Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 22, 2017 | Jun. 30, 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) | 9,486,978 | ||
Entity Public Float | $ 49,870,948 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash | $ 16,862,304 | $ 10,962,615 |
Accounts receivable-trade, net of allowance for doubtful accounts of $2,404 and $1,746 in 2016 and 2015, respectively | 560,984 | 553,206 |
Inventory | 33,177,539 | 33,584,539 |
Prepaid income taxes | 964,323 | 549,277 |
Prepaid expenses | 1,608,860 | 1,514,887 |
Other current assets | 140,232 | 70,197 |
Total current assets | 53,314,242 | 47,234,721 |
PROPERTY AND EQUIPMENT, at cost | 25,536,352 | 23,992,208 |
Less accumulated depreciation and amortization | (9,884,559) | (8,297,155) |
Property, plant and equipment, net | 15,651,793 | 15,695,053 |
DEFERRED INCOME TAXES | 375,236 | 370,980 |
GOODWILL | 956,201 | 953,356 |
OTHER INTANGIBLES, net of accumulated amortization of $708,000 and $702,000 in 2016 and 2015, respectively | 20,840 | 27,282 |
OTHER assets | 334,408 | 329,684 |
Total Assets | 70,652,720 | 64,611,076 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 1,621,884 | 1,983,376 |
Accrued expenses and other liabilities | 5,937,187 | 6,045,552 |
Current maturities of capital lease obligations | 72,686 | 72,686 |
Current maturities of long-term debt | 614,311 | 231,952 |
Total current liabilities | 8,246,068 | 8,333,566 |
DEFERRED INCOME TAXES | 1,956,032 | 1,746,665 |
LONG-TERM DEBT, net of current maturities | 6,757,419 | 3,479,273 |
CAPITAL LEASE OBLIGATIONS, net of current maturities | 79,396 | |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.10 par value; 20,000,000 shares authorized, none issued or outstanding | ||
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 | 6,368,279 | 6,168,489 |
Retained earnings | 59,469,493 | 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 | (1,893,129) | (1,687,679) |
Total stockholders' equity | 53,693,201 | 50,972,176 |
Total Liabilities and Stockholders’ Equity | $ 70,652,720 | $ 64,611,076 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable-trade, net allowance for doubtful accounts | $ 2,404 | $ 1,746 |
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 Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 82,923,992 | $ 84,161,200 | $ 83,430,912 |
COST OF SALES | 31,210,750 | 32,090,140 | 31,306,155 |
Gross Profit | 51,713,242 | 52,071,060 | 52,124,757 |
OPERATING EXPENSES | 41,412,511 | 41,596,360 | 40,166,728 |
INCOME FROM OPERATIONS | 10,300,731 | 10,474,700 | 11,958,029 |
OTHER (INCOME) EXPENSE: | |||
Interest expense | 155,189 | 330,004 | 225,584 |
Other, net | (57,287) | (74,357) | (75,165) |
Total other expense | 97,902 | 255,647 | 150,419 |
INCOME BEFORE NCOME TAXES | 10,202,829 | 10,219,053 | 11,807,610 |
PROVISION FOR INCOME TAXES | 3,800,570 | 3,816,648 | 4,100,689 |
NET INCOME | 6,402,259 | 6,402,405 | 7,706,921 |
Foreign currency translation adjustments | (205,450) | (999,621) | (776,307) |
COMPREHENSIVE INCOME | $ 6,196,809 | $ 5,402,784 | $ 6,930,614 |
NET INCOME PER COMMON SHARE: | |||
BASIC (in dollars per share) | $ 0.69 | $ 0.64 | $ 0.76 |
DILUTED (in dollars per share) | $ 0.69 | $ 0.63 | $ 0.75 |
Weighted Average Number of Shares Outstanding: | |||
Basic (in shares) | 9,301,867 | 10,077,506 | 10,203,063 |
Diluted (in shares) | 9,321,558 | 10,102,760 | 10,241,121 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 6,402,259 | $ 6,402,405 | $ 7,706,921 |
Adjustments to reconcile net income to net cash provided by operating activities - | |||
Depreciation and amortization | 1,719,154 | 1,567,172 | 1,436,624 |
Loss on disposal or abandonment of assets | 16,985 | 31,064 | 18,820 |
Non-cash share-based compensation | 199,870 | 145,322 | 67,818 |
Deferred income taxes | 205,111 | 289,171 | 183,490 |
Foreign currency translation | (163,292) | (896,928) | (727,664) |
Net changes in assets and liabilities, net of effect of business acquisitions: | |||
Accounts receivable-trade | (7,778) | 71,848 | 137,351 |
Inventory | 407,000 | (709,047) | (6,574,662) |
Prepaid expenses | (284,788) | 43,585 | 260,992 |
Other current assets | (70,035) | 87,561 | 320,835 |
Accounts payable-trade | (361,492) | 728,158 | (629,419) |
Accrued expenses and other liabilities | (108,365) | 651,038 | (414,368) |
Income taxes | (415,046) | (212,449) | (609,026) |
Total adjustments | 1,137,324 | 1,796,495 | (6,529,209) |
Net cash provided by operating activities | 7,539,583 | 8,198,900 | 1,177,712 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (1,697,704) | (2,164,040) | (2,204,190) |
Purchase of intangible property | (10,000) | ||
Proceeds from sale of assets / insurance | 153,483 | 11,662 | 20,936 |
Decrease (increase) in other assets | (1,127) | 295 | 11,980 |
Net cash used in investing activities | (1,545,348) | (2,162,083) | (2,171,274) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase (decrease) in revolving credit loans | (3,500,000) | 3,500,000 | |
Proceeds from notes payable and long term debt | 3,660,505 | 3,711,225 | |
Payments on notes payable and long-term debt | (2,143,125) | (455,625) | |
Payments on capital lease obligations | (79,396) | (79,890) | |
Repurchase of common stock (treasury stock) | (3,675,654) | (3,708,862) | |
Payment of cash dividend | (2,549,684) | ||
Proceeds from issuance of common stock | 0 | 9,920 | 52,722 |
Net cash provided by (used in) financing activities | (94,545) | (5,710,732) | 547,413 |
NET INCREASE (DECREASE) IN CASH | 5,899,689 | 326,085 | (446,149) |
CASH, beginning of period | 10,962,615 | 10,636,530 | 11,082,679 |
CASH, end of period | 16,862,304 | 10,962,615 | 10,636,530 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid during the period | 155,189 | 330,004 | 225,584 |
Income tax paid during the period, net of (refunds) | 4,215,616 | 3,743,864 | 4,604,087 |
NON-CASH INVESTING ACTIVITIES | |||
Equipment purchased via capital lease arrangements | $ 231,972 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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, 2013 | 10,198,733 | |||||
Balance at Dec. 31, 2013 | $ 26,862 | $ 5,892,907 | $ (2,894,068) | $ 41,507,592 | $ 88,249 | $ 44,621,542 |
Shares issued - stock options exercised (in shares) | 12,200 | 2,000 | ||||
Shares issued - stock options exercised | $ 29 | 52,693 | $ 52,722 | |||
Share-based compensation (in shares) | 34,601 | |||||
Share-based compensation | $ 93 | 67,725 | 67,818 | |||
Net income | 7,706,921 | 7,706,921 | ||||
Cash dividend paid | (2,549,684) | (2,549,684) | ||||
Translation adjustment | (776,307) | (776,307) | ||||
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 |
Purchase of Treasury stock (in shares) | 0 | |||||
Shares issued - stock options exercised (in shares) | 2,000 | |||||
Shares issued - stock options exercised | $ 5 | 9,915 | $ 9,920 | |||
Share-based compensation (in shares) | 34,484 | |||||
Share-based compensation | $ 73 | 145,249 | 145,322 | |||
Net income | 6,402,405 | 6,402,405 | ||||
Translation adjustment | (999,621) | (999,621) | ||||
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 |
Purchase of Treasury stock (in shares) | (528,725) | (529,000) | ||||
Purchase of Treasury stock | (3,708,862) | $ (3,708,862) | ||||
Share-based compensation (in shares) | 33,685 | |||||
Share-based compensation | $ 80 | 199,790 | 199,870 | |||
Net income | 6,402,259 | 6,402,259 | ||||
Translation adjustment | (205,450) | (205,450) | ||||
Balance (in shares) at Dec. 31, 2016 | 9,266,496 | |||||
Balance at Dec. 31, 2016 | $ 27,142 | 6,368,279 | (10,278,584) | 59,469,493 | (1,893,129) | $ 53,693,201 |
Purchase of Treasury stock (in shares) | (520,482) | (520,500) | ||||
Purchase of Treasury stock | $ (3,675,654) | $ (3,675,654) |
Note 1 - Description of Busines
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. Our primary line of business is the sale of leather, leather crafts, and related supplies. We sell our products via company-owned stores throughout the United States, Canada, the United Kingdom, Australia, and Spain. Numerous customers including retailers, wholesalers, assemblers, distributors, and other manufacturers are geographically disbursed throughout the world. We also have light manufacturing facilities in Texas. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2 . SIGNIFICANT ACCOUNTING POLICIES ● Management estimates and reporting The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Assets and liabilities with reported amounts based on significant estimates include trade accounts receivable, inventory (slow-moving), goodwill, and deferred income taxes. ● Principles of consolidation Our consolidated financial statements include the accounts of Tandy Leather Factory, Inc. and its wholly owned subsidiaries, The Leather Factory, L.P. (a Texas limited partnership) and its corporate partners, Tandy Leather Company, L.P. (a Texas limited partnership) and its corporate partners, Mid-Continent Leather Sales, Inc. (an Oklahoma corporation), Roberts, Cushman & Company, Inc. (a Texas corporation), The Leather Factory of Canada, Ltd. (a Canadian corporation), Tandy Leather Factory UK Limited (a UK corporation), Tandy Leather Factory Australia Pty. Limited (an Australian corporation), and Tandy Leather Factory España, S.L. (a Spanish corporation). All intercompany accounts and transactions have been eliminated in consolidation. ● Foreign currency translation and transactions Foreign currency translation adjustments arise from activities of our foreign subsidiaries. Results of operations are translated into U.S. dollars using the average exchange rates during the period, while assets and liabilities are translated using period-end exchange rates. Foreign currency translation adjustments of assets and liabilities are recorded in stockholders’ equity. Gains and losses resulting from foreign currency transactions are reported in the statements of income under the caption “Other (Income) Expense”, net, for all periods presented. We recognized foreign currency transaction gains (losses) of $19,000, $24,000, ($13,900), 2016, 2015, 2014, ● Revenue recognition Our sales generally occur via two (1) (2) We offer an unconditional satisfaction guarantee to all customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. ● Discounts We maintain four ● Expense categories Cost of goods sold includes inbound freight and duty charges from vendors to our central warehouse, freight and handling charges to move merchandise from our central warehouse to our stores, and manufacturing overhead, as appropriate. Operating expenses include all selling, general and administrative costs including wages and related employee expenses (payroll taxes, health benefits, savings plans, etc.), advertising, outbound freight charges (to ship merchandise to customers), rent, and utilities. ● Property and equipment, net of accumulated depreciation and amortization Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are three ten seven fifteen five forty ● Inventory Inventory is valued at the lower of first first ● Impairment of long-lived assets We evaluate long-lived assets for indicators of impairment whenever events or changes in circumstances indicate their carrying amounts may ● Earnings per share Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes, to the extent inclusion of such shares would be dilutive to earnings per share, the effect of outstanding options and warrants, computed using the treasury stock method. BASIC 2016 2015 2014 Net income $ 6,402,259 $ 6,402,405 $ 7,706,921 Weighted average common shares outstanding 9,301,867 10,077,506 10,203,063 Earnings per share – basic $ 0.69 $ 0.64 $ 0.76 DILUTED Net income $ 6,402,259 $ 6,402,405 $ 7,706,921 Weighted average common shares outstanding 9,301,867 10,077,506 10,203,063 Effect of restricted stock awards and assumed exercise of stock options 19,691 25,254 38,058 Weighted average common shares outstanding, assuming dilution 9,321,558 10,102,760 10,241,121 Earnings per share - diluted $ 0.69 $ 0.63 $ 0.75 Outstanding options and restricted stock awards excluded as anti-dilutive 31,477 60,433 - For additional disclosures regarding the restricted stock awards and the employee stock options, see Note 11. 90,085, 68,400, 107,001 December 31, 2016, 2015, 2014, ● Goodwill and other intangibles Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. Goodwill is not amortized, but is evaluated at least annually for impairment. We completed our annual goodwill impairment analysis as of December 31 December 31, 2016, 2015, 2014 A summary of changes in our goodwill is as follows: Leather Factory Tandy Leather Total Balance, January 1, 2015 $ 588,380 $ 383,406 $ 971,786 Foreign exchange gain/loss (18,430 ) - (18,430 ) Balance, December 31, 2015 $ 569,950 $ 383,406 $ 953,356 Foreign exchange gain/loss 2,845 - 2,845 Balance, December 31, 2016 $ 572,795 $ 383,406 $ 956,201 Our intangible assets and related accumulated amortization consisted of the following: As of December 31, 20 16 Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 545,279 $ 9,090 Non-Compete Agreements 175,316 163,566 11,750 $ 729,685 $ 708,845 $ 20,840 As of December 31, 2015 Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 544,504 $ 9,865 Non-Compete Agreements 174,665 157,248 17,417 $ 729,034 $ 701,752 $ 27,282 Excluding goodwill, we have no intangible assets not subject to amortization under U.S. GAAP. Amortization of intangible assets of $6,442 2016, $40,744 2015, $45,202 2014 15 five Leather Factory Tandy Leather Total 2017 90 1,667 1,757 2018 - 1,417 1,417 2019 - 666 666 2020 - 666 666 2021 - 666 666 Thereafter - 5,668 5,668 ● Fair value of financial Instruments We measure fair value as an exit price, which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering such assumptions, accounting standards establish a three Level 1 Level 2 Level 3 Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Our principal financial instruments held consist of certificates of deposit, accounts receivable, accounts payable, notes payable, and long-term debt. The carrying value of certificates of deposit, accounts receivable and accounts payable approximate their fair value due to the relatively short-term nature of the accounts. The terms of the long-term debt are considered reasonable for this type of financing; therefore, the carrying amount approximates fair value. ● Income taxes We account for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable is accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may We may may ● Share-based compensation We have one ten six 2016, 2015 2014, We also have a restricted stock plan that was adopted by our Board of Directors in January 2013 June 2013. 300,000 may may four four ● Comprehensive income Comprehensive income includes net income and certain other items that are recorded directly to Stockholders’ Equity. The Company’s only source of other comprehensive income is foreign currency translation adjustments. ● Shipping and handling costs All shipping and handling costs incurred by us are included in operating expenses on the statements of income. These costs totaled approximately $1,982,000, $2,012,000, $2,046,000 December 31, 2016, 2015, 2014, ● Advertising With the exception of catalog costs, advertising costs are expensed as incurred. Catalog costs are capitalized and expensed over the estimated useful life of the particular catalog in question, which is typically twelve eighteen $213,000 $181,000 December 31, 2016 2015, $4,759,000 2016; $4,826,000 2015; $4,339,000 2014. ● Cash flows presentation For purposes of the statement of cash flows, we consider all highly liquid investments with initial maturities of three ● Reclassifications Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. |
Note 3 - Valuation and Qualifyi
Note 3 - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 3 . VALUATION AND QUALIFYING ACCOUNTS ● Allowance for uncollectible accounts We maintain allowances for bad debts based on factors such as the composition of accounts receivable, the age of the accounts, historical bad debt experience, and our evaluation of the financial condition and past collection history of each customer. Write-offs have historically not been material, but are evaluated for write off as they are deemed uncollectible based on a periodic review of accounts. Our allowance for doubtful accounts was approximately $2,400 $1,700 December 31, 2016 2015, ● Sales returns and defective merchandise Product returns are generally recorded directly against sales as those returns occur. Historically, the amount of returns is immaterial and as a result, no reserve is recorded in the financial statements. ● Slow-moving and obsolete inventory The majority of inventory items maintained by us have no restrictive shelf life. We review all inventory items annually to determine what items should be eliminated from the product line. Items are selected for several reasons: (1) (2) (3) |
Note 4 - Balance Sheet Componen
Note 4 - Balance Sheet Components | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4. December 31, 2016 December 31, 20 15 INVENTORY On hand: Finished goods held for sale $ 30,684,026 $ 30,487,764 Raw materials and work in process 1,034,041 1,284,567 Inventory in transit 1,459,472 1,812,208 TOTAL $ 33,177,539 $ 33,584,539 PROPERTY AND EQUIPMENT Building $ 9,105,286 $ 9,232,066 Land 1,451,132 1,451,132 Leasehold improvements 1,350,916 1,192,761 Equipment and machinery 5,991,343 5,086,770 Furniture and fixtures 7,342,642 6,889,642 Vehicles 295,033 139,837 25,536,352 23,992,208 Less: accumulated depreciation (9,884,559 ) (8,297,155 ) TOTAL $ 15,651,793 $ 15,695,053 ACCRUED EXPENSES AND OTHER LIABILITIES Accrued bonuses $ 2,123,942 $ 2,631,971 Accrued payroll 689,150 255,058 Deferred revenue 909,297 902,236 Sales and payroll taxes payable 494,720 383,657 Inventory in transit 1,432,590 1,542,352 Other 287,488 330,278 TOTAL $ 5,937,187 $ 6,045,552 Depreciation expense was $1,717,548, $1,520,385, $1,391,422 December 31, 2016, 2015, 2014, Loss (gain) from abandonment and/or disposal of assets, which is included in operating expenses, is as follows, by segment: Year ended December 31 Wholesale Retail International Total 2016 $ 13,706 $ 3,993 $ ( 714 ) $ 16,985 2015 10,361 9,222 11,481 31,064 2014 7,681 11,089 47 18,820 |
Note 5 - Notes Payable and Long
Note 5 - Notes Payable and Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5. On September 18, 2015, $6,000,000 August 25, 2016, September 18, 2017 September 18, 2018. 1.5 1 1.2 1. four Also on September 18, 2015, $10,000,000 August 25, 2016, $10,000,000 $15,000,000 August 25, 2017 4 1900 820, December 31, 2016, $3.7 520,500 December 31, 2016, $7.6 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% (2.557% 2.263% December 31, 2016 December 31, 2015, On July 31, 2007, $5,500,000 191,000 30 1900 820 $4,050,000 April 30, 2008, 10 7.10% September 2015 $200,000 third 2015. On July 12, 2012, $4 $6 September 30, 2015. At December 31, 2016 2015 Business Loan Agreement with BOKF, NA – collateralized by real estate; payable as follows: Line of Credit Note, as amended, in the maximum principal amount of $15,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2021 $ 7,371,729 $ 3,711,225 Line of Credit Note, as amended, 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, 2018 - - $ 7,371,729 $ 3,711,225 Less current maturities 614,311 231,952 $ 6,757,419 $ 3,479,273 The terms of the above lines of credit contain various covenants for which we were in compliance as of December 31, 2016 2015. Scheduled maturities of the Company’s notes payable and long-term debt are as follows: 2017 $ 614,311 2018 1,842,932 2019 1,842,932 2020 1,842,932 2021 1,228,622 $ 7,371,729 |
Note 6 - Capital Lease Obligati
Note 6 - Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 6. We lease certain telecommunication equipment under a capital lease agreement. The asset subject to the agreement totaled $227,783, $210,904 $22,152 December 31, 2016 2015, $16,879 $205,631 December 31, 2016 2015, December 31, 2016 2015 $21,400 $300, At December 31, 20 16 20 15 Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 $ 73,994 $ 156,271 Less amount representing interest 1,308 4,189 Total obligation under capital lease 72,686 152,082 Less - Current maturities 72,686 72,686 Long term obligation under capital lease $ - $ 79,396 |
Note 7 - Employee Benefit and S
Note 7 - Employee Benefit and Savings Plan | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 7. We have a 401(k) 401(k) 2016, 2015, 2014, 100 first 3% 50% 2% Year Ended December 31, Maximum Matching Contribution per Participant * Total Matching Contribution 2016 $ 10,600 $ 277,753 2015 $ 10,600 $ 290,388 2014 $ 10,400 $ 286,224 * Due to the annual limit on eligible earnings imposed by the Internal Revenue Code The plan allows employees who meet the age requirements and reach the plan contribution limits to make a catch-up contribution. The catch-up contributions are not eligible for matching contributions. In addition, the plan provides for discretionary matching contributions as determined by the Board of Directors. There were no 2016, 2015, 2014. We currently offer no postretirement or postemployment benefits to our employees. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. The provision for income taxes consists of the following: 201 6 201 5 201 4 Current provision: Federal $ 3,108,894 $ 3,045,292 $ 3,368,974 State 486,565 482,186 548,225 3,595,459 3,527,478 3,917,199 Deferred provision (benefit): Federal 183,520 212,563 210,343 State 21,591 76,607 (26,853 ) 205,111 289,170 183,490 $ 3,800,570 $ 3,816,648 $ 4,100,689 Income before income taxes is earned in the following tax jurisdictions: 201 6 201 5 201 4 United States $ 9,070,894 $ 9,272,854 $ 10,339,632 United Kingdom (81,987 ) (43,567 ) 557,776 Canada 1,034,027 813,824 874,571 Australia 82,622 48,633 102,922 Spain 97,273 127,309 (67,291 ) $ 10,202,829 $ 10,219,053 $ 11,807,610 The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows: 201 6 201 5 Deferred income tax assets: Capitalized inventory costs $ 265,454 $ 260,385 Warrants and share-based compensation 44,151 44,151 Accrued expenses, reserves, and other 65,631 66,444 Total deferred income tax assets $ 375,236 $ 370,980 Deferred income tax liabilities: Property and equipment depreciation $ 1,728,265 $ 1,529,397 Goodwill and other intangible assets amortization 227,767 217,268 Total deferred income tax liabilities $ 1,956,032 $ 1,746,665 The effective tax rate differs from the statutory rate as follows: 201 6 201 5 201 4 Statutory rate – Federal US income tax 34 % 34 % 34 % State and local taxes 6 % 6 % 5 % Non-U.S. income tax at different rates - - (1 %) Domestic production activities deduction (1 %) (1 %) (1 %) Other, net (2 %) (2 %) (2 %) Effective rate 37 % 37 % 35 % We file a consolidated U.S. income tax return as well as state tax returns on a consolidated, combined, or stand-alone basis, depending on the jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to the tax year ended December 2014. December 2013 December 2014 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9 . COMMITMENTS AND CONTINGENCIES Operating Leases We lease our store locations under lease agreements that expire on dates ranging from February 2017 February 2026. December 31, 2016, 2015, 2014, $4,189,225, $3,844,641, $3,675,788, Future minimum lease payments under noncancelable operating leases at December 31, 2016 Year ending December 31: 2017 $ 3,914,550 2018 2,999,262 2019 2,256,721 2020 1,701,366 2021 1,074,070 2022 545,740 2023 427,800 2024 246,698 2025 180,922 2026 6,206 Total minimum lease payments $ 13,353,335 Legal Proceedings We are periodically involved in various other litigation that arises in the ordinary course of business and operations. There are no such matters pending that we expect to have a material impact on our financial position and operating results. Legal costs associated with the resolution of claims, lawsuits, and other contingencies are expensed as incurred. |
Note 10 - Significant Business
Note 10 - Significant Business Concentrations and Risk | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 10 . SIGNIFICANT BUSINESS CONCENTRATIONS AND RISK Major Customers Our revenues are derived from a diverse group of customers primarily involved in the sale of leathercraft. No single customer accounted for more than 1/2% 2016, 2015, 2014 five 1.4%, 1.3%, 1.7%, one Major Vendors We purchase a significant portion of our inventory through one Credit Risk Due to the large number of customers comprising our customer base, concentrations of credit risk with respect to customer receivables are limited. We do not generally require collateral for accounts receivable, but we do perform periodic credit evaluations of our customers and believe the allowance for doubtful accounts is adequate. It is our opinion that if any one We maintain our cash in bank deposit accounts that, at times, may |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 1 1 . STOCKHOLDERS' EQUITY a) Stock Option Plan In connection with its 2007 March 2017, six 100,000 All options expire ten 100,000 21,400 A summary of stock option transactions for the years ended December 31 20 16 20 15 20 14 Weighted Weighted Weighted Average Average Average Option Exercise Option Exercise Option Exercise Shares Price Shares Price Shares Price Outstanding at January 1 68,400 $ 5.17 72,400 $ 5.16 84,600 $ 5.04 Granted - - - - - - Forfeited or expired (12,000 ) 5.30 (2,000 ) 4.96 - - Exchanged - - - - - - Exercised - - (2,000 ) 4.96 (12,200 ) 4.32 Outstanding at December 31 56,400 $ 5.14 68,400 $ 5.17 72,400 $ 5.16 Exercisable at end of year 56,400 $ 5.14 68,400 $ 5.17 72,400 $ 5.16 Weighted-average fair value of options granted during year n/a n/a n/a The following table summarizes all of our outstanding options which are fully vested and exercisable at December 31, 2016: Options Outstanding & Exercisable Weighted Weighted Average Average Option Exercise Maturity Exercise Price Range Shares Price (Years) $4.41 20,400 $ 4.41 3.77 $4.80 9,000 4.80 4.22 $5.30 to $6.87 27,000 5.81 4.95 56,400 $ 5.14 4.41 Other information pertaining to option activity during the twelve December 31 2016 2015 2014 Weighted average grant-date fair value of stock options granted n/a n/a n/a Total fair value of stock options vested n/a n/a n/a Total intrinsic value of stock options exercised $ - $ 2,953 $ 14,816 As of December 31, 2016, Cash received from the exercise of stock options for the years ended December 31, 2016, 2015, 2014 $9,920 $52,722, Because we had no awards of stock options in 2016, 2015 2014, We have a restricted stock plan that was adopted by our Board of Directors in January 2013 June 2013. 300,000 may may four In February 2014, 9,375 four 1,619 February 2015, 9,344 four 1,613 March 2016, 11,765 five 2,031 2016, 2015, 2014, $199,870, $145,321, $67,818, A summary of the activity for nonvested restricted common stock awards as of December 31, 2016 2015 Shares Grant Fair Value Balance, January 1, 2015 34,601 $ 8.96 Granted 34,484 8.99 Forfeited - - Vested (8,652 ) 8.96 Balance, December 31, 2015 60,433 $ 8.97 Balance, January 1, 2016 60,433 $ 8.97 Granted 33,685 7.14 Forfeited (8,187 ) 8.97 Vested (20,784 ) 8.97 Balance, December 31, 2016 65,147 $ 8.03 As of December 31, 2016, $374,040 2017 $ 173,136 2018 123,693 2019 67,190 2020 10,021 Of the 300,000 197,230 b) Cash Dividend On June 9, 2014, $0.25 one July 7, 2014. $2.5 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. c) Stockholder Rights Plan On June 6, 2013, one $0.0024 June 16, 2013. one one $30.00 20% tender 20% The Rights, as amended, will expire at 5:00 June 6, 2017, d) Share Repurchase Program In August 2015, may 1.2 August 2016. June 7, 2016, 1.2 2.2 August 9, 2016 August 9, 2017. 2016, 520,500 $7.06, $3.7 2015, 529,000 $7.01, $3.7 2014. |
Note 12 - Segment Information
Note 12 - Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 12. We identify our segments based on the activities of three a. Wholesale Leathercraft The Leather Factory b. Retail Leathercraft Tandy Leather Company c. International Leathercraft four One October 2015. Our reportable operating segments have been determined as separately identifiable business units and we measure segment earnings as operating earnings, defined as income before interest and income taxes. Wholesale Leathercraft Retail Leathercraft International Leathercraft Total For the year ended December 31, 2016 Net Sales $ 25,371,580 $ 53,670,340 $ 3,882,072 $ 82,923,992 Gross Profit 18,097,205 31,217,798 2,398,239 51,713,242 Operating earnings 5,254,227 4,970,546 75,958 10,300,731 Interest expense 155,189 - - 155,189 Other expense, net (35,290 ) - (21,997 ) (57,287 ) Income before income taxes 5,134,328 4,970,546 97,955 10,202,829 Depreciation and amortization 969,202 662,332 87,620 1,719,154 Fixed asset additions 869,250 740,578 87,875 1,697,704 Total assets $ 50,067,046 $ 16,435,386 $ 4,150,288 $ 70,652,720 For the year ended December 31, 2015 Net Sales $ 26,754,165 $ 53,714,432 $ 3,692,603 $ 84,161,200 Gross Profit 18,579,494 31,258,961 2,232,605 52,071,060 Operating earnings 4,663,590 5,689,814 121,296 10,474,700 Interest expense 330,004 - - 330,004 Other expense, net (63,230 ) - (11,127 ) (74,357 ) Income before income taxes 4,396,816 5,689,814 132,423 10,219,053 Depreciation and amortization 950,174 559,418 57,580 1,567,172 Fixed asset additions 945,998 932,231 285,811 2,164,040 Total assets $ 42,141,174 $ 17,753,324 $ 4,716,578 $ 64,611,076 For the year ended December 31, 2014 Net Sales $ 27,285,884 $ 51,805,944 $ 4,339,084 $ 83,430,912 Gross Profit 18,393,969 30,880,718 2,850,070 52,124,757 Operating earnings 5,300,413 6,077,345 580,271 11,958,029 Interest expense 225,584 - - 225,584 Other expense, net (61,984 ) - (13,181 ) (75,165 ) Income before income taxes 5,136,813 6,077,345 593,452 11,807,610 Depreciation and amortization 911,327 460,534 64,763 1,436,624 Fixed asset additions 909,260 1,243,123 51,807 2,204,190 Total assets $ 43,000,030 $ 16,608,386 $ 3,265,458 $ 62,873,874 Net sales by geographic areas were as follows: 201 6 201 5 20 14 United States $ 70,886,401 $ 72,061,009 $ 69,791,099 Canada 7,199,155 7,543,468 8,342,896 All other countries 4,838,436 4,556,723 5,296,917 $ 82,923,992 $ 84,161,200 $ 83,430,912 Geographic sales information is based on the location of the customer. Except for Canada, we had no sales to any single foreign country that was material to our consolidated net sales for the years ended December 31, 2016, 2015, 2014. |
Note 13 - Recent Accounting Pro
Note 13 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 1 3. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, 2014 09, 606, December 15, 2016. April 2015, 2015 24, one July 7, 2015, one December 15, 2017. 2018 2017 2014 09 0.5% In November 2015, 2015 17, December 15, 2016, may In February 2016, 2016 02, one December 15, 2018, |
Note 14 - Quarterly Financial D
Note 14 - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 14. First Second Third Fourth 20 16 Quarter Quarter Quarter Quarter Net sales $ 20,672,227 $ 19,552,905 $ 18,628,362 $ 24,100,498 Gross profit 12,652,746 12,895,790 11,644,871 14,519,835 Net income 1,520,997 1,820,915 1,000,350 2,059,997 Net income per common share: Basic $ 0.16 $ 0.19 $ 0.11 $ 0.23 Diluted $ 0.16 $ 0.19 $ 0.11 $ 0.23 Weighted average number of common shares outstanding: Basic 9,698,951 9,209,446 9,188,483 9,188,483 Diluted 9,718,453 9,227,941 9,206,382 9,301,867 First Second Third Fourth 20 15 Quarter Quarter Quarter Quarter Net sales $ 20,788,764 $ 19,773,528 $ 19,355,937 $ 24,292,971 Gross profit 12,582,927 12,814,382 11,832,697 14,841,054 Net income 1,444,407 1,507,896 1,111,344 2,338,758 Net income per common share: Basic $ 0.14 $ 0.15 $ 0.11 $ 0.24 Diluted $ 0.14 $ 0.15 $ 0.11 $ 0.24 Weighted average number of common shares outstanding: Basic 10,211,333 10,212,933 10,175,650 9,692,860 Diluted 10,241,096 10,241,164 10,199,092 9,712,571 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | ● Management estimates and reporting The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Assets and liabilities with reported amounts based on significant estimates include trade accounts receivable, inventory (slow-moving), goodwill, and deferred income taxes. |
Consolidation, Policy [Policy Text Block] | ● Principles of consolidation Our consolidated financial statements include the accounts of Tandy Leather Factory, Inc. and its wholly owned subsidiaries, The Leather Factory, L.P. (a Texas limited partnership) and its corporate partners, Tandy Leather Company, L.P. (a Texas limited partnership) and its corporate partners, Mid-Continent Leather Sales, Inc. (an Oklahoma corporation), Roberts, Cushman & Company, Inc. (a Texas corporation), The Leather Factory of Canada, Ltd. (a Canadian corporation), Tandy Leather Factory UK Limited (a UK corporation), Tandy Leather Factory Australia Pty. Limited (an Australian corporation), and Tandy Leather Factory España, S.L. (a Spanish corporation). All intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ● Foreign currency translation and transactions Foreign currency translation adjustments arise from activities of our foreign subsidiaries. Results of operations are translated into U.S. dollars using the average exchange rates during the period, while assets and liabilities are translated using period-end exchange rates. Foreign currency translation adjustments of assets and liabilities are recorded in stockholders’ equity. Gains and losses resulting from foreign currency transactions are reported in the statements of income under the caption “Other (Income) Expense”, net, for all periods presented. We recognized foreign currency transaction gains (losses) of $19,000, $24,000, ($13,900), 2016, 2015, 2014, |
Revenue Recognition, Policy [Policy Text Block] | ● Revenue recognition Our sales generally occur via two (1) (2) We offer an unconditional satisfaction guarantee to all customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. |
Revenue Recognition, Discounts [Policy Text Block] | ● Discounts We maintain four |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | ● Expense categories Cost of goods sold includes inbound freight and duty charges from vendors to our central warehouse, freight and handling charges to move merchandise from our central warehouse to our stores, and manufacturing overhead, as appropriate. Operating expenses include all selling, general and administrative costs including wages and related employee expenses (payroll taxes, health benefits, savings plans, etc.), advertising, outbound freight charges (to ship merchandise to customers), rent, and utilities. |
Property, Plant and Equipment, Policy [Policy Text Block] | ● Property and equipment, net of accumulated depreciation and amortization Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are three ten seven fifteen five forty |
Inventory, Policy [Policy Text Block] | ● Inventory Inventory is valued at the lower of first first |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ● Impairment of long-lived assets We evaluate long-lived assets for indicators of impairment whenever events or changes in circumstances indicate their carrying amounts may |
Earnings Per Share, Policy [Policy Text Block] | ● Earnings per share Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes, to the extent inclusion of such shares would be dilutive to earnings per share, the effect of outstanding options and warrants, computed using the treasury stock method. BASIC 2016 2015 2014 Net income $ 6,402,259 $ 6,402,405 $ 7,706,921 Weighted average common shares outstanding 9,301,867 10,077,506 10,203,063 Earnings per share – basic $ 0.69 $ 0.64 $ 0.76 DILUTED Net income $ 6,402,259 $ 6,402,405 $ 7,706,921 Weighted average common shares outstanding 9,301,867 10,077,506 10,203,063 Effect of restricted stock awards and assumed exercise of stock options 19,691 25,254 38,058 Weighted average common shares outstanding, assuming dilution 9,321,558 10,102,760 10,241,121 Earnings per share - diluted $ 0.69 $ 0.63 $ 0.75 Outstanding options and restricted stock awards excluded as anti-dilutive 31,477 60,433 - For additional disclosures regarding the restricted stock awards and the employee stock options, see Note 11. 90,085, 68,400, 107,001 December 31, 2016, 2015, 2014, |
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. Goodwill is not amortized, but is evaluated at least annually for impairment. We completed our annual goodwill impairment analysis as of December 31 December 31, 2016, 2015, 2014 A summary of changes in our goodwill is as follows: Leather Factory Tandy Leather Total Balance, January 1, 2015 $ 588,380 $ 383,406 $ 971,786 Foreign exchange gain/loss (18,430 ) - (18,430 ) Balance, December 31, 2015 $ 569,950 $ 383,406 $ 953,356 Foreign exchange gain/loss 2,845 - 2,845 Balance, December 31, 2016 $ 572,795 $ 383,406 $ 956,201 Our intangible assets and related accumulated amortization consisted of the following: As of December 31, 20 16 Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 545,279 $ 9,090 Non-Compete Agreements 175,316 163,566 11,750 $ 729,685 $ 708,845 $ 20,840 As of December 31, 2015 Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 544,504 $ 9,865 Non-Compete Agreements 174,665 157,248 17,417 $ 729,034 $ 701,752 $ 27,282 Excluding goodwill, we have no intangible assets not subject to amortization under U.S. GAAP. Amortization of intangible assets of $6,442 2016, $40,744 2015, $45,202 2014 15 five Leather Factory Tandy Leather Total 2017 90 1,667 1,757 2018 - 1,417 1,417 2019 - 666 666 2020 - 666 666 2021 - 666 666 Thereafter - 5,668 5,668 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ● Fair value of financial Instruments We measure fair value as an exit price, which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering such assumptions, accounting standards establish a three Level 1 Level 2 Level 3 Classification of the financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Our principal financial instruments held consist of certificates of deposit, accounts receivable, accounts payable, notes payable, and long-term debt. The carrying value of certificates of deposit, accounts receivable and accounts payable approximate their fair value due to the relatively short-term nature of the accounts. The terms of the long-term debt are considered reasonable for this type of financing; therefore, the carrying amount approximates fair value. |
Income Tax, Policy [Policy Text Block] | ● Income taxes We account for income taxes using the asset and liability method. Under this method, the amount of taxes currently payable or refundable is accrued, and deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in tax rate is recognized through continuing operations in the period that includes the enactment date of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A tax benefit from an uncertain tax position may We recognize tax liabilities for uncertain tax positions and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may We may may |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ● Share-based compensation We have one ten six 2016, 2015 2014, We also have a restricted stock plan that was adopted by our Board of Directors in January 2013 June 2013. 300,000 may may four four |
Comprehensive Income, Policy [Policy Text Block] | ● Comprehensive income Comprehensive income includes net income and certain other items that are recorded directly to Stockholders’ Equity. The Company’s only source of other comprehensive income is foreign currency translation adjustments. |
Shipping and Handling Cost, Policy [Policy Text Block] | ● Shipping and handling costs All shipping and handling costs incurred by us are included in operating expenses on the statements of income. These costs totaled approximately $1,982,000, $2,012,000, $2,046,000 December 31, 2016, 2015, 2014, |
Advertising Costs, Policy, Capitalized Direct Response Advertising [Policy Text Block] | ● Advertising With the exception of catalog costs, advertising costs are expensed as incurred. Catalog costs are capitalized and expensed over the estimated useful life of the particular catalog in question, which is typically twelve eighteen $213,000 $181,000 December 31, 2016 2015, $4,759,000 2016; $4,826,000 2015; $4,339,000 2014. |
Cash and Cash Equivalents, Policy [Policy Text Block] | ● Cash flows presentation For purposes of the statement of cash flows, we consider all highly liquid investments with initial maturities of three |
Reclassification, Policy [Policy Text Block] | ● Reclassifications Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. |
Note 2 - Significant Accounti22
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | BASIC 2016 2015 2014 Net income $ 6,402,259 $ 6,402,405 $ 7,706,921 Weighted average common shares outstanding 9,301,867 10,077,506 10,203,063 Earnings per share – basic $ 0.69 $ 0.64 $ 0.76 DILUTED Net income $ 6,402,259 $ 6,402,405 $ 7,706,921 Weighted average common shares outstanding 9,301,867 10,077,506 10,203,063 Effect of restricted stock awards and assumed exercise of stock options 19,691 25,254 38,058 Weighted average common shares outstanding, assuming dilution 9,321,558 10,102,760 10,241,121 Earnings per share - diluted $ 0.69 $ 0.63 $ 0.75 Outstanding options and restricted stock awards excluded as anti-dilutive 31,477 60,433 - |
Schedule of Goodwill [Table Text Block] | Leather Factory Tandy Leather Total Balance, January 1, 2015 $ 588,380 $ 383,406 $ 971,786 Foreign exchange gain/loss (18,430 ) - (18,430 ) Balance, December 31, 2015 $ 569,950 $ 383,406 $ 953,356 Foreign exchange gain/loss 2,845 - 2,845 Balance, December 31, 2016 $ 572,795 $ 383,406 $ 956,201 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 20 16 Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 545,279 $ 9,090 Non-Compete Agreements 175,316 163,566 11,750 $ 729,685 $ 708,845 $ 20,840 As of December 31, 2015 Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 544,504 $ 9,865 Non-Compete Agreements 174,665 157,248 17,417 $ 729,034 $ 701,752 $ 27,282 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Leather Factory Tandy Leather Total 2017 90 1,667 1,757 2018 - 1,417 1,417 2019 - 666 666 2020 - 666 666 2021 - 666 666 Thereafter - 5,668 5,668 |
Note 4 - Balance Sheet Compon23
Note 4 - Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | December 31, 2016 December 31, 20 15 INVENTORY On hand: Finished goods held for sale $ 30,684,026 $ 30,487,764 Raw materials and work in process 1,034,041 1,284,567 Inventory in transit 1,459,472 1,812,208 TOTAL $ 33,177,539 $ 33,584,539 PROPERTY AND EQUIPMENT Building $ 9,105,286 $ 9,232,066 Land 1,451,132 1,451,132 Leasehold improvements 1,350,916 1,192,761 Equipment and machinery 5,991,343 5,086,770 Furniture and fixtures 7,342,642 6,889,642 Vehicles 295,033 139,837 25,536,352 23,992,208 Less: accumulated depreciation (9,884,559 ) (8,297,155 ) TOTAL $ 15,651,793 $ 15,695,053 ACCRUED EXPENSES AND OTHER LIABILITIES Accrued bonuses $ 2,123,942 $ 2,631,971 Accrued payroll 689,150 255,058 Deferred revenue 909,297 902,236 Sales and payroll taxes payable 494,720 383,657 Inventory in transit 1,432,590 1,542,352 Other 287,488 330,278 TOTAL $ 5,937,187 $ 6,045,552 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Year ended December 31 Wholesale Retail International Total 2016 $ 13,706 $ 3,993 $ ( 714 ) $ 16,985 2015 10,361 9,222 11,481 31,064 2014 7,681 11,089 47 18,820 |
Note 5 - Notes Payable and Lo24
Note 5 - Notes Payable and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 2016 2015 Business Loan Agreement with BOKF, NA – collateralized by real estate; payable as follows: Line of Credit Note, as amended, in the maximum principal amount of $15,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2021 $ 7,371,729 $ 3,711,225 Line of Credit Note, as amended, 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, 2018 - - $ 7,371,729 $ 3,711,225 Less current maturities 614,311 231,952 $ 6,757,419 $ 3,479,273 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2017 $ 614,311 2018 1,842,932 2019 1,842,932 2020 1,842,932 2021 1,228,622 $ 7,371,729 |
Note 6 - Capital Lease Obliga25
Note 6 - Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Capital Lease Obligations [Table Text Block] | 20 16 20 15 Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 $ 73,994 $ 156,271 Less amount representing interest 1,308 4,189 Total obligation under capital lease 72,686 152,082 Less - Current maturities 72,686 72,686 Long term obligation under capital lease $ - $ 79,396 |
Note 7 - Employee Benefit and26
Note 7 - Employee Benefit and Savings Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Defined Contribution Plan Disclosures [Table Text Block] | Year Ended December 31, Maximum Matching Contribution per Participant * Total Matching Contribution 2016 $ 10,600 $ 277,753 2015 $ 10,600 $ 290,388 2014 $ 10,400 $ 286,224 |
Note 8 - Income Taxes (Tables)
Note 8 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 201 6 201 5 201 4 Current provision: Federal $ 3,108,894 $ 3,045,292 $ 3,368,974 State 486,565 482,186 548,225 3,595,459 3,527,478 3,917,199 Deferred provision (benefit): Federal 183,520 212,563 210,343 State 21,591 76,607 (26,853 ) 205,111 289,170 183,490 $ 3,800,570 $ 3,816,648 $ 4,100,689 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 201 6 201 5 201 4 United States $ 9,070,894 $ 9,272,854 $ 10,339,632 United Kingdom (81,987 ) (43,567 ) 557,776 Canada 1,034,027 813,824 874,571 Australia 82,622 48,633 102,922 Spain 97,273 127,309 (67,291 ) $ 10,202,829 $ 10,219,053 $ 11,807,610 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 201 6 201 5 Deferred income tax assets: Capitalized inventory costs $ 265,454 $ 260,385 Warrants and share-based compensation 44,151 44,151 Accrued expenses, reserves, and other 65,631 66,444 Total deferred income tax assets $ 375,236 $ 370,980 Deferred income tax liabilities: Property and equipment depreciation $ 1,728,265 $ 1,529,397 Goodwill and other intangible assets amortization 227,767 217,268 Total deferred income tax liabilities $ 1,956,032 $ 1,746,665 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 201 6 201 5 201 4 Statutory rate – Federal US income tax 34 % 34 % 34 % State and local taxes 6 % 6 % 5 % Non-U.S. income tax at different rates - - (1 %) Domestic production activities deduction (1 %) (1 %) (1 %) Other, net (2 %) (2 %) (2 %) Effective rate 37 % 37 % 35 % |
Note 9 - Commitments and Cont28
Note 9 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending December 31: 2017 $ 3,914,550 2018 2,999,262 2019 2,256,721 2020 1,701,366 2021 1,074,070 2022 545,740 2023 427,800 2024 246,698 2025 180,922 2026 6,206 Total minimum lease payments $ 13,353,335 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 20 16 20 15 20 14 Weighted Weighted Weighted Average Average Average Option Exercise Option Exercise Option Exercise Shares Price Shares Price Shares Price Outstanding at January 1 68,400 $ 5.17 72,400 $ 5.16 84,600 $ 5.04 Granted - - - - - - Forfeited or expired (12,000 ) 5.30 (2,000 ) 4.96 - - Exchanged - - - - - - Exercised - - (2,000 ) 4.96 (12,200 ) 4.32 Outstanding at December 31 56,400 $ 5.14 68,400 $ 5.17 72,400 $ 5.16 Exercisable at end of year 56,400 $ 5.14 68,400 $ 5.17 72,400 $ 5.16 Weighted-average fair value of options granted during year n/a n/a n/a |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding & Exercisable Weighted Weighted Average Average Option Exercise Maturity Exercise Price Range Shares Price (Years) $4.41 20,400 $ 4.41 3.77 $4.80 9,000 4.80 4.22 $5.30 to $6.87 27,000 5.81 4.95 56,400 $ 5.14 4.41 |
Schedule of Share-based Compensation, Activity [Table Text Block] | 2016 2015 2014 Weighted average grant-date fair value of stock options granted n/a n/a n/a Total fair value of stock options vested n/a n/a n/a Total intrinsic value of stock options exercised $ - $ 2,953 $ 14,816 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Grant Fair Value Balance, January 1, 2015 34,601 $ 8.96 Granted 34,484 8.99 Forfeited - - Vested (8,652 ) 8.96 Balance, December 31, 2015 60,433 $ 8.97 Balance, January 1, 2016 60,433 $ 8.97 Granted 33,685 7.14 Forfeited (8,187 ) 8.97 Vested (20,784 ) 8.97 Balance, December 31, 2016 65,147 $ 8.03 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | 2017 $ 173,136 2018 123,693 2019 67,190 2020 10,021 |
Note 12 - Segment Information (
Note 12 - Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Wholesale Leathercraft Retail Leathercraft International Leathercraft Total For the year ended December 31, 2016 Net Sales $ 25,371,580 $ 53,670,340 $ 3,882,072 $ 82,923,992 Gross Profit 18,097,205 31,217,798 2,398,239 51,713,242 Operating earnings 5,254,227 4,970,546 75,958 10,300,731 Interest expense 155,189 - - 155,189 Other expense, net (35,290 ) - (21,997 ) (57,287 ) Income before income taxes 5,134,328 4,970,546 97,955 10,202,829 Depreciation and amortization 969,202 662,332 87,620 1,719,154 Fixed asset additions 869,250 740,578 87,875 1,697,704 Total assets $ 50,067,046 $ 16,435,386 $ 4,150,288 $ 70,652,720 For the year ended December 31, 2015 Net Sales $ 26,754,165 $ 53,714,432 $ 3,692,603 $ 84,161,200 Gross Profit 18,579,494 31,258,961 2,232,605 52,071,060 Operating earnings 4,663,590 5,689,814 121,296 10,474,700 Interest expense 330,004 - - 330,004 Other expense, net (63,230 ) - (11,127 ) (74,357 ) Income before income taxes 4,396,816 5,689,814 132,423 10,219,053 Depreciation and amortization 950,174 559,418 57,580 1,567,172 Fixed asset additions 945,998 932,231 285,811 2,164,040 Total assets $ 42,141,174 $ 17,753,324 $ 4,716,578 $ 64,611,076 For the year ended December 31, 2014 Net Sales $ 27,285,884 $ 51,805,944 $ 4,339,084 $ 83,430,912 Gross Profit 18,393,969 30,880,718 2,850,070 52,124,757 Operating earnings 5,300,413 6,077,345 580,271 11,958,029 Interest expense 225,584 - - 225,584 Other expense, net (61,984 ) - (13,181 ) (75,165 ) Income before income taxes 5,136,813 6,077,345 593,452 11,807,610 Depreciation and amortization 911,327 460,534 64,763 1,436,624 Fixed asset additions 909,260 1,243,123 51,807 2,204,190 Total assets $ 43,000,030 $ 16,608,386 $ 3,265,458 $ 62,873,874 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 201 6 201 5 20 14 United States $ 70,886,401 $ 72,061,009 $ 69,791,099 Canada 7,199,155 7,543,468 8,342,896 All other countries 4,838,436 4,556,723 5,296,917 $ 82,923,992 $ 84,161,200 $ 83,430,912 |
Note 14 - Quarterly Financial31
Note 14 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | First Second Third Fourth 20 16 Quarter Quarter Quarter Quarter Net sales $ 20,672,227 $ 19,552,905 $ 18,628,362 $ 24,100,498 Gross profit 12,652,746 12,895,790 11,644,871 14,519,835 Net income 1,520,997 1,820,915 1,000,350 2,059,997 Net income per common share: Basic $ 0.16 $ 0.19 $ 0.11 $ 0.23 Diluted $ 0.16 $ 0.19 $ 0.11 $ 0.23 Weighted average number of common shares outstanding: Basic 9,698,951 9,209,446 9,188,483 9,188,483 Diluted 9,718,453 9,227,941 9,206,382 9,301,867 First Second Third Fourth 20 15 Quarter Quarter Quarter Quarter Net sales $ 20,788,764 $ 19,773,528 $ 19,355,937 $ 24,292,971 Gross profit 12,582,927 12,814,382 11,832,697 14,841,054 Net income 1,444,407 1,507,896 1,111,344 2,338,758 Net income per common share: Basic $ 0.14 $ 0.15 $ 0.11 $ 0.24 Diluted $ 0.14 $ 0.15 $ 0.11 $ 0.24 Weighted average number of common shares outstanding: Basic 10,211,333 10,212,933 10,175,650 9,692,860 Diluted 10,241,096 10,241,164 10,199,092 9,712,571 |
Note 2 - Significant Accounti32
Note 2 - Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Currency Transaction Gain (Loss), Realized | $ 19,000 | $ 24,000 | $ (13,900) | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 90,085 | 68,400 | 107,001 | |
Amortization of Intangible Assets | $ 6,442 | $ 40,744 | $ 45,202 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | |||
Shipping, Handling and Transportation Costs | $ 1,982,000 | 2,012,000 | 2,046,000 | |
Capitalized Catalog, Costs | 213,000 | 181,000 | ||
Advertising Expense | $ 4,759,000 | $ 4,826,000 | $ 4,339,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | |
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 0 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | |||
1995 Stock Option Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Trademarks [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Copyrights [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Minimum [Member] | ||||
Capitalized Catalog, Useful Life | 1 year | |||
Maximum [Member] | ||||
Capitalized Catalog, Useful Life | 1 year 180 days | |||
Machinery and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Vehicles [Member] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Building and Building Improvements [Member] | ||||
Property, Plant and Equipment, Useful Life | 40 years |
Note 2 - Significant Accounti33
Note 2 - Significant Accounting Policies - Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 2,059,997 | $ 1,000,350 | $ 1,820,915 | $ 1,520,997 | $ 2,338,758 | $ 1,111,344 | $ 1,507,896 | $ 1,444,407 | $ 6,402,259 | $ 6,402,405 | $ 7,706,921 |
Weighted average common shares outstanding (in shares) | 9,188,483 | 9,188,483 | 9,209,446 | 9,698,951 | 9,692,860 | 10,175,650 | 10,212,933 | 10,211,333 | 9,301,867 | 10,077,506 | 10,203,063 |
Earnings per share – basic (in dollars per share) | $ 0.23 | $ 0.11 | $ 0.19 | $ 0.16 | $ 0.24 | $ 0.11 | $ 0.15 | $ 0.14 | $ 0.69 | $ 0.64 | $ 0.76 |
DILUTED | |||||||||||
Net income | $ 2,059,997 | $ 1,000,350 | $ 1,820,915 | $ 1,520,997 | $ 2,338,758 | $ 1,111,344 | $ 1,507,896 | $ 1,444,407 | $ 6,402,259 | $ 6,402,405 | $ 7,706,921 |
Weighted average common shares outstanding (in shares) | 9,188,483 | 9,188,483 | 9,209,446 | 9,698,951 | 9,692,860 | 10,175,650 | 10,212,933 | 10,211,333 | 9,301,867 | 10,077,506 | 10,203,063 |
Effect of restricted stock awards and assumed exercise of stock options (in shares) | 19,691 | 25,254 | 38,058 | ||||||||
Weighted average common shares outstanding, assuming dilution (in shares) | 9,301,867 | 9,206,382 | 9,227,941 | 9,718,453 | 9,712,571 | 10,199,092 | 10,241,164 | 10,241,096 | 9,321,558 | 10,102,760 | 10,241,121 |
Earnings per share - diluted (in dollars per share) | $ 0.23 | $ 0.11 | $ 0.19 | $ 0.16 | $ 0.24 | $ 0.11 | $ 0.15 | $ 0.14 | $ 0.69 | $ 0.63 | $ 0.75 |
Outstanding options and restricted stock awards excluded as anti-dilutive (in shares) | 31,477 | 60,433 |
Note 2 - Significant Accounti34
Note 2 - Significant Accounting Policies - Summary of Changes in Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 953,356 | $ 971,786 |
Foreign exchange gain/loss | 2,845 | (18,430) |
Balance | 956,201 | 953,356 |
Leather Factory [Member] | ||
Balance | 569,950 | 588,380 |
Foreign exchange gain/loss | 2,845 | (18,430) |
Balance | 572,795 | 569,950 |
Tandy Leather [Member] | ||
Balance | 383,406 | 383,406 |
Foreign exchange gain/loss | ||
Balance | $ 383,406 | $ 383,406 |
Note 2 - Significant Accounti35
Note 2 - Significant Accounting Policies - Intangible Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Other intangibles, gross | $ 729,685 | $ 729,034 |
Accumulated Amortization | 708,845 | 701,752 |
Other intangibles, net | 20,840 | 27,282 |
Trademarks and Copyrights [Member] | ||
Other intangibles, gross | 554,369 | 554,369 |
Accumulated Amortization | 545,279 | 544,504 |
Other intangibles, net | 9,090 | 9,865 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 175,316 | 174,665 |
Accumulated Amortization | 163,566 | 157,248 |
Other intangibles, net | $ 11,750 | $ 17,417 |
Note 2 - Significant Accounti36
Note 2 - Significant Accounting Policies - Estimated Amortization Expense (Details) | Dec. 31, 2016USD ($) |
2,017 | $ 1,757 |
2,018 | 1,417 |
2,019 | 666 |
2,020 | 666 |
2,021 | 666 |
Thereafter | 5,668 |
Wholesale Leathercraft [Member] | |
2,017 | 90 |
2,018 | |
2,019 | |
2,020 | |
2,021 | |
Thereafter | |
Retail Leathercraft [Member] | |
2,017 | 1,667 |
2,018 | 1,417 |
2,019 | 666 |
2,020 | 666 |
2,021 | 666 |
Thereafter | $ 5,668 |
Note 3 - Valuation and Qualif37
Note 3 - Valuation and Qualifying Accounts (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Doubtful Accounts Receivable | $ 2,400 | $ 1,700 |
Note 4 - Balance Sheet Compon38
Note 4 - Balance Sheet Components (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation | $ 1,717,548 | $ 1,520,385 | $ 1,391,422 |
Note 4 - Balance Sheet Compon39
Note 4 - Balance Sheet Components - Schedule of Balance Sheet Components (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
On hand: | ||
Finished goods held for sale | $ 30,684,026 | $ 30,487,764 |
Raw materials and work in process | 1,034,041 | 1,284,567 |
Inventory in transit | 1,459,472 | 1,812,208 |
TOTAL | 33,177,539 | 33,584,539 |
PROPERTY AND EQUIPMENT | ||
Building | 9,105,286 | 9,232,066 |
Land | 1,451,132 | 1,451,132 |
Leasehold improvements | 1,350,916 | 1,192,761 |
Equipment and machinery | 5,991,343 | 5,086,770 |
Furniture and fixtures | 7,342,642 | 6,889,642 |
Vehicles | 295,033 | 139,837 |
PROPERTY AND EQUIPMENT, at cost | 25,536,352 | 23,992,208 |
Less accumulated depreciation and amortization | (9,884,559) | (8,297,155) |
TOTAL | 15,651,793 | 15,695,053 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued bonuses | 2,123,942 | 2,631,971 |
Accrued payroll | 689,150 | 255,058 |
Deferred revenue | 909,297 | 902,236 |
Sales and payroll taxes payable | 494,720 | 383,657 |
Inventory in transit | 1,432,590 | 1,542,352 |
Other | 287,488 | 330,278 |
TOTAL | $ 5,937,187 | $ 6,045,552 |
Note 4 - Balance Sheet Compon40
Note 4 - Balance Sheet Components - Loss From Abandonment and (or) Disposal of Obsolete Equipment, by Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss on disposal or abandonment of assets | $ 16,985 | $ 31,064 | $ 18,820 |
Wholesale Leathercraft [Member] | |||
Loss on disposal or abandonment of assets | 13,706 | 10,361 | 7,681 |
Retail Leathercraft [Member] | |||
Loss on disposal or abandonment of assets | 3,993 | 9,222 | 11,089 |
International Leathercraft [Member] | |||
Loss on disposal or abandonment of assets | $ (714) | $ 11,481 | $ 47 |
Note 5 - Notes Payable and Lo41
Note 5 - Notes Payable and Long-term Debt (Details Textual) | Sep. 18, 2015USD ($) | Apr. 30, 2008 | Jul. 31, 2007USD ($)ft²a | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Aug. 25, 2016USD ($) | Jun. 23, 2014USD ($) | Jul. 12, 2012USD ($) |
Proceeds from Issuance of Long-term Debt | $ 3,660,505 | $ 3,711,225 | ||||||||
Treasury Stock, Shares, Acquired | shares | 520,500 | 529,000 | 0 | |||||||
Promissory Note and Business Loan Agreement with BOKF [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | |||||||||
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 with BOKF [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | $ 15,000,000 | ||||||||
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 | $ 7,600,000 | |||||||||
Two Promissory Notes with BOKF [Member] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.557% | 2.263% | ||||||||
Two Promissory Notes with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | |||||||||
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 | |||||||||
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] | Term Note [Member] | Interest Expense [Member] | ||||||||||
Debt Instrument, Prepayment Penalty | $ 200,000 | |||||||||
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 | |||||||||
Line of Credit Note with JPMorgan Chase Bank, N.A.[Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | $ 4,000,000 |
Note 5 - Notes Payable and Lo42
Note 5 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Line of Credit Note | $ 7,371,729 | |
7,371,729 | $ 3,711,225 | |
Current maturities of long-term debt | 614,311 | 231,952 |
LONG-TERM DEBT, net of current maturities | 6,757,419 | 3,479,273 |
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 |
Note 5 - Notes Payable and Lo43
Note 5 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Promissory Note with BOKF [Member] | ||
Line of Credit Note, Principal Amount | $ 15,000,000 | $ 15,000,000 |
Promissory Note 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 |
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% |
Note 5 - Notes Payable and Lo44
Note 5 - Notes Payable and Long-term Debt - Schedule of Notes Payable Debt Maturities (Details) | Dec. 31, 2016USD ($) |
2,017 | $ 614,311 |
2,018 | 1,842,932 |
2,019 | 1,842,932 |
2,020 | 1,842,932 |
2,021 | 1,228,622 |
$ 7,371,729 |
Note 6 - Capital Lease Obliga45
Note 6 - Capital Lease Obligations (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Leased Assets, Gross | $ 227,783 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 21,400 | $ 300 |
Property and Equipment [Member] | ||
Capital Leased Assets, Gross | 210,904 | 22,152 |
Prepaid Equipment [Member] | ||
Capital Leased Assets, Gross | $ 16,879 | $ 205,631 |
Note 6 - Capital Lease Obliga46
Note 6 - Capital Lease Obligations - Capital Lease Obligations (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 | $ 73,994 | $ 156,271 |
Less amount representing interest | 1,308 | 4,189 |
Total obligation under capital lease | 72,686 | 152,082 |
Less - Current maturities | 72,686 | 72,686 |
Long term obligation under capital lease | $ 79,396 |
Note 6 - Capital Lease Obliga47
Note 6 - Capital Lease Obligations - Capital Lease Obligations (Details) (Parentheticals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Annual principal payments | $ 72,686 | $ 72,686 |
Interest rate | 1.80% | 1.80% |
Note 7 - Employee Benefit and48
Note 7 - Employee Benefit and Savings Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 | $ 0 |
100% Matching [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 100.00% | 100.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | 3.00% | 3.00% |
50% Matching [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | 50.00% | 50.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | 2.00% | 2.00% |
Note 7 - Employee Benefit and49
Note 7 - Employee Benefit and Savings Plans - Contributions to 401(k) Plan (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Maximum Matching Contribution per Participant* | [1] | $ 10,600 | $ 10,600 | $ 10,400 |
Total Matching Contribution | $ 277,753 | $ 290,388 | $ 286,224 | |
[1] | Due to the annual limit on eligible earnings imposed by the Internal Revenue Code. |
Note 8 - Income Taxes - Provisi
Note 8 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current provision: | |||
Federal | $ 3,108,894 | $ 3,045,292 | $ 3,368,974 |
State | 486,565 | 482,186 | 548,225 |
Total current income tax expense | 3,595,459 | 3,527,478 | 3,917,199 |
Deferred provision (benefit): | |||
Federal | 183,520 | 212,563 | 210,343 |
State | 21,591 | 76,607 | (26,853) |
Total deferred income provision | 205,111 | 289,170 | 183,490 |
Total income tax expense | $ 3,800,570 | $ 3,816,648 | $ 4,100,689 |
Note 8 - Income Taxes - Income
Note 8 - Income Taxes - Income Before Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income from continuing operations, before income taxes | $ 10,202,829 | $ 10,219,053 | $ 11,807,610 |
Internal Revenue Service (IRS) [Member] | |||
Income before income taxes | 9,070,894 | 9,272,854 | 10,339,632 |
Her Majesty's Revenue and Customs (HMRC) [Member] | |||
Income before income taxes | (81,987) | (43,567) | 557,776 |
Canada Revenue Agency [Member] | |||
Income before income taxes | 1,034,027 | 813,824 | 874,571 |
Australian Taxation Office [Member] | |||
Income before income taxes | 82,622 | 48,633 | 102,922 |
Tax Authority, Spain [Member] | |||
Income before income taxes | $ 97,273 | $ 127,309 | $ (67,291) |
Note 8 - Income Taxes - Deferre
Note 8 - Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Capitalized inventory costs | $ 265,454 | $ 260,385 |
Warrants and share-based compensation | 44,151 | 44,151 |
Accrued expenses, reserves, and other | 65,631 | 66,444 |
Total deferred income tax assets | 375,236 | 370,980 |
Deferred income tax liabilities: | ||
Property and equipment depreciation | 1,728,265 | 1,529,397 |
Goodwill and other intangible assets amortization | 227,767 | 217,268 |
Total deferred income tax liabilities | $ 1,956,032 | $ 1,746,665 |
Note 8 - Income Taxes - Effecti
Note 8 - Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory rate – Federal US income tax | 34.00% | 34.00% | 34.00% |
State and local taxes | 6.00% | 6.00% | 5.00% |
Non-U.S. income tax at different rates | (1.00%) | ||
Domestic production activities deduction | (1.00%) | (1.00%) | (1.00%) |
Other, net | (2.00%) | (2.00%) | (2.00%) |
Effective rate | 37.00% | 37.00% | 35.00% |
Note 9 - Commitments and Cont54
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense | $ 4,189,225 | $ 3,844,641 | $ 3,675,788 |
Note 9 - Commitments and Cont55
Note 9 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) | Dec. 31, 2016USD ($) |
2,017 | $ 3,914,550 |
2,018 | 2,999,262 |
2,019 | 2,256,721 |
2,020 | 1,701,366 |
2,021 | 1,074,070 |
2,022 | 545,740 |
2,023 | 427,800 |
2,024 | 246,698 |
2,025 | 180,922 |
2,026 | 6,206 |
Total minimum lease payments | $ 13,353,335 |
Note 10 - Significant Busines56
Note 10 - Significant Business Concentrations and Risk (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number Of Major Customers | 5 | ||
Number of Major Suppliers | 1 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 1.40% | 1.30% | 1.70% |
Note 11 - Stockholders' Equit57
Note 11 - Stockholders' Equity (Details Textual) - USD ($) | Aug. 08, 2014 | Jun. 09, 2014 | Mar. 31, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 07, 2016 | Aug. 31, 2015 | Jun. 06, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | ||||||||||
Proceeds from Issuance of Common Stock | $ 0 | $ 9,920 | $ 52,722 | ||||||||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 0 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | ||||||||||
Payments of Dividends | $ 2,500,000 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0024 | $ 0.0024 | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,200,000 | 1,200,000 | |||||||||
Treasury Stock, Shares, Acquired | 520,500 | 529,000 | 0 | ||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 7.06 | $ 7.01 | |||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 3,675,654 | $ 3,708,862 | |||||||||
Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | ||||||||||
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 | $ 374,040 | ||||||||||
Restricted Stock [Member] | Operating Expense [Member] | |||||||||||
Allocated Share-based Compensation Expense | $ 199,870 | $ 145,321 | $ 67,818 | ||||||||
2007 Director Non-Qualified Stock Option Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 100,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 21,400 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | ||||||||||
Restricted Stock Plan [Member] | Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||
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, Number of Shares Available for Grant | 197,230 | ||||||||||
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 | 11,765 | 9,344 | 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 | 2,031 | 1,613 | 1,619 | ||||||||
Stockholder Rights Plan [Member] | |||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0024 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 30 | ||||||||||
Class Of Warrant Or Right Exercisable, Condition Common Stock Ownership, Percentage | 20.00% |
Note 11 - Stockholders' Equit58
Note 11 - Stockholders' Equity - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance, outstanding (in shares) | 56,400 | 68,400 | 72,400 | 84,600 |
Balance, outstanding (in dollars per share) | $ 5.14 | $ 5.17 | $ 5.16 | $ 5.04 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | |
Granted (in dollars per share) | ||||
Forfeited or expired (in shares) | (12,000) | (2,000) | ||
Forfeited or expired (in dollars per share) | $ 5.30 | $ 4.96 | ||
Exercised (in shares) | (2,000) | (12,200) | ||
Exercised (in dollars per share) | $ 4.96 | $ 4.32 | ||
Balance, outstanding (in shares) | 56,400 | 68,400 | 72,400 | |
Balance, outstanding (in dollars per share) | $ 5.14 | $ 5.17 | $ 5.16 | |
Exercisable at end of year (in shares) | 56,400 | 68,400 | 72,400 | |
Exercisable at end of year (in dollars per share) | $ 5.14 | $ 5.17 | $ 5.16 |
Note 11 - Stockholders' Equit59
Note 11 - Stockholders' Equity - Summary of Outstanding Options by Exercise Price Ranges (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
(in shares) | shares | 56,400 |
(in dollars per share) | $ 5.14 |
(Year) | 4 years 149 days |
Range 1 [Member] | |
(in dollars per share) | $ 4.41 |
(in dollars per share) | |
(in shares) | shares | 20,400 |
(in dollars per share) | $ 4.41 |
(Year) | 3 years 281 days |
Range 2 [Member] | |
(in dollars per share) | $ 4.80 |
(in dollars per share) | |
(in shares) | shares | 9,000 |
(in dollars per share) | $ 4.80 |
(Year) | 4 years 80 days |
Range 3 [Member] | |
(in dollars per share) | $ 5.30 |
(in dollars per share) | $ 6.87 |
(in shares) | shares | 27,000 |
(in dollars per share) | $ 5.81 |
(Year) | 4 years 346 days |
Note 11 - Stockholders' Equit60
Note 11 - Stockholders' Equity - Other Information Pertaining to Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total intrinsic value of stock options exercised | $ 2,953 | $ 14,816 |
Note 11 - Stockholders' Equit61
Note 11 - Stockholders' Equity - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance, shares (in shares) | 60,433 | 34,601 |
Balance, Grant Fair Value (in dollars per share) | $ 8.97 | $ 8.96 |
Granted (in shares) | 33,685 | 34,484 |
Granted, Grant Fair Value (in dollars per share) | $ 7.14 | $ 8.99 |
Forfeited (in shares) | (8,187) | |
Forfeited, Grant Fair Value (in dollars per share) | $ 8.97 | |
Vested (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 11 - Stockholders' Equit62
Note 11 - Stockholders' Equity - Unrecognized Compensation Expense for Non-vested Restricted Stock Awards (Details) - Restricted Stock [Member] | Dec. 31, 2016USD ($) |
2,017 | $ 173,136 |
2,018 | 123,693 |
2,019 | 67,190 |
2,020 | $ 10,021 |
Note 12 - Segment Information63
Note 12 - Segment Information (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Number of Operating Segments | 3 |
Number of Stores | 4 |
Northampton United Kingdom [Member] | International Leathercraft [Member] | |
Number of Stores | 1 |
Sydney Australia [Member] | International Leathercraft [Member] | |
Number of Stores | 1 |
Jerez Spain [Member] | International Leathercraft [Member] | |
Number of Stores | 1 |
Manchester, United Kingdom [Member] | International Leathercraft [Member] | |
Number of Stores | 1 |
Note 12 - Segment Information -
Note 12 - Segment Information - Summary of Reportable Operating Segments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales | $ 24,100,498 | $ 18,628,362 | $ 19,552,905 | $ 20,672,227 | $ 24,292,971 | $ 19,355,937 | $ 19,773,528 | $ 20,788,764 | $ 82,923,992 | $ 84,161,200 | $ 83,430,912 |
Gross Profit | 14,519,835 | $ 11,644,871 | $ 12,895,790 | $ 12,652,746 | 14,841,054 | $ 11,832,697 | $ 12,814,382 | $ 12,582,927 | 51,713,242 | 52,071,060 | 52,124,757 |
Operating earnings | 10,300,731 | 10,474,700 | 11,958,029 | ||||||||
Interest expense | 155,189 | 330,004 | 225,584 | ||||||||
Other expense, net | (57,287) | (74,357) | (75,165) | ||||||||
Income before income taxes | 10,202,829 | 10,219,053 | 11,807,610 | ||||||||
Depreciation and amortization | 1,719,154 | 1,567,172 | 1,436,624 | ||||||||
Fixed asset additions | 1,697,704 | 2,164,040 | 2,204,190 | ||||||||
Total assets | 70,652,720 | 64,611,076 | 70,652,720 | 64,611,076 | 62,873,874 | ||||||
Wholesale Leathercraft [Member] | |||||||||||
Net Sales | 25,371,580 | 26,754,165 | 27,285,884 | ||||||||
Gross Profit | 18,097,205 | 18,579,494 | 18,393,969 | ||||||||
Operating earnings | 5,254,227 | 4,663,590 | 5,300,413 | ||||||||
Interest expense | 155,189 | 330,004 | 225,584 | ||||||||
Other expense, net | (35,290) | (63,230) | (61,984) | ||||||||
Income before income taxes | 5,134,328 | 4,396,816 | 5,136,813 | ||||||||
Depreciation and amortization | 969,202 | 950,174 | 911,327 | ||||||||
Fixed asset additions | 869,250 | 945,998 | 909,260 | ||||||||
Total assets | 50,067,046 | 42,141,174 | 50,067,046 | 42,141,174 | 43,000,030 | ||||||
Retail Leathercraft [Member] | |||||||||||
Net Sales | 53,670,340 | 53,714,432 | 51,805,944 | ||||||||
Gross Profit | 31,217,798 | 31,258,961 | 30,880,718 | ||||||||
Operating earnings | 4,970,546 | 5,689,814 | 6,077,345 | ||||||||
Interest expense | |||||||||||
Other expense, net | |||||||||||
Income before income taxes | 4,970,546 | 5,689,814 | 6,077,345 | ||||||||
Depreciation and amortization | 662,332 | 559,418 | 460,534 | ||||||||
Fixed asset additions | 740,578 | 932,231 | 1,243,123 | ||||||||
Total assets | 16,435,386 | 17,753,324 | 16,435,386 | 17,753,324 | 16,608,386 | ||||||
International Leathercraft [Member] | |||||||||||
Net Sales | 3,882,072 | 3,692,603 | 4,339,084 | ||||||||
Gross Profit | 2,398,239 | 2,232,605 | 2,850,070 | ||||||||
Operating earnings | 75,958 | 121,296 | 580,271 | ||||||||
Interest expense | |||||||||||
Other expense, net | (21,997) | (11,127) | (13,181) | ||||||||
Income before income taxes | 97,955 | 132,423 | 593,452 | ||||||||
Depreciation and amortization | 87,620 | 57,580 | 64,763 | ||||||||
Fixed asset additions | 87,875 | 285,811 | 51,807 | ||||||||
Total assets | $ 4,150,288 | $ 4,716,578 | $ 4,150,288 | $ 4,716,578 | $ 3,265,458 |
Note 12 - Segment Information65
Note 12 - Segment Information - Net Sales for Geographic Areas (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 24,100,498 | $ 18,628,362 | $ 19,552,905 | $ 20,672,227 | $ 24,292,971 | $ 19,355,937 | $ 19,773,528 | $ 20,788,764 | $ 82,923,992 | $ 84,161,200 | $ 83,430,912 |
UNITED STATES | |||||||||||
Net sales | 70,886,401 | 72,061,009 | 69,791,099 | ||||||||
CANADA | |||||||||||
Net sales | 7,199,155 | 7,543,468 | 8,342,896 | ||||||||
All Other Countries [Member] | |||||||||||
Net sales | $ 4,838,436 | $ 4,556,723 | $ 5,296,917 |
Note 14 - Quarterly Financial66
Note 14 - Quarterly Financial Data (Unaudited) - Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales | $ 24,100,498 | $ 18,628,362 | $ 19,552,905 | $ 20,672,227 | $ 24,292,971 | $ 19,355,937 | $ 19,773,528 | $ 20,788,764 | $ 82,923,992 | $ 84,161,200 | $ 83,430,912 |
Gross Profit | 14,519,835 | 11,644,871 | 12,895,790 | 12,652,746 | 14,841,054 | 11,832,697 | 12,814,382 | 12,582,927 | 51,713,242 | 52,071,060 | 52,124,757 |
Net income | $ 2,059,997 | $ 1,000,350 | $ 1,820,915 | $ 1,520,997 | $ 2,338,758 | $ 1,111,344 | $ 1,507,896 | $ 1,444,407 | $ 6,402,259 | $ 6,402,405 | $ 7,706,921 |
NET INCOME PER COMMON SHARE: | |||||||||||
BASIC (in dollars per share) | $ 0.23 | $ 0.11 | $ 0.19 | $ 0.16 | $ 0.24 | $ 0.11 | $ 0.15 | $ 0.14 | $ 0.69 | $ 0.64 | $ 0.76 |
Earnings per share - diluted (in dollars per share) | 0.23 | 0.11 | 0.19 | 0.16 | 0.24 | 0.11 | 0.15 | 0.14 | 0.69 | 0.63 | 0.75 |
Earnings per share – basic (in dollars per share) | $ 0.23 | $ 0.11 | $ 0.19 | $ 0.16 | $ 0.24 | $ 0.11 | $ 0.15 | $ 0.14 | $ 0.69 | $ 0.64 | $ 0.76 |
Weighted average number of common shares outstanding: | |||||||||||
Basic (in shares) | 9,188,483 | 9,188,483 | 9,209,446 | 9,698,951 | 9,692,860 | 10,175,650 | 10,212,933 | 10,211,333 | 9,301,867 | 10,077,506 | 10,203,063 |
Diluted (in shares) | 9,301,867 | 9,206,382 | 9,227,941 | 9,718,453 | 9,712,571 | 10,199,092 | 10,241,164 | 10,241,096 | 9,321,558 | 10,102,760 | 10,241,121 |
Net Sales | $ 24,100,498 | $ 18,628,362 | $ 19,552,905 | $ 20,672,227 | $ 24,292,971 | $ 19,355,937 | $ 19,773,528 | $ 20,788,764 | $ 82,923,992 | $ 84,161,200 | $ 83,430,912 |
Gross Profit | 14,519,835 | 11,644,871 | 12,895,790 | 12,652,746 | 14,841,054 | 11,832,697 | 12,814,382 | 12,582,927 | 51,713,242 | 52,071,060 | 52,124,757 |
Net income | $ 2,059,997 | $ 1,000,350 | $ 1,820,915 | $ 1,520,997 | $ 2,338,758 | $ 1,111,344 | $ 1,507,896 | $ 1,444,407 | $ 6,402,259 | $ 6,402,405 | $ 7,706,921 |