Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 10, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'TANDY LEATHER FACTORY INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 10,245,534 |
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 | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ' | ' |
Cash | $4,866,016 | $11,082,679 |
Accounts receivable-trade, net of allowance for doubtful accounts of $1,000 and $1,000 in 2014 and 2013, respectively | 702,002 | 762,405 |
Inventory | 39,365,204 | 26,300,830 |
Prepaid income taxes | 463,329 | ' |
Deferred income taxes | 419,824 | 309,533 |
Prepaid expenses | 1,621,327 | 1,609,644 |
Other current assets | 98,580 | 478,593 |
Total current assets | 47,536,282 | 40,543,684 |
PROPERTY AND EQUIPMENT, at cost | 21,808,785 | 20,290,990 |
Less accumulated depreciation and amortization | -6,763,514 | -5,863,280 |
15,045,271 | 14,427,710 | |
GOODWILL | 975,657 | 981,985 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $655,000 and $622,000 in 2014 and 2013, respectively | 69,304 | 103,228 |
OTHER assets | 334,991 | 341,959 |
TOTAL ASSETS | 63,961,505 | 56,398,566 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable-trade | 1,942,108 | 1,884,637 |
Accrued expenses and other liabilities | 5,940,106 | 5,808,882 |
Income taxes payable | ' | 272,198 |
Current maturities of long-term debt | 6,202,500 | 202,500 |
Total current liabilities | 14,084,714 | 8,168,217 |
DEFERRED INCOME TAXES | 1,095,362 | 1,212,557 |
LONG-TERM DEBT, net of current maturities | 1,991,250 | 2,396,250 |
STOCKHOLDERS’ EQUITY: | ' | ' |
Preferred stock, $0.10 par value; 20,000,000 shares authorized; none issued or outstanding; attributes to be determined on issuance | 0 | 0 |
Common stock, $0.0024 par value; 25,000,000 shares authorized; 11,239,157 and 11,192,356 shares issued at 2014 and 2013, respectively; 10,245,534 and 10,198,733 shares outstanding at 2014 and 2013, respectively | 26,979 | 26,862 |
Paid-in capital | 5,993,953 | 5,892,907 |
Retained earnings | 44,206,367 | 41,507,592 |
Treasury stock at cost (993,623 shares at 2014 and 2013) | -2,894,068 | -2,894,068 |
Accumulated other comprehensive income | -543,052 | 88,249 |
Total stockholders’ equity | 46,790,179 | 44,621,542 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $63,961,505 | $56,398,566 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounts receivable-trade, net allowance for doubtful accounts (in Dollars) | $1,000 | $1,000 |
OTHER INTANGIBLES, net of accumulated amortization (in Dollars) | $655,000 | $622,000 |
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 | 11,239,157 | 11,192,356 |
Common stock, shares outstanding | 10,245,534 | 10,198,733 |
Treasury stock shares | 993,623 | 993,623 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
NET SALES | $19,417,234 | $18,524,604 | $58,959,307 | $56,735,444 |
COST OF SALES | 7,242,525 | 6,823,661 | 21,289,269 | 21,183,551 |
Gross profit | 12,174,709 | 11,700,943 | 37,670,038 | 35,551,893 |
OPERATING EXPENSES | 9,717,782 | 9,295,590 | 29,590,171 | 28,179,616 |
INCOME FROM OPERATIONS | 2,456,927 | 2,405,353 | 8,079,867 | 7,372,277 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest expense | -63,684 | -51,021 | -154,367 | -158,659 |
Other, net | 37,525 | 13,777 | 44,203 | 138,800 |
Total other income (expense) | -26,159 | -37,244 | -110,164 | -19,859 |
INCOME BEFORE INCOME TAXES | 2,430,768 | 2,368,109 | 7,969,703 | 7,352,418 |
PROVISION FOR INCOME TAXES | 802,206 | 806,277 | 2,721,244 | 2,574,912 |
NET INCOME | $1,628,562 | $1,561,832 | $5,248,459 | $4,777,506 |
NET INCOME PER COMMON SHARE: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.16 | $0.15 | $0.51 | $0.47 |
Diluted (in Dollars per share) | $0.16 | $0.15 | $0.51 | $0.47 |
Weighted Average Number of Shares Outstanding: | ' | ' | ' | ' |
Basic (in Shares) | 10,203,711 | 10,176,744 | 10,200,411 | 10,163,490 |
Diluted (in Shares) | 10,241,410 | 10,221,512 | 10,240,109 | 10,205,348 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
NET INCOME | $1,628,562 | $1,561,832 | $5,248,459 | $4,777,506 |
Foreign currency translation adjustments | -721,916 | 272,799 | -631,301 | -88,694 |
COMPREHENSIVE INCOME | $906,646 | $1,834,631 | $4,617,158 | $4,688,812 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $5,248,459 | $4,777,506 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 1,088,758 | 889,395 |
Loss on disposal or abandonment of assets | 8,603 | 89,531 |
Non-cash stock-based compensation | 48,441 | 11,686 |
Deferred income taxes | -227,486 | 190,144 |
Other | -606,442 | -70,330 |
Net changes in assets and liabilities, net of effect of business acquisitions: | ' | ' |
Accounts receivable-trade, net | 60,403 | -122,953 |
Inventory | -13,064,374 | -3,629,704 |
Income taxes | -735,527 | -119,811 |
Prepaid expenses | -11,683 | -1,069,399 |
Other current assets | 380,013 | -276,072 |
Accounts payable-trade | 57,471 | 686,823 |
Accrued expenses and other liabilities | 131,224 | -15,234 |
Total adjustments | -12,870,599 | -3,435,924 |
Net cash provided by (used in) operating activities | -7,622,140 | 1,341,582 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -1,719,464 | -2,415,484 |
Proceeds from sale of assets | 19,935 | 515 |
Decrease (increase) in other assets | 6,968 | -420 |
Net cash used in investing activities | -1,692,561 | -2,415,389 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net increase in revolving credit loans | 6,000,000 | ' |
Payments on notes payable and long-term debt | -405,000 | -455,625 |
Proceeds from issuance of common stock | 52,722 | 113,800 |
Payment of cash dividend | -2,549,684 | ' |
Net cash provided by (used in) financing activities | 3,098,038 | -341,825 |
NET CHANGE IN CASH | -6,216,663 | -1,415,632 |
CASH, beginning of period | 11,082,679 | 7,705,182 |
CASH, end of period | 4,866,016 | 6,289,550 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Interest paid during the period | 154,367 | 158,659 |
Income tax paid during the period, net of (refunds) | $3,690,817 | $2,507,842 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders’ Equity (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
BALANCE, | $46,790,179 | $42,335,315 | $46,790,179 | $42,335,315 | $44,621,542 | $37,521,017 |
BALANCE, shares (in Shares) | 11,239,157 | ' | 11,239,157 | ' | 11,192,356 | ' |
Shares issued – stock options exercised | ' | ' | 52,722 | 113,800 | ' | ' |
Shares issued – stock options exercised, shares (in Shares) | ' | ' | 12,200 | 49,000 | ' | ' |
Stock-based compensation | ' | ' | 48,441 | 11,686 | ' | ' |
Cash dividend | ' | ' | -2,549,684 | ' | ' | ' |
Net income | 1,628,562 | 1,561,832 | 5,248,459 | 4,777,506 | ' | ' |
Translation adjustment | -721,916 | 272,799 | -631,301 | -88,694 | ' | ' |
Common Stock [Member] | ' | ' | ' | ' | ' | ' |
BALANCE, | 26,979 | 26,862 | 26,979 | 26,862 | 26,862 | 26,775 |
BALANCE, shares (in Shares) | 10,245,534 | 10,198,733 | 10,245,534 | 10,198,733 | 10,198,733 | 10,162,442 |
Shares issued – stock options exercised | ' | ' | 29 | 87 | ' | ' |
Shares issued – stock options exercised, shares (in Shares) | ' | ' | 12,200 | 36,291 | ' | ' |
Stock-based compensation | ' | ' | 88 | ' | ' | ' |
Stock-based compensation, shares (in Shares) | ' | ' | 34,601 | ' | ' | ' |
Additional Paid-in Capital [Member] | ' | ' | ' | ' | ' | ' |
BALANCE, | 5,993,953 | 5,892,907 | 5,993,953 | 5,892,907 | 5,892,907 | 5,767,508 |
Shares issued – stock options exercised | ' | ' | 52,693 | 113,713 | ' | ' |
Stock-based compensation | ' | ' | 48,353 | 11,686 | ' | ' |
Treasury Stock [Member] | ' | ' | ' | ' | ' | ' |
BALANCE, | -2,894,068 | -2,894,068 | -2,894,068 | -2,894,068 | -2,894,068 | -2,894,068 |
Retained Earnings [Member] | ' | ' | ' | ' | ' | ' |
BALANCE, | 44,206,367 | 39,019,381 | 44,206,367 | 39,019,381 | 41,507,592 | 34,241,875 |
Cash dividend | ' | ' | -2,549,684 | ' | ' | ' |
Net income | ' | ' | 5,248,459 | 4,777,506 | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ' | ' |
BALANCE, | -543,052 | 290,233 | -543,052 | 290,233 | 88,249 | 378,927 |
Translation adjustment | ' | ' | ($631,301) | ($88,694) | ' | ' |
Note_1_Basis_of_Presentation_a
Note 1 - Basis of Presentation and Certain Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ||||||||||||||||||||||||
1. BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of September 30, 2014 and December 31, 2013, and its results of operations and cash flows for the three and/or nine-month periods ended September 30, 2014 and 2013. Operating results for the three and nine-month periods ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Inventory. Inventory is stated at the lower of cost or market and is accounted for on the “first in, first out” method. Based on negotiations with vendors, title generally passes to us when merchandise is put on board. Merchandise to which we have title but which we have not yet received is recorded as inventory in transit. In addition, the value of inventory is periodically reduced for slow-moving or obsolete inventory based on management's review of items on hand compared to their estimated future demand. | |||||||||||||||||||||||||
The components of inventory consist of the following: | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Inventory on hand: | |||||||||||||||||||||||||
Finished goods held for sale | $ | 36,593,039 | $ | 24,546,771 | |||||||||||||||||||||
Raw materials and work in process | 1,196,573 | 853,200 | |||||||||||||||||||||||
Inventory in transit | 1,575,592 | 900,859 | |||||||||||||||||||||||
$ | 39,365,204 | $ | 26,300,830 | ||||||||||||||||||||||
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. | |||||||||||||||||||||||||
A two-step process is used to test for goodwill impairment. The first phase screens for impairment, while the second phase (if necessary) measures the impairment. We have elected to perform the annual analysis during the fourth calendar quarter of each year. As of December 31, 2013, management determined that the present value of the discounted estimated future cash flows of the stores associated with the goodwill is sufficient to support their respective goodwill balances. No indicators of impairment were identified during the first nine months of 2014. | |||||||||||||||||||||||||
A summary of changes in our goodwill for the periods ended September 30, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||||||||||
Balance, December 31, 2012 | $ | 607,319 | $ | 383,406 | $ | 990,725 | |||||||||||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||||||||||
Foreign exchange gain/loss | (4,572 | ) | - | (4,572 | ) | ||||||||||||||||||||
Impairments | - | - | - | ||||||||||||||||||||||
Balance, September 30, 2013 | $ | 602,747 | $ | 383,406 | $ | 986,153 | |||||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||||||||||
Balance, December 31, 2013 | $ | 598,579 | $ | 383,406 | $ | 981,985 | |||||||||||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||||||||||
Foreign exchange gain/loss | (6,328 | ) | - | (6,328 | ) | ||||||||||||||||||||
Impairments | - | - | - | ||||||||||||||||||||||
Balance, September 30, 2014 | $ | 592,251 | $ | 383,406 | $ | 975,657 | |||||||||||||||||||
Other intangibles consist of the following: | |||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 510,815 | $ | 33,554 | $ | 544,369 | $ | 487,891 | $ | 56,478 | |||||||||||||
Non-Compete Agreements | 179,768 | 144,018 | 35,750 | 181,216 | 134,466 | 46,750 | |||||||||||||||||||
$ | 724,137 | $ | 654,833 | $ | 69,304 | $ | 725,585 | $ | 622,357 | $ | 103,228 | ||||||||||||||
We recorded amortization expense of $33,924 during the first nine months of 2014 compared to $30,890 during the same period of 2013. All of our intangible assets are subject to amortization under U.S. GAAP. 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: | |||||||||||||||||||||||||
Wholesale Leathercraft | Retail Leathercraft | Total | |||||||||||||||||||||||
2014 | $ | 198 | $ | 45,004 | $ | 45,202 | |||||||||||||||||||
2015 | 108 | $ | 40,302 | $ | 40,410 | ||||||||||||||||||||
2016 | 108 | 5,667 | 5,775 | ||||||||||||||||||||||
2017 | 90 | 1,000 | 1,090 | ||||||||||||||||||||||
2018 | - | 750 | 750 | ||||||||||||||||||||||
Revenue Recognition. Our sales generally occur via two methods: (1) at the counter in our stores, 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. Our shipping terms are FOB shipping point. | |||||||||||||||||||||||||
We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. | |||||||||||||||||||||||||
Comprehensive Income (loss) and Accumulated Other Comprehensive Income (loss). Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-stockholder sources and includes all changes in equity during a period except those resulting from investments by and dividends to stockholders. Our comprehensive income (loss) consists of our net income and foreign currency translation adjustments from our international operations. | |||||||||||||||||||||||||
Recent Accounting Pronouncements. In July 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists” to eliminate the diversity in practice associated with the presentation of unrecognized tax benefits in instances where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 generally requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard did not have a material impact on our consolidated financial statements. | |||||||||||||||||||||||||
In April 2014, FASB issued Accounting Standards Update 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This guidance also changes an entity’s requirements when presenting, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation. A discontinued operation may include a component of an entity, or a business or nonprofit activity. The guidance is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of the new requirements is not expected to have a material impact on our consolidated earnings, financial position or cash flows. | |||||||||||||||||||||||||
In May 2014, FASB issued Accounting Standards Update 2014-09 which creates a new topic in the Accounting Standards Codification (“ASC”) Topic 606, “Revenue From Contracts With Customers.” In addition to superseding and replacing nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance, ASC 606 establishes a new control-based revenue recognition model; changes the basis for deciding when revenue is recognized over time or at a point in time; provides new and more detailed guidance on specific topics; and expands and improves disclosures about revenue. In addition, ASU 2014-09 adds a new Subtopic to the Codification, ASC 340-40, “Other Assets and Deferred Costs: Contracts with Customers,” to provide guidance on costs related to obtaining a contract with a customer and costs incurred in fulfilling a contract with a customer that are not in the scope of another ASC Topic. The guidance is effective for interim and annual reporting periods beginning after December 15, 2016. Companies are permitted to apply the guidance in ASC 606 using one of the following two methods: retrospectively to each prior period presented in accordance with ASC 250, subject to certain practical expedients; or retrospectively with a cumulative effect adjustment to opening retained earnings in the period of initial adoption. If applying this transition method, an entity should apply the new revenue recognition guidance only to contracts not completed under existing U.S. GAAP at the date of adoption. We are currently evaluating the adoption method to apply and the impact that the update will have on its financial position, results of operations, cash flows and financial statement disclosures. |
Note_2_Notes_Payable_and_LongT
Note 2 - Notes Payable and Long-Term Debt | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
2. 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 at 1900 SE Loop 820 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. 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. On April 30, 2008, the principal balance was rolled into a 10-year term note with an interest rate of 7.10% per annum. | |||||||||
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 million. The revolver bears interest at LIBOR plus 2% (2.24% at September 30, 2014) and was to mature on June 30, 2014. On June 23, 2014, we executed a Note Modification Agreement which increased the maximum amount available from $4 million to $6 million and extended the maturity date from June 30, 2014 to June 30, 2015. All other terms remain unchanged. Interest is paid monthly. The 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. | |||||||||
At September 30, 2014 and December 31, 2013, the amount outstanding under the above agreements consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
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 | $ | 2,193,750 | $ | 2,598,750 | |||||
Line of Credit Note with JPMorgan Chase Bank – collateralized by real estate; payable as follows: | |||||||||
Line of Credit Note dated July 12, 2012, as amended on June 23, 2014, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 2%; matures June 30, 2015 | $ | 6,000,000 | - | ||||||
8,193,750 | 2,598,750 | ||||||||
Less - Current maturities | (6,202,500 | ) | (202,500 | ) | |||||
$ | 1,991,250 | $ | 2,396,250 | ||||||
Note_3_StockBased_Compensation
Note 3 - Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
3. STOCK-BASED COMPENSATION | |||||||||||||||||
We have one stock option plan which provides for 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 the first nine months of 2013, while no options were awarded in 2014. These options vest and become exercisable six months from the option grant date. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock as of closing 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 $0 and $11,686 for the quarter and nine months ended September 30, 2013 as a component of operating expenses. No share based compensation expense pertaining to stock options grants was recognized in 2014. | |||||||||||||||||
During the nine months ended September 30, 2014 and 2013, the stock option activity under our stock option plans was as follows: | |||||||||||||||||
Weighted Average Exercise | # of shares | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||||||
Price | |||||||||||||||||
Outstanding, January 1, 2013 | $ | 4.53 | 121,600 | ||||||||||||||
Granted | 6.87 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.23 | (49,000 | ) | ||||||||||||||
Outstanding, September 30, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Exercisable, September 30, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Outstanding, January 1, 2014 | $ | 5.04 | 84,600 | ||||||||||||||
Granted | - | - | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.32 | (12,200 | ) | ||||||||||||||
Outstanding, September 30, 2014 | $ | 5.78 | 72,400 | 6.42 | $ | 89,840 | |||||||||||
Exercisable, September 30, 2014 | $ | 5.78 | 72,400 | 6.42 | $ | 89,840 | |||||||||||
Other information pertaining to option activity during the nine-month periods ended September 30, 2014 and 2013 are as follows: | |||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
Weighted average grant-date fair value of stock options granted | N/A | $ | 0.97 | ||||||||||||||
Total fair value of stock options vested | N/A | $ | 11,686 | ||||||||||||||
Total intrinsic value of stock options exercised | $ | 14,816 | $ | 113,790 | |||||||||||||
The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Volatility | N/A | 19.1 | % | ||||||||||||||
Expected option life (in years) | N/A | 3 | |||||||||||||||
Interest rate (risk free) | N/A | 0.8 | % | ||||||||||||||
Dividends | None | None | |||||||||||||||
There was no unrecognized compensation cost as of September 30, 2014 and 2013. | |||||||||||||||||
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. | |||||||||||||||||
In February 2014, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,375 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,619 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of nonvested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis over the four year vesting period. | |||||||||||||||||
A summary of the activity for nonvested restricted common stock awards as of September 30, 2014 is presented below: | |||||||||||||||||
Shares | Grant Fair Value | ||||||||||||||||
Balance, January 1, 2014 | - | - | |||||||||||||||
Granted | 34,601 | $ | 8.96 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Vested | - | - | |||||||||||||||
Balance, September 30, 2014 | 34,601 | $ | 8.96 | ||||||||||||||
Pertaining to restricted stock awards, we recognized share based compensation expense of $19,376 and $48,441, respectively, during the three and nine months ended September 30, 2014 as a component of operating expenses. As of September 30, 2014, there was unrecognized compensation cost related to non-vested restricted stock awards of $261,584 to be recognized in equal amounts over a period of four years. |
Note_4_Earnings_Per_Share
Note 4 - Earnings Per Share | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||||||
4. EARNINGS PER SHARE | ||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Numerator: | ||||||||||||||||||
Net income | $ | 1,628,562 | $ | 1,561,832 | $ | 5,248,459 | $ | 4,777,506 | ||||||||||
Numerator for basic and diluted earnings per share | 1,628,562 | 1,561,832 | 5,248,459 | 4,777,506 | ||||||||||||||
Denominator: | ||||||||||||||||||
Weighted-average shares outstanding-basic | 10,203,711 | 10,176,744 | 10,200,411 | 10,163,490 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock options | 36,294 | 44,768 | 38,133 | 41,858 | ||||||||||||||
Restricted stock | 1,405 | - | 1,565 | |||||||||||||||
Dilutive potential common shares | 37,699 | 44,768 | 39,698 | 41,858 | ||||||||||||||
Denominator for diluted earnings per share-weighted-average shares | 10,241,410 | 10,221,512 | 10,240,109 | 10,205,348 | ||||||||||||||
Basic earnings per share | $ | 0.16 | $ | 0.15 | $ | 0.51 | $ | 0.47 | ||||||||||
Diluted earnings per share | $ | 0.16 | $ | 0.15 | $ | 0.51 | $ | 0.47 | ||||||||||
The net effect of converting stock options to purchase 84,600 and 111,600 shares of common stock at exercise prices less than the average market prices has been included in the computations of diluted earnings per share for the quarter ended September 30, 2014 and 2013, respectively. |
Note_5_Cash_Dividend
Note 5 - Cash Dividend | 9 Months Ended |
Sep. 30, 2014 | |
Cash Dividend [Abstract] | ' |
Cash Dividend [Text Block] | ' |
5. CASH DIVIDEND | |
On June 9, 2014, our Board of Directors authorized a $0.25 per share special one-time cash dividend to be paid to stockholders of record at the close of business on July 7, 2014. The cash dividend, totaling $2.5 million, was paid to stockholders on August 8, 2014. 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. |
Note_6_Commitments_and_Conting
Note 6 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
6. COMMITMENTS AND CONTINGENCIES | |
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 States 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 matters that arise in the ordinary course of our business and operations. There are no such matters pending that we expect will 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_7_Segment_Information
Note 7 - Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
7. 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; and | ||||||||||||||||
c. | International Leathercraft, which sells to both wholesale and retail customers. We have three stores operating in this segment: one in Northampton, United Kingdom, one in Sydney, Australia, and one in Jerez, Spain. 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 | Retail | Int’l | Total | ||||||||||||||
Leathercraft | Leathercraft | Leathercraft | |||||||||||||||
For the quarter ended September 30, 2014 | |||||||||||||||||
Net sales | $ | 6,294,745 | $ | 12,068,832 | $ | 1,053,657 | $ | 19,417,234 | |||||||||
Gross profit | 4,283,949 | 7,167,486 | 723,274 | 12,174,709 | |||||||||||||
Operating earnings | 1,000,329 | 1,270,884 | 185,714 | 2,456,927 | |||||||||||||
Interest expense | (63,684 | ) | - | - | (63,684 | ) | |||||||||||
Other income (expense), net | 19,556 | - | 17,969 | 37,525 | |||||||||||||
Income before income taxes | 956,201 | 1,270,884 | 203,683 | 2,430,768 | |||||||||||||
Depreciation and amortization | 241,264 | 114,516 | 17,058 | 372,838 | |||||||||||||
Fixed asset additions | 489,660 | 279,829 | 893 | 770,382 | |||||||||||||
Total assets | $ | 44,943,519 | $ | 16,439,542 | $ | 2,578,444 | $ | 63,961,505 | |||||||||
For the quarter ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 6,476,676 | $ | 11,128,646 | $ | 919,282 | $ | 18,524,604 | |||||||||
Gross profit | 4,358,097 | 6,752,739 | 590,107 | 11,700,943 | |||||||||||||
Operating earnings | 956,721 | 1,351,062 | 97,570 | 2,405,353 | |||||||||||||
Interest expense | (51,021 | ) | - | - | (51,021 | ) | |||||||||||
Other income (expense), net | 33,372 | - | (19,595 | ) | 13,777 | ||||||||||||
Income before income taxes | 939,072 | 1,351,062 | 77,975 | 2,368,109 | |||||||||||||
Depreciation and amortization | 241,864 | 71,496 | 13,325 | 326,685 | |||||||||||||
Fixed asset additions | 290,087 | 162,697 | - | 452,784 | |||||||||||||
Total assets | $ | 40,445,814 | $ | 11,150,004 | $ | 2,589,503 | $ | 54,185,321 | |||||||||
Wholesale | Retail | Int’l | Total | ||||||||||||||
Leathercraft | Leathercraft | Leathercraft | |||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
Net sales | $ | 19,576,180 | $ | 36,226,810 | $ | 3,156,317 | $ | 58,959,307 | |||||||||
Gross profit | 13,588,209 | 21,973,975 | 2,107,854 | 37,670,038 | |||||||||||||
Operating earnings | 3,479,908 | 4,171,500 | 428,459 | 8,079,867 | |||||||||||||
Interest expense | (154,367 | ) | - | - | (154,367 | ) | |||||||||||
Other income (expense), net | 44,730 | - | (527 | ) | 44,203 | ||||||||||||
Income before income taxes | 3,370,271 | 4,171,500 | 427,932 | 7,969,703 | |||||||||||||
Depreciation and amortization | 705,902 | 332,276 | 50,580 | 1,088,758 | |||||||||||||
Fixed asset additions | 886,718 | 781,795 | 50,951 | 1,719,464 | |||||||||||||
Total assets | $ | 44,943,519 | $ | 16,439,542 | $ | 2,578,444 | $ | 63,961,505 | |||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 19,934,996 | $ | 33,930,587 | $ | 2,869,861 | $ | 56,735,444 | |||||||||
Gross profit | 13,171,368 | 20,584,324 | 1,796,201 | 35,551,893 | |||||||||||||
Operating earnings | 2,853,219 | 4,243,006 | 276,052 | 7,372,277 | |||||||||||||
Interest expense | (158,659 | ) | - | - | (158,659 | ) | |||||||||||
Other income (expense), net | 108,077 | 26 | 30,697 | 138,800 | |||||||||||||
Income before income taxes | 2,802,637 | 4,243,032 | 306,749 | 7,352,418 | |||||||||||||
Depreciation and amortization | 655,022 | 193,118 | 41,255 | 889,395 | |||||||||||||
Fixed asset additions | 1,858,985 | 554,831 | 1,668 | 2,415,484 | |||||||||||||
Total assets | $ | 40,445,814 | $ | 11,150,004 | $ | 2,589,503 | $ | 54,185,321 | |||||||||
Net sales for geographic areas were as follows for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||
Three months ended September 30, | 2014 | 2013 | |||||||||||||||
United States | $ | 16,219,193 | $ | 15,466,317 | |||||||||||||
Canada | 1,908,966 | 1,889,696 | |||||||||||||||
All other countries | 1,289,075 | 1,168,591 | |||||||||||||||
$ | 19,417,234 | $ | 18,524,604 | ||||||||||||||
Nine months ended September 30, | 2014 | 2013 | |||||||||||||||
United States | $ | 49,298,035 | $ | 47,404,281 | |||||||||||||
Canada | 5,835,776 | 5,728,405 | |||||||||||||||
All other countries | 3,825,496 | 3,602,758 | |||||||||||||||
$ | 58,959,307 | $ | 56,735,444 | ||||||||||||||
Geographic sales information is based on the location of the customer. No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three or nine-month periods ended September 30, 2014 and 2013. We do not have any significant long-lived assets outside of the United States. |
Note_8_Subsequent_Event_Store_
Note 8 - Subsequent Event - Store Closing | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
8. SUBSEQUENT EVENT – STORE CLOSING | |
On October 31, 2014, we closed our Chattanooga, Tennessee store, which is part of our Wholesale Leathercraft segment. We anticipate incurring expenses associated with the store closing in the fourth quarter totaling less than $10,000, which will be included in operating expenses. |
Note_1_Basis_of_Presentation_a1
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Inventory on hand: | |||||||||||||||||||||||||
Finished goods held for sale | $ | 36,593,039 | $ | 24,546,771 | |||||||||||||||||||||
Raw materials and work in process | 1,196,573 | 853,200 | |||||||||||||||||||||||
Inventory in transit | 1,575,592 | 900,859 | |||||||||||||||||||||||
$ | 39,365,204 | $ | 26,300,830 | ||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||||||||||
Balance, December 31, 2012 | $ | 607,319 | $ | 383,406 | $ | 990,725 | |||||||||||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||||||||||
Foreign exchange gain/loss | (4,572 | ) | - | (4,572 | ) | ||||||||||||||||||||
Impairments | - | - | - | ||||||||||||||||||||||
Balance, September 30, 2013 | $ | 602,747 | $ | 383,406 | $ | 986,153 | |||||||||||||||||||
Leather Factory | Tandy Leather | Total | |||||||||||||||||||||||
Balance, December 31, 2013 | $ | 598,579 | $ | 383,406 | $ | 981,985 | |||||||||||||||||||
Acquisitions and adjustments | - | - | - | ||||||||||||||||||||||
Foreign exchange gain/loss | (6,328 | ) | - | (6,328 | ) | ||||||||||||||||||||
Impairments | - | - | - | ||||||||||||||||||||||
Balance, September 30, 2014 | $ | 592,251 | $ | 383,406 | $ | 975,657 | |||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Trademarks, Copyrights | $ | 544,369 | $ | 510,815 | $ | 33,554 | $ | 544,369 | $ | 487,891 | $ | 56,478 | |||||||||||||
Non-Compete Agreements | 179,768 | 144,018 | 35,750 | 181,216 | 134,466 | 46,750 | |||||||||||||||||||
$ | 724,137 | $ | 654,833 | $ | 69,304 | $ | 725,585 | $ | 622,357 | $ | 103,228 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||||||
Wholesale Leathercraft | Retail Leathercraft | Total | |||||||||||||||||||||||
2014 | $ | 198 | $ | 45,004 | $ | 45,202 | |||||||||||||||||||
2015 | 108 | $ | 40,302 | $ | 40,410 | ||||||||||||||||||||
2016 | 108 | 5,667 | 5,775 | ||||||||||||||||||||||
2017 | 90 | 1,000 | 1,090 | ||||||||||||||||||||||
2018 | - | 750 | 750 |
Note_2_Notes_Payable_and_LongT1
Note 2 - Notes Payable and Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
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 | $ | 2,193,750 | $ | 2,598,750 | |||||
Line of Credit Note with JPMorgan Chase Bank – collateralized by real estate; payable as follows: | |||||||||
Line of Credit Note dated July 12, 2012, as amended on June 23, 2014, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 2%; matures June 30, 2015 | $ | 6,000,000 | - | ||||||
8,193,750 | 2,598,750 | ||||||||
Less - Current maturities | (6,202,500 | ) | (202,500 | ) | |||||
$ | 1,991,250 | $ | 2,396,250 |
Note_3_StockBased_Compensation1
Note 3 - Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Weighted Average Exercise | # of shares | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||||||
Price | |||||||||||||||||
Outstanding, January 1, 2013 | $ | 4.53 | 121,600 | ||||||||||||||
Granted | 6.87 | 12,000 | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.23 | (49,000 | ) | ||||||||||||||
Outstanding, September 30, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Exercisable, September 30, 2013 | $ | 5.04 | 84,600 | 7.22 | $ | 104,656 | |||||||||||
Outstanding, January 1, 2014 | $ | 5.04 | 84,600 | ||||||||||||||
Granted | - | - | |||||||||||||||
Cancelled | - | - | |||||||||||||||
Exercised | 4.32 | (12,200 | ) | ||||||||||||||
Outstanding, September 30, 2014 | $ | 5.78 | 72,400 | 6.42 | $ | 89,840 | |||||||||||
Exercisable, September 30, 2014 | $ | 5.78 | 72,400 | 6.42 | $ | 89,840 | |||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | ||||||||||||||||
30-Sep-14 | 30-Sep-13 | ||||||||||||||||
Weighted average grant-date fair value of stock options granted | N/A | $ | 0.97 | ||||||||||||||
Total fair value of stock options vested | N/A | $ | 11,686 | ||||||||||||||
Total intrinsic value of stock options exercised | $ | 14,816 | $ | 113,790 | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Volatility | N/A | 19.1 | % | ||||||||||||||
Expected option life (in years) | N/A | 3 | |||||||||||||||
Interest rate (risk free) | N/A | 0.8 | % | ||||||||||||||
Dividends | None | None | |||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||||||
Shares | Grant Fair Value | ||||||||||||||||
Balance, January 1, 2014 | - | - | |||||||||||||||
Granted | 34,601 | $ | 8.96 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Vested | - | - | |||||||||||||||
Balance, September 30, 2014 | 34,601 | $ | 8.96 |
Note_4_Earnings_Per_Share_Tabl
Note 4 - Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Numerator: | ||||||||||||||||||
Net income | $ | 1,628,562 | $ | 1,561,832 | $ | 5,248,459 | $ | 4,777,506 | ||||||||||
Numerator for basic and diluted earnings per share | 1,628,562 | 1,561,832 | 5,248,459 | 4,777,506 | ||||||||||||||
Denominator: | ||||||||||||||||||
Weighted-average shares outstanding-basic | 10,203,711 | 10,176,744 | 10,200,411 | 10,163,490 | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||
Stock options | 36,294 | 44,768 | 38,133 | 41,858 | ||||||||||||||
Restricted stock | 1,405 | - | 1,565 | |||||||||||||||
Dilutive potential common shares | 37,699 | 44,768 | 39,698 | 41,858 | ||||||||||||||
Denominator for diluted earnings per share-weighted-average shares | 10,241,410 | 10,221,512 | 10,240,109 | 10,205,348 | ||||||||||||||
Basic earnings per share | $ | 0.16 | $ | 0.15 | $ | 0.51 | $ | 0.47 | ||||||||||
Diluted earnings per share | $ | 0.16 | $ | 0.15 | $ | 0.51 | $ | 0.47 |
Note_7_Segment_Information_Tab
Note 7 - Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Wholesale | Retail | Int’l | Total | ||||||||||||||
Leathercraft | Leathercraft | Leathercraft | |||||||||||||||
For the quarter ended September 30, 2014 | |||||||||||||||||
Net sales | $ | 6,294,745 | $ | 12,068,832 | $ | 1,053,657 | $ | 19,417,234 | |||||||||
Gross profit | 4,283,949 | 7,167,486 | 723,274 | 12,174,709 | |||||||||||||
Operating earnings | 1,000,329 | 1,270,884 | 185,714 | 2,456,927 | |||||||||||||
Interest expense | (63,684 | ) | - | - | (63,684 | ) | |||||||||||
Other income (expense), net | 19,556 | - | 17,969 | 37,525 | |||||||||||||
Income before income taxes | 956,201 | 1,270,884 | 203,683 | 2,430,768 | |||||||||||||
Depreciation and amortization | 241,264 | 114,516 | 17,058 | 372,838 | |||||||||||||
Fixed asset additions | 489,660 | 279,829 | 893 | 770,382 | |||||||||||||
Total assets | $ | 44,943,519 | $ | 16,439,542 | $ | 2,578,444 | $ | 63,961,505 | |||||||||
For the quarter ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 6,476,676 | $ | 11,128,646 | $ | 919,282 | $ | 18,524,604 | |||||||||
Gross profit | 4,358,097 | 6,752,739 | 590,107 | 11,700,943 | |||||||||||||
Operating earnings | 956,721 | 1,351,062 | 97,570 | 2,405,353 | |||||||||||||
Interest expense | (51,021 | ) | - | - | (51,021 | ) | |||||||||||
Other income (expense), net | 33,372 | - | (19,595 | ) | 13,777 | ||||||||||||
Income before income taxes | 939,072 | 1,351,062 | 77,975 | 2,368,109 | |||||||||||||
Depreciation and amortization | 241,864 | 71,496 | 13,325 | 326,685 | |||||||||||||
Fixed asset additions | 290,087 | 162,697 | - | 452,784 | |||||||||||||
Total assets | $ | 40,445,814 | $ | 11,150,004 | $ | 2,589,503 | $ | 54,185,321 | |||||||||
Wholesale | Retail | Int’l | Total | ||||||||||||||
Leathercraft | Leathercraft | Leathercraft | |||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||
Net sales | $ | 19,576,180 | $ | 36,226,810 | $ | 3,156,317 | $ | 58,959,307 | |||||||||
Gross profit | 13,588,209 | 21,973,975 | 2,107,854 | 37,670,038 | |||||||||||||
Operating earnings | 3,479,908 | 4,171,500 | 428,459 | 8,079,867 | |||||||||||||
Interest expense | (154,367 | ) | - | - | (154,367 | ) | |||||||||||
Other income (expense), net | 44,730 | - | (527 | ) | 44,203 | ||||||||||||
Income before income taxes | 3,370,271 | 4,171,500 | 427,932 | 7,969,703 | |||||||||||||
Depreciation and amortization | 705,902 | 332,276 | 50,580 | 1,088,758 | |||||||||||||
Fixed asset additions | 886,718 | 781,795 | 50,951 | 1,719,464 | |||||||||||||
Total assets | $ | 44,943,519 | $ | 16,439,542 | $ | 2,578,444 | $ | 63,961,505 | |||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
Net sales | $ | 19,934,996 | $ | 33,930,587 | $ | 2,869,861 | $ | 56,735,444 | |||||||||
Gross profit | 13,171,368 | 20,584,324 | 1,796,201 | 35,551,893 | |||||||||||||
Operating earnings | 2,853,219 | 4,243,006 | 276,052 | 7,372,277 | |||||||||||||
Interest expense | (158,659 | ) | - | - | (158,659 | ) | |||||||||||
Other income (expense), net | 108,077 | 26 | 30,697 | 138,800 | |||||||||||||
Income before income taxes | 2,802,637 | 4,243,032 | 306,749 | 7,352,418 | |||||||||||||
Depreciation and amortization | 655,022 | 193,118 | 41,255 | 889,395 | |||||||||||||
Fixed asset additions | 1,858,985 | 554,831 | 1,668 | 2,415,484 | |||||||||||||
Total assets | $ | 40,445,814 | $ | 11,150,004 | $ | 2,589,503 | $ | 54,185,321 | |||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||||||
Three months ended September 30, | 2014 | 2013 | |||||||||||||||
United States | $ | 16,219,193 | $ | 15,466,317 | |||||||||||||
Canada | 1,908,966 | 1,889,696 | |||||||||||||||
All other countries | 1,289,075 | 1,168,591 | |||||||||||||||
$ | 19,417,234 | $ | 18,524,604 | ||||||||||||||
Nine months ended September 30, | 2014 | 2013 | |||||||||||||||
United States | $ | 49,298,035 | $ | 47,404,281 | |||||||||||||
Canada | 5,835,776 | 5,728,405 | |||||||||||||||
All other countries | 3,825,496 | 3,602,758 | |||||||||||||||
$ | 58,959,307 | $ | 56,735,444 |
Note_1_Basis_of_Presentation_a2
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' | ' |
Amortization of Intangible Assets | $33,924 | $30,890 |
Property, Plant and Equipment, Useful Life | '5 years | ' |
Note_1_Basis_of_Presentation_a3
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Components of Inventory (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Inventory on hand: | ' | ' |
Finished goods held for sale | $36,593,039 | $24,546,771 |
Raw materials and work in process | 1,196,573 | 853,200 |
Inventory in transit | 1,575,592 | 900,859 |
$39,365,204 | $26,300,830 |
Note_1_Basis_of_Presentation_a4
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Summary of Changes in Goodwill (USD $) | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Leather Factory [Member] | Leather Factory [Member] | Tandy Leather [Member] | Tandy Leather [Member] | Tandy Leather [Member] | Tandy Leather [Member] | |||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, | $981,985 | $990,725 | $598,579 | $607,319 | $383,406 | $383,406 | $383,406 | $383,406 |
Foreign exchange gain/loss | -6,328 | -4,572 | -6,328 | -4,572 | ' | ' | ' | ' |
Balance, | $975,657 | $986,153 | $592,251 | $602,747 | $383,406 | $383,406 | $383,406 | $383,406 |
Note_1_Basis_of_Presentation_a5
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Other Intangibles (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | $724,137 | $725,585 |
Accumulated Amortization | 655,000 | 622,000 |
Net | 69,304 | 103,228 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 544,369 | 544,369 |
Accumulated Amortization | 510,815 | 487,891 |
Net | 33,554 | 56,478 |
Noncompete Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 179,768 | 181,216 |
Accumulated Amortization | 144,018 | 134,466 |
Net | $35,750 | $46,750 |
Note_1_Basis_of_Presentation_a6
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Summary of Amortization Expense. (USD $) | Jun. 30, 2014 |
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Summary of Amortization Expense. [Line Items] | ' |
2014 | $45,202 |
2015 | 40,410 |
2016 | 5,775 |
2017 | 1,090 |
2018 | 750 |
Wholesale Leathercraft [Member] | ' |
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Summary of Amortization Expense. [Line Items] | ' |
2014 | 198 |
2015 | 108 |
2016 | 108 |
2017 | 90 |
Retail Leathercraft [Member] | ' |
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) - Summary of Amortization Expense. [Line Items] | ' |
2014 | 45,004 |
2015 | 40,302 |
2016 | 5,667 |
2017 | 1,000 |
2018 | $750 |
Note_2_Notes_Payable_and_LongT2
Note 2 - Notes Payable and Long-Term Debt (Details) (USD $) | Jul. 31, 2007 | Jul. 31, 2007 | Jul. 31, 2007 | Apr. 30, 2008 | Jul. 31, 2007 | Jul. 12, 2012 | Sep. 30, 2014 | Jun. 23, 2014 | Jun. 23, 2014 | Jul. 12, 2012 |
Building [Member] | Land [Member] | Term Note [Member] | Term Note [Member] | Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | |
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Maximum [Member] | |||
sqft | acre | |||||||||
Note 2 - Notes Payable and Long-Term Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | $5,500,000 | ' | ' | $4,000,000 | $6,000,000 | $4,000,000 |
Area of Real Estate Property | 191,000 | 30 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility Maximum Borrowing Capacity Percentage of Property | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' |
Proceeds from Bank Debt | ' | ' | ' | ' | $4,050,000 | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 7.10% | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | 2.00% | 2.24% | ' | ' | ' |
Note_2_Notes_Payable_and_LongT3
Note 2 - Notes Payable and Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Credit Agreement with JPMorgan Chase Bank b collateralized by real estate; payable as follows: | ' | ' |
$8,193,750 | $2,598,750 | |
Less - Current maturities | -6,202,500 | -202,500 |
1,991,250 | 2,396,250 | |
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | ' | ' |
Credit Agreement with JPMorgan Chase Bank b collateralized by real estate; payable as follows: | ' | ' |
Line of credit note | 2,193,750 | 2,598,750 |
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ' | ' |
Credit Agreement with JPMorgan Chase Bank b collateralized by real estate; payable as follows: | ' | ' |
Line of credit note | $6,000,000 | ' |
Note_2_Notes_Payable_and_LongT4
Note 2 - Notes Payable and Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note (Parentheticals) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | ' | ' |
Note 2 - Notes Payable and Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note (Parentheticals) [Line Items] | ' | ' |
Line of Credit Note term | '10 years | '10 years |
Line of Credit Note monthly principal payments | $16,875 | $16,875 |
Line of Credit Note interest | 7.10% | 7.10% |
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' |
Note 2 - Notes Payable and Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note (Parentheticals) [Line Items] | ' | ' |
Line of Credit Note,Interest Rate at LIBOR | 2.00% | ' |
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ' | ' |
Note 2 - Notes Payable and Long-Term Debt (Details) - Summary of Credit Agreement and Line of Credit Note (Parentheticals) [Line Items] | ' | ' |
Line of Credit Note, Principal Amount | $6,000,000 | ' |
Note_3_StockBased_Compensation2
Note 3 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Maximum [Member] | Director [Member] | Director [Member] | ||||
Minimum [Member] | Director [Member] | Executive Officers, Non-employee Directors and Other Key Employees [Member] | Executive Officers, Non-employee Directors and Other Key Employees [Member] | 1995 Stock Option Plans [Member] | |||||||||
Note 3 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | 34,601 | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Allocated Share-based Compensation Expense | $0 | ' | $11,686 | $0 | ' | ' | ' | ' | $19,376 | $48,441 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | ' | ' | ' | 1,619 | 9,375 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | '4 years | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | ' | ' | ' | ' | $261,584 | $261,584 | ' | ' | ' |
Note_3_StockBased_Compensation3
Note 3 - Stock-Based Compensation (Details) - Summary of Stock Option Activity (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of Stock Option Activity [Abstract] | ' | ' |
Weighted Average Exercise Price | $5.04 | $4.53 |
# of shares | 84,600 | 121,600 |
Weighted Average Exercise Price | ' | $6.87 |
# of shares | 34,601 | 12,000 |
Weighted Average Exercise Price | $4.32 | $4.23 |
# of shares | -12,200 | -49,000 |
Weighted Average Exercise Price | $5.78 | $5.04 |
# of shares | 72,400 | 84,600 |
Weighted Average Remaining Contractual Term (in years) | '6 years 153 days | '7 years 80 days |
Aggregate Intrinsic Value | $89,840 | $104,656 |
Weighted Average Exercise Price | $5.78 | $5.04 |
# of shares | 72,400 | 84,600 |
Weighted Average Remaining Contractual Term (in years) | '6 years 153 days | '7 years 80 days |
Aggregate Intrinsic Value | $89,840 | $104,656 |
Note_3_StockBased_Compensation4
Note 3 - Stock-Based Compensation (Details) - Other Information Pertaining to Option Activity (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Other Information Pertaining to Option Activity [Abstract] | ' | ' |
Weighted average grant-date fair value of stock options granted (in Dollars per share) | ' | $0.97 |
Total fair value of stock options vested | ' | $11,686 |
Total intrinsic value of stock options exercised | $14,816 | $113,790 |
Note_3_StockBased_Compensation5
Note 3 - Stock-Based Compensation (Details) - Fair Value of Options | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value of Options [Abstract] | ' | ' |
Volatility | ' | 19.10% |
Expected option life (in years) | ' | '3 years |
Interest rate (risk free) | ' | 0.80% |
Dividends | 0.00% | 0.00% |
Note_3_StockBased_Compensation6
Note 3 - Stock-Based Compensation (Details) - Activity for Nonvested Restricted Common Stock Awards (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Activity for Nonvested Restricted Common Stock Awards [Abstract] | ' | ' |
Balance, January 1, 2014 | 0 | ' |
Balance, January 1, 2014 | $0 | ' |
Granted | 34,601 | 12,000 |
Granted | $8.96 | ' |
Forfeited | 0 | ' |
Forfeited | $0 | ' |
Vested | 0 | ' |
Vested | $0 | ' |
Balance, September 30, 2014 | 34,601 | ' |
Balance, September 30, 2014 | $8.96 | ' |
Note_4_Earnings_Per_Share_Deta
Note 4 - Earnings Per Share (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 84,600 | 111,600 |
Note_4_Earnings_Per_Share_Deta1
Note 4 - Earnings Per Share (Details) - Computation of Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Numerator: | ' | ' | ' | ' |
Net income (in Dollars) | $1,628,562 | $1,561,832 | $5,248,459 | $4,777,506 |
Numerator for basic and diluted earnings per share (in Dollars) | $1,628,562 | $1,561,832 | $5,248,459 | $4,777,506 |
Denominator: | ' | ' | ' | ' |
Weighted-average shares outstanding-basic | 10,203,711 | 10,176,744 | 10,200,411 | 10,163,490 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options | 84,600 | 111,600 | ' | ' |
Restricted stock | 1,405 | ' | 1,565 | ' |
Dilutive potential common shares | 37,699 | 44,768 | 39,698 | 41,858 |
Denominator for diluted earnings per share-weighted-average shares | 10,241,410 | 10,221,512 | 10,240,109 | 10,205,348 |
Basic earnings per share (in Dollars per share) | $0.16 | $0.15 | $0.51 | $0.47 |
Diluted earnings per share (in Dollars per share) | $0.16 | $0.15 | $0.51 | $0.47 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options | 36,294 | 44,768 | 38,133 | 41,858 |
Note_5_Cash_Dividend_Details
Note 5 - Cash Dividend (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Aug. 08, 2014 | Jun. 09, 2014 | Sep. 30, 2014 | |
Cash Dividend [Abstract] | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | ' | $0.25 | ' |
Payments of Ordinary Dividends, Common Stock | $2,500,000 | ' | $2,549,684 |
Note_6_Commitments_and_Conting1
Note 6 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' | ' | ' | ' |
Litigation Settlement, Amount | $993,386 | ' | ' | ' |
Loss Contingency, Escrow Deposit | 993,386 | ' | ' | ' |
Litigation Settlement, Expense | ' | ' | ' | 993,386 |
Loss Contingency, Benefit | ' | ' | 312,000 | ' |
Litigation Settlement Payroll Taxes | ' | 63,000 | ' | ' |
Scenario, Forecast [Member] | ' | ' | ' | ' |
Note 6 - Commitments and Contingencies (Details) [Line Items] | ' | ' | ' | ' |
Payments for Legal Settlements | 744,273 | ' | ' | ' |
Loss Contingency, Escrow Account Balance | $249,000 | ' | ' | ' |
Note_7_Segment_Information_Det
Note 7 - Segment Information (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Note 7 - Segment Information (Details) [Line Items] | ' |
Number of Operating Segments | 3 |
International Leathercraft [Member] | ' |
Note 7 - Segment Information (Details) [Line Items] | ' |
Number of Stores | 3 |
Northampton United Kingdom [Member] | ' |
Note 7 - Segment Information (Details) [Line Items] | ' |
Number of Stores | 1 |
Sydney Australia [Member] | ' |
Note 7 - Segment Information (Details) [Line Items] | ' |
Number of Stores | 1 |
Jerez Spain [Member] | ' |
Note 7 - Segment Information (Details) [Line Items] | ' |
Number of Stores | 1 |
Note_7_Segment_Information_Det1
Note 7 - Segment Information (Details) - Summary of Reportable Operating Segments (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | $19,417,234 | $18,524,604 | $58,959,307 | $56,735,444 | ' |
Gross profit | 12,174,709 | 11,700,943 | 37,670,038 | 35,551,893 | ' |
Operating earnings | 2,456,927 | 2,405,353 | 8,079,867 | 7,372,277 | ' |
Interest (expense) | -63,684 | -51,021 | -154,367 | -158,659 | ' |
Other income (expense), net | 37,525 | 13,777 | 44,203 | 138,800 | ' |
Income before income taxes | 2,430,768 | 2,368,109 | 7,969,703 | 7,352,418 | ' |
Depreciation and amortization | 372,838 | 326,685 | 1,088,758 | 889,395 | ' |
Fixed asset additions | 770,382 | 452,784 | 1,719,464 | 2,415,484 | ' |
Total assets | 63,961,505 | 54,185,321 | 63,961,505 | 54,185,321 | 56,398,566 |
Wholesale Leathercraft [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 6,294,745 | 6,476,676 | 19,576,180 | 19,934,996 | ' |
Gross profit | 4,283,949 | 4,358,097 | 13,588,209 | 13,171,368 | ' |
Operating earnings | 1,000,329 | 956,721 | 3,479,908 | 2,853,219 | ' |
Interest (expense) | -63,684 | -51,021 | -154,367 | -158,659 | ' |
Other income (expense), net | 19,556 | 33,372 | 44,730 | 108,077 | ' |
Income before income taxes | 956,201 | 939,072 | 3,370,271 | 2,802,637 | ' |
Depreciation and amortization | 241,264 | 241,864 | 705,902 | 655,022 | ' |
Fixed asset additions | 489,660 | 290,087 | 886,718 | 1,858,985 | ' |
Total assets | 44,943,519 | 40,445,814 | 44,943,519 | 40,445,814 | ' |
Retail Leathercraft [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 12,068,832 | 11,128,646 | 36,226,810 | 33,930,587 | ' |
Gross profit | 7,167,486 | 6,752,739 | 21,973,975 | 20,584,324 | ' |
Operating earnings | 1,270,884 | 1,351,062 | 4,171,500 | 4,243,006 | ' |
Other income (expense), net | ' | ' | ' | 26 | ' |
Income before income taxes | 1,270,884 | 1,351,062 | 4,171,500 | 4,243,032 | ' |
Depreciation and amortization | 114,516 | 71,496 | 332,276 | 193,118 | ' |
Fixed asset additions | 279,829 | 162,697 | 781,795 | 554,831 | ' |
Total assets | 16,439,542 | 11,150,004 | 16,439,542 | 11,150,004 | ' |
Intbl Leathercraft [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 1,053,657 | 919,282 | 3,156,317 | 2,869,861 | ' |
Gross profit | 723,274 | 590,107 | 2,107,854 | 1,796,201 | ' |
Operating earnings | 185,714 | 97,570 | 428,459 | 276,052 | ' |
Other income (expense), net | 17,969 | -19,595 | -527 | 30,697 | ' |
Income before income taxes | 203,683 | 77,975 | 427,932 | 306,749 | ' |
Depreciation and amortization | 17,058 | 13,325 | 50,580 | 41,255 | ' |
Fixed asset additions | 893 | ' | 50,951 | 1,668 | ' |
Total assets | $2,578,444 | $2,589,503 | $2,578,444 | $2,589,503 | ' |
Note_7_Segment_Information_Det2
Note 7 - Segment Information (Details) - Net Sales for Geographic Areas (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Geographical | $19,417,234 | $18,524,604 | $58,959,307 | $56,735,444 |
UNITED STATES | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Geographical | 16,219,193 | 15,466,317 | 49,298,035 | 47,404,281 |
CANADA | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Geographical | 1,908,966 | 1,889,696 | 5,835,776 | 5,728,405 |
All Other Countries [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Geographical | $1,289,075 | $1,168,591 | $3,825,496 | $3,602,758 |
Note_8_Subsequent_Event_Store_1
Note 8 - Subsequent Event - Store Closing (Details) (Subsequent Event [Member], Wholesale Leathercraft [Member], Store Closing [Member], Chattanooga, Tennessee Store [Member], USD $) | 0 Months Ended |
Oct. 31, 2014 | |
Subsequent Event [Member] | Wholesale Leathercraft [Member] | Store Closing [Member] | Chattanooga, Tennessee Store [Member] | ' |
Note 8 - Subsequent Event - Store Closing (Details) [Line Items] | ' |
Disposal Group, Including Discontinued Operation, Other Expense | $10,000 |