☑
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended October 1, 2017
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __________ to __________
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Nevada
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65-1005398
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(State or Other Jurisdiction of Organization)
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(IRS Employer Identification Number)
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Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☐ (Do not check if smaller reporting company)
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Smaller reporting company ☑
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Emerging growth company ☐
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Page
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Cautionary Note Regarding Forward-Looking Statements
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PART I. FINANCIAL INFORMATION
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|||
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Item 1.
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4 | |
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5 | |
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6 | |
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7 | |
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8 | |
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9 | |
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Item 2.
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17
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Item 3.
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22 | |
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Item 4.
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22 | |
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PART II. OTHER INFORMATION
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Item 1.
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24 | |
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Item 1A.
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24 | |
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Item 2.
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24 | |
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Item 3.
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24 | |
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Item 4.
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24 | |
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Item 5.
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24 | |
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Item 6.
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25
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25 |
Uniroyal Global Engineered Products, Inc.
|
|||||
(Unaudited)
|
||||||||
ASSETS
|
October 1, 2017
|
January 1, 2017
|
||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
1,751,129
|
$
|
1,321,586
|
||||
Accounts receivable, net
|
15,216,420
|
14,555,463
|
||||||
Inventories, net
|
21,289,279
|
17,046,171
|
||||||
Other current assets
|
694,922
|
1,183,932
|
||||||
Related party receivable
|
56,115
|
25,456
|
||||||
Total Current Assets
|
39,007,865
|
34,132,608
|
||||||
PROPERTY AND EQUIPMENT, NET
|
15,295,342
|
13,611,494
|
||||||
OTHER ASSETS
|
||||||||
Intangible assets
|
3,281,461
|
3,133,564
|
||||||
Goodwill
|
1,079,175
|
1,079,175
|
||||||
Other long-term assets
|
7,023,981
|
6,665,375
|
||||||
Total Other Assets
|
11,384,617
|
10,878,114
|
||||||
TOTAL ASSETS
|
$
|
65,687,824
|
$
|
58,622,216
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Checks issued in excess of bank balance
|
$
|
829,573
|
$
|
679,494
|
||||
Lines of credit
|
19,833,352
|
16,799,592
|
||||||
Current maturities of long-term debt
|
1,021,491
|
851,988
|
||||||
Current maturities of capital lease obligations
|
399,205
|
368,718
|
||||||
Accounts payable
|
9,628,261
|
7,331,213
|
||||||
Accrued expenses and other liabilities
|
4,361,076
|
3,645,526
|
||||||
Related party obligation
|
375,029
|
371,161
|
||||||
Current portion of postretirement benefit liability - health and life
|
158,527
|
158,527
|
||||||
Total Current Liabilities
|
36,606,514
|
30,206,219
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Long-term debt, less current portion
|
2,032,932
|
1,994,910
|
||||||
Capital lease obligations, less current portion
|
629,262
|
856,171
|
||||||
Related party lease financing obligation
|
2,155,914
|
2,162,151
|
||||||
Long-term debt to related parties
|
2,551,271
|
2,826,907
|
||||||
Postretirement benefit liability - health and life, less current portion
|
2,872,491
|
2,883,684
|
||||||
Other long-term liabilities
|
640,306
|
792,027
|
||||||
Total Long-Term Liabilities
|
10,882,176
|
11,515,850
|
||||||
Total Liabilities
|
47,488,690
|
41,722,069
|
||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred units, Series A UEP Holdings, LLC, 200,000 units issued
and outstanding ($100 issue price) |
617,571
|
617,571
|
||||||
Preferred units, Series B UEP Holdings, LLC, 150,000 units issued
and outstanding ($100 issue price) |
463,179
|
463,179
|
||||||
Preferred stock, Uniroyal Global (Europe) Limited, 50 shares
issued and outstanding ($1.51 stated value) |
75
|
75
|
||||||
Common stock, 95,000,000 shares authorized ($.001 par value)
18,698,030 and 18,727,782 shares issued and outstanding as of October 1, 2017 and January 1, 2017, respectively |
18,698
|
18,728
|
||||||
Additional paid-in capital
|
34,862,739
|
34,653,894
|
||||||
Accumulated deficit
|
(16,967,125
|
)
|
(17,174,814
|
)
|
||||
Accumulated other comprehensive loss
|
(796,003
|
)
|
(1,678,486
|
)
|
||||
Total Stockholders' Equity
|
18,199,134
|
16,900,147
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
65,687,824
|
$
|
58,622,216
|
Uniroyal Global Engineered Products, Inc.
|
|||||||||||
(Unaudited)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
October 1, 2017
|
October 2, 2016
|
October 1, 2017
|
October 2, 2016
|
|||||||||||||
NET SALES
|
$
|
22,498,456
|
$
|
24,675,521
|
$
|
74,334,434
|
$
|
76,976,985
|
||||||||
COST OF GOODS SOLD
|
18,310,782
|
19,325,342
|
59,434,030
|
59,241,192
|
||||||||||||
Gross Profit
|
4,187,674
|
5,350,179
|
14,900,404
|
17,735,793
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Selling
|
1,285,822
|
1,238,035
|
3,896,166
|
4,011,017
|
||||||||||||
General and administrative
|
1,543,689
|
1,830,932
|
5,294,935
|
6,051,854
|
||||||||||||
Research and development
|
483,221
|
412,854
|
1,454,179
|
1,316,696
|
||||||||||||
OPERATING EXPENSES
|
3,312,732
|
3,481,821
|
10,645,280
|
11,379,567
|
||||||||||||
Operating Income
|
874,942
|
1,868,358
|
4,255,124
|
6,356,226
|
||||||||||||
OTHER EXPENSE:
|
||||||||||||||||
Interest and other debt related expense
|
(418,698
|
)
|
(394,401
|
)
|
(1,217,348
|
)
|
(1,232,814
|
)
|
||||||||
Other expense
|
(115,482
|
)
|
(17,015
|
)
|
(108,607
|
)
|
(279,075
|
)
|
||||||||
Net Other Expense
|
(534,180
|
)
|
(411,416
|
)
|
(1,325,955
|
)
|
(1,511,889
|
)
|
||||||||
INCOME BEFORE TAX PROVISION
|
340,762
|
1,456,942
|
2,929,169
|
4,844,337
|
||||||||||||
TAX PROVISION
|
65,170
|
156,898
|
491,099
|
484,798
|
||||||||||||
NET INCOME
|
275,592
|
1,300,044
|
2,438,070
|
4,359,539
|
||||||||||||
Preferred stock dividend
|
(753,145
|
)
|
(722,029
|
)
|
(2,230,381
|
)
|
(2,165,695
|
)
|
||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS |
$
|
(477,553
|
)
|
$
|
578,015
|
$
|
207,689
|
$
|
2,193,844
|
|||||||
EARNINGS (LOSS) PER COMMON SHARE:
|
||||||||||||||||
Basic
|
$
|
(0.03
|
)
|
$
|
0.03
|
$
|
0.01
|
$
|
0.12
|
|||||||
Diluted
|
$
|
(0.03
|
)
|
$
|
0.03
|
$
|
0.01
|
$
|
0.12
|
|||||||
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
18,698,030
|
18,828,292
|
18,708,427
|
18,843,440
|
||||||||||||
Diluted
|
18,698,030
|
18,893,936
|
18,794,087
|
18,909,085
|
Uniroyal Global Engineered Products, Inc.
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
October 1, 2017
|
October 2, 2016
|
October 1, 2017
|
October 2, 2016
|
|||||||||||||
NET INCOME
|
$
|
275,592
|
$
|
1,300,044
|
$
|
2,438,070
|
$
|
4,359,539
|
||||||||
OTHER COMPREHENSIVE INCOME (LOSS):
|
||||||||||||||||
Minimum benefit liability adjustment
|
-
|
(1,173
|
)
|
-
|
(3,519
|
)
|
||||||||||
Foreign currency translation adjustment
|
340,329
|
(213,582
|
)
|
882,483
|
(1,132,786
|
)
|
||||||||||
OTHER COMPREHENSIVE INCOME (LOSS)
|
340,329
|
(214,755
|
)
|
882,483
|
(1,136,305
|
)
|
||||||||||
COMPREHENSIVE INCOME
|
615,921
|
1,085,289
|
3,320,553
|
3,223,234
|
||||||||||||
Preferred stock dividend
|
(753,145
|
)
|
(722,029
|
)
|
(2,230,381
|
)
|
(2,165,695
|
)
|
||||||||
COMPREHENSIVE INCOME (LOSS) TO
COMMON SHAREHOLDERS
|
$
|
(137,224
|
)
|
$
|
363,260
|
$
|
1,090,172
|
$
|
1,057,539
|
Uniroyal Global Engineered Products, Inc.
|
|||||||||||||||||||||||
For the Nine Months Ended October 1, 2017
|
|||||||||||||||||||||||
(Unaudited)
|
Accumulated
|
||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive
|
||||||||||||||||||||||||||||||||||||||||||||||||
UEPH Series A
|
UEPH Series B
|
EPAL Preferred
|
Common Stock
|
Additional
|
Accumulated
|
Income
|
Total
|
|||||||||||||||||||||||||||||||||||||||||
Units
|
Amount
|
Units
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Paid In Capital
|
Deficit
|
(Loss)
|
Equity
|
|||||||||||||||||||||||||||||||||||||
Balance January 1, 2017
|
200,000
|
$
|
617,571
|
150,000
|
$
|
463,179
|
50
|
$
|
75
|
18,727,782
|
$
|
18,728
|
$
|
34,653,894
|
$
|
(17,174,814
|
)
|
$
|
(1,678,486
|
)
|
$
|
16,900,147
|
||||||||||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,438,070
|
-
|
2,438,070
|
||||||||||||||||||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
882,483
|
882,483
|
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
308,655
|
-
|
-
|
308,655
|
||||||||||||||||||||||||||||||||||||
Treasury shares, purchased at cost and
retired
|
-
|
-
|
-
|
-
|
-
|
-
|
(29,752
|
)
|
(30
|
)
|
(99,810
|
)
|
-
|
-
|
(99,840
|
)
|
||||||||||||||||||||||||||||||||
Preferred stock dividend
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,230,381
|
)
|
-
|
(2,230,381
|
)
|
||||||||||||||||||||||||||||||||||
Balance October 1, 2017
|
200,000
|
$
|
617,571
|
150,000
|
$
|
463,179
|
50
|
$
|
75
|
18,698,030
|
$
|
18,698
|
$
|
34,862,739
|
$
|
(16,967,125
|
)
|
$
|
(796,003
|
)
|
$
|
18,199,134
|
Uniroyal Global Engineered Products, Inc.
|
|||||
(Unaudited)
|
Nine Months Ended
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
October 1, 2017
|
October 2, 2016
|
||||||
Net income
|
$
|
2,438,070
|
$
|
4,359,539
|
||||
Adjustments to reconcile net income to net cash flows from operating activities:
|
||||||||
Depreciation
|
1,330,957
|
1,294,802
|
||||||
Stock-based compensation expense
|
308,655
|
277,939
|
||||||
Amortization of intangible assets
|
15,003
|
15,003
|
||||||
Loss on disposal of property and equipment
|
10,863
|
2,926
|
||||||
Noncash postemployment health and life benefit
|
-
|
(3,519
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
118,162
|
(2,473,517
|
)
|
|||||
Inventories
|
(3,534,845
|
)
|
(528,226
|
)
|
||||
Other current assets
|
547,933
|
455,875
|
||||||
Related party receivable
|
26,426
|
71,422
|
||||||
Other long-term assets
|
(35,560
|
)
|
(95,042
|
)
|
||||
Accounts payable
|
1,835,573
|
1,055,517
|
||||||
Accrued expenses and other liabilities
|
490,680
|
598,276
|
||||||
Postretirement benefit liability - health and life
|
(11,193
|
)
|
(97
|
)
|
||||
Other long-term liabilities
|
(207,133
|
)
|
102,166
|
|||||
Cash provided by operating activities
|
3,333,591
|
5,133,064
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(1,588,485
|
)
|
(1,236,069
|
)
|
||||
Net payments on life insurance policies
|
(316,671
|
)
|
(250,201
|
)
|
||||
Cash used in investing activities
|
(1,905,156
|
)
|
(1,486,270
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Checks issued in excess of bank balance, net
|
150,079
|
289,250
|
||||||
Net advances on line of credit
|
2,029,826
|
220,428
|
||||||
Payments on long-term debt
|
(418,712
|
)
|
(231,964
|
)
|
||||
Payments on capital lease obligations
|
(289,189
|
)
|
(343,647
|
)
|
||||
Payments on related party obligation
|
(278,004
|
)
|
(1,361,445
|
)
|
||||
Payment of preferred stock dividends
|
(2,204,199
|
)
|
(2,147,408
|
)
|
||||
Purchase and retirement of treasury stock
|
(99,840
|
)
|
(274,074
|
)
|
||||
Cash used in financing activities
|
(1,110,039
|
)
|
(3,848,860
|
)
|
||||
Net change in cash and cash equivalents
|
318,396
|
(202,066
|
)
|
|||||
Cash and cash equivalents - beginning of period
|
1,321,586
|
1,910,112
|
||||||
Effects of currency translation on cash and cash equivalents
|
111,147
|
(150,160
|
)
|
|||||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
1,751,129
|
$
|
1,557,886
|
1.
|
Basis of Presentation
|
2.
|
Noncash Transactions and Supplemental Disclosure of Cash Flow Information
|
Nine Months Ended
|
|||||||
|
October 1, 2017
|
October 2, 2016
|
|||||
|
|||||||
Interest
|
$
|
1,212,910
|
$
|
1,236,465
|
|||
Tax payments
|
$
|
-
|
$
|
-
|
3.
|
Derivatives
|
4.
|
Fair Value of Financial Instruments
|
5.
|
Foreign Currency Translation
|
6.
|
Inventories
|
|
October 1, 2017
|
January 1, 2017
|
||||||
|
||||||||
Raw materials
|
$
|
6,180,471
|
$
|
5,199,632
|
||||
Work-in-process
|
5,305,440
|
4,491,250
|
||||||
Finished goods
|
11,223,336
|
8,669,625
|
||||||
|
22,709,247
|
18,360,507
|
||||||
Less: Allowance for inventory obsolescence
|
(1,419,968
|
)
|
(1,314,336
|
)
|
||||
|
||||||||
Total Inventories
|
$
|
21,289,279
|
$
|
17,046,171
|
7.
|
Other Long-term Assets
|
|
October 1, 2017
|
January 1, 2017
|
||||||
|
||||||||
Non-current deferred tax asset
|
$
|
5,684,424
|
$
|
5,689,000
|
||||
Other
|
1,339,557
|
976,375
|
||||||
|
||||||||
Total Other Long-term Assets
|
$
|
7,023,981
|
$
|
6,665,375
|
8.
|
Other Long-term Liabilities
|
|
October 1, 2017
|
January 1, 2017
|
||||||
|
||||||||
Non-current deferred tax liability
|
$
|
605,004
|
$
|
743,971
|
||||
Other
|
35,302
|
48,056
|
||||||
|
||||||||
Total Other Long-term Liabilities
|
$
|
640,306
|
$
|
792,027
|
9.
|
Lines of Credit
|
10.
|
Long-term Debt
|
|
Interest Rate
|
October 1, 2017
|
January 1, 2017
|
||||||||||
|
|||||||||||||
Wells Fargo Capital Finance LLC
|
Prime
|
$
|
866,825
|
$
|
1,089,721
|
||||||||
Lloyds Bank Commercial Finance Limited
|
LIBOR + 3.15%
|
121,392
|
181,392
|
||||||||||
Kennet Equipment Leasing Limited
|
10.90%
|
733,923
|
801,153
|
||||||||||
Balboa Capital Corporation
|
5.72%
|
108,895
|
213,230
|
||||||||||
Regents Capital Corporation
|
7.40%
|
|
267,974
|
350,000
|
|||||||||
De Lage Landen Financial Services
|
7.35%
|
|
102,256
|
118,073
|
|||||||||
Ford Motor Credit
|
4.30%
|
|
38,800
|
44,387
|
|||||||||
Byline Financial Group
|
8.56%
|
|
33,659
|
48,942
|
|||||||||
Regents Capital Corporation
|
6.20%
|
|
299,719
|
-
|
|||||||||
Regents Capital Corporation
|
6.47%
|
|
321,584
|
-
|
|||||||||
Regents Capital Corporation
|
6.50%
|
|
159,396
|
-
|
|||||||||
|
3,054,423
|
2,846,898
|
|||||||||||
Current portion
|
(1,021,491
|
)
|
(851,988
|
)
|
|||||||||
|
$
|
2,032,932
|
$
|
1,994,910
|
11.
|
Related Party Obligations
|
|
Interest Rate
|
October 1, 2017
|
January 1, 2017
|
|||||||||
|
||||||||||||
Senior subordinated promissory note
|
9.25%
|
$
|
2,000,000
|
$
|
2,000,000
|
|||||||
Senior secured promissory note
|
10.00%
|
918,785
|
1,194,421
|
|||||||||
|
2,918,785
|
3,194,421
|
||||||||||
Current portion
|
(367,514
|
)
|
(367,514
|
)
|
||||||||
|
$
|
2,551,271
|
$
|
2,826,907
|
|
October 1, 2017
|
January 1, 2017
|
||||||
|
||||||||
Related party lease financing obligation
|
$
|
2,163,429
|
$
|
2,165,798
|
||||
Less: current portion
|
(7,515
|
)
|
(3,647
|
)
|
||||
|
||||||||
Long-term Portion
|
$
|
2,155,914
|
$
|
2,162,151
|
October 1, 2017
|
January 1, 2017
|
|||||||
Current portion of long-term debt to related parties
|
$
|
367,514
|
$
|
367,514
|
||||
Current portion of related party lease financing obligation
|
7,515
|
3,647
|
||||||
Related Party Obligation
|
$
|
375,029
|
$
|
371,161
|
12.
|
Capital Leases
|
|
October 1, 2017
|
January 1, 2017
|
||||||
|
||||||||
Capital lease obligations
|
$
|
1,028,467
|
$
|
1,224,889
|
||||
Less: current portion
|
(399,205
|
)
|
(368,718
|
)
|
||||
|
||||||||
Long-term Portion
|
$
|
629,262
|
$
|
856,171
|
13.
|
Accumulated Other Comprehensive Loss
|
|
Minimum
Benefit
Liability
Adjustments
|
Foreign
Currency
Translation
Adjustment
|
Total
|
|||||||||
|
||||||||||||
Balance at January 1, 2017
|
$
|
233,877
|
$
|
(1,912,363
|
)
|
$
|
(1,678,486
|
)
|
||||
|
||||||||||||
Other comprehensive losses before
reclassifications, net
|
-
|
882,483
|
882,483
|
|||||||||
|
||||||||||||
Balance at October 1, 2017
|
$
|
233,877
|
$
|
(1,029,880
|
)
|
$
|
(796,003
|
)
|
Other Comprehensive Income (Loss)
Component
|
|
Income Statement Line Item
|
|
|
|
Minimum Benefit Liability Adjustments
|
|
General and administrative expense
|
14.
|
Stock Option Plan
|
Stock Options
|
||||||||||||||||||||||||
Total
|
Weighted
Average
Exercise
Price
|
Exercisable
|
Weighted
Average
Exercise
Price
|
Non-Vested
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding at January 3, 2016
|
665,000
|
$
|
2.37
|
-
|
$
|
-
|
665,000
|
$
|
2.37
|
|||||||||||||||
Granted
|
360,250
|
3.57
|
-
|
-
|
360,250
|
3.57
|
||||||||||||||||||
Vested
|
-
|
-
|
230,001
|
2.37
|
(230,001
|
)
|
2.37
|
|||||||||||||||||
Exercised
|
(5,000
|
)
|
2.37
|
(5,000
|
)
|
2.37
|
-
|
-
|
||||||||||||||||
Forfeited or cancelled
|
(15,000
|
)
|
2.77
|
-
|
-
|
(15,000
|
)
|
2.77
|
||||||||||||||||
Outstanding at October 2, 2016
|
1,005,250
|
$
|
2.79
|
225,001
|
$
|
2.37
|
780,249
|
$
|
2.92
|
|||||||||||||||
Outstanding at January 1, 2017
|
997,750
|
$
|
2.80
|
217,501
|
$
|
2.37
|
780,249
|
$
|
2.92
|
|||||||||||||||
Granted
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Vested
|
-
|
-
|
330,913
|
2.80
|
(330,913
|
)
|
2.80
|
|||||||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Forfeited or cancelled
|
(10,000
|
)
|
2.97
|
(6,667
|
)
|
2.67
|
(3,333
|
)
|
3.57
|
|||||||||||||||
Outstanding October 1, 2017
|
987,750
|
$
|
2.80
|
541,747
|
$
|
2.63
|
446,003
|
$
|
3.00
|
|||||||||||||||
Aggregate Intrinsic Value
|
||||||||||||||||||||||||
October 2, 2016
|
$
|
487,500
|
$
|
168,751
|
$
|
318,749
|
||||||||||||||||||
Aggregate Intrinsic Value
|
$
|
51,000
|
$
|
34,000
|
$
|
17,000
|
||||||||||||||||||
October 1, 2017
|
15.
|
Recent Accounting Pronouncements
|
16.
|
Earnings per Common Share
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
October 1, 2017
|
October 2, 2016
|
October 1, 2017
|
October 2, 2016
|
|||||||||||||
Numerator
|
||||||||||||||||
Net income (loss)
available to common
shareholders
|
$
|
(477,553
|
)
|
$
|
578,015
|
$
|
207,689
|
$
|
2,193,844
|
|||||||
Denominator
|
||||||||||||||||
Denominator for basic
earnings per share -
weighted average shares
outstanding
|
18,698,030
|
18,828,292
|
18,708,427
|
18,843,440
|
||||||||||||
Weighted average effect
of dilutive securities
|
-
|
65,644
|
85,660
|
65,645
|
||||||||||||
Denominator for dilutive
earnings per share -
weighted average shares
outstanding
|
18,698,030
|
18,893,936
|
18,794,087
|
18,909,085
|
||||||||||||
Basic and Diluted Income
(Loss) Per Share
|
||||||||||||||||
Net income (loss)
available to common
shareholders
|
$
|
(0.03
|
)
|
$
|
0.03
|
$
|
0.01
|
$
|
0.12
|
|||||||
Effect of dilutive
securities
|
-
|
-
|
-
|
-
|
||||||||||||
Net income (loss)
available to common
shareholders
|
$
|
(0.03
|
)
|
$
|
0.03
|
$
|
0.01
|
$
|
0.12
|
17.
|
Subsequent Events
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three Months Ended
|
||||||||||||||||||||||||
October 1, 2017
|
October 2, 2016
|
Change
|
% Change
|
|||||||||||||||||||||
Net Sales
|
$
|
22,498,456
|
100.0
|
%
|
$
|
24,675,521
|
100.0
|
%
|
$
|
(2,177,065
|
)
|
-8.8
|
%
|
|||||||||||
Cost of Sales
|
18,310,782
|
81.4
|
%
|
19,325,342
|
78.3
|
%
|
(1,014,560
|
)
|
-5.2
|
%
|
||||||||||||||
Gross Profit
|
4,187,674
|
18.6
|
%
|
5,350,179
|
21.7
|
%
|
(1,162,505
|
)
|
-21.7
|
%
|
||||||||||||||
Other Expenses:
|
||||||||||||||||||||||||
Selling
|
1,285,822
|
5.7
|
%
|
1,238,035
|
5.0
|
%
|
47,787
|
3.9
|
%
|
|||||||||||||||
General and administrative
|
1,543,689
|
6.9
|
%
|
1,830,932
|
7.4
|
%
|
(287,243
|
)
|
-15.7
|
%
|
||||||||||||||
Research and development
|
483,221
|
2.1
|
%
|
412,854
|
1.7
|
%
|
70,367
|
17.0
|
%
|
|||||||||||||||
Total operating expenses
|
3,312,732
|
14.7
|
%
|
3,481,821
|
14.1
|
%
|
(169,089
|
)
|
-4.9
|
%
|
||||||||||||||
Operating Income
|
874,942
|
3.9
|
%
|
1,868,358
|
7.6
|
%
|
(993,416
|
)
|
-53.2
|
%
|
||||||||||||||
Interest expense
|
(418,698
|
)
|
-1.9
|
%
|
(394,401
|
)
|
-1.6
|
%
|
(24,297
|
)
|
6.2
|
%
|
||||||||||||
Other expense
|
(115,482
|
)
|
-0.5
|
%
|
(17,015
|
)
|
-0.1
|
%
|
(98,467
|
)
|
>100
|
% | ||||||||||||
Income before taxes
|
340,762
|
1.5
|
%
|
1,456,942
|
5.9
|
%
|
(1,116,180
|
)
|
-76.6
|
%
|
||||||||||||||
Tax provision
|
65,170
|
0.3
|
%
|
156,898
|
0.6
|
%
|
(91,728
|
)
|
-58.5
|
%
|
||||||||||||||
Net income
|
275,592
|
1.2
|
%
|
1,300,044
|
5.3
|
%
|
(1,024,452
|
)
|
-78.8
|
%
|
||||||||||||||
Preferred dividends
|
(753,145
|
)
|
-3.3
|
%
|
(722,029
|
)
|
-2.9
|
%
|
(31,116
|
)
|
4.3
|
%
|
||||||||||||
Net income (loss) available to
common shareholders
|
$
|
(477,553
|
)
|
-2.1
|
%
|
$
|
578,015
|
2.3
|
%
|
$
|
(1,055,568
|
)
|
<-100%
|
Nine Months Ended
|
||||||||||||||||||||||||
October 1, 2017
|
October 2, 2016
|
Change
|
% Change
|
|||||||||||||||||||||
Net Sales
|
$
|
74,334,434
|
100.0
|
%
|
$
|
76,976,985
|
100.0
|
%
|
$ |
(2,642,551
|
)
|
-3.4
|
%
|
|||||||||||
Cost of Sales
|
59,434,030
|
80.0
|
%
|
59,241,192
|
77.0
|
%
|
192,838
|
0.3
|
%
|
|||||||||||||||
Gross Profit
|
14,900,404
|
20.0
|
%
|
17,735,793
|
23.0
|
%
|
(2,835,389
|
)
|
-16.0
|
%
|
||||||||||||||
Other Expenses:
|
||||||||||||||||||||||||
Selling
|
3,896,166
|
5.2
|
%
|
4,011,017
|
5.2
|
%
|
(114,851
|
)
|
-2.9
|
%
|
||||||||||||||
General and administrative
|
5,294,935
|
7.1
|
%
|
6,051,854
|
7.9
|
%
|
(756,919
|
)
|
-12.5
|
%
|
||||||||||||||
Research and development
|
1,454,179
|
2.0
|
%
|
1,316,696
|
1.7
|
%
|
137,483
|
10.4
|
%
|
|||||||||||||||
Total operating expenses
|
10,645,280
|
14.3
|
%
|
11,379,567
|
14.8
|
%
|
(734,287
|
)
|
-6.5
|
%
|
||||||||||||||
Operating Income
|
4,255,124
|
5.7
|
%
|
6,356,226
|
8.3
|
%
|
(2,101,102
|
)
|
-33.1
|
%
|
||||||||||||||
Interest expense
|
(1,217,348
|
)
|
-1.6
|
%
|
(1,232,814
|
)
|
-1.6
|
%
|
15,466
|
-1.3
|
%
|
|||||||||||||
Other expense
|
(108,607
|
)
|
-0.1
|
%
|
(279,075
|
)
|
-0.4
|
%
|
170,468
|
-61.1
|
%
|
|||||||||||||
Income before taxes
|
2,929,169
|
3.9
|
%
|
4,844,337
|
6.3
|
%
|
(1,915,168
|
)
|
-39.5
|
%
|
||||||||||||||
Tax provision
|
491,099
|
0.7
|
%
|
484,798
|
0.6
|
%
|
6,301
|
1.3
|
%
|
|||||||||||||||
Net income
|
2,438,070
|
3.3
|
%
|
4,359,539
|
5.7
|
%
|
(1,921,469
|
)
|
-44.1
|
%
|
||||||||||||||
Preferred dividends
|
(2,230,381
|
)
|
-3.0
|
%
|
(2,165,695
|
)
|
-2.8
|
%
|
(64,686
|
)
|
3.0
|
%
|
||||||||||||
Net income available to
common shareholders
|
$
|
207,689
|
0.3
|
%
|
$
|
2,193,844
|
2.8
|
%
|
$
|
(1,986,155
|
)
|
-90.5
|
%
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
PART II.
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
(a)
|
Exhibits.
|
Exhibit No.
|
|
Description
|
|
|
|
31.1 *
|
|
|
31.2 *
|
|
|
32.1 *
|
|
|
32.2 *
|
|
|
101.INS * +
|
|
XBRL Instance Document
|
101.CAL * +
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF * +
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB * +
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE * +
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.SCH * +
|
|
XBRL Taxonomy Extension Schema Document
|
*
|
Filed herewith.
|
+
|
In accordance with Rule 406T of Regulation S-T, this information is deemed not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
|
|
UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC.
|
|
|
|
|
|
|
|
|
|
|
Dated: November 6, 2017
|
By:
|
/s/ Howard R. Curd
|
|
|
|
Howard R. Curd
Chief Executive Officer
|
|
|
|
|
|
Dated: November 6, 2017
|
By:
|
/s/ Edmund C. King
|
|
|
|
Edmund C. King
Chief Financial Officer
|
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer ’s internal control over financial reporting.
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
Date: November 6, 2017
|
/s/ Howard R. Curd
|
|
Howard R. Curd
|
||
Chief Executive Officer
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the issuer ’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting.
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
|
Date: November 6, 2017
|
/s/ Edmund C. King
|
|
Edmund C. King
|
||
Chief Financial Officer
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
Date: November 6, 2017
|
/s/ Howard R. Curd
|
|
Howard R. Curd
|
||
Chief Executive Officer
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
Date: November 6, 2017
|
/s/ Edmund C. King
|
|
Edmund C. King
|
||
Chief Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Oct. 01, 2017 |
Nov. 01, 2017 |
|
Entity Registrant Name | UNIROYAL GLOBAL ENGINEERED PRODUCTS, INC. | |
Entity Trading Symbol | UNIR | |
Document Type | 10-Q | |
Document Period End Date | Oct. 01, 2017 | |
Amendment Flag | false | |
Entity Central Index Key | 0001172706 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Ordinary Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 17,078,928 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 1,619,102 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Assets [Abstract] | ||
Preferred Stock Par value | $ 100 | $ 100 |
Series A UEP Holdings LLC par value | $ 100 | $ 100 |
Series A UEP Holdings LLC shares issued | 200,000 | 200,000 |
Series A UEP Holdings LLC shares outstanding | 200,000 | 200,000 |
Series B UEP Holdings LLC par value | $ 100 | $ 100 |
Series B UEP Holdings LLC shares issued | 150,000 | 150,000 |
Series B UEP Holdings LLC shares outstanding | 150,000 | 150,000 |
Preferred stock, Uniroyal Global (Europe) Limited shares Par value | $ 1.51 | $ 1.51 |
Preferred stock, Uniroyal Global (Europe) Limited shares issued | 50 | 50 |
Preferred stock, Uniroyal Global (Europe) Limited shares outstanding | 50 | 50 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 95,000,000 | 95,000,000 |
Common Stock, shares issued | 18,698,030 | 18,727,782 |
Common Stock, shares outstanding | 18,698,030 | 18,727,782 |
Consolidated Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2017 |
Oct. 02, 2016 |
Oct. 01, 2017 |
Oct. 02, 2016 |
|
Revenues [Abstract] | ||||
NET SALES | $ 22,498,456 | $ 24,675,521 | $ 74,334,434 | $ 76,976,985 |
COST OF GOODS SOLD | 18,310,782 | 19,325,342 | 59,434,030 | 59,241,192 |
Gross Profit | 4,187,674 | 5,350,179 | 14,900,404 | 17,735,793 |
OPERATING EXPENSES: | ||||
Selling | 1,285,822 | 1,238,035 | 3,896,166 | 4,011,017 |
General and administrative | 1,543,689 | 1,830,932 | 5,294,935 | 6,051,854 |
Research and development | 483,221 | 412,854 | 1,454,179 | 1,316,696 |
OPERATING EXPENSES | 3,312,732 | 3,481,821 | 10,645,280 | 11,379,567 |
Operating Income | 874,942 | 1,868,358 | 4,255,124 | 6,356,226 |
OTHER EXPENSE: | ||||
Interest and other debt related expense | (418,698) | (394,401) | (1,217,348) | (1,232,814) |
Other expense | (115,482) | (17,015) | (108,607) | (279,075) |
Net Other Expense | (534,180) | (411,416) | (1,325,955) | (1,511,889) |
INCOME BEFORE TAX PROVISION | 340,762 | 1,456,942 | 2,929,169 | 4,844,337 |
TAX PROVISION | 65,170 | 156,898 | 491,099 | 484,798 |
NET INCOME | 275,592 | 1,300,044 | 2,438,070 | 4,359,539 |
Preferred stock dividend | (753,145) | (722,029) | (2,230,381) | (2,165,695) |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ (477,553) | $ 578,015 | $ 207,689 | $ 2,193,844 |
EARNINGS (LOSS) PER COMMON SHARE: | ||||
Basic | $ (0.03) | $ 0.03 | $ 0.01 | $ 0.12 |
Diluted | $ (0.03) | $ 0.03 | $ 0.01 | $ 0.12 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic | 18,698,030 | 18,828,292 | 18,708,427 | 18,843,440 |
Diluted | 18,698,030 | 18,893,936 | 18,794,087 | 18,909,085 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2017 |
Oct. 02, 2016 |
Oct. 01, 2017 |
Oct. 02, 2016 |
|
COMPREHENSIVE INCOME | ||||
NET INCOME | $ 275,592 | $ 1,300,044 | $ 2,438,070 | $ 4,359,539 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Minimum benefit liability adjustment | (1,173) | (3,519) | ||
Foreign currency translation adjustment | 340,329 | (213,582) | 882,483 | (1,132,786) |
OTHER COMPREHENSIVE INCOME (LOSS) | 340,329 | (214,755) | 882,483 | (1,136,305) |
COMPREHENSIVE INCOME | 615,921 | 1,085,289 | 3,320,553 | 3,223,234 |
Preferred stock dividend | (753,145) | (722,029) | (2,230,381) | (2,165,695) |
COMPREHENSIVE INCOME (LOSS) TO COMMON SHAREHOLDERS | $ (137,224) | $ 363,260 | $ 1,090,172 | $ 1,057,539 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 9 months ended Oct. 01, 2017 - USD ($) |
Ueph Series A Units [Member] |
UEPH Series B Units [Member] |
EPAL Preferred Shares [Member] |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Accmulated Deficit [Member] |
Accumulated Other Comprehensive Income [Member] |
Total |
---|---|---|---|---|---|---|---|---|
Balance at Jan. 01, 2017 | $ 617,571 | $ 463,179 | $ 75 | $ 18,728 | $ 34,653,894 | $ (17,174,814) | $ (1,678,486) | $ 16,900,147 |
Balance, shares at Jan. 01, 2017 | 200,000 | 150,000 | 50 | 18,727,782 | ||||
Net Income | 2,438,070 | 2,438,070 | ||||||
Other comprehensive loss | 882,483 | 882,483 | ||||||
Stock-based compensation expense | 308,655 | 308,655 | ||||||
Treasury shares, purchased at cost and retired | $ (30) | (99,810) | (99,840) | |||||
Treasury shares, purchased at cost and retired, shares | (29,752) | |||||||
Preferred stock dividend | (2,230,381) | (2,230,381) | ||||||
Balance at Oct. 01, 2017 | $ 617,571 | $ 463,179 | $ 75 | $ 18,698 | $ 34,862,739 | $ (16,967,125) | $ (796,003) | $ 18,199,134 |
Balance, shares at Oct. 01, 2017 | 200,000 | 150,000 | 50 | 18,698,030 |
Basis of Presentation |
9 Months Ended | ||
---|---|---|---|
Oct. 01, 2017 | |||
Accounting Policies [Abstract] | |||
Basis of Presentation |
The accompanying unaudited interim consolidated financial statements have been prepared based upon U.S. Securities and Exchange Commission rules that permit reduced disclosure for interim periods. Therefore, they do not include all information and footnote disclosures necessary for a complete presentation of Uniroyal Global Engineered Products, Inc.’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. Uniroyal Global Engineered Products, Inc. (the “Company,” “Uniroyal Global,” “we,” or “us”) filed audited consolidated financial statements as of and for the fiscal years ended January 1, 2017 and January 3, 2016 which included all information and notes necessary for such complete presentation in conjunction with its 2016 Annual Report on Form 10-K/A.
The results of operations for the interim period ended October 1, 2017 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended January 1, 2017, which are contained in the Company’s 2016 Annual Report on Form 10-K/A.
The Company owns all of the ownership interests in Uniroyal Engineered Products, LLC (“Uniroyal”) and its holding company UEP Holdings, LLC (“UEPH”), a U.S. manufacturer of textured coatings, and all of the ordinary common stock of Uniroyal Global (Europe) Limited (“UGEL”) formerly known as Engineered Products Acquisition Limited (“EPAL”), the holding company for Uniroyal Global Limited (“UGL”) formerly Wardle Storeys (Earby) Limited (“Wardle Storeys”), a European manufacturer of textured coatings and polymer films.
The Company and its subsidiaries have adopted a 52/53-week fiscal year ending on the Sunday nearest to December 31. The current year ending December 31, 2017 and the prior year ended January 1, 2017 are 52-week years.
The accompanying unaudited interim consolidated financial statements contain all adjustments (consisting of normal recurring items) which are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of October 1, 2017 and the results of operations, comprehensive income and cash flows for the interim periods ended October 1, 2017 and October 2, 2016.
The unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the U.S. dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s U.K.-based operations are measured using the British Pound Sterling as the functional currency. See Note 5, Foreign Currency Translation.
|
Noncash Transactions and Supplemental Disclosure of Cash Flow Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash Transactions and Supplemental Disclosure of Cash Flow Information |
During the nine months ended October 1, 2017 and October 2, 2016, the Company paid down $295,168 and $301,812, respectively, of its term loans using available borrowings on its various lines of credit.
During the nine months ended October 1, 2017 and October 2, 2016, the Company entered into new equipment financing arrangements with a value of $845,553 and $584,624, respectively. The fair value was added to property and equipment and a corresponding amount to long-term debt or capital lease obligations.
Supplemental disclosure of cash paid for:
|
Derivatives |
9 Months Ended | ||
---|---|---|---|
Oct. 01, 2017 | |||
Derivatives | |||
Derivatives |
The Company recognizes all of its derivative instruments as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, as to whether the hedge is a cash flow hedge or a fair value hedge.
The Company incurs foreign
currency risk on sales and purchases denominated in other currencies, primarily the British Pound Sterling and the Euro.
Foreign currency exchange contracts are used by the Company principally to limit the exchange rate fluctuations of the Euro.
The Euro risk is partially limited due to natural cash flow offsets. Currency exchange contracts are purchased for
approximately 25% of the net risk. These contracts are not designated as cash flow hedges for accounting purposes. Changes in
fair value of these contracts are reported in net earnings as part of other expense.
|
Fair Value of Financial Instruments |
9 Months Ended | ||
---|---|---|---|
Oct. 01, 2017 | |||
Fair Value Of Financial Instruments | |||
Fair Value of Financial Instruments |
The Company’s short-term financial instruments consist of cash and cash equivalents, receivables, accounts payable and the lines of credit. The Company adjusts the carrying value of financial instruments denominated in other currencies such as cash, receivables, accounts payable and the lines of credit using the appropriate exchange rates at the balance sheet date. The Company believes that the carrying values of these short-term financial instruments approximate their estimated fair values.
The fair value of the Company’s long-term debt is estimated based on current rates for similar instruments with the same remaining maturities. In determining the current interest rates for similar instruments the Company takes into account its risk of nonperformance. The Company believes that the carrying value of its long-term debt approximates its estimated fair value.
The Company uses foreign currency exchange contracts which are recorded at their estimated fair values in the accompanying Consolidated Balance Sheets. The fair values of the contracts at October 1, 2017 and January 1, 2017 were net assets of $2,220 and $9,718, respectively, and were included in other current assets. The fair values of the currency exchange contracts are based upon observable market transactions of spot and forward rates.
For the nine months ended October 1, 2017, there have been no changes in the application of valuation methods applied to similar assets and liabilities.
|
Foreign Currency Translation |
9 Months Ended | ||
---|---|---|---|
Oct. 01, 2017 | |||
Foreign Currency Translation [Abstract] | |||
Foreign Currency Translation |
The financial position and
results of operations of the Company’s foreign subsidiaries are measured using the local currency as the functional
currency. Assets and liabilities of operations denominated in foreign currencies are translated into U.S. dollars at exchange
rates in effect at the balance sheet date, while the capital accounts are translated at the historical rate for the date they
were recognized. Revenues and expenses are translated at the weighted average exchange rates during the reporting period. The
resulting translation gains and losses on assets and liabilities are recorded in accumulated other comprehensive loss, and
are excluded from net income until realized through a sale or liquidation of the investment. Transaction gains and losses
generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of
our foreign operations are included in Other Expense in the accompanying Consolidated Statements of Operations.
|
Inventories |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories consist of the following:
|
Other Long-term Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Assets |
Other long-term assets consist of the following:
|
Other Long-term Liabilities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-term Liabilities |
Other long-term liabilities consist of the following:
|
Lines of Credit |
9 Months Ended | ||
---|---|---|---|
Oct. 01, 2017 | |||
Line of Credit Facility [Abstract] | |||
Line of Credit |
The Company’s Uniroyal subsidiary has available a $30,000,000 revolving line of credit financing agreement with Wells Fargo Capital Finance, LLC, which matures on October 17, 2019. Interest is payable monthly at the Eurodollar rate plus 2.25% or Wells Fargo Capital Finance, LLC's prime rate at the Company's election on outstanding balances up to $6,000,000 and prime rate on amounts in excess of $6,000,000. Borrowings on the line of credit are subject to the underlying borrowing base specified in the agreement. The underlying borrowing base is currently determined based upon eligible accounts receivable, inventories and equipment. The line of credit is secured by substantially all of Uniroyal's assets and includes certain financial and restrictive covenants.
The outstanding balance on the line of credit (“Uniroyal Line of Credit”) was $10,289,656 and $9,668,388 as of October 1, 2017 and January 1, 2017, respectively. The Company has classified the outstanding balance on this line of credit within current liabilities in the accompanying Consolidated Balance Sheets.
The Company’s U.K. subsidiary has available a £9,000,000 (approximately $12.0 million) revolving line of credit financing agreement with Lloyds Bank Commercial Finance Limited (“U.K. Line of Credit”) which is subject to a six-month notice by either party. The line has several tranches based on currency or underlying security. Interest is payable monthly at the base rate (U.K. LIBOR or Lloyds Bank Base Rate as published) plus 1.95% to 2.45% depending on the tranche. Borrowings on the line of credit are subject to the underlying borrowing base specified in the agreement. The underlying borrowing base is currently determined based upon eligible accounts receivable and inventories. The line of credit is secured by substantially all of the subsidiary's assets and includes certain financial and restrictive covenants.
The outstanding balance on the U.K. Line of Credit was £7,125,103 and £5,792,236 ($9,543,696 and $7,131,204) as of October 1, 2017 and January 1, 2017, respectively. The Company has classified the outstanding balance on this line of credit within current liabilities in the accompanying Consolidated Balance Sheets.
|
Long-Term Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
Long-term debt consists of the following:
|
Related Party Obligations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Obligations |
Long-term debt to related parties consists of the following:
The Company has a lease financing obligation under which it leases its main U.S. manufacturing facility and certain other property from a related party lessor entity, accrues interest at 18.20% and currently requires monthly principal and interest payments of $32,439, which are adjusted annually based on the consumer price index. The lease financing obligation matures on October 31, 2033. The Company has security deposits aggregating $267,500 held by the lessor entity. This obligation is shown in the accompanying Consolidated Balance Sheets as Related Party Lease Financing Obligation which consists of the following:
The current portions of the long-term debt to related parties and the related party lease financing obligation are combined and are shown in current liabilities as related party obligation.
|
Capital Leases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Leases |
The Company has several capital leases on equipment which expire from October 2, 2017 through January 2021 with monthly lease payments ranging from approximately $1,119 to $31,120 per month. The capital lease obligations are secured by the related equipment. As of October 1, 2017 and January 1, 2017, assets recorded under capital leases are included in property and equipment in the accompanying Consolidated Balance Sheets. Amortization of items under capital lease obligations has been included with depreciation expense on owned property and equipment in the accompanying Consolidated Statements of Operations. Interest rates on these obligations range from 3.84% to 19.15%
Capital lease obligations consist of the following:
|
Accumulated Other Comprehensive Loss |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AOCI Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income |
The changes in accumulated other comprehensive loss were as follows:
The gain (loss) reclassified from accumulated other comprehensive income (loss) into income is recorded to the following income statement line items:
|
Stock Option Plan |
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Stock Options or Stock Based Compensation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Plan |
On June 25, 2015, the Company’s stockholders approved the adoption of the 2015 Stock Option Plan. This plan provides for the granting of options to purchase the Company’s common stock to employees and directors. The options granted are subject to a vesting schedule as set forth in each individual option agreement. Each option expires on the tenth anniversary of its date of grant unless an earlier termination date is provided in the grant agreement. The maximum aggregate number of shares of common stock that may be optioned and sold under the plan shall be 6% of the shares outstanding on the date of grant. The shares that may be optioned under the plan may be authorized but unissued or may be treasury shares.
Compensation expense is recognized on a straight-line basis over a three-year vesting period from date of grant.
Stock option activity for the nine months ended October 1, 2017 and October 2, 2016 is as follows:
Option expense recognized was $102,010 and $112,375 for the three months ended October 1, 2017 and October 2, 2016, respectively and $308,655 and $277,939 for the nine months ended October 1, 2017 and October 2, 2016, respectively. As of October 1, 2017, there was $464,812 in unrecognized compensation cost related to the options granted under the 2015 Stock Option Plan. We expect to recognize those costs over the remaining vesting term of 18 months.
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Recent Accounting Pronouncements |
9 Months Ended | ||
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Oct. 01, 2017 | |||
Recent Accounting Pronouncements | |||
Recent Accounting Pronouncement |
In May 2014, the Financial Accounting Standards Board issued a new standard, ASU No. 2014-09, "Revenue from Contracts with Customers." Under ASU 2014-09 recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard will be effective for the Company January 1, 2018. Based on our evaluation to date, which includes the results of reviewing our sales contracts, we do not expect the adoption of this standard to have a significant impact on our consolidated financial position, results of operations and cash flows.
On July 22, 2015, the Financial Accounting Standards Board issued a new standard, ASU No. 2015-11, “Simplifying the Measurement of Inventory”. The new standard requires entities to measure most inventory at the lower of cost and net realizable value, which is a change from the current guidance under which an entity must measure inventory at the lower of cost or market with market defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The ASU will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method. It became effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows.
On November 20, 2015, the Financial Accounting Standards Board issued a new standard, ASU No. 2015-17, “Income Taxes - Balance Sheet Classification of Deferred Taxes”. Under the new guidance deferred tax liabilities and assets will be classified as noncurrent in a classified statement of financial position. It became effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows. The Company is applying the change retrospectively for all periods presented. Thus, current deferred tax assets in the amount of $1,301,280 which had been included in Other Current Assets in the accompanying Consolidated Balance Sheets at January 1, 2017 were reclassified to Other Long-term Assets or Other Long-term liabilities at that date.
On February 25, 2016, the Financial Accounting Standards Board issued a new standard, ASU No. 2016-02, “Leases”. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU will require both types of leases to be recognized on the balance sheet. It will be effective for the Company on December 31, 2018. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date.
On March 30, 2016, the Financial Accounting Standards Board issued a new standard, ASU No. 2016-09, “Compensation – Stock Compensation.” The new standard involves 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. It became effective for the Company on January 2, 2017. The adoption of this standard for the year ending December 31, 2017 will not have a significant effect on its consolidated financial position, results of operations and cash flows.
On August 26, 2016, the Financial Accounting Standards Board issued a new standard, ASU No. 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” The new standard applies to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. It will be effective for the Company on January 1, 2018. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date.
On January 26, 2017, the Financial Accounting Standards Board issued a new standard, ASU No. 2017-04, “Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment.” The new standard modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. It will be effective for the Company on December 30, 2019. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date.
On May 10, 2017, the Financial Accounting Standards Board issued a new standard, ASU No. 2017-09, “Compensation – Stock Compensation – Scope of Modification Accounting.” The new standard clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. It will be effective for the Company on January 1, 2018. Although the Company currently does not have any plans to change any of the terms or conditions of its stock compensation plan, the Company is evaluating this standard to understand the effects various changes, if made, could have on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date.
On August 28, 2017, the Financial Accounting Standards Board issued a new standard, ASU No. 2017-12, “Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities.” The objective of this new standard is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities and to simplify the application of the hedge accounting guidance in current GAAP. It will be effective for the Company on December 31, 2018. The Company is currently evaluating the effects this standard will have, if any, on its consolidated financial position, results of operations and cash flows together with evaluating the adoption date.
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Earnings Per Common Share |
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share |
The following table sets forth the computation of earnings per common share - basic and earnings per common share – diluted for the three and nine months ended October 1, 2017 and October 2, 2016:
The calculations of diluted earnings per share for the nine months ended October 1, 2017 and the three and nine months ended October 2, 2016 excluded options to purchase 350,250 and 355,250 shares of common stock, respectively, because the options’ exercise price of $3.57 per share was greater than the average market prices of the common shares. Due to the net loss for the three months ended October 1, 2017, the calculations of basic and diluted loss per share were the same since including options to purchase shares of common stock in the calculation of diluted loss per share would have been anti-dilutive.
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Subsequent Events |
9 Months Ended | ||
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Oct. 01, 2017 | |||
Subsequent Events [Abstract] | |||
Subsequent Events |
The Company has evaluated subsequent events occurring through the date that the financial statements were issued for events requiring recording or disclosure in the October 1, 2017 financial statements. There were no material events or transactions occurring during this period requiring recognition or disclosure.
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Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Tables) |
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Noncash Transactions and Supplemental Disclosure of Cash Flow Information Text Block | Supplemental disclosure of cash paid for:
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Inventories (Tables) |
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Oct. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
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Other Long-term Assets (Tables) |
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Long-term Assets | Other long-term assets consist of the following:
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Other Long-term Liabilities (Tables) |
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Long-term Liabilities | Other long-term liabilities consist of the following:
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Long-Term Debt (Tables) |
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Long-term Debt, by Current and Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt consists of the following:
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Related Party Obligations (Tables) |
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Oct. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Obligations Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt to Related Parties | Long-term debt to related parties consists of the following:
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Schedule of Related Party Lease Obligation | This obligation is shown in the accompanying Consolidated Balance Sheets as Related Party Lease Financing Obligation which consists of the following:
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Schedule of Related Party Obligations, Current | The current portions of the long-term debt to related parties and the related party lease financing obligation are combined and are shown in current liabilities as related party obligation.
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Capital Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Leases Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capital Leases Principal Requirements | Capital lease obligations consist of the following:
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Accumulated Other Comprehensive Loss (Tables) |
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Oct. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AOCI Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss were as follows:
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Gain (Loss) Reclassified from AOCI | The gain (loss) reclassified from accumulated other comprehensive income (loss) into income is recorded to the following income statement line items:
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Stock Option Plan (Tables) |
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Schedule of Stock Option Plan: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Options Activity | Stock option activity for the nine months ended October 1, 2017 and October 2, 2016 is as follows:
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Earnings Per Common Share (Tables) |
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Oct. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Common Share | The following table sets forth the computation of earnings per common share - basic and earnings per common share – diluted for the three and nine months ended October 1, 2017 and October 2, 2016:
|
Noncash Transactions and Supplemental Disclosure of Cash Flow Information (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Oct. 01, 2017 |
Oct. 02, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Payments on term loans | $ 295,168 | $ 301,812 |
New equipment leases during the year | 845,553 | 584,624 |
Interest | 1,212,910 | 1,236,465 |
Tax payments |
Derivatives (Details) |
9 Months Ended |
---|---|
Oct. 01, 2017 | |
Derivatives Details | |
Percentage of risk on currency exchange contracts | 25.00% |
Fair Value of Financial Instruments (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Fair Value Of Financial Instruments Details | ||
Fair value of foreign currency exchange contracts | $ 2,220 | $ 9,718 |
Inventories (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,180,471 | $ 5,199,632 |
Work-in-process | 5,305,440 | 4,491,250 |
Finished goods | 11,223,336 | 8,669,625 |
Inventories gross | 22,709,247 | 18,360,507 |
Less: Allowance for inventory obsolescence | (1,419,968) | (1,314,336) |
Total Inventories | $ 21,289,279 | $ 17,046,171 |
Other Long-term Assets (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Other Assets, Noncurrent [Abstract] | ||
Non-current deferred tax asset | $ 5,684,424 | $ 5,689,000 |
Other | 1,339,557 | 976,375 |
Total Other Long-term Assets | $ 7,023,981 | $ 6,665,375 |
Other Long-term Liabilities (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Other Liabilities, Noncurrent [Abstract] | ||
Non-current deferred tax liability | $ 605,004 | $ 743,971 |
Other | 35,302 | 48,056 |
Total Other Long-term Liabilities | $ 640,306 | $ 792,027 |
Related Party Obligations (Narrative) (Details) - Company's Majority Owners [Member] - USD ($) |
9 Months Ended | |
---|---|---|
Oct. 01, 2017 |
Jan. 01, 2017 |
|
Long-term debt, interest rate | 18.20% | |
Long-term debt, periodic payment | $ 32,439 | |
Long-term debt, security deposit | $ 267,500 | |
Long-term debt, maturity date | Oct. 31, 2033 |
Related Party Obligations (Long-term debt to related parties) (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Oct. 01, 2017 |
Jan. 01, 2017 |
|
Total debt to related parties | $ 2,918,785 | $ 3,194,421 |
Less: Current portion of debt to related parties | (367,514) | (367,514) |
Total Long-term Debt to Related Parties | 2,551,271 | 2,826,907 |
Senior subordinated promissory note [Member] | ||
Total debt to related parties | $ 2,000,000 | 2,000,000 |
Long-term debt, interest rate | 9.25% | |
Senior secured promissory note [Member] | ||
Total debt to related parties | $ 918,785 | $ 1,194,421 |
Long-term debt, interest rate | 10.00% |
Related Party Obligations (Lease Financing Obligation) (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Related Party Lease Financing Obligation Details | ||
Related party lease financing obligation | $ 2,163,429 | $ 2,165,798 |
Less: Current portion | (7,515) | (3,647) |
Long-Term Portion | $ 2,155,914 | $ 2,162,151 |
Related Party Obligations (Schedule of Current Portions) (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Related Party Obligations Schedule Of Current Portions Details | ||
Current portion of long-term debt to related parties | $ 367,514 | $ 367,514 |
Current portion of related party lease financing obligation | 7,515 | 3,647 |
Related Party Obligation | $ 375,029 | $ 371,161 |
Capital Leases (Details) - USD ($) |
Oct. 01, 2017 |
Jan. 01, 2017 |
---|---|---|
Capital Leases Details | ||
Capital Leases on equipment - Monthly lease payments minimum | $ 1,119 | |
Capital Leases on equipment - Monthly lease payments maximum | $ 31,120 | |
Capital Leases on equipment -Interest rates minimum | 3.84% | |
Capital Leases on equipment -Interest rates maximum | 19.15% | |
Capital lease obligation | $ 1,028,467 | $ 1,224,889 |
Less: current portion | (399,205) | (368,718) |
Long-term Portion | $ 629,262 | $ 856,171 |
Accumulated Other Comprehensive Loss (Details) |
9 Months Ended |
---|---|
Oct. 01, 2017
USD ($)
| |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ (1,678,486) |
Other comprehensive losses before reclassifications, net | 882,483 |
Balance | (796,003) |
Minimum Benefit Liability Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 233,877 |
Other comprehensive losses before reclassifications, net | |
Balance | 233,877 |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (1,912,363) |
Other comprehensive losses before reclassifications, net | 882,483 |
Balance | $ (1,029,880) |
Stock Option Plan (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2017 |
Oct. 02, 2016 |
Oct. 01, 2017 |
Oct. 02, 2016 |
|
Stock Option Plan Narrative Details | ||||
Stock-based compensation expense | $ 102,010 | $ 112,375 | $ 308,655 | $ 277,939 |
Unrecognized compensation cost | $ 464,812 | |||
Unrecognized compensation cost, recognition period | 18 months |
Recent Accounting Pronouncements (Details) |
Oct. 01, 2017
USD ($)
|
---|---|
Recent Accounting Pronouncements Details | |
Current deferred tax assets amount | $ 1,301,280 |
Earnings Per Common Share (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2017 |
Oct. 02, 2016 |
Oct. 01, 2017 |
Oct. 02, 2016 |
|
Numerator | ||||
Net income (loss) available to common shareholders | $ (477,553) | $ 578,015 | $ 207,689 | $ 2,193,844 |
Denominator | ||||
Denominator for basic earnings per share - weighted average shares outstanding | 18,698,030 | 18,828,292 | 18,708,427 | 18,843,440 |
Weighted average effect of dilutive securities | 65,644 | 85,660 | 65,645 | |
Denominator for dilutive earnings per share - weighted average shares outstanding | 18,698,030 | 18,893,936 | 18,794,087 | 18,909,085 |
Basic and Diluted Income (Loss) Per Share | ||||
Net income (loss) available to common shareholders | $ (0.03) | $ 0.03 | $ 0.01 | $ 0.12 |
Effect of dilutive securities | ||||
Net income (loss) available to common shareholders | $ (0.03) | $ 0.03 | $ 0.01 | $ 0.12 |
Earnings Per Common Share (Narrative) (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2017 |
Oct. 02, 2016 |
Oct. 01, 2017 |
Oct. 02, 2016 |
|
Weighted average effect of dilutive securities | 65,644 | 85,660 | 65,645 | |
Option exercise price | $ 2.37 | |||
Stock Option [Member] | ||||
Weighted average effect of dilutive securities | 350,250 | 355,250 | ||
Option exercise price | $ 3.57 | $ 3.57 |
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