Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | UFP TECHNOLOGIES INC | |
Entity Central Index Key | 0000914156 | |
Trading Symbol | ufpt | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 7,437,136 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,390 | $ 3,238 |
Receivables, less allowance for doubtful accounts of $533 at September 30, 2019 and $564 at December 31, 2018 | 28,796 | 28,321 |
Inventories | 19,219 | 19,576 |
Prepaid expenses | 2,659 | 2,206 |
Refundable income taxes | 2,036 | 2,285 |
Total current assets | 64,100 | 55,626 |
Property, plant and equipment | 115,208 | 111,779 |
Less accumulated depreciation and amortization | (58,128) | (54,112) |
Net property, plant and equipment | 57,080 | 57,667 |
Goodwill | 51,838 | 51,838 |
Intangible assets, net | 21,289 | 22,232 |
Non-qualified deferred compensation plan | 2,615 | 2,034 |
Operating lease right of use assets | 3,276 | 0 |
Other assets | 140 | 201 |
Total assets | 200,338 | 189,598 |
Current liabilities: | ||
Accounts payable | 6,825 | 6,836 |
Accrued expenses | 8,326 | 8,458 |
Deferred revenue | 2,532 | 2,507 |
Operating lease liabilities, current | 821 | 0 |
Current portion of long-term debt | 2,857 | 2,857 |
Total current liabilities | 21,361 | 20,658 |
Long-term debt, excluding current portion | 12,143 | 22,286 |
Deferred income taxes | 5,381 | 4,129 |
Non-qualified deferred compensation plan | 2,643 | 2,044 |
Operating lease liabilities, noncurrent | 2,511 | 0 |
Other liabilities | 410 | 24 |
Total liabilities | 44,449 | 49,141 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value, 1,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value, 20,000,000 shares authorized; 7,466,695 and 7,437,136 shares issued and outstanding, respectively at September 30, 2019;7,415,002 and 7,385,443 shares issued and outstanding, respectively at December 31, 2018 | 74 | 74 |
Additional paid-in capital | 30,627 | 29,168 |
Retained earnings | 125,775 | 111,802 |
Treasury stock at cost, 29,559 shares at September 30, 2019 and December 31, 2018 | (587) | (587) |
Total stockholders’ equity | 155,889 | 140,457 |
Total liabilities and stockholders' equity | $ 200,338 | $ 189,598 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance of doubtful accounts | $ 533 | $ 564 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,466,695 | 7,415,002 |
Common stock, shares outstanding (in shares) | 7,437,136 | 7,385,443 |
Treasury stock, shares (in shares) | 29,559 | 29,559 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 49,394 | $ 47,808 | $ 148,120 | $ 139,758 |
Cost of sales | 36,073 | 35,377 | 107,932 | 104,156 |
Gross profit | 13,321 | 12,431 | 40,188 | 35,602 |
Selling, general & administrative expenses | 7,183 | 6,541 | 22,226 | 20,550 |
Acquisition-related costs | 0 | 1,089 | ||
Material overcharge settlement | (104) | |||
Loss (Gain) on sale of fixed assets | 5 | (51) | ||
Operating income | 6,138 | 5,885 | 17,962 | 14,118 |
Interest income | 0 | (12) | (44) | |
Interest expense | 165 | 355 | 590 | 1,032 |
Other expense (income) | 24 | (85) | 461 | (137) |
Income before income tax expense | 5,949 | 5,627 | 16,911 | 13,267 |
Income tax expense | 308 | 1,493 | 2,938 | 3,366 |
Net income | $ 5,641 | $ 4,134 | $ 13,973 | $ 9,901 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.76 | $ 0.56 | $ 1.88 | $ 1.35 |
Diluted (in dollars per share) | $ 0.75 | $ 0.56 | $ 1.87 | $ 1.34 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 7,432 | 7,366 | 7,419 | 7,338 |
Diluted (in shares) | 7,493 | 7,435 | 7,476 | 7,406 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 7,280 | 30 | |||
Balance at Dec. 31, 2017 | $ 73 | $ 26,664 | $ 97,562 | $ (587) | $ 123,712 |
Share-based compensation (in shares) | 16 | ||||
Share-based compensation | 237 | 237 | |||
Exercise of stock options net of shares presented for exercise (in shares) | 30 | ||||
Exercise of stock options net of shares presented for exercise | 367 | 367 | |||
Net share settlement of restricted stock units and stock option tax withholding (in shares) | (5) | ||||
Net share settlement of restricted stock units and stock option tax withholding | (144) | (144) | |||
Net income | 1,777 | 1,777 | |||
Excess tax benefits on share-based compensation - adjustment | 167 | 167 | |||
Adoption of ASC 606 | (95) | (95) | |||
Balance (in shares) at Mar. 31, 2018 | 7,321 | 30 | |||
Balance at Mar. 31, 2018 | $ 73 | 27,291 | 99,244 | $ (587) | 126,021 |
Balance (in shares) at Dec. 31, 2017 | 7,280 | 30 | |||
Balance at Dec. 31, 2017 | $ 73 | 26,664 | 97,562 | $ (587) | 123,712 |
Net income | 9,901 | ||||
Balance (in shares) at Sep. 30, 2018 | 7,373 | 30 | |||
Balance at Sep. 30, 2018 | $ 74 | 28,918 | 107,392 | $ (587) | 135,797 |
Balance (in shares) at Mar. 31, 2018 | 7,321 | 30 | |||
Balance at Mar. 31, 2018 | $ 73 | 27,291 | 99,244 | $ (587) | 126,021 |
Share-based compensation (in shares) | 3 | ||||
Share-based compensation | $ 1 | 453 | 454 | ||
Exercise of stock options net of shares presented for exercise (in shares) | 35 | ||||
Exercise of stock options net of shares presented for exercise | 597 | 597 | |||
Net income | 3,990 | 3,990 | |||
Adoption of ASC 606 | 24 | 24 | |||
Balance (in shares) at Jun. 30, 2018 | 7,359 | 30 | |||
Balance at Jun. 30, 2018 | $ 74 | 28,341 | 103,258 | $ (587) | 131,086 |
Share-based compensation | 272 | 272 | |||
Exercise of stock options net of shares presented for exercise (in shares) | 14 | ||||
Exercise of stock options net of shares presented for exercise | 305 | 305 | |||
Net income | 4,134 | 4,134 | |||
Balance (in shares) at Sep. 30, 2018 | 7,373 | 30 | |||
Balance at Sep. 30, 2018 | $ 74 | 28,918 | 107,392 | $ (587) | 135,797 |
Balance (in shares) at Dec. 31, 2018 | 7,385 | 30 | |||
Balance at Dec. 31, 2018 | $ 74 | 29,168 | 111,802 | $ (587) | 140,457 |
Share-based compensation (in shares) | 20 | ||||
Share-based compensation | 294 | 294 | |||
Exercise of stock options net of shares presented for exercise (in shares) | 17 | ||||
Exercise of stock options net of shares presented for exercise | 285 | 285 | |||
Net share settlement of restricted stock units and stock option tax withholding (in shares) | (8) | ||||
Net share settlement of restricted stock units and stock option tax withholding | (271) | (271) | |||
Net income | 3,734 | 3,734 | |||
Balance (in shares) at Mar. 31, 2019 | 7,414 | 30 | |||
Balance at Mar. 31, 2019 | $ 74 | 29,476 | 115,536 | $ (587) | 144,499 |
Balance (in shares) at Dec. 31, 2018 | 7,385 | 30 | |||
Balance at Dec. 31, 2018 | $ 74 | 29,168 | 111,802 | $ (587) | 140,457 |
Net income | 13,973 | ||||
Balance (in shares) at Sep. 30, 2019 | 7,437 | 30 | |||
Balance at Sep. 30, 2019 | $ 74 | 30,627 | 125,775 | $ (587) | 155,889 |
Balance (in shares) at Mar. 31, 2019 | 7,414 | 30 | |||
Balance at Mar. 31, 2019 | $ 74 | 29,476 | 115,536 | $ (587) | 144,499 |
Share-based compensation | 402 | 402 | |||
Exercise of stock options net of shares presented for exercise (in shares) | 14 | ||||
Exercise of stock options net of shares presented for exercise | 155 | 155 | |||
Net income | 4,598 | 4,598 | |||
Balance (in shares) at Jun. 30, 2019 | 7,428 | 30 | |||
Balance at Jun. 30, 2019 | $ 74 | 30,033 | 120,134 | $ (587) | 149,654 |
Share-based compensation | 473 | 473 | |||
Exercise of stock options net of shares presented for exercise (in shares) | 9 | ||||
Exercise of stock options net of shares presented for exercise | 121 | 121 | |||
Net income | 5,641 | 5,641 | |||
Balance (in shares) at Sep. 30, 2019 | 7,437 | 30 | |||
Balance at Sep. 30, 2019 | $ 74 | $ 30,627 | $ 125,775 | $ (587) | $ 155,889 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 13,973 | $ 9,901 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,120 | 5,820 |
Gain on sale of fixed assets | (51) | |
Share-based compensation | 1,169 | 963 |
Deferred income taxes | 1,252 | 1,007 |
Changes in operating assets and liabilities: | ||
Receivables, net | (475) | (4,379) |
Inventories | 357 | (2,621) |
Prepaid expenses | (453) | (262) |
Refundable income taxes | 249 | 51 |
Other assets | 35 | (439) |
Accounts payable | (220) | 2,249 |
Accrued expenses | 689 | 157 |
Deferred revenue | 25 | 872 |
Non-qualified deferred compensation plan and other liabilities | (335) | 281 |
Net cash provided by operating activities | 22,386 | 13,549 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (4,381) | (4,521) |
Acquisition of Dielectrics, net of cash acquired | (76,978) | |
Proceeds from sale of fixed assets | 77 | |
Net cash used in investing activities | (4,381) | (81,422) |
Cash flows from financing activities: | ||
Proceeds from advances on revolving line of credit | 36,000 | |
Payments on revolving line of credit | (8,000) | (20,000) |
Proceeds from the issuance of long-term debt | 20,000 | |
Principal repayments of long-term debt | (2,143) | (2,143) |
Proceeds from exercise of stock options, net of shares presented for exercise | 561 | 1,270 |
Payment of statutory withholdings for stock options exercised and restricted stock units vested | (271) | (144) |
Net cash (used in) provided by financing activities | (9,853) | 34,983 |
Net increase (decrease) in cash and cash equivalents | 8,152 | (32,890) |
Cash and cash equivalents at beginning of period | 3,238 | 37,978 |
Cash and cash equivalents at end of period | $ 11,390 | $ 5,088 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ( 1 Basis of Presentation The interim condensed consolidated financial statements of UFP Technologies, Inc. (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 10 not December 31, 2018, 2018 10 The condensed consolidated balance sheets as of September 30, 2019 December 31, 2018, three nine September 30, 2019 2018, three nine September 30, 2019 2018, nine September 30, 2019 2018 December 31, 2018 not The preparation of financial statements in conformity 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for the three nine September 30, 2019 not December 31, 2019. Recent Accounting Pronouncements In February 2016, No. 2016 02, Leases (Accounting Standards Codification (ASC) 842 January 2018 No. 2018 01 July 2018 2018 10 2018 11. 842 January 1, 2019. 7 In January 2017, No. 2017 04, Intangibles—Goodwill and Other (ASC 350 2 not December 15, 2019. January 1, 2017. not Revisions Certain revisions have been made to the Condensed Consolidated Statements of Cash Flows for the nine September 30, 2018, $574 no |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | ( 2 Revenue Recognition The Company recognizes revenue when a customer obtains control of a promised good or service. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for promised goods or services. The Company recognizes revenue in accordance with the core principles of ASC 606 1 2 3 4 5 not not Disaggregated Revenue The following table presents the Company’s revenue disaggregated by the major types of goods and services sold to the Company’s customers (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Net sales of: 2019 2018 2019 2018 Products $ 47,400 $ 46,423 $ 144,386 $ 135,670 Tooling and machinery 952 537 1,920 2,135 Engineering services 1,042 848 1,814 1,953 Total net sales $ 49,394 $ 47,808 $ 148,120 $ 139,758 Contract balances Timing of revenue recognition may The following table presents opening and closing balances of contract liabilities for the nine September 30, 2019 2018 Contract Liabilities Nine Months Ended 2019 2018 Deferred revenue - beginning of period $ 2,507 $ 871 Acquired in Dielectrics business combination - 2,175 Increases due to consideration received from customers 2,256 3,088 Revenue recognized (2,231 ) (2,216 ) Deferred revenue - end of period $ 2,532 $ 3,918 Revenue recognized during the nine September 30, 2019 2018 $1.3 $527 When invoicing occurs after revenue recognition, the Company has unbilled receivables (contract assets) included within “receivables” on the condensed consolidated balance sheet. The following table presents opening and closing balances of contract assets for the nine September 30, 2019 2018 Contract Assets Nine Months Ended 2019 2018 Unbilled Receivables - beginning of period $ 65 $ - Increases due to revenue recognized - not invoiced to customers 660 236 Decreases due to customer invoicing (712 ) (188 ) Unbilled Receivables - end of period $ 13 $ 48 |
Note 3 - Supplemental Cash Flow
Note 3 - Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | ( 3 Supplemental Cash Flow Information Nine Months Ended September 30, 2019 2018 (in thousands) Cash paid for: Interest $ 579 $ 853 Income taxes, net of refunds 1,593 2,308 Non-cash investing and financing activities: Capital additions accrued but not yet paid $ 209 $ 216 Recognition of lease asset and liability (ASC 842) $ 3,831 $ - |
Note 4 - Fair Value of Financia
Note 4 - Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | ( 4 Fair Value of Financial Instruments Financial instruments recorded at fair value in the consolidated balance sheets, or disclosed at fair value in the footnotes, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels defined by ASC 820, Fair Value Measurements and Disclosures Level 1 Valued based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Valued based on either directly or indirectly observable prices for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 Valued based on management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The following table presents the fair value and hierarchy levels, for financial assets that are measured at fair value on a recurring basis (in thousands): Level 2 September 30, December 31, (Liabilities) Assets: Derivative financial instruments $ (397 ) $ 64 Derivative financial instruments consist of an interest rate swap for which fair value is determined through the use of a pricing model that utilizes verifiable inputs such as market interest rates that are observable at commonly quoted intervals for the full term of the swap agreement. The Company has financial instruments, such as accounts receivable, accounts payable, and accrued expenses, that are stated at carrying amounts that approximate fair value because of the short maturity of those instruments. The carrying amount of the Company’s long-term debt approximates fair value as the interest rate on the debt approximates the estimated borrowing rate currently available to the Company. |
Note 5 - Share-based Compensati
Note 5 - Share-based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | ( 5 Share-Based Compensation Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The Company issues share-based awards through several plans that are described in detail in the notes to the consolidated financial statements for the year ended December 31, 2018. Three Months Ended Nine Months Ended September 30, September 30, Share-based compensation related to: 2019 2018 2019 2018 Common stock grants $ 100 $ 100 $ 300 $ 405 Stock option grants 60 9 91 143 Restricted Stock Unit Awards ("RSUs") 313 163 778 415 Total share-based compensation $ 473 $ 272 $ 1,169 $ 963 The total income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements was approximately $176 $289 three September 30, 2019 2018, $524 $649 nine September 30, 2019 2018, The following is a summary of stock option activity under all plans for the nine September 30, 2019: Shares Under Options Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 134,043 $ 20.46 Granted 16,536 38.61 Exercised (39,965 ) 14.06 Outstanding at September 30, 2019 110,614 $ 25.49 5.83 $ 1,450 Exercisable at September 30, 2019 86,578 $ 22.71 5.32 $ 1,376 Vested and expected to vest at September 30, 2019 110,614 $ 25.49 5.83 $ 1,450 On June 5, 2019, 16,536 $38.61. Expected volatility 28.9 % Expected dividends None Risk-free interest rate 2.3 % Exercise price $ 38.61 Expected term (years) 6.0 Weighted-average grant date fair value $ 12.70 The stock volatility for each grant is determined based on a review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term, and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. The expected term is estimated based on historical option exercise activity. During the nine September 30, 2019 2018, $867 $1.2 $562 $1.3 No September 30, 2019 2018. On February 19, 2019, the award of $400 2003 December 2019. The following table summarizes information about RSU activity during the nine September 30, 2019: Restricted Stock Units Weighted Average Outstanding at December 31, 2018 72,176 $ 23.60 Awarded 67,540 33.53 Shares vested (19,860 ) 23.53 Outstanding at September 30, 2019 119,856 $ 28.25 At the Company’s discretion, RSU holders are given the option to net-share settle to cover the required minimum withholding tax and the remaining amount is converted into the equivalent number of common shares. During the nine September 30, 2019 2018, 8,132 5,238 $33.35 $27.60, As of September 30, 2019, $2.8 3.5 |
Note 6 - Inventories
Note 6 - Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | ( 6 Inventories Inventories are stated at the lower of cost (determined using the first first September 30, December 31, 2018 Raw materials $ 9,880 $ 11,727 Work in process 3,162 2,521 Finished goods 6,177 5,328 Total inventory $ 19,219 $ 19,576 |
Note 7 - Leases
Note 7 - Leases | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | ( 7 Leases The Company adopted ASC 842 Leases 842” January 1, 2019, January 1, 2019 840, no 842 $4.0 $4.1 January 1, 2019. not not The Company has operating leases for offices, manufacturing plants, vehicles and certain office and manufacturing equipment. Leases with an initial term of 12 not not ROU assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. ROU assets will also be adjusted for any deferred or accrued rent. As the Company's operating leases do not Nine Months Ended September 30, 2019 ($ in thousands) Lease cost: Operating $ 918 Variable 167 Short-term 20 Total lease cost $ 1,105 Cash paid for amounts included in measurement of lease liabilities: Operating $ 905 Weighted-average remaining lease term (years): Operating 2.92 Weighted-average discount rate: Operating 4.45 % The aggregate future lease payments for operating leases as of September 30, 2019 Remainder of 2019 299 2020 1,149 2021 1,119 2022 957 2023 36 Thereafter - Total lease payments 3,560 Less: Interest (228 ) Present value of lease liabilities $ 3,332 The aggregate future lease payments for operating leases as of December 31, 2018 2019 $ 1,051 2020 1,070 2021 1,063 2022 975 2023 36 Total $ 4,195 |
Note 8 - Income Per Share
Note 8 - Income Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 8 Income Per Share Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalent shares outstanding during each period. The weighted average number of shares used to compute basic and diluted net income per share consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Basic weighted average common shares outstanding 7,432 7,366 7,419 7,338 Weighted average common equivalent shares due to stock, stock options and RSUs 61 69 57 68 Diluted weighted average common shares outstanding 7,493 7,435 7,476 7,406 The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are not three nine September 30, 2019, 16,536 three nine September 30, 2018, zero 10,344, |
Note 9 - Segment Reporting
Note 9 - Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 9 Segment Reporting The Company consists of a single Revenues from customers outside of the United States are not No 10% three nine September 30, 2019 2018. The Company’s products are primarily sold to customers within the Medical, Automotive, Consumer, Aerospace and Defense, Industrial, and Electronics markets. Net sales by market for the three nine September 30, 2019 2018 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Market Net Sales % Net Sales % Net Sales % Net Sales % Medical $ 32,175 65.1 % $ 27,623 57.8 % $ 94,164 63.6 % $ 80,988 57.9 % Automotive 4,946 10.0 % 4,572 9.6 % 15,634 10.6 % 14,993 10.7 % Consumer 4,602 9.3 % 6,589 13.8 % 13,693 9.2 % 17,826 12.8 % Aerospace & Defense 3,246 6.6 % 3,819 8.0 % 10,893 7.4 % 9,386 6.7 % Industrial 2,421 4.9 % 2,405 5.0 % 7,232 4.9 % 7,924 5.7 % Electronics 2,004 4.1 % 2,800 5.9 % 6,504 4.4 % 8,641 6.2 % Net Sales $ 49,394 100.0 % $ 47,808 100.0 % $ 148,120 100.0 % $ 139,758 100.0 % Certain amounts for the three nine September 30, 2018 |
Note 10 - Other Intangible Asse
Note 10 - Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | ( 10 Other Intangible Assets The carrying values of the Company’s definite lived intangible assets as of September 30, 2019 Tradename & Brand Non- Customer Total Estimated useful life 10 years 5 years 20 years Gross amount $ 367 $ 462 $ 22,555 $ 23,384 Accumulated amortization (61 ) (154 ) (1,880 ) (2,095 ) Net balance $ 306 $ 308 $ 20,675 $ 21,289 Amortization expense related to intangible assets was approximately $314 three September 30, 2019 2018, $943 $838 nine September 30, 2019 2018, September 30, 2019 Remainder of 2019 $ 314 2020 1,257 2021 1,257 2022 1,257 2023 1,172 Thereafter 16,032 Total $ 21,289 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 11 Income Taxes The income tax expense included in the accompanying unaudited condensed consolidated statements of income principally relates to the Company’s proportionate share of the pre-tax income of its wholly-owned subsidiaries. The determination of income tax expense for interim reporting purposes is based upon the estimated effective tax rate for the year, adjusted for the impact of any discrete items which are accounted for in the period in which they occur. The Company recorded tax expense of approximately 5.2% 26.5% three September 30, 2019 2018, 17.4% 25.4% nine September 30, 2019 2018, three nine September 30, 2019, 2018 |
Note 12 - Indebtedness
Note 12 - Indebtedness | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 12 Indebtedness On February 1, 2018, $70 The credit facilities under the Amended and Restated Credit Agreement (the “Amended and Restated Credit Facilities”) consist of a $20 may $50 February 1, 2023. may The Amended and Restated Credit Agreement calls for interest of LIBOR plus a margin that ranges from 1.0% 1.5% 0.25% zero September 30, 2019, $0.7 September 30, 2019, 3.0%, Long-term debt consists of the following (in thousands): September 30, 2019 December 31, 2018 Revolving credit facility $ - $ 8,000 Term loan 15,000 17,143 Total long-term debt 15,000 25,143 Current portion (2,857 ) (2,857 ) Long-term debt, excluding current portion $ 12,143 $ 22,286 Derivative Financial Instruments The Company uses interest-rate-related derivative instruments to manage its exposure related to changes in interest rates on its variable-rate debt instruments. The Company does not not not may may $20 5 three 2.7% $15.0 September 30, 2019. September 30, 2019 397 December 31, 2018 $64 $24 $461 three nine September 30, 2019, 85 137 2018. |
Note 13 - Acquisition
Note 13 - Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | ( 13 Acquisition On February 1, 2018 100% $80 $250 The following table summarizes the allocation of consideration paid to the acquisition date fair value of the assets acquired and liabilities assumed based on management’s estimates of fair value (in thousands): Consideration paid: Cash paid at closing $ 80,000 Working capital adjustment 250 Cash from Dielectrics (3,272 ) Total consideration $ 76,978 Purchase price allocation: Accounts receivable $ 4,384 Inventory 4,418 Other current assets 122 Property, plant and equipment 4,600 Customer list 22,555 Non-compete 462 Trade name and brand 367 Goodwill 44,516 Total identifiable assets $ 81,424 Accounts payable (1,325 ) Accrued expenses (946 ) Deferred revenue (2,175 ) Net assets acquired $ 76,978 Acquisition costs associated with the transaction were approximately $1.1 nine September 30, 2018. The following table contains an unaudited pro forma condensed consolidated statement of operations for the three nine September 30, 2018, Three Months Ended Nine Months Ended 2018 2018 (Unaudited) (Unaudited) Sales $ 47,808 $ 142,813 Operating income $ 5,885 $ 13,970 Net income $ 4,134 $ 9,700 Earnings per share: Basic $ 0.56 $ 1.32 Diluted $ 0.56 $ 1.31 The above unaudited pro forma information is presented for illustrative purposes only and may not may |
Note 14 - Subsequent Event
Note 14 - Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | ( 14 Subsequent Event Subsequent to September 30, 2019, $8.0 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In February 2016, No. 2016 02, Leases (Accounting Standards Codification (ASC) 842 January 2018 No. 2018 01 July 2018 2018 10 2018 11. 842 January 1, 2019. 7 In January 2017, No. 2017 04, Intangibles—Goodwill and Other (ASC 350 2 not December 15, 2019. January 1, 2017. not |
Revisions Policy [Policy Text Block] | Revisions Certain revisions have been made to the Condensed Consolidated Statements of Cash Flows for the nine September 30, 2018, $574 no |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, Net sales of: 2019 2018 2019 2018 Products $ 47,400 $ 46,423 $ 144,386 $ 135,670 Tooling and machinery 952 537 1,920 2,135 Engineering services 1,042 848 1,814 1,953 Total net sales $ 49,394 $ 47,808 $ 148,120 $ 139,758 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Liabilities Nine Months Ended 2019 2018 Deferred revenue - beginning of period $ 2,507 $ 871 Acquired in Dielectrics business combination - 2,175 Increases due to consideration received from customers 2,256 3,088 Revenue recognized (2,231 ) (2,216 ) Deferred revenue - end of period $ 2,532 $ 3,918 Contract Assets Nine Months Ended 2019 2018 Unbilled Receivables - beginning of period $ 65 $ - Increases due to revenue recognized - not invoiced to customers 660 236 Decreases due to customer invoicing (712 ) (188 ) Unbilled Receivables - end of period $ 13 $ 48 |
Note 3 - Supplemental Cash Fl_2
Note 3 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended September 30, 2019 2018 (in thousands) Cash paid for: Interest $ 579 $ 853 Income taxes, net of refunds 1,593 2,308 Non-cash investing and financing activities: Capital additions accrued but not yet paid $ 209 $ 216 Recognition of lease asset and liability (ASC 842) $ 3,831 $ - |
Note 4 - Fair Value of Financ_2
Note 4 - Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Level 2 September 30, December 31, (Liabilities) Assets: Derivative financial instruments $ (397 ) $ 64 |
Note 5 - Share-based Compensa_2
Note 5 - Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Employee Service Share Based Compensation Allocation of Recognized Period Costs, By Award Type [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, Share-based compensation related to: 2019 2018 2019 2018 Common stock grants $ 100 $ 100 $ 300 $ 405 Stock option grants 60 9 91 143 Restricted Stock Unit Awards ("RSUs") 313 163 778 415 Total share-based compensation $ 473 $ 272 $ 1,169 $ 963 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Under Options Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 134,043 $ 20.46 Granted 16,536 38.61 Exercised (39,965 ) 14.06 Outstanding at September 30, 2019 110,614 $ 25.49 5.83 $ 1,450 Exercisable at September 30, 2019 86,578 $ 22.71 5.32 $ 1,376 Vested and expected to vest at September 30, 2019 110,614 $ 25.49 5.83 $ 1,450 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Expected volatility 28.9 % Expected dividends None Risk-free interest rate 2.3 % Exercise price $ 38.61 Expected term (years) 6.0 Weighted-average grant date fair value $ 12.70 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Restricted Stock Units Weighted Average Outstanding at December 31, 2018 72,176 $ 23.60 Awarded 67,540 33.53 Shares vested (19,860 ) 23.53 Outstanding at September 30, 2019 119,856 $ 28.25 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2018 Raw materials $ 9,880 $ 11,727 Work in process 3,162 2,521 Finished goods 6,177 5,328 Total inventory $ 19,219 $ 19,576 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Nine Months Ended September 30, 2019 ($ in thousands) Lease cost: Operating $ 918 Variable 167 Short-term 20 Total lease cost $ 1,105 Cash paid for amounts included in measurement of lease liabilities: Operating $ 905 Weighted-average remaining lease term (years): Operating 2.92 Weighted-average discount rate: Operating 4.45 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Remainder of 2019 299 2020 1,149 2021 1,119 2022 957 2023 36 Thereafter - Total lease payments 3,560 Less: Interest (228 ) Present value of lease liabilities $ 3,332 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2019 $ 1,051 2020 1,070 2021 1,063 2022 975 2023 36 Total $ 4,195 |
Note 8 - Income Per Share (Tabl
Note 8 - Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Basic weighted average common shares outstanding 7,432 7,366 7,419 7,338 Weighted average common equivalent shares due to stock, stock options and RSUs 61 69 57 68 Diluted weighted average common shares outstanding 7,493 7,435 7,476 7,406 |
Note 9 - Segment Reporting (Tab
Note 9 - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Market Net Sales % Net Sales % Net Sales % Net Sales % Medical $ 32,175 65.1 % $ 27,623 57.8 % $ 94,164 63.6 % $ 80,988 57.9 % Automotive 4,946 10.0 % 4,572 9.6 % 15,634 10.6 % 14,993 10.7 % Consumer 4,602 9.3 % 6,589 13.8 % 13,693 9.2 % 17,826 12.8 % Aerospace & Defense 3,246 6.6 % 3,819 8.0 % 10,893 7.4 % 9,386 6.7 % Industrial 2,421 4.9 % 2,405 5.0 % 7,232 4.9 % 7,924 5.7 % Electronics 2,004 4.1 % 2,800 5.9 % 6,504 4.4 % 8,641 6.2 % Net Sales $ 49,394 100.0 % $ 47,808 100.0 % $ 148,120 100.0 % $ 139,758 100.0 % |
Note 10 - Other Intangible As_2
Note 10 - Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Tradename & Brand Non- Customer Total Estimated useful life 10 years 5 years 20 years Gross amount $ 367 $ 462 $ 22,555 $ 23,384 Accumulated amortization (61 ) (154 ) (1,880 ) (2,095 ) Net balance $ 306 $ 308 $ 20,675 $ 21,289 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of 2019 $ 314 2020 1,257 2021 1,257 2022 1,257 2023 1,172 Thereafter 16,032 Total $ 21,289 |
Note 12 - Indebtedness (Tables)
Note 12 - Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, 2019 December 31, 2018 Revolving credit facility $ - $ 8,000 Term loan 15,000 17,143 Total long-term debt 15,000 25,143 Current portion (2,857 ) (2,857 ) Long-term debt, excluding current portion $ 12,143 $ 22,286 |
Note 13 - Acquisition (Tables)
Note 13 - Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Consideration paid: Cash paid at closing $ 80,000 Working capital adjustment 250 Cash from Dielectrics (3,272 ) Total consideration $ 76,978 Purchase price allocation: Accounts receivable $ 4,384 Inventory 4,418 Other current assets 122 Property, plant and equipment 4,600 Customer list 22,555 Non-compete 462 Trade name and brand 367 Goodwill 44,516 Total identifiable assets $ 81,424 Accounts payable (1,325 ) Accrued expenses (946 ) Deferred revenue (2,175 ) Net assets acquired $ 76,978 |
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended Nine Months Ended 2018 2018 (Unaudited) (Unaudited) Sales $ 47,808 $ 142,813 Operating income $ 5,885 $ 13,970 Net income $ 4,134 $ 9,700 Earnings per share: Basic $ 0.56 $ 1.32 Diluted $ 0.56 $ 1.31 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Increase (Decrease) in Contract with Customer, Liability | $ 25 | $ 872 |
Increase (Decrease) in Accrued Liabilities, Total | $ 689 | 157 |
Restatement Adjustment [Member] | ||
Increase (Decrease) in Contract with Customer, Liability | (574) | |
Increase (Decrease) in Accrued Liabilities, Total | $ (574) |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Contract with Customer, Liability, Revenue Recognized | $ 2,231 | $ 2,216 |
Deferred Revenue [Member] | ||
Contract with Customer, Liability, Revenue Recognized | $ 1,300 | $ 527 |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Revenue Disaggregated by the Major Types of Goods and Services Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 49,394 | $ 47,808 | $ 148,120 | $ 139,758 |
Product [Member] | ||||
Net sales | 47,400 | 46,423 | 144,386 | 135,670 |
Tooling and Machinery [Member] | ||||
Net sales | 952 | 537 | 1,920 | 2,135 |
Engineering and Development [Member] | ||||
Net sales | $ 1,042 | $ 848 | $ 1,814 | $ 1,953 |
Note 2 - Revenue Recognition _2
Note 2 - Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred revenue | $ 2,507 | $ 871 |
Acquired in Dielectrics business combination | 2,175 | |
Increases due to consideration received from customers | 2,256 | 3,088 |
Revenue recognized | (2,231) | (2,216) |
Deferred revenue | 2,532 | 3,918 |
Unbilled Receivables - beginning of period | 65 | |
Increases due to revenue recognized - not invoiced to customers | 660 | 236 |
Decreases due to customer invoicing | (712) | (188) |
Unbilled Receivables - end of period | $ 13 | $ 48 |
Note 3 - Supplemental Cash Fl_3
Note 3 - Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash paid for: | ||
Interest | $ 579 | $ 853 |
Income taxes, net of refunds | 1,593 | 2,308 |
Non-cash investing and financing activities: | ||
Capital additions accrued but not yet paid | 209 | 216 |
Recognition of lease asset and liability (ASC 842) | $ 3,831 |
Note 4 - Fair Value of Financ_3
Note 4 - Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
(Liabilities) Assets: | ||
Derivative financial instruments | $ (397) | $ 64 |
Note 5 - Share-based Compensa_3
Note 5 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 05, 2019 | Feb. 19, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 167 | |||||||||
Share Price | $ 38.61 | |||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total | $ 473 | $ 402 | $ 294 | $ 272 | $ 454 | $ 237 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 2,800 | $ 2,800 | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 182 days | |||||||||
The 2003 Incentive Plan [Member] | Chairman Chief Executive Officer and President [Member] | Common Stock [Member] | ||||||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total | $ 400 | |||||||||
Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | 16,536 | |||||||||
Share-based Payment Arrangement [Member] | ||||||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 176 | $ 289 | $ 524 | $ 649 | ||||||
Employee and Nonemployee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 867 | 1,200 | ||||||||
Proceeds from Stock Options Exercised | $ 562 | $ 1,300 | ||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 8,132 | 5,238 | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation Market Price | $ 33.35 | $ 27.60 |
Note 5 - Share-Based Compensa_4
Note 5 - Share-Based Compensation - Compensation Cost (Details) - Selling, General and Administrative Expenses [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allocated share based compensation | $ 473 | $ 272 | $ 1,169 | $ 963 |
Common Stock [Member] | ||||
Allocated share based compensation | 100 | 100 | 300 | 405 |
Employee and Nonemployee Stock Option [Member] | ||||
Allocated share based compensation | 60 | 9 | 91 | 143 |
Restricted Stock Units (RSUs) [Member] | ||||
Allocated share based compensation | $ 313 | $ 163 | $ 778 | $ 415 |
Note 5 - Share-Based Compensa_5
Note 5 - Share-Based Compensation - Summary of Stock Option Activity (Details) - Employee and Nonemployee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Outstanding, shares under options (in shares) | 134,043 |
Outstanding, weighted average exercise price (in dollars per share) | $ 20.46 |
Granted, shares under options (in shares) | 16,536 |
Granted, weighted average exercise price (in dollars per share) | $ 38.61 |
Exercised, shares under options (in shares) | (39,965) |
Exercised, weighted average exercise price (in dollars per share) | $ 14.06 |
Outstanding, shares under options (in shares) | 110,614 |
Outstanding, weighted average exercise price (in dollars per share) | $ 25.49 |
Outstanding, weighted average remaining contractual life (Year) | 5 years 302 days |
Outstanding, aggregate intrinsic value | $ 1,450 |
Exercisable, shares under options (in shares) | 86,578 |
Exercisable, weighted average exercise price (in dollars per share) | $ 22.71 |
Exercisable, weighted average remaining contractual life (Year) | 5 years 116 days |
Exercisable, aggregate intrinsic value | $ 1,376 |
Vested and expected to vest, shares under options (in shares) | 110,614 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ 25.49 |
Vested and expected to vest, weighted average remaining contractual life (Year) | 5 years 302 days |
Vested and expected to vest, aggregate intrinsic value | $ 1,450 |
Note 5 - Stock-Based Compensati
Note 5 - Stock-Based Compensation - Black-scholes Option Pricing Model (Details) | 9 Months Ended |
Sep. 30, 2019$ / shares | |
Expected volatility | 28.90% |
Expected dividends | 0.00% |
Risk-free interest rate | 2.30% |
Exercise price (in dollars per share) | $ 38.61 |
Expected term (years) (Year) | 6 years |
Weighted-average grant date fair value (in dollars per share) | $ 12.70 |
Note 5 - Share-Based Compensa_6
Note 5 - Share-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Outstanding, restricted stock units (in shares) | shares | 72,176 |
Outstanding, weighted average award date fair value (in dollars per share) | $ / shares | $ 23.60 |
Awarded, restricted stock units (in shares) | shares | 67,540 |
Awarded, weighted average award date fair value (in dollars per share) | $ / shares | $ 33.53 |
Shares vested, restricted stock units (in shares) | shares | (19,860) |
Shares vested, weighted average award date fair value (in dollars per share) | $ / shares | $ 23.53 |
Outstanding, restricted stock units (in shares) | shares | 119,856 |
Outstanding, weighted average award date fair value (in dollars per share) | $ / shares | $ 28.25 |
Note 6 - Inventories - Summary
Note 6 - Inventories - Summary of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Raw materials | $ 9,880 | $ 11,727 |
Work in process | 3,162 | 2,521 |
Finished goods | 6,177 | 5,328 |
Total inventory | $ 19,219 | $ 19,576 |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-Use Asset | $ 3,276 | $ 0 | |
Operating Lease, Liability, Total | $ 3,332 | ||
Finance Lease, Liability, Total | $ 0 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Right-of-Use Asset | 4,000 | ||
Operating Lease, Liability, Total | $ 4,100 |
Note 7 - Leases - Lease Cost (D
Note 7 - Leases - Lease Cost (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lease cost: | |
Operating | $ 918 |
Variable | 167 |
Short-term | 20 |
Total lease cost | 1,105 |
Operating, cash paid for amounts included in measurement of lease liabilities | $ 905 |
Operating, weighted average remaining lease term (Year) | 2 years 335 days |
Operating, weighted-average discount rate | 4.45% |
Note 7 - Leases - Aggregate Fut
Note 7 - Leases - Aggregate Future Lease Payments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Remainder of 2019 | $ 299 |
2020 | 1,149 |
2021 | 1,119 |
2022 | 957 |
2023 | 36 |
Thereafter | |
Total lease payments | 3,560 |
Less: Interest | (228) |
Present value of lease liabilities | $ 3,332 |
Note 7 - Leases - Future Minimu
Note 7 - Leases - Future Minimum Lease Payments For Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019 | $ 1,051 |
2020 | 1,070 |
2021 | 1,063 |
2022 | 975 |
2023 | 36 |
Total | $ 4,195 |
Note 8 - Income Per Share (Deta
Note 8 - Income Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 16,536 | 0 | 16,536 | 10,344 |
Note 8 - Income Per Share - Wei
Note 8 - Income Per Share - Weighted Average Number of Shares Used to Compute Net EPS (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic (in shares) | 7,432 | 7,366 | 7,419 | 7,338 |
Weighted average common equivalent shares due to stock, stock options and RSUs (in shares) | 61 | 69 | 57 | 68 |
Diluted weighted average common shares outstanding (in shares) | 7,493 | 7,435 | 7,476 | 7,406 |
Note 9 - Segment Reporting (Det
Note 9 - Segment Reporting (Details Textual) | 9 Months Ended |
Sep. 30, 2019 | |
Number of Reportable Segments | 1 |
Number of Operating Segments | 1 |
Note 9 - Segment Reporting - Ne
Note 9 - Segment Reporting - Net Sales by Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 49,394 | $ 47,808 | $ 148,120 | $ 139,758 |
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | 100.00% |
Medical [Member] | ||||
Net sales | $ 32,175 | $ 27,623 | $ 94,164 | $ 80,988 |
Percentage of concentration risk | 65.10% | 57.80% | 63.60% | 57.90% |
Automotive [Member] | ||||
Net sales | $ 4,946 | $ 4,572 | $ 15,634 | $ 14,993 |
Percentage of concentration risk | 10.00% | 9.60% | 10.60% | 10.70% |
Consumer [Member] | ||||
Net sales | $ 4,602 | $ 6,589 | $ 13,693 | $ 17,826 |
Percentage of concentration risk | 9.30% | 13.80% | 9.20% | 12.80% |
Aerospace & Defense [Member] | ||||
Net sales | $ 3,246 | $ 3,819 | $ 10,893 | $ 9,386 |
Percentage of concentration risk | 6.60% | 8.00% | 7.40% | 6.70% |
Industrial [Member] | ||||
Net sales | $ 2,421 | $ 2,405 | $ 7,232 | $ 7,924 |
Percentage of concentration risk | 4.90% | 5.00% | 4.90% | 5.70% |
Electronics [Member] | ||||
Net sales | $ 2,004 | $ 2,800 | $ 6,504 | $ 8,641 |
Percentage of concentration risk | 4.10% | 5.90% | 4.40% | 6.20% |
Note 10 - Other Intangible As_3
Note 10 - Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Amortization of Intangible Assets, Total | $ 314 | $ 314 | $ 943 | $ 838 |
Note 10 - Other Intangible As_4
Note 10 - Other Intangible Assets - Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Gross amount | $ 23,384 | |
Accumulated amortization | (2,095) | |
Net balance | 21,289 | $ 22,232 |
Trade Name and Brand [Member] | ||
Gross amount | 367 | |
Accumulated amortization | (61) | |
Net balance | 306 | |
Noncompete Agreements [Member] | ||
Gross amount | 462 | |
Accumulated amortization | (154) | |
Net balance | 308 | |
Customer Lists [Member] | ||
Gross amount | 22,555 | |
Accumulated amortization | (1,880) | |
Net balance | $ 20,675 |
Note 10 - Other Intangible As_5
Note 10 - Other Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Remainder of 2019 | $ 314 |
2020 | 1,257 |
2021 | 1,257 |
2022 | 1,257 |
2023 | 1,172 |
Thereafter | 16,032 |
Total | $ 21,289 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 5.20% | 26.50% | 17.40% | 25.40% |
Note 12 - Indebtedness (Details
Note 12 - Indebtedness (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Interest Rate Swap [Member] | ||||||
Derivative, Notional Amount | $ 20,000 | $ 15,000 | $ 15,000 | |||
Derivative, Term of Contract | 5 years | |||||
Derivative, Fixed Interest Rate | 2.70% | |||||
Interest Rate Swap [Member] | Other Nonoperating Income (Expense) [Member] | ||||||
Derivative, Loss on Derivative | 24 | $ 85 | 461 | $ 137 | ||
Interest Rate Swap [Member] | Other Current Liabilities [Member] | ||||||
Derivative, Fair Value, Net, Total | 397 | 397 | $ 64 | |||
Subsidiary Guarantors [Member] | Unsecured Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | ||||||
Debt Instrument, Face Amount | $ 70,000 | |||||
Letters of Credit Outstanding, Amount | $ 700 | $ 700 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.00% | 3.00% | ||||
Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | Prime Rate [Member] | Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||
Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | Prime Rate [Member] | Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||
Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | Unsecured Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||||
Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | Unsecured Term Loan [Member] | ||||||
Debt Instrument, Face Amount | $ 20,000 |
Note 12 - Indebtedness - Long-t
Note 12 - Indebtedness - Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Long-term debt | $ 15,000 | $ 25,143 |
Current portion | (2,857) | (2,857) |
Long-term debt, excluding current portion | 12,143 | 22,286 |
Term Loan [Member] | ||
Long-term debt | 15,000 | 17,143 |
Revolving Credit Facility [Member] | ||
Long-term debt | $ 8,000 |
Note 13 - Acquisition (Details
Note 13 - Acquisition (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Combination, Acquisition Related Costs | $ 0 | $ 1,089 | ||||
Dielectrics [Member] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Payments to Acquire Businesses, Gross | $ 80,000 | |||||
Business Combination, Consideration Transferred, Working Capital Adjustment | $ 250 | |||||
Business Combination, Acquisition Related Costs | $ 1,100 |
Note 13 - Acquisition - Assets
Note 13 - Acquisition - Assets Acquires and Liabilities Assumed (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill | $ 51,838 | $ 51,838 | |
Dielectrics [Member] | |||
Cash paid at closing | $ 80,000 | ||
Working capital adjustment | 250 | ||
Cash from Dielectrics | (3,272) | ||
Total consideration | 76,978 | ||
Accounts receivable | 4,384 | ||
Inventory | 4,418 | ||
Other current assets | 122 | ||
Property, plant and equipment | 4,600 | ||
Goodwill | 44,516 | ||
Total identifiable assets | 81,424 | ||
Accounts payable | (1,325) | ||
Accrued expenses | (946) | ||
Deferred revenue | (2,175) | ||
Net assets acquired | 76,978 | ||
Dielectrics [Member] | Customer Lists [Member] | |||
Intangible assets | 22,555 | ||
Dielectrics [Member] | Noncompete Agreements [Member] | |||
Intangible assets | 462 | ||
Dielectrics [Member] | Trade Name and Brand [Member] | |||
Intangible assets | $ 367 |
Note 13 - Acquisition - Pro For
Note 13 - Acquisition - Pro Forma Information (Unaudited) (Details) - Dielectrics [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Sales | $ 47,808 | $ 142,813 |
Operating income | 5,885 | 13,970 |
Net income | $ 4,134 | $ 9,700 |
Basic (in dollars per share) | $ 0.56 | $ 1.32 |
Diluted (in dollars per share) | $ 0.56 | $ 1.31 |
Note 14 - Subsequent Event (Det
Note 14 - Subsequent Event (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Nov. 08, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Repayments of Long-term Debt, Total | $ 2,143 | $ 2,143 | |
Subsequent Event [Member] | Subsidiary Guarantors [Member] | Amended and Restated Credit Agreement [Member] | Unsecured Term Loan [Member] | |||
Repayments of Long-term Debt, Total | $ 8,000 |