Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 03, 2017 | |
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) | 9,275,501 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 16,407,211 | $ 16,862,304 |
Accounts receivable-trade, net of allowance for doubtful accounts of $3,548 and $2,404 in 2017 and 2016, respectively | 524,692 | 560,984 |
Inventory | 34,382,003 | 33,177,539 |
Prepaid income taxes | 474,487 | 964,323 |
Prepaid expenses | 1,710,217 | 1,608,860 |
Other current assets | 264,617 | 140,232 |
Total current assets | 53,763,227 | 53,314,242 |
PROPERTY AND EQUIPMENT, at cost | 26,156,413 | 25,536,352 |
Less accumulated depreciation and amortization | (10,350,479) | (9,884,559) |
Property, plant and equipment, net | 15,805,934 | 15,651,793 |
DEFERRED INCOME TAXES | 376,884 | 375,236 |
GOODWILL | 957,347 | 956,201 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $709,000 and $708,000 in 2017 and 2016, respectively | 20,396 | 20,840 |
OTHER assets | 344,986 | 334,408 |
TOTAL ASSETS | 71,268,774 | 70,652,720 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 2,424,445 | 1,621,884 |
Accrued expenses and other liabilities | 4,219,821 | 5,937,187 |
Current maturities of capital lease obligations | 72,686 | 72,686 |
Current maturities of long-term debt | 1,075,044 | 614,311 |
Total current liabilities | 7,791,996 | 8,246,068 |
DEFERRED INCOME TAXES | 1,854,493 | 1,956,032 |
LONG-TERM DEBT, net of current maturities | 6,296,685 | 6,757,419 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.10 par value; 20,000,000 shares authorized; none issued or outstanding; attributes to be determined on issuance | ||
Common stock, $0.0024 par value; 25,000,000 shares authorized; 11,318,331 and 11,309,326 shares issued at 2017 and 2016, respectively; 9,275,501 and 9,266,496 shares outstanding at 2017 and 2016, respectively | 27,164 | 27,142 |
Paid-in capital | 6,413,051 | 6,368,279 |
Retained earnings | 60,700,758 | 59,469,493 |
Treasury stock at cost (2,042,830 shares at 2017 and 2016) | (10,278,584) | (10,278,584) |
Accumulated other comprehensive income | (1,536,789) | (1,893,129) |
Total stockholders’ equity | 55,325,600 | 53,693,201 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 71,268,774 | $ 70,652,720 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts receivable-trade, net allowance for doubtful accounts | $ 3,548 | $ 2,404 |
Other intangible, accumulated amortization | $ 709,289 | $ 708,845 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 11,318,331 | 11,309,326 |
Common stock, shares outstanding (in shares) | 9,275,501 | 9,266,496 |
Treasury stock, shares (in shares) | 2,042,830 | 2,042,830 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
NET SALES | $ 20,149,845 | $ 20,672,227 |
COST OF SALES | 7,863,800 | 8,019,481 |
Gross profit | 12,286,045 | 12,652,746 |
OPERATING EXPENSES | 10,548,554 | 10,289,956 |
INCOME FROM OPERATIONS | 1,737,491 | 2,362,790 |
OTHER (INCOME) EXPENSE: | ||
Interest expense | 36,344 | 23,429 |
Other, net | (2,651) | 39 |
Total other (income) expense | 33,693 | 23,468 |
INCOME BEFORE INCOME TAXES | 1,703,798 | 2,339,322 |
PROVISION FOR INCOME TAXES | 472,533 | 818,325 |
NET INCOME | 1,231,265 | 1,520,997 |
Translation adjustment | 356,340 | 637,515 |
COMPREHENSIVE INCOME | $ 1,587,605 | $ 2,158,512 |
NET INCOME PER COMMON SHARE: | ||
BASIC (in dollars per share) | $ 0.13 | $ 0.16 |
DILUTED (in dollars per share) | $ 0.13 | $ 0.16 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||
BASIC (in shares) | 9,308,726 | 9,698,951 |
DILUTED (in shares) | 9,330,919 | 9,718,453 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,231,265 | $ 1,520,997 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 458,118 | 414,228 |
Loss / (gain) on disposal or abandonment of assets | 335 | (12,023) |
Non-cash stock-based compensation | 44,794 | 43,762 |
Deferred income taxes | (103,187) | 31,717 |
Foreign currency translation | 344,789 | 614,366 |
Net changes in assets and liabilities: | ||
Accounts receivable-trade | 36,292 | (129,374) |
Inventory | (1,204,464) | (47,763) |
Prepaid expenses | (101,357) | (112,282) |
Other current assets | (126,374) | (76,076) |
Accounts payable-trade | 802,561 | (63,065) |
Accrued expenses and other liabilities | (1,717,366) | (1,471,776) |
Income taxes | 489,836 | 360,847 |
Total adjustments | (1,076,023) | (447,439) |
Net cash provided by operating activities | 155,242 | 1,073,558 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (599,757) | (606,932) |
Proceeds from sale of assets | 22,625 | |
(Decrease) in other assets | (10,578) | (154) |
Net cash used in investing activities | (610,335) | (584,461) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and long term debt | 2,870,000 | |
Payments on capital lease obligations | (6,710) | |
Repurchase of common stock (treasury stock) | (2,870,740) | |
Net cash used in financing activities | (7,450) | |
NET (DECREASE) INCREASE IN CASH | (455,093) | 481,647 |
CASH, beginning of period | 16,862,304 | 10,962,615 |
CASH, end of period | 16,407,211 | 11,444,262 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid | 36,344 | 23,429 |
Income tax paid (refunds) | $ 17,303 | $ 457,478 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 9,753,293 | |||||
Balance at Dec. 31, 2015 | $ 27,062 | $ 6,168,489 | $ (6,602,930) | $ 53,067,234 | $ (1,687,679) | $ 50,972,176 |
Stock-based compensation (in shares) | 33,685 | |||||
Stock-based compensation | $ 80 | 43,682 | 43,762 | |||
Net income | 1,520,997 | 1,520,997 | ||||
Purchase of treasury stock (in shares) | (404,423) | |||||
Purchase of treasury stock | (2,870,740) | (2,870,740) | ||||
Translation adjustment | 637,515 | 637,515 | ||||
Balance (in shares) at Mar. 31, 2016 | 9,382,555 | |||||
Balance at Mar. 31, 2016 | $ 27,142 | 6,212,171 | (9,473,670) | 54,588,231 | (1,050,164) | 50,303,710 |
Translation adjustment | 637,515 | 637,515 | ||||
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 |
Stock-based compensation (in shares) | 9,005 | |||||
Stock-based compensation | $ 22 | 44,772 | 44,794 | |||
Net income | 1,231,265 | 1,231,265 | ||||
Translation adjustment | 356,340 | 356,340 | ||||
Balance (in shares) at Mar. 31, 2017 | 9,275,501 | |||||
Balance at Mar. 31, 2017 | $ 27,164 | 6,413,051 | (10,278,584) | 60,700,758 | (1,536,789) | 55,325,600 |
Translation adjustment | $ 356,340 | $ 356,340 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Certain Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of March 31, 2017 December 31, 2016, three March 31, 2017 2016. three March 31, 2017 may December 31, 2017. 10 December 31, 2016. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Inventory . first first Based on negotiations with vendors, title generally passes to us when merchandise is put on board. Merchandise to which we have title but have not yet received is recorded as inventory in transit. March 31, 2017 December 31, 2016 Inventory on hand: Finished goods held for sale $ 31,099,215 $ 30,684,026 Raw materials and work in process 1,079,178 1,034,041 Inventory in transit 2,203,610 1,459,472 $ 34,382,003 $ 33,177,539 Goodwill and Other Intangibles . Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. A two first second fourth December 31, 2016, No first 2017. The only change in our goodwill for the three March 31, 2017 2016 $1,146 $6,428, Other intangibles consist of the following: March 31, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 545,473 $ 8,896 $ 554,369 $ 545,279 $ 9,090 Non-Compete Agreements 175,316 163,816 11,500 175,316 163,566 11,750 $ 729,685 $ 709,289 $ 20,396 $ 729,685 $ 708,845 $ 20,840 We recorded amortization expense of $444 first 2017 $3,861 first 2016. 5 2017 1,313 2018 1,417 2019 666 2020 666 2021 666 Thereafter $ 5,668 Revenue Recognition . two (1) (2) . We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. Comprehensive Income ( loss ). Recent Account ing Pronouncements. 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 February 2016, 2016 02, one December 15, 2018, |
Note 2 - Notes Payable and Long
Note 2 - Notes Payable and Long-term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. N OTES PAYABLE AND LONG-TERM DEBT 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, no March 31, 2017. March 31, 2016, $2.9 404,000 March 31, 2017, $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% (2.826% 2.557% March 31, 2017 December 31, 2016, At March 31, 2017 December 31, 2016, 2017 2016 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 $ 7,371,729 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 $ 7,371,729 Less current maturities 1,075,044 614,311 $ 6,296,685 $ 6,757,419 |
Note 3 - Capital Lease Obligati
Note 3 - Capital Lease Obligations | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Debt and Capital Leases Disclosures [Text Block] | 3. We lease certain telecommunication equipment under a capital lease agreement. The asset subject to the agreement totaled $227,783, $212,893 $210,904 March 31, 2017 December 31, 2016, $14,890 $16,879 March 31, 2017 December 31, 2016, $27,300 $21,400 March 31, 2017 December 31, 2016, 2017, $72,686 March 31, 2017. |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 4. ON We have one March 2017. ten no March 31, 2017 2016 no March 31, 2017 2016, three March 31, 2017 2016, Weighted Average Exercise Price # of shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, January 1, 2017 $ 5.14 56,400 Granted - - Cancelled - - Exercised - - Outstanding, March 31, 2017 $ 5.14 56,400 4.24 $ 172,584 Exercisable, March 31, 2017 $ 5.14 56,400 4.24 $ 172,584 Outstanding, January 1, 2016 $ 5.17 68,400 Granted - - Cancelled - - Exercised - - Outstanding, March 31, 2016 $ 5.17 68,400 5.24 $ 83,933 Exercisable, March 31, 2016 $ 5.17 68,400 5.24 $ 83,933 As of March 31, 2017, no 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 2017, five 1,801 March 2016, 11,765 five 2,031 four four A summary of the activity for non-vested restricted common stock awards as of March 31, 2017 2016 Shares Award Fair Value Balance, January 1, 2017 62,046 $ 8.24 Granted 9,005 $ 8.05 Forfeited - - Vested (21,013 ) 8.49 Unvested Balance, March 31, 2017 50,038 $ 8.22 Balance, January 1, 2016 60,433 $ 8.97 Granted 33,685 $ 7.14 Forfeited (8,187 ) 8.97 Vested (20,784 ) 8.97 Unvested Balance, March 31, 2016 65,147 $ 8.03 As of March 31, 2017, $401,737 2017 $ 143,444 2018 141,816 2019 85,313 2020 28,144 2021 3,020 |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three March 31, 2017 2016: 2017 2016 Net income $ 1,231,265 $ 1,520,997 Numerator for basic and diluted earnings per share $ 1,231,265 $ 1,520,997 Denominator for basic earnings per share – weighted-average shares 9,308,726 9,698,951 Effect of dilutive securities: Stock options 19,729 19,461 Restricted stock 2,464 41 Dilutive potential common shares 22,193 19,502 Denominator for diluted earnings per share – weighted-average shares 9,330,919 9,718,453 Basic earnings per share $ 0.13 $ 0.16 Diluted earnings per share $ 0.13 $ 0.16 The net effect of assuming the exercise of all potentially dilutive common share equivalents, including stock options to purchase common stock at exercise prices less than the average market prices and restricted stock awards of an aggregate of 109,545 149,922 March 31, 2017 2016, |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. Legal Proceedings. |
Note 7 - Segment Information
Note 7 - Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. SEGMENT INFORMATION Effective January 1, 2017, Prior Reporting Structure New Reporting Structure 1. Wholesale chain of wholesale stores operating under the name, The Leather Factory, located in North America 1. North America 2. Retail chain of retail stores operating under the name, Tandy Leather Company, located in North America 2. International 3. International four 2 1 1 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. The 2016 North America International Total For the quarter ended March 31, 20 17 Net sales $ 19,231,714 $ 918,131 $ 20,149,845 Gross profit 11,752,957 533,088 12,286,045 Operating income (loss) 1,811,563 (74,072 ) 1,737,491 Interest expense 36,344 - 36,344 Other (income) expense, net (17,654 ) 15,003 (2,651 ) Income (loss) before income taxes 1,792,873 (89,075 ) 1,703,798 Depreciation and amortization 436,281 21,837 458,118 Fixed asset additions 597,826 1,931 599,757 Total assets $ 67,016,728 $ 4,252,046 $ 71,268,774 For the quarter ended March 31, 20 16 Net sales $ 19,739,491 $ 932,736 $ 20,672,227 Gross profit 12,084,809 567,937 12,652,746 Operating income 2,341,209 21,581 2,362,790 Interest expense 23,429 - 23,429 Other (income) expense, net (5,746 ) 5,785 39 Income before income taxes 2,323,526 15,796 2,339,322 Depreciation and amortization 393,592 20,636 414,228 Fixed asset additions 602,864 4,068 606,932 Total assets $ 60,145,915 $ 5,113,930 $ 65,259,845 Net sales for geographic areas were as follows for the three March 31: 201 7 201 6 United States $ 17,282,664 $ 17,727,629 Canada 1,773,510 1,741,756 All other countries 1,093,671 1,202,842 $ 20,149,845 $ 20,672,227 Geographic sales information is based on the location of the customer. No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three March 31, 2017 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of March 31, 2017 December 31, 2016, three March 31, 2017 2016. three March 31, 2017 may December 31, 2017. 10 December 31, 2016. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Inventory, Policy [Policy Text Block] | Inventory . first first Based on negotiations with vendors, title generally passes to us when merchandise is put on board. Merchandise to which we have title but have not yet received is recorded as inventory in transit. March 31, 2017 December 31, 2016 Inventory on hand: Finished goods held for sale $ 31,099,215 $ 30,684,026 Raw materials and work in process 1,079,178 1,034,041 Inventory in transit 2,203,610 1,459,472 $ 34,382,003 $ 33,177,539 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles . Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. A two first second fourth December 31, 2016, No first 2017. The only change in our goodwill for the three March 31, 2017 2016 $1,146 $6,428, Other intangibles consist of the following: March 31, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 545,473 $ 8,896 $ 554,369 $ 545,279 $ 9,090 Non-Compete Agreements 175,316 163,816 11,500 175,316 163,566 11,750 $ 729,685 $ 709,289 $ 20,396 $ 729,685 $ 708,845 $ 20,840 We recorded amortization expense of $444 first 2017 $3,861 first 2016. 5 2017 1,313 2018 1,417 2019 666 2020 666 2021 666 Thereafter $ 5,668 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition . two (1) (2) . We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income ( loss ). |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Account ing Pronouncements. 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 February 2016, 2016 02, one December 15, 2018, |
Note 1 - Basis of Presentatio15
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 2017 December 31, 2016 Inventory on hand: Finished goods held for sale $ 31,099,215 $ 30,684,026 Raw materials and work in process 1,079,178 1,034,041 Inventory in transit 2,203,610 1,459,472 $ 34,382,003 $ 33,177,539 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2017 December 31, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 545,473 $ 8,896 $ 554,369 $ 545,279 $ 9,090 Non-Compete Agreements 175,316 163,816 11,500 175,316 163,566 11,750 $ 729,685 $ 709,289 $ 20,396 $ 729,685 $ 708,845 $ 20,840 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 1,313 2018 1,417 2019 666 2020 666 2021 666 Thereafter $ 5,668 |
Note 2 - Notes Payable and Lo16
Note 2 - Notes Payable and Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 2017 2016 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 $ 7,371,729 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 $ 7,371,729 Less current maturities 1,075,044 614,311 $ 6,296,685 $ 6,757,419 |
Note 4 - Stock-based Compensa17
Note 4 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Average Exercise Price # of shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, January 1, 2017 $ 5.14 56,400 Granted - - Cancelled - - Exercised - - Outstanding, March 31, 2017 $ 5.14 56,400 4.24 $ 172,584 Exercisable, March 31, 2017 $ 5.14 56,400 4.24 $ 172,584 Outstanding, January 1, 2016 $ 5.17 68,400 Granted - - Cancelled - - Exercised - - Outstanding, March 31, 2016 $ 5.17 68,400 5.24 $ 83,933 Exercisable, March 31, 2016 $ 5.17 68,400 5.24 $ 83,933 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Award Fair Value Balance, January 1, 2017 62,046 $ 8.24 Granted 9,005 $ 8.05 Forfeited - - Vested (21,013 ) 8.49 Unvested Balance, March 31, 2017 50,038 $ 8.22 Balance, January 1, 2016 60,433 $ 8.97 Granted 33,685 $ 7.14 Forfeited (8,187 ) 8.97 Vested (20,784 ) 8.97 Unvested Balance, March 31, 2016 65,147 $ 8.03 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | 2017 $ 143,444 2018 141,816 2019 85,313 2020 28,144 2021 3,020 |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2017 2016 Net income $ 1,231,265 $ 1,520,997 Numerator for basic and diluted earnings per share $ 1,231,265 $ 1,520,997 Denominator for basic earnings per share – weighted-average shares 9,308,726 9,698,951 Effect of dilutive securities: Stock options 19,729 19,461 Restricted stock 2,464 41 Dilutive potential common shares 22,193 19,502 Denominator for diluted earnings per share – weighted-average shares 9,330,919 9,718,453 Basic earnings per share $ 0.13 $ 0.16 Diluted earnings per share $ 0.13 $ 0.16 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | North America International Total For the quarter ended March 31, 20 17 Net sales $ 19,231,714 $ 918,131 $ 20,149,845 Gross profit 11,752,957 533,088 12,286,045 Operating income (loss) 1,811,563 (74,072 ) 1,737,491 Interest expense 36,344 - 36,344 Other (income) expense, net (17,654 ) 15,003 (2,651 ) Income (loss) before income taxes 1,792,873 (89,075 ) 1,703,798 Depreciation and amortization 436,281 21,837 458,118 Fixed asset additions 597,826 1,931 599,757 Total assets $ 67,016,728 $ 4,252,046 $ 71,268,774 For the quarter ended March 31, 20 16 Net sales $ 19,739,491 $ 932,736 $ 20,672,227 Gross profit 12,084,809 567,937 12,652,746 Operating income 2,341,209 21,581 2,362,790 Interest expense 23,429 - 23,429 Other (income) expense, net (5,746 ) 5,785 39 Income before income taxes 2,323,526 15,796 2,339,322 Depreciation and amortization 393,592 20,636 414,228 Fixed asset additions 602,864 4,068 606,932 Total assets $ 60,145,915 $ 5,113,930 $ 65,259,845 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 201 7 201 6 United States $ 17,282,664 $ 17,727,629 Canada 1,773,510 1,741,756 All other countries 1,093,671 1,202,842 $ 20,149,845 $ 20,672,227 |
Note 1 - Basis of Presentatio20
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill, Foreign Currency Translation Gain (Loss) | $ 1,146 | $ 6,428 |
Amortization of Intangible Assets | 444 | $ 3,861 |
Goodwill, Impairment Loss | $ 0 | |
Maximum [Member] | ||
Sales Revenue, Annual Gross Product Returns | 0.50% |
Note 1 - Basis of Presentatio21
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Components of Inventory (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory on hand: | ||
Finished goods held for sale | $ 31,099,215 | $ 30,684,026 |
Raw materials and work in process | 1,079,178 | 1,034,041 |
Inventory in transit | 2,203,610 | 1,459,472 |
$ 34,382,003 | $ 33,177,539 |
Note 1 - Basis of Presentatio22
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Intangible Assets (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Other intangibles, gross | $ 729,685 | $ 729,685 |
Accumulated Amortization | 709,289 | 708,845 |
Other intangibles, net | 20,396 | 20,840 |
Trademarks and Copyrights [Member] | ||
Other intangibles, gross | 554,369 | 554,369 |
Accumulated Amortization | 545,473 | 545,279 |
Other intangibles, net | 8,896 | 9,090 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 175,316 | 175,316 |
Accumulated Amortization | 163,816 | 163,566 |
Other intangibles, net | $ 11,500 | $ 11,750 |
Note 1 - Basis of Presentatio23
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Estimated Amortization Expense (Details) | Mar. 31, 2017USD ($) |
2,017 | $ 1,313 |
2,018 | 1,417 |
2,019 | 666 |
2,020 | 666 |
2,021 | 666 |
Thereafter | $ 5,668 |
Note 2 - Notes Payable and Lo24
Note 2 - Notes Payable and Long-term Debt (Details Textual) | Sep. 18, 2015USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($)shares | Dec. 31, 2016 | Aug. 25, 2016USD ($) |
Proceeds from Issuance of Long-term Debt | $ 2,870,000 | ||||
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 | 0 | $ 2,900,000 | |||
Treasury Stock, Shares, Acquired | shares | 404,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 7,600,000 | ||||
Two Promissory Notes with BOKF [Member] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.826% | 2.557% | |||
Two Promissory Notes with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% |
Note 2 - Notes Payable and Lo25
Note 2 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
$ 7,371,729 | $ 7,371,729 | |
Current maturities of long-term debt | 1,075,044 | 614,311 |
LONG-TERM DEBT, net of current maturities | 6,296,685 | 6,757,419 |
Promissory Note with BOKF [Member] | ||
Line of Credit Note | 7,371,729 | 7,371,729 |
Promissory Note and Business Loan Agreement with BOKF [Member] | ||
Line of Credit Note |
Note 2 - Notes Payable and Lo26
Note 2 - Notes Payable and Long-term Debt - Summary of Credit Agreement and Line of Credit Note (Details) (Parentheticals) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 3 - Capital Lease Obliga27
Note 3 - Capital Lease Obligations (Details Textual) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Capital Leased Assets, Gross | $ 227,783 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 27,300 | $ 21,400 |
Capital Lease Obligations, Current | 72,686 | 72,686 |
Property and Equipment [Member] | ||
Capital Leased Assets, Gross | 212,893 | 210,904 |
Prepaid Equipment [Member] | ||
Capital Leased Assets, Gross | $ 14,890 | $ 16,879 |
Note 4 - Stock-based Compensa28
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016 | Feb. 28, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,005 | 33,685 | ||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | ||
2007 Director Non-Qualified Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
2007 Director Non-Qualified Stock Option Plan [Member] | Employee Stock Option [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | |||
Restricted Stock Plan [Member] | Restricted Stock [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 401,737 | |||
Restricted Stock Plan [Member] | Executive Officers, Non-employee Directors and Other Key Employees [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Restricted Stock Plan [Member] | Independent Director 1 Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,801 | ||
Restricted Stock Plan [Member] | Chief Executive Officer [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,765 | |||
Restricted Stock Plan [Member] | Interim Chief Executive Officer, Interim President and 5 Directors [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | |||
Restricted Stock Plan [Member] | Independent Director 2 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,801 | ||
Restricted Stock Plan [Member] | Independent Director 3 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,801 | ||
Restricted Stock Plan [Member] | Independent Director 4 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,801 | ||
Restricted Stock Plan [Member] | Independent Directors 5 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,031 | 1,801 |
Note 4 - Stock-based Compensa29
Note 4 - Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 5.14 | $ 5.17 |
Outstanding, number of shares (in shares) | 56,400 | 68,400 |
Cancelled, weighted average exercise price (in dollars per share) | ||
Cancelled, number of shares (in shares) | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 5.14 | $ 5.17 |
Outstanding, number of shares (in shares) | 56,400 | 68,400 |
Outstanding, weighted average remaining contractual term (Year) | 4 years 87 days | 5 years 87 days |
Outstanding, aggregate intrinsic value | $ 172,584 | $ 83,933 |
Exercisable, weighted average exercise price (in dollars per share) | $ 5.14 | $ 5.17 |
Exercisable, number of shares (in shares) | 56,400 | 68,400 |
Exercisable, weighted average remaining contractual term (Year) | 4 years 87 days | 5 years 87 days |
Exercisable, aggregate intrinsic value | $ 172,584 | $ 83,933 |
Note 4 - Stock-based Compensa30
Note 4 - Stock-based Compensation - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Balance, shares (in shares) | 62,046 | 60,433 |
Balance, grant fair value (in dollars per share) | $ 8.24 | $ 8.97 |
Granted, shares (in shares) | 9,005 | 33,685 |
Granted, grant fair value (in dollars per share) | $ 8.05 | $ 7.14 |
Forfeited, shares (in shares) | 8,187 | |
Forfeited, grant fair value (in dollars per share) | $ 8.97 | |
Vested, shares (in shares) | (21,013) | (20,784) |
Vested, grant fair value (in dollars per share) | $ 8.49 | $ 8.97 |
Balance, shares (in shares) | 50,038 | 65,147 |
Balance, grant fair value (in dollars per share) | $ 8.22 | $ 8.03 |
Forfeited, shares (in shares) | (8,187) |
Note 4 - Stock-based Compensa31
Note 4 - Stock-based Compensation - Unrecognized Compensation Expense for Nonvested Restricted Stock Awards (Details) | Mar. 31, 2017USD ($) |
2,017 | $ 143,444 |
2,018 | 141,816 |
2,019 | 85,313 |
2,020 | 28,144 |
2,021 | $ 3,020 |
Note 5 - Earnings Per Share (De
Note 5 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 109,545 | 149,922 |
Note 5 - Earnings Per Share - C
Note 5 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 1,231,265 | $ 1,520,997 |
Numerator for basic and diluted earnings per share | $ 1,231,265 | $ 1,520,997 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 9,308,726 | 9,698,951 |
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 22,193 | 19,502 |
Denominator for diluted earnings per share – weighted-average shares (in shares) | 9,330,919 | 9,718,453 |
Basic earnings per share (in dollars per share) | $ 0.13 | $ 0.16 |
Diluted earnings per share (in dollars per share) | $ 0.13 | $ 0.16 |
Employee Stock Option [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 19,729 | 19,461 |
Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 2,464 | 41 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | Mar. 31, 2017 |
Number of Stores | 4 |
UNITED KINGDOM | International Leathercraft [Member] | |
Number of Stores | 2 |
AUSTRALIA | International Leathercraft [Member] | |
Number of Stores | 1 |
SPAIN | International Leathercraft [Member] | |
Number of Stores | 1 |
Note 7 - Segment Information -
Note 7 - Segment Information - Summary of Reportable Operating Segments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Net sales | $ 20,149,845 | $ 20,672,227 | |
Gross profit | 12,286,045 | 12,652,746 | |
Operating income (loss) | 1,737,491 | 2,362,790 | |
Interest expense | 36,344 | 23,429 | |
Other (income) expense, net | (2,651) | 39 | |
Income (loss) before income taxes | 1,703,798 | 2,339,322 | |
Depreciation and amortization | 458,118 | 414,228 | |
Total assets | 71,268,774 | $ 70,652,720 | |
Wholesale Leathercraft [Member] | |||
Net sales | 19,231,714 | 19,739,491 | |
Gross profit | 11,752,957 | 12,084,809 | |
Operating income (loss) | 1,811,563 | 2,341,209 | |
Interest expense | 36,344 | 23,429 | |
Other (income) expense, net | (17,654) | (5,746) | |
Income (loss) before income taxes | 1,792,873 | 2,323,526 | |
Depreciation and amortization | 436,281 | 393,592 | |
Fixed asset additions | 597,826 | 602,864 | |
Total assets | 67,016,728 | 60,145,915 | |
Retail Leathercraft [Member] | |||
Net sales | 918,131 | 932,736 | |
Gross profit | 533,088 | 567,937 | |
Operating income (loss) | (74,072) | 21,581 | |
Interest expense | |||
Other (income) expense, net | 15,003 | 5,785 | |
Income (loss) before income taxes | (89,075) | 15,796 | |
Depreciation and amortization | 21,837 | 20,636 | |
Fixed asset additions | 1,931 | 4,068 | |
Total assets | 4,252,046 | 5,113,930 | |
International Leathercraft [Member] | |||
Net sales | 20,149,845 | 20,672,227 | |
Gross profit | 12,286,045 | 12,652,746 | |
Operating income (loss) | 1,737,491 | 2,362,790 | |
Interest expense | 36,344 | 23,429 | |
Other (income) expense, net | (2,651) | 39 | |
Income (loss) before income taxes | 1,703,798 | 2,339,322 | |
Depreciation and amortization | 458,118 | 414,228 | |
Fixed asset additions | 599,757 | 606,932 | |
Total assets | $ 71,268,774 | $ 65,259,845 |
Note 7 - Segment Information 36
Note 7 - Segment Information - Net Sales for Geographic Areas (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 20,149,845 | $ 20,672,227 |
UNITED STATES | ||
Net sales | 17,282,664 | 17,727,629 |
CANADA | ||
Net sales | 1,773,510 | 1,741,756 |
All Other Countries [Member] | ||
Net sales | $ 1,093,671 | $ 1,202,842 |