![]() |
Delaware
|
75-2543540
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Class
|
Shares outstanding as of May 10, 2016
|
Common Stock, par value $0.0024 per share
|
9,272,012
|
PAGE NO.
|
|
PART I. FINANCIAL INFORMATION
|
|
Item 1. Financial Statements
|
|
1 | |
2 | |
3 | |
4 | |
5 | |
6 | |
11 | |
13 | |
Item 4. Controls and Procedures
|
13 |
PART II. OTHER INFORMATION
|
|
Item 1. Legal Proceedings
|
13 |
13 | |
Item 6. Exhibits
|
14 |
14 | |
March 31,
2016
(unaudited)
|
December 31,
2015
(audited)
|
||||||
ASSETS
|
|||||||
CURRENT ASSETS:
|
|||||||
Cash
|
$11,444,262
|
$10,962,615
|
|||||
Accounts receivable-trade, net of allowance for doubtful accounts
|
|||||||
of $1,677 and $1,746 in 2016 and 2015, respectively
|
682,580
|
553,206
|
|||||
Inventory
|
33,632,302
|
33,584,539
|
|||||
Prepaid income taxes
|
188,430
|
549,277
|
|||||
Deferred income taxes
|
328,048
|
326,830
|
|||||
Prepaid expenses
|
1,627,169
|
1,514,887
|
|||||
Other current assets
|
146,273
|
70,197
|
|||||
Total current assets
|
48,049,064
|
47,561,551
|
|||||
PROPERTY AND EQUIPMENT, at cost
|
24,548,702
|
23,992,208
|
|||||
Less accumulated depreciation and amortization
|
(8,650,964)
|
(8,297,155)
|
|||||
15,897,738
|
15,695,053
|
||||||
GOODWILL
|
959,784
|
953,356
|
|||||
OTHER INTANGIBLES, net of accumulated amortization of approximately
|
|||||||
$706,000 and $702,000 in 2016 and 2015, respectively
|
23,421
|
27,282
|
|||||
OTHER assets
|
329,838
|
329,684
|
|||||
TOTAL ASSETS
|
$65,259,845
|
$64,566,926
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||
CURRENT LIABILITIES:
|
|||||||
Accounts payable-trade
|
$1,920,311
|
$1,983,376
|
|||||
Accrued expenses and other liabilities
|
4,573,776
|
6,045,552
|
|||||
Current maturities of capital lease obligations
|
72,686
|
72,686
|
|||||
Current maturities of long-term debt
|
822,653
|
231,952
|
|||||
Total current liabilities
|
7,389,426
|
8,333,566
|
|||||
DEFERRED INCOME TAXES
|
1,735,450
|
1,702,515
|
|||||
LONG-TERM DEBT, net of current maturities
|
5,758,571
|
3,479,273
|
|||||
CAPITAL LEASE OBLIGATIONS, net of current maturities
|
72,688
|
79,396
|
|||||
COMMITMENTS AND CONTINGENCIES
|
-
|
||||||
STOCKHOLDERS’ EQUITY:
|
|||||||
Preferred stock, $0.10 par value; 20,000,000 shares authorized;
|
|||||||
none issued or outstanding; attributes to be determined on issuance
|
-
|
-
|
|||||
Common stock, $0.0024 par value; 25,000,000 shares authorized;
|
|||||||
11,309,326 and 11,275,641 shares issued at 2016 and 2015, respectively;
|
|||||||
9,382,555 and 9,753,293 shares outstanding at 2016 and 2015, respectively
|
27,142
|
27,062
|
|||||
Paid-in capital
|
6,212,171
|
6,168,489
|
|||||
Retained earnings
|
54,588,231
|
53,067,234
|
|||||
Treasury stock at cost (1,926,771 and 1,522,348 shares at 2016 and 2015, respectively)
|
(9,473,670)
|
(6,602,930)
|
|||||
Accumulated other comprehensive income
|
(1,050,164)
|
(1,687,679)
|
|||||
Total stockholders’ equity
|
50,303,710
|
50,972,176
|
|||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$65,259,845
|
$64,566,926
|
2016
|
2015
|
|||
NET SALES
|
$20,672,227
|
$20,788,764
|
||
COST OF SALES
|
8,019,481
|
8,205,836
|
||
Gross profit
|
12,652,746
|
12,582,928
|
||
OPERATING EXPENSES
|
10,289,956
|
10,194,047
|
||
INCOME FROM OPERATIONS
|
2,362,790
|
2,388,881
|
||
OTHER (INCOME) EXPENSE:
|
||||
Interest expense
|
23,429
|
44,163
|
||
Other, net
|
39
|
(19,873)
|
||
Total other (income) expense
|
23,468
|
24,290
|
||
INCOME BEFORE INCOME TAXES
|
2,339,322
|
2,364,591
|
||
PROVISION FOR INCOME TAXES
|
818,325
|
920,184
|
||
NET INCOME
|
$1,520,997
|
$1,444,407
|
||
NET INCOME PER COMMON SHARE:
|
||||
BASIC
|
$0.16
|
$0.14
|
||
DILUTED
|
$0.16
|
$0.14
|
||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
|
||||
BASIC
|
9,698,951
|
10,211,333
|
||
DILUTED
|
9,718,453
|
10,241,096
|
2016
|
2015
|
||
NET INCOME
|
$1,520,997
|
$1,444,407
|
|
Foreign currency translation adjustments, net of tax
|
637,515
|
(644,456)
|
|
COMPREHENSIVE INCOME
|
$2,158,512
|
$799,951
|
2016
|
2015
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net income
|
$1,520,997
|
$1,444,407
|
|||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||
Depreciation and amortization
|
414,228
|
383,936
|
|||||
(Gain) / loss on disposal or abandonment of assets
|
(12,023)
|
5,804
|
|||||
Non-cash stock-based compensation
|
43,762
|
29,064
|
|||||
Deferred income taxes
|
31,717
|
67,831
|
|||||
Foreign currency translation
|
614,366
|
(585,107)
|
|||||
Net changes in assets and liabilities:
|
|||||||
Accounts receivable-trade, net
|
(129,374)
|
(39,095)
|
|||||
Inventory
|
(47,763)
|
2,467,610
|
|||||
Prepaid expenses
|
(112,282)
|
(123,481)
|
|||||
Other current assets
|
(76,076)
|
43,888
|
|||||
Accounts payable-trade
|
(63,065)
|
486,852
|
|||||
Accrued expenses and other liabilities
|
(1,471,776)
|
(1,097,188)
|
|||||
Income taxes payable
|
360,847
|
423,403
|
|||||
Total adjustments
|
(447,439)
|
2,063,517
|
|||||
Net cash provided by operating activities
|
1,073,558
|
3,507,924
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchase of property and equipment
|
(606,932)
|
(677,444)
|
|||||
Proceeds from sale of assets
|
22,625
|
-
|
|||||
Increase (decrease) in other assets
|
(154)
|
2,344
|
|||||
Net cash used in investing activities
|
(584,461)
|
(675,100)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Net decrease in revolving credit loans
|
-
|
(3,500,000)
|
|||||
Proceeds from notes payable and long term debt
|
2,870,000
|
-
|
|||||
Payments on notes payable and long-term debt
|
-
|
(50,625)
|
|||||
Payments on capital lease obligations
|
(6,710)
|
-
|
|||||
Repurchase of common stock (treasury stock)
|
(2,870,740)
|
||||||
Proceeds from issuance of common stock
|
-
|
9,920
|
|||||
Net cash used in financing activities
|
(7,450)
|
(3,540,705)
|
|||||
NET INCREASE (DECREASE) IN CASH
|
481,647
|
(707,881)
|
|||||
CASH, beginning of period
|
10,962,615
|
10,636,530
|
|||||
CASH, end of period
|
$11,444,262
|
$9,928,649
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|||||||
Interest paid during the period
|
$23,429
|
$44,163
|
|||||
Income tax paid during the period, net of (refunds)
|
$457,478
|
$379,690
|
Number of Shares
|
Par Value
|
Paid-in Capital
|
Treasury Stock
|
Retained Earnings
|
Accumulated Other Comprehensive
Income (Loss)
|
Total
|
||||||||
BALANCE, December 31, 2014
|
10,245,534
|
$26,984
|
$6,013,325
|
$(2,894,068)
|
$46,664,829
|
$(688,058)
|
$49,123,012
|
|||||||
Shares issued – stock option exercise
|
2,000
|
5
|
9,915
|
-
|
-
|
-
|
9,920
|
|||||||
Stock-based compensation
|
34,484
|
83
|
28,981
|
-
|
-
|
-
|
29,064
|
|||||||
Net income
|
-
|
-
|
-
|
-
|
1,444,407
|
-
|
1,444,407
|
|||||||
Translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(644,456)
|
(644,456)
|
|||||||
BALANCE, March 31, 2015
|
10,282,018
|
$27,072
|
$6,052,221
|
$(2,894,068)
|
$48,109,236
|
$(1,332,514)
|
$49,961,947
|
|||||||
Number of Shares
|
Par Value
|
Paid-in Capital
|
Treasury Stock
|
Retained Earnings
|
Accumulated Other Comprehensive
Income (Loss)
|
Total
|
||||||||
BALANCE, December 31, 2015
|
9,753,293
|
$27,062
|
$6,168,489
|
$(6,602,930)
|
$53,067,234
|
$(1,687,679)
|
$50,972,176
|
|||||||
Stock-based compensation
|
33,685
|
80
|
43,682
|
-
|
-
|
-
|
43,762
|
|||||||
Net income
|
-
|
-
|
-
|
-
|
1,520,997
|
-
|
1,520,997
|
|||||||
Purchase of treasury stock
|
(404,423)
|
-
|
-
|
(2,870,740)
|
-
|
-
|
(2,870,740)
|
|||||||
Translation adjustment
|
-
|
-
|
-
|
-
|
-
|
637,515
|
637,515
|
|||||||
BALANCE, March 31, 2016
|
9,382,555
|
$27,142
|
$6,212,171
|
$(9,473,670)
|
$54,588,231
|
$(1,050,164)
|
$50,303,710
|
1.
|
BASIS OF PRESENTATION AND CERTAIN SIGNIFICANT ACCOUNTING POLICIES
|
As of
|
|||
March 31, 2016
|
December 31, 2015
|
||
Inventory on hand:
|
|||
Finished goods held for sale
|
$30,873,556
|
$30,487,764
|
|
Raw materials and work in process
|
1,227,891
|
1,284,567
|
|
Inventory in transit
|
1,530,855
|
1,812,208
|
|
$33,632,302
|
$33,584,539
|
Leather Factory
|
Tandy Leather
|
Total
|
|
Balance, January 1, 2015
|
$588,380
|
$383,406
|
$971,786
|
Acquisitions and adjustments
|
-
|
-
|
-
|
Foreign exchange gain/loss
|
(9,695)
|
-
|
(9,695)
|
Impairments
|
-
|
-
|
-
|
Balance, March 31, 2015
|
$578,685
|
$383,406
|
$962,091
|
Leather Factory
|
Tandy Leather
|
Total
|
|
Balance, January 1, 2016
|
$569,950
|
$383,406
|
$953,356
|
Acquisitions and adjustments
|
-
|
-
|
-
|
Foreign exchange gain/loss
|
6,428
|
-
|
6,428
|
Impairments
|
-
|
-
|
-
|
Balance, March 31, 2016
|
$576,378
|
$383,406
|
$959,784
|
As of March 31, 2016
|
As of December 31, 2015
|
||||||
Gross
|
Accumulated
Amortization
|
Net
|
Gross
|
Accumulated
Amortization
|
Net
|
||
Trademarks, Copyrights
|
$554,369
|
$544,698
|
$9,671
|
$554,369
|
$544,504
|
$9,865
|
|
Non-Compete Agreements
|
174,665
|
160,915
|
13,750
|
174,665
|
157,248
|
17,417
|
|
$729,034
|
$705,613
|
$23,421
|
$729,034
|
$701,752
|
$27,282
|
Leather Factory
|
Tandy Leather
|
Total
|
|
2016
|
$81
|
$2,500
|
$2,581
|
2017
|
90
|
1,667
|
1,757
|
2018
|
-
|
1,417
|
1,417
|
2019
|
-
|
666
|
666
|
2020
|
-
|
666
|
666
|
Thereafter
|
-
|
6,334
|
6,334
|
2.
|
NOTES PAYABLE AND LONG-TERM DEBT
|
2016
|
2015
|
||
Business Loan Agreement with BOKF, NA – collateralized by real estate; payable as follows:
|
|||
Line of Credit Note dated September 18, 2015, in the maximum principal amount of $10,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2020
|
$6,581,224
|
$3,711,225
|
|
Line of Credit Note dated September 18, 2015, in the maximum principal amount of $6,000,000 with revolving features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2017
|
-
|
-
|
|
$6,581,224
|
$3,711,225
|
||
Less current maturities
|
822,653
|
231,952
|
|
$5,758,571
|
$3,479,273
|
2016
|
2015
|
|
Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018
|
$149,251
|
$156,271
|
Less amount representing interest
|
3,877
|
4,189
|
Total obligation under capital lease
|
145,374
|
152,082
|
Less - Current maturities
|
72,686
|
72,686
|
$72,688
|
$79,396
|
Weighted Average Exercise
Price
|
# of shares
|
Weighted Average Remaining
Contractual Term (in years)
|
Aggregate Intrinsic Value
|
|
Outstanding, January 1, 2016
|
$5.17
|
68,400
|
||
Granted
|
-
|
-
|
||
Cancelled
|
-
|
-
|
||
Exercised
|
-
|
-
|
||
Outstanding, March 31, 2016
|
$5.17
|
68,400
|
5.24
|
$83,933
|
Exercisable, March 31, 2016
|
$5.17
|
68,400
|
5.24
|
$83,933
|
Outstanding, January 1, 2015
|
$5.16
|
72,400
|
||
Granted
|
-
|
-
|
||
Cancelled
|
-
|
-
|
||
Exercised
|
(4.96)
|
(2,000)
|
||
Outstanding, March 31, 2015
|
$5.17
|
70,400
|
6.07
|
$86,886
|
Exercisable, March 31, 2015
|
$5.17
|
70,400
|
6.07
|
$86,886
|
March 31, 2016
|
March 31, 2015
|
|
Weighted average grant-date fair value of stock options granted
|
N/A
|
N/A
|
Total fair value of stock options vested
|
N/A
|
N/A
|
Total intrinsic value of stock options exercised
|
N/A
|
$2,953
|
Shares
|
Award
Fair Value
|
|
Balance, January 1, 2016
|
60,433
|
$8.97
|
Granted
|
33,685
|
$7.14
|
Forfeited
|
(8,187)
|
8.97
|
Vested
|
(20,784)
|
8.97
|
Unvested Balance, March 31, 2016
|
65,147
|
$8.03
|
Balance, January 1, 2015
|
34,601
|
$8.96
|
Granted
|
34,484
|
$8.99
|
Forfeited
|
-
|
-
|
Vested
|
(8,652)
|
$8.96
|
Unvested Balance, March 31, 2015
|
60,433
|
$8.97
|
2016 Award
|
2015 Award
|
2014 Award
|
Total
|
|
2016
|
$45,095
|
$58,127
|
$58,130
|
$161,352
|
2017
|
60,128
|
77,503
|
77,506
|
215,137
|
2018
|
60,128
|
77,503
|
9,688
|
147,319
|
2019
|
60,128
|
9,688
|
-
|
69,816
|
2020
|
10,021
|
-
|
-
|
10,021
|
$235,500
|
$222,821
|
$145,324
|
$603,645
|
2016
|
2015
|
||||
Net income
|
$1,520,997
|
$1,444,407
|
|||
Numerator for basic and diluted earnings per share
|
$1,520,997
|
$1,444,407
|
|||
Denominator for basic earnings per share – weighted-average shares
|
9,698,951
|
10,211,333
|
|||
Effect of dilutive securities:
|
|||||
Stock options
|
19,461
|
29,763
|
|||
Restricted stock
|
41
|
-
|
|||
Dilutive potential common shares
|
19,502
|
29,763
|
|||
Denominator for diluted earnings per share – weighted-average shares
|
9,718,453
|
10,241,096
|
|||
Basic earnings per share
|
$0.16
|
$0.14
|
|||
Diluted earnings per share
|
$0.16
|
$0.14
|
a.
|
Wholesale Leathercraft, which consists of a chain of wholesale stores operating under the name, The Leather Factory, located in North America;
|
b.
|
Retail Leathercraft, which consists of a chain of retail stores operating under the name, Tandy Leather Company, located in North America; and
|
c.
|
International Leathercraft, which sells to both wholesale and retail customers. We have four stores operating in this segment: one in Northampton, United Kingdom; one in Manchester, United Kingdom (which opened in October 2015); one in Sydney, Australia; and one in Jerez, Spain. These stores carry the same products as our North American stores.
|
Wholesale Leathercraft
|
Retail Leathercraft
|
Int’l Leathercraft
|
Total
|
|
For the quarter ended March 31, 2016
|
||||
Net sales
|
$6,496,908
|
$13,242,583
|
$932,736
|
$20,672,227
|
Gross profit
|
4,388,629
|
7,696,180
|
567,937
|
12,652,746
|
Income from operations
|
1,126,259
|
1,214,950
|
21,581
|
2,362,790
|
Interest expense
|
23,429
|
-
|
-
|
23,429
|
Other, net
|
(5,746)
|
-
|
5,785
|
39
|
Income before income taxes
|
1,108,576
|
1,214,950
|
15,796
|
2,339,322
|
Depreciation and amortization
|
241,899
|
151,693
|
20,636
|
414,228
|
Fixed asset additions
|
371,299
|
231,565
|
4,068
|
606,932
|
Total assets
|
$41,849,437
|
$18,296,478
|
$5,113,930
|
$65,259,845
|
For the quarter ended March 31, 2015
|
||||
Net sales
|
$6,725,304
|
$13,109,413
|
$954,047
|
$20,788,764
|
Gross profit
|
4,169,635
|
7,845,766
|
567,527
|
12,582,928
|
Income from operations
|
951,855
|
1,403,452
|
33,574
|
2,388,881
|
Interest expense
|
44,163
|
-
|
-
|
44,163
|
Other, net
|
(11,393)
|
-
|
(8,480)
|
(19,873)
|
Income before income taxes
|
919,085
|
1,403,452
|
42,054
|
2,364,591
|
Depreciation and amortization
|
239,718
|
132,862
|
11,356
|
383,936
|
Fixed asset additions
|
419,906
|
257,538
|
-
|
677,444
|
Total assets
|
$39,891,481
|
$16,388,517
|
$3,357,336
|
$59,637,334
|
2016
|
2015
|
|
United States
|
$17,727,629
|
$17,748,632
|
Canada
|
1,741,756
|
1,899,118
|
All other countries
|
1,202,842
|
1,141,014
|
$20,672,227
|
$20,788,764
|
Ø
|
General economic conditions in the United States and abroad;
|
Ø
|
Increased pressure on margins;
|
Ø
|
Increases in the cost of the products we sell or a reduction in availability of those products;
|
Ø
|
Challenges in implementing our planned international expansion;
|
Ø
|
Failure to open additional stores in North America;
|
Ø
|
Failure to hire and train qualified personnel to operate new and existing stores;
|
Ø
|
Failure to protect our trademarks and other proprietary intellectual property rights;
|
Ø
|
Negative impact of foreign currency fluctuations on our financial condition and results of operations;
|
Ø
|
Damage to our brand image.
|
Quarter Ended March 31, 2016
|
Quarter Ended March 31, 2015
|
||||||
Sales
|
Income from Operations
|
Sales
|
Income from Operations
|
||||
Wholesale Leathercraft
|
$6,496,908
|
$1,126,259
|
$6,725,304
|
$951,855
|
|||
Retail Leathercraft
|
13,242,583
|
1,214,950
|
13,109,413
|
1,403,452
|
|||
International Leathercraft
|
932,736
|
21,581
|
954,047
|
33,574
|
|||
Total Operations
|
$20,672,227
|
$2,362,790
|
$20,788,764
|
$2,388,881
|
2016
|
2015
|
% change
|
||
Net income
|
$1,520,997
|
$1,444,407
|
5.3%
|
Quarter ended
|
|||
Customer Group
|
03/31/16
|
03/31/15
|
|
RETAIL (end users, consumers, individuals)
|
48%
|
49%
|
|
INSTITUTION (prisons, prisoners, hospitals, schools, youth organizations, etc.)
|
2%
|
3%
|
|
WHOLESALE (resellers & distributors, saddle & tack shops, authorized dealers, etc.)
|
43%
|
41%
|
|
MANUFACTURERS
|
6%
|
6%
|
|
NATIONAL ACCOUNTS
|
1%
|
1%
|
|
100%
|
100%
|
#
Stores
|
Qtr Ended
03/31/16
|
#
Stores
|
Qtr Ended
03/31/15
|
$
Change
|
%
Change
|
|||
Same store sales
|
82
|
$13,059,658
|
82
|
$13,019,613
|
$40,045
|
0.3%
|
||
New store sales
|
1
|
79,654
|
-
|
-
|
79,654
|
N/A
|
||
Closed store sales
|
1
|
103,271
|
-
|
89,800
|
13,471
|
15.0%
|
||
Total sales
|
$13,242,583
|
|
$13,109,413
|
$133,170
|
1.0%
|
Quarter ended
|
|||
Customer Group
|
03/31/16
|
03/31/15
|
|
RETAIL (end users, consumers, individuals)
|
60%
|
61%
|
|
INSTITUTION (prisons, prisoners, hospitals, schools, youth organizations, etc.)
|
2%
|
3%
|
|
WHOLESALE (resellers & distributors, saddle & tack shops, authorized dealers, etc.)
|
35%
|
34%
|
|
MANUFACTURERS
|
3%
|
2%
|
|
100%
|
100%
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||
Period
|
(a) Total Number of
Shares Purchased
|
(b) Average Price
Paid per Share
|
(c) Total Number of Shares Purchased as Part of Publicly
Announced Plans or Programs
|
(d) Maximum Number of Shares that May Yet Be
Purchased Under the Plans or Programs
|
January 1 – January 31
|
-
|
-
|
-
|
671,275
|
February 1 – February 29
|
-
|
-
|
-
|
671,275
|
March 1 – March 31
|
404,423 (1)
|
$7.10
|
404,423
|
266,852
|
Total
|
404,423
|
$7.10
|
404,423
|
266,852
|
(1)
|
Represents shares purchased through a stock repurchase program permitting us to repurchase up to 1.2 million shares of our common stock at prevailing market prices. We announced the program on August 10, 2015. Purchases under the program commenced on August 24, 2015 and will terminate on August 9, 2016.
|
Exhibit
Number
|
Description
|
|
3.1
|
Certificate of Incorporation of The Leather Factory, Inc., and Certificate of Amendment to Certificate of Incorporation of The Leather Factory, Inc. filed as Exhibit 3.1 to Tandy Leather Factory, Inc.’s Form 10-Q filed with the Securities and Exchange Commission on August 12, 2005 and incorporated by reference herein.
|
|
3.2
|
Bylaws of The Leather Factory, Inc. (n/k/a Tandy Leather Factory, Inc.), filed as Exhibit 3.5 to the Current Report on Form 8-K (Commission File No. 001-12368) filed by Tandy Leather Factory, Inc (f/k/a The Leather Factory, Inc.) with the Securities and Exchange Commission on July 14, 2004 and incorporated by reference herein.
|
|
3.3
|
Certificate of Designations of Series A Junior Participating Preferred Stock of Tandy Leather Factory, Inc. filed as Exhibit 3.1 to Tandy Leather Factory’s Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 10, 2013 and incorporated by reference herein.
|
|
4.1
|
Rights Agreement dated as of June 6, 2013 between Tandy Leather Factory, Inc. and Broadridge Corporate Issuer Solutions, Inc., as Rights Agent (including the Certificate of Designations of Series A Junior Preferred Stock attached thereto as Exhibit A, the form of Right Certificate attached thereto as Exhibit B and the Summary of Rights attached thereto as Exhibit C), filed as Exhibit 4.1 to Tandy Leather Factory Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 10, 2013 and incorporated by reference herein.
|
|
10.1
|
2007 Director Non-Qualified Stock Option Plan, filed as Exhibit A to Tandy Leather Factory, Inc.’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 18, 2007 and incorporated by reference herein.
|
|
10.2
|
First Amendment to 2007 Director Non-Qualified Stock Option Plan dated May 3, 2010, filed as Exhibit 10.2 to Tandy Leather Factory Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 4, 2010 and incorporated by reference herein.
|
|
10.3
|
Second Amendment to 2007 Director Non-Qualified Stock Option Plan dated October 7, 2010, filed as Exhibit 10.3 to Tandy Leather Factory Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 12, 2010 and incorporated by reference herein.
|
|
10.4
|
Third Amendment to 2007 Director Non-Qualified Stock Option Plan dated February 11, 2014, filed as Exhibit 10.5 to Tandy Leather Factory Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 14, 2014 and incorporated by reference herein.
|
|
10.5
|
Business Loan Agreement, dated September 18, 2015, by and between Tandy Leather Factory, Inc. and BOKF, NA dba Bank of Texas, filed as Exhibit 10.2 to Tandy Leather Factory’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 24, 2015 and incorporated by reference herein.
|
|
10.6
|
$6,000,000 Promissory Note, dated September 18, 2015, by and between Tandy Leather Factory, Inc. and BOKF, NA dba Bank of Texas, filed as Exhibit 10.1 to Tandy Leather Factory’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 24, 2015 and incorporated by reference herein.
|
|
10.7
|
$10,000,000 Promissory Note, dated September 18, 2015, by and between Tandy Leather Factory, Inc. and BOKF, NA dba Bank of Texas, filed as Exhibit 10.3 to Tandy Leather Factory’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 24, 2015 and incorporated by reference herein.
|
|
10.8
|
Deed of Trust, dated as of September 18, 2015, by and among Tandy Leather Factory, Inc., Jeffrey L Seasor and BOKF, NA dba Bank of Texas, filed as Exhibit 10.1 to Tandy Leather Factory’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 24, 2015 and incorporated by reference herein.
|
|
10.9
|
Form of Change of Control Agreement between the Company and each of Jon Thompson, Shannon Greene and Mark Angus, each effective as of December 3, 2012, filed as Exhibit 10.1 to Tandy Leather Factory’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2012 and incorporated by reference herein.
|
|
10.10
|
Tandy Leather Factory, Inc. 2013 Restricted Stock Plan, filed as Exhibit 10.1 to Tandy Leather Factory’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2013 and incorporated by reference herein.
|
|
10.11
|
Form of Non-Employee Director Restricted Stock Agreement under Tandy Leather Factory, Inc.’s 2013 Restricted Stock Plan, filed as Exhibit 10.1 to Tandy Leather Factory, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 14, 2014 and incorporated by reference herein.
|
|
10.12
|
Form of Employee Restricted Stock Agreement under Tandy Leather Factory, Inc.’s 2013 Restricted Stock Plan, filed as Exhibit 10.6 to Tandy Leather Factory, Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 14, 2014 and incorporated by reference herein.
|
|
*31.1
|
13a-14(a) or 15d-14(a) Certification by Shannon L. Greene, Interim Chief Executive Officer.
|
|
*31.2
|
13a-14(a) or 15d-14(a) Certification by Shannon L. Greene, Chief Financial Officer and Treasurer.
|
|
*32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
*101.INS
|
XBRL Instance Document.
|
|
*101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
*101.CAL
|
XBRL Taxonomy Extension Calculation Document.
|
|
*101.DEF
|
XBRL Taxonomy Extension Definition Document.
|
|
*101.LAB
|
XBRL Taxonomy Extension Labels Document.
|
|
*101.PRE
|
XBRL Taxonomy Extension Presentation Document.
|
|
____________
|
||
*Filed herewith.
|
TANDY LEATHER FACTORY, INC.
|
|
(Registrant)
|
|
Date: May 16, 2016
|
By: /s/ Shannon L. Greene
|
Shannon L. Greene
|
|
Interim Chief Executive Officer and
|
|
Chief Financial Officer and Treasurer (Chief Accounting Officer)
|
|
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.
|
d.
|
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 controls over financial reporting.
|
Date: May 16, 2016
|
|
/s/ Shannon L. Greene
|
|
Shannon L. Greene
|
|
Interim Chief Executive Officer
|
|
(principal executive officer)
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the 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 first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
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 controls over financial reporting.
|
Date: May 16, 2016
|
|
/s/ Shannon L. Greene
|
|
Shannon L. Greene
|
|
Treasurer and Chief Financial Officer
|
|
(principal financial officer)
|
i.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
ii.
|
The information contained in the Report fully presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
May 16, 2016
|
By: /s/ Shannon L. Greene
|
Shannon L. Greene
|
|
Interim Chief Executive Officer and
|
|
Chief Financial Officer and Treasurer
|
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
May. 10, 2016 |
|
Entity Registrant Name | TANDY LEATHER FACTORY INC | |
Entity Central Index Key | 0000909724 | |
Trading Symbol | tlf | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 9,272,012 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts receivable-trade, net allowance for doubtful accounts | $ 1,677 | $ 1,746 |
Accumulated amortization | $ 705,613 | $ 701,752 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0024 | $ 0.0024 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 11,309,326 | 11,275,641 |
Common stock, shares outstanding (in shares) | 9,382,555 | 9,753,293 |
Treasury stock, shares (in shares) | 1,926,771 | 1,522,348 |
Consolidated Statements of Income (Unaudited) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
NET SALES | $ 20,672,227 | $ 20,788,764 |
COST OF SALES | 8,019,481 | 8,205,836 |
Gross profit | 12,652,746 | 12,582,928 |
OPERATING EXPENSES | 10,289,956 | 10,194,047 |
INCOME FROM OPERATIONS | 2,362,790 | 2,388,881 |
OTHER (INCOME) EXPENSE: | ||
Interest expense | 23,429 | 44,163 |
Other, net | 39 | (19,873) |
Total other (income) expense | 23,468 | 24,290 |
INCOME BEFORE INCOME TAXES | 2,339,322 | 2,364,591 |
PROVISION FOR INCOME TAXES | 818,325 | 920,184 |
NET INCOME | $ 1,520,997 | $ 1,444,407 |
NET INCOME PER COMMON SHARE: | ||
BASIC (in dollars per share) | $ 0.16 | $ 0.14 |
DILUTED (in dollars per share) | $ 0.16 | $ 0.14 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||
BASIC (in shares) | 9,698,951 | 10,211,333 |
DILUTED (in shares) | 9,718,453 | 10,241,096 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Net income | $ 1,520,997 | $ 1,444,407 |
Translation adjustment | 637,515 | (644,456) |
COMPREHENSIVE INCOME | $ 2,158,512 | $ 799,951 |
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Treasury Stock [Member] |
Retained Earnings [Member] |
AOCI Attributable to Parent [Member] |
Total |
---|---|---|---|---|---|---|
BALANCE (in shares) at Dec. 31, 2014 | 10,245,534 | |||||
BALANCE at Dec. 31, 2014 | $ 26,984 | $ 6,013,325 | $ (2,894,068) | $ 46,664,829 | $ (688,058) | $ 49,123,012 |
Shares issued – stock option exercise (in shares) | 2,000 | 2,000 | ||||
Shares issued – stock option exercise | $ 5 | 9,915 | $ 9,920 | |||
Stock-based compensation (in shares) | 34,484 | |||||
Stock-based compensation | $ 83 | $ 28,981 | 29,064 | |||
Net income | $ 1,444,407 | 1,444,407 | ||||
Translation adjustment | $ (644,456) | (644,456) | ||||
BALANCE (in shares) at Mar. 31, 2015 | 10,282,018 | |||||
BALANCE at Mar. 31, 2015 | $ 27,072 | $ 6,052,221 | $ (2,894,068) | $ 48,109,236 | (1,332,514) | 49,961,947 |
BALANCE (in shares) at Dec. 31, 2015 | 9,753,293 | |||||
BALANCE at Dec. 31, 2015 | $ 27,062 | 6,168,489 | $ (6,602,930) | $ 53,067,234 | $ (1,687,679) | 50,972,176 |
Stock-based compensation (in shares) | 33,685 | |||||
Stock-based compensation | $ 80 | $ 43,682 | 43,762 | |||
Net income | $ 1,520,997 | 1,520,997 | ||||
Translation adjustment | $ 637,515 | 637,515 | ||||
BALANCE (in shares) at Mar. 31, 2016 | 9,382,555 | |||||
BALANCE at Mar. 31, 2016 | $ 27,142 | $ 6,212,171 | $ (9,473,670) | $ 54,588,231 | $ (1,050,164) | 50,303,710 |
Purchase of treasury stock (in shares) | (404,423) | |||||
Purchase of treasury stock | $ (2,870,740) | $ (2,870,740) |
Note 1 - Basis of Presentation and Certain Significant Accounting Policies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] |
In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of March 31, 2016 and December 31, 2015, and its results of operations and cash flows for the three-month periods ended March 31, 2016 and 2015. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Inventory . Inventory is stated at the lower of cost or market and is accounted for on the “first in, first out” method. Based on negotiations with vendors, title generally passes to us when merchandise is put on board. Merchandise to which we have title but have not yet received is recorded as inventory in transit. In addition, the value of inventory is periodically reduced for slow-moving or obsolete inventory based on management’s review of items on hand compared to their estimated future demand. The components of inventory consist of the following:
Goodwill and Other Intangibles . Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. A two-step process is used to test for goodwill impairment. The first phase screens for impairment, while the second phase (if necessary) measures the impairment. We have elected to perform the annual analysis during the fourth calendar quarter of each year. As of December 31, 2015, management determined that the present value of the discounted estimated future cash flows of the stores associated with the goodwill is sufficient to support their respective goodwill balances. No indicators of impairment were identified during the first quarter of 2016. A summary of changes in our goodwill for the periods ended March 31, 2016 and 2015 is as follows:
Other intangibles consist of the following:
We recorded amortization expense of $3,861 during the first quarter of 2016 compared to $11,278 during the first quarter of 2015. All of our intangible assets, other than goodwill, are subject to amortization under U.S. GAAP. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding 5 years is as follows:
Revenue Recognition . Our sales generally occur via two methods: (1) at the counter in our stores, and (2) shipment by common carrier. Sales at the counter are recorded and title passes as transactions occur. Otherwise, sales are recorded and title passes when the merchandise is shipped to the customer. Our shipping terms are FOB shipping point.We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. Comprehensive Income (loss) and Accumulated Other Comprehensive Income (loss). Recent Account ing Pronouncements. In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, “Compensation–Stock Compensation.” The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. The guidance is effective for annual periods, and interim periods within those annual periods beginning after December 15, 2015. The guidance can be applied prospectively for all awards granted or modified after the effective date or retrospectively to all awards with performance targets outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern”. This ASU codifies management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items”. This ASU simplifies income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In July 2015, the FASB issued ASU 2015-11, “Inventory – Simplifying the Measurement of Inventory”, which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”), thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation”. The guidance is effective for annual and interim periods beginning after December 15, 2016. Early application is permitted. We do not expect that the adoption of this guidance will have a significant impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for annual and interim periods beginning after December 15, 2016, and may be adopted on either a prospective or retrospective basis. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We have not completed our review of the new guidance; however, we anticipate that upon adoption of the standard, we will recognize additional assets and corresponding liabilities related to leases on our consolidated balance sheet. |
Note 2 - Notes Payable and Long-term Debt |
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Debt Disclosure [Text Block] |
On September 18, 2015, we executed a Promissory Note and Business Loan Agreement with BOKF, NA dba Bank of Texas (“BOKF”), which provides us with a line of credit facility of up to $6,000,000. It has a two-year term and is secured by our inventory. The Business Loan Agreement contains covenants that we will maintain a funded debt to EBITDA ratio of no greater than 1.5 to 1, and that we will maintain a Fixed Charge Coverage Ratio greater than or equal to 1.2 to 1. Both ratios are calculated quarterly and are based on a trailing four quarter basis. Also on September 18, 2015, we executed a Promissory Note with BOKF, which provides us with a line of credit facility of up to $10,000,000 for the purpose of purchasing our common stock. Under the terms of the Promissory Note, we can borrow sums up to the lesser of $10,000,000 or the purchase price of a maximum of 1.2 million shares of our common stock from the period September 18, 2015 and ending on the earlier of September 18, 2016 or the date on which the entire amount is drawn. During this time period, we will make interest only payments monthly. At the end of this time period, the principal balance will be rolled into a 4-year term note. This Promissory Note is secured by a Deed of Trust on the real estate located at 1900 SE Loop 820, Fort Worth, Texas. For the quarter ended March 31, 2016, we drew approximately $2.9 million on this line of credit which was used to purchase approximately 404,000 shares of our common stock. At March 31, 2016, the unused portion of the line of credit was approximately $3.4 million. Amounts drawn under either Promissory Note accrue interest at the London interbank Eurodollar market rate for U.S. dollars (commonly known as “LIBOR”) plus 1.85% (2.278% and 2.263% at March 31, 2016 and December 31, 2015, respectively). On July 31, 2007, we entered into a Credit Agreement and Line of Credit Note with JPMorgan Chase Bank, N.A., pursuant to which the bank agreed to provide us with a credit facility of up to $5,500,000 to facilitate our purchase of real estate consisting of a 191,000 square foot building situated on 30 acres of land located at 1900 SE Loop 820 in Fort Worth, Texas. Proceeds in the amount of $4,050,000 were used to fund the purchase of the property that is our corporate headquarters. On April 30, 2008, the principal balance was rolled into a 10-year term note with an interest rate of 7.10% per annum. We paid this note in full in September 2015 and as a result of the early payoff, we incurred a prepayment penalty in the amount of $200,000 which was included in interest expense. On July 12, 2012, we executed a Line of Credit Note with JPMorgan Chase Bank, N.A., pursuant to which the bank agreed to provide us with a revolving credit facility of up to $4 million, which was subsequently increased to $6 million. The note expired on September 30, 2015. There was no balance owed on the line of credit at the expiration date. At March 31, 2016 and December 31, 2015, the amount outstanding under the above agreements consisted of the following:
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Note 3 - Capital Lease Obligations |
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Debt and Capital Leases Disclosures [Text Block] | 3. CAPITAL LEASE OBLIGATIONS We lease certain telecommunication equipment under a capital lease agreement. The asset subject to the agreement totaled $227,783, of which $22,152 is included in Property and Equipment at March 31, 2016 and December 31, 2015 and $205,631 is included in Prepaid Equipment (not placed in service) as of March 31, 2016 and December 31, 2015. Accumulated depreciation on the assets placed in service was $1,055 and $264 at March 31, 2016 and December 31, 2015, respectively. Amortization of the capitalized cost is charged to depreciation expense. At March 31, 2016 and December 31, 2015, the amounts outstanding under capital lease obligation consisted of the following:
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Note 4 - Stock-based Compensation |
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Stockholders' Equity Note Disclosure [Text Block] | 4. STOCK-BASED COMPENSATI ON We have one stock option plan which permits annual stock option grants to non-employee directors with an exercise price equal to the fair market value of the shares at the date of grant. Options outstanding and exercisable were granted at a stock option price which was not less than the fair market value of our common stock on the date the option was granted and no option has a term in excess of ten years. Under this plan, no options were awarded to directors during the quarters ended March 31, 2016 and 2015 and therefore, no share based compensation expense was recorded for the quarters ended March 31, 2016 and 2015, respectively. During the three months ended March 31, 2016 and 2015, the stock option activity under our stock option plans was as follows:
Other information pertaining to option activity during the three-month periods ended March 31, 2016 and 2015 are as follows:
As of March 31, 2016 and 2015, there was no unrecognized compensation cost related to non-vested stock options. We have a restricted stock plan that was adopted by our Board of Directors in January 2013 and approved by our stockholders in June 2013. The plan reserves up to 300,000 shares of our common stock for restricted stock awards to our executive officers, non-employee directors and other key employees. Awards granted under the plan may be stock awards or performance awards, and may be subject to a graded vesting schedule with a minimum vesting period of four years, unless otherwise determined by the committee that administers the plan. In February 2015, our Chief Executive Officer, Chief Financial Officer and Senior Vice President were awarded restricted stock grants consisting of 9,343 shares each. In addition, four of our independent directors were awarded restricted stock grants consisting of 1,613 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis over the four year vesting period. In March 2016, our interim Chief Executive Officer and interim President were awarded restricted stock grants consisting of 11,765 shares each. In addition, our five independent directors were awarded restricted stock grants consisting of 2,031 shares each. The grants will vest in equal annual amounts over a four-year period. The fair value of non-vested restricted common stock awards is the market value of our common stock on the date of grant. Compensation costs for these awards will be recognized on a straight-line basis over the four year vesting period. A summary of the activity for non-vested restricted common stock awards as of March 31, 2016 and 2015 is presented below:
Total unrecognized compensation expense for the non-vested restricted stock awards as of March 31, 2016 and 2015 totals $603,645 and $523,154, respectively As of March 31, 2016, compensation expense is expected to be recognized in equal annual amounts over a period of four years as follows:
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Note 5 - Earnings Per Share |
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Earnings Per Share [Text Block] | 5. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three months ended March 31, 2016 and 2015:
The net effect of assuming the exercise of all potentially dilutive common share equivalents, including stock options to purchase common stock at exercise prices less than the average market prices and restricted stock awards of an aggregate of 149,922 and 130,833 shares of common stock have been included in the computations of diluted EPS for the quarters ended March 31, 2016 and 2015, respectively. |
Note 6 - Commitments and Contingencies |
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Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. COMMITMENTS AND CONTINGENCIES Legal Proceedings. We are periodically involved in litigation that arises in the ordinary course of business and operations. There are no such matters pending that we expect to have a material impact on our financial position and operating results. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. |
Note 7 - Segment Information |
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Segment Reporting Disclosure [Text Block] | 7. SEGMENT INFORMATION We identify our segments based on the activities of three distinct operations:
Our reportable operating segments have been determined as separately identifiable business units, and we measure segment earnings as operating earnings, defined as income before interest and income taxes.
Net sales for geographic areas were as follows for the three months ended March 31:
Geographic sales information is based on the location of the customer. No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three-month periods ended March 31, 2016 and 2015. We do not have any significant long-lived assets outside of the United States. |
Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | In the opinion of management, the accompanying consolidated financial statements for Tandy Leather Factory, Inc. and its consolidated subsidiaries contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly its financial position as of March 31, 2016 and December 31, 2015, and its results of operations and cash flows for the three-month periods ended March 31, 2016 and 2015. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
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Inventory, Policy [Policy Text Block] | Inventory . Inventory is stated at the lower of cost or market and is accounted for on the “first in, first out” method. Based on negotiations with vendors, title generally passes to us when merchandise is put on board. Merchandise to which we have title but have not yet received is recorded as inventory in transit. In addition, the value of inventory is periodically reduced for slow-moving or obsolete inventory based on management’s review of items on hand compared to their estimated future demand. The components of inventory consist of the following:
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Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles . Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is required to be evaluated for impairment on an annual basis, absent indicators of impairment during the interim. Application of the goodwill impairment test requires exercise of judgment, including the estimation of future cash flows, determination of appropriate discount rates and other important assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. A two-step process is used to test for goodwill impairment. The first phase screens for impairment, while the second phase (if necessary) measures the impairment. We have elected to perform the annual analysis during the fourth calendar quarter of each year. As of December 31, 2015, management determined that the present value of the discounted estimated future cash flows of the stores associated with the goodwill is sufficient to support their respective goodwill balances. No indicators of impairment were identified during the first quarter of 2016. A summary of changes in our goodwill for the periods ended March 31, 2016 and 2015 is as follows:
Other intangibles consist of the following:
We recorded amortization expense of $3,861 during the first quarter of 2016 compared to $11,278 during the first quarter of 2015. All of our intangible assets, other than goodwill, are subject to amortization under U.S. GAAP. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the succeeding 5 years is as follows:
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Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition . Our sales generally occur via two methods: (1) at the counter in our stores, and (2) shipment by common carrier. Sales at the counter are recorded and title passes as transactions occur. Otherwise, sales are recorded and title passes when the merchandise is shipped to the customer. Our shipping terms are FOB shipping point.We offer an unconditional satisfaction guarantee to our customers and accept all product returns. Net sales represent gross sales less negotiated price allowances, product returns, and allowances for defective merchandise. |
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Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (loss) and Accumulated Other Comprehensive Income (loss). |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Account ing Pronouncements. In June 2014, the FASB issued ASU No. 2014-12, which amends ASC Topic 718, “Compensation–Stock Compensation.” The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and should not be reflected in the estimate of the grant-date fair value of the award. The guidance is effective for annual periods, and interim periods within those annual periods beginning after December 15, 2015. The guidance can be applied prospectively for all awards granted or modified after the effective date or retrospectively to all awards with performance targets outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern”. This ASU codifies management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items”. This ASU simplifies income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted. The adoption of the new requirements did not have a material impact on our consolidated financial statements or disclosures. In July 2015, the FASB issued ASU 2015-11, “Inventory – Simplifying the Measurement of Inventory”, which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”), thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation”. The guidance is effective for annual and interim periods beginning after December 15, 2016. Early application is permitted. We do not expect that the adoption of this guidance will have a significant impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, which requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for annual and interim periods beginning after December 15, 2016, and may be adopted on either a prospective or retrospective basis. We do not expect that our adoption will have a material impact on our consolidated financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases”, a comprehensive new standard that amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration greater than one year. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We have not completed our review of the new guidance; however, we anticipate that upon adoption of the standard, we will recognize additional assets and corresponding liabilities related to leases on our consolidated balance sheet. |
Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Tables) |
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Schedule of Inventory, Current [Table Text Block] |
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Schedule of Goodwill [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] |
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Note 2 - Notes Payable and Long-term Debt (Tables) |
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Schedule of Debt [Table Text Block] |
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Note 3 - Capital Lease Obligations (Tables) |
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Schedule of Capital Lease Obligations [Table Text Block] |
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Note 4 - Stock-based Compensation (Tables) |
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Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] |
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Schedule of Share-based Compensation, Activity [Table Text Block] |
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] |
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Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] |
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Note 5 - Earnings Per Share (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
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Note 7 - Segment Information (Tables) |
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] |
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Note 1 - Basis of Presentation and Certain Significant Accounting Policies (Details Textual) - USD ($) |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Amortization of Intangible Assets | $ 3,861 | $ 11,278 |
Note 1 - Components of Inventory (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Inventory on hand: | ||
Finished goods held for sale | $ 30,873,556 | $ 30,487,764 |
Raw materials and work in process | 1,227,891 | 1,284,567 |
Inventory in transit | 1,530,855 | 1,812,208 |
$ 33,632,302 | $ 33,584,539 |
Note 1 - Summary of Changes in Goodwill (Details) - USD ($) |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Leather Factory [Member] | ||
Balance | $ 569,950 | $ 588,380 |
Foreign exchange gain/loss | 6,428 | (9,695) |
Balance | 576,378 | 578,685 |
Tandy Leather [Member] | ||
Balance | $ 383,406 | $ 383,406 |
Foreign exchange gain/loss | ||
Balance | $ 383,406 | $ 383,406 |
Balance | 953,356 | 971,786 |
Foreign exchange gain/loss | 6,428 | (9,695) |
Balance | $ 959,784 | $ 962,091 |
Note 1 - Intangible Assets (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Trademarks and Copyrights [Member] | ||
Other intangibles, gross | $ 554,369 | $ 554,369 |
Accumulated amortization | 544,698 | 544,504 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $706,000 and $702,000 in 2016 and 2015, respectively | 9,671 | 9,865 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 174,665 | 174,665 |
Accumulated amortization | 160,915 | 157,248 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $706,000 and $702,000 in 2016 and 2015, respectively | 13,750 | 17,417 |
Other intangibles, gross | 729,034 | 729,034 |
Accumulated amortization | 705,613 | 701,752 |
OTHER INTANGIBLES, net of accumulated amortization of approximately $706,000 and $702,000 in 2016 and 2015, respectively | $ 23,421 | $ 27,282 |
Note 1 - Estimated Amortization Expense (Details) |
Mar. 31, 2016
USD ($)
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Wholesale Leathercraft [Member] | |
2016 | $ 81 |
2017 | $ 90 |
2018 | |
2019 | |
2020 | |
Thereafter | |
Retail Leathercraft [Member] | |
2016 | $ 2,500 |
2017 | 1,667 |
2018 | 1,417 |
2019 | 666 |
2020 | 666 |
Thereafter | 6,334 |
2016 | 2,581 |
2017 | 1,757 |
2018 | 1,417 |
2019 | 666 |
2020 | 666 |
Thereafter | $ 6,334 |
Note 2 - Summary of Credit Agreement and Line of Credit Note (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Promissory Note with BOKF [Member] | ||
Line of Credit Note dated September 18, 2015, in the maximum principal amount of $10,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2020 | $ 6,581,224 | $ 3,711,225 |
Promissory Note and Business Loan Agreement with BOKF [Member] | ||
Line of Credit Note dated September 18, 2015, in the maximum principal amount of $10,000,000 with features as more fully described above – interest due monthly at LIBOR plus 1.85%; matures September 18, 2020 | 0 | |
6,581,224 | $ 3,711,225 | |
Current maturities of long-term debt | 822,653 | 231,952 |
LONG-TERM DEBT, net of current maturities | $ 5,758,571 | $ 3,479,273 |
Note 2 - Summary of Credit Agreement and Line of Credit Note (Details) (Parentheticals) - USD ($) |
3 Months Ended | 12 Months Ended |
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Mar. 31, 2016 |
Dec. 31, 2015 |
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Promissory Note with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Note, Interest at LIBOR | 1.85% | 1.85% |
Promissory Note with BOKF [Member] | ||
Line of Credit Note, Principal Amount | $ 10,000,000 | $ 10,000,000 |
Promissory Note and Business Loan Agreement with BOKF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Note, Interest at LIBOR | 1.85% | 1.85% |
Promissory Note and Business Loan Agreement with BOKF [Member] | ||
Line of Credit Note, Principal Amount | $ 6,000,000 | $ 6,000,000 |
Note 3 - Capital Lease Obligations (Details Textual) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Property and Equipment [Member] | ||
Capital Leased Assets, Gross | $ 22,152 | $ 22,152 |
Prepaid Equipment [Member] | ||
Capital Leased Assets, Gross | 205,631 | 205,631 |
Capital Leased Assets, Gross | 227,783 | 227,783 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 1,055 | $ 264 |
Note 3 - Capital Lease Obligations (Details) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018 | $ 149,251 | $ 156,271 |
Less amount representing interest | 3,877 | 4,189 |
Total obligation under capital lease | 145,374 | 152,082 |
Less - Current maturities | 72,686 | 72,686 |
$ 72,688 | $ 79,396 |
Note 3 - Capital Lease Obligations (Details) (Parentheticals) - USD ($) |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Annual principal payments | $ 72,686 | $ 72,686 |
Interest rate | 1.80% | 1.80% |
Note 4 - Other Information Pertaining to Option Activity (Details) |
3 Months Ended |
---|---|
Mar. 31, 2015
USD ($)
| |
Total intrinsic value of stock options exercised | $ 2,953 |
Note 4 - Activity for Nonvested Restricted Common Stock Awards (Details) - Restricted Stock [Member] - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Balance, shares (in shares) | 60,433 | 34,601 |
Balance, Grant Fair Value (in dollars per share) | $ 8.97 | $ 8.96 |
Granted, shares (in shares) | 33,685 | 34,484 |
Granted, Grant Fair Value (in dollars per share) | $ 7.14 | $ 8.99 |
Forfeited, shares (in shares) | (8,187) | |
Forfeited, Grant Fair Value (in dollars per share) | $ 8.97 | |
Vested, shares (in shares) | (20,784) | (8,652) |
Vested, Grant Fair Value (in dollars per share) | $ 8.97 | $ 8.96 |
Balance, shares (in shares) | 65,147 | 60,433 |
Balance, Grant Fair Value (in dollars per share) | $ 8.03 | $ 8.97 |
Note 4 - Unrecognized Compensation Expense for Non-vested Restricted Stock Awards (Details) (Details) - Restricted Stock [Member] - USD ($) |
Mar. 31, 2016 |
Mar. 31, 2015 |
---|---|---|
Award 2016 [Member] | ||
2016 | $ 45,095 | |
2017 | 60,128 | |
2018 | 60,128 | |
2019 | 60,128 | |
2020 | 10,021 | |
235,500 | ||
2015 [Member] | ||
2016 | 58,127 | |
2017 | 77,503 | |
2018 | 77,503 | |
2019 | $ 9,688 | |
2020 | ||
$ 222,821 | ||
2014 [Member] | ||
2016 | 58,130 | |
2017 | 77,506 | |
2018 | $ 9,688 | |
2019 | ||
2020 | ||
$ 145,324 | ||
2016 | 161,352 | |
2017 | 215,137 | |
2018 | 147,319 | |
2019 | 69,816 | |
2020 | 10,021 | |
$ 603,645 | $ 523,154 |
Note 5 - Earnings Per Share (Details Textual) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Weighted Average Number Diluted Shares Outstanding Adjustment | 149,922 | 130,833 |
Note 5 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Employee Stock Option [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 19,461 | 29,763 |
Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 41 | |
Net income | $ 1,520,997 | $ 1,444,407 |
Numerator for basic and diluted earnings per share | $ 1,520,997 | $ 1,444,407 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 9,698,951 | 10,211,333 |
Effect of dilutive securities (in shares) | 19,502 | 29,763 |
Denominator for diluted earnings per share – weighted-average shares (in shares) | 9,718,453 | 10,241,096 |
Basic earnings per share (in dollars per share) | $ 0.16 | $ 0.14 |
Diluted earnings per share (in dollars per share) | $ 0.16 | $ 0.14 |
Note 7 - Summary of Reportable Operating Segments (Details) - USD ($) |
3 Months Ended | 15 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Wholesale Leathercraft [Member] | ||||
Net sales | $ 6,496,908 | $ 6,725,304 | ||
Gross profit | 4,388,629 | 4,169,635 | ||
Income from operations | 1,126,259 | 951,855 | ||
Interest expense | 23,429 | 44,163 | ||
Other, net | (5,746) | (11,393) | ||
Income before income taxes | 1,108,576 | 919,085 | ||
Depreciation and amortization | 241,899 | 239,718 | ||
Fixed asset additions | 371,299 | 419,906 | ||
Total assets | 41,849,437 | 39,891,481 | $ 39,891,481 | |
Retail Leathercraft [Member] | ||||
Net sales | 13,242,583 | 13,109,413 | ||
Gross profit | 7,696,180 | 7,845,766 | ||
Income from operations | $ 1,214,950 | $ 1,403,452 | ||
Interest expense | ||||
Other, net | ||||
Income before income taxes | $ 1,214,950 | $ 1,403,452 | ||
Depreciation and amortization | 151,693 | 132,862 | ||
Fixed asset additions | 231,565 | 257,538 | ||
Total assets | 18,296,478 | 16,388,517 | $ 16,388,517 | |
International Leathercraft [Member] | ||||
Net sales | 932,736 | 954,047 | ||
Gross profit | 567,937 | 567,527 | ||
Income from operations | $ 21,581 | 33,574 | ||
Interest expense | ||||
Other, net | $ 5,785 | (8,480) | ||
Income before income taxes | 15,796 | 42,054 | ||
Depreciation and amortization | 20,636 | $ 11,356 | ||
Fixed asset additions | 4,068 | |||
Total assets | 5,113,930 | $ 3,357,336 | $ 3,357,336 | |
Net sales | 20,672,227 | 20,788,764 | ||
Gross profit | 12,652,746 | 12,582,928 | ||
Income from operations | 2,362,790 | 2,388,881 | ||
Interest expense | 23,429 | 44,163 | ||
Other, net | 39 | (19,873) | ||
Income before income taxes | 2,339,322 | 2,364,591 | ||
Depreciation and amortization | 414,228 | 383,936 | ||
Fixed asset additions | 606,932 | 677,444 | ||
Total assets | $ 65,259,845 | $ 59,637,334 | $ 59,637,334 | $ 64,566,926 |
Note 7 - Net Sales for Geographic Areas (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
UNITED STATES | ||
Net sales | $ 17,727,629 | $ 17,748,632 |
CANADA | ||
Net sales | 1,741,756 | 1,899,118 |
All Other Countries [Member] | ||
Net sales | 1,202,842 | 1,141,014 |
Net sales | $ 20,672,227 | $ 20,788,764 |
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