[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
Nevada
|
95--1480559
|
(State or other Jurisdiction of Incorporation)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
Common Stock, par value $0.05 per share
|
RCMT
|
The NASDAQ Stock Market LLC
|
Large Accelerated Filer [ ]
|
Accelerated Filer [ ]
|
Non-Accelerated Filer [X]
|
Smaller
Reporting
Company [X]
|
Emerging
Growth
Company [ ]
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
|
PART I - FINANCIAL INFORMATION
|
||
Page
|
||
Item 1.
|
Condensed Consolidated Financial Statements
|
|
Condensed Consolidated Balance Sheets as of September 26, 2020 (Unaudited)
and December 28, 2019
|
4
|
|
Unaudited Condensed Consolidated Statements of Operations for the Thirteen and
Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
|
5
|
|
Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income
for the Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
|
6
|
|
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity
for the Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
|
8
|
|
Unaudited Condensed Consolidated Statements of Cash Flows for the
Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
|
9
|
|
Notes to Unaudited Condensed Consolidated Financial Statements
|
10
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
|
32
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
52
|
Item 4.
|
Controls and Procedures
|
52
|
PART II - OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
53
|
Item 1A.
|
Risk Factors
|
53
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
54
|
Item 3.
|
Defaults Upon Senior Securities
|
54
|
Item 4.
|
Mine Safety Disclosures
|
54
|
Item 5.
|
Other Information
|
54
|
Item 6.
|
Exhibits
|
54
|
Signatures
|
55
|
ITEM 1.
|
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
September 26,
|
December 28,
|
|||||
2020
|
2019
|
|||||
(Unaudited)
|
||||||
Current assets:
|
||||||
Cash and cash equivalents
|
$757
|
$1,847
|
||||
Accounts receivable, net
|
32,986
|
59,760
|
||||
Transit accounts receivable
|
198
|
4,906
|
||||
Prepaid expenses and other current assets
|
2,180
|
4,144
|
||||
Total current assets
|
36,121
|
70,657
|
||||
Property and equipment, net
|
2,359
|
2,717
|
||||
Other assets:
|
||||||
Deposits
|
169
|
209
|
||||
Deferred tax asset, net, domestic
|
2,688
|
-
|
||||
Goodwill
|
16,354
|
16,354
|
||||
Operating right of use asset
|
4,686
|
5,820
|
||||
Intangible assets, net
|
176
|
416
|
||||
Total other assets
|
24,073
|
22,799
|
||||
Total assets
|
$62,553
|
$96,173
|
Current liabilities:
|
|||||||
Accounts payable and accrued expenses
|
$7,478
|
$6,220
|
|||||
Transit accounts payable
|
901
|
4,552
|
|||||
Accrued payroll and related costs
|
8,532
|
7,713
|
|||||
Finance lease payable
|
311
|
315
|
|||||
Income taxes payable
|
224
|
130
|
|||||
Operating right of use liability
|
1,984
|
2,134
|
|||||
Liability for contingent consideration from acquisitions
|
500
|
344
|
|||||
Total current liabilities
|
19,930
|
21,408
|
|||||
Deferred tax liability, foreign
|
379
|
382
|
|||||
Deferred tax liability, net, domestic
|
-
|
395
|
|||||
Finance lease payable
|
115
|
189
|
|||||
Liability for contingent consideration from acquisitions
|
2,322
|
2,714
|
|||||
Operating right of use liability, net of current position
|
2,922
|
3,921
|
|||||
Borrowings under line of credit
|
13,258
|
34,761
|
|||||
Total liabilities
|
38,926
|
63,770
|
|||||
Commitments and contingencies (note 16)
|
|||||||
Stockholders’ equity:
|
|||||||
Preferred stock, $1.00 par value; 5,000,000 shares authorized;
|
|||||||
no shares issued or outstanding
|
-
|
-
|
|||||
Common stock, $0.05 par value; 40,000,000 shares authorized;
|
|||||||
16,144,966 shares issued and 11,463,655 shares outstanding at
September 26, 2020 and 15,826,891 shares issued and 13,003,719 shares outstanding at December 28, 2019
|
807
|
791
|
|||||
Additional paid-in capital
|
109,027
|
108,452
|
|||||
Accumulated other comprehensive loss
|
(2,704
|
)
|
(2,748
|
)
|
|||
Accumulated deficit
|
(66,286
|
)
|
(59,105
|
)
|
|||
Treasury stock (4,681,311) shares at September 26, 2020 and
|
|||||||
(2,823,172) at December 28, 2019 at cost
|
(17,217
|
)
|
(14,987
|
)
|
|||
Stockholders’ equity
|
23,627
|
32,403
|
|||||
Total liabilities and stockholders’ equity
|
$62,553
|
$96,173
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Thirteen and Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
(Unaudited)
(In thousands, except per share amounts)
|
Thirteen Weeks Ended
|
Thirty-Nine Weeks Ended
|
||||||||
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
||||||
Revenue
|
$31,561
|
$40,250
|
$109,246
|
$142,550
|
|||||
Cost of services
|
22,741
|
29,635
|
81,080
|
106,615
|
|||||
Gross profit
|
8,820
|
10,615
|
28,166
|
35,935
|
|||||
Operating costs and expenses
|
|||||||||
Selling, general and administrative
|
8,606
|
9,498
|
27,837
|
30,165
|
|||||
Depreciation and amortization of property
and equipment
|
292
|
304
|
793
|
944
|
|||||
Amortization of acquired intangible assets
|
80
|
82
|
240
|
247
|
|||||
Write-off of receivables and professional fees
Incurred related to arbitration
|
-
|
-
|
8,397
|
-
|
|||||
Operating costs and expenses
|
8,978
|
9,884
|
37,267
|
31,356
|
|||||
Operating (loss) income
|
(158
|
)
|
731
|
(9,101
|
)
|
4,579
|
|||
Other expense (income)
|
|||||||||
Interest expense and other, net
|
126
|
390
|
650
|
1,276
|
|||||
Imputed interest on contingent consideration
|
36
|
(56
|
)
|
108
|
40
|
||||
Loss (gain) on foreign currency transactions
|
91
|
(8
|
)
|
137
|
(41
|
)
|
|||
Other expense, net
|
253
|
326
|
895
|
1,275
|
|||||
(Loss) income before income taxes
|
(411
|
)
|
405
|
(9,996
|
)
|
3,304
|
|||
Income tax (benefit) expense
|
(167
|
)
|
70
|
(2,815
|
)
|
255
|
|||
Net (loss) income
|
($244
|
)
|
$335
|
($7,181
|
)
|
$3,049
|
|||
Basic and diluted net (loss) earnings per share
|
($0.02
|
)
|
$0.03
|
($0.58
|
)
|
$0.24
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
(Unaudited)
(In thousands)
|
September 26,
2020
|
September 28,
2019
|
|||
Net (loss) income
|
($7,181
|
)
|
$3,049
|
|
Other comprehensive (loss) income
|
44
|
(2
|
)
|
|
Comprehensive (loss) income
|
($7,137
|
)
|
$3,047
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Thirty-Nine Week Period Ended September 26, 2020
(Unaudited)
(In thousands, except share amounts)
|
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Loss
|
Accumulated
Deficit
|
Treasury Stock
|
Total
|
|||||||||||
Issued
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||
Balance, December 28, 2019
|
15,826,891
|
$791
|
$108,452
|
($2,748
|
)
|
($59,105
|
)
|
2,823,172
|
($14,987
|
)
|
$32,403
|
|||||
Issuance of stock under
employee stock purchase plan
|
57,251
|
3
|
137
|
-
|
-
|
-
|
-
|
140
|
||||||||
Translation adjustment
|
-
|
-
|
-
|
(131
|
)
|
-
|
-
|
-
|
(131
|
)
|
||||||
Share-based compensation expense
|
-
|
-
|
69
|
-
|
-
|
-
|
-
|
69
|
||||||||
Issuance of equity awards
|
60,000
|
3
|
(3)
|
-
|
-
|
-
|
-
|
-
|
||||||||
Net loss
|
-
|
-
|
-
|
-
|
(5,945
|
)
|
-
|
-
|
(5,945
|
)
|
||||||
Balance, March 28, 2020
|
15,944,142
|
$797
|
$108,655
|
($2,879
|
)
|
($65,050
|
)
|
2,823,172
|
($14,987
|
)
|
$26,536
|
|||||
Translation adjustment
|
-
|
-
|
-
|
57
|
-
|
-
|
-
|
57
|
||||||||
Share-based compensation expense
|
-
|
-
|
167
|
-
|
-
|
-
|
-
|
167
|
||||||||
Issuance of equity awards
|
66,552
|
3
|
(3
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||
Common stock repurchase
|
-
|
-
|
-
|
-
|
-
|
1,858,139
|
(2,230
|
)
|
(2,230
|
)
|
||||||
Net loss
|
-
|
-
|
-
|
-
|
(992
|
)
|
-
|
-
|
(992
|
)
|
||||||
Balance, June 27, 2020
|
16,010,694
|
$800
|
$108,819
|
($2,822
|
)
|
($66,042
|
)
|
4,681,311
|
($17,217
|
)
|
$23,538
|
|||||
Issuance of stock under
employee stock purchase plan
|
60,732
|
3
|
65
|
-
|
-
|
-
|
-
|
68
|
||||||||
Translation adjustment
|
-
|
-
|
-
|
118
|
-
|
-
|
-
|
118
|
||||||||
Share-based compensation expense
|
-
|
-
|
147
|
-
|
-
|
-
|
-
|
147
|
||||||||
Issuance of equity awards
|
73,540
|
4
|
(4
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net income
|
-
|
-
|
-
|
-
|
(244
|
)
|
-
|
-
|
(244
|
)
|
||||||
Balance, September 26, 2020
|
16,144,966
|
$807
|
$109,027
|
($2,704
|
)
|
($66,286
|
)
|
4,681,311
|
($17,217
|
)
|
$23,627
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Thirty-Nine Week Period Ended September 28, 2019
(Unaudited)
(In thousands, except share amounts)
|
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Loss
|
Accumulated
Deficit
|
Treasury Stock
|
Total
|
|||||||||||
Issued
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||
Balance, December 29, 2018
|
15,578,345
|
$778
|
$107,326
|
($2,755
|
)
|
($63,163
|
)
|
2,823,172
|
($14,987
|
)
|
$27,199
|
|||||
Issuance of stock under
employee stock purchase plan
|
59,451
|
3
|
162
|
-
|
-
|
-
|
-
|
165
|
||||||||
Translation adjustment
|
-
|
-
|
-
|
11
|
-
|
-
|
-
|
11
|
||||||||
Share-based compensation expense
|
-
|
-
|
241
|
-
|
-
|
-
|
-
|
241
|
||||||||
Issuance of stock upon vesting of
restricted stock units
|
57,148
|
3
|
(3
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net income
|
-
|
-
|
-
|
-
|
1,463
|
-
|
-
|
1,463
|
||||||||
Balance, March 30, 2019
|
15,694,944
|
$784
|
$107,726
|
($2,744
|
)
|
(61,700
|
)
|
2,823,172
|
($14,987
|
)
|
$29,079
|
|||||
Translation adjustment
|
-
|
-
|
-
|
12
|
-
|
-
|
-
|
12
|
||||||||
Share-based compensation expense
|
-
|
-
|
207
|
-
|
-
|
-
|
-
|
207
|
||||||||
Issuance of stock upon vesting of
restricted stock units
|
25,000
|
1
|
(1
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net income
|
-
|
-
|
-
|
-
|
1,251
|
-
|
-
|
1,251
|
||||||||
Balance, June 29, 2019
|
15,719,944
|
$785
|
$107,932
|
($2,732
|
)
|
($60,449
|
)
|
2,823,172
|
($14,987
|
)
|
$30,549
|
|||||
Issuance of stock under
employee stock purchase plan
|
59,075
|
3
|
153
|
-
|
-
|
-
|
-
|
156
|
||||||||
Translation adjustment
|
-
|
-
|
-
|
(25
|
)
|
-
|
-
|
-
|
(25
|
)
|
||||||
Share-based compensation expense
|
-
|
-
|
24
|
-
|
-
|
-
|
-
|
24
|
||||||||
Dividends forfeited
|
-
|
-
|
12
|
-
|
-
|
-
|
-
|
12
|
||||||||
Net income
|
-
|
-
|
-
|
-
|
335
|
-
|
-
|
335
|
||||||||
Balance, September 28, 2019
|
15,779,019
|
$788
|
$108,121
|
($2,757
|
)
|
($60,114
|
)
|
2,823,172
|
($14,987
|
)
|
$31,051
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Thirty-Nine Week Periods Ended September 26, 2020 and September 28, 2019
(Unaudited)
(In thousands)
|
September 26,
2020
|
September 28,
2019
|
||||||
Cash flows from operating activities:
|
|||||||
Net (loss) income
|
($7,181
|
)
|
$3,049
|
||||
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
|
|||||||
Depreciation and amortization
|
1,033
|
1,191
|
|||||
Imputed interest on contingent consideration
|
108
|
40
|
|||||
Share-based compensation expense
|
383
|
472
|
|||||
Provision for losses on accounts receivable
|
7,855
|
125
|
|||||
Deferred income tax (benefit) expense
|
(3,086
|
)
|
108
|
||||
Changes in assets and liabilities:
|
|||||||
Accounts receivable
|
18,891
|
(5,184
|
)
|
||||
Prepaid expenses and other current assets
|
2,270
|
483
|
|||||
Net of transit accounts receivable and payable
|
1,056
|
923
|
|||||
Accounts payable and accrued expenses
|
1,508
|
(3,366
|
)
|
||||
Accrued payroll and related costs
|
825
|
(1,986
|
)
|
||||
Right of use assets and liabilities
|
(16
|
)
|
245
|
||||
Income taxes payable
|
94
|
30
|
|||||
Total adjustments
|
30,921
|
(6,919
|
)
|
||||
Net cash provided by (used in) operating activities
|
23,740
|
(3,870
|
)
|
||||
Cash flows from investing activities:
|
|||||||
Property and equipment acquired
|
(400
|
)
|
(301
|
)
|
|||
Decrease in deposits
|
40
|
5
|
|||||
Net cash used in investing activities
|
(360
|
)
|
(296
|
)
|
|||
Cash flows from financing activities:
|
|||||||
Borrowings under line of credit
|
51,366
|
72,201
|
|||||
Repayments under line of credit
|
(72,869
|
)
|
(68,006
|
)
|
|||
Issuance of stock for employee stock purchase plan
|
208
|
321
|
|||||
Changes in finance lease obligations
|
(321
|
)
|
218
|
||||
Contingent consideration paid
|
(345
|
)
|
(574
|
)
|
|||
Payment of note payable for treasury stock
|
(2,230
|
)
|
-
|
||||
Net cash (used in) provided by financing activities
|
(24,191
|
)
|
4,160
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(279
|
)
|
(83
|
)
|
|||
(Decrease) increase in cash and cash equivalents
|
(1,090
|
)
|
(89
|
)
|
|||
Cash and cash equivalents at beginning of period
|
1,847
|
482
|
|||||
Cash and cash equivalents at end of period
|
$757
|
$393
|
|||||
Supplemental cash flow information:
|
|||||||
Cash paid for:
|
|||||||
Interest
|
$922
|
$1,266
|
|||||
Income taxes
|
$191
|
$116
|
|||||
Non-cash financing activities:
|
|||||||
Equity awards issued
|
$364
|
$300
|
|||||
Dividends forfeited on unvested restricted share units
|
$ -
|
($12
|
)
|
||||
Software purchase under finance lease
|
$258
|
$ -
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
1.
|
Basis of Presentation
|
Fiscal 2020 Quarters
|
Weeks
|
Fiscal 2019 Quarters
|
Weeks
|
March 28, 2020
|
Thirteen
|
March 30, 2019
|
Thirteen
|
June 27, 2020
|
Thirteen
|
June 29, 2019
|
Thirteen
|
September 26, 2020
|
Thirteen
|
September 28, 2019
|
Thirteen
|
January 2, 2021
|
Fourteen
|
December 28, 2019
|
Thirteen
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
1.
|
Basis of Presentation (Continued)
|
2.
|
Use of Estimates and Uncertainties
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
3.
|
Revenue Recognition
|
Thirteen Week
Periods Ended
|
Thirty-Nine Week
Periods Ended
|
|||||||
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
|||||
Engineering:
|
||||||||
Time and Material
|
$10,369
|
$13,938
|
$33,980
|
$41,309
|
||||
Fixed Fee
|
4,660
|
1,202
|
9,163
|
11,469
|
||||
Permanent Placement Services
|
58
|
-
|
145
|
-
|
||||
Total Engineering
|
$15,087
|
$15,140
|
$43,288
|
$52,778
|
||||
Specialty Health Care:
|
||||||||
Time and Material
|
$8,844
|
$16,272
|
$41,498
|
$63,318
|
||||
Permanent Placement Services
|
171
|
493
|
398
|
987
|
||||
Total Specialty Health Care
|
$9,015
|
$16,765
|
$41,896
|
$64,305
|
||||
Information Technology:
|
||||||||
Time and Material
|
$7,347
|
$8,134
|
$23,683
|
$25,084
|
||||
Permanent Placement Services
|
112
|
211
|
379
|
383
|
||||
Total Information Technology
|
$7,459
|
$8,345
|
$24,062
|
$25,467
|
||||
$31,561
|
$40,250
|
$109,246
|
$142,550
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
4. |
Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable
|
September 26,
2020
|
December 28,
2019
|
|||
Billed
|
$20,553
|
$29,214
|
||
Accrued and unbilled
|
10,424
|
13,824
|
||
Work-in-progress
|
3,759
|
4,352
|
||
Accounts receivable subject to arbitration
|
-
|
14,095
|
||
Allowance for sales discounts and doubtful accounts
|
(1,750
|
)
|
(1,725
|
)
|
Accounts receivable, net
|
$32,986
|
$59,760
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
5. |
Property and Equipment
|
September 26,
2020
|
December 28,
2019
|
||
Computers and systems
|
$4,635
|
$5,628
|
|
Equipment and furniture
|
264
|
319
|
|
Leasehold improvements
|
226
|
308
|
|
5,125
|
6,255
|
||
Less: accumulated depreciation and amortization
|
2,766
|
3,538
|
|
Property and equipment, net
|
$2,359
|
$2,717
|
6. |
Acquisitions
|
Fiscal Year Ending
|
Total
|
January 2, 2021 (after September 26, 2020)
|
$ -
|
January 1, 2022
|
500
|
December 31, 2022
|
2,322
|
Estimated future contingent consideration payments
|
$2,822
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
6. |
Acquisitions (Continued)
|
7. |
Goodwill
|
Engineering
|
Specialty
Health Care
|
Information
Technology
|
Total
|
|||
$11,918
|
$2,398
|
$2,038
|
$16,354
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
8. |
Intangible Assets
|
September 26,
2020
|
December 28,
2019
|
|||
Restricted covenants
|
$17
|
$28
|
||
Customer relationships
|
159
|
388
|
||
Total intangible assets
|
$176
|
$416
|
9. |
Line of Credit
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
9. |
Line of Credit (Continued)
|
10. |
Per Share Data
|
Thirteen Week Periods Ended
|
Thirty-Nine Week Periods Ended
|
||||||
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
||||
Basic weighted average shares
outstanding
|
11,444,697
|
12,955,198
|
12,393,058
|
12,897,303
|
|||
Dilutive effect of outstanding restricted
share units
|
45,411
|
63,416
|
34,181
|
53,628
|
|||
Weighted average dilutive shares
outstanding
|
11,490,108
|
13,018,614
|
12,427,739
|
12,950,931
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
10. |
Per Share Data (Continued)
|
September 26,
2020
|
December 28,
2019
|
||
Time-based restricted stock units outstanding
|
454,386
|
151,725
|
|
Performance-based restricted stock units outstanding
|
-
|
240,000
|
|
Future grants of options or shares
|
5,573
|
268,326
|
|
Shares reserved for employee stock purchase plan
|
149,894
|
267,877
|
|
Total
|
609,853
|
927,928
|
11. |
Share-Based Compensation
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
11. |
Share-Based Compensation (Continued)
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
11. |
Share-Based Compensation (Continued)
|
Number of
Time-Based
Restricted
Stock Units
|
Weighted
Average
Grant Date Fair
Value per Share
|
||
Outstanding non-vested at December 28, 2019
|
151,725
|
$3.64
|
|
Granted
|
362,661
|
$2.07
|
|
Vested
|
(60,000
|
)
|
$4.62
|
Forfeited or expired
|
-
|
-
|
|
Outstanding non-vested at September 26, 2020
|
454,386
|
$2.26
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
11. |
Share-Based Compensation (Continued)
|
Number of
Performance-Based
Restricted
Stock Units
|
Weighted
Average
Grant Date Fair
Value per Share
|
||
Outstanding non-vested at December 28, 2019
|
240,000
|
$4.81
|
|
Granted
|
-
|
-
|
|
Vested
|
(40,000
|
)
|
$4.38
|
Forfeited or expired
|
(200,000
|
)
|
$4.89
|
Outstanding non-vested at September 26, 2020
|
-
|
-
|
12. |
Treasury Stock Transactions
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
14. |
Segment Information
|
Thirteen Week Period Ended
September 26, 2020
|
Engineering
|
Specialty Health Care
|
Information
Technology
|
Corporate
|
Total
|
|||||
Revenue
|
$15,087
|
$9,015
|
$7,459
|
$ -
|
$31,561
|
|||||
Cost of services
|
10,674
|
6,724
|
5,343
|
-
|
22,741
|
|||||
Gross profit
|
4,413
|
2,291
|
2,116
|
-
|
8,820
|
|||||
Selling, general and administrative
|
3,359
|
2,989
|
2,258
|
-
|
8,606
|
|||||
Depreciation and amortization
|
252
|
82
|
38
|
-
|
372
|
|||||
Operating income (loss)
|
$802
|
($780
|
)
|
($180
|
)
|
$ -
|
($158
|
)
|
||
Total assets as of September 26, 2020
|
$34,961
|
$14,349
|
$7,858
|
$5,385
|
$62,553
|
|||||
Capital expenditures
|
($37
|
)
|
$7
|
$8
|
$271
|
$249
|
Thirteen Week Period Ended
September 28, 2019
|
Engineering
|
Specialty Health Care
|
Information
Technology
|
Corporate
|
Total
|
|||||
Revenue
|
$15,140
|
$16,765
|
$8,345
|
$ -
|
$40,250
|
|||||
Cost of services
|
10,984
|
12,795
|
5,856
|
-
|
29,635
|
|||||
Gross profit
|
4,156
|
3,970
|
2,489
|
-
|
10,615
|
|||||
Selling, general and administrative
|
2,996
|
4,205
|
2,297
|
-
|
9,498
|
|||||
Depreciation and amortization
|
293
|
74
|
19
|
-
|
386
|
|||||
Operating income (loss)
|
$867
|
($309
|
)
|
$173
|
$ -
|
$731
|
||||
Total assets as of September 28, 2019
|
$53,639
|
$25,822
|
$7,773
|
$4,506
|
$91,740
|
|||||
Capital expenditures
|
($11
|
)
|
$2
|
$19
|
$53
|
$63
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
14. |
Segment Information (Continued)
|
Thirty-Nine Week Period Ended
September 26, 2020
|
Engineering
|
Specialty Health Care
|
Information
Technology
|
Corporate
|
Total
|
|||||
Revenue
|
$43,288
|
$41,896
|
$24,062
|
$ -
|
$109,246
|
|||||
Cost of services
|
30,673
|
33,037
|
17,370
|
-
|
81,080
|
|||||
Gross profit
|
12,615
|
8,859
|
6,692
|
-
|
28,166
|
|||||
Selling, general and administrative
|
10,073
|
10,682
|
7,082
|
-
|
27,837
|
|||||
Depreciation and amortization
|
720
|
235
|
78
|
-
|
1,033
|
|||||
Write-off of receivables and
professional fees incurred
related to arbitration
|
8,397
|
-
|
-
|
-
|
8,397
|
|||||
Operating loss
|
($6,575
|
)
|
($2,058
|
)
|
($468
|
)
|
$ -
|
($9,101
|
)
|
|
Total assets as of September 26, 2020
|
$34,961
|
$14,349
|
$7,858
|
$5,385
|
$62,553
|
|||||
Capital expenditures
|
($7
|
)
|
$17
|
$43
|
$347
|
$400
|
Thirty-Nine Week Period Ended
September 28, 2019
|
Engineering
|
Specialty Health Care
|
Information
Technology
|
Corporate
|
Total
|
|||||
Revenue
|
$52,778
|
$64,305
|
$25,467
|
$ -
|
$142,550
|
|||||
Cost of services
|
38,666
|
49,395
|
18,554
|
-
|
106,615
|
|||||
Gross profit
|
14,112
|
14,910
|
6,913
|
-
|
35,935
|
|||||
Selling, general and administrative
|
10,486
|
12,990
|
6,689
|
-
|
30,165
|
|||||
Depreciation and amortization
|
879
|
250
|
62
|
-
|
1,191
|
|||||
Operating income
|
$2,747
|
$1,670
|
$162
|
$ -
|
$4,579
|
|||||
Total assets as of September 28, 2019
|
$53,639
|
$25,822
|
$7,773
|
$4,506
|
$91,740
|
|||||
Capital expenditures
|
$76
|
$107
|
$36
|
$82
|
$301
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
14. |
Segment Information (Continued)
|
Thirteen Week Periods Ended
|
Thirty-Nine Week Periods Ended
|
||||||||
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
||||||
Revenue
|
|||||||||
U. S.
|
$25,628
|
$34,810
|
$91,793
|
$124,356
|
|||||
Canada
|
3,543
|
3,682
|
11,186
|
12,770
|
|||||
Puerto Rico
|
1,433
|
1,215
|
4,018
|
3,627
|
|||||
Serbia
|
957
|
543
|
2,249
|
1,797
|
|||||
$31,561
|
$40,250
|
$109,246
|
$142,550
|
September 26,
2020
|
December 28,
2019
|
||||
Total assets
|
|||||
U. S.
|
$39,760
|
$75,724
|
|||
Canada
|
14,828
|
13,770
|
|||
Puerto Rico
|
2,105
|
2,066
|
|||
Serbia
|
5,840
|
4,613
|
|||
$62,533
|
$96,173
|
15. |
Income Taxes
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
17.
|
Leases
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
17.
|
Leases (Continued)
|
Thirteen Week Periods Ended
|
Thirty-Nine Week Periods Ended
|
|||||||
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
|||||
Operating lease cost
|
$640
|
$654
|
$1,943
|
$1,643
|
||||
Amortization of ROU assets
|
$120
|
$72
|
$275
|
$218
|
||||
Interest on lease liabilities
|
4
|
1
|
8
|
4
|
||||
Total finance lease cost
|
$124
|
$73
|
$283
|
$222
|
Thirteen Week Period Ended
|
Thirty-Nine Week Period Ended
|
|||||||
September 26,
2020
|
September 28,
2019
|
September 26,
2020
|
September 28,
2019
|
|||||
Cash paid for amounts included in the measurement
of lease liabilities
|
||||||||
Operating cash flows from operating leases
|
$659
|
$665
|
$1,986
|
$1,605
|
||||
Operating cash flows from finance leases
|
$2
|
$1
|
$6
|
$4
|
||||
Financing cash flows from finance leases
|
$167
|
$72
|
$328
|
$216
|
||||
Right of use assets obtained in exchange for lease
obligations
|
||||||||
Operating leases
|
$318
|
$774
|
$600
|
$7,756
|
||||
|
Finance leases
|
$258
|
$ -
|
$258
|
$ -
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
17.
|
Leases (Continued)
|
September 26,
2020
|
December 28,
2019
|
||||
Operating leases
|
|||||
Operating lease right of use assets
|
$4,686
|
$5,820
|
|||
Operating right of use liability - current
|
($1,984
|
)
|
($2,134
|
)
|
|
Operating right of use liability - non-current
|
(2,922
|
)
|
(3,921
|
)
|
|
Total operating lease liabilities
|
($4,906
|
)
|
($6,055
|
)
|
|
Property and equipment - (ROU assets)
|
$1,140
|
$985
|
|||
Accumulated depreciation
|
(655
|
)
|
(475
|
)
|
|
Property and equipment, net
|
$485
|
$510
|
|||
Finance lease liability - current
|
($311
|
)
|
($315
|
)
|
|
Finance lease liability - non-current
|
(115
|
)
|
(189
|
)
|
|
Total finance lease liabilities
|
($426
|
)
|
($504
|
)
|
|
Weighted average remaining lease term
|
|||||
Operating leases
|
1.63 Years
|
2.54 Years
|
|||
Finance leases
|
1.56 Years
|
1.62 Years
|
|||
Weighted average discount rate
|
|||||
Operating leases
|
4.24
|
%
|
4.11
|
%
|
|
Finance leases
|
2.47
|
%
|
1.78
|
%
|
Fiscal Year
|
Operating Leases
|
Finance
Leases
|
||
2020
|
$594
|
$75
|
||
2021
|
2,006
|
255
|
||
2022
|
1,481
|
108
|
||
2023
|
910
|
-
|
||
2024
|
187
|
-
|
||
Thereafter
|
-
|
-
|
||
Total lease payments
|
5,178
|
438
|
||
Less: imputed interest
|
(272
|
)
|
(12
|
)
|
Total
|
$4,906
|
$426
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts, unless otherwise indicated)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
September 26, 2020
|
September 28, 2019
|
|||||||
Amount
|
% of Revenue
|
Amount
|
% of Revenue
|
|||||
Revenue
|
$31,561
|
100.0
|
$40,250
|
100.0
|
||||
Cost of services
|
22,741
|
72.1
|
29,635
|
73.6
|
||||
Gross profit
|
8,820
|
27.9
|
10,615
|
26.4
|
||||
Selling, general and administrative
|
8,606
|
27.3
|
9,498
|
23.6
|
||||
Depreciation and amortization of property and equipment
|
292
|
0.9
|
304
|
0.8
|
||||
Amortization of acquired intangible assets
|
80
|
0.2
|
82
|
0.2
|
||||
8,978
|
28.4
|
9,884
|
24.6
|
|||||
Operating (loss) income
|
(158
|
)
|
(0.5
|
)
|
731
|
1.8
|
||
Other expense, net
|
253
|
0.8
|
326
|
0.8
|
||||
(Loss) income before income taxes
|
(411
|
)
|
(1.3
|
)
|
405
|
1.0
|
||
Income tax (benefit) expense
|
(167
|
)
|
(0.5
|
)
|
70
|
0.2
|
||
Net (loss) income
|
($244
|
)
|
(0.8
|
)
|
$335
|
0.8
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
September 26, 2020
|
September 28, 2019
|
|||||||
Amount
|
% of Revenue
|
Amount
|
% of Revenue
|
|||||
Revenue
|
$109,246
|
100.0
|
$142,550
|
100.0
|
||||
Cost of services
|
81,080
|
74.2
|
106,615
|
74.8
|
||||
Gross profit
|
28,166
|
25.8
|
35,935
|
25.2
|
||||
Selling, general and administrative
|
27,837
|
25.5
|
30,165
|
21.2
|
||||
Depreciation and amortization of property and equipment
|
793
|
0.7
|
944
|
0.7
|
||||
Amortization of acquired intangible assets
|
240
|
0.2
|
247
|
0.1
|
||||
Write-off of receivables and professional fees incurred
related to arbitration
|
8,397
|
7.7
|
-
|
-
|
||||
37,267
|
34.1
|
31,356
|
22.0
|
|||||
Operating (loss) income
|
(9,101
|
)
|
(8.3
|
)
|
4,579
|
3.2
|
||
Other expense, net
|
895
|
0.8
|
1,275
|
0.9
|
||||
(Loss) income before income taxes
|
(9,996
|
)
|
(9.1
|
)
|
3,304
|
2.3
|
||
Income tax (benefit) expense
|
(2,815
|
)
|
(2.6
|
)
|
255
|
0.2
|
||
Net (loss) income
|
($7,181
|
)
|
(6.5
|
)
|
$3,049
|
2.1
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
Thirty-Nine Week Periods Ended
|
|||||
September 26,
2020
|
September 28,
2019
|
||||
Cash (used in) provided by:
|
|||||
Operating activities
|
$23,740
|
($3,870
|
)
|
||
Investing activities
|
($360
|
)
|
($296
|
)
|
|
Financing activities
|
($24,191
|
)
|
$4,160
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
|
Fiscal Year
|
Operating Leases
|
Finance
Leases
|
||
2020
|
$594
|
$75
|
||
2021
|
2,006
|
255
|
||
2022
|
1,481
|
108
|
||
2023
|
910
|
-
|
||
2024
|
187
|
-
|
||
Thereafter
|
-
|
-
|
||
Total lease payments
|
5,178
|
438
|
||
Less: imputed interest
|
(272
|
)
|
(12
|
)
|
Total
|
$4,906
|
$426
|
Fiscal Year Ending
|
Total
|
January 2, 2021 (after September 26, 2020)
|
$ -
|
January 1, 2022
|
500
|
December 31, 2022
|
2,322
|
Estimated future contingent consideration payments
|
$2,822
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
RCM TECHNOLOGIES, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
|
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
|
ITEM 6.
|
EXHIBITS (CONTINUED)
|
101.INS*
|
XBRL Instance Document
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Documents
|
101.DEF*
|
XBRL Taxonomy Definition Linkbase Document
|
RCM TECHNOLOGIES, INC.
SIGNATURES
|
RCM Technologies, Inc.
|
|||
Date: November 10, 2020
|
By: /s/ Bradley S. Vizi
|
||
Bradley S. Vizi
Executive Chairman and President
(Principal Executive Officer and
Duly Authorized Officer of the Registrant)
|
Date: November 10, 2020
|
By: /s/ Kevin D. Miller
|
||
Kevin D. Miller
Chief Financial Officer
(Principal Financial Officer and
Duly Authorized Officer of the Registrant)
|
(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 registrant’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 registrant’s internal control over financial
reporting.
|
Date: November 10, 2020
|
/s/ Bradley S. Vizi
Bradley S. Vizi
Executive Chairman and President
|
(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 registrant’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 registrant’s internal control over financial
reporting.
|
Date: November 10, 2020
|
/s/ Kevin D. Miller
Kevin D. Miller
Chief Financial Officer
|
Exhibit 31.1
|
(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 registrant’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 registrant’s internal control over financial
reporting.
|
Date: November 10, 2020
|
/s/ Bradley S. Vizi
Bradley S. Vizi
Executive Chairman and President
|
Exhibit 31.2
|
(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 registrant’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 registrant’s internal control over financial
reporting.
|
Date: November 10, 2020
|
/s/ Kevin D. Miller
Kevin D. Miller
Chief Financial Officer
|
Exhibit 32.1
|
Exhibit 32.2
|
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Nov. 10, 2020 |
|
Document Information [Line Items] | ||
Entity Registrant Name | RCM TECHNOLOGIES, INC. | |
Entity Central Index Key | 0000700841 | |
Trading Symbol | rcmt | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 11,463,655 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 26, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $0.05 per share |
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 16,144,966 | 15,826,891 |
Common stock, outstanding (in shares) | 11,463,655 | 13,003,719 |
Treasury stock, shares (in shares) | 4,681,311 | 2,823,172 |
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Net (loss) income | $ (7,181) | $ 3,049 |
Other comprehensive (loss) income | 44 | (2) |
Comprehensive (loss) income | $ (7,137) | $ 3,047 |
Note 1 - Basis of Presentation |
9 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] |
The accompanying condensed consolidated interim financial statements of RCM Technologies, Inc. and subsidiaries (“RCM” or the “Company”) are unaudited. The year-end consolidated balance sheet was derived from audited statements but does not include all disclosures required by accounting principles generally accepted in the United States. These statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission pertaining to reports on Form 10 -Q and should be read in conjunction with the Company's condensed consolidated financial statements and the notes thereto for the year ended December 28, 2019 included in the Company's Annual Report Form 10 -K for such period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.The condensed consolidated financial statements for the unaudited interim periods presented include all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for such interim periods. Results for the thirteen and thirty-nine week periods ended September 26, 2020 are not necessarily indicative of results that may be expected for the full year.Fiscal Year The Company follows a 52/53 week fiscal reporting calendar ending on the Saturday closest to December 31. The fiscal year ended December 28, 2019 ( fiscal 2019 ) was a 52 -week reporting year. The current fiscal year ending January 2, 2021 ( fiscal 2020 ) is a 53 -week reporting year. The fiscal quarters for the current year (fiscal 2020 ) and the prior year (fiscal 2019 ) align as follows:
Current Liquidity and Revolving Credit Facility Liquidity is a measure of our ability to meet potential cash requirements, maintain our assets, fund our operations, and meet the other general cash needs of our business. Our liquidity is impacted by general economic, financial, competitive, and other factors beyond our control. Our liquidity requirements consist primarily of funds necessary to pay our expenses, principally labor-costs, and other related expenditures. We generally satisfy our liquidity needs through cash provided by operations and, when necessary, our revolving line of credit from Citizens Bank. The Company expects to have positive cash flow over at least the next two quarters and has a great deal of flexibility to reduce its costs if it becomes necessary. The Company believes that it can satisfy its liquidity needs for at least the next twelve months.The Company's liquidity and capital resources as of September 26, 2020, included accounts receivable and total current asset balances of $33.0 million and $36.1 million, respectively. Current liabilities were $19.9 million as of September 26, 2020, $16.2 million less than total current assets.The Company experiences volatility in its daily cash flow and, at times, relies on the revolving line of credit to provide daily liquidity for the Company's financial operations. As of September 26, 2020, the Company was in compliance with all financial covenants contained in the Revolving Credit Facility. The Company believes that it will maintain compliance with its financial covenants for the foreseeable future. |
Note 2 - Use of Estimates and Uncertainties |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Basis of Presentation and Significant Accounting Policies [Text Block] |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The Company uses estimates to calculate an allowance for doubtful accounts on its accounts receivables, adequacy of reserves, goodwill impairment, if any, equity compensation, the tax rate applied and the valuation of certain assets and liability accounts. These estimates can be significant to the operating results and financial position of the Company. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information, including the potential future effects of COVID- 19. Management regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes.The Company has risk participation arrangements with respect to workers compensation and health care insurance. The amounts included in the Company's costs related to this risk participation are estimated and can vary based on changes in assumptions, the Company's claims experience or the providers included in the associated insurance programs. The Company can be affected by a variety of factors including uncertainty relating to the performance of the general economy, competition, demand for the Company's services, adverse litigation and claims and the hiring, training and retention of key employees. Fair Value of Financial Instruments The Company's carrying value of financial instruments, consisting primarily of accounts receivable, transit accounts receivable, accounts payable and accrued expenses, and transit accounts payable and borrowings under line of credit approximates fair value due to their liquidity or their short-term nature and the line of credit's variable interest rate. The Company does not have derivative products in place to manage risks related to foreign currency fluctuations for its foreign operations or for interest rate changes. |
Note 3 - Revenue Recognition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] |
The Company records revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers . Revenue is recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate service streams that we provide to our customers.We evaluate our revenue contracts with customers based on the five -step model under ASC 606: (1 ) Identify the contract with the customer; (2 ) Identify the performance obligations in the contract; (3 ) Determine the transaction price; (4 ) Allocate the transaction price to separate performance obligations; and (5 ) Recognize revenue when (or as) each performance obligation is satisfied.The Company derives its revenue from several sources. The Company's Engineering Services and Information Technology Services segments perform consulting and project solution services. The Healthcare segment specializes in long-term and short-term staffing and placement services to hospitals, schools and long-term care facilities amongst others. All of the Company's segments perform staff augmentation services and derive revenue from permanent placement fees. The majority of the Company's revenue is invoiced on a time and materials basis. The following table presents our revenue disaggregated by revenue source for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019:
Time and Material The Company's IT and Healthcare segments predominantly recognize revenue through time and material work while its Engineering segment recognizes revenue through both time and material and fixed fee work. The Company's time and material contracts are typically based on the number of hours worked at contractually agreed upon rates, therefore revenue associated with these time and materials contracts are recognized based on hours worked at contracted rates. Fixed fee From time to time and predominantly in our Engineering segment, the Company will enter into contracts requiring the completion of specific deliverables. The Company has master services agreements with many of its customers that broadly define terms and conditions. Actual services performed under fixed fee arrangements are typically delivered under purchase orders that more specifically define terms and conditions related to that fixed fee project. While these master services agreements can often span several years, the Company's fixed fee purchase orders are typically performed over six to nine month periods. In instances where project services are provided on a fixed-price basis, revenue is recorded in accordance with the terms of each contract. In certain instances, revenue is invoiced at the time certain milestones are reached, as defined in the contract. Revenue under these arrangements are recognized as the costs on these contracts are incurred. On an infrequent basis, amounts paid in excess of revenue earned and recognized are recorded as deferred revenue, included in accounts payable and accrued expenses on the accompanying condensed balance sheets. In other instances, revenue is billed and recorded based upon contractual rates per hour. Additionally, some contracts contain “Performance Fees” (bonuses) for completing a contract under budget. Performance Fees, if any, are recorded when earned. Some contracts also limit revenue and billings to specified maximum amounts. Provisions for contract losses, if any, are made in the period such losses are determined. For contracts where there is a specific deliverable and the work is not complete and the revenue is not recognized, the costs incurred are deferred as a prepaid asset. The associated costs are expensed when the related revenue is recognized.Permanent Placement Services The Company earns permanent placement fees from providing permanent placement services. These fees are typically based on a percentage of the compensation paid to the person placed with the Company's client. There was no deferred revenue as of September 26, 2020. Deferred revenue was $0.4 million as of December 28, 2019 and was included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet at that date. Revenue is recognized when the service has been performed. Deferred revenue may be recognized over a period exceeding one year from the time it was recorded on the balance sheet. For the thirty-nine week periods ended September 26, 2020 and September 28, 2019, respectively, the Company recognized revenue of $0.4 million and $0.2 million that was included in deferred revenue at the beginning of each respective reporting period. For the thirteen week period ended September 26, 2020, the Company recognized $0.3 million that was included in deferred revenue at the beginning of that reporting period. There was no revenue included in deferred revenue at the beginning of the September 28, 2019 reporting period. |
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
The Company's accounts receivable are comprised as follows:
Unbilled receivables primarily represent revenue earned whereby those services are ready to be billed as of the balance sheet ending date. Work-in-progress primarily represents revenue earned under contracts which the Company contractually invoices at future dates. From time to time, the Company's Engineering segment enters into agreements to provide, among other things, construction management and engineering services. Pursuant to these agreements, the Company a) may engage subcontractors to provide construction or other services; b) typically earns a fixed percentage of the total project value; and c) assumes no ownership or risks of inventory. Under the terms of the agreements, the Company is typically not required to pay the subcontractor until after the corresponding payment from the Company's end-client is received. Upon invoicing the end-client on behalf of the subcontractor or staffing agency the Company records this amount simultaneously as both a “transit account receivable” and “transit account payable” as the amount when paid to the Company is due to and generally paid to the subcontractor within a few days. The Company typically does not pay a given transit account payable until the related transit account receivable is collected. The Company is typically obligated to pay the subcontractor or staffing agency whether or not the client pays the Company. The Company's transit accounts payable generally exceeds the Company's transit accounts receivable but absolute amounts and spreads fluctuate significantly from quarter to quarter in the normal course of business. The transit accounts receivable was $0.2 million and related transit accounts payable was $0.9 million, for a net payable of $0.7 million, as of September 26, 2020. The transit accounts receivable was $4.9 million and related transit accounts payable was $4.6 million, for a net receivable of $0.3 million, as of December 28, 2019. The Company had a dispute with a customer that is a major utility in the United States. Both parties agreed in fiscal 2017 to resolve this dispute through binding arbitration. Arbitration hearings with this customer started in fiscal 2018. Essentially, the customer did not pay the balance of accounts receivable the Company believes were owed for certain disputed projects. As of December 28, 2019, the total amount of recorded receivables from this customer on these disputed projects was $14.1 million. Additionally, as part of the arbitration process, the customer asserted counter-claims of $10.3 million. The arbitrator rendered a decision in this dispute in April 2020, awarding the Company $7.4 million, and the arbitration award was paid during the thirteen week period ended September 26, 2020. The counter-claims asserted against the Company of $10.3 million were denied in their entirety. For the thirty-nine week period ended September 26, 2020, the Company recorded a charge of $8.4 million, including $6.7 million constituting the portion of the accounts receivable relating to the disputed projects that was not awarded by the arbitrator, $0.7 million from other projects with this customer that were not part of the arbitration, $0.8 million in professional fees related to the dispute and arbitration, and $0.2 million of transit accounts receivable associated with disputed projects that were part of the arbitration. The Company decided to write off the $0.7 million of accounts receivable from other projects not part of the arbitration for business reasons. |
Note 5 - Property and Equipment |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] |
Property and equipment are stated at cost and are depreciated on the straight-line method at rates calculated to provide for retirement of assets at the end of their estimated useful lives. The annual rates are 20% for computer hardware and software as well as furniture and office equipment. Leasehold improvements are amortized over the shorter of the estimated life of the asset or the lease term.Property and equipment are comprised of the following:
The Company periodically writes off fully depreciated and amortized assets. The Company wrote off fully depreciated and amortized assets of $1,529 and $1,803 during the thirty-nine week periods ended September 26, 2020 and September 28, 2019, respectively. Depreciation and amortization expense of property and equipment for the thirty-nine week periods ended September 26, 2020 and September 28, 2019 was $793 and $944, respectively. Depreciation and amortization of property and equipment for the thirteen week periods ended September 26, 2020 and September 28, 2019 was $292 and $304, respectively. |
Note 6 - Acquisitions |
9 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] |
The Company has acquired numerous companies throughout its history and those acquisitions have generally included significant future contingent consideration. The Company gives no assurance that it will make acquisitions in the future or that if it does make acquisitions, such acquisitions will be successful.Future Contingent Payments As of September 26, 2020, the Company had two active acquisition agreements whereby additional contingent consideration may be earned by the former shareholders: 1 ) effective October 1, 2017, the Company acquired all of the stock of PSR Engineering Solutions d.o.o. Beograd (Voždovac) (“PSR”) and 2 ) effective September 30, 2018, the Company acquired certain assets of Thermal Kinetics Engineering, PLLC and Thermal Kinetics Systems, LLC (together, “TKE”). The Company estimates future contingent payments at September 26, 2020 as follows:
Estimates of future contingent payments are subject to significant judgment and actual payments may materially differ from estimates. Potential future contingent payments to be made to all active acquisitions after September 26, 2020 are capped at a cumulative maximum of $5.7 million. The Company estimates future contingent consideration payments based on forecasted performance and recorded the fair value of those expected payments as of September 26, 2020. During the thirty-nine week period ended September 26, 2020, the Company measured contingent consideration at fair value on a non-recurring basis. Contingent consideration related to acquisitions are recorded at fair value level 3 due to the lack of observable market inputs. Changes in fair value are recorded in other (expense) income, net.For acquisitions that involve contingent consideration, the Company records a liability equal to the fair value of the estimated contingent consideration obligation as of the acquisition date. The Company determines the acquisition date fair value of the contingent consideration based on the likelihood of paying the additional consideration. The fair value is estimated using projected future operating results and the corresponding future earn-out payments that can be earned upon the achievement of specified operating objectives and financial results by acquired companies using Level 3 inputs and the amounts are then discounted to present value. These liabilities are measured quarterly at fair value, and any change in the fair value of the contingent consideration liability is recognized in the condensed consolidated statements of comprehensive (loss) income. During the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the condensed consolidated statements of comprehensive (loss) income.The Company paid $0.3 million of contingent consideration during the thirty-nine week period ended September 26, 2020 and paid $0.6 million during the thirty-nine week period ended September 28, 2019. |
Note 7 - Goodwill |
9 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||
Goodwill Disclosure [Text Block] |
Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired in business combinations. The Company tests goodwill for impairment on an annual basis as of the last day of the Company's fiscal year or more frequently if events occur or circumstances change indicating that the fair value of goodwill may be below the carrying amount. During the thirty-nine week period ended September 26, 2020, the Company reviewed the carrying value of goodwill due to the events and circumstances surrounding the COVID-19 pandemic. While COVID-19 has negatively impacted the Company, and the Company expects this negative impact to continue at least through the balance of fiscal 2020, the Company did not conclude in such review that this negative impact is permanent. The Company has determined that no other indicators of impairment of goodwill existed during the thirty-nine week periods ended September 26, 2020 and September 28, 2019. As such, no impairment loss on the Company's goodwill during the thirty-nine week period ended September 26, 2020 was recorded as a result of such review.The carrying amount of goodwill as of September 26, 2020 and December 28, 2019 is as follows:
|
Note 8 - Intangible Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] |
The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the Company determines that it is probable that undiscounted future cash flows will not be sufficient to recover an asset's carrying amount, the asset is written down to its fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or fair value less cost to sell. The Company's intangible assets consist of customer relationships and non-compete agreements. During the thirty-nine week period ended September 26, 2020, the Company reviewed the carrying value of its intangible assets due to the events and circumstances surrounding the COVID-19 pandemic. While COVID-19 has negatively impacted the Company, and the Company expects this negative impact to continue at least through the balance of fiscal 2020, the Company does not believe at this time that this negative impact is permanent. As such, no impairment loss on the Company's intangible assets during the thirty-nine week period ended September 26, 2020 was recorded as a result of such review.All of the Company's intangible assets are associated with the Engineering segment. Intangible assets other than goodwill are amortized over their useful lives. Intangible assets are carried at cost, less accumulated amortization.
Amortization expense of intangible assets for the thirty-nine week periods ended September 26, 2020 and September 28, 2019 was $240 and $247, respectively. Amortization expense of intangible assets for the thirteen week periods ended September 26, 2020 and September 28, 2019 was $80 and $82, respectively. |
Note 9 - Line of Credit |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Debt Disclosure [Text Block] |
The Company and its subsidiaries amended and restated its Revolving Credit Facility with Citizens Bank of Pennsylvania on October 18, 2019. As amended and restated, the Revolving Credit Facility provides for a $45.0 million revolving credit facility, has no sub-limit for letters of credit, and expires on August 8, 2023. On September 29, 2020, the Company entered into an amendment to its Revolving Credit Facility. The amendment (i) modifies certain aspects of the financial covenants under the Loan Agreement, including the manner in which the measurement periods for certain components of the financial covenants are determined, (ii) modifies the required compliance levels for certain ratios under the Loan Agreement, and (iii) permitted the repayment of $2.2 million of indebtedness to a third party incurred in connection with the previously disclosed June 2020 repurchase of stock.Borrowings under the Revolving Credit Facility bear interest at one of two alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, typically borrowed in fixed 30 -day increments or (ii) the agent bank's prime rate generally borrowed over shorter durations. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is not drawn. Unused line fees are recorded as interest expense. The effective weighted average interest rate, including unused line fees, for the thirty-nine week periods ended September 26, 2020 and September 28, 2019 were 2.9% and 4.6%, respectively.All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company's ability to borrow in order to pay dividends. As of September 26, 2020, the Company was in compliance with all covenants contained in the Revolving Credit Facility (as amended). The Company believes that it will maintain compliance with its financial covenants for the foreseeable future. Borrowings under the line of credit as of September 26, 2020 and December 28, 2019 were $13.3 million and $34.8 million, respectively. At September 26, 2020 and December 28, 2019 there were letters of credit outstanding for $1.7 million and $1.6 million, respectively. At September 26, 2020, the Company had availability for additional borrowings under the Revolving Credit Facility of $30.0 million.Impact to Line of Credit from COVID- 19 The Company is negatively impacted by COVID- 19 as more fully described in Footnote 19 as well as the Segment Discussion, and Liquidity and Capital Resources sections in Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company believes that its current line of credit is adequate to provide the necessary liquidity while COVID-19 impacts its operations. While the Company does expect to be in compliance with its financial covenants in the line of credit for the foreseeable future, the Company can give no assurance that the line of credit will be available to the Company. |
Note 10 - Per Share Data |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
The Company uses the treasury stock method to calculate the weighted-average shares used for diluted earnings per share. The number of common shares used to calculate basic and diluted earnings (loss) per share for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019 was determined as follows:
For all periods presented, there were no not included in the calculation of common stock equivalents as there were no stock options outstanding.Unissued shares of common stock were reserved for the following purposes:
|
Note 11 - Share-based Compensation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Text Block] |
At September 26, 2020, the Company had two share-based employee compensation plans. The Company measures the fair value of share-based awards, if and when granted, based on the Black-Scholes method and using the closing market price of the Company's common stock on the date of grant. Awards vest over periods ranging from one to three years and expire within 10 years of issuance. Share-based compensation expense related to time-based awards is amortized in accordance with applicable vesting periods using the straight-line method. The Company expenses performance-based awards only when the performance metrics are likely to be achieved and the associated awards are therefore likely to vest. Performance-based share awards that are likely to vest are also expensed on a straight-line basis over the vesting period but may vest on a retroactive basis or be reversed, depending on when it is determined that they are likely to vest, or in the case of a reversal when they are later determined to be unlikely to vest.Share-based compensation expense for the thirteen week periods ended September 26, 2020, and September 28, 2019 was $147 and $24, respectively. Share-based compensation expense for the thirty-nine week periods ended September 26, 2020, and September 28, 2019 was $383 and $472, respectively. Neither of the thirty-nine week periods ended September 26, 2020 and September 28, 2019 includes expense associated with performance-based restricted stock units. For the thirty-nine week period ended September 26, 2020, 40,000 performance-based restricted stock units vested, for which the expense was recognized in the fourth quarter of fiscal 2019. As of September 26, 2020, there were no performance-based restricted stock units outstanding.As of September 26, 2020, the Company had $0.7 million of total unrecognized compensation cost related to all time-based non-vested share-based awards and performance-based restricted stock units outstanding and deemed as likely to vest. The Company expects to recognize this expense over approximately three years. These amounts do not include a) performance-based restricted stock units deemed unlikely to vest, b) the cost of any additional share-based awards granted in future periods or c) the impact of any potential changes in the Company's forfeiture rate. Incentive Share-Based Plans 2014 Omnibus Equity Compensation Plan (the 2014 Plan)The 2014 Plan, approved by the Company's shareholders in December 2014, provides for the issuance of shares of the Company's common stock to officers, non-employee directors, employees of the Company and its subsidiaries or consultants and advisors utilized by the Company. In fiscal 2016, the Company amended and restated the 2014 Plan with shareholder approval to increase the aggregate number of shares of stock reserved for issuance under the Plan, originally 625,000, by an additional 500,000 shares so that the total number of shares of stock reserved for issuance under the Plan is 1,125,000 shares. The expiration date of the Plan is December 1, 2026. The Compensation Committee of the Board of Directors determines the vesting period at the time of grant.As of September 26, 2020, under the 2014 Plan, 454,386 time-based shares were outstanding, there were no performance-based restricted share units outstanding and 5,573 shares were available for awards thereunder.The market value of equity grants issued for the thirteen week periods ended September 26, 2020 and September 28, 2019 was $108 and $0 respectively. The market value of equity grants for the thirty-nine periods ended September 26, 2020 and September 28, 2019 was $364 and $300 respectively.Employee Stock Purchase Plan The Company implemented the 2001 Employee Stock Purchase Plan (the “Purchase Plan”) with shareholder approval, effective January 1, 2001. Under the Purchase Plan, employees meeting certain specific employment qualifications are eligible to participate and can purchase shares of common stock semi-annually through payroll deductions at the lower of 85% of the fair market value of the stock at the commencement or end of the offering period. The purchase plan permits eligible employees to purchase shares of common stock through payroll deductions for up to 10% of qualified compensation.In fiscal 2015, the Company amended the Purchase Plan with shareholder approval to increase the aggregate number of shares of stock reserved for issuance or transfer under the Plan by an additional 300,000 shares so that the total number of shares of stock reserved for issuance or transfer under the Plan shall be 1,100,000 shares and to extend the expiration date of the Plan to December 31, 2025. In fiscal 2018, the Company amended the Purchase Plan with shareholder approval to increase the aggregate number of shares of stock reserved for issuance or transfer under the Plan by an additional 300,000 shares so that the total number of shares of stock reserved for issuance or transfer under the Plan shall be 1,400,000 shares.The Company has two offering periods in the Purchase Plan coinciding with the Company's first two fiscal quarters and the last two fiscal quarters. Actual shares are issued on the first business day of the subsequent offering period for the prior offering period payroll deductions. The number of shares issued on June 29, 2020 ( the first business day following the previous offering period) was 60,732. As of September 26, 2020, there were 149,894 shares available for issuance under the Purchase Plan.Time-Based Restricted Stock Units From time-to-time the Company issues time-based restricted stock units. These time-based restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period assuming the grantee's restricted stock unit fully vests. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheet. As of September 26, 2020, there were no accrued dividends. Dividends for time-based restricted stock units that ultimately do not vest are forfeited.To date, the Company has issued time-based restricted stock units only under its 2007 Omnibus Equity Compensation Plan and the 2014 Plan. The 2007 Plan has expired and there are no time-based restricted stock units outstanding thereunder. The following summarizes the activity in the time-based restricted stock units under the 2014 Plan during the thirty-nine week period ended September 26, 2020:
Based on the closing price of the Company's common stock of $1.39 per share on September 25, 2020 ( the last trading day prior to September 26, 2020), the intrinsic value of the time-based non-vested restricted stock units at September 26, 2020 was approximately $632. As of September 26, 2020, there was approximately $682 of total unrecognized compensation cost related to time-based restricted stock units, which is expected to be recognized over the average weighted remaining vesting period of the restricted stock units.Performance Based Restricted Stock Units From time-to-time the Company issues performance-based restricted stock units to its executives. Performance-based restricted stock units are typically vested based on certain multi-year performance metrics as determined by the Board of Directors Compensation Committee. These performance-based restricted stock units typically include dividend accrual equivalents, which means that any dividends paid by the Company during the vesting period become due and payable after the vesting period on any stock units that actually vest, if any. Dividends for these grants are accrued on the dividend payment dates and included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheet. As of September 26, 2020, there were no accrued dividends for performance-based restricted stock units. Dividends for performance-based restricted stock units that ultimately do not vest are forfeited. To date, the Company has issued performance-based restricted stock units only under the 2014 Plan. The following summarizes the activity in the performance-based restricted stock units during the thirty-nine week period ended September 26, 2020:
As of September 26, 2020, there were no outstanding performance-based restricted stock units. The Company will reassess at each reporting date whether achievement of any performance condition is probable and would begin recognizing additional compensation cost if and when achievement of the performance condition becomes probable. The Company will then recognize the appropriate expense cumulatively in the year performance becomes probable and recognize the remaining compensation cost over the remaining requisite service period. If at a later measurement date the Company determines that performance-based restricted stock units deemed as likely to vest are deemed as unlikely to vest, the expense recognized will be reversed. |
Note 12 - Treasury Stock Transactions |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Treasury Stock [Text Block] |
On June 2, 2020, the Company entered into a stock purchase agreement with certain stockholders of the Company, whereby the Company purchased an aggregate of 1,858,139 shares of the Company's common stock for a negotiated purchase price of $1.20 per share or $2.2 million in total. The negotiated price of $1.20 per share was less than the lowest trading price of the stock on the day of the repurchase. The consideration paid by the Company consisted entirely of an unsecured subordinated promissory note for $2.2 million. The note accrues interest at an annual rate of 9.0%, compounded annually, payable quarterly in arrears commencing on September 1, 2020 and continuing on each December 1, March 1, June 1 and September 1 thereafter, and initially had a maturity date of August 10, 2023 . September 25, 2020, the Company retired the subordinated promissory note in the amount of $2.2 million.The shares repurchased on June 2, 2020 were not purchased under a stock repurchase plan. The Company, at this time, does not have an open repurchase plan. The Company did not repurchase any shares in the comparable prior year period. |
Note 13 - New Accounting Standards and Updates from the Securities Exchange Commission ("SEC") |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Accounting Standards Update and Change in Accounting Principle [Text Block] |
In June 2016, the FASB issued ASU 2016 -13, Financial Instruments - Credit Losses (Topic The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. In 326 ). February 2020, the FASB issued ASU 2020 -02, Financial Instruments-Credit Losses (Topic which amends the effective date of the original pronouncement for smaller reporting companies. ASU 326 ) and Leases (Topic 842 ) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016 -02, Leases (Topic 842 ), 2016 -13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2022. The Company believes the adoption will modify the way the Company analyzes financial instruments, but it does not anticipate a material impact on results of operations. The Company is in the process of determining the effects the adoption will have on its condensed consolidated financial statements.In March 2020, the FASB issued ASU No. 2020 -04, Reference Rate Reform (Topic This standard only applies to contracts and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The Company 848 ): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements and related disclosures. |
Note 14 - Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] |
The Company follows “Disclosures about Segments of an Enterprise and Related Information,” which establishes standards for companies to report information about operating segments, geographic areas and major customers. The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies (see Note 1 to the Company's Condensed Consolidated Financial Statements included in its Annual Report on Form 10 -K for the year ended December 28, 2019). Segment operating (loss) income includes selling, general and administrative expenses directly attributable to that segment as well as charges for allocating corporate costs to each of the operating segments. The following tables reflect the results of the reportable segments consistent with the Company's management system:
The Company derives a majority of its revenue from offices in the United States. Revenue reported for each operating segment are all from external customers. The Company is domiciled in the United States and its segments operate in the United States, Canada, Puerto Rico and Serbia. Revenue by geographic area for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019 are as follows:
Total assets by geographic area as of the reported periods are as follows:
|
Note 15 - Income Taxes |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Income Tax Disclosure [Text Block] |
The Company recognized $2.8 million of income tax benefit for the thirty-nine week period ended September 26, 2020, as compared to an income tax expense of $0.3 million for the comparable prior year period. The consolidated effective income tax rate for the current period was 28.2% as compared to 25.9% for the comparable prior year period. The projected fiscal 2020 income tax rates as of September 26, 2020, were approximately 27.0%, 26.7% and 15.1% in the United States, Canada and Serbia, respectively. The relative income or loss generated in each jurisdiction can materially impact the overall effective income tax rate of the Company, particularly the ratio of Canadian and Serbian pretax income versus U.S. pretax income. The comparable prior year period estimated income tax rates were 28.3%, 26.5% and 15.0% in the United States, Canada and Serbia, respectively. Differences between the effective tax rate and the applicable U.S. federal statutory rate may arise, primarily from the effect of state and local income taxes, share-based compensation, and potential tax credits available to the Company. The actual 2020 effective tax rate may vary from the estimate depending on the actual operating income earned in various jurisdictions, the potential availability of tax credits, and the exercise of stock options and vesting of share-based awards. The Company's estimate for the 2020 effective tax rate has not been adjusted for any potential impact related to COVID-19. |
Note 16 - Contingencies |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Contingencies Disclosure [Text Block] |
From time to time, the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. As such, the Company is required to assess the likelihood of any adverse outcomes to these matters as well as potential ranges of losses and possible recoveries. The Company may not be covered by insurance as it pertains to some or all of these matters. A determination of the amount of the provision required for these commitments and contingencies, if any, which would be charged to earnings, is made after careful analysis of each matter. Once established, a provision may change in the future due to new developments or changes in circumstances and could increase or decrease the Company's earnings in the period that the changes are made. Asserted claims as of September 26, 2020 are uncertain as no open claims have asserted any specific amounts. As of September 26, 2020, the Company did not have an accrual for any such liabilities. As described in the following paragraph, these claims were denied in their entireties as a result of the arbitration.The Company had a dispute with a customer that is a major utility in the United States. Both parties agreed in fiscal 2017 to resolve this dispute through binding arbitration. Arbitration hearings with this customer started in fiscal 2018. Essentially, the customer did not pay the balance of accounts receivable the Company believes were owed for certain disputed projects. As of December 28, 2019, the total amount of recorded receivables from this customer on these disputed projects was $14.1 million. Additionally, as part of the arbitration process, the customer asserted counter-claims of $10.3 million. The arbitrator rendered a decision in this dispute in April 2020, awarding the Company $7.4 million, and the arbitration award was paid during the thirteen week period ended September 26, 2020. The counter-claims asserted against the Company of $10.3 million were denied in their entirety. For the thirty-nine week period ended September 26, 2020, the Company recorded a charge of $8.4 million, including $6.7 million constituting the portion of the accounts receivable relating to the disputed projects that was not awarded by the arbitrator, $0.7 million from other projects with this customer that were not part of the arbitration, $0.8 million in professional fees related to the dispute and arbitration, and $0.2 million of transit accounts receivable associated with disputed projects that were part of the arbitration. The Company decided to write off the $0.7 million of accounts receivable from other projects not part of the arbitration for business reasons.The Company is also subject to other pending legal proceedings and claims that arise from time to time in the ordinary course of its business, which may not be covered by insurance. |
Note 17 - Leases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Leases [Text Block] |
Leases are recorded in accordance with FASB ASC 842, Leases which requires lessees to recognize a right-of-use (“ROU”) asset and an operating right of use liability for all leases with terms greater than 12 months and requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases.The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also consists of any lease incentives received. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. The Company has lease agreements which require payments for lease and non-lease components. The Company has elected to account for these as a single lease component with the exception of its real estate leases.The components of lease expense were as follows:
Supplemental Cash Flow information related to leases was as follows:
Supplemental Balance Sheet information as of September 26, 2020 and December 28, 2019 related to leases was as follows:
Maturities of lease liabilities are as follows:
|
Note 18 - Stockholder Rights Plan |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Stockholders' Equity Note Disclosure [Text Block] |
On May 22, 2020, the Board of Directors of the Company approved a stockholder rights plan (the “Rights Plan”) and declared a dividend distribution to stockholders of record as of the close of business on June 2, 2020 of one preferred stock purchase right (a “Right”) for each outstanding share of Common Stock of the Company. Each Right entitles the holder to purchase from the Company a unit consisting of one one -hundredth of a share (a “Unit”) of a newly-authorized series of junior participating preferred stock of the Company, upon the occurrence of certain events, as more fully described below, at a purchase price of $5.60 per Unit. In connection with the adoption of the stockholder rights plan, the Company designated 250,000 shares of the Company's authorized shares of Preferred Stock, par value $1.00, as Series A-3 Junior Participating Preferred Shares, none 3 Preferred Share shall entitle the holder 100 votes on all matters submitted to a vote of the stockholders of the Company, subject to adjustment for future dividends and combinations of common stock. The holders of Series A-3 Preferred Shares and the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Company. The Series A-3 Preferred Shares shall, after issuance, be entitled to receive quarterly dividends in an amount equal to the greater of $50.00 per share or an amount per share, subject to adjustment, equal to 100 times the aggregate per share amount of all non-cash dividends or other distributions other than a dividend payable in shares of common stock or a subdivision of the outstanding shares of common stock declared on the common stock since the immediately preceding quarterly dividend payment date of the Series A-3 Preferred Shares, or, with respect to the first such quarterly dividend payment date, since the first issuance of any share or fraction of a share of the Series A-3 Preferred Shares. The Series A-3 Preferred Shares shall rank junior to all other series of the Company's Preferred Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. The Series A-3 Preferred Shares shall not be redeemable. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series A-3 Preferred Shares shall be entitled to receive the greater of $100.00 per share, plus accrued dividends, or an amount per share, subject to adjustment, equal to 100 times the aggregate amount to be distributed per share to holders of Common Stock. In the event the Company shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such event the Series A-3 Preferred Shares shall at the same time be similarly exchanged or changed in an amount per share, subject to adjustment, equal to 100 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. These preferences are protected by customary anti-dilution provisions.Initially, the Rights are not exercisable and are attached to each existing outstanding share of the Company's Common Stock. The Rights will separate and become exercisable if a person or group acquires 10% or more of the Company's Common Stock in a transaction, including the open market purchase of shares, not approved by our Board. If a person or group acquires 10%, each Right will entitle its holder (other than such person or members of such group) to purchase, at the Right's exercise price (subject to adjustment as provided in the Rights Plan), a number of shares of the Company's Common Stock having a then-current market value of twice the exercise price. The Rights Plan will cause substantial dilution to a person or group that attempts to acquire control of the Company on terms or in a manner not approved by our Board.The initial issuance of the Rights as a dividend had no financial accounting or reporting impact. The fair value of the Rights was nominal because the Rights were not exercisable when issued and no value is attributable to them. Additionally, the Rights do not meet the definition of a liability under generally accepted accounting principles in the United States and are therefore not accounted for as a long-term obligation. Accordingly, unless the Rights become exercisable as discussed above, the Rights Plan has no impact on the Company's Condensed Consolidated Financial Statements. The Company's Board of Directors may redeem the Rights for $0.001 per Right at any time before an event that causes the Rights to become exercisable. The Rights will expire on May 22, 2021, unless the Rights have previously been redeemed by the Board of Directors.The Rights Plan is not intended to interfere with any merger, tender or exchange offer or other business combination approved by our Board. Nor does the Rights Plan prevent our |
Note 19 - COVID-19 |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Notes to Financial Statements | |||
Effect of COVID-19 Pandemic [Text Block] |
In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19 ) as a pandemic, which continues to present various health, business and other challenges throughout the United States. As a result, we have temporarily closed most of our office locations, with most of our workforce working from home, and have seen a reduction in customer demand, all resulting in a negative impact on Company revenue, gross profit, and operating income. The duration and ultimate magnitude of the disruption remains uncertain. Therefore, while we experienced a negative impact during the first half of fiscal 2020, we expect this matter to negatively impact our business, results of operations, and financial position also through at least the second half of fiscal 2020 and possibly beyond, and the related financial impact cannot be reasonably estimated at this time. Please see more detailed disclosure by segment in our Segment Discussion and the impact to our condensed consolidated financial position under Financial Activities under Liquidity and Capital Resources, all in Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Note 3 - Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] |
|
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] |
|
Note 5 - Property and Equipment (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] |
|
Note 6 - Acquisitions (Tables) |
9 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] |
|
Note 7 - Goodwill (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] |
|
Note 8 - Intangible Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] |
|
Note 10 - Per Share Data (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unissued Shares of Common Stock [Table Text Block] |
|
Note 11 - Share-based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] |
|
Note 14 - Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] |
|
Note 17 - Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cash Flow Information [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Balance Sheet Information [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Liability, Maturity [Table Text Block] |
|
Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 32,986 | $ 59,760 |
Assets, Current, Total | 36,121 | 70,657 |
Liabilities, Current, Total | 19,930 | $ 21,408 |
Excess of Current Assets over Current Liabilities | $ 16,200 |
Note 3 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
|
Contract with Customer, Liability, Revenue Recognized | $ 300 | $ 0 | $ 400 | $ 200 | |
Accounts Payable and Accrued Liabilities [Member] | |||||
Contract with Customer, Liability, Total | $ 0 | $ 0 | $ 400 |
Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable - Accounts Receivable (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Allowance for sales discounts and doubtful accounts | $ (1,750) | $ (1,725) |
Accounts receivable, net | 32,986 | 59,760 |
Billed Revenues [Member] | ||
Accounts receivable, current | 20,553 | 29,214 |
Unbilled Revenues [Member] | ||
Accounts receivable, current | 10,424 | 13,824 |
Work In Progress [Member] | ||
Accounts receivable, current | 3,759 | 4,352 |
Accounts Receivable Subject to Arbitration [Member] | ||
Accounts receivable, current | $ 14,095 |
Note 5 - Property and Equipment (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Jun. 27, 2020 |
|
Annual Depreciation Rate | 20.00% | ||||
Write Off of Fully Depreciated Property and Equipment | $ 1,529 | $ 1,803 | |||
Depreciation, Total | $ 292 | $ 304 | $ 793 | $ 944 |
Note 5 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Property and equipment | $ 5,125 | $ 6,255 |
Less: accumulated depreciation and amortization | 2,766 | 3,538 |
Property and equipment, net | 2,359 | 2,717 |
Computers and Systems [Member] | ||
Property and equipment | 4,635 | 5,628 |
Equipment and Furniture [Member] | ||
Property and equipment | 264 | 319 |
Leasehold Improvements [Member] | ||
Property and equipment | $ 226 | $ 308 |
Note 6 - Acquisitions (Details Textual) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,700 | |
Payment for Contingent Consideration Liability, Financing Activities | $ 345 | $ 574 |
Note 6 - Acquisitions - Maximum Deferred Consideration Payments (Details) $ in Thousands |
Sep. 26, 2020
USD ($)
|
---|---|
January 2, 2021 (after September 26, 2020) | |
January 1, 2022 | 500 |
December 31, 2022 | 2,322 |
Estimated future contingent consideration payments | $ 2,822 |
Note 7 - Goodwill (Details Textual) $ in Thousands |
9 Months Ended |
---|---|
Sep. 26, 2020
USD ($)
| |
Goodwill, Impairment Loss | $ 0 |
Note 7 - Goodwill - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Goodwill | $ 16,354 | $ 16,354 |
Engineering [Member] | ||
Goodwill | 11,918 | |
Specialty Health Care [Member] | ||
Goodwill | 2,398 | |
Information Technology [Member] | ||
Goodwill | $ 2,038 |
Note 8 - Intangible Assets (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Impairment of Intangible Assets (Excluding Goodwill), Total | $ 0 | |||
Amortization of Intangible Assets, Total | $ 80 | $ 82 | $ 240 | $ 247 |
Note 8 - Intangible Assets - Intangible Assets by Class (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Intangible assets, net | $ 176 | $ 416 |
Restricted Covenants [Member] | ||
Intangible assets, net | 17 | 28 |
Customer Relationships [Member] | ||
Intangible assets, net | $ 159 | $ 388 |
Note 9 - Line of Credit (Details Textual) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 25, 2020 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
Oct. 18, 2019 |
|
Repayments of Subordinated Debt, Total | $ 2,230 | ||||
Long-term Line of Credit, Noncurrent | $ 13,258 | $ 34,761 | |||
Note Issued to Acquire Treasury Stock [Member] | |||||
Repayments of Subordinated Debt, Total | $ 2,200 | ||||
Citizens Bank of Pennsylvania [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 45,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.90% | 4.60% | |||
Long-term Line of Credit, Noncurrent | $ 13,300 | 34,800 | |||
Letters of Credit Outstanding, Amount | 1,700 | $ 1,600 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 30,000 |
Note 10 - Per Share Data (Details Textual) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | 0 | 0 |
Note 10 - Per Share Data - Weighted Average Number of Common Shares (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Basic weighted average shares outstanding (in shares) | 11,444,697 | 12,955,198 | 12,393,058 | 12,897,303 |
Dilutive effect of outstanding restricted share units (in shares) | 45,411 | 63,416 | 34,181 | 53,628 |
Weighted average dilutive shares outstanding (in shares) | 11,490,108 | 13,018,614 | 12,427,739 | 12,950,931 |
Note 10 - Per Share Data - Unissued Shares of Common Stock Were Reserved for the Following Purposes (Details) - shares |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Future grants of options or shares (in shares) | 5,573 | 268,326 |
Shares reserved for employee stock purchase plan (in shares) | 149,894 | 267,877 |
Total (in shares) | 609,853 | 927,928 |
Time-based Restricted Stock Units [Member] | ||
Restricted stock units outstanding (in shares) | 454,386 | 151,725 |
Performance-based Restricted Stock Units [Member] | ||
Restricted stock units outstanding (in shares) | 240,000 |
Note 12 - Treasury Stock Transactions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 25, 2020 |
Jun. 02, 2020 |
Jun. 27, 2020 |
Sep. 26, 2020 |
Sep. 29, 2019 |
Sep. 28, 2019 |
|
Treasury Stock, Shares, Acquired (in shares) | 1,858,139 | |||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 1.20 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 2,200 | $ 2,230 | ||||
Repayments of Subordinated Debt, Total | $ 2,230 | |||||
Stock Repurchase Program, 2016 [Member] | ||||||
Treasury Stock, Shares, Acquired (in shares) | 0 | |||||
Note Issued to Acquire Treasury Stock [Member] | ||||||
Notes Issued | $ 2,200 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||||
Repayments of Subordinated Debt, Total | $ 2,200 | |||||
Debt Instrument, Maturity Date | Aug. 10, 2023 |
Note 14 - Segment Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Revenues | $ 31,561 | $ 40,250 | $ 109,246 | $ 142,550 |
UNITED STATES | ||||
Revenues | 25,628 | 34,810 | 91,793 | 124,356 |
CANADA | ||||
Revenues | 3,543 | 3,682 | 11,186 | 12,770 |
PUERTO RICO | ||||
Revenues | 1,433 | 1,215 | 4,018 | 3,627 |
SERBIA | ||||
Revenues | $ 957 | $ 543 | $ 2,249 | $ 1,797 |
Note 14 - Segment Information - Total Assets by Geographic Area (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
Sep. 28, 2019 |
---|---|---|---|
Total assets | $ 62,553 | $ 96,173 | $ 91,740 |
UNITED STATES | |||
Total assets | 39,760 | 75,724 | |
CANADA | |||
Total assets | 14,828 | 13,770 | |
PUERTO RICO | |||
Total assets | 2,105 | 2,066 | |
SERBIA | |||
Total assets | $ 5,840 | $ 4,613 |
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Income Tax Expense (Benefit), Total | $ (167) | $ 70 | $ (2,815) | $ 255 |
Effective Income Tax Rate Reconciliation, Percent, Total | 28.20% | 25.90% | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||||
Effective Income Tax Rate Reconciliation, Percent, Total | 27.00% | 28.30% | ||
Foreign Tax Authority [Member] | Canada Revenue Agency [Member] | ||||
Effective Income Tax Rate Reconciliation, Percent, Total | 26.70% | 26.50% | ||
Foreign Tax Authority [Member] | Ministry of Finance, Republic of Serbia [Member] | ||||
Effective Income Tax Rate Reconciliation, Percent, Total | 15.10% | 15.00% |
Note 17 - Leases - Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Operating lease cost | $ 640 | $ 654 | $ 1,943 | $ 1,643 |
Finance lease cost, Amortization of ROU assets | 120 | 72 | 275 | 218 |
Finance lease cost, Interest on lease liabilities | 4 | 1 | 8 | 4 |
Total finance lease cost | $ 124 | $ 73 | $ 283 | $ 222 |
Note 17 - Leases - Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Operating cash flows from operating leases | $ 659 | $ 665 | $ 1,986 | $ 1,605 |
Operating cash flows from finance leases | 2 | 1 | 6 | 4 |
Financing cash flows from finance leases | 167 | 72 | 328 | 216 |
Operating leases | 318 | 774 | 600 | 7,756 |
Finance leases | $ 258 | $ 258 |
Note 17 - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Operating lease right of use assets | $ 4,686 | $ 5,820 |
Operating right of use liability - current | (1,984) | (2,134) |
Operating right of use liability - non-current | (2,922) | (3,921) |
Total operating lease liabilities | (4,906) | (6,055) |
Property and equipment - (ROU assets) | 1,140 | 985 |
Accumulated depreciation | (655) | (475) |
Property and equipment, net | 485 | 510 |
Finance lease liability - current | (311) | (315) |
Finance lease liability - non-current | (115) | (189) |
Total finance lease liabilities | $ (426) | $ (504) |
Operating leases (in years) (Year) | 1 year 229 days | 2 years 197 days |
Finance leases (in years) (Year) | 1 year 204 days | 1 year 226 days |
Operating leases | 4.24% | 4.11% |
Finance leases | 2.47% | 1.78% |
Note 17 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
2020, operating leases | $ 594 | |
2020, finance leases | 75 | |
2021, operating leases | 2,006 | |
2021, finance leases | 255 | |
2022, operating leases | 1,481 | |
2022, finance leases | 108 | |
2023, operating leases | 910 | |
2023, finance leases | ||
2024, operating leases | 187 | |
2024, finance leases | ||
Thereafter, operating leases | ||
Thereafter, finance leases | ||
Total lease payments, operating leases | 5,178 | |
Total lease payments, finance leases | 438 | |
Less: imputed interest, operating leases | (272) | |
Less: imputed interest, finance leases | (12) | |
Total, operating leases | 4,906 | $ 6,055 |
Total, finance leases | $ 426 | $ 504 |
&PO=V]R:W-H965T
M 3' ^ P/_(]>R
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M #W.R_'%JM[/J =E:>+Y94.?&*B= )UO%5W>TXLS&PO=V]R:W-H965T )/O][*_D'G;@)>NLK; *Z-DZE>(8)Q%G.(N6^CK(MYRX4K:8X9GDBY
M)B\?4!JSF+_5VI]
M<>H[#.LVY\27\VFW*_8WZ+_*JW%SN&:BG$8MKS(W;L@TZ9+I:+J;3%_'85=L
M>O37J)7WVY>Y7;>^8>=:74ASZS\>,-6BO.H;=KO:?I\XKZ_E6_'ZX\8'86X5
M.C*7