |
Options Exercisable - Weighted Average Exercise Price | $3.87 |
Options Exercisable - Weighted Average Maturity (Years) | '361 days |
Exercise Price Range $3.91 to $5.30 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Range - Lower | $3.91 |
Exercise Price Range - Upper | $5.30 |
Options Outstanding - Option Shares (in Shares) | 82,600 |
Options Outstanding - Weighted Average Exercise Price | $5.07 |
Options Outstanding - Weighted Average Maturity (Years) | '7 years 135 days |
Options Exercisable - Option Shares (in Shares) | 82,600 |
Options Exercisable - Weighted Average Exercise Price | $5.07 |
Options Exercisable - Weighted Average Maturity (Years) | '7 years 135 days |
Note_12_Discontinued_Operation2
Note 12 - Discontinued Operations (Details) - Discontinued Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current provision (benefit): | ' | ' | ' |
Federal | $2,982,023 | $3,054,862 | $2,155,653 |
State | 527,042 | 415,244 | 375,336 |
3,509,065 | 3,470,106 | 2,530,989 | |
Roberts, Cushman and Company Inc. [Member] | Discontinued Operations [Member] | ' | ' | ' |
Current provision (benefit): | ' | ' | ' |
Federal | ' | ' | -1,394 |
State | ' | ' | 26 |
' | ' | -1,368 | |
' | ' | ($1,368) |
Note_13_Segment_Information_De
Note 13 - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 3 |
Note_13_Segment_Information_De1
Note 13 - Segment Information (Details) - Summary of Reportable Segments (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $78,284,585 | $72,720,624 | $66,102,947 |
Gross profit | 49,328,024 | 45,905,674 | 40,337,159 |
Operating earnings | 11,266,790 | 9,144,005 | 7,706,650 |
Interest expense | 206,763 | 240,934 | 248,576 |
Other, net | -160,732 | -42,574 | -83,428 |
Income before income taxes | 11,220,759 | 8,945,645 | 7,541,502 |
Depreciation and amortization | 1,194,612 | 1,068,226 | 1,016,561 |
Fixed asset additions | 3,770,022 | 2,686,221 | 1,100,523 |
Total assets | 56,398,566 | 49,087,672 | 45,502,915 |
Wholesale Leathercraft [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 27,384,614 | 26,850,002 | 26,540,899 |
Gross profit | 18,425,268 | 18,063,191 | 16,268,075 |
Operating earnings | 4,840,416 | 3,730,678 | 2,803,034 |
Interest expense | 206,763 | 240,934 | 248,576 |
Other, net | -118,218 | -14,798 | -79,149 |
Income before income taxes | 4,751,871 | 3,504,542 | 2,633,607 |
Depreciation and amortization | 866,264 | 820,622 | 841,058 |
Fixed asset additions | 1,946,980 | 2,111,569 | 535,713 |
Total assets | 40,981,591 | 36,535,099 | 35,966,965 |
Retail Leathercraft [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 46,995,902 | 42,616,546 | 37,435,832 |
Gross profit | 28,430,800 | 25,833,852 | 22,645,847 |
Operating earnings | 6,026,731 | 5,436,745 | 4,656,067 |
Other, net | -29 | -13 | ' |
Income before income taxes | 6,026,760 | 5,436,758 | 4,656,067 |
Depreciation and amortization | 271,536 | 193,394 | 158,804 |
Fixed asset additions | 1,778,727 | 496,846 | 350,570 |
Total assets | 12,206,584 | 10,037,416 | 7,185,016 |
International Leathercraft [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 3,904,069 | 3,254,076 | 2,126,216 |
Gross profit | 2,471,956 | 2,008,631 | 1,423,237 |
Operating earnings | 399,643 | -23,418 | 247,549 |
Other, net | -42,485 | -27,763 | -4,279 |
Income before income taxes | 442,128 | 4,345 | 251,828 |
Depreciation and amortization | 56,812 | 54,210 | 16,699 |
Fixed asset additions | 44,315 | 77,806 | 214,240 |
Total assets | $3,210,391 | $2,515,157 | $2,350,934 |
Note_13_Segment_Information_De2
Note 13 - Segment Information (Details) - Net Sales for Geographic Areas (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Geographic locations | $78,284,585 | $72,720,624 | $66,102,947 |
UNITED STATES | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Geographic locations | 65,371,652 | 61,041,650 | 56,337,737 |
CANADA | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Geographic locations | 8,004,320 | 7,496,840 | 6,714,100 |
All Other Countries [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Geographic locations | $4,908,613 | $4,182,134 | $3,051,110 |
Note_15_Quarterly_Financial_Da2
Note 15 - Quarterly Financial Data (Unaudited) (Details) - Summary of Quarterly Financial Data (Unaudited) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 15 - Quarterly Financial Data (Unaudited) (Details) - Summary of Quarterly Financial Data (Unaudited) [Line Items] | ' | ' | ' |
Gross profit | $49,328,024 | $45,905,674 | $40,337,159 |
Net income from continuing operations | 7,265,717 | 5,596,070 | 4,753,969 |
Net income | 7,265,717 | 5,596,070 | 4,752,601 |
Net income from continuing operations per common share, Basic | $0.71 | $0.55 | $0.47 |
Net income from continuing operations per common share, Diluted | $0.71 | $0.55 | $0.47 |
Net income per common share, Basic | $0.71 | $0.55 | $0.47 |
Net income per common share, Diluted | $0.71 | $0.55 | $0.47 |
Weighted average number of common shares outstanding, Basic | 10,176,492 | 10,157,395 | 10,156,442 |
Weighted average number of common shares outstanding, Diluted | 10,216,438 | 10,175,346 | 10,182,098 |
First Quarter [Member] | ' | ' | ' |
Note 15 - Quarterly Financial Data (Unaudited) (Details) - Summary of Quarterly Financial Data (Unaudited) [Line Items] | ' | ' | ' |
Net sales | 19,237,827 | 18,177,078 | ' |
Gross profit | 11,930,829 | 11,365,633 | ' |
Net income from continuing operations | 1,586,321 | 1,574,105 | ' |
Net income | 1,586,321 | 1,574,105 | ' |
Net income from continuing operations per common share, Basic | $0.16 | $0.15 | ' |
Net income from continuing operations per common share, Diluted | $0.16 | $0.15 | ' |
Net income per common share, Basic | $0.16 | $0.15 | ' |
Net income per common share, Diluted | $0.16 | $0.15 | ' |
Weighted average number of common shares outstanding, Basic | 10,162,442 | 10,156,442 | ' |
Weighted average number of common shares outstanding, Diluted | 10,194,219 | 10,172,950 | ' |
Second Quarter [Member] | ' | ' | ' |
Note 15 - Quarterly Financial Data (Unaudited) (Details) - Summary of Quarterly Financial Data (Unaudited) [Line Items] | ' | ' | ' |
Net sales | 18,973,013 | 16,904,254 | ' |
Gross profit | 11,920,121 | 10,940,201 | ' |
Net income from continuing operations | 1,629,353 | 1,539,639 | ' |
Net income | 1,629,353 | 1,539,639 | ' |
Net income from continuing operations per common share, Basic | $0.16 | $0.15 | ' |
Net income from continuing operations per common share, Diluted | $0.16 | $0.15 | ' |
Net income per common share, Basic | $0.16 | $0.15 | ' |
Net income per common share, Diluted | $0.16 | $0.15 | ' |
Weighted average number of common shares outstanding, Basic | 10,167,649 | 10,156,442 | ' |
Weighted average number of common shares outstanding, Diluted | 10,216,535 | 10,172,171 | ' |
Third Quarter [Member] | ' | ' | ' |
Note 15 - Quarterly Financial Data (Unaudited) (Details) - Summary of Quarterly Financial Data (Unaudited) [Line Items] | ' | ' | ' |
Net sales | 18,524,604 | 17,000,728 | ' |
Gross profit | 11,700,943 | 10,404,770 | ' |
Net income from continuing operations | 1,561,832 | 280,770 | ' |
Net income | 1,561,832 | 280,770 | ' |
Net income from continuing operations per common share, Basic | $0.15 | $0.03 | ' |
Net income from continuing operations per common share, Diluted | $0.15 | $0.03 | ' |
Net income per common share, Basic | $0.15 | $0.03 | ' |
Net income per common share, Diluted | $0.15 | $0.03 | ' |
Weighted average number of common shares outstanding, Basic | 10,176,744 | 10,156,442 | ' |
Weighted average number of common shares outstanding, Diluted | 10,221,512 | 10,177,466 | ' |
Fourth Quarter [Member] | ' | ' | ' |
Note 15 - Quarterly Financial Data (Unaudited) (Details) - Summary of Quarterly Financial Data (Unaudited) [Line Items] | ' | ' | ' |
Net sales | 21,549,141 | 20,638,564 | ' |
Gross profit | 13,776,131 | 13,195,070 | ' |
Net income from continuing operations | 2,488,211 | 2,201,556 | ' |
Net income | $2,488,211 | $2,201,556 | ' |
Net income from continuing operations per common share, Basic | $0.24 | $0.22 | ' |
Net income from continuing operations per common share, Diluted | $0.24 | $0.22 | ' |
Net income per common share, Basic | $0.24 | $0.22 | ' |
Net income per common share, Diluted | $0.24 | $0.22 | ' |
Weighted average number of common shares outstanding, Basic | 10,198,733 | 10,159,877 | ' |
Weighted average number of common shares outstanding, Diluted | 10,233,009 | 10,178,759 | ' |