Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Wayside Technology Group, Inc. | ' |
Entity Central Index Key | '0000945983 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,901,523 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,606 | $19,609 |
Accounts receivable, net of allowances of $1,711 and $1,429 in 2014 and 2013, respectively | 60,721 | 60,796 |
Inventory, net | 1,414 | 1,315 |
Prepaid expenses and other current assets | 845 | 2,117 |
Deferred income taxes | 270 | 218 |
Total current assets | 78,856 | 84,055 |
Equipment and leasehold improvements, net | 355 | 324 |
Accounts receivable-long-term | 10,834 | 10,006 |
Other assets | 163 | 159 |
Deferred income taxes | 216 | 216 |
Total assets | 90,424 | 94,760 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 51,621 | 60,039 |
Total current liabilities | 51,621 | 60,039 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common Stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued; 4881,523 and 4,653,293 shares outstanding, respectively | 53 | 53 |
Additional paid-in capital | 30,716 | 28,791 |
Treasury stock, at cost, 402,977 and 631,207 shares, respectively | -6,007 | -7,017 |
Retained earnings | 14,199 | 12,695 |
Accumulated other comprehensive (loss) income | -158 | 199 |
Total stockholders' equity | 38,803 | 34,721 |
Total liabilities and stockholders' equity | $90,424 | $94,760 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Accounts receivable, allowances (in dollars) | $1,711 | $1,429 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 5,284,500 | 5,284,500 |
Common Stock, shares outstanding | 4,881,523 | 4,653,293 |
Treasury stock, shares | 402,977 | 631,207 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements of Earnings | ' | ' | ' | ' |
Net sales | $90,505 | $70,462 | $246,635 | $210,537 |
Cost of sales | 84,329 | 65,197 | 228,782 | 193,994 |
Gross profit | 6,176 | 5,265 | 17,853 | 16,543 |
Selling, general and administrative expenses | 4,291 | 3,480 | 12,293 | 11,211 |
Income from operations | 1,885 | 1,785 | 5,560 | 5,332 |
Other income: | ' | ' | ' | ' |
Interest, net | 121 | 140 | 375 | 416 |
Foreign currency transaction (loss) gain | -4 | -11 | -8 | 10 |
Income before provision for income taxes | 2,002 | 1,914 | 5,927 | 5,758 |
Provision for income taxes | 632 | 584 | 2,016 | 1,868 |
Net income | $1,370 | $1,330 | $3,911 | $3,890 |
Income per common share-Basic | $0.29 | $0.30 | $0.84 | $0.87 |
Income per common share-Diluted | $0.29 | $0.29 | $0.83 | $0.85 |
Weighted average common shares outstanding-Basic | 4,716 | 4,442 | 4,639 | 4,457 |
Weighted average common shares outstanding-Diluted | 4,736 | 4,551 | 4,685 | 4,568 |
Dividends paid per common share | $0.17 | $0.16 | $0.51 | $0.48 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net income | $1,370 | $1,330 | $3,911 | $3,890 |
Other comprehensive (loss) income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | -293 | 255 | -357 | -67 |
Reclassification adjustment for loss realized in net income on available-for-sale marketable securities | ' | ' | ' | 11 |
Other comprehensive (loss) income | -293 | 255 | -357 | -56 |
Comprehensive income | $1,077 | $1,585 | $3,554 | $3,834 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Common Stock | Additional Paid-In Capital | Treasury | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $53 | $28,791 | ($7,017) | $12,695 | $199 | $34,721 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | 631,207 | ' | ' | 631,207 |
Balance (in shares) at Dec. 31, 2013 | 5,284,500 | ' | ' | ' | ' | 5,284,500 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 3,911 | ' | 3,911 |
Translation adjustment | ' | ' | ' | ' | -357 | -357 |
Dividends paid | ' | ' | ' | -2,407 | ' | -2,407 |
Stock options exercised | ' | 552 | 1,239 | ' | ' | 1,791 |
Stock options exercised (in shares) | ' | ' | -220,000 | ' | ' | ' |
Share-based compensation expense | ' | 887 | ' | ' | ' | 887 |
Tax benefit from share-based compensation | ' | 713 | ' | ' | ' | 713 |
Restricted stock grants (net of forfeitures) | ' | -227 | 227 | ' | ' | ' |
Restricted stock grants (net of forfeitures) (in shares) | ' | ' | -36,571 | ' | ' | ' |
Treasury stock repurchased | ' | ' | -456 | ' | ' | -456 |
Treasury stock repurchased (in shares) | ' | ' | 28,341 | ' | ' | ' |
Balance at Sep. 30, 2014 | $53 | $30,716 | ($6,007) | $14,199 | ($158) | $38,803 |
Balance (in shares) at Sep. 30, 2014 | ' | ' | 402,977 | ' | ' | 402,977 |
Balance (in shares) at Sep. 30, 2014 | 5,284,500 | ' | ' | ' | ' | 5,284,500 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $3,911 | $3,890 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization expense | 167 | 213 |
Deferred income (benefit) tax expense | -52 | 34 |
Provision for doubtful accounts receivable | 43 | 157 |
Share-based compensation expense | 853 | 830 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,080 | 15,044 |
Inventory | -99 | 507 |
Prepaid expenses and other current assets | 1,266 | -311 |
Accounts payable and accrued expenses | -8,262 | -15,941 |
Other assets | -8 | -88 |
Net cash (used in) provided by operating activities | -3,261 | 4,335 |
Cash flows from investing activities | ' | ' |
Purchases of available-for-sale securities | ' | -920 |
Redemptions of available-for-sale securities | ' | 5,342 |
Purchase of equipment and leasehold improvements | -197 | -141 |
Net cash (used in) provided by investing activities | -197 | 4,281 |
Cash flows from financing activities | ' | ' |
Dividends paid | -2,407 | -2,233 |
Purchase of treasury stock | -456 | -1,782 |
Tax benefit from share-based compensation | 713 | 125 |
Repayment of capital lease obligations | ' | -55 |
Proceeds from stock option exercises | 1,791 | 201 |
Net cash (used in) financing activities | -359 | -3,744 |
Effect of foreign exchange rate on cash | -186 | 36 |
Net (decrease) increase in cash and cash equivalents | -4,003 | 4,908 |
Cash and cash equivalents at beginning of period | 19,609 | 9,835 |
Cash and cash equivalents at end of period | 15,606 | 14,743 |
Supplementary disclosure of cash flow information: | ' | ' |
Income taxes paid | 1,693 | 2,746 |
Interest paid | ' | $10 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1.The accompanying unaudited condensed consolidated financial statements of Wayside Technology Group, Inc. and its subsidiaries (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete audited financial statements. | |
The preparation of these condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, investments, intangible assets, income taxes, stock-based compensation, and contingencies and litigation. The Company bases its estimates on its historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In the opinion of the Company’s management, all adjustments that are of a normal recurring nature, considered necessary for fair presentation, have been included in the accompanying financial statements. The Company’s actual results may differ from these estimates under different assumptions or conditions. The unaudited condensed consolidated statements of earnings for the interim periods are not necessarily indicative of results for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the Securities Exchange Commission for the year ended December 31, 2013. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
2.In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. The standard is effective for our reporting year beginning January 1, 2017 and early adoption is not permitted. We are currently evaluating the impact of this new accounting pronouncement, if any, the pronouncement will have on our financial statements. | |
Foreign_Currency_Translation
Foreign Currency Translation | 9 Months Ended |
Sep. 30, 2014 | |
Foreign Currency Translation | ' |
Foreign Currency Translation | ' |
3.Assets and liabilities of the Company’s foreign subsidiaries have been translated at current exchange rates, and related sales and expenses have been translated at average rates of exchange in effect during the period. The sales from our Canadian operations in the first nine months of 2014 were $17.3 million as compared to $15.4 million for the first nine months of 2013. The sales from our Canadian operations for the third quarter of 2014 were $5.7 million as compared to $4.8 million for the third quarter of 2013. | |
Comprehensive_Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2014 | |
Comprehensive Income | ' |
Comprehensive Income | ' |
4.Cumulative translation adjustments and unrealized gains (losses) on available-for-sale securities have been classified within accumulated other comprehensive income, which is a separate component of stockholders’ equity in accordance with FASB ASC Topic 220, “Comprehensive Income.” | |
Revenue_Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2014 | |
Revenue Recognition | ' |
Revenue Recognition | ' |
5.Revenue on product (software and hardware) and maintenance agreement sales are recognized once four criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed and determinable, (3) delivery (software and hardware) or fulfillment (maintenance) has occurred, and (4) there is reasonable assurance of collection of the sales proceeds. Revenues from the sales of hardware products, software products and licenses and maintenance agreements are recognized on a gross basis with the selling price to the customer recorded as sales and the acquisition cost of the product recorded as cost of sales. | |
Product delivery to customers occur in a variety of ways, including (i) as physical product shipped from the Company’s warehouse, (ii) via drop-shipment by the vendor, or (iii) via electronic delivery for software licenses. The Company leverages drop-ship arrangements with many of its vendors and suppliers to deliver products to customers without having to physically hold the inventory at its warehouse, thereby increasing efficiency and reducing costs. The Company recognizes revenue for drop-ship arrangements on a gross basis. Furthermore, in such drop-ship arrangements, the Company negotiates price with the customer, pays the supplier directly for the product shipped and bears credit risk of collecting payment from its customers. The Company serves as the principal with the customer and, therefore, recognizes the sale and cost of sale of the product upon receiving notification from the supplier that the product has shipped. Maintenance agreements allow customers to obtain technical support directly from the software publisher and to upgrade, at no additional cost, to the latest technology if new applications are introduced by the software publisher during the period that the maintenance agreement is in effect. | |
Sales are recorded net of discounts, rebates, and returns. Vendor rebates and price protection are recorded when earned as a reduction to cost of sales or merchandise inventory, as applicable. | |
Cooperative reimbursements from vendors, which are earned and available, are recorded in the period the related advertising expenditure is incurred. Cooperative reimbursements are recorded as a reduction of cost of sales in accordance with FASB ASC Topic 605-50 “Accounting by a Customer (including reseller) for Certain Consideration Received from a Vendor.” Provisions for returns are estimated based on historical sales returns and credit memo analysis which are adjusted to actual on a periodic basis. | |
Accounts receivable-long-term result from product sales with extended payment terms that are discounted to their present values at the prevailing market rates. In subsequent periods, the accounts receivable are increased to the amounts due and payable by the customers through the accretion of interest income on the unpaid accounts receivable due in future years. The amounts due under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable. | |
Marketable_securities
Marketable securities | 9 Months Ended |
Sep. 30, 2014 | |
Marketable securities | ' |
Marketable securities | ' |
6.The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated fair value at September 30, 2014 and December 31, 2013 because of the relative short maturity of these instruments. The Company’s accounts receivable long-term is discounted to their present value at prevailing market rates so the balances approximate fair value. | |
Balance_Sheet_Detail
Balance Sheet Detail | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Balance Sheet Detail | ' | |||||||
Balance Sheet Detail | ' | |||||||
7.Balance Sheet Detail: | ||||||||
Equipment and leasehold improvements consist of the following as of September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Equipment | $ | 2,948 | $ | 2,771 | ||||
Leasehold improvements | 568 | 555 | ||||||
3,516 | 3,326 | |||||||
Less accumulated depreciation and amortization | (3,161 | ) | (3,002 | ) | ||||
$ | 355 | $ | 324 | |||||
Accounts payable and accrued expenses consist of the following as of September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Trade accounts payable | $ | 47,980 | $ | 56,973 | ||||
Accrued expenses | 3,641 | 3,066 | ||||||
$ | 51,621 | $ | 60,039 | |||||
Accumulated other comprehensive income consists of the following as of September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Foreign currency translation adjustment | $ | (158 | ) | $ | 199 | |||
$ | (158 | ) | $ | 199 | ||||
Credit_Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2014 | |
Credit Facility. | ' |
Credit Facility | ' |
8.On January 4, 2013, the Company entered into a $10,000,000 revolving credit facility (the “Credit Facility”) with Citibank, N.A. (“Citibank”) pursuant to a Business Loan Agreement (the “Loan Agreement”), Promissory Note (the “Note”), Commercial Security Agreements (the “Security Agreements”) and Commercial Pledge Agreement (the “Pledge Agreement”). The Credit Facility, which will be used for business and working capital purposes, including financing of larger extended payment terms sales transactions. The Credit Facility matures on January 4, 2016, at which time the Company must pay this loan in one payment of any outstanding principal plus all accrued unpaid interest. In addition, the Company will pay regular monthly payments of all accrued unpaid interest. The interest rate for any borrowings under the Credit Facility is subject to change from time to time based on the changes in an independent index which is the LIBOR Rate (the “Index”). If the Index becomes unavailable during the term of this loan, Citibank may designate a substitute index after notifying the Company. Interest on the unpaid principal balance of the Note will be calculated using a rate of 1.500 percentage points over the Index. The Credit Facility is secured by the assets of the Company. | |
Among other affirmative covenants set forth in the Loan Agreement, the Company must maintain (i) a ratio of Total Liabilities to Tangible Net Worth (each as defined in the Loan Agreement) of not greater than 2.50 to 1.00, to be tested quarterly and (ii) a minimum Debt Service Coverage Ratio (as defined in the Loan Agreement) of 2.00 to 1.00. Additionally, the Loan Agreement contains negative covenants related to, among other items, prohibitions against the creation of certain liens, engaging in any business activities substantially different than those currently engaged in by the Company, and paying dividends on the Company’s stock other than (i) dividends payable in its stock and (ii) cash dividends in amounts and frequency consistent with past practice, without first securing the written consent of Citibank. The Company is in compliance with all covenants at September 30, 2014. | |
At September 30, 2014, the Company had no borrowings outstanding under the Credit Facility. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
9.Basic Earnings Per Share (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS is calculated by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding, adjusted for potentially dilutive securities including unexercised stock option grants and nonvested shares of restricted stock. | ||||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted per share computations follows: | ||||||||||||||
Nine months | Three months | |||||||||||||
Ended | ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net income | $ | 3,911 | $ | 3,890 | $ | 1,370 | $ | 1,330 | ||||||
Denominator: | ||||||||||||||
Weighted average shares (Basic) | 4,639 | 4,457 | 4,716 | 4,442 | ||||||||||
Dilutive effect of outstanding options and non-vested shares of restricted stock | 46 | 111 | 20 | 109 | ||||||||||
Weighted average shares including assumed conversions (Diluted) | 4,685 | 4,568 | 4,736 | 4,551 | ||||||||||
Basic income per share | $ | 0.84 | $ | 0.87 | $ | 0.29 | $ | 0.30 | ||||||
Diluted income per share | $ | 0.83 | $ | 0.85 | $ | 0.29 | $ | 0.29 | ||||||
Major_customers
Major customers | 9 Months Ended |
Sep. 30, 2014 | |
Major customers | ' |
Major customers | ' |
10.The Company had one major vendor that accounted for 13.6% and 17.3% of total purchases during the nine months and three months, respectively, that ended September 30, 2014. The Company had one major vendor that accounted for 10.0% and 10.4% of total purchases during the nine and three months, respectively, that ended September 30, 2013. The Company had three major customers that accounted for 16.7%, 16.4% and 10.9% of its total net sales during the nine months ended September 30, 2014, and 16.8%, 18.7% and 10.6% of total net sales for the three months ended September 30, 2014. These same customers accounted for 15.0%, 16.9% and 8.1% of total net accounts receivable as September 30, 2014. The Company had three major customers that accounted for 15.0%, 14.3% and 11.9% of its total net sales during the nine months ended September 30, 2013, and 15.0%, 15.0% and 11.8% of total net sales for the three months ended September 30, 2013. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
11.The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company has identified its federal consolidated tax return and its state tax return in New Jersey and its Canadian tax return as major tax jurisdictions. As of September 30, 2014 the Company’s 2013 Federal tax return remains open for examination, as the Company recently concluded an Internal Revenue Service examination for the 2011 and 2012 tax years. This examination resulted in no change to the previously filed Federal corporate tax returns. The Company’s New Jersey and Canadian tax returns are open for examination for the years 2011 through 2013. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. | |
The effective tax rate for each of the nine and three months ended September 30, 2014 was 34.0% and 31.6% respectively, compared with 32.4% and 30.5% for the same periods last year. The current year effective tax rates are higher primarily due to fact the prior year included an adjustment to reflect a change in state apportionment rules. | |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Stockholders' Equity and Stock Based Compensation | ' | |||||||||||
Stockholders' Equity and Stock Based Compensation | ' | |||||||||||
12.The 2012 Stock-Based Compensation Plan (the “2012 Plan”) authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses and other equity-based awards. The total number of shares of Common Stock initially available for award under the 2012 Plan was 600,000. As of September 30, 2014, the number of shares of Common stock available for future award grants to employees and directors under the 2012 Plan is 541,479. | ||||||||||||
The 2006 Stock-Based Compensation Plan (the “2006 Plan”) authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses, and other equity-based awards. The total number of shares of Common Stock initially available for award under the 2006 Plan was 800,000. As of September 30, 2014, there are no shares of Common Stock available for future award grants to employees and directors under the 2006 Plan. | ||||||||||||
During 2006, the Company granted a total of 315,000 shares of Restricted Stock to officers, directors and employees. Included in this grant were 200,000 Restricted Shares granted to the Company’s CEO in accordance with his employment agreement. These 200,000 Restricted Shares vest over 40 equal quarterly installments. The remaining grants of Restricted Stock vest over 20 equal quarterly installments. | ||||||||||||
During 2007, the Company granted a total of 30,000 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest over 20 equal quarterly installments. In 2007, a total of 12,500 shares of Restricted Stock were forfeited as a result of employees and officers terminating employment with the Company. | ||||||||||||
During 2008, the Company granted a total of 57,500 shares of Restricted Stock to officers and directors. These shares of Restricted Stock vest over 20 equal quarterly installments. In 2008, a total of 3,500 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company. | ||||||||||||
During 2009, the Company granted a total of 140,000 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over 20 equal quarterly installments. | ||||||||||||
During 2010, the Company granted a total of 150,500 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over 20 equal quarterly installments. In 2010, a total of 5,875 shares of Restricted Stock were forfeited as a result of employees and officers terminating employment with the Company. | ||||||||||||
During 2011, the Company granted a total of 15,000 shares of Restricted Stock to employees. These shares of Restricted Stock vest over 20 equal quarterly installments. In 2011, a total of 8,375 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company. | ||||||||||||
During 2012, the Company granted a total of 92,000 shares of Restricted Stock to officers, directors, and employees. These shares of Restricted Stock vest over 20 equal quarterly installments. A total of 3,525 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company. | ||||||||||||
During 2013, the Company granted a total of 56,500 shares of Restricted Stock to officers and employees. Included in these grants were 40,000 Restricted Shares granted to the Company’s CEO in accordance with the satisfaction of certain performance criteria included in his compensation plan. These 40,000 Restricted Shares vest over 16 equal quarterly installments. The remaining grants of Restricted Stock vest over 20 equal quarterly installments. A total of 775 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company. | ||||||||||||
During 2014, the Company granted a total of 70,689 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest between eight and twenty equal quarterly installments. A total of 34,118 shares of Restricted Stock were forfeited as a result of officers and employees terminating employment with the Company. | ||||||||||||
Changes during 2014 in options outstanding under the Company’s combined plans (i.e., the 2012 Plan, the 2006 Plan, the 1995 Non-Employee Director Plan and the 1995 Stock Option Plan) were as follows: | ||||||||||||
Number of | Weighted Average | Weighted Average | Aggregate Intrinsic | |||||||||
Options | Exercise Price | Remaining | Value ($M)(1) | |||||||||
Contractual Life | ||||||||||||
Outstanding at January 1, 2014 | 285,640 | $ | 8.71 | |||||||||
Granted in 2014 | — | — | ||||||||||
Canceled in 2014 | (20,000 | ) | 5.5 | |||||||||
Exercised in 2014 | (220,000 | ) | 8.14 | |||||||||
Outstanding at September 30, 2014 | 45,640 | $ | 12.85 | 0.6 | $ | 0.1 | ||||||
Exercisable at September 30, 2014 | 45,640 | $ | 12.85 | 0.6 | $ | 0.1 | ||||||
(1) The intrinsic value of an option is calculated as the difference between the market value on the last trading day of the quarter (September 30, 2014) and the exercise price of the outstanding options. The market value as of September 30, 2014 was $15.82 per share represented by the closing price as reported by The NASDAQ Global Market on that day. | ||||||||||||
A summary of nonvested shares of Restricted Stock awards outstanding under the Company’s the 2012 Plan and 2006 Plan as of September 30, 2014, and changes during the nine months then ended is as follows: | ||||||||||||
Shares | Weighted Average | |||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Nonvested shares at January 1, 2014 | 199,550 | $ | 12.02 | |||||||||
Granted in 2014 | 70,689 | 15.84 | ||||||||||
Vested in 2014 | (75,223 | ) | 11.51 | |||||||||
Forfeited in 2014 | (34,118 | ) | 11.58 | |||||||||
Nonvested shares at September 30, 2014 | 160,898 | $ | 13.97 | |||||||||
As of September 30, 2014, there is approximately $2.2 million of total unrecognized compensation costs related to nonvested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 2.7 years. | ||||||||||||
For the nine months ended September 30, 2014 and 2013, the Company recognized share-based compensation cost of $853,000 and $830,000 respectively, which is included in the Company’s general and administrative expense. | ||||||||||||
Industry_Segment_and_Geographi
Industry, Segment and Geographic Information | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Industry, Segment and Geographic Information | ' | |||||||||||||
Industry, Segment and Geographic Information | ' | |||||||||||||
13.FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. | ||||||||||||||
The Company is organized into two reportable operating segments. The “Lifeboat Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “TechXtend” segment is a value-added reseller of software, hardware and services for corporations, government organizations and academic institutions in the United States and Canada. | ||||||||||||||
As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as the Canadian operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources. | ||||||||||||||
Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. | ||||||||||||||
The following segment reporting information of the Company is provided: | ||||||||||||||
Nine months ended | Three months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Revenue: | ||||||||||||||
Lifeboat Distribution | $ | 206,655 | $ | 171,949 | $ | 77,416 | $ | 56,871 | ||||||
TechXtend | 39,980 | 38,588 | 13,089 | 13,591 | ||||||||||
246,635 | 210,537 | 90,505 | 70,462 | |||||||||||
Gross Profit: | ||||||||||||||
Lifeboat Distribution | $ | 13,475 | $ | 12,129 | $ | 4,747 | $ | 3,846 | ||||||
TechXtend | 4,378 | 4,414 | 1,429 | 1,419 | ||||||||||
17,853 | 16,543 | 6,176 | 5,265 | |||||||||||
Direct Costs: | ||||||||||||||
Lifeboat Distribution | $ | 4,044 | $ | 3,445 | $ | 1,565 | $ | 1,095 | ||||||
TechXtend | 2,409 | 2,390 | 815 | 735 | ||||||||||
6,453 | 5,835 | 2,380 | 1,830 | |||||||||||
Segment Income: | ||||||||||||||
Lifeboat Distribution | $ | 9,431 | $ | 8,684 | $ | 3,182 | $ | 2,751 | ||||||
TechXtend | 1,969 | 2,024 | 614 | 684 | ||||||||||
Segment Income | 11,400 | 10,708 | 3,796 | 3,435 | ||||||||||
General and administrative | $ | 5,840 | $ | 5,376 | $ | 1,911 | $ | 1,650 | ||||||
Interest, net | 375 | 416 | 121 | 140 | ||||||||||
Foreign currency translation (loss) gain | (8 | ) | 10 | (4 | ) | (11 | ) | |||||||
Income before taxes | $ | 5,927 | $ | 5,758 | $ | 2,002 | $ | 1,914 | ||||||
As of | ||||||||||||||
September 30, | ||||||||||||||
2014 | ||||||||||||||
Selected Assets By Segment: | ||||||||||||||
Lifeboat Distribution | $ | 37,482 | ||||||||||||
TechXtend | 35,487 | |||||||||||||
Segment Select Assets | 72,969 | |||||||||||||
Corporate Assets | 17,455 | |||||||||||||
Total Assets | $ | 90,424 | ||||||||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Recently Adopted Accounting Pronouncements | ' |
In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue arising from contracts with customers. The standard is effective for our reporting year beginning January 1, 2017 and early adoption is not permitted. We are currently evaluating the impact of this new accounting pronouncement, if any, the pronouncement will have on our financial statements. | |
Balance_Sheet_Detail_Tables
Balance Sheet Detail (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Balance Sheet Detail | ' | |||||||
Schedule of equipment and leasehold improvements, net | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Equipment | $ | 2,948 | $ | 2,771 | ||||
Leasehold improvements | 568 | 555 | ||||||
3,516 | 3,326 | |||||||
Less accumulated depreciation and amortization | (3,161 | ) | (3,002 | ) | ||||
$ | 355 | $ | 324 | |||||
Schedule of accounts payable and accrued expenses | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Trade accounts payable | $ | 47,980 | $ | 56,973 | ||||
Accrued expenses | 3,641 | 3,066 | ||||||
$ | 51,621 | $ | 60,039 | |||||
Schedule of accumulated other comprehensive income | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Foreign currency translation adjustment | $ | (158 | ) | $ | 199 | |||
$ | (158 | ) | $ | 199 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of reconciliation of the numerators and denominators for computations of the basic and diluted per share | ' | |||||||||||||
Nine months | Three months | |||||||||||||
Ended | ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net income | $ | 3,911 | $ | 3,890 | $ | 1,370 | $ | 1,330 | ||||||
Denominator: | ||||||||||||||
Weighted average shares (Basic) | 4,639 | 4,457 | 4,716 | 4,442 | ||||||||||
Dilutive effect of outstanding options and non-vested shares of restricted stock | 46 | 111 | 20 | 109 | ||||||||||
Weighted average shares including assumed conversions (Diluted) | 4,685 | 4,568 | 4,736 | 4,551 | ||||||||||
Basic income per share | $ | 0.84 | $ | 0.87 | $ | 0.29 | $ | 0.30 | ||||||
Diluted income per share | $ | 0.83 | $ | 0.85 | $ | 0.29 | $ | 0.29 | ||||||
Stockholders_Equity_and_Stock_1
Stockholders' Equity and Stock Based Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Stockholders' Equity and Stock Based Compensation | ' | |||||||||||
Schedule of changes in options outstanding under the combined plans | ' | |||||||||||
Number of | Weighted Average | Weighted Average | Aggregate Intrinsic | |||||||||
Options | Exercise Price | Remaining | Value ($M)(1) | |||||||||
Contractual Life | ||||||||||||
Outstanding at January 1, 2014 | 285,640 | $ | 8.71 | |||||||||
Granted in 2014 | — | — | ||||||||||
Canceled in 2014 | (20,000 | ) | 5.5 | |||||||||
Exercised in 2014 | (220,000 | ) | 8.14 | |||||||||
Outstanding at September 30, 2014 | 45,640 | $ | 12.85 | 0.6 | $ | 0.1 | ||||||
Exercisable at September 30, 2014 | 45,640 | $ | 12.85 | 0.6 | $ | 0.1 | ||||||
(1) The intrinsic value of an option is calculated as the difference between the market value on the last trading day of the quarter (September 30, 2014) and the exercise price of the outstanding options. The market value as of September 30, 2014 was $15.82 per share represented by the closing price as reported by The NASDAQ Global Market on that day. | ||||||||||||
Summary of nonvested shares of Restricted Stock awards outstanding and the changes during the period | ' | |||||||||||
Shares | Weighted Average | |||||||||||
Grant Date | ||||||||||||
Fair Value | ||||||||||||
Nonvested shares at January 1, 2014 | 199,550 | $ | 12.02 | |||||||||
Granted in 2014 | 70,689 | 15.84 | ||||||||||
Vested in 2014 | (75,223 | ) | 11.51 | |||||||||
Forfeited in 2014 | (34,118 | ) | 11.58 | |||||||||
Nonvested shares at September 30, 2014 | 160,898 | $ | 13.97 | |||||||||
Industry_Segment_and_Geographi1
Industry, Segment and Geographic Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Industry, Segment and Geographic Information | ' | |||||||||||||
Schedule of segment reporting information | ' | |||||||||||||
Nine months ended | Three months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Revenue: | ||||||||||||||
Lifeboat Distribution | $ | 206,655 | $ | 171,949 | $ | 77,416 | $ | 56,871 | ||||||
TechXtend | 39,980 | 38,588 | 13,089 | 13,591 | ||||||||||
246,635 | 210,537 | 90,505 | 70,462 | |||||||||||
Gross Profit: | ||||||||||||||
Lifeboat Distribution | $ | 13,475 | $ | 12,129 | $ | 4,747 | $ | 3,846 | ||||||
TechXtend | 4,378 | 4,414 | 1,429 | 1,419 | ||||||||||
17,853 | 16,543 | 6,176 | 5,265 | |||||||||||
Direct Costs: | ||||||||||||||
Lifeboat Distribution | $ | 4,044 | $ | 3,445 | $ | 1,565 | $ | 1,095 | ||||||
TechXtend | 2,409 | 2,390 | 815 | 735 | ||||||||||
6,453 | 5,835 | 2,380 | 1,830 | |||||||||||
Segment Income: | ||||||||||||||
Lifeboat Distribution | $ | 9,431 | $ | 8,684 | $ | 3,182 | $ | 2,751 | ||||||
TechXtend | 1,969 | 2,024 | 614 | 684 | ||||||||||
Segment Income | 11,400 | 10,708 | 3,796 | 3,435 | ||||||||||
General and administrative | $ | 5,840 | $ | 5,376 | $ | 1,911 | $ | 1,650 | ||||||
Interest, net | 375 | 416 | 121 | 140 | ||||||||||
Foreign currency translation (loss) gain | (8 | ) | 10 | (4 | ) | (11 | ) | |||||||
Income before taxes | $ | 5,927 | $ | 5,758 | $ | 2,002 | $ | 1,914 | ||||||
As of | ||||||||||||||
September 30, | ||||||||||||||
2014 | ||||||||||||||
Selected Assets By Segment: | ||||||||||||||
Lifeboat Distribution | $ | 37,482 | ||||||||||||
TechXtend | 35,487 | |||||||||||||
Segment Select Assets | 72,969 | |||||||||||||
Corporate Assets | 17,455 | |||||||||||||
Total Assets | $ | 90,424 | ||||||||||||
Foreign_Currency_Translation_D
Foreign Currency Translation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Canadian operations | ' | ' | ' | ' |
Sales | $90,505 | $70,462 | $246,635 | $210,537 |
Canadian operations | ' | ' | ' | ' |
Canadian operations | ' | ' | ' | ' |
Sales | $5,700 | $4,800 | $17,300 | $15,400 |
Revenue_Recognition_Details
Revenue Recognition (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
item | |
Revenue Recognition | ' |
Number of criteria | 4 |
Additional cost to obtain technical support directly from the software publisher and upgrade to latest technology | $0 |
Balance_Sheet_Detail_Details
Balance Sheet Detail: (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equipment and leasehold improvements | ' | ' |
Gross | $3,516 | $3,326 |
Less accumulated depreciation and amortization | -3,161 | -3,002 |
Net | 355 | 324 |
Accounts payable and accrued expenses | ' | ' |
Trade accounts payable | 47,980 | 56,973 |
Accrued expenses | 3,641 | 3,066 |
Accounts payable and accrued expenses | 51,621 | 60,039 |
Accumulated other comprehensive income | ' | ' |
Foreign currency translation adjustment | -158 | 199 |
Accumulated other comprehensive income | -158 | 199 |
Equipment | ' | ' |
Equipment and leasehold improvements | ' | ' |
Gross | 2,948 | 2,771 |
Leasehold improvements | ' | ' |
Equipment and leasehold improvements | ' | ' |
Gross | $568 | $555 |
Credit_Facility_Details
Credit Facility (Details) (Credit Facility, USD $) | Sep. 30, 2014 | Jan. 04, 2013 | Jan. 04, 2013 |
item | Index | ||
Credit Facility | ' | ' | ' |
Maximum borrowing capacity | ' | $10,000,000 | ' |
Number of payments | ' | 1 | ' |
Variable interest rate base | ' | ' | 'LIBOR |
Interest rate margin (as a percent) | ' | ' | 1.50% |
Total liabilities to tangible net worth ratio, maximum | ' | 2.5 | ' |
Interest coverage ratio, minimum | ' | 2 | ' |
Borrowings outstanding | $0 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income | $1,370 | $1,330 | $3,911 | $3,890 |
Denominator: | ' | ' | ' | ' |
Weighted average shares (Basic) | 4,716 | 4,442 | 4,639 | 4,457 |
Dilutive effect of outstanding options and nonvested shares of restricted stock (in shares) | 20 | 109 | 46 | 111 |
Weighted average shares including assumed conversions (Diluted) | 4,736 | 4,551 | 4,685 | 4,568 |
Basic income per share (in dollars per share) | $0.29 | $0.30 | $0.84 | $0.87 |
Diluted income per share (in dollars per share) | $0.29 | $0.29 | $0.83 | $0.85 |
Major_customers_Details
Major customers (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
entity | entity | entity | entity | |
Purchases | Vendor concentration risk | One major vendor | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Number of vendors | 1 | 1 | 1 | 1 |
Percentage of concentration risk | 17.30% | 10.40% | 13.60% | 10.00% |
Net sales | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Number of customers | 3 | 3 | 3 | 3 |
Net sales | Customer one | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Percentage of concentration risk | 16.80% | 15.00% | 16.70% | 15.00% |
Net sales | Customer two | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Percentage of concentration risk | 18.70% | 15.00% | 16.40% | 14.30% |
Net sales | Customer three | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Percentage of concentration risk | 10.60% | 11.80% | 10.90% | 11.90% |
Net accounts receivable | Customer one | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Percentage of concentration risk | ' | ' | 15.00% | ' |
Net accounts receivable | Customer two | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Percentage of concentration risk | ' | ' | 16.90% | ' |
Net accounts receivable | Customer three | Customer concentration risk | ' | ' | ' | ' |
Significant Customers | ' | ' | ' | ' |
Percentage of concentration risk | ' | ' | 8.10% | ' |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes | ' | ' | ' | ' |
Effective tax rate (as a percent) | 31.60% | 30.50% | 34.00% | 32.40% |
Stockholders_Equity_and_Stock_2
Stockholders' Equity and Stock Based Compensation (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2006 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2012 Plan | 2006 Plan and 2012 Plan | 2006 Plan and 2012 Plan | 2006 Plan and 2012 Plan | 2006 Plan and 2012 Plan | |
Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | |||
installment | installment | installment | installment | installment | installment | installment | installment | CEO | Minimum | Maximum | CEO | ||||
installment | installment | installment | installment | ||||||||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock initially available for award | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Options reserved for future issuance (in shares) | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 541,479 | ' | ' | ' | ' |
Granted (in shares) | ' | 56,500 | 92,000 | 15,000 | 150,500 | 140,000 | 57,500 | 30,000 | 315,000 | 200,000 | ' | 70,689 | ' | ' | 40,000 |
Number of equal quarterly installments for vesting of awards | ' | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 40 | ' | ' | 8 | 20 | 16 |
Forfeited (in shares) | ' | 775 | 3,525 | 8,375 | 5,875 | ' | 3,500 | 12,500 | ' | ' | ' | 34,118 | ' | ' | ' |
Stockholders_Equity_and_Stock_3
Stockholders' Equity and Stock Based Compensation (Details 2) (Options, USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 |
Options | ' |
Number of Options | ' |
Outstanding at the beginning of the period (in shares) | 285,640 |
Canceled (in shares) | -20,000 |
Exercised (in shares) | -220,000 |
Outstanding at the end of the period (in shares) | 45,640 |
Exercisable at the end of the period (in shares) | 45,640 |
Weighted Average Exercise Price | ' |
Outstanding at the beginning of the period (in dollars per share) | $8.71 |
Canceled (in dollars per share) | $5.50 |
Exercised (in dollars per share) | $8.14 |
Outstanding at the end of the period (in dollars per share) | $12.85 |
Exercisable at the end of the period (in dollars per share) | $12.85 |
Weighted Average Remaining Contractual Term | ' |
Outstanding at the end of the period | '7 months 6 days |
Exercisable at the end of the period | '7 months 6 days |
Aggregate Intrinsic Value | ' |
Aggregate intrinsic value of options outstanding | $0.10 |
Aggregate intrinsic value of options exercisable | $0.10 |
Market value (in dollars per share) | $15.82 |
Stockholders_Equity_and_Stock_4
Stockholders' Equity and Stock Based Compensation (Details 3) (2006 Plan and 2012 Plan, Restricted stock, USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
2006 Plan and 2012 Plan | Restricted stock | ' | ' |
Shares | ' | ' |
Nonvested shares at the beginning of the period | 199,550 | ' |
Granted (in shares) | 70,689 | ' |
Vested (in shares) | -75,223 | ' |
Forfeited (in shares) | -34,118 | ' |
Nonvested shares at the end of the period | 160,898 | ' |
Weighted Average Grant Date Fair Value | ' | ' |
Nonvested shares at the beginning of period (in dollars per share) | $12.02 | ' |
Granted (in dollars per share) | $15.84 | ' |
Vested (in dollars per share) | $11.51 | ' |
Forfeited (in dollars per share) | $11.58 | ' |
Nonvested shares at the end of period (in dollars per share) | $12.99 | ' |
Unrecognized compensation cost (in dollars) | $2,200,000 | ' |
Weighted average period for recognition of unrecognized compensation cost | '2 years 8 months 12 days | ' |
Share-based compensation cost (in dollars) | $853,000 | $830,000 |
Industry_Segment_and_Geographi2
Industry, Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
item | |||||
Industry, Segment and Geographic Information | ' | ' | ' | ' | ' |
Number of reportable operating segments | ' | ' | 2 | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenue | $90,505 | $70,462 | $246,635 | $210,537 | ' |
Gross Profit | 6,176 | 5,265 | 17,853 | 16,543 | ' |
Direct Costs | 2,380 | 1,830 | 6,453 | 5,835 | ' |
Segment Income | 3,796 | 3,435 | 11,400 | 10,708 | ' |
General and administrative | 1,911 | 1,650 | 5,840 | 5,376 | ' |
Interest, net | 121 | 140 | 375 | 416 | ' |
Foreign currency translation (loss) gains | -4 | -11 | -8 | 10 | ' |
Income before provision for income taxes | 2,002 | 1,914 | 5,927 | 5,758 | ' |
Total Assets | 90,424 | ' | 90,424 | ' | 94,760 |
Segment Total | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Total Assets | 72,969 | ' | 72,969 | ' | ' |
Corporate Assets | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Total Assets | 17,455 | ' | 17,455 | ' | ' |
Lifeboat Distribution | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenue | 77,416 | 56,871 | 206,655 | 171,949 | ' |
Gross Profit | 4,747 | 3,846 | 13,475 | 12,129 | ' |
Direct Costs | 1,565 | 1,095 | 4,044 | 3,445 | ' |
Segment Income | 3,182 | 2,751 | 9,431 | 8,684 | ' |
Total Assets | 37,482 | ' | 37,482 | ' | ' |
TechXtend | ' | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' | ' |
Revenue | 13,089 | 13,591 | 39,980 | 38,588 | ' |
Gross Profit | 1,429 | 1,419 | 4,378 | 4,414 | ' |
Direct Costs | 815 | 735 | 2,409 | 2,390 | ' |
Segment Income | 614 | 684 | 1,969 | 2,024 | ' |
Total Assets | $35,487 | ' | $35,487 | ' | ' |