10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

FORM 10-Q

______________

x Quarterly report pursuant to section 13 or 15(d) of the Securities Act of 1934.

For the quarterly period ended September 30, 2013

or

¨ Transition report pursuant to section 13 or 15(d) of the Securities Act of 1934.

Commission File No. 0-3026

__________________

PARADISE, INC.

________________

INCORPORATED IN FLORIDA

I.R.S. EMPLOYER IDENTIFICATION NO. 59-1007583

1200 DR. MARTIN LUTHER KING, JR. BLVD.,

PLANT CITY, FLORIDA 33563

(813) 752-1155

__________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   x No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes   ¨ No   x

The number of shares outstanding of each of the issuer’s classes of common stock as of November 14, 2013 was 519,600 shares.

PARADISE, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2013

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
	ITEM 1.
	CONSOLIDATED BALANCE SHEETS:
	Assets
	As of September 30, 2013 (Unaudited), December 31, 2012 and September 30, 2012 (Unaudited)	2
	Liabilities and Stockholders’ Equity
	As of September 30, 2013 (Unaudited), December 31, 2012 and September 30, 2012 (Unaudited)	3
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED):
	For the three-month periods ended September 30, 2013 and 2012	4
	For the nine-month periods ended September 30, 2013 and 2012	5
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED):
	For the nine-month periods ended September 30, 2013 and 2012	6
	NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	7 – 9
	ITEM 2.
	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	10 – 13
	ITEM 3.
	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK – N/A	13
	ITEM 4.
	CONTROLS AND PROCEDURES	13
PART II.	OTHER INFORMATION
	ITEMS 1 – 6.	14
SIGNATURES		15

PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	AS OF				AS OF
	SEPTEMBER 30,		AS OF		SEPTEMBER 30,
	2013		DECEMBER 31,		2012
	(UNAUDITED)		2012		(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash	$	301,648	$	6,384,087	$	78
Accounts Receivable,
Less, Allowances of $0 (09/30/13),
$1,562,556 (12/31/12) and $0 (09/30/12)		7,361,779		1,893,160		8,087,910
Inventories:
Raw Materials and Supplies		3,253,143		2,499,430		3,627,009
Work in Process		313,891		561,043		390,446
Finished Goods		9,071,019		5,795,906		7,645,579
Deferred Income Tax Asset		152,250		152,250		234,912
Income Tax Receivable		196,526		225,794		-
Prepaid Expenses and Other Current Assets		480,522		296,728		480,835
Total Current Assets		21,130,778		17,808,398		20,466,769
Property, Plant and Equipment,
Less, Accumulated Depreciation of
$18,801,658 (09/30/13), $18,454,410 (12/31/12)
and $18,860,033 (09/30/12)		3,838,876		3,946,124		4,036,833
Goodwill		413,280		413,280		413,280
Customer Base and Non-Compete Agreement		345,333		439,747		471,219
Other Assets		322,365		281,935		233,205
TOTAL ASSETS	$	26,050,632	$	22,889,484	$	25,621,306

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

2

	AS OF				AS OF
	SEPTEMBER 30,		AS OF		SEPTEMBER 30,
	2013		DECEMBER 31,		2012
	(UNAUDITED)		2012		(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short Term Debt	$	2,672,593	$	515,866	$	2,592,084
Accounts Payable		867,153		375,067		1,261,334
Accrued Liabilities		794,156		1,093,698		774,814
Income Taxes Payable		-		-		187,777
Total Current Liabilities		4,333,902		1,984,631		4,816,009
Deferred Income Tax Liability		272,063		272,063		165,891
Total Liabilities		4,605,965		2,256,694		4,981,900
STOCKHOLDERS’ EQUITY:
Common Stock: $0.30 Par Value,
2,000,000 Shares Authorized,
583,094 Shares Issued,
519,600 Shares Outstanding		174,928		174,928		174,928
Capital in Excess of Par Value		1,288,793		1,288,793		1,288,793
Retained Earnings		20,254,165		19,442,288		19,448,904
Treasury Stock, at Cost,
63,494 Shares		(273,219)		(273,219)		(273,219)
Total Stockholders’ Equity		21,444,667		20,632,790		20,639,406
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	26,050,632	$	22,889,484	$	25,621,306

3

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	FOR THE THREE MONTHS ENDED
	SEPTEMBER 30,
	2013		2012
Net Sales	$	9,538,239	$	9,994,865
Costs and Expenses:
Cost of Goods Sold		6,756,355		7,023,493
Selling, General and Administrative Expense		1,189,986		1,199,859
Amortization Expense		35,971		35,971
Interest Expense		6,002		3,304
Total Costs and Expenses		7,988,314		8,262,627
Income from Operations		1,549,925		1,732,238
Other Income (Loss)		283,416		(35,771)
Income from Operations Before Provision for Income Taxes		1,833,341		1,696,467
Provision for Income Taxes		676,244		644,654
Net Income	$	1,157,097	$	1,051,813
Income per Common Share (Basic and Diluted)	$	2.23	$	2.02
Dividend per Common Share	$	0.00	$	0.00

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

4

  

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	FOR THE NINE MONTHS ENDED
	SEPTEMBER 30,
	2013		2012
Net Sales	$	15,315,053	$	15,848,256
Costs and Expenses:
Cost of Goods Sold		11,232,573		11,325,394
Selling, General and Administrative Expense		2,888,544		2,816,946
Amortization Expense		107,914		107,914
Interest Expense		6,002		3,304
Total Costs and Expenses		14,235,033		14,253,558
Income from Operations		1,080,020		1,594,698
Other Income		322,227		34,894
Income from Operations Before Provision for Income Taxes		1,402,237		1,629,592
Provision for Income Taxes		512,427		619,241
Net Income	$	889,820	$	1,010,351
Income per Common Share (Basic and Diluted)	$	1.71	$	1.94
Dividend per Common Share	$	0.15	$	0.20

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

5

 

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	FOR THE NINE MONTHS ENDED
	SEPTEMBER 30,
	2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	889,820	$	1,010,351
Adjustments to Reconcile Net Income to
Net Cash Used in Operating Activities:
Depreciation and Amortization		455,162		461,982
(Increase) Decrease in:
Accounts Receivable		(5,468,619)		(5,508,548)
Inventories		(3,781,674)		(5,466,517)
Prepaid Expenses		(183,794)		(185,422)
Other Assets		(53,933)		(24,847)
Income Tax Receivable		29,268		-
Increase (Decrease) in:
Accounts Payable		492,086		902,485
Accrued Expense		(299,542)		(443,475)
Income Taxes Payable		-		(182,901)
Net Cash Used in Operating Activities		(7,921,226)		(9,436,892)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment		(240,000)		(206,856)
Net Cash Used in Investing Activities		(240,000)		(206,856)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Proceeds from Short-Term Debt		2,156,727		2,278,838
Dividends Paid		(77,940)		(103,920)
Net Cash Provided by Financing Activities		2,078,787		2,174,918
NET DECREASE IN CASH		(6,082,439)		(7,468,830)
CASH, AT BEGINNING OF PERIOD		6,384,087		7,468,908
CASH, AT END OF PERIOD	$	301,648	$	78
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for:
Interest	$	6,002	$	3,304
Income Taxes	$	483,159	$	802,142

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

6

 

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Paradise, Inc. (the “Company”) have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.

The information furnished herein reflects all adjustments and accruals of a normal recurring nature that management believes are necessary to fairly state the operating results for the respective periods. The notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s Form 10-K for the year ended December 31, 2012. The Company’s management believes that the disclosures are sufficient for interim financial reporting purposes.

Consumer demand for glace’ fruit product is traditionally strongest during the Thanksgiving and Christmas season. Almost 80% of glace’ fruit product sales are recorded during an eight to ten week period beginning in mid September. Therefore, the operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the current year.

Certain minor reclassifications have been made to the consolidated unaudited financial statements for the quarter ended September 30, 2012 to conform to the classifications used for the quarter ended September 30, 2013.

NOTE 2 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Company’s management does not believe that any recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements.

NOTE 3 INCOME PER COMMON SHARE

Basic and diluted income per common share is based on the weighted average number of shares outstanding and assumed to be outstanding of 519,600. There are no dilutive securities outstanding.

7

 

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

NOTE 4 BUSINESS SEGMENT DATA

The Company’s operations are conducted through two business segments. These segments, and the primary operations of each, are as follows:

Business Segment	Operation
Fruit	Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc.
Molded Plastics	Production of plastics containers and other molded plastics for sale to various food processors and others.

	Three months ended		Three months ended
	September 30,		September 30,
	2013		2012
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	7,884,362	$	8,412,222
Molded Plastics:
Sales to Unaffiliated Customers		1,653,877		1,582,643
Net Sales	$	9,538,239	$	9,994,865

	Nine months ended		Nine months ended
	September 30,		September 30,
	2013		2012
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	9,099,865	$	9,646,744
Molded Plastics:
Sales to Unaffiliated Customers		6,215,188		6,201,512
Net Sales	$	15,315,053	$	15,848,256

The Company does not prepare operating profit or loss information on a segment basis for internal use, until the end of each year. Due to the seasonal nature of the fruit segment, management believes that it is not practical to prepare this information for interim reporting purposes. Therefore, reporting is not required by accounting principles generally accepted in the United States of America.

8

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

NOTE 4 BUSINESS SEGMENT DATA (CONTINUED)

	September 30,		September 30,
	2013		2012
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	19,589,588	$	19,310,400
Molded Plastics		4,404,647		4,629,462
Identifiable Assets		23,994,235		23,939,862
General Corporate Assets		2,056,397		1,681,444
Total Assets	$	26,050,632	$	25,621,306

Identifiable assets by segment are those assets that are principally used in the operations of each segment. General corporate assets are principally cash, land and buildings, and income tax assets.

NOTE 5 OTHER ISSUES

As reported in the second quarter filing of this year, Paradise, Inc. renewed its revolving line of credit with a financial institution for a two year period maturing on June 23, 2015. Paradise, Inc.’s revolving line of credit has a maximum limit of $12,000,000 with a borrowing base of  80% of the Company’s eligible receivables plus the lessor of $6,000,000 or 50% of the Company’s eligible inventory from January through May of each year and 60% of eligible inventory from June to December of each year. This agreement is secured by all the assets of the Company and the agreement requires that certain conditions are met for the Company to continue borrowing, including debt service coverage and debt to equity ratios and other financial covenants including an agreement not to encumber a mortgage on the property without bank approval. Interest is payable monthly at the bank’s LIBOR rate plus 1.75%.

During 2012, Paradise, Inc. filed a claim with the Deepwater Horizon Economic and Property Program (the “Settlement Program”) arising out of damages suffered as a result of the Deepwater Horizon Incident. Upon review by the claims administrator of the Settlement Program and after a 30 day period in which BP Exploration & Production, Inc. could file a protest contesting this amount, a settlement check for $277,546 was awarded to Paradise, Inc. Funds were received on August 30, 2013 and this amount is reflected in Other Income on the Company’s consolidated Statements of Operations.

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PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I. FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward–Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact should be considered “forward-looking statements” for the purpose of these provisions, including statements that include projections of, or expectations about, earnings, revenues or other financial items, statements about our plans and objectives for future operations, statements concerning proposed new products or services, statements regarding future economic conditions or performance, statements concerning our expectations regarding the attraction and retention of customers, statements about market risk and statements underlying any of the foregoing. In some cases, forward-looking statements can be identified by the use of such terminology as “may”, “will”, “expects”, “potential”, or “continue”, or the negative thereof or other similar words. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Actual results and developments are likely to be different from, and may be materially different from, those expressed or implied by our forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties.

Overview

Paradise, Inc.’s main business segment, glace’ fruit, a prime ingredient of fruitcakes and other holiday confections, represented 67.7% of total net sales for the previous year of 2012. These products are sold to manufacturing bakers, institutional users, supermarkets and other retailers throughout the country. Consumer demand for glace’ fruit product is traditionally strongest during the Thanksgiving and Christmas season. Almost 80% of glace’ fruit product sales are recorded from the eight to ten weeks beginning in mid September.

Since the majority of the Company’s customers require delivery of glace’ candied fruit products during this relatively short period of time, Paradise, Inc. must operate at consistent levels of production from as early as January through the middle of November of each year in order to meet peak demands. Furthermore, the Company must make substantial borrowings of short-term working capital to cover the cost of raw materials, factory overhead and labor expense associated with production for inventory. This combination of building and financing inventories during the year, without the opportunity to record any significant fruit product income, results in the generation of operating losses well into the third quarter of each year. Therefore, it is the opinion of management that meaningful forecasts of annual net sales or profit levels require analysis of a full year’s operations.

In addition, comparison of current quarterly results to the preceding quarter produces an incomplete picture on the Company’s performance due to year-to-year changes in production schedules, seasonal harvests and availability of raw materials, and in the timing of customer orders and shipments. Thus, the discussion of information presented within this report is focused on the review of the Company’s current year-to-date results as compared to the similar period last year.

Paradise, Inc.’s other business segment, Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc. produces custom molding products, is not subject to the seasonality of the glace’ fruit business. This segment represents all injection molding and thermoforming operations, including the packaging for the Company’s fruit products. Only sales to unaffiliated customers are reported.

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PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I. FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

The First Nine Months

Paradise, Inc.’s fruit segment net sales for the first nine months of 2013 decreased 5.7% to $9,099,865 compared to $9,646,744 for the similar nine months reporting period of 2012. This decrease is due to timing differences in the receipt of customers’ orders and the corresponding shipping dates for delivery of the Company’s retail glace’ fruit products. Specifically, several major customers have delayed their orders into October of 2013 as compared to September of 2012. Paradise, Inc.’s management has consistently disclosed that interim filings are not reliable financial indicators of year-end performance. Only a full year’s accounting which removes the timing issue from the seasonal sale of glace’ fruit will provide the necessary financial information to determine the Company’s overall success.

Paradise Plastics, Inc.’s net sales to unaffiliated customers during the first nine months of 2013, $6,215,188 remained consistent with the similar reporting period of 2012, $6,201,512 as increased demand for plastics products related to the housing market continued to offset a decline in the sales of custom molding injection orders. As mentioned in the second quarter filing of this year, the Company is assisting one of its long term customers in transitioning into a new custom mold in order to comply with the changing requirements of one of their clients. While Paradise and its customer continue to work together in developing and testing of a prototype mold that will meet the requirements of their client, no estimated date of completion can be stated as of the date of this filing.

Consolidated cost of sales, as a percentage of net sales, increased 1.9% during the first nine months of 2013 compared to the similar reporting period of 2012. As reported in previous filings this year, Paradise, Inc. received and processed approximately 2.8 million less pounds of strawberries through its facilities during the first six months of 2013 compared to the similar period of 2012. Secondly, certain raw fruit material received from one of the Company’s suppliers, subject to specific size and quality requirements before being processed and placed into inventory, had a higher rejection rate than in the previous year. This  reduction in the amount of raw fruit materials processed resulted in a higher percentage of cost of sales.

Selling, general and administrative expenses for the first nine months of 2013 increased 2.5% compared to the previous year’s reporting period of 2012. The increase is attributable to a more concentrated effort to promote the Company’s full line of glace’ fruit products including dried fruit snacks via food and trade shows during the second and third quarters of 2013.

Paradise, Inc.’s interest expense on its revolving line of credit for the nine months ended September 30, 2013 was $6,002 compared to $3,304 for September 30, 2012. As reported in previous filings, Paradise, Inc. renewed its revolving line of credit on June 23, 2013 for a two year period. Paradise, Inc.’s revolving line of credit has a maximum limit of $12,000,000 with a borrowing base of 80% of the Company’s eligible receivables plus the lessor of $6,000,000 or 50% of the Company’s eligible from January through May of each year and 60% of eligible inventory from June to December of each year. This agreement is secured by all the assets of the Company and the agreement requires that certain conditions are met for the Company to continue borrowing, including debt service coverage and debt to equity ratios and other financial covenants including an agreement not to encumber a mortgage on the property without bank approval. Interest is payable monthly at the bank’s LIBOR rate plus 1.75%.

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PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I. FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Other Significant Items

Other Income for the nine months ended September 30, 2013 was $322,227 compared to $34,894 for the nine months ended September 30, 2012. As mentioned in previous filings, during 2012, Paradise, Inc. filed a claim with the Deepwater Horizon Economic and Property Program (the “Settlement Program”) arising out of damages suffered as a result of the Deepwater Horizon Incident. Upon review by the claims administrator of the Settlement Program and after a 30 day period in which BP Exploration & Production, Inc. could file a protest contesting this amount, a settlement check for $277,546 was awarded to Paradise, Inc. Funds were received on August 30, 2013 and this amount is reflected in Other Income on the Company’s consolidated Statements of Operations.

Inventory as of September 30, 2013 totaled $12,638,053 compared to $11,663,034 as of September 30, 2012. The increase of $975,019 is primarily due to the fact that, several major glace’ fruit customers have moved their ordering requirements to October of 2013 compared to September, 2012.

Paradise, Inc. finances ongoing operations primarily with cash provided by our operating activities which are seasonal in nature. Our principal sources of liquidity are our cash flows provided by operating activities, our existing cash, and a line of credit facility. At September 30, 2013 and December 31, 2012, we had $301,648 and $6,384,087, respectively, in cash. Additionally, we have a revolving line of credit with a maximum limit of $12 million and a borrowing limit of 80% of the Company’s eligible receivables plus up to 50% of the Company’s eligible inventory from January 1 to May 31 and 60% of the Company’s eligible inventory, of which $2,602,601 was outstanding at September 30, 2013 and $0 at December 31, 2012. Within this agreement, there are letters of credit with a limit of $1,200,000, of which $69,992 was outstanding at September 30, 2013 and $515,866 at December 31, 2012. The line of credit agreement expires in June 2015. Net cash used in operating activities decreased to $7,921,226 for the nine months ended September 30, 2013 compared to $9,436,892 for the nine months ended September 30, 2012. The primary reasons for this decrease are as follows; income tax payments made during the first nine months for 2013 were $319,983 less than the first nine months of 2012 as well as payments for the purchase of inventory decreased $1,684,843.

Summary

Paradise Inc.’s consolidated net sales decreased $533,203 representing a decline of 3.4% for the first nine months of 2013 compared to the similar reporting period of 2012. This decrease is primarily timing in nature as several existing glace’ fruit customers deferred their orders to the beginning of the fourth quarter of 2013 compared to the third quarter of 2012.

However, as mentioned and disclosed in all previous interim filings, due to the highly seasonal nature of the Company’s primary product, glace’ fruit, no meaningful financial analysis may be developed from Paradise, Inc.’s interim reporting results. Only a full year’s accounting of revenue and expenses will provide the necessary information to determine the Company’s financial performance.

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PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I. FINANCIAL INFORMATION

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Critical Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make assessments, estimates and assumptions that affect the amounts reported in the consolidated financial statements. We evaluate the accounting policies and estimates used to prepare the consolidated financial statements on an ongoing basis. Critical accounting estimates are those that require management’s most difficult, complex, or subjective judgments and have the most potential to impact our financial position and operating results. For a detailed discussion of our critical accounting estimates, see our Annual Report on Form 10-K for the year ended December 31, 2012. There have been no material changes to our critical accounting estimates during the nine months ended September 30, 2013.

Recently Issued Accounting Pronouncements

The Company’s management does not believe that any recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosure and Market Risk – N/A

Item 4. Controls and Procedures

As of September 30, 2013, our Chief Executive Officer and Chief Financial Officer have evaluated the Company’s disclosure controls and procedures, and they have concluded that we maintain effective disclosure controls and procedures. There were no changes in our internal control over financial reporting during the quarter ended September 30, 2013.

Disclosure controls and procedures mean the methods designed to ensure that information that the Company is required to disclose in the reports that it files with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods required. Our controls and procedures are designed to ensure that all information required to be disclosed is accumulated and communicated to our management to allow timely decisions regarding disclosure. During June 2013, we identified a material weakness in our internal controls over the interim period review of data input into the Company’s inventory system. Effective immediately after this discovery, additional procedures were established, which strengthened internal control and remediated the material weakness. Our controls and procedures are also designed to provide reasonable assurance of the reliability of our financial reporting and accurate recording of our financial transactions.

A control system, however well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. There are inherent limitations in all control systems, and no evaluation of controls can provide absolute assurance that all control gaps or instances of fraud have been detected. These inherent limitations include the realities that the judgments in decision-making can be faulty, and that simple errors or mistakes can occur.

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PARADISE, INC. COMMISSION FILE NO. 0-3026

PART II. OTHER INFORMATION

Item 1. Legal Proceedings – N/A

Item 1A. Risk Factors – N/A

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds – N/A

Item 3. Defaults Upon Senior Securities – N/A

Item 4. Mine Safety Disclosures – N/A

Item 5. Other Information – N/A

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

Exhibit
Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b) Reports on Form 8-K.

None.

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PARADISE, INC. COMMISSION FILE NO. 0-3026

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PARADISE, INC.
A Florida Corporation
/s/ Melvin S. Gordon	Date:	November 14, 2013
Melvin S. Gordon
Chief Executive Officer and Chairman
/s/ Jack M. Laskowitz	Date:	November 14, 2013
Jack M. Laskowitz
Chief Financial Officer and Treasurer

15

 

EX-31.1

Exhibit 31.1

Sarbanes-Oxley Section 302

Certification of Chief Executive Officer

I, Melvin S. Gordon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Paradise, Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

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 14, 2013

/s/ Melvin S. Gordon

Melvin S. Gordon

Chief Executive Officer and Chairman

EX-31.2

Exhibit 31.2

Sarbanes-Oxley Section 302

Certification of Chief Financial Officer

I, Jack M. Laskowitz, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Paradise, Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

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 14, 2013

/s/ Jack M. Laskowitz

Jack M. Laskowitz

Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

Certification of CEO pursuant to

18 U.S.C. Section 1350 as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Paradise, Inc. on Form 10-Q for the period ending September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Melvin S. Gordon, as Chief Executive Officer of Paradise, Inc., certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Paradise, Inc.

/s/ Melvin S. Gordon	Date: November 14, 2013
Melvin S. Gordon
Chief Executive Officer and Chairman

EX-32.2

Exhibit 32.2

Certification of CFO pursuant to

18 U.S.C. Section 1350 as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Paradise, Inc. on Form 10-Q for the period ending September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jack M. Laskowitz, as Chief Financial Officer of Paradise, Inc., certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Paradise, Inc.

/s/ Jack M. Laskowitz	Date: November 14, 2013
Jack M. Laskowitz
Chief Financial Officer and Treasurer

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Sales	$ 9,538,239	$ 9,994,865	$ 15,315,053	$ 15,848,256
Costs and Expenses:
Cost of Goods Sold	6,756,355	7,023,493	11,232,573	11,325,394
Selling, General and Administrative Expense	1,189,986	1,199,859	2,888,544	2,816,946
Amortization Expense	35,971	35,971	107,914	107,914
Interest Expense	6,002	3,304	6,002	3,304
Total Costs and Expenses	7,988,314	8,262,627	14,235,033	14,253,558
Income from Operations	1,549,925	1,732,238	1,080,020	1,594,698
Other Income (Loss)	283,416	(35,771)	322,227	34,894
Income from Operations Before Provision for Income Taxes	1,833,341	1,696,467	1,402,237	1,629,592
Provision for Income Taxes	676,244	644,654	512,427	619,241
Net Income	$ 1,157,097	$ 1,051,813	$ 889,820	$ 1,010,351
Income per Common Share (Basic and Diluted) (in dollars per share)	$ 2.23	$ 2.02	$ 1.71	$ 1.94
Dividend per Common Share (in dollars per share)	$ 0.00	$ 0.00	$ 0.15	$ 0.20

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OTHER ISSUES

9 Months Ended

Sep. 30, 2013

Other Issues [Abstract]

Other Issues [Text Block]

NOTE 5 OTHER ISSUES

As reported in the second quarter filing of this year, Paradise, Inc. renewed its revolving line of credit with a financial institution for a two year period maturing on June 23, 2015. Paradise, Inc.’s revolving line of credit has a maximum limit of $12,000,000 with a borrowing base of 80% of the Company’s eligible receivables plus the lessor of $6,000,000 or 50% of the Company’s eligible inventory from January through May of each year and 60% of eligible inventory from June to December of each year. This agreement is secured by all the assets of the Company and the agreement requires that certain conditions are met for the Company to continue borrowing, including debt service coverage and debt to equity ratios and other financial covenants including an agreement not to encumber a mortgage on the property without bank approval. Interest is payable monthly at the bank’sLIBOR rate plus 1.75%.

During 2012, Paradise, Inc. filed a claim with the Deepwater Horizon Economic and Property Program (the “Settlement Program”) arising out of damages suffered as a result of the Deepwater Horizon Incident. Upon review by the claims administrator of the Settlement Program and after a 30 day period in which BP Exploration & Production, Inc. could file a protest contesting this amount, a settlement check for $277,546 was awarded to Paradise, Inc. Funds were received on August 30, 2013 and this amount is reflected in Other Income on the Company’s consolidated Statements of Operations.

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BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Paradise, Inc. (the “Company”) have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.

The information furnished herein reflects all adjustments and accruals of a normal recurring nature that management believes are necessary to fairly state the operating results for the respective periods. The notes to the unaudited consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s Form 10-K for the year ended December 31, 2012. The Company’s management believes that the disclosures are sufficient for interim financial reporting purposes.

Consumer demand for glace’ fruit product is traditionally strongest during the Thanksgiving and Christmas season. Almost 80% of glace’ fruit product sales are recorded during an eight to ten week period beginning in mid September. Therefore, the operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the current year.

Certain minor reclassifications have been made to the consolidated unaudited financial statements for the quarter ended September 30, 2012 to conform to the classifications used for the quarter ended September 30, 2013.

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INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 3 INCOME PER COMMON SHARE

Basic and diluted income per common share is based on the weighted average number of shares outstanding and assumed to be outstanding of 519,600. There are no dilutive securities outstanding.

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BUSINESS SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2013

Net Sales [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The Company’s operations are conducted through two business segments. These segments, and the primary operations of each, are as follows:

Business Segment	Operation
Fruit	Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc.
Molded Plastics	Production of plastics containers and other molded plastics for sale to various food processors and others.

	Three months ended		Three months ended
	September 30,		September 30,
	2013		2012
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	7,884,362	$	8,412,222
Molded Plastics:
Sales to Unaffiliated Customers		1,653,877		1,582,643
Net Sales	$	9,538,239	$	9,994,865

	Nine months ended		Nine months ended
	September 30,		September 30,
	2013		2012
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	9,099,865	$	9,646,744
Molded Plastics:
Sales to Unaffiliated Customers		6,215,188		6,201,512
Net Sales	$	15,315,053	$	15,848,256

Identifiable Assets [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	September 30,		September 30,
	2013		2012
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	19,589,588	$	19,310,400
Molded Plastics		4,404,647		4,629,462
Identifiable Assets		23,994,235		23,939,862
General Corporate Assets		2,056,397		1,681,444
Total Assets	$	26,050,632	$	25,621,306

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BUSINESS SEGMENT DATA

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 4 BUSINESS SEGMENT DATA

The Company’s operations are conducted through two business segments. These segments, and the primary operations of each, are as follows:

Business Segment	Operation
Fruit	Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc.
Molded Plastics	Production of plastics containers and other molded plastics for sale to various food processors and others.

	Three months ended		Three months ended
	September 30,		September 30,
	2013		2012
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	7,884,362	$	8,412,222
Molded Plastics:
Sales to Unaffiliated Customers		1,653,877		1,582,643
Net Sales	$	9,538,239	$	9,994,865

	Nine months ended		Nine months ended
	September 30,		September 30,
	2013		2012
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	9,099,865	$	9,646,744
Molded Plastics:
Sales to Unaffiliated Customers		6,215,188		6,201,512
Net Sales	$	15,315,053	$	15,848,256

The Company does not prepare operating profit or loss information on a segment basis for internal use, until the end of each year. Due to the seasonal nature of the fruit segment, management believes that it is not practical to prepare this information for interim reporting purposes. Therefore, reporting is not required by accounting principles generally accepted in the United States of America.

 

	September 30,		September 30,
	2013		2012
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	19,589,588	$	19,310,400
Molded Plastics		4,404,647		4,629,462
Identifiable Assets		23,994,235		23,939,862
General Corporate Assets		2,056,397		1,681,444
Total Assets	$	26,050,632	$	25,621,306

Identifiable assets by segment are those assets that are principally used in the operations of each segment. General corporate assets are principally cash, land and buildings, and income tax assets.

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
Allowance for Doubtful Accounts (in dollars)	$ 0	$ 1,562,556	$ 0
Accumulated depreciation (in dollars)	$ 18,801,658	$ 18,454,410	$ 18,860,033
Common stock, par value (in dollars per share)	$ 0.30	$ 0.30	$ 0.30
Common stock, shares authorized	2,000,000	2,000,000	2,000,000
Common stock, shares issued	583,094	583,094	583,094
Common stock, shares outstanding	519,600	519,600	519,600
Treasury stock, shares	63,494	63,494	63,494

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BUSINESS SEGMENT DATA (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Sales to Unaffiliated Customers.	$ 9,538,239	$ 9,994,865	$ 15,315,053	$ 15,848,256
Candied Fruit [Member]
Sales to Unaffiliated Customers.	7,884,362	8,412,222	9,099,865	9,646,744
Molded Plastics [Member]
Sales to Unaffiliated Customers.	$ 1,653,877	$ 1,582,643	$ 6,215,188	$ 6,201,512

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 889,820	$ 1,010,351
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities:
Depreciation and Amortization	455,162	461,982
(Increase) Decrease in:
Accounts Receivable	(5,468,619)	(5,508,548)
Inventories	(3,781,674)	(5,466,517)
Prepaid Expenses	(183,794)	(185,422)
Other Assets	(53,933)	(24,847)
Income Tax Receivable	29,268	0
Increase (Decrease) in:
Accounts Payable	492,086	902,485
Accrued Expense	(299,542)	(443,475)
Income Taxes Payable	0	(182,901)
Net Cash Used in Operating Activities	(7,921,226)	(9,436,892)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment	(240,000)	(206,856)
Net Cash Used in Investing Activities	(240,000)	(206,856)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Proceeds from Short-Term Debt	2,156,727	2,278,838
Dividends Paid	(77,940)	(103,920)
Net Cash Provided by Financing Activities	2,078,787	2,174,918
NET DECREASE IN CASH	(6,082,439)	(7,468,830)
CASH, AT BEGINNING OF PERIOD	6,384,087	7,468,908
CASH, AT END OF PERIOD	301,648	78
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest	6,002	3,304
Income Taxes	$ 483,159	$ 802,142

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CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
ASSETS
Cash	$ 301,648	$ 6,384,087	$ 78
Accounts Receivable, Less, Allowances of $0 (09/30/13), $1,562,556 (12/31/12) and $0 (09/30/12)	7,361,779	1,893,160	8,087,910
Inventories:
Raw Materials and Supplies	3,253,143	2,499,430	3,627,009
Work in Process	313,891	561,043	390,446
Finished Goods	9,071,019	5,795,906	7,645,579
Deferred Income Tax Asset	152,250	152,250	234,912
Income Tax Receivable	196,526	225,794	0
Prepaid Expenses and Other Current Assets	480,522	296,728	480,835
Total Current Assets	21,130,778	17,808,398	20,466,769
Property, Plant and Equipment, Less, Accumulated Depreciation of $18,801,658 (09/30/13), $18,454,410 (12/31/12) and $18,860,033 (09/30/12)	3,838,876	3,946,124	4,036,833
Goodwill	413,280	413,280	413,280
Customer Base and Non-Compete Agreement	345,333	439,747	471,219
Other Assets	322,365	281,935	233,205
TOTAL ASSETS	26,050,632	22,889,484	25,621,306
LIABILITIES AND STOCKHOLDERS' EQUITY
Short Term Debt	2,672,593	515,866	2,592,084
Accounts Payable	867,153	375,067	1,261,334
Accrued Liabilities	794,156	1,093,698	774,814
Income Taxes Payable	0	0	187,777
Total Current Liabilities	4,333,902	1,984,631	4,816,009
Deferred Income Tax Liability	272,063	272,063	165,891
Total Liabilities	4,605,965	2,256,694	4,981,900
STOCKHOLDERS' EQUITY:
Common Stock: $0.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued, 519,600 Shares Outstanding	174,928	174,928	174,928
Capital in Excess of Par Value	1,288,793	1,288,793	1,288,793
Retained Earnings	20,254,165	19,442,288	19,448,904
Treasury Stock, at Cost, 63,494 Shares	(273,219)	(273,219)	(273,219)
Total Stockholders' Equity	21,444,667	20,632,790	20,639,406
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 26,050,632	$ 22,889,484	$ 25,621,306

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INCOME PER COMMON SHARE (Details Textual)	9 Months Ended
	Sep. 30, 2013
Weighted Average Number of Shares Outstanding, Basic and Diluted	519,600

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OTHER ISSUES (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2013
Line of Credit Facility, Expiration Date	Jun. 23, 2015
Line of Credit Facility, Maximum Borrowing Capacity	$ 12,000,000
Line Of Credit Facility Borrowing Base Description	80% of the Companys eligible receivables plus the lessor of $6,000,000 or 50% of the Companys eligible inventory from January through May of each year and 60% of eligible inventory from June to December of each year.
Line of Credit Facility, Interest Rate Description	LIBOR rate plus 1.75%
Line Of Credit Facility Borrowing Base Eligible Receivables Percentage	80.00%
Line Of Credit Facility Borrowing Base Eligible Inventory Percentage One	50.00%
Line Of Credit Facility Borrowing Base Eligible Inventory Percentage Two	60.00%
Litigation Settlement, Amount	$ 277,546

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BASIS OF PRESENTATION (Details Textual) (Sales [Member])	9 Months Ended
	Sep. 30, 2013
Sales [Member]
Concentration Risk, Percentage	80.00%

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

NOTE 2 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Company’s management does not believe that any recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements.

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BUSINESS SEGMENT DATA (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
Total Assets	$ 26,050,632	$ 22,889,484	$ 25,621,306
Candied Fruit [Member]
Total Assets	19,589,588		19,310,400
Molded Plastics [Member]
Total Assets	4,404,647		4,629,462
Identifiable Assets [Member]
Total Assets	23,994,235		23,939,862
General Corporate Assets [Member]
Total Assets	$ 2,056,397		$ 1,681,444

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Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 14, 2013
Document Information [Line Items]
Entity Registrant Name	PARADISE INC
Entity Central Index Key	0000076149
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	PARF
Entity Common Stock, Shares Outstanding		519,600
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013