Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | NATURAL HEALTH TRENDS CORP. | ||
Entity Central Index Key | 912,061 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 11,341,890 | ||
Entity Public Float | $ 202,402,875 | ||
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 ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 125,921 | $ 104,914 |
Inventories, net | 11,257 | 10,455 |
Other current assets | 4,066 | 2,343 |
Total current assets | 141,244 | 117,712 |
Property and equipment, net | 1,388 | 894 |
Goodwill | 1,764 | 1,764 |
Restricted cash | 2,963 | 3,166 |
Other assets | 692 | 616 |
Total assets | 148,051 | 124,152 |
Current liabilities: | ||
Accounts payable | 2,145 | 2,862 |
Income taxes payable | 663 | 379 |
Accrued commissions | 13,611 | 19,634 |
Other accrued expenses | 14,989 | 16,703 |
Deferred revenue | 4,948 | 4,011 |
Amounts held in eWallets | 19,165 | 16,414 |
Other current liabilities | 1,633 | 1,510 |
Total current liabilities | 57,154 | 61,513 |
Deferred Tax Liabilities, Net, Noncurrent | 268 | 60 |
Long-term incentive | 8,190 | 5,770 |
Total liabilities | 65,612 | 67,343 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2016 and 2015 | 0 | 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 12,979,414 shares issued at December 31, 2016 and 2015 | 13 | 13 |
Additional paid-in capital | 86,574 | 85,963 |
Retained earnings (accumulated deficit) | 38,548 | (9,647) |
Accumulated other comprehensive (loss) income | (807) | (101) |
Treasury stock, at cost; 1,692,218 and 840,202 shares at December 31, 2016 and 2015, respectively | (41,889) | (19,419) |
Total stockholders’ equity | 82,439 | 56,809 |
Total liabilities and stockholders’ equity | $ 148,051 | $ 124,152 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,979,414 | 12,979,414 |
Treasury stock, shares | 1,692,218 | 840,202 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 287,728 | $ 264,860 | $ 124,590 |
Cost of sales | 54,903 | 54,098 | 26,981 |
Gross profit | 232,825 | 210,762 | 97,609 |
Operating expenses: | |||
Commissions expense | 125,050 | 126,598 | 56,997 |
Selling, general and administrative expenses | 43,245 | 36,024 | 19,687 |
Depreciation and amortization | 394 | 263 | 105 |
Total operating expenses | 168,689 | 162,885 | 76,789 |
Income from operations | 64,136 | 47,877 | 20,820 |
Other expense, net | (59) | (84) | (184) |
Income before income taxes | 64,077 | 47,793 | 20,636 |
Income tax provision | 8,991 | 552 | 266 |
Net income | 55,086 | 47,241 | 20,370 |
Preferred stock dividends | 0 | 0 | (10) |
Net income available to common stockholders | $ 55,086 | $ 47,241 | $ 20,360 |
Income per common share: | |||
Basic (in dollars per share) | $ 4.84 | $ 3.84 | $ 1.67 |
Diluted (in dollars per share) | $ 4.83 | $ 3.82 | $ 1.61 |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 11,382 | 12,302 | 12,131 |
Diluted (in shares) | 11,407 | 12,372 | 12,600 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.61 | $ 0.14 | $ 0.030 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 55,086 | $ 47,241 | $ 20,370 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | (838) | (79) | 143 |
Release of cumulative translation adjustment | 132 | (82) | 0 |
Net change in foreign currency translation adjustment | (706) | (161) | 143 |
Unrealized losses on available-for-sale securities | 0 | (2) | 0 |
Comprehensive income | $ 54,380 | $ 47,078 | $ 20,513 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Treasury stock, shares | 26,998 | ||||||
Common stock, shares issued | 11,359,769 | ||||||
Preferred stock, shares outstanding | 123,693 | ||||||
Conversion of Stock, Shares Converted | (123,693) | ||||||
Conversion of Stock, Amount Converted | $ 111 | $ (111) | |||||
Conversion of Stock, Shares Issued | 123,693 | ||||||
Conversion of Stock, Amount Issued | $ 111 | ||||||
BALANCE at Dec. 31, 2013 | 6,077 | 111 | $ 11 | 80,690 | $ (74,619) | $ (81) | $ (35) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 20,370 | 20,370 | |||||
Exercise of warrants (in shares) | 1,407,855 | ||||||
Exercise of warrants | $ 4,948 | $ 2 | 4,946 | ||||
Repurchase of common stock (in shares) | (1,407,855) | (382,564) | |||||
Repurchase of common stock | $ (4,661) | $ (4,661) | |||||
Shares issued for stock-based compensation awards (in shares) | 25,342 | ||||||
Shares issued for stock-based compensation awards | 0 | (46) | (74) | $ 120 | |||
Dividends declared | (476) | (476) | |||||
Elimination of CTA upon dissolution | 0 | ||||||
Foreign currency translation adjustments | 143 | 143 | |||||
Unrealized loss on available-for-sale securities | 0 | ||||||
Stock-based compensation | 49 | 49 | |||||
BALANCE at Dec. 31, 2014 | 26,450 | $ 0 | $ 13 | 85,750 | (54,799) | 62 | $ (4,576) |
Treasury stock, shares | 384,220 | ||||||
Common stock, shares issued | 12,891,317 | ||||||
Preferred stock, shares outstanding | 0 | ||||||
Conversion of Stock, Amount Converted | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 47,241 | 47,241 | |||||
Exercise of warrants (in shares) | 88,097 | ||||||
Exercise of warrants | 309 | 309 | |||||
Repurchase of common stock (in shares) | (547,042) | ||||||
Repurchase of common stock | (16,071) | $ (16,071) | |||||
Shares issued for stock-based compensation awards (in shares) | 91,060 | ||||||
Shares issued for stock-based compensation awards | 666 | (182) | (380) | $ 1,228 | |||
Dividends declared | (1,709) | (1,709) | |||||
Elimination of CTA upon dissolution | (82) | (82) | |||||
Foreign currency translation adjustments | (79) | (79) | |||||
Unrealized loss on available-for-sale securities | (2) | (2) | |||||
Stock-based compensation | 86 | 86 | |||||
BALANCE at Dec. 31, 2015 | $ 56,809 | $ 0 | $ 13 | 85,963 | (9,647) | (101) | $ (19,419) |
Treasury stock, shares | (840,202) | (840,202) | |||||
Common stock, shares issued | 12,979,414 | 12,979,414 | |||||
Preferred stock, shares outstanding | 0 | ||||||
Conversion of Stock, Amount Converted | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 55,086 | 55,086 | |||||
Repurchase of common stock (in shares) | (903,031) | (903,031) | |||||
Repurchase of common stock | $ (23,704) | $ (23,704) | |||||
Shares issued for stock-based compensation awards (in shares) | 51,015 | ||||||
Shares issued for stock-based compensation awards | 1,741 | 507 | $ 1,234 | ||||
Dividends declared | (6,891) | (6,891) | |||||
Elimination of CTA upon dissolution | 132 | 132 | |||||
Foreign currency translation adjustments | (838) | (838) | |||||
Unrealized loss on available-for-sale securities | 0 | ||||||
Stock-based compensation | 104 | 104 | |||||
BALANCE at Dec. 31, 2016 | $ 82,439 | $ 0 | $ 13 | $ 86,574 | $ 38,548 | $ (807) | $ (41,889) |
Treasury stock, shares | (1,692,218) | (1,692,218) | |||||
Common stock, shares issued | 12,979,414 | 12,979,414 | |||||
Preferred stock, shares outstanding | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 55,086 | $ 47,241 | $ 20,370 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 394 | 263 | 105 |
Stock-based compensation | 104 | 86 | 49 |
Cumulative translation adjustment realized in net income | 132 | (82) | 0 |
Deferred Income Tax Expense (Benefit) | 217 | (15) | (43) |
Changes in assets and liabilities: | |||
Inventories, net | (851) | (6,762) | (2,029) |
Other current assets | (1,681) | (1,025) | (501) |
Other assets | (90) | (267) | (85) |
Accounts payable | (714) | 637 | (822) |
Income taxes payable | 303 | (115) | 243 |
Accrued commissions | (6,031) | 10,840 | 5,077 |
Other accrued expenses | 51 | 10,714 | 3,706 |
Deferred revenue | 947 | 1,331 | 147 |
Amounts held in eWallets | 2,752 | 14,350 | 2,065 |
Other current liabilities | 135 | 25 | 666 |
Long-term incentive | 2,420 | 4,105 | 1,665 |
Net cash provided by operating activities | 53,174 | 81,326 | 30,613 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (905) | (710) | (339) |
Increase in restricted cash | 0 | (3,028) | 0 |
Net cash used in investing activities | (905) | (3,738) | (339) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from exercise of warrants | 0 | 309 | 4,948 |
Repurchase of common stock | (23,704) | (16,071) | (4,661) |
Dividends paid | (6,891) | (1,709) | (476) |
Net cash used in financing activities | (30,595) | (17,471) | (189) |
Effect of exchange rates on cash and cash equivalents | (667) | (19) | 181 |
Net increase in cash and cash equivalents | 21,007 | 60,098 | 30,266 |
CASH AND CASH EQUIVALENTS, beginning of period | 104,914 | 44,816 | 14,550 |
CASH AND CASH EQUIVALENTS, end of period | $ 125,921 | $ 104,914 | $ 44,816 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating Leases The Company has entered into non-cancelable operating lease agreements for locations within the United States and for its international subsidiaries, with expirations through September 2025. Rent expense in connection with operating leases was $1.8 million , $1.5 million and $777,000 during 2016, 2015 and 2014, respectively. Future minimum lease obligations as of December 31, 2016 are as follows (in thousands): 2017 $ 1,559 2018 752 2019 402 2020 314 2021 196 Thereafter 700 Total minimum lease obligations $ 3,923 Purchase Commitments In May 2013, the Company entered into an exclusive distribution agreement with one of its suppliers to purchase its product through July 2016 which automatically renews annually unless terminated 90 days prior to the termination date. To maintain exclusivity, the Company is required to purchase a minimum of $40,000 of product per month until the termination date. As of December 31, 2016 , the Company was in compliance with the exclusivity provision. In February 2016, the Company amended a supply agreement with one of its suppliers to maintain worldwide exclusivity in return for purchasing a minimum of $9.4 million of product annually on average over the next three years, plus certain raw material guarantees. If the Company does not purchase the minimum product as required, then a Cure Payment, as defined, will be due to the supplier. The term of the agreement is three years commencing February 2016 and shall automatically renew for successive three year terms unless notice of termination is provided by either party. Employment Agreements The Company has employment agreements with certain members of its management team that can be terminated by either the employee or the Company upon four weeks’ notice. The employment agreements entered into with the management team contain provisions that guarantee the payments of specified amounts in the event of a change in control, as defined, or if the employee is terminated without cause, as defined, or terminates employment for good reason, as defined. Consumer Indemnity As required by the Door-to-Door Sales Act in South Korea, the Company maintains insurance for consumer indemnity claims with a mutual aid cooperative by possessing a mutual aid contract with Mutual Aid Cooperative & Consumer (the “Cooperative”). The contract secures payment to members in the event that the Company is unable to provide refunds to members. Typically, requests for refunds are paid directly by the Company according to the Company’s normal Korean refund policy, which requires that refund requests be submitted within three months. Accordingly, the Company estimates and accrues a reserve for product returns based on this policy and its historical experience. Depending on the sales volume, the Company may be required to increase or decrease the amount of the contract. The maximum potential amount of future payments the Company could be required to make to address actual member claims under the contract is equivalent to three months of rolling sales. At December 31, 2016 , non-current other assets include KRW 223 million (USD $185,000 ) underlying the contract, which can be utilized by the Cooperative to fund any outstanding member claims. The Company believes that the likelihood of utilizing these funds to provide for members claims is remote. Securities Class Action In January 2016, two putative securities class action complaints were filed against the Company and its top executives. On March 29, 2016, the court consolidated these actions, appointed two Lead Plaintiffs, Messrs. Dao and Juan, and appointed the Rosen Law Firm and Levi & Korsinsky LLP as co-Lead Counsel for the purported class. Plaintiffs filed a consolidated complaint on April 29, 2016. The consolidated complaint purports to assert claims on behalf of all persons who purchased or otherwise acquired our common stock between March 6, 2015 and March 15, 2016 under (i) Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against Natural Health Trends Corp., Chris T. Sharng, and Timothy S. Davidson, and (ii) Section 20(a) of the Securities Exchange Act of 1934 against Chris T. Sharng, Timothy S. Davidson, and George K. Broady. The consolidated complaint alleges, inter alia, that the Company made materially false and misleading statements regarding the legality of its business operations in China, including running an allegedly illegal multi-level marketing business. The consolidated complaint seeks an indeterminate amount of damages, plus interest and costs. The Company filed a motion to dismiss the consolidated complaint on June 15, 2016 and a reply in support of its motion to dismiss on August 22, 2016. On December 5, 2016, the Court denied the Company’s motion to dismiss. On February 17, 2017, the Company filed an answer to the consolidated complaint. The Company believes that these claims are without merit and intends to vigorously defend against them. Shareholder Derivative Claims In February 2016, a purported shareholder derivative complaint was filed in the Superior Court of the State of California, County of Los Angeles: Zhou v. Sharng . In March 2016, a purported shareholder derivative complaint was filed in the United States District Court for the Central District of California: Kleinfeldt v. Sharng (collectively the “Derivative Complaints”). The Derivative Complaints purport to assert claims for breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement and corporate waste against certain of the Company’s officers and directors. The Derivative Complaints also purport to assert fiduciary duty claims based on alleged insider selling and conspiring to enter into several stock repurchase agreements, which allegedly harmed the Company and its assets. The Derivative Complaints allege, inter alia, that the Company made materially false and misleading statements regarding the legality of its business operations in China, including running an allegedly illegal multi-level marketing business, and that certain officers and directors sold common stock on the basis of this allegedly material, adverse non-public information. The Derivative Complaints seek an indeterminate amount of damages, plus interest and costs, as well as various equitable remedies. On February 1, 2017, pursuant to a stipulation among the parties, the Los Angeles Superior Court entered a stay of the Zhou action pending conclusion of the related federal class action in the United States District Court for the Central District of California: Ford v. Natural Health Trends Corp. and Li v. Natural Health Trends Corp . A nearly identical stipulated stay was entered in the Kleinfeldt case on February 8, 2017. The Company believes that these claims are without merit and intend to vigorously defend against them. The consolidated class action and the Derivative Complaints, or others filed alleging similar facts, could result in monetary or other penalties that may materially affect the Company’s operating results and financial condition. Other Claims |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Authorized Shares The Company is authorized to issue two classes of capital stock consisting of up to 5,000,000 shares of preferred stock, $0.001 par value, and 50,000,000 shares of common stock, $0.001 par value. On May 4, 2007, the Board of Directors designated up to 1,761,900 shares of preferred stock as Series A preferred stock with the following rights and preferences: • Priority – the Series A preferred stock shall rank, in all respects, including the payment of dividends and upon liquidation, senior and prior to the common stock and other equity of the Company not expressly made senior or pari passu with the Series A preferred stock (collectively, “Junior Securities”). • Dividends –dividends at the rate per annum of $0.119 per share shall accrue from the date of issuance of any shares of Series A preferred stock, payable upon declaration by the Board of Directors. Accruing dividends shall be cumulative; provided, however, that except as set forth below for the liquidation preference, the Company shall be under no obligation to pay such dividends. No dividends shall be declared on Junior Securities (other than dividends on shares of common stock payable in shares of common stock) unless the holders of the Series A preferred stock then outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Series A preferred stock in an amount at least equal to the greater of (i) the amount of the aggregate accrued dividends on such share of Series A preferred stock and not previously paid and (ii) in the case of a dividend on common stock or any class or series of Junior Securities that is convertible into common stock, that dividend per share of Series A preferred stock as would equal the product of (1) the dividend payable on each share as if all shares of such class or series had been converted into common stock and (2) the number of shares of common stock issuable upon conversion of a share of Series A preferred stock. • Liquidation preference – in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, then, before any distribution or payment shall be made to the holders of any Junior Securities, the holders of the Series A preferred stock then outstanding shall be entitled to be paid in cash out of the assets of the Company available for distribution to its stockholders (on a pari passu basis with the holders of any series of preferred stock ranking on liquidation on a parity with the Series A preferred stock) an amount per share equal to the sum of the Series A Original Issue Price plus any dividends accrued but unpaid thereon, whether or not declared, together with any other dividends declared but unpaid thereon. If the assets of the Company are insufficient to pay the aggregate liquidation preference and the liquidation preference of any series of preferred stock ranking on liquidation on a parity with the Series A preferred stock, the holders of the Series A preferred stock and the holders of any series of preferred stock ranking on liquidation on a parity with the Series A preferred stock shall share ratably with one another in any such distribution or payment in proportion to the full amounts to which they would otherwise be respectively entitled before any distribution shall be made to the holders of the Junior Securities. The “Series A Original Issue Price” shall mean $1.70 per share, subject to adjustment. • Voting rights – the holders of shares of Series A preferred stock shall be entitled to vote with the holders of the common stock, and with the holders of any other series of preferred stock, voting together as a single class, upon all matters submitted to a vote of stockholders of the Company. Each holder of shares of Series A preferred stock shall be entitled to the number of votes equal to the product (rounded down to the nearest number of whole shares) of 0.729 times the largest number of shares of common stock into which all shares of Series A preferred stock held of record by such holder could then be converted. • Conversion – each share of Series A preferred stock shall be convertible, subject to adjustment only in the event of stock splits, stock dividends, recapitalizations and similar events that would affect all of stockholders, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock as determined by dividing the Series A Original Issue Price by the Series A Conversion Price (as defined) in effect at the time of conversion. The “Series A Conversion Price” shall initially be equal to $1.70 . Each share of Series A preferred stock shall automatically be converted into shares of common stock at the then effective conversion price immediately upon such date as the average closing price of the common stock over a consecutive, trailing 6 -month period equals or exceeds $10.00 per share. On December 3, 2014, the Company filed a Certificate of Elimination of the Series A Convertible Preferred Stock (the “Certificate”) with the Secretary of State of the State of Delaware. The Certificate, which was effective upon filing, canceled the Company’s Series A preferred stock. At the time of filing the Certificate, no shares of Series A preferred stock remained outstanding as a result of the automatic conversion of all outstanding shares into the Company’s common stock due to the fact that the average closing price of the Company’s common stock equaled or exceeded $10.00 per share over a consecutive, trailing 6 -month period that ended November 18, 2014. Common Stock Purchase Warrants On October 19, 2007, the Company issued warrants to purchase 3,141,499 shares of common stock in connection with a convertible debentures financing. The warrants consisted of seven -year warrants to purchase 1,495,952 shares of common stock, one -year warrants to purchase 1,495,952 shares of common stock, and five -year warrants to purchase 149,595 shares of common stock. The term for each of the warrants began six months and one day after their respective issuance and each have an exercise price of $3.52 per share. The exercise price and the number of shares underlying the warrants are subject to adjustment for stock dividends and splits, combinations, and reclassifications, certain rights offerings and distributions to common stockholders, and mergers, consolidations, sales of all or substantially all assets, tender offers, exchange offers, reclassifications or compulsory share exchanges. In addition, subject to certain exceptions, the exercise price and number of shares underlying the warrants are subject to anti-dilution adjustments from time to time if the Company issues its common stock or equivalent securities at below the exercise price for the warrants. If, at any time after the earlier of October 19, 2008 and the completion of the then applicable holding period under Rule 144, there is no effective registration statement for the underlying shares of common stock that are then required to be registered, the warrants may be exercised by means of a cashless exercise. Such one -year warrants expired unexercised on April 21, 2009 and such five -year warrants expired unexercised on April 21, 2013. Seven -year warrants to purchase 1,407,855 shares of common stock were exercised during 2014 at exercise prices ranging from $3.5108 to $3.52 per share for total proceeds of $4.9 million . As a result of the cash dividends declared on each share of outstanding common stock and in accordance with the terms of the related warrant agreement, the exercise price per share for each warrant was adjusted from $3.52 per share to $3.5082 per share. In April 2015, the remaining warrants to purchase 88,097 shares of common stock were exercised at $3.5043 per share for total proceeds of $309,000 . Dividends The following tables summarize the Company’s cash dividend activity during 2016, 2015 and 2014 (in thousands, except per share data): Declaration Date Per Common Share Amount Payment Date October 23, 2016 (special) $ 0.35 $ 3,941 November 25, 2016 October 23, 2016 0.08 901 November 25, 2016 July 19, 2016 0.07 787 August 26, 2016 April 21, 2016 0.06 686 May 20, 2016 March 1, 2016 0.05 576 March 24, 2016 Total $ 0.61 $ 6,891 Declaration Date Per Common Share Amount Payment Date October 21, 2015 $ 0.05 $ 598 November 20, 2015 July 28, 2015 0.04 489 August 28, 2015 May 4, 2015 0.03 372 May 29, 2015 February 27, 2015 0.02 250 March 27, 2015 Total $ 0.14 $ 1,709 Dividends Per Share Declaration Date Preferred Common Amount Payment Date November 4, 2014 $ 0.032 $ 0.010 $ 128 December 3, 2014 July 29, 2014 0.027 0.010 127 August 27, 2014 May 6, 2014 0.020 0.005 62 June 4, 2014 March 7, 2014 0.815 0.005 159 April 8, 2014 Total $ 0.894 $ 0.030 $ 476 Payment of any future dividends on shares of common stock will be at the discretion of the Company’s Board of Directors. Treasury Stock On January 12, 2016, the Board of Directors authorized an increase to the Company’s stock repurchase program first approved on July 28, 2015 from $15.0 million to $70.0 million . Repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, and will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The stock repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. During February 2016, pursuant to the stock repurchase program, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market. During the year ended December 31, 2016 , the Company purchased a total of 903,031 shares of its common stock for an aggregate purchase price of $23.7 million , plus transaction costs. As of December 31, 2016 , $32.0 million of the $70.0 million stock repurchase program approved on July 28, 2015 and increased on January 12, 2016 remained available for future purchases, inclusive of related estimated income tax. On July 28, 2015, the Board of Directors approved a stock repurchase program of up to $15.0 million of the Company’s outstanding shares of common stock. Repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, are anticipated to be conducted through December 2016, and will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. In connection therewith, the Company was advised that George K. Broady, a director of the Company and owner of more than 5% of its outstanding shares of common stock, would participate in the stock repurchase program on a basis roughly proportional to his family’s ownership interest. See Note 8. During August 2015, pursuant to the foregoing stock repurchase program, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market for a total purchase price of $3.5 million . The open market repurchases were completed on August 4, 2015. The stock repurchase program, which included both open market purchases and the purchase of shares from Mr. Broady, resulted in the Company purchasing a total of 162,442 shares of its common stock for an aggregate purchase price of $5.0 million , plus transaction costs. During October 2015, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market for a total purchase price of $3.6 million . The open market repurchases were completed on October 30, 2015. The stock repurchase program, which included both open market purchases and the purchase of shares from Mr. Broady, resulted in the Company purchasing a total of 106,264 shares of its common stock for an aggregate purchase price of $5.0 million , plus transaction costs. On May 4, 2015, the Board of Directors approved a separate, prior stock repurchase program of up to $5.0 million of the Company’s outstanding shares of common stock. In connection therewith, the Company was advised by Mr. Broady that he would participate in the stock repurchase program on a basis roughly proportional to his family’s ownership interest (see Note 8). As such, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market for a total purchase price of $3.5 million in accordance with Rules 10b5-1 and 10b-18 under the Exchange Act. The stock repurchase program, which included both open market purchases and the purchase of shares from Mr. Broady, was completed on May 13, 2015, and resulted in the Company purchasing a total of 186,519 shares of its common stock for an aggregate purchase price of $5.0 million , plus transaction costs. On January 22, 2015, the Company entered into a stock repurchase agreement with Mr. Broady that provided for the Company’s purchase from Mr. Broady in off-the-market, private transactions of a total of 91,817 shares of the Company’s common stock, which would be purchased at the rate of 5,000 shares each trading day following the date of the agreement until all of such shares were purchased (see Note 8). The shares were purchased at a per share price equal to the closing price per share of the Company’s common stock on the preceding trading day, as reported on the primary market in which the Company’s common stock is publicly traded. The Company’s purchases concluded on February 19, 2015, and resulted in an aggregate purchase price of $1.1 million . On November 4, 2014, the Board of Directors approved a special stock repurchase program of up to $5.0 million of the Company’s outstanding shares of common stock (the “Repurchase Plan”). In connection therewith, the Company was advised that Mr. Broady desired to participate in the Repurchase Plan on a basis roughly proportional to his family’s ownership interest, with an estimate of generating approximately $1.5 million through the sale of a portion of the shares of the Company’s common stock held by him (see Note 8). After noting Mr. Broady’s participation interest, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market for a total purchase price of $3.0 million in accordance with Rules 10b5-1 and 10b-18 under the Exchange Act. The Repurchase Plan was completed on December 17, 2014. The Repurchase Plan, which included both open market purchases and the purchase of shares from Mr. Broady, resulted in the Company purchasing a total of 359,840 shares of its common stock for an aggregate purchase price of $4.5 million , plus transaction costs. On August 13, 2012, the Board of Directors authorized the Company, acting as trustee for certain of its non-officer, overseas employees, to execute a Rule 10b5-1 plan to purchase 100,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-based compensation expense totaled approximately $104,000 , $86,000 and $49,000 for 2016, 2015 and 2014, respectively. No tax benefits were attributed to the stock-based compensation because a valuation allowance was maintained for substantially all net deferred tax assets. During March 2016, the Company modified the vesting feature of an award granted to a director who decided to not stand for re-election at the Company’s 2016 annual meeting of stockholders. The modification of the award resulted in an additional $64,000 in stock-based compensation expense for the three months ended March 31, 2016. At the Company’s annual meeting of stockholders held on April 7, 2016, the Company’s stockholders approved the Natural Health Trends Corp. 2016 Equity Incentive Plan (the “2016 Plan”) to replace its 2007 Equity Incentive Plan. The 2016 Plan allows for the grant of various equity awards including incentive stock options, non-statutory options, stock, stock units stock appreciation rights and other similar equity-based awards to the Company’s employees, officers, non-employee directors, contractors, consultants and advisors of the Company. Up to 2,500,000 shares of the Company’s common stock (subject to adjustment under certain circumstances) may be issued pursuant to awards granted. On April 8, 2016, the Company initially granted 51,015 shares of restricted common stock under the 2016 Plan to certain employees for the purpose of further aligning their interest with those of its stockholders and settling fiscal 2015 performance incentives. The shares vest on a quarterly basis over three years and are subject to forfeiture in the event of the employee’s termination of service to the Company under specified circumstances. The following table summarizes the Company’s restricted stock activity under the 2016 Plan: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2015 — $ — Granted 51,015 34.13 Vested (12,759 ) 34.13 Nonvested at December 31, 2016 38,256 34.13 On January 20, 2015, the Company’s Board of Directors granted 60,960 shares of restricted common stock to certain employees and its then-existing outside directors for the purpose of further aligning their interest with those of its stockholders and as to the employee shares, settling fiscal 2014 performance incentives. The shares vest on a quarterly basis over the next three years and are subject to forfeiture in the event of their termination of service to the Company under specified circumstances. On February 11, 2015, the Board of Directors granted an additional 6,116 shares of restricted common stock to its newly-elected outside directors subject to the same conditions. The following table summarizes the Company’s other restricted stock activity: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2014 — $ — Granted 67,076 12.15 Vested (22,364 ) 12.15 Nonvested at December 31, 2015 44,712 12.15 Granted — — Vested (22,364 ) 12.15 Nonvested at December 31, 2016 22,348 12.15 As of December 31, 2016 , total unrecognized stock-based compensation expense related to non-vested restricted stock was $38,000 , which is expected to be recognized over a weighted-average period of one year . On August 13, 2012, the Board of Directors authorized the Company, acting as trustee for certain of its non-officer, overseas employees, to execute a Rule 10b5-1 plan to purchase 100,000 shares of its common stock in accordance with guidelines specified under Rule 10b5-1 of the Exchange Act and the Company’s policies regarding stock transactions. Pursuant to this authority, the Company, as Trustee, entered into a 10b5-1 plan and began purchasing in December 2012. The latest 10b5-1 plan terminated in November 2014, and the Company, as Trustee, did not enter into a new 10b5-1 plan. The employees received the stock as incentive compensation in quarterly increments over three years beginning March 15, 2013, provided that they were employees of the Company on the date of the distribution. Any common stock that was forfeited by an employee whose employment terminated was delivered to the Company and held as treasury stock. Shares Wtd. Avg. Grant-Date Fair Value Nonvested at December 31, 2013 53,324 $ 1.37 Vested (25,342 ) 1.37 Forfeited (3,998 ) 1.37 Nonvested at December 31, 2014 23,984 1.37 Vested (23,984 ) 1.37 Forfeited — — Nonvested at December 31, 2015 — — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income before income taxes consist of the following (in thousands): Year Ended December 31, 2016 2015 2014 Domestic $ (3,106 ) $ (7,820 ) $ 4,502 Foreign 67,183 55,613 16,134 Income before income taxes $ 64,077 $ 47,793 $ 20,636 The components of the income tax provision consist of the following (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ 7,151 $ 12 $ 104 State (81 ) 100 11 Foreign 1,648 456 194 Total current taxes 8,718 568 309 Deferred taxes 273 (16 ) (43 ) Income tax provision $ 8,991 $ 552 $ 266 A reconciliation of the reported income tax provision to the provision that would result from applying the domestic federal statutory tax rate to pretax income is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Income tax at federal statutory rate $ 22,427 $ 16,250 $ 7,016 Effect of permanent differences 12,496 370 9 Change in valuation allowance (3,877 ) 2,017 (2,070 ) Foreign rate differential (21,713 ) (18,099 ) (5,240 ) Other reconciling items (342 ) 14 551 Income tax provision $ 8,991 $ 552 $ 266 Income before income taxes and the statutory tax rate for each country that materially contributed to the foreign rate differential presented above is as follows (in thousands): Year Ended December 31, Statutory Tax Rate 2016 2015 2014 Cayman Islands — % $ 58,169 $ 50,993 $ 16,267 Hong Kong 16.5 % 3,992 2,645 1,129 China 25.0 % 3,855 1,493 153 Deferred income taxes consist of the following (in thousands): December 31, 2016 2015 Deferred tax assets: Net operating losses $ 235 $ 3,197 Stock-based compensation 623 — Accrued expenses 3,174 3,367 Tax credits — 418 Other — 32 Total deferred tax assets 4,032 7,014 Valuation allowance (235 ) (4,112 ) Net deferred tax assets 3,797 2,902 Deferred tax liabilities: Foreign earnings (3,650 ) (2,789 ) Other (415 ) (173 ) Total deferred tax liabilities (4,065 ) (2,962 ) Net deferred tax liability $ (268 ) $ (60 ) As of December 31, 2016, the Company has released its valuation allowance against its U.S. deferred tax assets. In addition to having a net deferred tax liability and no indefinite lived intangibles, the Company analyzed all sources of available income and determined that they are more likely than not to realize the tax benefits of their deferred assets in future periods or carryback years. As of December 31, 2016, the Company has a valuation allowance against certain foreign deferred tax assets. The Company is recording a valuation allowance in foreign jurisdictions with an overall deferred tax loss. The valuation allowance will be reduced at such time as management believes it is more likely than not that the deferred tax assets will be realized. Any reductions in the valuation allowance will reduce future income tax provision. As of December 31, 2016, the Company has no U.S. federal net operating loss or credit carryforwards as any remaining attributes are expected to be fully utilized to offset tax in the current year. At December 31, 2016, the Company has foreign net operating loss carryforwards of approximately $1.3 million in various jurisdictions with various expirations. As a result of capital return activities approved by the Board of Directors during the first quarter of 2016 and anticipated future capital return activities, the Company determined that a portion of its current undistributed foreign earnings are no longer deemed reinvested indefinitely by its non-U.S. subsidiaries. The Company repatriated $19.8 million to the U.S. during the three months ended March 31, 2016, part of which was offset by U.S. net operating losses. Accordingly, the deferred tax liability previously established for undistributed foreign earnings up to its existing U.S. net operating losses was reduced. The excess amount repatriated during the year ended December 31, 2016 was generated from current foreign earnings. The Company will continue to periodically reassess the needs of its foreign subsidiaries and update its indefinite reinvestment assertion as necessary. To the extent that additional foreign earnings are not deemed permanently reinvested, the Company expects to recognize additional income tax provision at the applicable U.S. corporate tax rate. As of December 31, 2016, the Company has recorded a deferred tax liability for earnings that the Company plans to repatriate out of accumulated earnings in future periods. All undistributed earnings in excess of 50% of current earnings on an annual basis are intended to be reinvested indefinitely as of December 31, 2016. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2016 2015 2014 Cash paid during the year for: (In Thousands) Income taxes, net of refunds $ 8,791 $ 707 $ 60 Interest 9 — 1 Non-cash financing activity: Conversion of preferred stock — — 111 Issuance of treasury stock 1,741 666 — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Product Royalties On April 29, 2015, the Company entered into a Royalty Agreement and License with Broady Health Sciences, L.L.C., a Texas limited liability company, (“BHS”) regarding the manufacture and sale of a product called Soothe ™. The Company began selling this product in the fourth quarter of 2012 with the permission of BHS. Mr. Broady is owner of BHS. Under the agreement, the Company agreed to pay BHS a royalty of 2.5% of sales revenue in return for the right to manufacture (or have manufactured), market, import, export and sell this product worldwide. Further, the Company agreed to pay BHS $11,700 as royalties for the period it began selling the product in the fourth quarter of 2012 through 2014. The Company recognized royalties of $3,400 , $7,000 and $6,400 during 2016, 2015 and 2014, respectively. The Company is not required to purchase any product under the agreement, and the agreement may be terminated at any time on 120 days ’ notice. Otherwise, the agreement terminates March 31, 2020. In February 2013, the Company entered into a Royalty Agreement and License with BHS regarding the manufacture and sale of a product called ReStor™. Under this agreement, the Company agreed to pay BHS a royalty of 2.5% of sales revenue in return for the right to manufacture (or have manufactured), market, import, export and sell this product worldwide, with certain rights being exclusive outside the United States. On April 29, 2015, the Company and BHS amended the Royalty and Agreement and License to change the royalty to a price per unit instead of 2.5% of sales revenue. This provision was effective retroactive to January 1, 2015. The Company recognized royalties of $475,000 , $555,000 and $144,000 during 2016, 2015 and 2014, respectively. The Company is not required to purchase any product under the agreement, and the agreement may be terminated at any time on 120 days’ notice or, under certain circumstances, with no notice. Otherwise, the agreement terminates March 31, 2020. Stock Repurchase Agreements On October 28, 2015, the Company entered into a Stock Repurchase Agreement with Mr. Broady that provided for the Company’s purchase of common stock from Mr. Broady in off-the-market, private transactions at a rate equal to 0.4066 times the number of shares purchased by the Company’s broker in conjunction with the stock repurchase program authorized by the Company’s Board of Directors on July 28, 2015. The Company’s purchases from Mr. Broady concluded on November 2, 2015, were completed at a per share purchase price equal to the weighted average price per share paid by the Company’s broker in its open-market purchases, and resulted in an aggregate purchase price of $1.4 million . See Note 4. On July 31, 2015, the Company entered into a Stock Repurchase Agreement with Mr. Broady that provided for the Company’s purchase of common stock from Mr. Broady in off-the-market, private transactions at a rate equal to 0.4085 times the number of shares purchased by the Company’s broker in conjunction with the stock repurchase program authorized by the Company’s Board of Directors on July 28, 2015. The Company’s purchases from Mr. Broady concluded on August 6, 2015, were completed at a per share purchase price equal to the weighted average price per share paid by the Company’s broker in its open-market purchases, and resulted in an aggregate purchase price of $1.5 million . See Note 4. On May 7, 2015, the Company entered into a Stock Repurchase Agreement with Mr. Broady that provided for the Company’s purchase of common stock from Mr. Broady in off-the-market, private transactions at a rate equal to 0.4286 times the number of shares purchased by the Company’s broker in conjunction with the stock repurchase program authorized by the Company’s Board of Directors on May 4, 2015. The Company’s purchases from Mr. Broady concluded on May 13, 2015, were completed at a per share purchase price equal to the weighted average price per share paid by the Company's broker in its open-market purchases, and resulted in an aggregate purchase price of $1.5 million . See Note 4. On January 22, 2015, the Company entered into a Stock Repurchase Agreement with Mr. Broady that provided for the Company’s purchase from Mr. Broady in off-the-market, private transactions of a total of 91,817 shares of the Company’s common stock, which would be purchased at the rate of 5,000 shares each trading day following the date of the agreement until all of such shares were purchased. The shares were purchased at a per share price equal to the closing price per share of the Company’s common stock on the preceding trading day, as reported on the primary market in which the Company’s common stock was publicly traded. The Company’s purchases concluded on February 19, 2015, and resulted in an aggregate purchase price of $1.1 million . See Note 4. On November 14, 2014, the Company entered into a Stock Repurchase Agreement with Mr. Broady that provided for the Company’s purchase from Mr. Broady of one-half of the number of shares of common stock purchased by the Company’s broker in the open market under the Repurchase Plan approved by the Company’s Board of Directors on November 4, 2014. The Stock Repurchase Agreement with Mr. Broady required that the Company report to Mr. Broady on a weekly basis information regarding the broker’s open market purchases, and that the Company purchase from Mr. Broady on a weekly basis at a per share purchase price equal to the weighted average price per share paid by the Company’s broker to purchase shares in the open market. The Company’s purchases concluded on December 17, 2014, totaled 119,947 shares of its common stock and resulted in an aggregate purchase price of $1.5 million |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has a 401(k) defined contribution plan which permits participating employees in the United States to defer up to a maximum of 90% of their compensation, subject to limitations established by the Internal Revenue Service. Employees age 21 and older are eligible to contribute to the plan starting the first day of the following month of employment. Participating employees are eligible to receive discretionary matching contributions and profit sharing, subject to certain conditions, from the Company. In 2016, 2015 and 2014, the Company matched employee deferral contributions up to 4.5% of salary, which vested 100% immediately. No profit sharing has been paid under the plan. The Company recorded compensation expense of $134,000 , $115,000 and $60,000 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company sells products to a member network that operates in a seamless manner from market to market, except for the Chinese market where it sells to consumers through an e-commerce retail platform. Outside of the China e-commerce retail platform, the Company believes that all of its other operating segments have similar economic characteristics, except for its operations located within the Commonwealth of Independent States (“CIS”). In making this determination, the Company believes that its operating segments are similar in the nature of the products sold, the product acquisition process, the types of customers products are sold to, the methods used to distribute the products, and the nature of the regulatory environment. The Company’s engagement of a third-party service provider in the CIS market results in a different economic structure than its other markets. However, there is no separate segment manager who is held accountable by the Company’s chief operating decision-makers, or anyone else, for operations, operating results and planning for the either Chinese or the CIS markets on a stand-alone basis, and neither market is material for the two years presented. As such, the Company believes that all operating segments should be aggregated into a single reportable segment for disclosure purposes. The Company’s net sales by geographic area are as follows (in thousands): Year Ended December 31, 2016 2015 2014 Net sales from external customers: United States $ 4,100 $ 3,246 $ 1,438 Canada 1,809 2,746 1,374 Hong Kong 263,482 245,737 111,028 China 9,086 4,425 1,538 Taiwan 6,213 5,965 4,628 South Korea 691 1,129 1,009 Commonwealth of Independent States (Russia, Kazakhstan and Ukraine) 1 858 1,139 3,113 Europe 1,234 382 373 Other foreign countries 255 91 89 Total net sales $ 287,728 $ 264,860 $ 124,590 1 The Company discontinued its Ukraine operations during the second quarter of 2015. The Company’s net sales by product and service are as follows (in thousands): Year Ended December 31, 2016 2015 2014 Net sales by product and service: Product sales $ 269,731 $ 253,041 $ 118,843 Enrollment package revenue, freight and other 25,616 17,623 7,927 Less: sales returns (7,619 ) (5,804 ) (2,180 ) Total net sales $ 287,728 $ 264,860 $ 124,590 Due to system constraints, it is impracticable for the Company to separately disclose sales by product category for the years presented. The Company’s long-lived assets by geographic area are as follows (in thousands): December 31, 2016 2015 Long-lived assets: United States $ 763 $ 283 Hong Kong 140 204 China 199 252 Other foreign countries 286 155 Total long-lived assets $ 1,388 $ 894 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 24, 2017 , the Board of Directors declared a cash dividend of $0.09 and a special cash dividend of $0.35 on each share of common stock outstanding. Such dividends were paid on March 3, 2017 to stockholders of record on February 21, 2017 . Payment of any future dividends on shares of common stock will be at the discretion of the Company’s Board of Directors. On January 24, 2017, the Company granted 56,260 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain accounts receivable balances have been reclassified in the prior year consolidated financial statements to conform to current year presentation. No change in total current assets occurred. Additionally, deferred tax liability balances have been reclassified from current to long-term in the prior year consolidated financial statements to conform to the early adoption of ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2016 , cash and cash equivalents include $6.8 million held in banks located within China subject to foreign currency controls. The Company includes credit card receivables due from certain of its credit card processors in its cash and cash equivalents as the cash proceeds are received within two to five days. Additionally, as of December 31, 2016 , cash and cash equivalents include the Company's investments in debt securities, comprising municipal notes, bonds and corporate debt, money market funds and time deposits. The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities . As such, the Company determined its investments in debt securities held at December 31, 2016 |
Restricted Cash | Restricted Cash In June 2015, the Company funded a bank deposit account in the amount of CNY 20 million (USD 2.9 million at December 31, 2016 ) in anticipation of submitting a direct selling license application in China. Such deposit is required by Chinese laws to establish a consumer protection fund. |
Inventories | Inventories Inventories consist primarily of finished goods and are stated at the lower of cost or market, using the first-in, first-out method. The Company reviews its inventory for obsolescence and any inventory identified as obsolete is reserved or written off. The Company’s determination of obsolescence is based on assumptions about the demand for its products, product expiration dates, estimated future sales, and management’s future plans. At December 31, 2016 and 2015 , the reserve for obsolescence totaled $82,000 , and $29,000 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years for office equipment and office software and five to seven years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the assets. Expenditures for maintenance and repairs are charged to expense as incurred. |
Goodwill | Goodwill |
Income Taxes | Income Taxes The Company recognizes income taxes under the liability method of accounting for income taxes. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the temporary differences are expected to be recovered or settled. Deferred tax expense or benefit is a result of changes in deferred tax assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized based on the more likely than not recognition criteria. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company has evaluated its tax positions and determined that there are no uncertain tax positions for the current year or years prior. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. |
Amounts Held in Distributor eWallets | Amounts Held in eWallets |
Long-Term Incentive | Long-Term Incentive Financial rewards earned under the 2014 Long-Term Incentive Plan (the “LTI Plan”) are recognized over the performance period as specified performance or other goals are achieved or exceeded. In accordance with the LTI Plan, fifty percent of any cash payment earned is payable in thirty-five equal consecutive monthly installments commencing in February of the calendar year immediately following the conclusion of the performance period and the remaining fifty percent of the payment earned is payable in thirty-five equal consecutive monthly installments commencing in February 2021 and ending in December 2023. As such, certain installments to be paid are reflected on the balance sheet as a non-current liability, and the current portion of the installments is reflected in other accrued expenses. |
Foreign Currency | Foreign Currency |
Revenue Recognition | Revenue Recognition Product sales are recorded when the products are shipped and title passes to independent members. Product sales to members are made pursuant to a member agreement that provides for transfer of both title and risk of loss upon the Company’s delivery to the carrier that completes delivery to the members, which is commonly referred to as “F.O.B. Shipping Point.” The Company primarily receives payment by credit card at the time members place orders. Amounts received for unshipped product are recorded as deferred revenue. The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. Enrollment package revenue, including any nonrefundable set-up fees, is deferred and recognized over the term of the arrangement, generally twelve months. Enrollment packages provide members access to both a personalized marketing website and a business management system. No upfront costs are deferred as the amount is nominal. Shipping charges billed to members are included in net sales. Costs associated with shipments are included in cost of sales. Event and training revenue is deferred and recognized as the event or training occurs. Costs of events and member training are included within selling, general and administrative expenses. |
Operating Leases | |
Commissions | Commissions Independent members earn commissions based on total personal and group bonus volume points per weekly sales period. Each of the Company’s products are designated a specified number of bonus volume points, which is essentially a percentage of the product’s wholesale price. The Company accrues commissions when earned and pays commissions on product sales generally two weeks following the end of the weekly sales period. In some markets, the Company also pays certain bonuses on purchases by up to three generations of personally enrolled members, as well as bonuses on commissions earned by up to three generations of personally enrolled members. Independent members may also earn incentives based on meeting certain qualifications during a designated incentive period, which may range from several weeks to up to a year. These incentives may be both monetary and non-monetary in nature. The Company estimates and accrues all costs associated with the incentives as the members meet the qualification requirements. |
Stock-Based Compensation | Stock-Based Compensation |
Income Per Share | Income Per Share Basic income per share for 2014 was computed via the “two-class” method by dividing net income allocated to common stockholders by the weighted-average number of common shares outstanding during the period. Net income available to common stockholders is allocated to both common stock and participating securities as if all of the income for the period had been distributed. The Company’s Series A convertible preferred stock was a participating security due to its participation rights related to dividends declared by the Company. If dividends were distributed to common stockholders, the Company was also required to pay dividends to the holders of the preferred stock in an amount equal to the greater of (1) the amount of dividends then accrued and not previously paid on such shares of preferred stock or (2) the amount payable if dividends were distributed to the common stockholders on an as-converted basis. |
Certain Risks and Concentrations | Certain Risks and Concentrations A substantial portion of the Company’s sales are generated in Hong Kong (see Note 10). Substantially all of the Company’s Hong Kong revenues are derived from the sale of products that are delivered to members in China. In contrast to the Company’s operations in other parts of the world, the Company has not implemented a direct sales model in China. The Chinese government permits direct selling only by organizations that have a license, which the Company has applied for, and has also adopted anti-multilevel marketing legislation. The Company operates an e-commerce direct selling model in Hong Kong and recognizes the revenue derived from sales to both Hong Kong and Chinese members as being generated in Hong Kong. Products purchased by members in China are delivered to third parties that act as the importers of record under agreements to pay applicable duties. In addition, through a Chinese entity, the Company sells products in China using an e-commerce retail model. The Chinese entity operates separately from the Hong Kong entity, and a Chinese member may elect to participate separately or in both. The Company believes that its e-commerce direct selling model in Hong Kong does not violate any applicable laws in China, even though it is used for the internet purchase of the Company's products by members in China. The Company also believes that its Chinese entity, including its e-commerce retail platform, is operating in compliance with applicable Chinese laws. However, there can be no assurance that the Chinese authorities will agree with the Company’s interpretations of applicable laws and regulations or that China will not adopt new laws or regulations. Should the Chinese government determine that the Company’s activities violate China’s direct selling or anti-multilevel marketing legislation, or should new laws or regulations be adopted, there could be a material adverse effect on the Company’s business, financial condition and results of operations. Although the Company attempts to work closely with both national and local Chinese governmental agencies in conducting its business, the Company’s efforts to comply with national and local laws may be harmed by a rapidly evolving regulatory climate, concerns about activities resembling violations of direct selling or anti-multi-level marketing legislation, subjective interpretations of laws and regulations, Chinese nationals collaborating with short traders to damage the Company's business and activities by individual members that may violate laws notwithstanding the Company’s strict policies prohibiting such activities. Any determination that the Company’s operations or activities, or the activities of its individual members or employee sales representatives, or importers of record are not in compliance with applicable laws and regulations could result in the imposition of substantial fines, extended interruptions of business, restrictions on the Company’s future ability to obtain business licenses or expand into new locations, changes to its business model, the termination of required licenses to conduct business, or other actions, any of which could materially harm the Company’s business, financial condition and results of operations. The Company’s Premium Noni Juice and Enhanced Essential Probiotics ® |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts payable and accrued expenses, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. The Company’s cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows - Restricted Cash , that requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting , that simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those annual years, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , that requires organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual years, and early application is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . Under this guidance, entities are required to present deferred tax tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. This guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. Entities are permitted to adopt this guidance either prospectively or retrospectively. The Company elected to early adopt this guidance prospectively as of the quarter ended December 31, 2016. In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory. Under this guidance, inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers |
Nature of Operations and Summ18
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents at the end of each period were as follows (in thousands): December 31, 2016 2015 Cash $ 52,453 $ 47,431 Cash equivalents 73,468 57,483 Total cash and cash equivalents $ 125,921 $ 104,914 |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of basic and diluted income per share for the periods indicated (in thousands, except per share data): Year Ended December 31, 2016 2015 2014 Income Shares Per Share Income Shares Per Share Income Shares Per Share Basic EPS: Net income available to common stockholders $ 55,086 $ 47,241 $ 20,360 Less: undistributed earnings to participating securities — — (127 ) Net income allocated to common stockholders $ 55,086 11,382 $ 4.84 $ 47,241 12,302 $ 3.84 $ 20,233 12,131 $ 1.67 Effect of dilutive securities: Warrants to purchase common stock — — — 21 — 421 Non-vested restricted stock — 25 — 49 — 48 Plus: reallocation of undistributed earnings to participating securities — — 5 Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 55,086 11,407 $ 4.83 $ 47,241 12,372 $ 3.82 $ 20,238 12,600 $ 1.61 |
Available-for-sale Securities | Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands): December 31, 2016 December 31, 2015 Adjusted Cost Gross Unrealized Gains/Losses Fair Value Adjusted Cost Gross Unrealized Gains/Losses Fair Value Municipal bonds and notes $ 43,490 $ — $ 43,490 $ 35,222 $ 2 $ 35,224 Corporate debt securities 1,673 (2 ) 1,671 5,029 (5 ) 5,024 Financial institution instruments 28,307 — 28,307 17,235 — 17,235 Total available-for-sale investments $ 73,470 $ (2 ) $ 73,468 $ 57,486 $ (3 ) $ 57,483 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Additional Balance Sheet Components | The components of certain balance sheet amounts are as follows (in thousands): December 31, 2016 2015 Property and equipment: Office equipment $ 517 $ 495 Office software 672 536 Machinery 28 24 Furniture and fixtures 241 222 Leasehold improvements 840 730 Construction in progress (including internal use software development costs) 157 10 Property and equipment, at cost 2,455 2,017 Accumulated depreciation and amortization (1,067 ) (1,123 ) $ 1,388 $ 894 Other accrued expenses: Sales returns $ 1,632 $ 1,552 Employee-related expense 10,541 11,064 Warehousing, inventory-related and other 2,816 4,087 $ 14,989 $ 16,703 Deferred revenue: Unshipped product $ 2,191 $ 1,783 Auto ship advances 2,327 1,597 Enrollment package revenue 430 331 Market development fees — 300 $ 4,948 $ 4,011 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease obligations as of December 31, 2016 are as follows (in thousands): 2017 $ 1,559 2018 752 2019 402 2020 314 2021 196 Thereafter 700 Total minimum lease obligations $ 3,923 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Payable | The following tables summarize the Company’s cash dividend activity during 2016, 2015 and 2014 (in thousands, except per share data): Declaration Date Per Common Share Amount Payment Date October 23, 2016 (special) $ 0.35 $ 3,941 November 25, 2016 October 23, 2016 0.08 901 November 25, 2016 July 19, 2016 0.07 787 August 26, 2016 April 21, 2016 0.06 686 May 20, 2016 March 1, 2016 0.05 576 March 24, 2016 Total $ 0.61 $ 6,891 Declaration Date Per Common Share Amount Payment Date October 21, 2015 $ 0.05 $ 598 November 20, 2015 July 28, 2015 0.04 489 August 28, 2015 May 4, 2015 0.03 372 May 29, 2015 February 27, 2015 0.02 250 March 27, 2015 Total $ 0.14 $ 1,709 Dividends Per Share Declaration Date Preferred Common Amount Payment Date November 4, 2014 $ 0.032 $ 0.010 $ 128 December 3, 2014 July 29, 2014 0.027 0.010 127 August 27, 2014 May 6, 2014 0.020 0.005 62 June 4, 2014 March 7, 2014 0.815 0.005 159 April 8, 2014 Total $ 0.894 $ 0.030 $ 476 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested Restricted Stock Shares Activity | The following table summarizes the Company’s other restricted stock activity: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2014 — $ — Granted 67,076 12.15 Vested (22,364 ) 12.15 Nonvested at December 31, 2015 44,712 12.15 Granted — — Vested (22,364 ) 12.15 Nonvested at December 31, 2016 22,348 12.15 As of December 31, 2016 , total unrecognized stock-based compensation expense related to non-vested restricted stock was $38,000 , which is expected to be recognized over a weighted-average period of one year |
Schedule of Nonvested Share Activity | Shares Wtd. Avg. Grant-Date Fair Value Nonvested at December 31, 2013 53,324 $ 1.37 Vested (25,342 ) 1.37 Forfeited (3,998 ) 1.37 Nonvested at December 31, 2014 23,984 1.37 Vested (23,984 ) 1.37 Forfeited — — Nonvested at December 31, 2015 — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income before income taxes consist of the following (in thousands): Year Ended December 31, 2016 2015 2014 Domestic $ (3,106 ) $ (7,820 ) $ 4,502 Foreign 67,183 55,613 16,134 Income before income taxes $ 64,077 $ 47,793 $ 20,636 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax provision consist of the following (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ 7,151 $ 12 $ 104 State (81 ) 100 11 Foreign 1,648 456 194 Total current taxes 8,718 568 309 Deferred taxes 273 (16 ) (43 ) Income tax provision $ 8,991 $ 552 $ 266 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the reported income tax provision to the provision that would result from applying the domestic federal statutory tax rate to pretax income is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Income tax at federal statutory rate $ 22,427 $ 16,250 $ 7,016 Effect of permanent differences 12,496 370 9 Change in valuation allowance (3,877 ) 2,017 (2,070 ) Foreign rate differential (21,713 ) (18,099 ) (5,240 ) Other reconciling items (342 ) 14 551 Income tax provision $ 8,991 $ 552 $ 266 |
Income Tax Foreign Rate Differential [Table Text Block] | Year Ended December 31, Statutory Tax Rate 2016 2015 2014 Cayman Islands — % $ 58,169 $ 50,993 $ 16,267 Hong Kong 16.5 % 3,992 2,645 1,129 China 25.0 % 3,855 1,493 153 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes consist of the following (in thousands): December 31, 2016 2015 Deferred tax assets: Net operating losses $ 235 $ 3,197 Stock-based compensation 623 — Accrued expenses 3,174 3,367 Tax credits — 418 Other — 32 Total deferred tax assets 4,032 7,014 Valuation allowance (235 ) (4,112 ) Net deferred tax assets 3,797 2,902 Deferred tax liabilities: Foreign earnings (3,650 ) (2,789 ) Other (415 ) (173 ) Total deferred tax liabilities (4,065 ) (2,962 ) Net deferred tax liability $ (268 ) $ (60 ) |
Supplemental Cash Flow Inform24
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash flow, supplemental disclosures | SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2016 2015 2014 Cash paid during the year for: (In Thousands) Income taxes, net of refunds $ 8,791 $ 707 $ 60 Interest 9 — 1 Non-cash financing activity: Conversion of preferred stock — — 111 Issuance of treasury stock 1,741 666 — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The Company’s net sales by geographic area are as follows (in thousands): Year Ended December 31, 2016 2015 2014 Net sales from external customers: United States $ 4,100 $ 3,246 $ 1,438 Canada 1,809 2,746 1,374 Hong Kong 263,482 245,737 111,028 China 9,086 4,425 1,538 Taiwan 6,213 5,965 4,628 South Korea 691 1,129 1,009 Commonwealth of Independent States (Russia, Kazakhstan and Ukraine) 1 858 1,139 3,113 Europe 1,234 382 373 Other foreign countries 255 91 89 Total net sales $ 287,728 $ 264,860 $ 124,590 |
Schedule of Segment Reporting Information, by Segment | The Company’s net sales by product and service are as follows (in thousands): Year Ended December 31, 2016 2015 2014 Net sales by product and service: Product sales $ 269,731 $ 253,041 $ 118,843 Enrollment package revenue, freight and other 25,616 17,623 7,927 Less: sales returns (7,619 ) (5,804 ) (2,180 ) Total net sales $ 287,728 $ 264,860 $ 124,590 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The Company’s long-lived assets by geographic area are as follows (in thousands): December 31, 2016 2015 Long-lived assets: United States $ 763 $ 283 Hong Kong 140 204 China 199 252 Other foreign countries 286 155 Total long-lived assets $ 1,388 $ 894 |
Nature of Operations and Summ26
Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)installment | Dec. 31, 2014USD ($)shares | Jun. 30, 2015USD ($) | Dec. 31, 2013USD ($) | Oct. 19, 2007shares | |
Property, Plant and Equipment [Line Items] | ||||||
Cash | $ 52,453,000 | $ 47,431,000 | ||||
Cash equivalents | 73,468,000 | 57,483,000 | ||||
Cash and cash equivalents | 125,921,000 | 104,914,000 | $ 44,816,000 | $ 14,550,000 | ||
Restricted cash | 2,900,000 | $ 20,000,000 | ||||
Inventory valuation reserves | 82,000 | 29,000 | ||||
Deferred tax liability recorded against undistributed foreign earnings | 3,650,000 | 2,789,000 | ||||
Loss on foreign exchange | $ (333,000) | $ (204,000) | $ (202,000) | |||
Number of securities called by warrants | shares | 88,097 | 3,141,499 | ||||
Long-Term Incentive Plan, Payment Commencing in February of the Calendar Year Immediately Following the Conclusion of the Performance Period | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Long-term incentive plan, percentage of award payable in cash | 50.00% | |||||
Long-term incentive plan, number of installments | installment | 35 | |||||
Long-Term Incentive Plan, Payment Commencing in February 2021 and Ending in December 2023 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Long-term incentive plan, percentage of award payable in cash | 50.00% | |||||
Long-term incentive plan, number of installments | installment | 35 | |||||
Software and Software Development Costs [Member] | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, and equipment useful life | 3 years | |||||
Software and Software Development Costs [Member] | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, and equipment useful life | 5 years | |||||
Furniture and Fixtures | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, and equipment useful life | 5 years | |||||
Furniture and Fixtures | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, and equipment useful life | 7 years | |||||
China | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Cash and cash equivalents | $ 6,800,000 |
Nature of Operations and Summ27
Nature of Operations and Summary of Significant Accounting Policies - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 345 | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 19,800 | |||
Basic EPS: | ||||
Net income available to common stockholders | $ 55,086 | $ 47,241 | $ 20,360 | |
Less: undistributed earnings to participating securities | $ 0 | $ 127 | ||
Net income allocated to common stockholders (in shares) | 11,382,000 | 12,302,000 | 12,131,000 | |
Net income allocated to common stockholders (in dollars per share) | $ 4.84 | $ 3.84 | $ 1.67 | |
Effect of dilutive securities: | ||||
Warrants to purchase common stock (in shares) | 0 | 21,000 | 421,000 | |
Non-vested restricted stock (in shares) | 25,000 | 49,000 | 48,000 | |
Plus: reallocation of undistributed earnings to participating securities | $ 0 | $ 5 | ||
Diluted EPS: | ||||
Net income allocated to common stockholders plus assumed conversions | $ 55,086 | $ 47,241 | $ 20,238 | |
Net income allocated to common stockholders plus assumed conversions (in shares) | 11,407,000 | 12,372,000 | 12,600,000 | |
Net income allocated to common stockholders plus assumed conversions (in dollars per share) | $ 4.83 | $ 3.82 | $ 1.61 | |
Distributed | ||||
Basic EPS: | ||||
Net income available to common stockholders | $ 55,086 | $ 47,241 | $ 20,233 |
Nature of Operations and Summ28
Nature of Operations and Summary of Significant Accounting Policies - Summary of Available-for-sale Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Adjusted Cost | $ 73,470 | $ 57,486 |
Gross Unrealized Gains/Losses | (2) | (3) |
Fair Value | 73,468 | 57,483 |
Municipal bonds and notes | ||
Debt Instrument [Line Items] | ||
Adjusted Cost | 43,490 | 35,222 |
Gross Unrealized Gains/Losses | 0 | 2 |
Fair Value | 43,490 | 35,224 |
Corporate debt securities | ||
Debt Instrument [Line Items] | ||
Adjusted Cost | 1,673 | 5,029 |
Gross Unrealized Gains/Losses | (2) | (5) |
Fair Value | 1,671 | 5,024 |
Financial institution instruments | ||
Debt Instrument [Line Items] | ||
Adjusted Cost | 28,307 | 17,235 |
Gross Unrealized Gains/Losses | 0 | 0 |
Fair Value | $ 28,307 | $ 17,235 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property and equipment: | ||
Office equipment | $ 517 | $ 495 |
Office software | 672 | 536 |
Machinery | 28 | 24 |
Furniture and fixtures | 241 | 222 |
Leasehold improvements | 840 | 730 |
Construction in progress | 157 | 10 |
Property and equipment, at cost | 2,455 | 2,017 |
Accumulated depreciation and amortization | (1,067) | (1,123) |
Property and equipment, net | 1,388 | 894 |
Other accrued expenses: | ||
Sales returns | 1,632 | 1,552 |
Employee-related expense | 10,541 | 11,064 |
Warehousing, inventory-related and other | 2,816 | 4,087 |
Other accrued expenses | 14,989 | 16,703 |
Deferred revenue: | ||
Deferred revenue | 4,948 | 4,011 |
Unshipped product | ||
Deferred revenue: | ||
Deferred revenue | 2,191 | 1,783 |
Auto ship advances | ||
Deferred revenue: | ||
Deferred revenue | 2,327 | 1,597 |
Enrollment package revenue | ||
Deferred revenue: | ||
Deferred revenue | 430 | 331 |
Market development fees | ||
Deferred revenue: | ||
Deferred revenue | $ 0 | $ 300 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) ₩ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016KRW (₩) | |
Loss Contingencies [Line Items] | ||||
Rent expense for operating leases | $ 1,800,000 | $ 1,500,000 | $ 777,000 | |
Minimum monthly purchase amount | 40,000 | |||
Minimum annual purchase amount | $ 9,400,000 | |||
Purchase commitment term | 3 years | |||
Purchase commitment renewal term | 3 years | |||
Korean Business Segment | Other Noncurrent Assets | ||||
Loss Contingencies [Line Items] | ||||
Distributor claims reserve | $ 185,000 | ₩ 223 |
Commitments and Contingencies31
Commitments and Contingencies - Future Minimum Lease Obligations (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 1,559 |
2,017 | 752 |
2,018 | 402 |
2,019 | 314 |
2,020 | 196 |
Thereafter | 700 |
Total minimum lease obligations | $ 3,923 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Oct. 30, 2015USD ($)shares | Oct. 28, 2015USD ($) | Aug. 04, 2015USD ($)shares | Aug. 03, 2015USD ($) | Jul. 31, 2015USD ($) | May 13, 2015USD ($)shares | May 07, 2015USD ($) | May 04, 2015USD ($) | Jan. 22, 2015USD ($)shares | Nov. 04, 2014USD ($)shares | Apr. 30, 2015USD ($)$ / sharesshares | Dec. 17, 2014USD ($)shares | Apr. 21, 2013 | Apr. 21, 2009 | Oct. 19, 2007USD ($)$ / sharesshares | Dec. 31, 2016USD ($)class$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Jan. 12, 2016USD ($) | Jul. 28, 2015USD ($) | Aug. 13, 2012shares | May 04, 2007$ / shares |
Class of Stock [Line Items] | ||||||||||||||||||||||
Number of classes of stock | class | 2 | |||||||||||||||||||||
Preferred stock, shares authorized | shares | 5,000,000 | 5,000,000 | ||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||||||||||
Common stock, shares authorized | shares | 50,000,000 | 50,000,000 | ||||||||||||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||||||||||
Preferred stock, dividends per share, declared | 0.119 | |||||||||||||||||||||
Share price | 1.70 | |||||||||||||||||||||
Preferred stock, voting rights | $ 0.729 | |||||||||||||||||||||
Number of securities called by warrants | shares | 3,141,499 | 88,097 | ||||||||||||||||||||
Warrants, exercise price | $ 3.52 | |||||||||||||||||||||
Proceeds from exercise of warrants | $ | $ 0 | $ 309,000 | $ 4,948,000 | |||||||||||||||||||
Authorized amount of shares to be repurchased | $ | $ 5,000,000 | $ 5,000,000 | $ 70,000,000 | $ 15,000,000 | ||||||||||||||||||
Treasury stock, purchase price | $ | $ 3,600,000 | $ 3,500,000 | $ 3,500,000 | $ 3,000,000 | ||||||||||||||||||
Repurchase of common stock (in shares) | shares | 106,264 | 162,442 | 186,519 | 88,097 | 359,840 | 903,031 | 1,407,855 | |||||||||||||||
Repurchase of common stock | $ | $ 5,000,000 | $ 1,400,000 | $ 5,000,000 | $ 1,500,000 | $ 5,000,000 | $ 1,500,000 | $ 4,500,000 | $ 23,704,000 | $ 16,071,000 | $ 4,661,000 | ||||||||||||
Remaining authorized repurchase amount | $ | $ 32,000,000 | |||||||||||||||||||||
Number of shares authorized to be repurchased | shares | 100,000 | |||||||||||||||||||||
George K. Broady | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Repurchase of common stock (in shares) | shares | 91,817 | 1,500,000 | ||||||||||||||||||||
Repurchase of common stock | $ | $ 1,100,000 | |||||||||||||||||||||
Shares repurchased per trading day | shares | 5,000 | |||||||||||||||||||||
Seven Year Warrants | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Term of warrant | 7 years | 7 years | ||||||||||||||||||||
Warrants, exercise price | $ 3.5043 | |||||||||||||||||||||
Proceeds from exercise of warrants | $ | $ 309,000 | $ 4,900,000 | ||||||||||||||||||||
Authorized amount of shares to be repurchased | $ | $ 1,495,952 | |||||||||||||||||||||
One Year Warrants | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Term of warrant | 1 year | 1 year | ||||||||||||||||||||
Five Year Warrants | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Term of warrant | 5 years | 5 years | ||||||||||||||||||||
Authorized amount of shares to be repurchased | $ | $ 149,595 | |||||||||||||||||||||
Minimum | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Warrants, exercise price | $ 3.5108 | |||||||||||||||||||||
Minimum | Seven Year Warrants | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Warrants, exercise price | 3.5082 | |||||||||||||||||||||
Maximum | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Warrants, exercise price | 3.52 | |||||||||||||||||||||
Maximum | Seven Year Warrants | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Warrants, exercise price | $ 3.52 | |||||||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Preferred stock, shares outstanding | shares | 1,761,900 | |||||||||||||||||||||
Share price | $ 1.70 | |||||||||||||||||||||
Series A Preferred Stock | Minimum | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Share price | $ 10 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividend Activity (Details) - USD ($) | Nov. 25, 2016 | Aug. 26, 2016 | May 20, 2016 | Mar. 24, 2016 | Nov. 20, 2015 | Aug. 28, 2015 | May 29, 2015 | Mar. 27, 2015 | Dec. 03, 2014 | Aug. 27, 2014 | Jun. 04, 2014 | Apr. 08, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.032 | $ 0.027 | $ 0.020 | $ 0.815 | $ 0.894 | ||||||||||
Dividends Per Share, Common (in dollars per share) | $ 0.08 | $ 0.07 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.010 | $ 0.010 | $ 0.005 | $ 0.005 | $ 0.61 | $ 0.14 | $ 0.030 |
Dividends | $ 901,000 | $ 6,891,000 | $ 1,709,000 | $ 476,000 | |||||||||||
CommonStockSpecialDividendsPerShareDeclared | $ 0.35 | ||||||||||||||
Dividends, cash | $ 3,941,000 | $ 787,000 | $ 686,000 | $ 576,000 | $ 598,000 | $ 489,000 | $ 372,000 | $ 250,000 | $ 128,000 | $ 127,000 | $ 62,000 | $ 159,000 | $ 6,891,000 | $ 1,709,000 | $ 476,000 |
Payment Date | Nov. 25, 2016 | Aug. 26, 2016 | May 20, 2016 | Mar. 24, 2016 | Nov. 20, 2015 | Aug. 28, 2015 | May 29, 2015 | Mar. 27, 2015 | Dec. 3, 2014 | Aug. 27, 2014 | Jun. 4, 2014 | Apr. 8, 2014 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | Apr. 08, 2016 | Feb. 11, 2015 | Jan. 20, 2015 | Aug. 13, 2012 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 07, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Share-based compensation expense | $ 104,000 | $ 86,000 | $ 49,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ 64,000 | ||||||||
Tax benefit attributable to compensation expense | $ 0 | ||||||||
Number of shares authorized to be repurchased | 100,000 | ||||||||
Incentive compensation period | 3 years | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Shares granted during period | 51,015 | 6,116 | 60,960 | 0 | 67,076 | ||||
Unrecognized stock-based compensation expense | $ 38,000 | ||||||||
Unrecognized stock-based compensation expense, period for recognition | 1 year | ||||||||
Restricted Stock | Equity Incentive 2016 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted during period | 51,015 | ||||||||
Common Stock [Member] | Equity Incentive 2016 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - $ / shares | Apr. 08, 2016 | Feb. 11, 2015 | Jan. 20, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested, balance (in shares) | 44,712 | 0 | |||
Granted (in shares) | 51,015 | 6,116 | 60,960 | 0 | 67,076 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Vested (in shares) | (22,364) | (22,364) | |||
Nonvested, balance (in shares) | 22,348 | 44,712 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Nonvested, weighted average price at date of issuance (in dollars per share) | $ 12.15 | $ 0 | |||
Granted (in dollars per share) | 0 | 12.15 | |||
Vested (in dollars per share) | 12.15 | 12.15 | |||
Nonvested, weighted average price at date of issuance (in dollars per share) | $ 12.15 | $ 12.15 | |||
Equity Incentive 2016 Plan [Member] | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested, balance (in shares) | 0 | ||||
Granted (in shares) | 51,015 | ||||
Vested (in shares) | (12,759) | ||||
Nonvested, balance (in shares) | 38,256 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Nonvested, weighted average price at date of issuance (in dollars per share) | $ 0 | ||||
Granted (in dollars per share) | 34.13 | ||||
Vested (in dollars per share) | 34.13 | ||||
Nonvested, weighted average price at date of issuance (in dollars per share) | $ 34.13 | $ 0 |
Stock-Based Compensation - Comm
Stock-Based Compensation - Common Stock Unit Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested, Balance (in shares) | 23,984 | 53,324 |
Vested (in shares) | (23,984) | (25,342) |
Forfeited (in shares) | 0 | (3,998) |
Nonvested, Balance (in shares) | 0 | 23,984 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested weighted average grant-date fair value (in dollars per share) | $ 1.37 | $ 1.37 |
Vested (in dollars per share) | 1.37 | 1.37 |
Forfeited (in dollars per share) | 0 | 1.37 |
Nonvested weighted average grant-date fair value (in dollars per share) | $ 0 | $ 1.37 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 0 | |
Foreign net operating loss carryforwards | $ 1.3 | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 19.8 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (3,106) | $ (7,820) | $ 4,502 |
Foreign | 67,183 | 55,613 | 16,134 |
Income before income taxes | $ 64,077 | $ 47,793 | $ 20,636 |
Income Taxes - Components of Be
Income Taxes - Components of Benefit From Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 7,151 | $ 12 | $ 104 |
State | (81) | 100 | 11 |
Foreign | 1,648 | 456 | 194 |
Total current taxes | 8,718 | 568 | 309 |
Deferred foreign taxes | 273 | (16) | (43) |
Income tax provision | $ 8,991 | $ 552 | $ 266 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Entity Location [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 67,183 | $ 55,613 | $ 16,134 |
Income tax at federal statutory rate | 22,427 | 16,250 | 7,016 |
Effect of permanent differences | 12,496 | 370 | 9 |
Change in valuation allowance | (3,877) | 2,017 | (2,070) |
Foreign rate differential | (21,713) | (18,099) | (5,240) |
Other reconciling items | (342) | 14 | 551 |
Income tax provision | 8,991 | 552 | 266 |
CAYMAN ISLANDS | |||
Entity Location [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 58,169 | 50,993 | 16,267 |
statutorytaxrate | 0.00% | ||
Hong Kong | |||
Entity Location [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 3,992 | 2,645 | 1,129 |
statutorytaxrate | 16.50% | ||
China | |||
Entity Location [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 3,855 | $ 1,493 | $ 153 |
statutorytaxrate | 25.00% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating losses | $ 235 | $ 3,197 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 623 | 0 |
Accrued expenses | 3,174 | 3,367 |
Tax credits | 0 | 418 |
Other | 0 | 32 |
Total deferred tax assets | 4,032 | 7,014 |
Valuation allowance | (235) | (4,112) |
Deferred tax assets, net | 3,797 | 2,902 |
Deferred tax liabilities: | ||
Foreign earnings | (3,650) | (2,789) |
Other | (415) | (173) |
Total deferred tax liabilities | (4,065) | (2,962) |
Total deferred tax liabilities | $ (268) | $ (60) |
Income Taxes Income Taxes - For
Income Taxes Income Taxes - Foreign Rate Differentials (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Foreign Rate Differential [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 67,183 | $ 55,613 | $ 16,134 |
CAYMAN ISLANDS | |||
Income Tax Foreign Rate Differential [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 58,169 | 50,993 | 16,267 |
statutorytaxrate | 0.00% | ||
Hong Kong | |||
Income Tax Foreign Rate Differential [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 3,992 | 2,645 | 1,129 |
statutorytaxrate | 16.50% | ||
China | |||
Income Tax Foreign Rate Differential [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 3,855 | $ 1,493 | $ 153 |
statutorytaxrate | 25.00% |
Supplemental Cash Flow Inform43
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid during the year for: | |||
Income taxes, net of refunds | $ 8,791 | $ 707 | $ 60 |
Interest | 9 | 0 | 1 |
Non-cash financing activity: | |||
Conversion of preferred stock | 0 | 0 | 111 |
Stock Issued | $ 1,741 | $ 666 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | Oct. 30, 2015USD ($)shares | Oct. 28, 2015USD ($) | Aug. 04, 2015USD ($)shares | Jul. 31, 2015USD ($) | May 13, 2015USD ($)shares | May 07, 2015USD ($) | Apr. 29, 2015 | Feb. 19, 2015USD ($) | Jan. 22, 2015shares | Nov. 14, 2014USD ($)shares | Apr. 30, 2015shares | Dec. 17, 2014USD ($)shares | Feb. 28, 2013 | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares |
Related Party Transaction [Line Items] | |||||||||||||||||
Royalty rate | 2.50% | ||||||||||||||||
Termination notice, number of days | 120 days | ||||||||||||||||
Repurchase of common stock | $ 5,000,000 | $ 1,400,000 | $ 5,000,000 | $ 1,500,000 | $ 5,000,000 | $ 1,500,000 | $ 4,500,000 | $ 23,704,000 | $ 16,071,000 | $ 4,661,000 | |||||||
Repurchase of common stock (in shares) | shares | 106,264 | 162,442 | 186,519 | 88,097 | 359,840 | 903,031 | 1,407,855 | ||||||||||
George Broady | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Treasury stock acquired rate | 0.4066 | 0.4085 | 0.4286 | ||||||||||||||
Repurchase of common stock | $ 1,100,000 | ||||||||||||||||
Repurchase of common stock (in shares) | shares | 91,817 | ||||||||||||||||
Shares repurchased per trading day | shares | 5,000 | ||||||||||||||||
Director | George Broady | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Repurchase of common stock | $ 1,500,000 | ||||||||||||||||
Repurchase of common stock (in shares) | shares | 119,947 | ||||||||||||||||
Soothe | Broady Health Sciences | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Royalty rate | 2.50% | ||||||||||||||||
Royalty expense | $ 11,700 | $ 3,400 | 7,000 | $ 6,400 | |||||||||||||
Termination notice, number of days | 120 days | ||||||||||||||||
ReStore [Member] | Broady Health Sciences | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Royalty expense | $ 475,000 | $ 555,000 | $ 144,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum compensation percentage | 90.00% | ||
Age requirement for 401 K contributions | 21 years | ||
Employer matching contribution, percent of employees' gross pay | 4.50% | ||
Employers matching contribution, immediate vesting percentage | 100.00% | ||
Defined contribution plan, cost recognized | $ 134,000 | $ 115,000 | $ 60,000 |
Segment Information - Net Sales
Segment Information - Net Sales by Market (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 287,728 | $ 264,860 | $ 124,590 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,100 | 3,246 | 1,438 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,809 | 2,746 | 1,374 |
Hong Kong | |||
Segment Reporting Information [Line Items] | |||
Net sales | 263,482 | 245,737 | 111,028 |
China | |||
Segment Reporting Information [Line Items] | |||
Net sales | 9,086 | 4,425 | 1,538 |
Taiwan | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,213 | 5,965 | 4,628 |
South Korea | |||
Segment Reporting Information [Line Items] | |||
Net sales | 691 | 1,129 | 1,009 |
Commonwealth of Independent States (Russia, Kazakhstan and Ukraine) | |||
Segment Reporting Information [Line Items] | |||
Net sales | 858 | 1,139 | 3,113 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,234 | 382 | 373 |
Other foreign countries | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 255 | $ 91 | $ 89 |
Segment Information - The Compa
Segment Information - The Company's Net Sales by Product and Service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales by product and service: | |||
Product sales | $ 269,731 | $ 253,041 | $ 118,843 |
Enrollment package revenue, freight and other | 25,616 | 17,623 | 7,927 |
Less: sales returns | (7,619) | (5,804) | (2,180) |
Total net sales | $ 287,728 | $ 264,860 | $ 124,590 |
Segment Information - Long Live
Segment Information - Long Lived Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,388 | $ 894 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 763 | 283 |
Hong Kong | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 140 | 204 |
China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 199 | 252 |
Other foreign countries | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 286 | $ 155 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jan. 24, 2017 | Nov. 25, 2016 |
Subsequent Event [Line Items] | ||
CommonStockSpecialDividendsPerShareDeclared | $ 0.35 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Common stock, dividends, per share declared | $ 0.09 | |
CommonStockSpecialDividendsPerShareDeclared | $ 0.35 | |
Restricted Stock [Member] | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Shares granted during period | 56,260 |