Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 10, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | TANDY LEATHER FACTORY INC | |
Entity Central Index Key | 909,724 | |
Trading Symbol | tlf | |
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) | 9,266,496 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash | $ 9,839,204 | $ 10,962,615 |
Accounts receivable-trade, net of allowance for doubtful accounts of $0 and $1,746 in 2016 and 2015, respectively | 551,824 | 553,206 |
Inventory | 36,304,595 | 33,584,539 |
Prepaid income taxes | 765,605 | 549,277 |
Deferred income taxes | 350,706 | 326,830 |
Prepaid expenses | 1,623,858 | 1,514,887 |
Other current assets | 132,985 | 70,197 |
Total current assets | 49,568,777 | 47,561,551 |
PROPERTY AND EQUIPMENT, at cost | 24,764,249 | 23,992,208 |
Less accumulated depreciation and amortization | (9,026,139) | (8,297,155) |
15,738,110 | 15,695,053 | |
GOODWILL | 959,868 | 953,356 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $707,000 and $702,000 in 2016 and 2015, respectively | 22,228 | 27,282 |
OTHER assets | 329,332 | 329,684 |
TOTAL ASSETS | 66,618,315 | 64,566,926 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 1,393,513 | 1,983,376 |
Accrued expenses and other liabilities | 4,979,495 | 6,045,552 |
Current maturities of capital lease obligations | 72,686 | 72,686 |
Current maturities of long-term debt | 1,382,199 | 231,952 |
Total current liabilities | 7,827,893 | 8,333,566 |
DEFERRED INCOME TAXES | 1,721,715 | 1,702,515 |
LONG-TERM DEBT, net of current maturities | 5,989,530 | 3,479,273 |
CAPITAL LEASE OBLIGATIONS, net of current maturities | 72,688 | 79,396 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.10 par value; 20,000,000 shares authorized; none issued or outstanding; attributes to be determined on issuance | ||
Common stock, $0.0024 par value; 25,000,000 shares authorized; 11,309,326 and 11,275,641 shares issued at 2016 and 2015, respectively; 9,266,496 and 9,753,293 shares outstanding at 2016 and 2015, respectively | 27,142 | 27,062 |
Paid-in capital | 6,281,711 | 6,168,489 |
Retained earnings | 56,409,146 | 53,067,234 |
Treasury stock at cost (2,042,830 and 1,522,348 shares at 2016 and 2015, respectively) | (10,278,584) | (6,602,930) |
Accumulated other comprehensive income | (1,432,926) | (1,687,679) |
Total stockholders’ equity | 51,006,489 | 50,972,176 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 66,618,315 | $ 64,566,926 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable-trade, net allowance for doubtful accounts | $ 0 | $ 1,746 |
Accumulated amortization | $ 706,806 | $ 701,752 |
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, issued (in shares) | 0 | 0 |
Preferred stock, 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) | 11,309,326 | 11,275,641 |
Common stock, shares outstanding (in shares) | 9,266,496 | 9,753,293 |
Treasury stock, shares (in shares) | 2,042,830 | 1,522,348 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
NET SALES | $ 19,522,905 | $ 19,773,528 | $ 40,195,132 | $ 40,562,292 |
COST OF SALES | 6,627,115 | 6,959,147 | 14,646,596 | 15,164,983 |
Gross profit | 12,895,790 | 12,814,381 | 25,548,536 | 25,397,309 |
OPERATING EXPENSES | 10,056,899 | 10,480,539 | 20,346,855 | 20,674,586 |
INCOME FROM OPERATIONS | 2,838,891 | 2,333,842 | 5,201,681 | 4,722,723 |
OTHER INCOME (EXPENSE): | ||||
Interest expense | (42,027) | (34,762) | (65,456) | (78,925) |
Other, net | 23,434 | 9,877 | 23,395 | 29,750 |
Total other income (expense) | (18,593) | (24,885) | (42,061) | (49,175) |
INCOME BEFORE INCOME TAXES | 2,820,298 | 2,308,957 | 5,159,620 | 4,673,548 |
PROVISION FOR INCOME TAXES | 999,383 | 801,061 | 1,817,708 | 1,721,245 |
NET INCOME | $ 1,820,915 | $ 1,507,896 | $ 3,341,912 | $ 2,952,303 |
NET INCOME PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.35 | $ 0.29 |
Diluted (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.35 | $ 0.29 |
Weighted Average Number of Shares Outstanding: | ||||
Basic (in shares) | 9,209,446 | 10,212,933 | 9,418,645 | 10,212,137 |
Diluted (in shares) | 9,227,941 | 10,241,164 | 9,437,620 | 10,241,130 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 1,820,915 | $ 1,507,896 | $ 3,341,912 | $ 2,952,303 |
Translation adjustment | (382,762) | 477,889 | 254,753 | (166,567) |
COMPREHENSIVE INCOME | $ 1,438,153 | $ 1,985,785 | $ 3,596,565 | $ 2,785,736 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,341,912 | $ 2,952,303 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 831,793 | 809,456 |
(Gain) / loss on disposal or abandonment of assets | (6,560) | 25,204 |
Non-cash stock-based compensation | 113,302 | 77,737 |
Deferred income taxes | (4,676) | 8,735 |
Foreign currency translation | 256,309 | (121,909) |
Net changes in assets and liabilities: | ||
Accounts receivable-trade, net | 1,382 | (133,840) |
Inventory | (2,720,056) | 65,241 |
Prepaid expenses | (108,971) | 1,261 |
Other current assets | (62,788) | 36,703 |
Accounts payable-trade | (589,863) | 423,794 |
Accrued expenses and other liabilities | (1,066,056) | 1,267,450 |
Income taxes payable | (216,328) | (286,987) |
Total adjustments | (3,572,512) | 2,172,845 |
Net cash (used in) provided by operating activities | (230,600) | 5,125,148 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (898,007) | (1,088,231) |
Proceeds from sale of assets | 26,703 | 741 |
Decrease in other assets | 352 | 1,986 |
Net cash used in investing activities | (870,952) | (1,085,504) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and long term debt | 3,660,505 | |
Payments on notes payable and long-term debt | (3,808,812) | |
Payments on capital lease obligations | (6,710) | |
Repurchase of common stock (treasury stock) | (3,675,654) | |
Net cash used in financing activities | (21,859) | (3,808,812) |
NET INCREASE (DECREASE) IN CASH | (1,123,411) | 230,832 |
CASH, beginning of period | 10,962,615 | 10,636,530 |
CASH, end of period | 9,839,204 | 10,867,362 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid during the period | 65,456 | 78,925 |
Income tax paid during the period, net of (refunds) | $ 2,034,036 | $ 2,003,680 |
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 (in shares) at Dec. 31, 2014 | 10,245,534 | |||||
BALANCE at Dec. 31, 2014 | $ 26,984 | $ 6,013,325 | $ (2,894,068) | $ 46,664,829 | $ (688,058) | $ 49,123,012 |
Shares issued – stock option exercise (in shares) | 2,000 | 2,000 | ||||
Shares issued – stock option exercise | $ 5 | 9,915 | $ 9,920 | |||
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 (in shares) at Jun. 30, 2015 | 10,282,018 | |||||
BALANCE at Jun. 30, 2015 | $ 27,062 | 6,090,984 | (2,894,068) | 49,617,132 | (854,625) | 51,986,485 |
BALANCE (in shares) at Dec. 31, 2015 | 9,753,293 | |||||
BALANCE at Dec. 31, 2015 | $ 27,062 | 6,168,489 | (6,602,930) | 53,067,234 | (1,687,679) | 50,972,176 |
Stock-based compensation (in shares) | 33,685 | |||||
Stock-based compensation | $ 80 | 113,222 | 113,302 | |||
Net income | 3,341,912 | 3,341,912 | ||||
Translation adjustment | 254,753 | 254,753 | ||||
BALANCE (in shares) at Jun. 30, 2016 | 9,266,496 | |||||
BALANCE at Jun. 30, 2016 | $ 27,142 | $ 6,281,711 | (10,278,584) | $ 56,409,146 | $ (1,432,926) | 51,006,489 |
Purchase of treasury stock (in shares) | (520,482) | |||||
Purchase of treasury stock | $ (3,675,654) | $ (3,675,654) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Certain Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and December 31, 2015, and its results of operations and cash flows for the three and six-month periods ended June 30, 2016 and 2015. Operating results for the three and six-month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015. 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, 2016 December 31, 2015 Inventory on hand: Finished goods held for sale $ 33,047,533 $ 30,487,764 Raw materials and work in process 1,196,894 1,284,567 Inventory in transit 2,060,168 1,812,208 $ 36,304,595 $ 33,584,539 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, 2015, 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 2016. A summary of changes in our goodwill for the periods ended June 30, 2016 and 2015 is as follows: Leather Factory Tandy Leather Total Balance, January 1, 2015 $ 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 Leather Factory Tandy Leather Total Balance, January 1, 2016 $ 569,950 $ 383,406 $ 953,356 Acquisitions and adjustments - - - Foreign exchange gain/loss 6,512 - 6,512 Impairments - - - Balance, June 30, 2016 $ 576,462 $ 383,406 $ 959,868 Other intangibles consist of the following: As of June 30, 2016 As of December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 544,891 $ 9,478 $ 554,369 $ 544,504 $ 9,865 Non-Compete Agreements 174,665 161,915 12,750 174,665 157,248 17,417 $ 729,034 $ 706,806 $ 22,228 $ 729,034 $ 701,752 $ 27,282 We recorded amortization expense of $5,054 during the six months ended June 30, 2016 compared to $22,556 during the first half of 2015. All of our intangible assets, other than goodwill, 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: Leather Factory Tandy Leather Total 2016 $ 54 $ 1,334 $ 1,388 2017 90 1,667 1,757 2018 - 1,417 1,417 2019 - 666 666 2020 - 666 666 Thereafter $ - $ 6,334 $ 6,334 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. In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, “Compensation–Stock Compensation.” The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. The guidance is effective for annual periods, and interim periods within those annual periods beginning after December 15, 2015. The guidance can be applied prospectively for all awards granted or modified after the effective date or retrospectively to all awards with performance targets outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern”. This ASU codifies management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items”. This ASU simplifies income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In July 2015, the FASB issued ASU 2015-11, “Inventory – Simplifying the Measurement of Inventory”, which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”), thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation”. The guidance is effective for annual and interim periods beginning after December 15, 2016. Early application is permitted. We do not expect that the adoption of this guidance will have a significant impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for annual and interim periods beginning after December 15, 2016, and may be adopted on either a prospective or retrospective basis. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We have not completed our review of the new guidance; however, we anticipate that upon adoption of the standard, we will recognize additional assets and corresponding liabilities related to leases on our consolidated balance sheet. |
Note 2 - Notes Payable and Long
Note 2 - Notes Payable and Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. N OTES PAYABLE AND LONG-TERM DEBT On September 18, 2015, we executed a Promissory Note and Business Loan Agreement with BOKF, NA dba Bank of Texas (“BOKF”), which provides us with a line of credit facility of up to $6,000,000. It has a two-year term and is secured by our inventory. The Business Loan Agreement contains covenants that we will maintain a funded debt to EBITDA ratio of no greater than 1.5 to 1, and that we will maintain a Fixed Charge Coverage Ratio greater than or equal to 1.2 to 1. Both ratios are calculated quarterly and are based on a trailing four quarter basis. Also on September 18, 2015, we executed a Promissory Note with BOKF, which provides us with a line of credit facility of up to $10,000,000 for the purpose of purchasing our common stock. Under the terms of the Promissory Note, we can borrow sums up to the lesser of $10,000,000 or the purchase price of a maximum of 1.2 million shares of our common stock from the period September 18, 2015 and ending on the earlier of September 18, 2016 or the date on which the entire amount is drawn. During this time period, we will make interest only payments monthly. At the end of this time period, the principal balance will be rolled into a 4-year term note. This Promissory Note is secured by a Deed of Trust on the real estate located at 1900 SE Loop 820, Fort Worth, Texas. For the six months ended June 30, 2016, we drew approximately $3.7 million on this line of credit which was used to purchase approximately 520,500 shares of our common stock. At June 30, 2016, the unused portion of the line of credit was approximately $2.6 million. Amounts drawn under either Promissory Note accrue interest at the London interbank Eurodollar market rate for U.S. dollars (commonly known as “LIBOR”) plus 1.85% (2.298% and 2.263% at June 30, 2016 and December 31, 2015, respectively). 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. Proceeds in the amount of $4,050,000 were used to fund the purchase of the property that is our corporate headquarters. On April 30, 2008, the principal balance was rolled into a 10-year term note with an interest rate of 7.10% per annum. We paid this note in full in September 2015 and as a result of the early payoff, we incurred a prepayment penalty in the amount of $200,000 which was included in interest expense. 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, which was subsequently increased to $6 million. The note expired on September 30, 2015. There was no balance owed on the line of credit at the expiration date. The amount outstanding under the above agreements consisted of the following: June 30, 2016 December 31, 2015 Business Loan Agreement with BOKF, NA – collateralized by real estate; payable as follows: Line of Credit Note dated September 18, 2015, in the maximum principal amount of $10,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2020 $ 7,371,729 $ 3,711,225 Line of Credit Note dated September 18, 2015, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2017 - - $ 7,371,729 $ 3,711,225 Less current maturities 1,382,199 231,952 $ 5,989,530 $ 3,479,273 |
Note 3 - Capital Lease Obligati
Note 3 - Capital Lease Obligations | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 3. CAPITAL LEASE OBLIGATIONS We lease certain telecommunication equipment under a capital lease agreement. The asset subject to the agreement totaled $227,783, of which $22,152 is included in Property and Equipment at June 30, 2016 and December 31, 2015 and $205,631 is included in Prepaid Equipment (not placed in service) as of June 30, 2016 and December 31, 2015. Accumulated depreciation on the assets placed in service was $2,901 and $264 at June 30, 2016 and December 31, 2015, respectively. Amortization of the capitalized cost is charged to depreciation expense. The amounts outstanding under capital lease obligation consisted of the following: June 30, 2016 December 31, 2015 Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 $ 149,251 $ 156,271 Less amount representing interest 3,877 4,189 Total obligation under capital lease 145,374 152,082 Less - Current maturities 72,686 72,686 $ 72,688 $ 79,396 |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 4. 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, 2016 and 2015 and therefore, no share based compensation expense was recorded for the six months ended June 30, 2016 and 2015, respectively. During the six months ended June 30, 2016 and 2015, 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, 2016 $ 5.17 68,400 Granted - - Cancelled - - Exercised - - Outstanding, June 30, 2016 $ 5.17 68,400 4.99 $ 83,933 Exercisable, June 30, 2016 $ 5.17 68,400 4.99 $ 83,933 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, 2016 and 2015 are as follows: June 30, 2016 June 30, 2015 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 N/A $ 2,953 As of June 30, 2016 and 2015, there was no unrecognized compensation cost related to non-vested stock options. 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 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, net of forfeitures, will be recognized on a straight-line basis over the four year vesting period. In March 2016, our Chief Executive Officer and President were awarded restricted stock grants consisting of 11,765 shares each. In addition, our five independent directors were awarded restricted stock grants consisting of 2,031 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, 2016 and 2015 is presented below: Shares Award Fair Value Balance, January 1, 2016 60,433 $ 8.97 Granted 33,685 $ 7.14 Forfeited (8,187 ) 8.97 Vested (20,784 ) 8.97 Unvested Balance, June 30, 2016 65,147 $ 8.03 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, 2016 and 2015 totals $460,609 and $484,401, respectively. As of June 30, 2016, compensation expense is expected to be recognized as follows: 2016 Award 2015 Award 2014 Award Total 2016 $ 30,064 $ 28,251 $ 28,253 $ 86,568 2017 60,128 56,502 56,506 173,136 2018 60,128 56,502 7,063 123,693 2019 60,128 7,063 - 67,191 2020 10,021 - - 10,021 $ 220,469 $ 148,318 $ 91,822 $ 460,609 |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5. 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, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income $ 1,820,915 $ 1,507,896 $ 3,341,912 $ 2,952,303 Numerator for basic and diluted earnings per share 1,820,915 1,507,896 3,341,912 2,952,303 Denominator: Weighted-average shares outstanding-basic 9,209,446 10,212,933 9,418,645 10,212,137 Effect of dilutive securities: Stock options 18,495 28,231 18,975 28,993 Restricted stock - - - - Dilutive potential common shares 18,495 28,231 18,975 28,993 Denominator for diluted earnings per share- weighted-average shares 9,227,941 10,241,164 9,437,620 10,241,130 Basic earnings per share $ 0.19 $ 0.15 $ 0.35 $ 0.29 Diluted earnings per share $ 0.19 $ 0.15 $ 0.35 $ 0.29 The net effect of assuming the exercise of all potentially dilutive common share equivalents, including stock options to purchase common stock at exercise prices less than the average market prices and restricted stock awards of an aggregate of 133,562 and 130,833 shares of common stock have been included in the computations of diluted EPS for the quarters ended June 30, 2016 and 2015, respectively. |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. COMMITMENTS AND CONTINGENCIES Legal Proceedings. |
Note 7 - Segment Information
Note 7 - Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
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 , 20 16 Net sales $ 6,064,995 $ 12,493,943 $ 963,967 $ 19,522,905 Gross profit 4,790,539 7,364,772 740,479 12,895,790 Income from operations 1,548,303 1,166,009 124,579 2,838,891 Interest (expense) (42,027 ) - - (42,027 ) Other income (expense), net 8,986 - 14,448 23,434 Income before income taxes 1,515,262 1,166,009 139,027 2,820,298 Depreciation and amortization 222,090 152,217 43,258 417,565 Fixed asset additions 213,692 28,543 48,840 291,075 Total assets $ 45,695,555 $ 16,124,992 $ 4,797,768 $ 66,618,315 For the quarter ended June 30 , 20 15 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 Income from operations 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 six months ended June 30, 201 6 Net sales $ 12,561,902 $ 25,736,527 $ 1,896,703 $ 40,195,132 Gross profit 9,179,168 15,060,951 1,308,417 25,548,536 Operating earnings 2,674,562 2,380,959 146,160 5,201,681 Interest (expense) (65,456 ) - - (65,456 ) Other income (expense), net 14,733 - 8,662 23,395 Income before income taxes 2,623,839 2,380,959 154,822 5,159,620 Depreciation and amortization 484,625 303,910 43,258 831,793 Fixed asset additions 584,991 260,108 52,908 898,007 Total assets $ 45,695,555 $ 16,124,992 $ 4,797,768 $ 66,618,315 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 Net sales for geographic areas were as follows for the three and six months ended June 30: Three months ended June 30, 20 16 20 15 United States $ 16,610,634 $ 16,836,732 Canada 1,746,547 1,852,181 All other countries 1,165,724 1,084,615 $ 19,522,905 $ 19,773,528 Six months ended June 30, 2016 20 15 United States $ 34,338,263 $ 34,585,363 Canada 3,488,303 3,738,766 All other countries 2,368,566 2,238,163 $ 40,195,132 $ 40,562,292 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 sixmonth periods ended June 30, 2016 and 2015. 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, 2016 | |
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, 2016 and December 31, 2015, and its results of operations and cash flows for the three and six-month periods ended June 30, 2016 and 2015. Operating results for the three and six-month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015. 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, 2016 December 31, 2015 Inventory on hand: Finished goods held for sale $ 33,047,533 $ 30,487,764 Raw materials and work in process 1,196,894 1,284,567 Inventory in transit 2,060,168 1,812,208 $ 36,304,595 $ 33,584,539 |
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, 2015, 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 2016. A summary of changes in our goodwill for the periods ended June 30, 2016 and 2015 is as follows: Leather Factory Tandy Leather Total Balance, January 1, 2015 $ 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 Leather Factory Tandy Leather Total Balance, January 1, 2016 $ 569,950 $ 383,406 $ 953,356 Acquisitions and adjustments - - - Foreign exchange gain/loss 6,512 - 6,512 Impairments - - - Balance, June 30, 2016 $ 576,462 $ 383,406 $ 959,868 Other intangibles consist of the following: As of June 30, 2016 As of December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 544,891 $ 9,478 $ 554,369 $ 544,504 $ 9,865 Non-Compete Agreements 174,665 161,915 12,750 174,665 157,248 17,417 $ 729,034 $ 706,806 $ 22,228 $ 729,034 $ 701,752 $ 27,282 We recorded amortization expense of $5,054 during the six months ended June 30, 2016 compared to $22,556 during the first half of 2015. All of our intangible assets, other than goodwill, 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: Leather Factory Tandy Leather Total 2016 $ 54 $ 1,334 $ 1,388 2017 90 1,667 1,757 2018 - 1,417 1,417 2019 - 666 666 2020 - 666 666 Thereafter $ - $ 6,334 $ 6,334 |
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. In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, “Compensation–Stock Compensation.” The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. The guidance is effective for annual periods, and interim periods within those annual periods beginning after December 15, 2015. The guidance can be applied prospectively for all awards granted or modified after the effective date or retrospectively to all awards with performance targets outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern”. This ASU codifies management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items”. This ASU simplifies income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In July 2015, the FASB issued ASU 2015-11, “Inventory – Simplifying the Measurement of Inventory”, which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”), thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation”. The guidance is effective for annual and interim periods beginning after December 15, 2016. Early application is permitted. We do not expect that the adoption of this guidance will have a significant impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for annual and interim periods beginning after December 15, 2016, and may be adopted on either a prospective or retrospective basis. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We have not completed our review of the new guidance; however, we anticipate that upon adoption of the standard, we will recognize additional assets and corresponding liabilities related to leases on our consolidated balance sheet. |
Note 1 - Basis of Presentatio16
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | As of June 30, 2016 December 31, 2015 Inventory on hand: Finished goods held for sale $ 33,047,533 $ 30,487,764 Raw materials and work in process 1,196,894 1,284,567 Inventory in transit 2,060,168 1,812,208 $ 36,304,595 $ 33,584,539 |
Schedule of Goodwill [Table Text Block] | Leather Factory Tandy Leather Total Balance, January 1, 2015 $ 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 Leather Factory Tandy Leather Total Balance, January 1, 2016 $ 569,950 $ 383,406 $ 953,356 Acquisitions and adjustments - - - Foreign exchange gain/loss 6,512 - 6,512 Impairments - - - Balance, June 30, 2016 $ 576,462 $ 383,406 $ 959,868 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of June 30, 2016 As of December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 544,891 $ 9,478 $ 554,369 $ 544,504 $ 9,865 Non-Compete Agreements 174,665 161,915 12,750 174,665 157,248 17,417 $ 729,034 $ 706,806 $ 22,228 $ 729,034 $ 701,752 $ 27,282 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Leather Factory Tandy Leather Total 2016 $ 54 $ 1,334 $ 1,388 2017 90 1,667 1,757 2018 - 1,417 1,417 2019 - 666 666 2020 - 666 666 Thereafter $ - $ 6,334 $ 6,334 |
Note 2 - Notes Payable and Lo17
Note 2 - Notes Payable and Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 2016 December 31, 2015 Business Loan Agreement with BOKF, NA – collateralized by real estate; payable as follows: Line of Credit Note dated September 18, 2015, in the maximum principal amount of $10,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2020 $ 7,371,729 $ 3,711,225 Line of Credit Note dated September 18, 2015, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2017 - - $ 7,371,729 $ 3,711,225 Less current maturities 1,382,199 231,952 $ 5,989,530 $ 3,479,273 |
Note 3 - Capital Lease Obliga18
Note 3 - Capital Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Capital Lease Obligations [Table Text Block] | June 30, 2016 December 31, 2015 Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 $ 149,251 $ 156,271 Less amount representing interest 3,877 4,189 Total obligation under capital lease 145,374 152,082 Less - Current maturities 72,686 72,686 $ 72,688 $ 79,396 |
Note 4 - Stock-based Compensa19
Note 4 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 $ 5.17 68,400 Granted - - Cancelled - - Exercised - - Outstanding, June 30, 2016 $ 5.17 68,400 4.99 $ 83,933 Exercisable, June 30, 2016 $ 5.17 68,400 4.99 $ 83,933 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, 2016 June 30, 2015 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 N/A $ 2,953 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Award Fair Value Balance, January 1, 2016 60,433 $ 8.97 Granted 33,685 $ 7.14 Forfeited (8,187 ) 8.97 Vested (20,784 ) 8.97 Unvested Balance, June 30, 2016 65,147 $ 8.03 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] | 2016 Award 2015 Award 2014 Award Total 2016 $ 30,064 $ 28,251 $ 28,253 $ 86,568 2017 60,128 56,502 56,506 173,136 2018 60,128 56,502 7,063 123,693 2019 60,128 7,063 - 67,191 2020 10,021 - - 10,021 $ 220,469 $ 148,318 $ 91,822 $ 460,609 |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income $ 1,820,915 $ 1,507,896 $ 3,341,912 $ 2,952,303 Numerator for basic and diluted earnings per share 1,820,915 1,507,896 3,341,912 2,952,303 Denominator: Weighted-average shares outstanding-basic 9,209,446 10,212,933 9,418,645 10,212,137 Effect of dilutive securities: Stock options 18,495 28,231 18,975 28,993 Restricted stock - - - - Dilutive potential common shares 18,495 28,231 18,975 28,993 Denominator for diluted earnings per share- weighted-average shares 9,227,941 10,241,164 9,437,620 10,241,130 Basic earnings per share $ 0.19 $ 0.15 $ 0.35 $ 0.29 Diluted earnings per share $ 0.19 $ 0.15 $ 0.35 $ 0.29 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 , 20 16 Net sales $ 6,064,995 $ 12,493,943 $ 963,967 $ 19,522,905 Gross profit 4,790,539 7,364,772 740,479 12,895,790 Income from operations 1,548,303 1,166,009 124,579 2,838,891 Interest (expense) (42,027 ) - - (42,027 ) Other income (expense), net 8,986 - 14,448 23,434 Income before income taxes 1,515,262 1,166,009 139,027 2,820,298 Depreciation and amortization 222,090 152,217 43,258 417,565 Fixed asset additions 213,692 28,543 48,840 291,075 Total assets $ 45,695,555 $ 16,124,992 $ 4,797,768 $ 66,618,315 For the quarter ended June 30 , 20 15 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 Income from operations 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 six months ended June 30, 201 6 Net sales $ 12,561,902 $ 25,736,527 $ 1,896,703 $ 40,195,132 Gross profit 9,179,168 15,060,951 1,308,417 25,548,536 Operating earnings 2,674,562 2,380,959 146,160 5,201,681 Interest (expense) (65,456 ) - - (65,456 ) Other income (expense), net 14,733 - 8,662 23,395 Income before income taxes 2,623,839 2,380,959 154,822 5,159,620 Depreciation and amortization 484,625 303,910 43,258 831,793 Fixed asset additions 584,991 260,108 52,908 898,007 Total assets $ 45,695,555 $ 16,124,992 $ 4,797,768 $ 66,618,315 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 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Three months ended June 30, 20 16 20 15 United States $ 16,610,634 $ 16,836,732 Canada 1,746,547 1,852,181 All other countries 1,165,724 1,084,615 $ 19,522,905 $ 19,773,528 Six months ended June 30, 2016 20 15 United States $ 34,338,263 $ 34,585,363 Canada 3,488,303 3,738,766 All other countries 2,368,566 2,238,163 $ 40,195,132 $ 40,562,292 |
Note 1 - Basis of Presentatio22
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Amortization of Intangible Assets | $ 5,054 | $ 22,556 |
Note 1 - Components of Inventor
Note 1 - Components of Inventory (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory on hand: | ||
Finished goods held for sale | $ 33,047,533 | $ 30,487,764 |
Raw materials and work in process | 1,196,894 | 1,284,567 |
Inventory in transit | 2,060,168 | 1,812,208 |
$ 36,304,595 | $ 33,584,539 |
Note 1 - Summary of Changes in
Note 1 - Summary of Changes in Goodwill (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Leather Factory [Member] | ||
Balance | $ 569,950 | $ 588,380 |
Foreign exchange gain/loss | 6,512 | (8,017) |
Balance | 576,462 | 580,363 |
Tandy Leather [Member] | ||
Balance | 383,406 | 383,406 |
Foreign exchange gain/loss | ||
Balance | 383,406 | 383,406 |
Balance | 953,356 | 971,786 |
Foreign exchange gain/loss | 6,512 | (8,017) |
Balance | $ 959,868 | $ 963,769 |
Note 1 - Intangible Assets (Det
Note 1 - Intangible Assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Trademarks and Copyrights [Member] | ||
Other intangibles, gross | $ 554,369 | $ 554,369 |
Accumulated amortization | 544,891 | 544,504 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $707,000 and $702,000 in 2016 and 2015, respectively | 9,478 | 9,865 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 174,665 | 174,665 |
Accumulated amortization | 161,915 | 157,248 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $707,000 and $702,000 in 2016 and 2015, respectively | 12,750 | 17,417 |
Other intangibles, gross | 729,034 | 729,034 |
Accumulated amortization | 706,806 | 701,752 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $707,000 and $702,000 in 2016 and 2015, respectively | $ 22,228 | $ 27,282 |
Note 1 - Estimated Amortization
Note 1 - Estimated Amortization Expense (Details) | Jun. 30, 2016USD ($) |
Wholesale Leathercraft [Member] | |
2,016 | $ 54 |
2,017 | 90 |
2,018 | |
2,019 | |
2,020 | |
Thereafter | |
Retail Leathercraft [Member] | |
2,016 | 1,334 |
2,017 | 1,667 |
2,018 | 1,417 |
2,019 | 666 |
2,020 | 666 |
Thereafter | 6,334 |
2,016 | 1,388 |
2,017 | 1,757 |
2,018 | 1,417 |
2,019 | 666 |
2,020 | 666 |
Thereafter | $ 6,334 |
Note 2 - Notes Payable and Lo27
Note 2 - Notes Payable and Long-term Debt (Details Textual) | Sep. 18, 2015USD ($)shares | Apr. 30, 2008 | Jul. 31, 2007USD ($)aft² | Sep. 30, 2015USD ($) | Mar. 31, 2016 | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | Dec. 31, 2015 | Jun. 23, 2014USD ($) | Jul. 12, 2012USD ($) |
Promissory Note and Business Loan Agreement with BOKF [Member] | Maximum [Member] | ||||||||||
Debt Instrument, Covenants, Debt to EBITDA Ratio | 1.5 | |||||||||
Promissory Note and Business Loan Agreement with BOKF [Member] | Minimum [Member] | ||||||||||
Debt Instrument, Covenants, Fixed Charge Coverage Ratio | 1.2 | |||||||||
Promissory Note and Business Loan Agreement with BOKF [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | |||||||||
Debt Instrument, Term | 2 years | |||||||||
Promissory Note with BOKF [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |||||||||
Line of Credit Facility, Maximum Shares to Be Purchased by Borrowing | shares | 1,200,000 | |||||||||
Line of Credit Facility, Term of the Term Note into which the Principal Balance Will Be Rolled | 4 years | |||||||||
Proceeds from Issuance of Long-term Debt | $ 3,700,000 | |||||||||
Treasury Stock, Shares, Acquired | shares | 520,500 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,600,000 | |||||||||
Two Promissory Notes with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | |||||||||
Two Promissory Notes with BOKF [Member] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.298% | 2.263% | ||||||||
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] | Interest Expense [Member] | ||||||||||
Debt Instrument, Prepayment Penalty | $ 200,000 | |||||||||
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 | |||||||||
Proceeds from Bank Debt | $ 4,050,000 | |||||||||
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | $ 4,000,000 | ||||||||
Proceeds from Issuance of Long-term Debt | $ 3,660,505 |
Note 2 - Summary of Credit Agre
Note 2 - Summary of Credit Agreement and Line of Credit Note (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Promissory Note with BOKF [Member] | ||
Line of Credit Note | $ 7,371,729 | $ 3,711,225 |
Promissory Note and Business Loan Agreement with BOKF [Member] | ||
Line of Credit Note | 0 | |
7,371,729 | 3,711,225 | |
Current maturities of long-term debt | 1,382,199 | 231,952 |
LONG-TERM DEBT, net of current maturities | $ 5,989,530 | $ 3,479,273 |
Note 2 - Summary of Credit Ag29
Note 2 - Summary of Credit Agreement and Line of Credit Note (Details) (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Promissory Note with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Note, Interest at LIBOR | 1.85% | 1.85% |
Promissory Note with BOKF [Member] | ||
Line of Credit Note, Principal Amount | $ 10,000,000 | $ 10,000,000 |
Promissory Note and Business Loan Agreement with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Note, Interest at LIBOR | 1.85% | 1.85% |
Promissory Note and Business Loan Agreement with BOKF [Member] | ||
Line of Credit Note, Principal Amount | $ 6,000,000 | $ 6,000,000 |
Note 3 - Capital Lease Obliga30
Note 3 - Capital Lease Obligations (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Property and Equipment [Member] | ||
Capital Leased Assets, Gross | $ 22,152 | $ 22,152 |
Prepaid Equipment [Member] | ||
Capital Leased Assets, Gross | 205,631 | 205,631 |
Capital Leased Assets, Gross | 227,783 | 227,783 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 2,901 | $ 264 |
Note 3 - Capital Lease Obliga31
Note 3 - Capital Lease Obligations (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 | $ 149,251 | $ 156,271 |
Less amount representing interest | 3,877 | 4,189 |
Total obligation under capital lease | 145,374 | 152,082 |
Less - Current maturities | 72,686 | 72,686 |
$ 72,688 | $ 79,396 |
Note 3 - Capital Lease Obliga32
Note 3 - Capital Lease Obligations (Details) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Annual principal payments | $ 72,686 | $ 72,686 |
Interest rate | 1.80% | 1.80% |
Note 4 - Stock-based Compensa33
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Feb. 28, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
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 | |||
Chief Financial Officer [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,343 | ||||
Senior Vice President [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,343 | ||||
Independent Director 1 Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,613 | |||
Executive Officers, Non-employee Directors and Other Key Employees [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | ||||
President [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,765 | ||||
Independent Director 2 [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,613 | |||
Independent Director 3 [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,613 | |||
Independent Director 4 [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,613 | |||
Independent Directors 5 [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | ||||
Chief Executive Officer [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,765 | 9,343 | |||
Interim Chief Executive Officer, Interim President and 5 Directors [Member] | Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||||
2007 Director Non-Qualified Stock Option Plan [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 33,685 | 34,484 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 460,609 | $ 484,401 |
Note 4 - Summary of Stock Optio
Note 4 - Summary of Stock Option Activity (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.17 | $ 5.16 | ||
Outstanding, Number of Shares (in shares) | 68,400 | 72,400 | ||
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.17 | $ 5.17 | ||
Outstanding, Number of Shares (in shares) | 68,400 | 70,400 | ||
Outstanding, Weighted Average Remaining Contractual Term | 4 years 361 days | 5 years 302 days | ||
Outstanding, Aggregate Intrinsic Value | $ 83,933 | $ 86,886 | ||
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 5.17 | |||
Exercisable, Number of Shares (in shares) | 68,400 | 70,400 | ||
Exercisable, Weighted Average Remaining Contractual Term | 4 years 361 days | 5 years 302 days | ||
Exercisable, Aggregate Intrinsic Value | $ 83,933 | $ 86,886 | ||
Exercised, Weighted Average Exercise Price (in dollars per share) | $ (4.96) | |||
Exercised, Number of Shares (in shares) | (2,000) | |||
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.17 | $ 5.16 | $ 5.17 | $ 5.17 |
Note 4 - Other Information Pert
Note 4 - Other Information Pertaining to Option Activity (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Total intrinsic value of stock options exercised | $ 2,953 |
Note 4 - Activity for Nonvested
Note 4 - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Balance, shares (in shares) | 60,433 | 34,601 |
Balance, Grant Fair Value (in dollars per share) | $ 8.97 | $ 8.96 |
Granted, shares (in shares) | 33,685 | 34,484 |
Granted, Grant Fair Value (in dollars per share) | $ 7.14 | $ 8.99 |
Forfeited, shares (in shares) | (8,187) | |
Forfeited, Grant Fair Value (in dollars per share) | $ 8.97 | |
Vested, shares (in shares) | (20,784) | (8,652) |
Vested, Grant Fair Value (in dollars per share) | $ 8.97 | $ 8.96 |
Balance, shares (in shares) | 65,147 | 60,433 |
Balance, Grant Fair Value (in dollars per share) | $ 8.03 | $ 8.97 |
Note 4 - Unrecognized Compensat
Note 4 - Unrecognized Compensation Expense for Non-vested Restricted Stock Awards (Details) (Details) - Restricted Stock [Member] - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Award 2016 [Member] | ||
2,016 | $ 30,064 | |
2,017 | 60,128 | |
2,018 | 60,128 | |
2,019 | 60,128 | |
2,020 | 10,021 | |
220,469 | ||
2015 [Member] | ||
2,016 | 28,251 | |
2,017 | 56,502 | |
2,018 | 56,502 | |
2,019 | 7,063 | |
2,020 | ||
148,318 | ||
2014 [Member] | ||
2,016 | 28,253 | |
2,017 | 56,506 | |
2,018 | 7,063 | |
2,019 | ||
2,020 | ||
91,822 | ||
2,016 | 86,568 | |
2,017 | 173,136 | |
2,018 | 123,693 | |
2,019 | 67,191 | |
2,020 | 10,021 | |
$ 460,609 | $ 484,401 |
Note 5 - Earnings Per Share (De
Note 5 - Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 133,562 | 130,833 |
Note 5 - Computation of Basic a
Note 5 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Option [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 18,495 | 28,231 | 18,975 | 28,993 |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | ||||
Net income | $ 1,820,915 | $ 1,507,896 | $ 3,341,912 | $ 2,952,303 |
Numerator for basic and diluted earnings per share | $ 1,820,915 | $ 1,507,896 | $ 3,341,912 | $ 2,952,303 |
Weighted-average shares outstanding-basic (in shares) | 9,209,446 | 10,212,933 | 9,418,645 | 10,212,137 |
Effect of dilutive securities (in shares) | 18,495 | 28,231 | 18,975 | 28,993 |
Denominator for diluted earnings per share-weighted-average shares (in shares) | 9,227,941 | 10,241,164 | 9,437,620 | 10,241,130 |
Basic earnings per share (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.35 | $ 0.29 |
Diluted earnings per share (in dollars per share) | $ 0.19 | $ 0.15 | $ 0.35 | $ 0.29 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2016 | |
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] | Manchester, United Kingdom [Member] | |
Number of Stores | 1 |
International Leathercraft [Member] | |
Number of Stores | 4 |
Number of Operating Segments | 3 |
Note 7 - Summary of Reportable
Note 7 - Summary of Reportable Operating Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Wholesale Leathercraft [Member] | |||||
Net Sales | $ 6,064,995 | $ 6,394,278 | $ 12,561,902 | $ 13,119,582 | |
Gross Profit | 4,790,539 | 4,726,907 | 9,179,168 | 8,896,542 | |
Operating earnings | 1,548,303 | 968,552 | 2,674,562 | 1,920,407 | |
Interest expense | (42,027) | (34,762) | (65,456) | (78,925) | |
Other expense, net | 8,986 | 25,769 | 14,733 | 37,162 | |
Income before income taxes | 1,515,262 | 959,559 | 2,623,839 | 1,878,644 | |
Depreciation and amortization | 222,090 | 274,536 | 484,625 | 514,254 | |
Fixed asset additions | 213,692 | 164,540 | 584,991 | 584,446 | |
Total assets | 45,695,555 | 38,507,395 | 45,695,555 | 38,507,395 | |
Retail Leathercraft [Member] | |||||
Net Sales | 12,493,943 | 12,532,411 | 25,736,527 | 25,641,824 | |
Gross Profit | 7,364,772 | 7,548,859 | 15,060,951 | 15,394,625 | |
Operating earnings | 1,166,009 | 1,336,669 | 2,380,959 | 2,740,121 | |
Interest expense | |||||
Other expense, net | |||||
Income before income taxes | 1,166,009 | 1,336,669 | 2,380,959 | 2,740,121 | |
Depreciation and amortization | 152,217 | 137,735 | 303,910 | 270,597 | |
Fixed asset additions | 28,543 | 226,777 | 260,108 | 484,315 | |
Total assets | 16,124,992 | 20,875,591 | 16,124,992 | 20,875,591 | |
International Leathercraft [Member] | |||||
Net Sales | 963,967 | 846,839 | 1,896,703 | 1,800,886 | |
Gross Profit | 740,479 | 538,615 | 1,308,417 | 1,106,142 | |
Operating earnings | 124,579 | 28,621 | 146,160 | 62,195 | |
Interest expense | |||||
Other expense, net | 14,448 | (15,892) | 8,662 | (7,412) | |
Income before income taxes | 139,027 | 12,729 | 154,822 | 54,783 | |
Depreciation and amortization | 43,258 | 13,249 | 43,258 | 24,605 | |
Fixed asset additions | 48,840 | 19,470 | 52,908 | 19,470 | |
Total assets | 4,797,768 | 4,186,980 | 4,797,768 | 4,186,980 | |
Net Sales | 19,522,905 | 19,773,528 | 40,195,132 | 40,562,292 | |
Gross Profit | 12,895,790 | 12,814,381 | 25,548,536 | 25,397,309 | |
Operating earnings | 2,838,891 | 2,333,842 | 5,201,681 | 4,722,723 | |
Interest expense | (42,027) | (34,762) | (65,456) | (78,925) | |
Other expense, net | 23,434 | 9,877 | 23,395 | 29,750 | |
Income before income taxes | 2,820,298 | 2,308,957 | 5,159,620 | 4,673,548 | |
Depreciation and amortization | 417,565 | 425,520 | 831,793 | 809,456 | |
Fixed asset additions | 291,075 | 410,787 | 898,007 | 1,088,231 | |
Total assets | $ 66,618,315 | $ 63,569,966 | $ 66,618,315 | $ 63,569,966 | $ 64,566,926 |
Note 7 - Net Sales for Geograph
Note 7 - Net Sales for Geographic Areas (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
UNITED STATES | ||||
Net sales | $ 16,610,634 | $ 16,836,732 | $ 34,338,263 | $ 34,585,363 |
CANADA | ||||
Net sales | 1,746,547 | 1,852,181 | 3,488,303 | 3,738,766 |
All Other Countries [Member] | ||||
Net sales | 1,165,724 | 1,084,615 | 2,368,566 | 2,238,163 |
Net sales | $ 19,522,905 | $ 19,773,528 | $ 40,195,132 | $ 40,562,292 |