Ascent Industries (ACNT) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Aug. 04, 2016
Document Information [Line Items]
Entity Registrant Name	Synalloy Corporation
Entity Central Index Key	95,953
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Public Float	$ 63,280,131
Entity Common Stock, Shares Outstanding		8,658,361
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 2,150,196	$ 391,424
Accounts receivable, less allowance for doubtful accounts of $212,000 and $247,000, respectively	18,809,710	17,946,119
Inventories, net	59,540,602	63,815,635
Prepaid expenses and other current assets	6,359,146	2,943,236
Total current assets	86,859,654	85,096,414
Cash value of life insurance	0	1,500,781
Property, plant and equipment, net of accumulated depreciation of $52,439,143 and $50,203,945, respectively	45,732,667	46,294,271
Goodwill	1,354,730	1,354,730
Intangible assets, net of accumulated amortization of $6,929,668 and $5,711,175	13,527,332	14,745,825
Deferred charges, net and other non-current assets	40,068	51,469
Total assets	147,514,451	149,043,490
Current liabilities
Accounts payable	14,490,685	12,265,930
Accrued expenses	6,852,587	9,891,868
Current portion of long-term debt	4,533,908	4,533,908
Other current liabilities	122,458	101,000
Total current liabilities	25,999,638	26,792,706
Long-term debt, less unamortized debt issuance costs of $108,181 and $135,915, respectively	23,914,370	23,409,886
Long-term environmental reserves	450,000	450,000
Deferred income taxes	4,638,640	3,016,954
Deferred compensation	146,257	146,257
Other long-term liabilities	0	73,393
Shareholders' equity
Common stock, par value $1 per share - authorized 24,000,000 shares; issued 10,300,000 shares	10,300,000	10,300,000
Capital in excess of par value	34,540,125	34,476,240
Retained earnings	61,980,013	65,029,474
Shareholders' equity before treasury stock	106,820,138	109,805,714
Less cost of common stock in treasury: 1,641,639 and 1,663,314 shares, respectively	14,454,592	14,651,420
Total shareholders' equity	92,365,546	95,154,294
Commitments and contingencies – See Note 10
Total liabilities and shareholders' equity	$ 147,514,451	$ 149,043,490

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 212,000	$ 247,000
Assets
Accumulated depreciation	$ 52,439,143	$ 50,203,945
Shareholders' equity
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	24,000,000	24,000,000
Common stock, shares issued (in shares)	10,300,000	10,300,000
Common stock in treasury, at cost (in shares)	1,641,639	1,663,314
Intangible asset, net of accumulated amortization	$ 6,929,668	$ 5,711,175
Unamortized debt issuance costs	$ 108,181	$ 135,915

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jul. 04, 2015	Jun. 30, 2016	Jul. 04, 2015
Net sales	$ 34,906,668	$ 50,163,448	$ 71,218,680	$ 101,811,693
Cost of sales	30,909,074	41,747,379	62,502,910	84,454,005
Gross profit	3,997,594	8,416,069	8,715,770	17,357,688
Selling, general and administrative expense	5,654,659	5,720,992	11,226,561	11,091,681
Acquisition related costs	75,000	4,770	75,057	445,046
Business interruption insurance proceeds	0	(480,000)	0	(480,000)
Operating (loss) income	(1,732,065)	3,170,307	(2,585,848)	6,300,961
Other (income) and expense
Interest expense	268,143	320,842	549,439	698,495
Change in fair value of interest rate swaps	98,187	(183,337)	391,840	(13,917)
Palmer earn-out adjustment	0	0	0	(2,483,333)
Other, net	0	(134,483)	0	(137,308)
(Loss) income before income taxes	(2,098,395)	3,167,285	(3,527,127)	8,237,024
(Benefit from) provision for income taxes	(515,000)	712,000	(577,000)	2,144,000
Net (loss) income from continuing operations	(1,583,395)	2,455,285	(2,950,127)	6,093,024
Net loss from discontinued operations, net of tax	(99,334)	0	(99,334)	0
Net (loss) income	$ (1,682,729)	$ 2,455,285	$ (3,049,461)	$ 6,093,024
Net (loss) income per common share from continuing operations, per basic share	$ (0.18)	$ 0.28	$ (0.34)	$ 0.70
Net (loss) income per common share from continuing operations, per diluted share	(0.18)	0.28	(0.34)	0.70
Net loss per common share from discontinued operations, per basic share	(0.01)	0	(0.01)	0
Net loss per common share from discontinued operations, per diluted hare	$ (0.01)	$ 0	$ (0.01)	$ 0
Weighted average shares outstanding:
Basic (shares)	8,638,584	8,722,473	8,636,574	8,718,501
Dilutive effect from stock options and grants (shares)	0	12,502	0	16,745
Diluted (shares)	8,638,584	8,734,975	8,636,574	8,735,246

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2016	Jul. 04, 2015
Operating activities
Net (loss) income	$ (3,049,461)	$ 6,093,024
Loss from discontinued operations, net of tax	(99,334)	0
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation expense	2,279,954	2,387,856
Amortization expense	1,229,892	1,138,740
Non-cash interest expense on debt issuance costs	27,734	41,847
Deferred income taxes	1,621,686	412,062
Palmer earn-out adjustment	0	(2,483,333)
Adjustments to allowance for doubtful accounts	(27,043)	(837,568)
Adjustments to inventory reserves	228,126	452,103
Gain on sale of property, plant and equipment	(45,429)	(12,000)
Change in cash value of life insurance	1,502	540,152
Change in fair value of interest rate swap	391,839	(13,917)
Change in environmental reserves	21,458	18,868
Issuance of treasury stock for director fees	330,000	118,762
Employee stock option and grant compensation	189,257	273,369
Changes in operating assets and liabilities:
Accounts receivable	(836,548)	4,301,148
Inventories	4,046,907	(711,559)
Other assets and liabilities, net	(369,588)	273,891
Accounts payable	2,224,755	(9,391,189)
Accrued expenses	(3,064,961)	(979,410)
Accrued income taxes	(3,081,713)	(334,748)
Net provided by continuing operating activities	2,217,701	1,288,098
Net cash used in discontinued operating activities	(538,886)	(420,204)
Net cash provided by operating activities	1,678,815	867,894
Investing activities
Purchases of property, plant and equipment	(1,740,548)	(2,796,329)
Proceeds from sale of property, plant and equipment	100,363	12,000
Cancellation of life insurance policies	1,502,283	0
Net cash used in investing activities	(137,902)	(2,784,329)
Financing activities
Net borrowings from line of credit	2,743,702	4,546,401
Payments on long-term debt	(2,239,218)	(2,433,619)
Payments of capital lease obligation	(32,736)	0
Proceeds from exercised stock options	0	8,302
Purchases of treasury stock	(253,889)	0
Net cash provided by financing activities	217,859	2,121,084
Increase in cash and cash equivalents	1,758,772	204,649
Cash and cash equivalents at beginning of period	391,424	26,623
Cash and cash equivalents at end of period	2,150,196	231,272
Interest paid	497,722	619,590
Income taxes paid	$ 875,015	$ 2,023,618

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
Basis of Presentation [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included as required by Regulation S-X, Rule 10-01. Operating results for the three and six-month periods ended June 30, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . For further information, refer to the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2015 . Accounting period On December 31, 2015, the Company elected to change its fiscal year from a 52-53 week year ending the Saturday nearest to December 31 to a calendar year ending December 31 effective with fiscal year 2015. The Company made this change prospectively and did not adjust operating results for prior periods. The second quarter of 2015 ended on July 4, 2015 and the second quarter of 2016 ended on June 30, 2016. The change of the month-end date had an insignificant effect on the financial results reported in this Form 10-Q. Reclassifications Customer discounts on accounts receivable of $158,000 were reclassifed to accrued expenses on the accompanying condensed consolidated balance sheet for the period ended December 31, 2015. This reclassification had no material effect on previously reported financial position, results of operations or shareholders' equity.

RECENTLY ADOPTED ACCOUNTING STA

RECENTLY ADOPTED ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Recently Adopted Accounting Standards	RECENTLY ISSUED ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" , which significantly modifies the recognition of impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The amendment should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. The Company did not elect to early adopt the provisions of this ASU and is currently evaluating the impact ASU 2016-09 will have on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis" , which modifies the consolidation model for reporting organizations under both the variable interest model and the voting interest model. The ASU is generally expected to reduce the number of situations where consolidation is required; however, in certain circumstances, the ASU may result in companies consolidating entities previously unconsolidated. The ASU requires all legal entities to re-evaluate previous consolidation conclusions under the revised model and is effective for periods beginning after December 15, 2015. Effective January 1, 2016, the Company adopted the provisions of this ASU. There was no effect on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which changes the presentation of debt issuance costs. This ASU requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Previously, capitalized debt issuance costs were presented as an asset on the consolidated balance sheets. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. Effective January 1, 2016, the Company adopted the provisions of this ASU and there was no material effect on the Company's consolidated financial statements. As a result of implementation, the Company reclassified unamortized debt issuance costs from "Deferred charges, net and other non-current assets" to "Long-term debt, less unamortized debt issuance costs" on the consolidated balance sheet as of June 30, 2016 and December 31, 2015. Also, amortization expense originally recorded as "Selling, general and administrative expenses" related to debt acquisition costs for the three and six-month periods ending June 30, 2016 and July 4, 2015 was reclassified as "Interest expense" on the consolidated statements of operations. In September 2015, the FASB issued ASU 2015-16, " Business Combinations (Topic 805): Simplifying the Measurement-Period Adjustments ," which requires an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This ASU requires the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. The amendments in this ASU also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Effective January 1, 2016, the Company adopted the provisions of this ASU. There was no effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting." The amendments in this updated guidance include changes to simplify the Codification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows and is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company did not elect to early adopt the provisions of this ASU and is currently evaluating the impact ASU 2016-09 will have on its consolidated financial statements.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	INVENTORIES, NET Inventories are stated at the lower of cost or market. Cost is determined by either standard, specific identification or weighted average methods. The components of inventories, net, are as follows: Jun 30, 2016 Dec 31, 2015 Raw materials $ 32,868,380 $ 34,821,694 Work-in-process 6,688,291 5,096,515 Finished goods 19,983,931 23,897,426 $ 59,540,602 $ 63,815,635

INTANGIBLE ASSETS AND DEFERRED

INTANGIBLE ASSETS AND DEFERRED CHARGES (Notes)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Policy [Policy Text Block]	INTANGIBLE ASSETS AND DEFERRED CHARGES Deferred charges and intangible assets totaled $20,572,000 at June 30, 2016 and December 31, 2015. Accumulated amortization of deferred charges and intangible assets as of June 30, 2016 and December 31, 2015 totaled $7,005,000 and $5,775,000 , respectively. Estimated amortization expense for the next five years based on existing deferred charges and intangible assets is: remainder of 2016 - $1,475,000 ; 2017 - $2,339,000 ; 2018 - $2,169,000 ; 2019 - $2,047,000 ; 2020 - $2,047,000 ; and thereafter - $3,490,000 .

STOCK OPTIONS AND RESTRICTED ST

STOCK OPTIONS AND RESTRICTED STOCK	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Employee Stock Grants	STOCK OPTIONS AND RESTRICTED STOCK During the first six months of 2016, no stock options were exercised by officers and employees of the Company. Stock compensation expense for the three and six-month periods ended June 30, 2016 was approximately $91,000 and $189,000 , respectively, while stock compensation expense for the three and six-month periods ended July 4, 2015 was approximately $130,000 and $273,000 , respectively. On February 19, 2016, the Compensation & Long-Term Incentive Committee of the Company's Board of Directors approved stock grants under the Company's 2015 Stock Awards Plan to certain management employees of the Company where 50,062 shares with a market price of $7.51 per share were granted under the Plan. The stock awards vest in 20 percent increments annually on a cumulative basis, beginning one year after the date of grant from shares held in treasury with the Company. In order for the awards to vest, the employee must be in the continuous employment of the Company since the date of the award. Any portion of an award that has not vested is forfeited upon termination of employment. The Company may terminate any portion of the award that has not vested upon an employee's failure to comply with all conditions of the award or the 2015 Stock Awards Plan. An employee is not entitled to any voting rights with respect to any shares not yet vested, and the shares are not transferable. The diluted earnings per share calculations exclude the effect of potentially dilutive shares when the inclusion of those shares in the calculation would have an anti-dilutive effect. As of June 30, 2016 and July 4, 2015 the Company had weighted average shares of common stock, in the form of stock grants and options, of 269,344 and 93,414 , respectively, which were not included in the diluted earnings per share calculation as their effect was anti-dilutive.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company is no longer subject to U.S. federal examinations for years before 2013 or state income tax examinations for years before 2011. The effective tax rate of 25 percent and 16 percent for the three and six-month periods ended June 30, 2016, respectively, was lower than the statutory rate of 34 percent primarily due to state tax expense, taxable life insurance cash surrender value gains and other permanent differences reducing the amount of tax benefit on the pre-tax loss for the year. The effective tax rate of 26 percent and 28 percent for the three and six-month periods ended July 4, 2015, respectively, was lower than the 34 percent statutory rate primarily due to a non-taxable earn-out adjustment made in the first quarter of 2015. The year over year change in the effective rate is primarily related to the Company’s change in pre-tax income, non-taxable earn-out adjustments in 2015 not recurring in 2016 and taxable life insurance cash surrender value gains. The Company accounts for income taxes for interim periods in accordance with "ASC Topic 740, Income Taxes" (“ASC 740”). ASC 740 requires the tax (or benefit) related to ordinary income (or loss) to be computed at an estimated annual effective tax rate and the tax (or benefit) related to all other items be individually computed and recognized when the items occur unless a reliable estimated annual effective tax rate cannot be calculated. Accordingly, based on forecasted pre-tax earnings compared to current year pretax activity and year to date actual permanent items, the income tax provision for the six months ended June 30, 2016 was determined based on the actual year-to-date effective tax rate because a reliable estimate of the annual effective tax rate cannot be made.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION The following table summarizes certain information regarding segments of the Company's continuing operations: Three Months Ended Six Months Ended Jun 30, 2016 Jul 4, 2015 Jun 30, 2016 Jul 4, 2015 Net sales Metals Segment $ 22,079,000 $ 33,943,000 $ 46,041,000 $ 69,404,000 Specialty Chemicals Segment 12,828,000 16,220,000 25,178,000 32,408,000 $ 34,907,000 $ 50,163,000 $ 71,219,000 $ 101,812,000 Operating (loss) income Metals Segment $ (1,649,000 ) $ 2,832,000 $ (2,421,000 ) $ 5,948,000 Specialty Chemicals Segment 1,322,000 1,566,000 2,532,000 3,026,000 (327,000 ) 4,398,000 111,000 8,974,000 Less unallocated corporate expenses 1,330,000 1,222,000 2,622,000 2,228,000 Acquisition related costs 75,000 5,000 75,000 445,000 Operating (loss) income (1,732,000 ) 3,171,000 (2,586,000 ) 6,301,000 Interest expense 268,000 321,000 549,000 698,000 Change in fair value of interest rate swap 98,000 (183,000 ) 392,000 (14,000 ) Palmer earn-out adjustment — — — (2,483,000 ) Other income — (134,000 ) — (137,000 ) (Loss) income from operations before income taxes $ (2,098,000 ) $ 3,167,000 $ (3,527,000 ) $ 8,237,000 As of Jun 30, 2016 Dec 31, 2015 Identifiable assets Metals Segment $ 108,457,000 $ 112,748,000 Specialty Chemicals Segment 32,300,000 33,391,000 Corporate 6,757,000 2,904,000 $ 147,514,000 $ 149,043,000

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company makes estimates of fair value in accounting for certain transactions, in testing and measuring impairment and in providing disclosures of fair value in its condensed consolidated financial instruments. The Company determines the fair values of its financial instruments for disclosure purposes by maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Fair value disclosures for assets and liabilities are grouped in three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are less active. Level 3 - Unobservable inputs that are supported by little or no market activity for assets or liabilities and includes certain pricing models, discounted cash flow methodologies and similar techniques. Estimates of fair value using levels 2 and 3 may require judgments as to the timing and amount of cash flows, discount rates, and other factors requiring significant judgment, and the outcomes may vary widely depending on the selection of these assumptions. The Company's most significant fair value estimates as of June 30, 2016 and December 31, 2015 related to the contingent consideration for Specialty Pipe & Tube, Inc. ("Specialty"), testing goodwill for impairment, the interest rate swaps and disclosures of the fair values of financial instruments. As of June 30, 2016 and December 31, 2015, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Company's bank debt, which are based on variable interest rates, approximate their fair value. The carrying amount for cash value of life insurance at December 31, 2015 approximates its fair value. The Company has two Level 2 financial assets and liabilities. These are classified as Level 2 as they are not actively traded and are valued using pricing models that use observable market inputs. The fair value of the interest rate swap contract entered into on August 21, 2012 was a liability of $319,000 and $40,000 at June 30, 2016 and December 31, 2015 , respectively. The fair value of the interest rate swap contract entered into on September 3, 2013 was a liability of $319,000 and $206,000 at June 30, 2016 and December 31, 2015 , respectively. The interest rate swaps were priced using discounted cash flow techniques which are corroborated by using non-binding market prices. Changes in its fair value were recorded to other income (expense) with corresponding offsetting entries to long-term assets or liabilities, as appropriate. Significant inputs to the discounted cash flow model include projected future cash flows based on projected one-month LIBOR and the average margin for companies with similar credit ratings and similar maturities. The fair value of this interest rate swap contract approximates its carrying value. The fair value of contingent consideration liabilities ("earn-out") resulting from the Palmer of Texas Tanks, Inc. ("Palmer") and Specialty acquisitions are classified as Level 3. Each quarter-end the Company re-evaluates its assumptions and adjustments to the estimated present value of the expected payments to be made, if required. The fair value of the earn-out liability to the former shareholders of Palmer was reduced to zero at April 4, 2015. Accordingly, the Company adjusted the earn-out liability and recognized a gain of approximately $2,483,000 during the first quarter of 2015. The Palmer earn-out period expired August 21, 2015. As of June 30, 2016 and December 31, 2015, based upon projected revenue levels, the estimated fair value of the earn-out liability to the former owners of Specialty was zero . There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 in the three-month period ended June 30, 2016 or year ended December 31, 2015 . During the first six months of 2016, there have been no changes in the fair value methodologies used by the Company.

FINANCING ARRANGEMENT FINANCING

FINANCING ARRANGEMENT FINANCING ARRANGEMENT	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-term Debt	FINANCING ARRANGEMENT Pursuant to the Credit Agreement in place with the Company's bank, the Company is subject to certain covenants including maintaining a certain Total Funded Debt to EBITDA ratio (as defined in the Credit Agreement), a minimum tangible net worth and a total liabilities to tangible net worth ratio. The Company is also limited to a maximum amount of capital expenditures per year, which is in line with the Company's current projected needs. At March 31, 2016, the Company was not in compliance with the Total Funded Debt to EBITDA ratio covenant. As a result, on May 4, 2016, the Company obtained a waiver from its bank which waived the breach by the Company and amended the Credit Agreement. The amendment modified the covenant definition to include the add-back of nickel price losses for any future test periods that occur and reduced the maximum revolving line of credit from $40,000,000 to $30,000,000 . At June 30, 2016, the Company was in compliance with all debt covenants.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	CONTINGENCIES The Company is from time-to-time subject to various claims, possible legal actions for product liability and other damages, and other matters arising out of the normal conduct of the Company's business. On March 11, 2016, in a suit filed by a Metals Segment customer against Synalloy Fabrication, LLC (discontinued operation), the United States District Court of Maryland (Baltimore Division) granted summary judgment regarding liability in favor of the plaintiff by ruling that an enforceable contract existed between the parties and the Company breached the agreement. As a result of this ruling, the remaining issue in the case was the amount of the plaintiff's damages. Consequently, the Company increased the facility closing liability to a level of $3,000,000 for the estimated costs associated with this claim for the year ended December 31, 2015. In June 2016, the matter was settled for damages totaling $3,100,000 . As a result, the Company increased the facility closing liability and made a payment of $2,500,000 in June 2016. The remaining balance of $600,000 is payable in September 2016 and is included in accrued expenses. The amount required to adjust the facility closing reserve as a result of the settlement is included in discontinued operations on the accompanying consolidated statements of operations. Other than the matters discussed in this note, management is not currently aware of any other asserted or unasserted matters which could have a material effect on the financial condition or results of operations of the Company.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2016
Basis of Presentation [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included as required by Regulation S-X, Rule 10-01. Operating results for the three and six-month periods ended June 30, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . For further information, refer to the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2015 .
Fiscal Period, Policy [Policy Text Block]	Accounting period On December 31, 2015, the Company elected to change its fiscal year from a 52-53 week year ending the Saturday nearest to December 31 to a calendar year ending December 31 effective with fiscal year 2015. The Company made this change prospectively and did not adjust operating results for prior periods. The second quarter of 2015 ended on July 4, 2015 and the second quarter of 2016 ended on June 30, 2016.
Reclassifications	Reclassifications Customer discounts on accounts receivable of $158,000 were reclassifed to accrued expenses on the accompanying condensed consolidated balance sheet for the period ended December 31, 2015. This reclassification had no material effect on previously reported financial position, results of operations or shareholders' equity.
Recently Adopted Accounting Standards	RECENTLY ISSUED ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" , which significantly modifies the recognition of impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The amendment should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. The Company did not elect to early adopt the provisions of this ASU and is currently evaluating the impact ASU 2016-09 will have on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis" , which modifies the consolidation model for reporting organizations under both the variable interest model and the voting interest model. The ASU is generally expected to reduce the number of situations where consolidation is required; however, in certain circumstances, the ASU may result in companies consolidating entities previously unconsolidated. The ASU requires all legal entities to re-evaluate previous consolidation conclusions under the revised model and is effective for periods beginning after December 15, 2015. Effective January 1, 2016, the Company adopted the provisions of this ASU. There was no effect on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which changes the presentation of debt issuance costs. This ASU requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Previously, capitalized debt issuance costs were presented as an asset on the consolidated balance sheets. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. Effective January 1, 2016, the Company adopted the provisions of this ASU and there was no material effect on the Company's consolidated financial statements. As a result of implementation, the Company reclassified unamortized debt issuance costs from "Deferred charges, net and other non-current assets" to "Long-term debt, less unamortized debt issuance costs" on the consolidated balance sheet as of June 30, 2016 and December 31, 2015. Also, amortization expense originally recorded as "Selling, general and administrative expenses" related to debt acquisition costs for the three and six-month periods ending June 30, 2016 and July 4, 2015 was reclassified as "Interest expense" on the consolidated statements of operations. In September 2015, the FASB issued ASU 2015-16, " Business Combinations (Topic 805): Simplifying the Measurement-Period Adjustments ," which requires an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This ASU requires the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. The amendments in this ASU also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Effective January 1, 2016, the Company adopted the provisions of this ASU. There was no effect on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting." The amendments in this updated guidance include changes to simplify the Codification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows and is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company did not elect to early adopt the provisions of this ASU and is currently evaluating the impact ASU 2016-09 will have on its consolidated financial statements.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of components of inventories	Inventories are stated at the lower of cost or market. Cost is determined by either standard, specific identification or weighted average methods. The components of inventories, net, are as follows: Jun 30, 2016 Dec 31, 2015 Raw materials $ 32,868,380 $ 34,821,694 Work-in-process 6,688,291 5,096,515 Finished goods 19,983,931 23,897,426 $ 59,540,602 $ 63,815,635

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	Three Months Ended Six Months Ended Jun 30, 2016 Jul 4, 2015 Jun 30, 2016 Jul 4, 2015 Net sales Metals Segment $ 22,079,000 $ 33,943,000 $ 46,041,000 $ 69,404,000 Specialty Chemicals Segment 12,828,000 16,220,000 25,178,000 32,408,000 $ 34,907,000 $ 50,163,000 $ 71,219,000 $ 101,812,000 Operating (loss) income Metals Segment $ (1,649,000 ) $ 2,832,000 $ (2,421,000 ) $ 5,948,000 Specialty Chemicals Segment 1,322,000 1,566,000 2,532,000 3,026,000 (327,000 ) 4,398,000 111,000 8,974,000 Less unallocated corporate expenses 1,330,000 1,222,000 2,622,000 2,228,000 Acquisition related costs 75,000 5,000 75,000 445,000 Operating (loss) income (1,732,000 ) 3,171,000 (2,586,000 ) 6,301,000 Interest expense 268,000 321,000 549,000 698,000 Change in fair value of interest rate swap 98,000 (183,000 ) 392,000 (14,000 ) Palmer earn-out adjustment — — — (2,483,000 ) Other income — (134,000 ) — (137,000 ) (Loss) income from operations before income taxes $ (2,098,000 ) $ 3,167,000 $ (3,527,000 ) $ 8,237,000 As of Jun 30, 2016 Dec 31, 2015 Identifiable assets Metals Segment $ 108,457,000 $ 112,748,000 Specialty Chemicals Segment 32,300,000 33,391,000 Corporate 6,757,000 2,904,000 $ 147,514,000 $ 149,043,000

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 32,868,380	$ 34,821,694
Work-in-process	6,688,291	5,096,515
Finished goods	19,983,931	23,897,426
Inventories, net	$ 59,540,602	$ 63,815,635

INTANGIBLE ASSETS AND DEFERRE20

INTANGIBLE ASSETS AND DEFERRED CHARGES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Intangible Assets and Deferred Charges [Abstract]
Intangible Assets, (Excluding Goodwill), Including Deferred Charges	$ 20,572,000	$ 20,572,000
Finite-Lived Intangibles Assets, Including Deferred Charges, Accumulated Amortization	7,005,000	$ 5,775,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	1,475,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	2,339,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	2,169,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	2,047,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	2,047,000
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$ 3,490,000

STOCK OPTIONS AND RESTRICTED 21

STOCK OPTIONS AND RESTRICTED STOCK (Details) - USD ($)	Feb. 19, 2016	Jun. 30, 2016	Jul. 04, 2015	Jun. 30, 2016	Jul. 04, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 91,000	$ 130,000	$ 189,000	$ 273,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				269,344	93,414
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised (shares)				0
2015 Stock Awards Plan [Member] | Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting rate (percent)	20.00%
Period after option grant before options can be exercised (years)	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	50,062
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 7.51

INCOME TAXES Income Taxes (Deta

INCOME TAXES Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jul. 04, 2015	Jun. 30, 2016	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	25.00%	26.00%	16.00%	28.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			34.00%	34.00%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jul. 04, 2015	Jun. 30, 2016	Jul. 04, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 34,906,668	$ 50,163,448	$ 71,218,680	$ 101,811,693
Operating (loss) income	(327,000)	4,398,000	111,000	8,974,000
Operating (loss) income	(1,732,065)	3,170,307	(2,585,848)	6,300,961
Acquisition related costs	75,000	4,770	75,057	445,046
Change in fair value of interest rate swaps	98,187	(183,337)	391,840	(13,917)
Palmer earn-out adjustment	0	0	0	(2,483,333)
(Loss) income before income taxes	(2,098,395)	3,167,285	(3,527,127)	8,237,024
Assets	147,514,451		147,514,451		$ 149,043,490
Metals Segment [Member]
Segment Reporting Information [Line Items]
Net sales	22,079,000	33,943,000	46,041,000	69,404,000
Operating (loss) income	(1,649,000)	2,832,000	(2,421,000)	5,948,000
Assets	108,457,000		108,457,000		112,748,000
Specialty Chemicals Segment [Member]
Segment Reporting Information [Line Items]
Net sales	12,828,000	16,220,000	25,178,000	32,408,000
Operating (loss) income	1,322,000	1,566,000	2,532,000	3,026,000
Assets	32,300,000		32,300,000		33,391,000
Corporate [Member]
Segment Reporting Information [Line Items]
Operating (loss) income	(1,732,000)	3,171,000	(2,586,000)	6,301,000
Less unallocated corporate expenses	1,330,000	1,222,000	2,622,000	2,228,000
Acquisition related costs	75,000	5,000	75,000	445,000
Interest expense	268,000	321,000	549,000	698,000
Change in fair value of interest rate swaps	98,000	(183,000)	392,000	(14,000)
Palmer earn-out adjustment	0	0	0	(2,483,000)
Other Income	0	(134,000)	0	(137,000)
(Loss) income before income taxes	(2,098,000)	3,167,000	(3,527,000)	8,237,000
Assets	6,757,000		6,757,000		$ 2,904,000
Operating Segment [Member]
Segment Reporting Information [Line Items]
Net sales	$ 34,907,000	$ 50,163,000	$ 71,219,000	$ 101,812,000

FAIR VALUE OF FINANCIAL INSTR24

FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Apr. 04, 2015	Jun. 30, 2016	Dec. 31, 2015
Palmer of Texas [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	$ 0
Change in fair value of contingent consideration liability	$ 2,483,000
Specialty Pipe And Tube, Inc. [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value		$ 0	$ 0
Term Loan [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Variable rate basis on interest rate swap		LIBOR
Term Loan [Member] | Palmer of Texas [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of interest rate swap, liability		$ 319,000	40,000
Term Loan [Member] | Color Resources, LLC [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of interest rate swap, liability		$ 319,000	$ 206,000

ACQUISITION (Narrative) (Detail

ACQUISITION (Narrative) (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 1,354,730	$ 1,354,730

FINANCING ARRANGEMENT (Details)

FINANCING ARRANGEMENT (Details) - USD ($)	May 04, 2016	Nov. 21, 2014
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 30,000,000	$ 40,000,000

CONTINGENCIES Commitments and C

CONTINGENCIES Commitments and Contingencies (Details) - Metals Segment Customer Breach of Contract Case [Member] - USD ($)	Jun. 20, 2016	Sep. 30, 2014	Jun. 30, 2016
Settled Litigation [Member]
Product Liability Contingency [Line Items]
Loss Contingency, Damages Sought, Value	$ 3,100,000
Loss Contingency, Damages Paid, Value			$ 2,500,000
Loss Contingency Accrual			$ 600,000
Pending Litigation [Member]
Product Liability Contingency [Line Items]
Loss Contingency, Damages Sought, Value		$ 3,000,000