Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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) | 9,180,210 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 19,252,878 | $ 18,337,258 |
Accounts receivable-trade, net of allowance for doubtful accounts of $16,075 and $22,642 in 2018 and 2017, respectively | 503,322 | 461,212 |
Inventory | 36,771,860 | 37,311,197 |
Prepaid income taxes | 41,307 | |
Prepaid expenses | 1,576,205 | 1,473,147 |
Other current assets | 78,412 | 189,029 |
Total current assets | 58,182,677 | 57,813,150 |
PROPERTY AND EQUIPMENT, at cost | 27,403,608 | 27,218,481 |
Less accumulated depreciation and amortization | (12,162,066) | (11,750,639) |
Property and equipment, net | 15,241,542 | 15,467,842 |
DEFERRED INCOME TAXES | 265,456 | 271,738 |
GOODWILL | 960,353 | 962,949 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $711,000 and $710,000 in 2018 and 2017, respectively | 18,667 | 19,222 |
OTHER assets | 379,292 | 379,695 |
TOTAL ASSETS | 75,047,987 | 74,914,596 |
CURRENT LIABILITIES: | ||
Accounts payable-trade | 1,419,505 | 1,413,450 |
Accrued expenses and other liabilities | 3,875,349 | 4,953,477 |
Income tax payable | 105,176 | |
Current maturities of long-term debt | 1,153,931 | 614,311 |
Total current liabilities | 6,553,961 | 6,981,238 |
DEFERRED INCOME TAXES | 1,581,178 | 1,636,958 |
LONG-TERM DEBT, net of current maturities | 6,758,739 | 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; 11,330,340 and 11,313,692 shares issued at 2018 and 2017, respectively; 9,215,110 and 9,270,862 shares outstanding at 2018 and 2017, respectively | 27,193 | 27,153 |
Paid-in capital | 6,860,200 | 6,831,271 |
Retained earnings | 65,026,552 | 63,921,244 |
Treasury stock at cost (2,115,230 and 2,042,830 shares at 2018 and 2017, respectively) | (10,819,524) | (10,278,584) |
Accumulated other comprehensive income | (940,312) | (962,103) |
Total stockholders’ equity | 60,154,109 | 59,538,981 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 75,047,987 | $ 74,914,596 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable-trade, allowance for doubtful accounts | $ 16,075 | $ 22,642 |
Other intangibles, accumulated amortization | $ 711,018 | $ 710,463 |
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) | 11,330,340 | 11,313,692 |
Common stock, shares outstanding (in shares) | 9,215,110 | 9,270,862 |
Treasury stock, shares (in shares) | 2,115,230 | 2,042,830 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
NET SALES | $ 20,288,918 | $ 20,149,845 |
COST OF SALES | 7,445,956 | 7,863,800 |
Gross profit | 12,842,962 | 12,286,045 |
OPERATING EXPENSES | 11,074,001 | 10,548,554 |
INCOME FROM OPERATIONS | 1,768,961 | 1,737,491 |
OTHER (INCOME) EXPENSE: | ||
Interest expense | 64,642 | 36,344 |
Other, net | (38,872) | (2,651) |
Total other (income) expense | 25,770 | 33,693 |
INCOME BEFORE INCOME TAXES | 1,743,191 | 1,703,798 |
PROVISION FOR INCOME TAXES | 469,572 | 472,533 |
NET INCOME | 1,273,619 | 1,231,265 |
Foreign currency translation adjustments | 21,791 | 356,340 |
COMPREHENSIVE INCOME | $ 1,295,410 | $ 1,587,605 |
NET INCOME PER COMMON SHARE: | ||
BASIC (in dollars per share) | $ 0.14 | $ 0.13 |
DILUTED (in dollars per share) | $ 0.14 | $ 0.13 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||
BASIC (in shares) | 9,264,446 | 9,308,726 |
DILUTED (in shares) | 9,264,811 | 9,330,919 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,273,619 | $ 1,231,265 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 465,522 | 458,118 |
Loss on disposal or abandonment of assets | 798 | 335 |
Non-cash stock-based compensation | 28,969 | 44,794 |
Deferred income taxes | (49,498) | (103,187) |
Foreign currency translation | 24,388 | 344,789 |
Net changes in assets and liabilities: | ||
Accounts receivable-trade | (42,110) | 36,292 |
Inventory | 539,337 | (1,204,464) |
Prepaid expenses | (103,058) | (101,357) |
Other current assets | 110,617 | (126,374) |
Accounts payable-trade | 6,055 | 802,561 |
Accrued expenses and other liabilities | (1,246,439) | (1,717,366) |
Income taxes | 146,483 | 489,836 |
Total adjustments | (118,936) | (1,076,023) |
Net cash provided by operating activities | 1,154,683 | 155,242 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (240,020) | (599,757) |
Increase (decrease) in other assets | 957 | (10,578) |
Net cash used in investing activities | (239,063) | (610,335) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and long term debt | 540,940 | |
Repurchase of common stock (treasury stock) | (540,940) | |
Net cash used in financing activities | ||
NET INCREASE (DECREASE) IN CASH | 915,620 | (455,093) |
CASH, beginning of period | 18,337,258 | 16,862,304 |
CASH, end of period | 19,252,878 | 16,407,211 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid during the period | 64,642 | 36,344 |
Income tax paid during the period, net of (refunds) | $ 372,587 | $ 17,303 |
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, 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 |
Balance (in shares) at Dec. 31, 2017 | 9,270,862 | |||||
Balance at Dec. 31, 2017 | $ 27,153 | 6,831,271 | (10,278,584) | 63,921,244 | (962,103) | 59,538,981 |
Cumulative effect of accounting change (see Note 1) at Dec. 31, 2017 | (168,311) | (168,311) | ||||
Stock-based compensation (in shares) | 16,648 | |||||
Stock-based compensation | $ 40 | 28,929 | 28,969 | |||
Purchase of treasury stock (in shares) | (72,400) | |||||
Purchase of treasury stock | (540,940) | (540,940) | ||||
Net income | 1,273,619 | 1,273,619 | ||||
Translation adjustment | 21,791 | 21,791 | ||||
Balance (in shares) at Mar. 31, 2018 | 9,215,110 | |||||
Balance at Mar. 31, 2018 | $ 27,193 | $ 6,860,200 | $ (10,819,524) | $ 65,026,552 | $ (940,312) | $ 60,154,109 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Certain Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1. BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES Tandy Leather Factory, Inc. is a specialty retailer of leather and leathercraft related items, offering a broad range of leather, quality tools, hardware, accessories, liquids, lace, kits and teaching materials. We sell our products through company-owned stores and through orders generated from our website, www.tandyleather.com. We also manufacture the leather lace and some of our do-it-yourself kits that are sold in our stores and website. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our financial position as of March 31, 2018 December 31, 2017, three March 31, 2018 2017. three March 31, 2018 not may December 31, 2018. 10 December 31, 2017. 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 . not March 31, 20 1 8 December 31, 20 1 7 Inventory on hand: Finished goods held for sale $ 34,185,969 $ 34,824,728 Raw materials and work in process 1,082,632 1,138,316 Inventory in transit 1,503,259 1,348,153 Total inventory $ 36,771,860 $ 37,311,197 Goodwill and Other Intangibles first 2018, no three March 31, 2018 2017 $2,596 $1,146, Other intangibles consist of the following: March 31 , 20 1 8 December 31, 20 1 7 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 546,202 $ 8,167 $ 554,369 $ 545,897 $ 8,472 Non-Compete Agreements 175,316 164,816 10,500 175,316 164,566 10,750 $ 729,685 $ 711,018 $ 18,667 $ 729,685 $ 710,463 $ 19,222 We recorded amortization expense of $555 first 2018 $444 first 2017. 5 $1,000 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. Historically, the sale of gift cards has not January 1, 2018, January 1, 2018, 606, 606" one March 31, 2018, $188,000, $168,000 January 1, 2018 Disaggregated Revenue . three March 31: 201 8 2017 RETAIL (end users, consumers, individuals) 62 % 59 % NON-RETAIL (hospitals, youth organizations, resellers, distributors, businesses) 38 % 41 % 100 % 100 % Note 7 Comprehensive Income ( loss ). Recent Accounting Pronouncements. 606 606 January 1, 2018 January 1, 2018 2018. no 0.5% 606 January 1, 2018, $168,311 not In February 2016, 2016 02, one December 15, 2018, not |
Note 2 - Notes Payable and Long
Note 2 - Notes Payable and Long-term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. N OTES PAYABLE AND LONG-TERM DEBT On September 18, 2015, $6,000,000 August 10, 2017, September 18, 2019. no 1.5 1 1.2 1. four three March 31, 2018 2017, no Also on September 18, 2015, $10,000,000 August 2015 2.2 August 2018. August 25, 2016, $10,000,000 $15,000,000 August 25, 2017 August 10, 2017, August 25, 2017 August 18, 2018 4 1900 820, March 31, 2018, $541,000 72,400 no March 31, 2017. March 31, 2018, $7.1 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% 3.672% 3.351% March 31, 2018 December 31, 2017, At March 31, 2018 December 31, 2017, 201 8 201 7 Business Loan Agreement with BOKF – 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, 2022 $ 7,912,670 $ 7,371,730 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, 2019 - - $ 7,912,670 $ 7,371,730 Less current maturities 1,153,931 614,311 $ 6,758,739 $ 6,757,419 The terms of our lines of credit contain various covenants with which we were in compliance as of March 31, 2018 December 31, 2017. |
Note 3 - Income Taxes
Note 3 - Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 3. Our effective tax rate for the three March 31, 2018 27%, 28% 2017. 35% 2017 21% 2018 December 22, 2017. We have not No. 118, one three March 31, 2018, no December 31, 2017. December 31, 2017 In the first 2018, $6,540 not not no first 2017. |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 4. STOCK-BASED COMPENSATI ON We have a restricted stock plan that was adopted by our Board of Directors in January 2013 June 2013. 300,000 may may four The fair value of restricted stock grants is based on the market value of our common stock on the date of grant. Compensation costs for these awards is recognized on a straight-line basis over the four A summary of the activity for non-vested restricted common stock awards as of March 31, 2018 2017 Shares Award Fair Value Balance, January 1, 2018 36,801 $ 8.03 Granted - - Forfeited - - Vested (16,648 ) 8.22 Unvested Balance, March 31, 2018 20,153 $ 7.69 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 As of March 31, 2018, $145,345 2018 $ 71,158 2019 58,125 2020 14,853 2021 1,209 |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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: 201 8 201 7 Net income $ 1,273,619 $ 1,231,265 Numerator for basic and diluted earnings per share $ 1,273,619 $ 1,231,265 Denominator for basic earnings per share – weighted-average shares 9,264,446 9,308,726 Effect of dilutive securities: Stock options - 19,729 Restricted stock 365 2,464 Dilutive potential common shares 365 22,193 Denominator for diluted earnings per share – weighted-average shares 9,264,811 9,330,919 Basic earnings per share $ 0.14 $ 0.13 Diluted earnings per share $ 0.14 $ 0.13 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 12,779 109,545 March 31, 2018 2017, |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6 . COMMITMENTS AND CONTINGENCIES Legal Proceedings. no |
Note 7 - Segment Information
Note 7 - Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 . SEGMENT INFORMATION We operate in two North America International Total For the quarter ended March 31, 20 1 8 Net sales $ 19,317,260 $ 971,658 $ 20,288,918 Gross profit 12,226,002 616,960 12,842,962 Operating income (loss) 1,830,659 (61,698 ) 1,768,961 Interest expense 64,642 - 64,642 Other (income) expense, net (35,184 ) (3,688 ) (38,872 ) Income (loss) before income taxes 1,801,201 (58,010 ) 1,743,191 Depreciation and amortization 441,552 23,970 465,522 Fixed asset additions 237,658 2,362 240,020 Total assets $ 70,292,225 $ 4,755,762 $ 75,047,987 For the quarter ended March 31, 20 1 7 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 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 Net sales for geographic areas were as follows for the three March 31: 201 8 201 7 United States $ 17,348,173 $ 17,282,664 Canada 1,743,174 1,773,510 All other countries 1,197,571 1,093,671 $ 20,288,918 $ 20,149,845 Geographic sales information is based on the location of the customer. No three March 31, 2018 2017. not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Tandy Leather Factory, Inc. is a specialty retailer of leather and leathercraft related items, offering a broad range of leather, quality tools, hardware, accessories, liquids, lace, kits and teaching materials. We sell our products through company-owned stores and through orders generated from our website, www.tandyleather.com. We also manufacture the leather lace and some of our do-it-yourself kits that are sold in our stores and website. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our financial position as of March 31, 2018 December 31, 2017, three March 31, 2018 2017. three March 31, 2018 not may December 31, 2018. 10 December 31, 2017. 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 . not March 31, 20 1 8 December 31, 20 1 7 Inventory on hand: Finished goods held for sale $ 34,185,969 $ 34,824,728 Raw materials and work in process 1,082,632 1,138,316 Inventory in transit 1,503,259 1,348,153 Total inventory $ 36,771,860 $ 37,311,197 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles first 2018, no three March 31, 2018 2017 $2,596 $1,146, Other intangibles consist of the following: March 31 , 20 1 8 December 31, 20 1 7 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 546,202 $ 8,167 $ 554,369 $ 545,897 $ 8,472 Non-Compete Agreements 175,316 164,816 10,500 175,316 164,566 10,750 $ 729,685 $ 711,018 $ 18,667 $ 729,685 $ 710,463 $ 19,222 We recorded amortization expense of $555 first 2018 $444 first 2017. 5 $1,000 |
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. Historically, the sale of gift cards has not January 1, 2018, January 1, 2018, 606, 606" one March 31, 2018, $188,000, $168,000 January 1, 2018 Disaggregated Revenue . three March 31: 201 8 2017 RETAIL (end users, consumers, individuals) 62 % 59 % NON-RETAIL (hospitals, youth organizations, resellers, distributors, businesses) 38 % 41 % 100 % 100 % Note 7 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income ( loss ). |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. 606 606 January 1, 2018 January 1, 2018 2018. no 0.5% 606 January 1, 2018, $168,311 not In February 2016, 2016 02, one December 15, 2018, not |
Note 1 - Basis of Presentatio15
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 20 1 8 December 31, 20 1 7 Inventory on hand: Finished goods held for sale $ 34,185,969 $ 34,824,728 Raw materials and work in process 1,082,632 1,138,316 Inventory in transit 1,503,259 1,348,153 Total inventory $ 36,771,860 $ 37,311,197 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31 , 20 1 8 December 31, 20 1 7 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks, Copyrights $ 554,369 $ 546,202 $ 8,167 $ 554,369 $ 545,897 $ 8,472 Non-Compete Agreements 175,316 164,816 10,500 175,316 164,566 10,750 $ 729,685 $ 711,018 $ 18,667 $ 729,685 $ 710,463 $ 19,222 |
Disaggregation of Revenue [Table Text Block] | 201 8 2017 RETAIL (end users, consumers, individuals) 62 % 59 % NON-RETAIL (hospitals, youth organizations, resellers, distributors, businesses) 38 % 41 % 100 % 100 % |
Note 2 - Notes Payable and Lo16
Note 2 - Notes Payable and Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 201 8 201 7 Business Loan Agreement with BOKF – 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, 2022 $ 7,912,670 $ 7,371,730 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, 2019 - - $ 7,912,670 $ 7,371,730 Less current maturities 1,153,931 614,311 $ 6,758,739 $ 6,757,419 |
Note 4 - Stock-based Compensa17
Note 4 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares Award Fair Value Balance, January 1, 2018 36,801 $ 8.03 Granted - - Forfeited - - Vested (16,648 ) 8.22 Unvested Balance, March 31, 2018 20,153 $ 7.69 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 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | 2018 $ 71,158 2019 58,125 2020 14,853 2021 1,209 |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 201 8 201 7 Net income $ 1,273,619 $ 1,231,265 Numerator for basic and diluted earnings per share $ 1,273,619 $ 1,231,265 Denominator for basic earnings per share – weighted-average shares 9,264,446 9,308,726 Effect of dilutive securities: Stock options - 19,729 Restricted stock 365 2,464 Dilutive potential common shares 365 22,193 Denominator for diluted earnings per share – weighted-average shares 9,264,811 9,330,919 Basic earnings per share $ 0.14 $ 0.13 Diluted earnings per share $ 0.14 $ 0.13 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | North America International Total For the quarter ended March 31, 20 1 8 Net sales $ 19,317,260 $ 971,658 $ 20,288,918 Gross profit 12,226,002 616,960 12,842,962 Operating income (loss) 1,830,659 (61,698 ) 1,768,961 Interest expense 64,642 - 64,642 Other (income) expense, net (35,184 ) (3,688 ) (38,872 ) Income (loss) before income taxes 1,801,201 (58,010 ) 1,743,191 Depreciation and amortization 441,552 23,970 465,522 Fixed asset additions 237,658 2,362 240,020 Total assets $ 70,292,225 $ 4,755,762 $ 75,047,987 For the quarter ended March 31, 20 1 7 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 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 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 201 8 201 7 United States $ 17,348,173 $ 17,282,664 Canada 1,743,174 1,773,510 All other countries 1,197,571 1,093,671 $ 20,288,918 $ 20,149,845 |
Note 1 - Basis of Presentatio20
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Goodwill, Impairment Loss | $ 0 | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 2,596 | $ 1,146 | ||
Amortization of Intangible Assets, Total | $ 555 | $ 444 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (168,311) | |||
Maximum [Member] | ||||
Sales Revenue, Annual Gross Product Returns | 0.50% | |||
Retained Earnings [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (168,311) | |||
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (168,311) | |||
Accounts Payable and Accrued Liabilities [Member] | ||||
Gift Card Liability, Current | $ 188,000 |
Note 1 - Basis of Presentatio21
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Components of Inventory (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory on hand: | ||
Finished goods held for sale | $ 34,185,969 | $ 34,824,728 |
Raw materials and work in process | 1,082,632 | 1,138,316 |
Inventory in transit | 1,503,259 | 1,348,153 |
Total inventory | $ 36,771,860 | $ 37,311,197 |
Note 1 - Basis of Presentatio22
Note 1 - Basis of Presentation and Certain Significant Accounting Policies - Intangible Assets (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Other intangibles, gross | $ 729,685 | $ 729,685 |
Accumulated Amortization | 711,018 | 710,463 |
Other intangibles, net | 18,667 | 19,222 |
Trademarks and Copyrights [Member] | ||
Other intangibles, gross | 554,369 | 554,369 |
Accumulated Amortization | 546,202 | 545,897 |
Other intangibles, net | 8,167 | 8,472 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 175,316 | 175,316 |
Accumulated Amortization | 164,816 | 164,566 |
Other intangibles, net | $ 10,500 | $ 10,750 |
Note 1 - Basis of Presentatio23
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Percent | 100.00% | 100.00% |
Retail [Member] | ||
Revenue, Percent | 62.00% | 59.00% |
Non-Retail [Member] | ||
Revenue, Percent | 38.00% | 41.00% |
Note 2 - Notes Payable and Lo24
Note 2 - Notes Payable and Long-term Debt (Details Textual) | Sep. 18, 2015USD ($)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2017 | Aug. 25, 2016USD ($) | Aug. 24, 2016USD ($) |
Proceeds from Issuance of Long-term Debt, Total | $ 540,940 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 2,200,000 | |||||
Promissory Note and Business Loan Agreement with BOKF [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | |||||
Proceeds from Issuance of Long-term Debt, Total | 0 | |||||
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 | $ 10,000,000 | |||
Proceeds from Issuance of Long-term Debt, Total | $ 541,000 | $ 0 | ||||
Line of Credit Facility, Term of the Term Note into which the Principal Balance Will Be Rolled | 4 years | |||||
Treasury Stock, Shares, Acquired | shares | 72,400 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 7,100,000 | |||||
Two Promissory Notes with BOKF [Member] | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.672% | 3.351% | ||||
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, 2018 | Dec. 31, 2017 |
Line of Credit Note | $ 7,912,670 | $ 7,371,730 |
7,912,670 | 7,371,730 | |
Less current maturities | 1,153,931 | 614,311 |
LONG-TERM DEBT, net of current maturities | 6,758,739 | 6,757,419 |
Promissory Note with BOKF [Member] | ||
Line of Credit Note | 7,912,670 | 7,371,730 |
7,912,670 | 7,371,730 | |
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, 2018 | Dec. 31, 2017 | |
Promissory Note with BOKF [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | $ 15,000,000 |
Promissory Note with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | 1.85% |
Promissory Note and Business Loan Agreement with BOKF [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000,000 | $ 6,000,000 |
Promissory Note and Business Loan Agreement with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | 1.85% |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.00% | 28.00% | 35.00% | |
Tax Adjustments, Settlements, and Unusual Provisions | $ 6,540 | |||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 4 - Stock-based Compensa28
Note 4 - Stock-based Compensation (Details Textual) - Restricted Stock Plan [Member] - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 145,345 |
Executive Officers, Non-employee Directors and Other Key Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 300,000 |
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 |
Note 4 - Stock-based Compensa29
Note 4 - Stock-based Compensation - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Balance, shares (in shares) | 36,801 | 62,046 |
Balance, grant fair value (in dollars per share) | $ 8.03 | $ 8.24 |
Granted, shares (in shares) | 9,005 | |
Granted, grant fair value (in dollars per share) | $ 8.05 | |
Forfeited, shares (in shares) | ||
Forfeited, grant fair value (in dollars per share) | ||
Vested, shares (in shares) | (16,648) | (21,013) |
Vested, grant fair value (in dollars per share) | $ 8.22 | $ 8.49 |
Balance, shares (in shares) | 20,153 | 50,038 |
Balance, grant fair value (in dollars per share) | $ 7.69 | $ 8.22 |
Note 4 - Stock-based Compensa30
Note 4 - Stock-based Compensation - Unrecognized Compensation Expense for Nonvested Restricted Stock Awards (Details) | Mar. 31, 2018USD ($) |
2,018 | $ 71,158 |
2,019 | 58,125 |
2,020 | 14,853 |
2,021 | $ 1,209 |
Note 5 - Earnings Per Share (De
Note 5 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total | 12,779 | 109,545 |
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, 2018 | Mar. 31, 2017 | |
Net income | $ 1,273,619 | $ 1,231,265 |
Numerator for basic and diluted earnings per share | $ 1,273,619 | $ 1,231,265 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 9,264,446 | 9,308,726 |
Effect of dilutive securities (in shares) | 365 | 22,193 |
Denominator for diluted earnings per share – weighted-average shares (in shares) | 9,264,811 | 9,330,919 |
Basic earnings per share (in dollars per share) | $ 0.14 | $ 0.13 |
Diluted earnings per share (in dollars per share) | $ 0.14 | $ 0.13 |
Employee Stock Option [Member] | ||
Effect of dilutive securities (in shares) | 19,729 | |
Restricted Stock [Member] | ||
Effect of dilutive securities (in shares) | 365 | 2,464 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2018 | |
Number of Reportable Segments | 2 |
Note 7 - Segment Information -
Note 7 - Segment Information - Summary of Reportable Operating Segments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Net sales | $ 20,288,918 | $ 20,149,845 | |
Gross profit | 12,842,962 | 12,286,045 | |
Operating income (loss) | 1,768,961 | 1,737,491 | |
Interest expense | 64,642 | 36,344 | |
Other (income) expense, net | (38,872) | (2,651) | |
Income (loss) before income taxes | 1,743,191 | 1,703,798 | |
Depreciation and amortization | 465,522 | 458,118 | |
Fixed asset additions | 240,020 | 599,757 | |
Total assets | 75,047,987 | 71,268,774 | $ 74,914,596 |
North America Segment [Member] | |||
Net sales | 19,317,260 | 19,231,714 | |
Gross profit | 12,226,002 | 11,752,957 | |
Operating income (loss) | 1,830,659 | 1,811,563 | |
Interest expense | 64,642 | 36,344 | |
Other (income) expense, net | (35,184) | (17,654) | |
Income (loss) before income taxes | 1,801,201 | 1,792,873 | |
Depreciation and amortization | 441,552 | 436,281 | |
Fixed asset additions | 237,658 | 597,826 | |
Total assets | 70,292,225 | 67,016,728 | |
International Leathercraft [Member] | |||
Net sales | 971,658 | 918,131 | |
Gross profit | 616,960 | 533,088 | |
Operating income (loss) | (61,698) | (74,072) | |
Interest expense | |||
Other (income) expense, net | (3,688) | 15,003 | |
Income (loss) before income taxes | (58,010) | (89,075) | |
Depreciation and amortization | 23,970 | 21,837 | |
Fixed asset additions | 2,362 | 1,931 | |
Total assets | $ 4,755,762 | $ 4,252,046 |
Note 7 - Segment Information 35
Note 7 - Segment Information - Net Sales for Geographic Areas (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales | $ 20,288,918 | $ 20,149,845 |
UNITED STATES | ||
Net sales | 17,348,173 | 17,282,664 |
CANADA | ||
Net sales | 1,743,174 | 1,773,510 |
All Other Countries [Member] | ||
Net sales | $ 1,197,571 | $ 1,093,671 |