þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 59-2705336 |
(State or other jurisdiction of | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
Large accelerated filer o | Accelerated filer þ |
Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) | Emerging growth company o |
Page | ||
• | We could be adversely affected by management changes or an inability to attract and retain key management, directors and consultants; |
• | Because our Hong Kong operations account for a substantial portion of our overall business, and substantially all of our Hong Kong business is derived from the sale of products to members in China, any material adverse change in our business relating to either Hong Kong or China would likely have a material adverse impact on our overall business; |
• | Our operations in China are subject to compliance with a myriad of applicable laws and regulations, and any actual or alleged violations of those laws or government actions otherwise directed at us could have a material adverse impact on our business and the value of our company; |
• | Our failure to maintain and expand our member relationships could adversely affect our business; |
• | We are currently being sued in two derivative lawsuits alleging, among other things, that we made materially false and misleading statements regarding the legality of our business operations in China; |
• | We are currently involved in, and may in the future face, litigation claims and governmental proceedings and inquiries that could harm our business; |
• | Although our members are independent contractors, improper member actions that violate laws or regulations could harm our business; |
• | Direct-selling laws and regulations may prohibit or severely restrict our direct sales efforts and cause our revenue and profitability to decline, and regulators could adopt new regulations that harm our business; |
• | The high level of competition in our industry could adversely affect our business; |
• | Challenges by third parties to the legality of our business operations could harm our business; |
• | An increase in the amount of compensation paid to members would reduce profitability; |
• | Currency exchange rate fluctuations could lower our revenue and net income; |
• | Changes in tax or duty laws, and unanticipated tax or duty liabilities, could adversely affect our net income; |
• | Transfer pricing regulations affect our business and results of operations; |
• | Our products and related activities are subject to extensive government regulation, which could delay, limit or prevent the sale of some of our products in some markets; |
• | Failure of new products to gain member and market acceptance could harm our business; |
• | New regulations governing the marketing and sale of nutritional supplements could harm our business; |
• | Regulations governing the production and marketing of our personal care products could harm our business; |
• | If we are found not to be in compliance with good manufacturing practices our operations could be harmed; |
• | Failure to comply with domestic and foreign laws and regulations governing product claims and advertising could harm our business; |
• | Adverse publicity associated with our products, ingredients or network marketing program, or those of similar companies, could harm our financial condition and operating results; |
• | We are subject to risks relating to product concentration and lack of revenue diversification; |
• | We rely on a limited number of independent third parties to manufacture and supply our products; |
• | Growth may be impeded by the political and economic risks of entering and operating foreign markets; |
• | We may be held responsible for certain taxes or assessments relating to the activities of our members and service providers, which could harm our financial condition and operating results; |
• | We may be unable to protect or use our intellectual property rights; |
• | We do not have a comprehensive product liability insurance program and product liability claims could hurt our business; |
• | Our internal controls and accounting methods may require modification; |
• | We identified a material weakness in our internal control over financial reporting. If we do not adequately address this material weakness or if other material weaknesses or significant deficiencies in our internal control over financial reporting are discovered, our financial statements could contain material misstatements and our business, operations and stock price may be adversely affected; |
• | We rely on and are subject to risks associated with our reliance upon information technology systems; |
• | System disruptions or failures, cybersecurity risks, and compromises of data could harm our business; |
• | Our systems, software and data reside on third-party servers, exposing us to risks that disruption or intrusion of those servers could temporarily or permanently interrupt our access and damage our business; |
• | Terrorist attacks, acts of war, epidemics or natural disasters may seriously harm our business; |
• | We may experience substantial negative cash flows, which may have a significant adverse effect on our business and could threaten our solvency; |
• | If we experience negative cash flows, we may need to seek additional debt or equity financing, which may not be available on acceptable terms or at all. If available, it could have a highly dilutive effect on the holdings of existing stockholders; |
• | Disappointing quarterly revenue or operating results could cause the price of our common stock to fall; |
• | Our common stock is particularly subject to volatility because of the industry in which we operate; |
• | Our common stock continues to experience wide fluctuations in trading volumes and prices. This may make it more difficult for holders of our common stock to sell shares when they want and at prices they find attractive; and |
• | Future sales by us or our existing stockholders could depress the market price of our common stock. |
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Inventories | |||||||
Other current assets | |||||||
Total current assets | |||||||
Property and equipment, net | |||||||
Goodwill | |||||||
Restricted cash | |||||||
Deferred tax asset | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Income taxes payable | |||||||
Accrued commissions | |||||||
Other accrued expenses | |||||||
Deferred revenue | |||||||
Amounts held in eWallets | |||||||
Other current liabilities | |||||||
Total current liabilities | |||||||
Income taxes payable | |||||||
Deferred tax liability | |||||||
Long-term incentive | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 9) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | |||||||
Common stock, $0.001 par value; 50,000,000 shares authorized; 12,979,414 shares issued at March 31, 2018 and December 31, 2017 | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Treasury stock, at cost; 1,603,322 and 1,637,524 shares at March 31, 2018 and December 31, 2017, respectively | ( | ) | ( | ) | |||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net sales | $ | $ | |||||
Cost of sales | |||||||
Gross profit | |||||||
Operating expenses: | |||||||
Commissions expense | |||||||
Selling, general and administrative expenses | |||||||
Total operating expenses | |||||||
Income from operations | |||||||
Other income, net | |||||||
Income before income taxes | |||||||
Income tax provision | |||||||
Net income | $ | $ | |||||
Net income per common share: | |||||||
Basic | $ | $ | |||||
Diluted | $ | $ | |||||
Weighted-average number of common shares outstanding: | |||||||
Basic | |||||||
Diluted | |||||||
Cash dividends declared per common share | $ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | $ | |||||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation adjustment | |||||||
Release of cumulative translation adjustment | ( | ) | |||||
Net change in foreign currency translation adjustment | ( | ) | |||||
Unrealized losses on available-for-sale securities | ( | ) | ( | ) | |||
Comprehensive income | $ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Stock-based compensation | |||||||
Cumulative translation adjustment realized in net income | ( | ) | |||||
Changes in assets and liabilities: | |||||||
Inventories | |||||||
Other current assets | |||||||
Other assets | ( | ) | ( | ) | |||
Accounts payable | ( | ) | |||||
Income taxes payable | ( | ) | |||||
Accrued commissions | ( | ) | ( | ) | |||
Other accrued expenses | ( | ) | |||||
Deferred revenue | ( | ) | ( | ) | |||
Amounts held in eWallets | ( | ) | |||||
Other current liabilities | |||||||
Long-term incentive | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | ( | ) | ( | ) | |||
Net cash used in investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Dividends paid | ( | ) | ( | ) | |||
Net cash used in financing activities | ( | ) | ( | ) | |||
Effect of exchange rates on cash, cash equivalents and restricted cash | |||||||
Net increase in cash, cash equivalents and restricted cash | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | $ | |||||
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||||||
Issuance of treasury stock for employee awards, net | $ | $ |
Three Months Ended March 31, | |||||||||||||
2018 | 2017 | ||||||||||||
Americas1 | $ | % | $ | % | |||||||||
Hong Kong2 | |||||||||||||
China | |||||||||||||
Taiwan | |||||||||||||
South Korea | |||||||||||||
Japan | |||||||||||||
Singapore | |||||||||||||
Malaysia | |||||||||||||
Russia and Kazakhstan | |||||||||||||
Europe | |||||||||||||
Total | $ | % | $ | % |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Product sales | $ | $ | |||||
Freight and other | |||||||
Less: sales returns | ( | ) | ( | ) | |||
Total net sales | $ | $ |
Three Months Ended March 31, | |||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||||||||||
Basic net income per common share: | |||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Non-vested restricted stock | — | — | |||||||||||||||||||
Diluted net income per common share: | |||||||||||||||||||||
Net income available to common stockholders plus assumed conversions | $ | $ | $ | $ |
March 31, 2018 | December 31, 2017 | ||||||
Cash, cash equivalents and restricted cash: | |||||||
Cash | $ | $ | |||||
Cash equivalents | |||||||
145,095 | 135,311 | ||||||
Restricted cash | |||||||
$ | $ | ||||||
Inventories: | |||||||
Finished goods | $ | $ | |||||
Raw materials | |||||||
Inventory reserve for obsolescence | ( | ) | ( | ) | |||
$ | $ | ||||||
Other accrued expenses: | |||||||
Sales returns | $ | $ | |||||
Employee-related expense | |||||||
Warehousing, inventory-related and other | |||||||
$ | $ | ||||||
Deferred revenue: | |||||||
Unshipped product | $ | $ | |||||
Auto ship advances | |||||||
Other | |||||||
$ | $ |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Adjusted Cost | Gross Unrealized Losses | Fair Value | Adjusted Cost | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Municipal bonds and notes | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||
Corporate debt securities | ( | ) | ( | ) | |||||||||||||||||||
Financial institution instruments | |||||||||||||||||||||||
Total available-for-sale investments | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Shares | Wtd. Avg. Price at Date of Issuance | |||||
Nonvested at December 31, 2017 | $ | |||||
Granted | ||||||
Vested | ( | ) | ||||
Nonvested at March 31, 2018 |
Foreign Currency Translation Adjustment | Unrealized Losses on Available-For-Sale Investments | Total | |||||||||
Balance, December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Other comprehensive income (loss) | ( | ) | |||||||||
Balance, March 31, 2018 | $ | $ | ( | ) | $ | ( | ) |
• | through commissions paid on the accumulated bonus volume from product purchases made by their down-line members and customers; and |
• | through retail profits on sales of products purchased by members at wholesale prices and resold at retail prices (in some markets, sales are for personal consumption only and income may not be earned through retail profits). |
Three Months Ended March 31, | |||||
2018 | 2017 | ||||
Net sales | 100.0 | % | 100.0 | % | |
Cost of sales | 19.5 | 18.8 | |||
Gross profit | 80.5 | 81.2 | |||
Operating expenses: | |||||
Commissions expense | 43.9 | 43.4 | |||
Selling, general and administrative expenses | 17.4 | 16.1 | |||
Total operating expenses | 61.3 | 59.5 | |||
Income from operations | 19.2 | 21.7 | |||
Other income, net | 0.3 | 0.3 | |||
Income before income taxes | 19.5 | 22.0 | |||
Income tax provision | 2.6 | 4.5 | |||
Net income | 16.9 | % | 17.5 | % |
Three Months Ended March 31, | |||||||||||||
2018 | 2017 | ||||||||||||
Americas1 | $ | 1,536 | 2.9 | % | $ | 1,460 | 2.4 | % | |||||
Hong Kong2 | 47,619 | 91.0 | 54,567 | 91.1 | |||||||||
China | 1,259 | 2.4 | 1,754 | 2.9 | |||||||||
Taiwan | 1,061 | 2.0 | 1,158 | 2.0 | |||||||||
South Korea | 119 | 0.2 | 122 | 0.2 | |||||||||
Japan | 65 | 0.1 | 27 | — | |||||||||
Singapore | 31 | 0.1 | 45 | 0.1 | |||||||||
Malaysia | 43 | 0.1 | — | — | |||||||||
Russia and Kazakhstan | 203 | 0.4 | 217 | 0.4 | |||||||||
Europe | 431 | 0.8 | 524 | 0.9 | |||||||||
Total | $ | 52,367 | 100.0 | % | $ | 59,874 | 100.0 | % |
• | Enhancement of controls to ensure that the system change management log is adequately backed up, secured and sufficiently maintained; and |
• | Initiation of periodic review and testing of user access rights and permissions. |
Exhibit Number | Exhibit Description | |
31.1 | ||
31.2 | ||
32.1 | ||
101.INS | Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation | |
101.DEF | XBRL Taxonomy Extension Definition | |
101.LAB | XBRL Taxonomy Extension Labels | |
101.PRE | XBRL Taxonomy Extension Presentation |
NATURAL HEALTH TRENDS CORP. | ||
Date: May 2, 2018 | /s/ Timothy S. Davidson | |
Timothy S. Davidson | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Exhibit Number | Exhibit Description | |
31.1 | ||
31.2 | ||
32.1 | ||
101.INS | Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation | |
101.DEF | XBRL Taxonomy Extension Definition | |
101.LAB | XBRL Taxonomy Extension Labels | |
101.PRE | XBRL Taxonomy Extension Presentation |
Date: May 2, 2018 | /s/ Chris T. Sharng | |
Chris T. Sharng | ||
President | ||
(Principal Executive Officer) |
Date: May 2, 2018 | /s/ Timothy S. Davidson | |
Timothy S. Davidson | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Date: May 2, 2018 | /s/ Chris T. Sharng | |
Chris T. Sharng | ||
President | ||
(Principal Executive Officer) | ||
Date: May 2, 2018 | /s/ Timothy S. Davidson | |
Timothy S. Davidson | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Document And Entity Information |
3 Months Ended |
---|---|
Mar. 31, 2018
shares
| |
Document And Entity Information | |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Entity Registrant Name | NATURAL HEALTH TRENDS CORP. |
Entity Central Index Key | 0000912061 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding (in shares) | 11,376,092 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,979,414 | 12,979,414 |
Treasury stock, shares | 1,603,322 | 1,637,524 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Income Statement [Abstract] | ||
Net sales | $ 52,367 | $ 59,874 |
Cost of sales | 10,221 | 11,245 |
Gross profit | 42,146 | 48,629 |
Operating expenses: | ||
Commissions expense | 22,980 | 25,965 |
Selling, general and administrative expenses | 9,122 | 9,672 |
Total operating expenses | 32,102 | 35,637 |
Income from operations | 10,044 | 12,992 |
Other income, net | 163 | 156 |
Income before income taxes | 10,207 | 13,148 |
Income tax provision | 1,383 | 2,723 |
Net income | $ 8,824 | $ 10,425 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.78 | $ 0.93 |
Earnings Per Share, Diluted | $ 0.78 | $ 0.93 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 11,286 | 11,229 |
Diluted (in shares) | 11,288 | 11,251 |
Cash dividends declared per share: | ||
Common (in dollars per share) | $ 0.13 | $ 0.44 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 8,824 | $ 10,425 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | 397 | 76 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 258 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 397 | (182) |
Unrealized losses on available-for-sale securities | (11) | (7) |
Comprehensive income | $ 9,210 | $ 10,236 |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NATURE OF OPERATIONS, BASIS OF PRESENTATION AND CONSOLIDATION Nature of Operations Natural Health Trends Corp., a Delaware corporation (whether or not including its subsidiaries, the “Company”), is an international direct-selling and e-commerce company headquartered in Rolling Hills Estates, California. Subsidiaries controlled by the Company sell personal care, wellness, and “quality of life” products under the “NHT Global” brand. The Company’s wholly-owned subsidiaries have an active physical presence in the following markets: the Americas, which consists of the United States, Canada, Cayman Islands, Mexico and Peru; Greater China, which consists of Hong Kong, Taiwan and China; Southeast Asia, which consists of Singapore, Malaysia and Vietnam; South Korea; Japan; and Europe. The Company also operates in Russia and Kazakhstan through an engagement with a local service provider. Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information for the interim periods presented. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s 2017 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (SEC) on March 27, 2018. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. Reclassification |
ACCOUNTING PRONOUNCEMENTS ACCOUNTING PRONOUNCEMENTS (Notes) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ACCOUNTING PRONOUNCEMENTS In November 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-18 that requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, that requires organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual years, and early application is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities had the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. In July 2015, the FASB approved the deferral of the effective date for annual reporting periods that began after December 15, 2017, including interim reporting periods. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. See Note 3 for additional information. |
REVENUE Revenue (Notes) |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue [Text Block] | REVENUE Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts With Customers, which was adopted on January 1, 2018 using the modified retrospective method. All revenue is recognized when the performance obligations under a contract are satisfied. Product sales are recognized when the products are shipped and title passes to independent members. Product sales to members are made pursuant to a member agreement that provides for transfer of both title and risk of loss upon the Company’s delivery to the carrier that completes delivery to the members, which is commonly referred to as “F.O.B. Shipping Point.” The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. These contracts are generally short-term in nature. Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. The reserve is based upon the return policy of each country, which varies from 14 days to one year, and their historical return rates, which range from 1% to 7% of sales. Sales returns were 2% of sales for the three months ended March 31, 2018 and 2017. No material changes in estimates have been recognized during the periods presented. See Note 5 for additional information. The Company has elected to account for shipping and handling activities performed after title has passed to members as a fulfillment cost, and accrues for the costs of shipping and handling if revenue is recognized before the contractually obligated shipping and handling activities occurs. Shipping charges billed to members are included in net sales. Costs associated with shipments are included in cost of sales. Event and training revenue is deferred and recognized as the event or training occurs. Costs of events and member training are included within selling, general and administrative expenses. Various taxes on the sale of products to members are collected by the Company as an agent and remitted to the respective taxing authority. These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing authority. Deferred Revenue The Company primarily receives payment by credit card at the time members place orders. Amounts received for unshipped product are considered a contract liability and are recorded as deferred revenue. The decrease in deferred revenue for the three months ended March 31, 2018 is primarily due to $3.2 million of revenue recognized which was included in deferred revenue as of December 31, 2017, offset by cash payments received or due in advance of satisfying the Company’s performance obligations. See Note 5 for additional information. Disaggregation of Revenue The Company sells products to a member network that operates in a seamless manner from market to market, except for the Chinese market where it sells to consumers through an e-commerce retail platform and the Russia and Kazakhstan market where the Company operates through an engagement of a third-party service provider. The following table sets forth revenue by market for the periods indicated (in thousands):
1 United States, Canada, Mexico and Peru 2 Substantially all of our Hong Kong revenues are derived from the sale of products that are delivered to members in China. See “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K. The Company’s net sales by product and service are as follows (in thousands):
Concentration No single market other than Hong Kong had net sales greater than 10% of total net sales and no single customer accounted for 10% or more of net sales for the three months ended March 31, 2018 and 2017. The Company’s business model can result in a concentration of sales to several different members and their network of members. Although no single member accounted for 10% or more of net sales, the loss of a key member or that member’s network could have an adverse effect on the Company’s net sales and financial results. Arrangements with Multiple Performance Obligations The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenues to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged for individual products to similar customers. Practical Expedients The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded in commissions expense. |
NET INCOME PER COMMON SHARE NET INCOME PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | NET INCOME PER COMMON SHARE Diluted net income per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not yet recognized and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The following tables illustrate the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data):
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BALANCE SHEET COMPONENTS Balance Sheet Components |
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Balance Sheet Components [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Disclosures [Text Block] | BALANCE SHEET COMPONENTS The components of certain balance sheet amounts are as follows (in thousands):
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FAIR VALUE MEASUREMENTS (Notes) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS As of March 31, 2018, cash and cash equivalents include the Company’s investments in debt securities, comprising municipal notes and bonds and corporate debt, money market funds and time deposits. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities. As such, the Company determined its investments in debt securities held at March 31, 2018 should be classified as available-for-sale and are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income in stockholders’ equity. The cost of debt securities is adjusted for amortization of premiums and discounts to maturity. This amortization is included in other income. Realized gains and losses, as well as interest income, are also included in other income. The fair values of securities are based on quoted market prices. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents and accounts payable, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. The Company’s cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands):
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STOCKHOLDERS' EQUITY |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY Dividends On February 6, 2018, the Board of Directors declared a cash dividend of $0.13 on each share of common stock outstanding. Such dividends were paid on March 9, 2018 to stockholders of record on February 27, 2018. Declaration and payment of any future dividends on shares of common stock will be at the discretion of the Company’s Board of Directors. Stock Repurchases On January 12, 2016, the Board of Directors authorized an increase to the Company’s stock repurchase program first approved on July 28, 2015 from $15.0 million to $70.0 million. Repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, and will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The stock repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. As of March 31, 2018, $32.0 million of the $70.0 million stock repurchase program approved on July 28, 2015 and increased on January 12, 2016 remained available for future purchases, inclusive of related estimated income tax. Restricted Stock No stock-based compensation was recognized for the three months ended March 31, 2018. Stock-based compensation expense totaled $8,700 for the three months ended March 31, 2017. At the Company’s annual meeting of stockholders held on April 7, 2016, the Company’s stockholders approved the Natural Health Trends Corp. 2016 Equity Incentive Plan (the “2016 Plan”) to replace its 2007 Equity Incentive Plan. The 2016 Plan allows for the grant of various equity awards including incentive stock options, non-statutory options, stock, stock units, stock appreciation rights and other similar equity-based awards to the Company’s employees, officers, non-employee directors, contractors, consultants and advisors of the Company. Up to 2,500,000 shares of the Company’s common stock (subject to adjustment under certain circumstances) may be issued pursuant to awards granted. At March 31, 2018, 2,359,671 shares remained available for issuance under the 2016 Plan. On February 1, 2018, the Company granted 34,202 shares of restricted common stock under the 2016 Plan to certain employees for the purpose of further aligning their interest with those of its stockholders and settling fiscal 2017 performance incentives totaling $554,000. The shares vest on a quarterly basis over the next three years and are subject to forfeiture in the event of their termination of service to the Company under specified circumstances. The following table summarizes the Company’s restricted stock activity under the 2016 Plan:
Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component for the first three months of 2018 were as follows (in thousands):
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INCOME TAXES INCOME TAXES |
3 Months Ended |
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Mar. 31, 2018 | |
INCOME TAXES [Abstract] | |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The effective income tax rate for the three months ended March 31, 2018 was significantly impacted by recording the effect of the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 by the U.S. government. The Tax Act makes broad and complex changes to the Internal Revenue Code of 1986, as amended, which affected the Company’s year ended December 31, 2017, including, but not limited to, reducing the maximum U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, and requiring a one-time repatriation tax on certain un-repatriated earnings of foreign subsidiaries at a rate of 15.5% tax on post-1986 foreign earnings held in cash and an 8% rate on all other post-1986 earnings, which is payable over eight years beginning with 8% of the liability due with the filing of the year ended December 31, 2017 federal tax return that will be due in 2018. On December 22, 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Act. While the Company is able to make reasonable estimates of the impact of the reduction in the corporate income tax rate and the deemed repatriation transition tax, the final impact of the Tax Act may differ from these estimates, due to, among other things, changes in the Company’s interpretations and assumptions, additional guidance that may be issued by the Internal Revenue Service, and actions it may take. The Company is continuing to gather additional information to determine the final impact. Any adjustments recorded to the provisional amounts through the fourth quarter of 2018 will be included as an adjustment to income tax expense. Effective January 1, 2018, the Company is subject to the new Global Intangible Low-Taxed Income (“GILTI”) tax rules. GILTI is the excess income of foreign subsidiaries over a 10% routine return on tangible assets. After a 50% deduction, GILTI is subject to the 21% corporate tax rate. Due to the complexity of the GILTI tax rules, the Company continues to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). Although the Company has not elected an accounting policy, it has recorded a provisional amount of the GILTI tax as a current period expense for 2018. The impact of GILTI on the effective tax rate for the three months ended March 31, 2018 was approximately 10%, or $1.0 million, net of foreign tax credits attributed to GILTI. The Company will determine the appropriate accounting policy for its structure and record any necessary adjustments within the measurement period. As a result of capital return activities, the Company determined that a portion of its current undistributed foreign earnings are no longer deemed reinvested indefinitely by its non-U.S. subsidiaries. For state income tax purposes, the Company will continue to periodically reassess the needs of its foreign subsidiaries and update its indefinite reinvestment assertion as necessary. Due to the adoption of a territorial tax regime upon the enactment of the Tax Act, any foreign source portion of a qualified dividend received by a 10% U.S. corporate shareholder is exempt from U.S. federal tax, therefore resulting in any future repatriation having a minimal effect on the Company’s effective tax rate. To the extent that additional foreign earnings are not deemed permanently reinvested, the Company expects to recognize additional income tax provision at the applicable U.S. state corporate tax rate(s). As of March 31, 2018, the Company has accrued tax liabilities for earnings that it plans to repatriate out of accumulated earnings in future periods for state tax purposes only. All undistributed earnings in excess of 50% of current earnings on an annual basis are intended to be reinvested indefinitely as of March 31, 2018. |
COMMITMENTS AND CONTINGENCIES |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Securities Class Action In January 2016, two putative securities class action complaints were filed against the Company and its top executives in the United States District Court for the Central District of California. On March 29, 2016, the court consolidated these actions under the caption Ford v. Natural Health Trends Corp., Case No. 2:16-cv-00255-TJH-AFMx, appointed two Lead Plaintiffs, Mahn Dao and Juan Wang, and appointed the Rosen Law Firm and Levi & Korsinsky LLP as co-Lead Counsel for the purported class. On April 2, 2018, the court approved a class-wide settlement of the action in the amount of $1.75 million, which will be fully funded by the Company’s insurers. Shareholder Derivative Claims In February 2016, a purported shareholder derivative complaint was filed in the Superior Court of the State of California, County of Los Angeles: Zhou v. Sharng. In March 2016, a purported shareholder derivative complaint was filed in the United States District Court for the Central District of California: Kleinfeldt v. Sharng (collectively the “Derivative Complaints”). The Derivative Complaints purport to assert claims for breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement and corporate waste against certain of the Company’s officers and directors. The Derivative Complaints also purport to assert fiduciary duty claims based on alleged insider selling and conspiring to enter into several stock repurchase agreements, which allegedly harmed the Company and its assets. The Derivative Complaints allege, among other things, that the Company has been running an allegedly illegal multilevel marketing business in China, and it has made materially false and misleading statements regarding the legality of its business operations in China, and that certain officers and directors sold common stock on the basis of this allegedly material, adverse non-public information. The Derivative Complaints seek an indeterminate amount of damages, plus interest and costs, as well as various equitable remedies. On February 1, 2017, pursuant to a stipulation among the parties, the Los Angeles Superior Court entered a stay of the Zhou action pending conclusion of the related federal class action in the United States District Court for the Central District of California: Ford v. Natural Health Trends Corp. A nearly identical stipulated stay was entered in the Kleinfeldt case on February 28, 2017. On November 10, 2017, the parties to both the Zhou and Kleinfeldt actions entered into a Memorandum of Understanding (“MOU”) to resolve both actions, subject to the negotiation of a written settlement agreement and approval by the federal court in the Kleinfeldt matter. On November 15, 2017, the parties filed a joint status report and stipulation in the Zhou matter, alerting the court to the MOU and seeking to maintain the stay pending finalization and court approval of the parties’ tentative settlement. The Zhou court entered an order continuing the stay on November 17, 2017. On March 9, 2018, the parties filed a Stipulation of Settlement and supporting papers in the Kleinfeldt action. On March 22, 2018, plaintiffs filed a motion for preliminary approval of the tentative settlement. On April 4, 2018, the court entered an order preliminarily approving the proposed settlement and setting a final hearing for July 16, 2018. If final approval is granted, the proposed settlement will require certain corporate governance reforms and permit an award of up to $250,000 in attorneys’ fees to plaintiffs’ counsel, all of which will be fully funded by the Company’s insurers. Defendants continue to believe that these claims are without merit and intend to vigorously defend against them if the derivative settlement does not become final. If the proposed settlement is not finalized, the Derivative Complaints could result in monetary or other penalties that may materially affect the Company’s operating results and financial condition. Other Claims |
RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
SUBSEQUENT EVENT |
3 Months Ended |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT |
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND CONSOLIDATION CONSOLIDATION |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
ACCOUNTING PRONOUNCEMENTS ACCOUNTING PRONOUNCEMENTS |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ACCOUNTING PRONOUNCEMENTS In November 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-18 that requires amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, that requires organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual years, and early application is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities had the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. In July 2015, the FASB approved the deferral of the effective date for annual reporting periods that began after December 15, 2017, including interim reporting periods. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. See Note 3 for additional information. |
REVENUE Revenue Recognition (Policies) |
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Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue From Contracts With Customers, which was adopted on January 1, 2018 using the modified retrospective method. All revenue is recognized when the performance obligations under a contract are satisfied. Product sales are recognized when the products are shipped and title passes to independent members. Product sales to members are made pursuant to a member agreement that provides for transfer of both title and risk of loss upon the Company’s delivery to the carrier that completes delivery to the members, which is commonly referred to as “F.O.B. Shipping Point.” The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. These contracts are generally short-term in nature. Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. The reserve is based upon the return policy of each country, which varies from 14 days to one year, and their historical return rates, which range from 1% to 7% of sales. Sales returns were 2% of sales for the three months ended March 31, 2018 and 2017. No material changes in estimates have been recognized during the periods presented. See Note 5 for additional information. The Company has elected to account for shipping and handling activities performed after title has passed to members as a fulfillment cost, and accrues for the costs of shipping and handling if revenue is recognized before the contractually obligated shipping and handling activities occurs. Shipping charges billed to members are included in net sales. Costs associated with shipments are included in cost of sales. Event and training revenue is deferred and recognized as the event or training occurs. Costs of events and member training are included within selling, general and administrative expenses. |
NET INCOME PER COMMON SHARE Net Income Per Common Share (Policies) |
3 Months Ended |
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Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Diluted net income per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not yet recognized and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. |
FAIR VALUE MEASUREMENTS (Policies) |
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Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | As of March 31, 2018, cash and cash equivalents include the Company’s investments in debt securities, comprising municipal notes and bonds and corporate debt, money market funds and time deposits. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities. As such, the Company determined its investments in debt securities held at March 31, 2018 should be classified as available-for-sale and are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income in stockholders’ equity. The cost of debt securities is adjusted for amortization of premiums and discounts to maturity. This amortization is included in other income. Realized gains and losses, as well as interest income, are also included in other income. The fair values of securities are based on quoted market prices. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The carrying amounts of the Company’s financial instruments, including cash and cash equivalents and accounts payable, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. The Company’s cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. |
REVENUE Revenue (Tables) |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] |
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Revenue from External Customers by Products and Services [Table Text Block] |
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NET INCOME PER COMMON SHARE Net Income Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables illustrate the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data):
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BALANCE SHEET COMPONENTS Balance Sheet Components (Tables) |
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Balance Sheet Components [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Additional Balance Sheet Components [Table Text Block] | The components of certain balance sheet amounts are as follows (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands):
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STOCKHOLDERS' EQUITY RESTRICTED STOCK ACTIVITY (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Activity | The following table summarizes the Company’s restricted stock activity under the 2016 Plan:
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STOCKHOLDERS' EQUITY ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in accumulated other comprehensive loss by component for the first three months of 2018 were as follows (in thousands):
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NET INCOME PER COMMON SHARE Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
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Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 28,747 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ 8,824 | $ 10,425 |
Weighted Average Number of Shares Outstanding, Basic | 11,286,000 | 11,229,000 |
Earnings Per Share, Basic | $ 0.78 | $ 0.93 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 2,000 | 22,000 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 8,824 | $ 10,425 |
Weighted Average Number of Shares Outstanding, Diluted | 11,288,000 | 11,251,000 |
Earnings Per Share, Diluted | $ 0.78 | $ 0.93 |
INCOME TAXES NARRATIVE (Details) $ in Millions |
3 Months Ended |
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Mar. 31, 2018
USD ($)
| |
INCOME TAXES [Abstract] | |
GILTI provisional tax, net of foreign credits | $ 1.0 |
COMMITMENTS AND CONTINGENCIES NARRATIVE (Details) $ in Thousands |
3 Months Ended |
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Mar. 31, 2018
USD ($)
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Securities Class Action | |
Loss Contingencies [Line Items] | |
Litigation Settlement, Amount | $ 1,750 |
shareholder derivative claim [Member] | |
Loss Contingencies [Line Items] | |
Litigation Settlement, Amount | $ 250 |
RELATED PARTY TRANSACTIONS NARRATIVE (Detail) - Broady Health Sciences - ReStore - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Feb. 28, 2013 |
Mar. 31, 2018 |
Mar. 31, 2017 |
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Related Party Transaction [Line Items] | |||
Royalty rate | 2.50% | ||
Royalty expense | $ 83 | $ 91 | |
Number of days for termination notice | 120 days |
SUBSEQUENT EVENT - NARRATIVE (Details) - $ / shares |
3 Months Ended | ||
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Apr. 17, 2018 |
Mar. 31, 2018 |
Mar. 31, 2017 |
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Subsequent Event [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.13 | $ 0.44 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.14 | ||
CommonStockSpecialDividendsPerShareDeclared | $ 1.76 |
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