Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 10, 2015 | |
Entity Registrant Name | TANDY LEATHER FACTORY INC | |
Entity Central Index Key | 909,724 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,282,018 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash | $ 10,867,362 | $ 10,636,530 |
Accounts receivable-trade, net of allowance for doubtful accounts of $2,060 and $395 in 2015 and 2014, respectively | 758,894 | 625,054 |
Inventory | 32,810,251 | 32,875,492 |
Prepaid income taxes | 623,815 | 336,828 |
Deferred income taxes | 312,943 | 371,491 |
Prepaid expenses | 1,347,391 | 1,348,652 |
Other current assets | 121,055 | 157,758 |
Total current assets | 46,841,711 | 46,351,805 |
PROPERTY AND EQUIPMENT, at cost | 23,042,912 | 22,199,943 |
Less accumulated depreciation and amortization | (7,641,889) | (7,037,665) |
15,401,023 | 15,162,278 | |
GOODWILL | 963,769 | 971,786 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $686,000 and $665,000 in 2015 and 2014, respectively | 35,470 | 58,026 |
OTHER assets | 327,993 | 329,979 |
TOTAL ASSETS | 63,569,966 | 62,873,874 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 1,679,012 | 1,255,218 |
Accrued expenses and other liabilities | 6,661,964 | 5,394,514 |
Current maturities of long-term debt | 202,500 | 3,702,500 |
Total current liabilities | 8,543,476 | 10,352,232 |
DEFERRED INCOME TAXES | 1,408,192 | 1,458,005 |
LONG-TERM DEBT, net of current maturities | $ 1,631,813 | 1,940,625 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.0024 par value; 25,000,000 shares authorized; 11,275,641 and 11,239,157 shares issued at 2015 and 2014, respectively; 10,282,018 and 10,245,534 shares outstanding at 2015 and 2014, respectively | $ 27,062 | 26,984 |
Paid-in capital | 6,090,984 | 6,013,325 |
Retained earnings | 49,617,132 | 46,664,829 |
Treasury stock at cost (993,623 shares at 2015 and 2014) | (2,894,068) | (2,894,068) |
Accumulated other comprehensive income | (854,625) | (688,058) |
Total stockholders’ equity | 51,986,485 | 49,123,012 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 63,569,966 | $ 62,873,874 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts receivable-trade, net allowance for doubtful accounts | $ 2,060 | $ 395 |
OTHER INTANGIBLES, accumulated amortization | $ 685,947 | $ 665,225 |
Preferred stock par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 11,275,641 | 11,239,157 |
Common stock, shares outstanding (in shares) | 10,282,018 | 10,245,534 |
Treasury stock shares (in shares) | 993,623 | 993,623 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
NET SALES | $ 19,773,528 | $ 19,703,607 | $ 40,562,292 | $ 39,542,073 |
COST OF SALES | 6,959,147 | 6,924,001 | 15,164,983 | 14,046,744 |
Gross profit | 12,814,381 | 12,779,606 | 25,397,309 | 25,495,329 |
OPERATING EXPENSES | 10,480,539 | 10,123,329 | 20,674,586 | 19,872,389 |
INCOME FROM OPERATIONS | 2,333,842 | 2,656,277 | 4,722,723 | 5,622,940 |
OTHER INCOME (EXPENSE): | ||||
Interest expense | (34,762) | (44,855) | (78,925) | (90,683) |
Other, net | 9,877 | 5,334 | 29,750 | 6,678 |
Total other income (expense) | (24,885) | (39,521) | (49,175) | (84,005) |
INCOME BEFORE INCOME TAXES | 2,308,957 | 2,616,756 | 4,673,548 | 5,538,935 |
PROVISION FOR INCOME TAXES | 801,061 | 851,271 | 1,721,245 | 1,919,038 |
NET INCOME | $ 1,507,896 | $ 1,765,485 | $ 2,952,303 | $ 3,619,897 |
NET INCOME PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.15 | $ 0.17 | $ 0.29 | $ 0.35 |
Diluted (in dollars per share) | $ 0.15 | $ 0.17 | $ 0.29 | $ 0.35 |
Weighted Average Number of Shares Outstanding: | ||||
Basic (in shares) | 10,212,933 | 10,198,733 | 10,212,137 | 10,198,733 |
Diluted (in shares) | 10,241,164 | 10,239,823 | 10,241,130 | 10,239,447 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 1,507,896 | $ 1,765,485 | $ 2,952,303 | $ 3,619,897 |
Translation adjustment | 477,889 | 220,023 | (166,567) | 90,615 |
COMPREHENSIVE INCOME | $ 1,985,785 | $ 1,985,508 | $ 2,785,736 | $ 3,710,512 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,952,303 | $ 3,619,897 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 809,456 | 715,920 |
(Gain) loss on disposal or abandonment of assets | 25,204 | (1,409) |
Non-cash stock-based compensation | 77,737 | 29,065 |
Deferred income taxes | 8,735 | (143,413) |
Foreign currency translation | (121,909) | 84,854 |
Net changes in assets and liabilities: | ||
Accounts receivable-trade, net | (133,840) | (33,701) |
Inventory | 65,241 | (9,700,760) |
Prepaid expenses | 1,261 | 331,773 |
Other current assets | 36,703 | 128,361 |
Accounts payable-trade | 423,794 | 171,275 |
Accrued expenses and other liabilities | 1,267,450 | 888,235 |
Income taxes payable | (286,987) | (740,505) |
Total adjustments | 2,172,845 | (8,270,305) |
Net cash provided by (used in) operating activities | 5,125,148 | (4,650,408) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (1,088,231) | (949,082) |
Proceeds from sale of assets | 741 | 18,736 |
Decrease in other assets | 1,986 | 4,984 |
Net cash used in investing activities | $ (1,085,504) | (925,362) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in revolving credit loans | 2,250,000 | |
Payments on notes payable and long-term debt | $ (3,808,812) | (354,375) |
Net cash provided by (used in) financing activities | (3,808,812) | 1,895,625 |
NET CHANGE IN CASH | 230,832 | (3,680,145) |
CASH, beginning of period | 10,636,530 | 11,082,679 |
CASH, end of period | 10,867,362 | 7,402,534 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid during the period | 78,925 | 90,683 |
Income tax paid during the period, net of (refunds) | $ 2,003,680 | 2,567,257 |
NON-CASH INVESTING ACTIVITIES: | ||
Accrued dividend | $ 2,549,684 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
BALANCE, beginning (in shares) at Dec. 31, 2013 | 10,198,733 | |||||
BALANCE, beginning at Dec. 31, 2013 | $ 26,862 | $ 5,892,907 | $ (2,894,068) | $ 41,507,592 | $ 88,249 | $ 44,621,542 |
Stock-based compensation (in shares) | 34,601 | |||||
Stock-based compensation | $ 83 | 28,982 | 29,065 | |||
Net income | 3,619,897 | 3,619,897 | ||||
Dividend payable | (2,549,684) | (2,549,684) | ||||
Translation adjustment | 90,615 | 90,615 | ||||
BALANCE, ending (in shares) at Jun. 30, 2014 | 10,233,334 | |||||
BALANCE, ending at Jun. 30, 2014 | $ 26,945 | 5,921,889 | (2,894,068) | 42,577,805 | 178,864 | 45,811,435 |
BALANCE, beginning (in shares) at Dec. 31, 2014 | 10,245,534 | |||||
BALANCE, beginning at Dec. 31, 2014 | $ 26,984 | 6,013,325 | (2,894,068) | 46,664,829 | (688,058) | 49,123,012 |
Stock-based compensation (in shares) | 34,484 | |||||
Stock-based compensation | $ 73 | 67,744 | 67,817 | |||
Net income | 2,952,303 | 2,952,303 | ||||
Translation adjustment | (166,567) | (166,567) | ||||
BALANCE, ending (in shares) at Jun. 30, 2015 | 10,282,018 | |||||
BALANCE, ending at Jun. 30, 2015 | $ 27,062 | 6,090,984 | $ (2,894,068) | $ 49,617,132 | $ (854,625) | $ 51,986,485 |
Shares issued – stock option exercise (in shares) | 2,000 | 2,000 | ||||
Shares issued – stock option exercise | $ 5 | $ 9,915 | $ 9,920 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Certain Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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 June 30, 2015 and December 31, 2014, and its results of operations and cash flows for the three and six-month periods ended June 30, 2015 and 2014. Operating results for the three and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014. 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 . The components of inventory consist of the following: As of June 30, 2015 December 31, 2014 Inventory on hand: Finished goods held for sale $ 29,266,013 $ 31,257,820 Raw materials and work in process 976,228 1,118,506 Inventory in transit 2,568,010 499,166 $ 32,810,251 $ 32,875,492 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, 2014, 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 six months of 2015. A summary of changes in our goodwill for the periods ended June 30, 2015 and 2014 is as follows: Leather Factory Tandy Leather Total Balance, December 31, 2013 $ 598,579 $ 383,406 $ 981,985 Acquisitions and adjustments - - - Foreign exchange gain/loss (458 ) - (458 ) Impairments - - - Balance, June 30, 2014 $ 598,121 $ 383,406 $ 981,527 Leather Factory Tandy Leather Total Balance, December 31, 2014 $ 588,380 $ 383,406 $ 971,786 Acquisitions and adjustments - - - Foreign exchange gain/loss (8,017 ) - (8,017 ) Impairments - - - Balance, June 30, 2015 $ 580,363 $ 383,406 $ 963,769 Other intangibles consist of the following: As of June 30, 2015 As of December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 544,369 $ 533,649 $ 10,720 $ 544,369 $ 518,426 $ 25,943 Non-Compete Agreements 177,048 152,298 24,750 178,882 146,799 32,083 $ 721,417 $ 685,947 $ 35,470 $ 723,251 $ 665,225 $ 58,026 We recorded amortization expense of $22,556 during the first six months of 2015 compared to $22,646 during the first half of 2014. 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 2015 $ 55 $ 17,800 $ 17,855 2016 108 5,667 5,775 2017 90 1,000 1,090 2018 - 750 750 2019 - - - Revenue Recognition . 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). Recent Account ing Pronouncements. 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. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, which amends ASC Topic 606, Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, Compensation–Stock Compensation In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items |
Note 2 - Notes Payable and Long
Note 2 - Notes Payable and Long-term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. N OTES 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% (2.18% at June 30, 2015) 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. On July 6, 2015, we executed a Note Modification Agreement extending the maturity date from June 30, 2015 to September 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 June 30, 2015 and December 31, 2014, the amount outstanding under the above agreements consisted of the following: June 30, 20 15 December 31, 2 014 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 $ 1,834,313 $ 2,143,125 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 September 30, 2015 - 3,500,000 1,834,313 5,643,125 Less - Current maturities (202,500 ) (3,702,500 ) $ 1,631,813 $ 1,940,625 |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 3. STOCK-BASED COMPENSATI ON 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. 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. Under this plan, no options were awarded to directors during the six months ended June 30, 2015 and 2014 and therefore, no share based compensation expense was recorded for those periods. During the six months ended June 30, 2015 and 2014, the stock option activity under our stock option plans was as follows: Weighted Average Exercise Price # of shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, January 1, 2014 $ 5.04 84,600 Granted - - Cancelled - - Exercised - - Outstanding, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Exercisable, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Outstanding, January 1, 2015 $ 5.16 72,400 Granted - - Cancelled - - Exercised (4.96 ) (2,000 ) Outstanding, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 Exercisable, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 Other information pertaining to option activity during the six-month periods ended June 30, 2015 and 2014 are as follows: June 30, 201 5 June 30, 201 4 Weighted average grant-date fair value of stock options granted N/A N/A Total fair value of stock options vested N/A N/A Total intrinsic value of stock options exercised $ 2,953 N/A There was no unrecognized compensation cost pertaining to stock option grants as of June 30, 2015 and 2014. 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, unless otherwise determined by the committee that administers the plan. 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 non-vested 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. In February 2015, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,343 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,613 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested 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 non-vested restricted common stock awards as of June 30, 2015 and 2014 is presented below: Shares Award Fair Value Balance, January 1, 2014 - - Granted 34,601 $ 8.96 Forfeited - - Vested - - Unvested Balance, June 30, 2014 34,601 $ 8.96 Balance, January 1, 2015 34,601 $ 8.96 Granted 34,484 $ 8.99 Forfeited Vested (8,652 ) $ 8.96 Unvested Balance, June 30, 2015 60,433 $ 8.97 Total unrecognized compensation expense for the non-vested restricted stock awards as of June 30, 2015 and 2014 totals $484,401 and $280,960, respectively, and is expected to be recognized in equal annual amounts over a period of four years as follows: 2015 Award 2014 Award Total 2015 $ 38,751 $ 38,753 $ 77,504 2016 $ 77,503 $ 77,506 $ 155,009 2017 $ 77,503 $ 77,506 $ 155,009 2018 $ 77,503 $ 9,688 $ 87,191 2019 $ 9,688 - $ 9,688 $ 280,948 $ 203,453 $ 484,401 |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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 six months ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income $ 1,507,896 $ 1,765,485 $ 2,952,303 $ 3,619,897 Numerator for basic and diluted earnings per share 1,507,896 1,765,485 2,952,303 3,619,897 Denominator: Weighted-average shares outstanding-basic 10,212,933 10,198,733 10,212,137 10,198,733 Effect of dilutive securities: Stock options 28,231 39,376 28,993 39,067 Restricted stock - 1,714 - 1,647 Dilutive potential common shares 28,231 41,090 28,993 40,714 Denominator for diluted earnings per share- weighted-average shares 10,241,164 10,239,823 10,241,130 10,239,447 Basic earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 Diluted earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 The net effect of converting stock options and warrants to purchase 130,833 and 119,201 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 quarters ended June 30, 2015 and 2014, respectively. |
Note 5 - Cash Dividend
Note 5 - Cash Dividend | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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 Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. COMMITMENTS AND CONTINGENCIES Legal Proceedings. 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, 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) 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. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. SEGMENT INFORMATION We identify our segments based on the activities of three distinct operations: a. Wholesale Leathercraft, The Leather Factory b. Retail Leathercraft, Tandy Leather Company c. International Leathercraft 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 Int’l Leathercraft Total For the quarter ended June 30, 201 5 Net sales $ 6,394,278 $ 12,532,411 $ 846,839 $ 19,773,528 Gross profit 4,726,907 7,548,859 538,615 12,814,381 Operating earnings 968,552 1,336,669 28,621 2,333,842 Interest (expense) (34,762 ) - - (34,762 ) Other income (expense), net 25,769 - (15,892 ) 9,877 Income before income taxes 959,559 1,336,669 12,729 2,308,957 Depreciation and amortization 274,536 137,735 13,249 425,520 Fixed asset additions 164,540 226,777 19,470 410,787 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the quarter ended June 30 , 20 14 Net sales $ 6,457,467 $ 12,201,624 $ 1,044,516 $ 19,703,607 Gross profit 4,774,051 7,308,073 697,482 12,779,606 Operating earnings 1,106,942 1,427,913 121,422 2,656,277 Interest (expense) (44,855 ) - - (44,855 ) Other income (expense), net 15,398 - (10,064 ) 5,334 Income before income taxes 1,077,485 1,427,913 111,358 2,616,756 Depreciation and amortization 238,783 113,319 17,263 369,365 Fixed asset additions 160,847 145,768 1,185 307,800 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the six months ended June 30, 201 5 Net sales $ 13,119,582 $ 25,641,824 $ 1,800,886 $ 40,562,292 Gross profit 8,896,542 15,394,625 1,106,142 25,397,309 Operating earnings 1,920,407 2,740,121 62,195 4,722,723 Interest (expense) (78,925 ) - - (78,925 ) Other income (expense), net 37,162 - (7,412 ) 29,750 Income before income taxes 1,878,644 2,740,121 54,783 4,673,548 Depreciation and amortization 514,254 270,597 24,605 809,456 Fixed asset additions 584,446 484,315 19,470 1,088,231 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the six months ended June 30, 201 4 Net sales $ 13,281,435 $ 24,157,978 $ 2,102,660 $ 39,542,073 Gross profit 9,304,260 14,806,489 1,384,580 25,495,329 Operating earnings 2,479,579 2,900,616 242,745 5,622,940 Interest expense (90,683 ) - - (90,683 ) Other income (expense), net 25,174 - (18,496 ) 6,678 Income before income taxes 2,414,070 2,900,616 224,249 5,538,935 Depreciation and amortization 464,639 217,760 33,521 715,920 Fixed asset additions 397,057 501,967 50,058 949,082 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 Net sales for geographic areas were as follows for the three and six months ended June 30, 2015 and 2014: Three months ended June 30, 20 15 20 14 United States $ 16,836,732 $ 16,432,956 Canada 1,852,181 2,030,752 All other countries 1,084,615 1,239,899 $ 19,773,528 $ 19,703,607 Six months ended June 30, 20 15 20 14 United States $ 34,585,363 $ 33,078,842 Canada 3,738,766 3,926,810 All other countries 2,238,163 2,536,421 $ 40,562,292 $ 39,542,073 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 and six-month periods ended June 30, 2015 and 2014. We do not have any significant long-lived assets outside of the United States. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 June 30, 2015 and December 31, 2014, and its results of operations and cash flows for the three and six-month periods ended June 30, 2015 and 2014. Operating results for the three and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014. 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, Policy [Policy Text Block] | Inventory . The components of inventory consist of the following: As of June 30, 2015 December 31, 2014 Inventory on hand: Finished goods held for sale $ 29,266,013 $ 31,257,820 Raw materials and work in process 976,228 1,118,506 Inventory in transit 2,568,010 499,166 $ 32,810,251 $ 32,875,492 |
Goodwill and Intangible Assets, 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. 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, 2014, 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 six months of 2015. A summary of changes in our goodwill for the periods ended June 30, 2015 and 2014 is as follows: Leather Factory Tandy Leather Total Balance, December 31, 2013 $ 598,579 $ 383,406 $ 981,985 Acquisitions and adjustments - - - Foreign exchange gain/loss (458 ) - (458 ) Impairments - - - Balance, June 30, 2014 $ 598,121 $ 383,406 $ 981,527 Leather Factory Tandy Leather Total Balance, December 31, 2014 $ 588,380 $ 383,406 $ 971,786 Acquisitions and adjustments - - - Foreign exchange gain/loss (8,017 ) - (8,017 ) Impairments - - - Balance, June 30, 2015 $ 580,363 $ 383,406 $ 963,769 Other intangibles consist of the following: As of June 30, 2015 As of December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 544,369 $ 533,649 $ 10,720 $ 544,369 $ 518,426 $ 25,943 Non-Compete Agreements 177,048 152,298 24,750 178,882 146,799 32,083 $ 721,417 $ 685,947 $ 35,470 $ 723,251 $ 665,225 $ 58,026 We recorded amortization expense of $22,556 during the first six months of 2015 compared to $22,646 during the first half of 2014. 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 2015 $ 55 $ 17,800 $ 17,855 2016 108 5,667 5,775 2017 90 1,000 1,090 2018 - 750 750 2019 - - - |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition . 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, Policy [Policy Text Block] | Comprehensive Income (loss) and Accumulated Other Comprehensive Income (loss). |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Account ing Pronouncements. 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. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, which amends ASC Topic 606, Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, Compensation–Stock Compensation In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items |
Note 1 - Basis of Presentatio16
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | As of June 30, 2015 December 31, 2014 Inventory on hand: Finished goods held for sale $ 29,266,013 $ 31,257,820 Raw materials and work in process 976,228 1,118,506 Inventory in transit 2,568,010 499,166 $ 32,810,251 $ 32,875,492 |
Schedule of Goodwill [Table Text Block] | Leather Factory Tandy Leather Total Balance, December 31, 2013 $ 598,579 $ 383,406 $ 981,985 Acquisitions and adjustments - - - Foreign exchange gain/loss (458 ) - (458 ) Impairments - - - Balance, June 30, 2014 $ 598,121 $ 383,406 $ 981,527 Leather Factory Tandy Leather Total Balance, December 31, 2014 $ 588,380 $ 383,406 $ 971,786 Acquisitions and adjustments - - - Foreign exchange gain/loss (8,017 ) - (8,017 ) Impairments - - - Balance, June 30, 2015 $ 580,363 $ 383,406 $ 963,769 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of June 30, 2015 As of December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 544,369 $ 533,649 $ 10,720 $ 544,369 $ 518,426 $ 25,943 Non-Compete Agreements 177,048 152,298 24,750 178,882 146,799 32,083 $ 721,417 $ 685,947 $ 35,470 $ 723,251 $ 665,225 $ 58,026 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Wholesale Leathercraft Retail Leathercraft Total 2015 $ 55 $ 17,800 $ 17,855 2016 108 5,667 5,775 2017 90 1,000 1,090 2018 - 750 750 2019 - - - |
Note 2 - Notes Payable and Lo17
Note 2 - Notes Payable and Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 20 15 December 31, 2 014 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 $ 1,834,313 $ 2,143,125 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 September 30, 2015 - 3,500,000 1,834,313 5,643,125 Less - Current maturities (202,500 ) (3,702,500 ) $ 1,631,813 $ 1,940,625 |
Note 3 - Stock-based Compensa18
Note 3 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price # of shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, January 1, 2014 $ 5.04 84,600 Granted - - Cancelled - - Exercised - - Outstanding, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Exercisable, June 30, 2014 $ 5.04 84,600 6.47 $ 104,656 Outstanding, January 1, 2015 $ 5.16 72,400 Granted - - Cancelled - - Exercised (4.96 ) (2,000 ) Outstanding, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 Exercisable, June 30, 2015 $ 5.17 70,400 5.83 $ 86,886 |
Schedule of Share-based Compensation, Activity [Table Text Block] | June 30, 201 5 June 30, 201 4 Weighted average grant-date fair value of stock options granted N/A N/A Total fair value of stock options vested N/A N/A Total intrinsic value of stock options exercised $ 2,953 N/A |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Award Fair Value Balance, January 1, 2014 - - Granted 34,601 $ 8.96 Forfeited - - Vested - - Unvested Balance, June 30, 2014 34,601 $ 8.96 Balance, January 1, 2015 34,601 $ 8.96 Granted 34,484 $ 8.99 Forfeited Vested (8,652 ) $ 8.96 Unvested Balance, June 30, 2015 60,433 $ 8.97 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | 2015 Award 2014 Award Total 2015 $ 38,751 $ 38,753 $ 77,504 2016 $ 77,503 $ 77,506 $ 155,009 2017 $ 77,503 $ 77,506 $ 155,009 2018 $ 77,503 $ 9,688 $ 87,191 2019 $ 9,688 - $ 9,688 $ 280,948 $ 203,453 $ 484,401 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income $ 1,507,896 $ 1,765,485 $ 2,952,303 $ 3,619,897 Numerator for basic and diluted earnings per share 1,507,896 1,765,485 2,952,303 3,619,897 Denominator: Weighted-average shares outstanding-basic 10,212,933 10,198,733 10,212,137 10,198,733 Effect of dilutive securities: Stock options 28,231 39,376 28,993 39,067 Restricted stock - 1,714 - 1,647 Dilutive potential common shares 28,231 41,090 28,993 40,714 Denominator for diluted earnings per share- weighted-average shares 10,241,164 10,239,823 10,241,130 10,239,447 Basic earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 Diluted earnings per share $ 0.15 $ 0.17 $ 0.29 $ 0.35 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the quarter ended June 30, 201 5 Net sales $ 6,394,278 $ 12,532,411 $ 846,839 $ 19,773,528 Gross profit 4,726,907 7,548,859 538,615 12,814,381 Operating earnings 968,552 1,336,669 28,621 2,333,842 Interest (expense) (34,762 ) - - (34,762 ) Other income (expense), net 25,769 - (15,892 ) 9,877 Income before income taxes 959,559 1,336,669 12,729 2,308,957 Depreciation and amortization 274,536 137,735 13,249 425,520 Fixed asset additions 164,540 226,777 19,470 410,787 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the quarter ended June 30 , 20 14 Net sales $ 6,457,467 $ 12,201,624 $ 1,044,516 $ 19,703,607 Gross profit 4,774,051 7,308,073 697,482 12,779,606 Operating earnings 1,106,942 1,427,913 121,422 2,656,277 Interest (expense) (44,855 ) - - (44,855 ) Other income (expense), net 15,398 - (10,064 ) 5,334 Income before income taxes 1,077,485 1,427,913 111,358 2,616,756 Depreciation and amortization 238,783 113,319 17,263 369,365 Fixed asset additions 160,847 145,768 1,185 307,800 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 Wholesale Leathercraft Retail Leathercraft Int’l Leathercraft Total For the six months ended June 30, 201 5 Net sales $ 13,119,582 $ 25,641,824 $ 1,800,886 $ 40,562,292 Gross profit 8,896,542 15,394,625 1,106,142 25,397,309 Operating earnings 1,920,407 2,740,121 62,195 4,722,723 Interest (expense) (78,925 ) - - (78,925 ) Other income (expense), net 37,162 - (7,412 ) 29,750 Income before income taxes 1,878,644 2,740,121 54,783 4,673,548 Depreciation and amortization 514,254 270,597 24,605 809,456 Fixed asset additions 584,446 484,315 19,470 1,088,231 Total assets $ 38,507,395 $ 20,875,591 $ 4,186,980 $ 63,569,966 For the six months ended June 30, 201 4 Net sales $ 13,281,435 $ 24,157,978 $ 2,102,660 $ 39,542,073 Gross profit 9,304,260 14,806,489 1,384,580 25,495,329 Operating earnings 2,479,579 2,900,616 242,745 5,622,940 Interest expense (90,683 ) - - (90,683 ) Other income (expense), net 25,174 - (18,496 ) 6,678 Income before income taxes 2,414,070 2,900,616 224,249 5,538,935 Depreciation and amortization 464,639 217,760 33,521 715,920 Fixed asset additions 397,057 501,967 50,058 949,082 Total assets $ 45,455,609 $ 14,967,724 $ 2,314,779 $ 62,738,112 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three months ended June 30, 20 15 20 14 United States $ 16,836,732 $ 16,432,956 Canada 1,852,181 2,030,752 All other countries 1,084,615 1,239,899 $ 19,773,528 $ 19,703,607 Six months ended June 30, 20 15 20 14 United States $ 34,585,363 $ 33,078,842 Canada 3,738,766 3,926,810 All other countries 2,238,163 2,536,421 $ 40,562,292 $ 39,542,073 |
Note 1 - Basis of Presentatio21
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Amortization of Intangible Assets | $ 22,556 | $ 22,646 |
Note 1 - Basis of Presentatio22
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Components of Inventory (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory on hand: | ||
Finished goods held for sale | $ 29,266,013 | $ 31,257,820 |
Raw materials and work in process | 976,228 | 1,118,506 |
Inventory in transit | 2,568,010 | 499,166 |
$ 32,810,251 | $ 32,875,492 |
Note 1 - Basis of Presentatio23
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Summary of Changes in Goodwill (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Leather Factory [Member] | ||
Balance, December 31, 2013 | $ 588,380 | $ 598,579 |
Foreign exchange gain/loss | (8,017) | (458) |
Balance, June 30, 2014 | 580,363 | 598,121 |
Tandy Leather [Member] | ||
Balance, December 31, 2013 | $ 383,406 | $ 383,406 |
Foreign exchange gain/loss | ||
Balance, June 30, 2014 | $ 383,406 | $ 383,406 |
Balance, December 31, 2013 | 971,786 | 981,985 |
Foreign exchange gain/loss | (8,017) | (458) |
Balance, June 30, 2014 | $ 963,769 | $ 981,527 |
Note 1 - Basis of Presentatio24
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Intangible Assets (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Trademarks and Copyrights [Member] | ||
Other intangibles, gross | $ 544,369 | $ 544,369 |
Accumulated Amortization | 533,649 | 518,426 |
Other intangibles, net | 10,720 | 25,943 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 177,048 | 178,882 |
Accumulated Amortization | 152,298 | 146,799 |
Other intangibles, net | 24,750 | 32,083 |
Other intangibles, gross | 721,417 | 723,251 |
Accumulated Amortization | 685,947 | 665,225 |
Other intangibles, net | $ 35,470 | $ 58,026 |
Note 1 - Basis of Presentatio25
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Estimated Amortization Expense (Details) | Jun. 30, 2015USD ($) |
Wholesale Leathercraft [Member] | |
2,015 | $ 55 |
2,016 | 108 |
2,017 | $ 90 |
2,018 | |
2,019 | |
Retail Leathercraft [Member] | |
2,015 | $ 17,800 |
2,016 | 5,667 |
2,017 | 1,000 |
2,018 | $ 750 |
2,019 | |
2,015 | $ 17,855 |
2,016 | 5,775 |
2,017 | 1,090 |
2,018 | $ 750 |
2,019 |
Note 2 - Notes Payable and Lo26
Note 2 - Notes Payable and Long-term Debt (Details Textual) | Jul. 12, 2012USD ($) | Apr. 30, 2008 | Jul. 31, 2007USD ($)aft² | Jun. 30, 2015 | Jun. 23, 2014USD ($) | Jun. 22, 2014USD ($) |
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Building [Member] | ||||||
Area of Real Estate Property | ft² | 191,000 | |||||
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Land [Member] | ||||||
Area of Real Estate Property | a | 30 | |||||
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | Term Note [Member] | ||||||
Debt Instrument, Term | 10 years | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | |||||
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,500,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Property | 90.00% | |||||
Proceeds from Bank Debt | $ 4,050,000 | |||||
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.18% | ||||
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | $ 6,000,000 | $ 4,000,000 |
Note 2 - Notes Payable and Lo27
Note 2 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | ||
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 | $ 1,834,313 | $ 2,143,125 |
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ||
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 | 3,500,000 | |
$ 1,834,313 | 5,643,125 | |
Less - Current maturities | (202,500) | (3,702,500) |
LONG-TERM DEBT, net of current maturities | $ 1,631,813 | $ 1,940,625 |
Note 2 - Notes Payable and Lo28
Note 2 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Credit Agreement with JPMorgan Chase Bank, N.A. [Member] | ||
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] | ||
Line of Credit Note, Interest at LIBOR | 2.00% | 2.00% |
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ||
Line of Credit Note, Principal Amount | $ 6,000,000 | $ 6,000,000 |
Note 3 - Stock-based Compensa29
Note 3 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restricted Stock Plan [Member] | Restricted Stock [Member] | Chief Financial Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,343 | 9,375 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Senior Vice President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,343 | 9,375 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 2 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,613 | 1,619 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 3 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,613 | 1,619 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 4 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,613 | 1,619 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Executive Officers, Non-employee Directors and Other Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | 4 years | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,343 | 9,375 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | Independent Director 1 Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,613 | 1,619 | ||
Restricted Stock Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
2007 Director Non-Qualified Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 34,484 | 34,601 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 484,401 | $ 280,960 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 484,401 | $ 280,960 | ||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 0 | 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0 | $ 0 |
Note 3 - Stock-based Compensa30
Note 3 - Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.17 | $ 5.04 | $ 5.16 | $ 5.04 |
Outstanding, Number of Shares (in shares) | 72,400 | 84,600 | ||
Outstanding, Number of Shares (in shares) | 70,400 | 84,600 | ||
Outstanding, Weighted Average Remaining Contractual Term | 5 years 302 days | 6 years 171 days | ||
Outstanding, Aggregate Intrinsic Value | $ 86,886 | $ 104,656 | ||
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 5.17 | $ 5.04 | ||
Exercisable, Number of Shares (in shares) | 70,400 | 84,600 | ||
Exercisable, Weighted Average Remaining Contractual Term | 5 years 302 days | 6 years 171 days | ||
Exercisable, Aggregate Intrinsic Value | $ 86,886 | $ 104,656 | ||
Exercised, Weighted Average Exercise Price (in dollars per share) | $ (4.96) | |||
Exercised (in shares) | (2,000) |
Note 3 - Stock-based Compensa31
Note 3 - Stock-based Compensation - Other Information Pertaining to Option Activity (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Total intrinsic value of stock options exercised | $ 2,953 |
Note 3 - Stock-based Compensa32
Note 3 - Stock-based Compensation - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Balance, January 1, 2014 (in shares) | 34,601 | 0 |
Balance, January 1, 2014 (in dollars per share) | $ 8.96 | $ 0 |
Granted (in shares) | 34,484 | 34,601 |
Granted (in dollars per share) | $ 8.99 | $ 8.96 |
Unvested Balance, June 30, 2014 (in shares) | 60,433 | 34,601 |
Unvested Balance, June 30, 2014 (in dollars per share) | $ 8.97 | $ 8.96 |
Vested (in shares) | (8,652) | |
Vested (in dollars per share) | $ 8.96 |
Note 3 - Stock-based Compensa33
Note 3 - Stock-based Compensation - Unrecognized Compensation Expense for Non-vested Restricted Stock Awards (Details) - USD ($) | Jun. 30, 2015 |
2015 [Member] | Restricted Stock [Member] | |
2,015 | $ 38,751 |
2,016 | 77,503 |
2,017 | 77,503 |
2,018 | 77,503 |
2,019 | 9,688 |
280,948 | |
2014 [Member] | Restricted Stock [Member] | |
2,015 | 38,753 |
2,016 | 77,506 |
2,017 | 77,506 |
2,018 | $ 9,688 |
2,019 | |
$ 203,453 | |
Restricted Stock [Member] | |
2,015 | 77,504 |
2,016 | 155,009 |
2,017 | 155,009 |
2,018 | 87,191 |
2,019 | 9,688 |
484,401 | |
$ 0 |
Note 4 - Earnings Per Share (De
Note 4 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 130,833 | 119,201 |
Note 4 - Earnings Per Share - C
Note 4 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Option [Member] | ||||
Effect of dilutive securities: | ||||
Stock options (in shares) | 28,231 | 39,376 | 28,993 | 39,067 |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Stock options (in shares) | 1,714 | 1,647 | ||
Net income | $ 1,507,896 | $ 1,765,485 | $ 2,952,303 | $ 3,619,897 |
Numerator for basic and diluted earnings per share | $ 1,507,896 | $ 1,765,485 | $ 2,952,303 | $ 3,619,897 |
Basic (in shares) | 10,212,933 | 10,198,733 | 10,212,137 | 10,198,733 |
Stock options (in shares) | 28,231 | 41,090 | 28,993 | 40,714 |
Diluted (in shares) | 10,241,164 | 10,239,823 | 10,241,130 | 10,239,447 |
Basic earnings per share (in dollars per share) | $ 0.15 | $ 0.17 | $ 0.29 | $ 0.35 |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.17 | $ 0.29 | $ 0.35 |
Note 5 - Cash Dividend (Details
Note 5 - Cash Dividend (Details Textual) - USD ($) | Jun. 09, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.25 | ||
Dividends Payable | $ 2,500,000 | $ 2,549,684 |
Note 6 - Commitments and Cont37
Note 6 - Commitments and Contingencies (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended |
Sep. 24, 2012 | Mar. 31, 2014 | |
Litigation Settlement, Amount | $ 993,386 | |
Payments for Legal Settlements | $ 744,273 | |
Loss Contingency Escrow Deposit | 993,386 | |
Loss Contingency Escrow Account Balance | $ 249,000 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) - Jun. 30, 2015 | Total |
International Leathercraft [Member] | Northampton United Kingdom [Member] | |
Number of Stores | 1 |
International Leathercraft [Member] | Sydney Australia [Member] | |
Number of Stores | 1 |
International Leathercraft [Member] | Jerez Spain [Member] | |
Number of Stores | 1 |
International Leathercraft [Member] | |
Number of Stores | 3 |
Number of Operating Segments | 3 |
Note 7 - Segment Information -
Note 7 - Segment Information - Summary of Reportable Operating Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Wholesale Leathercraft [Member] | ||||
Net sales | $ 6,394,278 | $ 6,457,467 | $ 13,119,582 | $ 13,281,435 |
Gross profit | 4,726,907 | 4,774,051 | 8,896,542 | 9,304,260 |
Operating earnings | 968,552 | 1,106,942 | 1,920,407 | 2,479,579 |
Interest (expense) | (34,762) | (44,855) | (78,925) | (90,683) |
Other income (expense), net | 25,769 | 15,398 | 37,162 | 25,174 |
Income before income taxes | 959,559 | 1,077,485 | 1,878,644 | 2,414,070 |
Depreciation and amortization | 274,536 | 238,783 | 514,254 | 464,639 |
Fixed asset additions | 164,540 | 160,847 | 584,446 | 397,057 |
Total assets | 38,507,395 | 45,455,609 | 38,507,395 | 45,455,609 |
Retail Leathercraft [Member] | ||||
Net sales | 12,532,411 | 12,201,624 | 25,641,824 | 24,157,978 |
Gross profit | 7,548,859 | 7,308,073 | 15,394,625 | 14,806,489 |
Operating earnings | $ 1,336,669 | $ 1,427,913 | $ 2,740,121 | $ 2,900,616 |
Interest (expense) | ||||
Other income (expense), net | ||||
Income before income taxes | $ 1,336,669 | $ 1,427,913 | $ 2,740,121 | $ 2,900,616 |
Depreciation and amortization | 137,735 | 113,319 | 270,597 | 217,760 |
Fixed asset additions | 226,777 | 145,768 | 484,315 | 501,967 |
Total assets | 20,875,591 | 14,967,724 | 20,875,591 | 14,967,724 |
International Leathercraft [Member] | ||||
Net sales | 846,839 | 1,044,516 | 1,800,886 | 2,102,660 |
Gross profit | 538,615 | 697,482 | 1,106,142 | 1,384,580 |
Operating earnings | $ 28,621 | $ 121,422 | $ 62,195 | $ 242,745 |
Interest (expense) | ||||
Other income (expense), net | $ (15,892) | $ (10,064) | $ (7,412) | $ (18,496) |
Income before income taxes | 12,729 | 111,358 | 54,783 | 224,249 |
Depreciation and amortization | 13,249 | 17,263 | 24,605 | 33,521 |
Fixed asset additions | 19,470 | 1,185 | 19,470 | 50,058 |
Total assets | 4,186,980 | 2,314,779 | 4,186,980 | 2,314,779 |
Net sales | 19,773,528 | 19,703,607 | 40,562,292 | 39,542,073 |
Gross profit | 12,814,381 | 12,779,606 | 25,397,309 | 25,495,329 |
Operating earnings | 2,333,842 | 2,656,277 | 4,722,723 | 5,622,940 |
Interest (expense) | (34,762) | (44,855) | (78,925) | (90,683) |
Other income (expense), net | 9,877 | 5,334 | 29,750 | 6,678 |
Income before income taxes | 2,308,957 | 2,616,756 | 4,673,548 | 5,538,935 |
Depreciation and amortization | 425,520 | 369,365 | 809,456 | 715,920 |
Fixed asset additions | 410,787 | 307,800 | 1,088,231 | 949,082 |
Total assets | $ 63,569,966 | $ 62,738,112 | $ 63,569,966 | $ 62,738,112 |
Note 7 - Segment Information 40
Note 7 - Segment Information - Net Sales for Geographic Areas (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
UNITED STATES | ||||
United States | $ 16,836,732 | $ 16,432,956 | $ 34,585,363 | $ 33,078,842 |
CANADA | ||||
United States | 1,852,181 | 2,030,752 | 3,738,766 | 3,926,810 |
All Other Countries [Member] | ||||
United States | 1,084,615 | 1,239,899 | 2,238,163 | 2,536,421 |
United States | $ 19,773,528 | $ 19,703,607 | $ 40,562,292 | $ 39,542,073 |