Document And Entity Information
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Document And Entity Information
 6 Months Ended
Jun. 29, 2014
Aug. 01, 2014
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 29, 2014  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2014  
Entity Registrant Name NATIONAL PRESTO INDUSTRIES INC  
Entity Central Index Key 0000080172  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   6,911,560
Entity Current Reporting Status Yes  

Condensed Consolidated Balance Sheets
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Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2014
Dec. 31, 2013
CURRENT ASSETS:    
Cash and cash equivalents $ 20,021 $ 22,953
Marketable securities 23,230 36,404
Accounts receivable, net 42,985 84,322
Inventories:    
Finished goods 42,325 36,078
Work in process 57,139 49,690
Raw materials 11,142 6,746
Supplies 73  
Total inventory 110,679 92,514
Deferred tax assets 8,083 8,083
Income tax receivable 6,043 213
Other current assets 17,532 19,584
Total current assets 228,573 264,073
Property, Plant and equipment, gross 165,266 155,872
Less allowance for depreciation 70,937 66,283
PROPERTY, PLANT AND EQUIPMENT, NET 94,329 89,589
GOODWILL 11,485 11,485
INTANGIBLE ASSETS, net 18,874 24,698
NOTE RECEIVABLE 3,756 3,695
Total assets 357,017 393,540
CURRENT LIABILITIES:    
Accounts payable 26,945 38,323
Accrued liabilities 16,135 15,907
Total current liabilities 43,080 54,230
DEFERRED INCOME TAX 6,761 6,759
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS' EQUITY    
Common stock, $1 par value: Authorized: 12,000,000 Issued: 7,440,518 7,441 7,441
Paid-in capital 5,486 4,998
Retained earnings 310,802 336,895
Accumulated other comprehensive income 11 8
Stockholders' Equity before Treasury Stock 323,740 349,342
Treasury stock, at cost 16,564 16,791
Total stockholders' equity 307,176 332,551
Total liabilities and stockholders' equity $ 357,017 $ 393,540

Condensed Consolidated Balance Sheets (Parenthetical)
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 29, 2014
Dec. 31, 2013
Consolidated Balance Sheets [Abstract]    
Common stock, par value $ 1 $ 1
Common stock, shares authorized 12,000,000 12,000,000
Common stock, shares issued 7,440,518 7,440,518

Consolidated Statements Of Comprehensive Income
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Consolidated Statements Of Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Consolidated Statements Of Comprehensive Income [Abstract]        
Net sales $ 88,312 $ 101,396 $ 174,866 $ 184,586
Cost of sales 72,170 82,985 143,004 149,966
Gross profit 16,142 18,411 31,862 34,620
Selling and general expenses 6,440 5,426 12,735 11,110
Intangibles amortization 3,381 166 5,824 333
Operating profit 6,321 12,819 13,303 23,177
Other income 148 147 312 355
Earnings before provision for income taxes 6,469 12,966 13,615 23,532
Income tax provision 2,298 4,665 4,754 8,377
Net earnings 4,171 8,301 8,861 15,155
Weighted average common shares outstanding:        
Weighted average shares outstanding (basic and diluted) 6,929 6,905 6,925 6,904
Net earnings per share:        
Basic and diluted $ 0.60 $ 1.20 $ 1.28 $ 2.20
Other comprehensive income (loss), net of tax:        
Unrealized gain (loss) on available-for-sale securities (1) (28) 3 (20)
Comprehensive income $ 4,170 $ 8,273 $ 8,864 $ 15,135
Cash dividends declared and paid per common share $ 0.00 $ 0.00 $ 5.05 [1] $ 0.00 [1]
[1] An accelerated payment was made in late December 2012 of the annual 2013 dividend. The acceleration was occasioned by the uncertainty over the federal income tax rates that would be in effect for 2013. In contrast, the annual 2014 dividend payment was made during the first quarter of 2014.

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net earnings $ 8,861 $ 15,155
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Provision for depreciation 4,713 4,181
Intangibles amortization 5,824 333
Provision for doubtful accounts 360 86
Other 263 293
Changes in:    
Accounts receivable 42,475 3,891
Inventories (13,477) (20,278)
Other current assets 2,080 (3,444)
Accounts payable and accrued liabilities (11,606) 2,476
Federal and state income taxes (5,826) (1,580)
Net cash provided by operating activities 33,667 1,113
Cash flows from investing activities:    
Marketable securities purchased (1,208) (6,151)
Marketable securities - maturities and sales 14,388 16,650
Acquisition of property, plant and equipment (4,953) (13,425)
Acquisition of businesses, net of cash acquired (10,534)  
Sale of property, plant and equipment 300 8
Net cash used in investing activities (2,007) (2,918)
Cash flows from financing activities:    
Dividends paid (34,954)  
Other 362  
Net cash used in financing activities (34,592)  
Net decrease in cash and cash equivalents (2,932) (1,805)
Cash and cash equivalents at beginning of period 22,953 37,437
Cash and cash equivalents at end of period $ 20,021 $ 35,632

Basis Of Presentation
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Basis Of Presentation
 6 Months Ended
Jun. 29, 2014
Basis Of Presentation [Abstract]  
Basis Of Presentation

NOTE A – BASIS OF PRESENTATION 

The consolidated interim financial statements included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management of the Company, the consolidated interim financial statements reflect all the adjustments which were of a normal recurring nature necessary for a fair presentation of the results of the interim periods.  The condensed consolidated balance sheet as of December 31, 2013 is summarized from consolidated financial statements, but does not include all the disclosures contained therein and should be read in conjunction with the 2013 Annual Report on Form 10-K.  Interim results for the period are not indicative of those for the year.


Reclassifications
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Reclassifications
 6 Months Ended
Jun. 29, 2014
Reclassifications [Abstract]  
Reclassifications

NOTE B – RECLASSIFICATIONS

Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation.  These reclassifications did not affect net earnings or stockholders’ equity as previously reported.


Earnings Per Share
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Earnings Per Share
 6 Months Ended
Jun. 29, 2014
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE C – EARNINGS PER SHARE 

Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period.  Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable.  Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations.    


Business Segments
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Business Segments
 6 Months Ended
Jun. 29, 2014
Business Segments [Abstract]  
Business Segments

NOTE D – BUSINESS SEGMENTS 

In the following summary, operating profit represents earnings before other income, principally interest income and income taxes.  The Company's segments operate discretely from each other with no shared manufacturing facilities.  Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

Housewares / Small Appliances

 

Defense Products

 

Absorbent Products

 

Total

Quarter ended June 29, 2014

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
21,949 

 

$
50,367 

 

$
15,996 

 

$
88,312 

Gross profit

 

 

4,408 

 

 

13,200 

 

 

(1,466)

 

 

16,142 

Operating profit

 

 

1,438 

 

 

7,019 

 

 

(2,136)

 

 

6,321 

Total assets

 

 

140,963 

 

 

152,475 

 

 

63,579 

 

 

357,017 

Depreciation and amortization

 

 

243 

 

 

4,020 

 

 

1,493 

 

 

5,756 

Capital expenditures

 

 

155 

 

 

287 

 

 

643 

 

 

1,085 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
24,489 

 

$
58,516 

 

$
18,391 

 

$
101,396 

Gross profit

 

 

4,574 

 

 

13,468 

 

 

369 

 

 

18,411 

Operating profit

 

 

1,812 

 

 

11,108 

 

 

(101)

 

 

12,819 

Total assets

 

 

176,646 

 

 

132,073 

 

 

61,533 

 

 

370,252 

Depreciation and amortization

 

 

275 

 

 

540 

 

 

1,418 

 

 

2,233 

Capital expenditures

 

 

164 

 

 

4,715 

 

 

2,777 

 

 

7,656 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

Housewares/

 

 

 

 

 

 

 

 

 

 

 

 

Small

 

 

Defense

 

 

Absorbent

 

 

 

 

 

 

Appliances

 

 

Products

 

 

Products

 

 

Total

Six Months ended June 29, 2014

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
41,312 

 

$
98,656 

 

$
34,898 

 

$
174,866 

Gross profit

 

 

8,197 

 

 

24,505 

 

 

(840)

 

 

31,862 

Operating profit

 

 

2,382 

 

 

13,046 

 

 

(2,125)

 

 

13,303 

Total assets

 

 

140,963 

 

 

152,475 

 

 

63,579 

 

 

357,017 

Depreciation and amortization

 

 

485 

 

 

7,128 

 

 

2,924 

 

 

10,537 

Capital expenditures

 

 

319 

 

 

889 

 

 

3,745 

 

 

4,953 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
49,378 

 

$
97,467 

 

$
37,741 

 

$
184,586 

Gross profit

 

 

9,031 

 

 

23,534 

 

 

2,055 

 

 

34,620 

Operating profit

 

 

3,370 

 

 

18,773 

 

 

1,034 

 

 

23,177 

Total assets

 

 

176,646 

 

 

132,073 

 

 

61,533 

 

 

370,252 

Depreciation and amortization

 

 

557 

 

 

1,221 

 

 

2,736 

 

 

4,514 

Capital expenditures

 

 

278 

 

 

6,298 

 

 

6,849 

 

 

13,425 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Business Segments (Tables)
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Business Segments (Tables)
 6 Months Ended
Jun. 29, 2014
Business Segments [Abstract]  
Summary Of Business Segments Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

Housewares / Small Appliances

 

Defense Products

 

Absorbent Products

 

Total

Quarter ended June 29, 2014

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
21,949 

 

$
50,367 

 

$
15,996 

 

$
88,312 

Gross profit

 

 

4,408 

 

 

13,200 

 

 

(1,466)

 

 

16,142 

Operating profit

 

 

1,438 

 

 

7,019 

 

 

(2,136)

 

 

6,321 

Total assets

 

 

140,963 

 

 

152,475 

 

 

63,579 

 

 

357,017 

Depreciation and amortization

 

 

243 

 

 

4,020 

 

 

1,493 

 

 

5,756 

Capital expenditures

 

 

155 

 

 

287 

 

 

643 

 

 

1,085 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
24,489 

 

$
58,516 

 

$
18,391 

 

$
101,396 

Gross profit

 

 

4,574 

 

 

13,468 

 

 

369 

 

 

18,411 

Operating profit

 

 

1,812 

 

 

11,108 

 

 

(101)

 

 

12,819 

Total assets

 

 

176,646 

 

 

132,073 

 

 

61,533 

 

 

370,252 

Depreciation and amortization

 

 

275 

 

 

540 

 

 

1,418 

 

 

2,233 

Capital expenditures

 

 

164 

 

 

4,715 

 

 

2,777 

 

 

7,656 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

Housewares/

 

 

 

 

 

 

 

 

 

 

 

 

Small

 

 

Defense

 

 

Absorbent

 

 

 

 

 

 

Appliances

 

 

Products

 

 

Products

 

 

Total

Six Months ended June 29, 2014

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
41,312 

 

$
98,656 

 

$
34,898 

 

$
174,866 

Gross profit

 

 

8,197 

 

 

24,505 

 

 

(840)

 

 

31,862 

Operating profit

 

 

2,382 

 

 

13,046 

 

 

(2,125)

 

 

13,303 

Total assets

 

 

140,963 

 

 

152,475 

 

 

63,579 

 

 

357,017 

Depreciation and amortization

 

 

485 

 

 

7,128 

 

 

2,924 

 

 

10,537 

Capital expenditures

 

 

319 

 

 

889 

 

 

3,745 

 

 

4,953 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

External net sales

 

$
49,378 

 

$
97,467 

 

$
37,741 

 

$
184,586 

Gross profit

 

 

9,031 

 

 

23,534 

 

 

2,055 

 

 

34,620 

Operating profit

 

 

3,370 

 

 

18,773 

 

 

1,034 

 

 

23,177 

Total assets

 

 

176,646 

 

 

132,073 

 

 

61,533 

 

 

370,252 

Depreciation and amortization

 

 

557 

 

 

1,221 

 

 

2,736 

 

 

4,514 

Capital expenditures

 

 

278 

 

 

6,298 

 

 

6,849 

 

 

13,425 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Business Segments (Schedule Of Segment Information) (Details)
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Business Segments (Schedule Of Segment Information) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Dec. 31, 2013
Segment Reporting Information [Line Items]          
External net sales $ 88,312 $ 101,396 $ 174,866 $ 184,586  
Gross profit 16,142 18,411 31,862 34,620  
Operating profit 6,321 12,819 13,303 23,177  
Total assets 357,017 370,252 357,017 370,252 393,540
Depreciation and amortization 5,756 2,233 10,537 4,514  
Capital expenditures 1,085 7,656 4,953 13,425  
Housewares/ Small Appliances [Member]
          
Segment Reporting Information [Line Items]          
External net sales 21,949 24,489 41,312 49,378  
Gross profit 4,408 4,574 8,197 9,031  
Operating profit 1,438 1,812 2,382 3,370  
Total assets 140,963 176,646 140,963 176,646  
Depreciation and amortization 243 275 485 557  
Capital expenditures 155 164 319 278  
Defense Products [Member]
          
Segment Reporting Information [Line Items]          
External net sales 50,367 58,516 98,656 97,467  
Gross profit 13,200 13,468 24,505 23,534  
Operating profit 7,019 11,108 13,046 18,773  
Total assets 152,475 132,073 152,475 132,073  
Depreciation and amortization 4,020 540 7,128 1,221  
Capital expenditures 287 4,715 889 6,298  
Absorbent Products [Member]
          
Segment Reporting Information [Line Items]          
External net sales 15,996 18,391 34,898 37,741  
Gross profit (1,466) 369 (840) 2,055  
Operating profit (2,136) (101) (2,125) 1,034  
Total assets 63,579 61,533 63,579 61,533  
Depreciation and amortization 1,493 1,418 2,924 2,736  
Capital expenditures $ 643 $ 2,777 $ 3,745 $ 6,849  

Fair Value Of Financial Instruments
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Fair Value Of Financial Instruments
 6 Months Ended
Jun. 29, 2014
Fair Value Of Financial Instruments [Abstract]  
Fair Value Of Financial Instruments

NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company utilizes the methods of fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the immediate or short-term maturity of these financial instruments.    


Cash, Cash Equivalents And Marketable Securities
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Cash, Cash Equivalents And Marketable Securities
 6 Months Ended
Jun. 29, 2014
Cash, Cash Equivalents And Marketable Securities [Abstract]  
Cash, Cash Equivalents And Marketable Securities

NOTE F - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES 

The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents.  Cash equivalents include money market funds.  The Company deposits its cash in high quality financial institutions.  The balances, at times, may exceed federally insured limits.  Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).

 

The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity.  Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.

 

At June 29, 2014 and December 31, 2013, cost for marketable securities was determined using the specific identification method.  A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table.  All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.  There were no transfers into or out of Level 2 during the six months ended June 29, 2014.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

 

MARKETABLE SECURITIES

 

 

Amortized Cost

 

Fair Value

 

Gross Unrealized Gains

 

Gross Unrealized Losses

June 29, 2014

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt  Municipal Bonds

 

$
10,739 

 

$
10,756 

 

$
17 

 

$

 -

Variable Rate Demand Notes

 

 

12,474 

 

 

12,474 

 

 

 -

 

 

 -

Total Marketable Securities

 

$
23,213 

 

$
23,230 

 

$
17 

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt  Municipal Bonds

 

$
20,813 

 

$
20,825 

 

$
18 

 

$
6 

Variable Rate Demand Notes

 

 

15,579 

 

 

15,579 

 

 

 -

 

 

 -

Total Marketable Securities

 

$
36,392 

 

$
36,404 

 

$
18 

 

$
6 

 

 

Proceeds from maturities and sales of available-for-sale securities totaled $4,476,000 and $14,386,000 for the three month periods ended June 29, 2014 and June  30, 2013,  and totaled $14,388,000 and $16,650,000 for the six months then ended, respectively.  There were no gross gains or losses related to sales of marketable securities during the same periods.  Net unrealized gains (losses) included in other comprehensive income were $(1,000) and $(43,000) before taxes for the three month periods ended June 29, 2014 and June  30, 2013,  and were $5,000 and $(31,000) before taxes for the six month periods then ended, respectively.  No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

 

The contractual maturities of the marketable securities held at June 29, 2014 are as follows: $8,533,000 within one year; $3,193,000 beyond one year to five years; $4,823,000 beyond five years to ten years, and $6,681,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days.  Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable.


Cash, Cash Equivalents And Marketable Securities (Tables)
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Cash, Cash Equivalents And Marketable Securities (Tables)
 6 Months Ended
Jun. 29, 2014
Cash, Cash Equivalents And Marketable Securities [Abstract]  
Summary Of The Amortized Costs And Fair Values Of Marketable Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

 

MARKETABLE SECURITIES

 

 

Amortized Cost

 

Fair Value

 

Gross Unrealized Gains

 

Gross Unrealized Losses

June 29, 2014

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt  Municipal Bonds

 

$
10,739 

 

$
10,756 

 

$
17 

 

$

 -

Variable Rate Demand Notes

 

 

12,474 

 

 

12,474 

 

 

 -

 

 

 -

Total Marketable Securities

 

$
23,213 

 

$
23,230 

 

$
17 

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt  Municipal Bonds

 

$
20,813 

 

$
20,825 

 

$
18 

 

$
6 

Variable Rate Demand Notes

 

 

15,579 

 

 

15,579 

 

 

 -

 

 

 -

Total Marketable Securities

 

$
36,392 

 

$
36,404 

 

$
18 

 

$
6 

 


Cash, Cash Equivalents and Marketable Securities (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details)
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Cash, Cash Equivalents and Marketable Securities (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 29, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]    
MARKETABLE SECURITIES, Amortized Cost $ 23,213 $ 36,392
MARKETABLE SECURITIES, Fair Value 23,230 36,404
MARKETABLE SECURITIES, Gross Unrealized Gains 17 18
MARKETABLE SECURITIES - Gross Unrealized Losses   6
Tax-Exempt Municipal Bonds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
MARKETABLE SECURITIES, Amortized Cost 10,739 20,813
MARKETABLE SECURITIES, Fair Value 10,756 20,825
MARKETABLE SECURITIES, Gross Unrealized Gains 17 18
MARKETABLE SECURITIES - Gross Unrealized Losses   6
Variable Rate Demand Notes [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
MARKETABLE SECURITIES, Amortized Cost 12,474 15,579
MARKETABLE SECURITIES, Fair Value $ 12,474 $ 15,579

Cash, Cash Equivalents And Marketable Securities (Narrative) (Details)
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Cash, Cash Equivalents And Marketable Securities (Narrative) (Details) (USD $)
 3 Months Ended 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Cash, Cash Equivalents And Marketable Securities [Line Items]        
Transfers into Level 2 $ 0   $ 0  
Transfers out of Level 2 0   0  
Proceeds from sales of available-for-sale securities 4,476,000 14,386,000 14,388,000 16,650,000
Gross gains or losses related to sales of marketable securities 0 0 0 0
Net unrealized losses included in accumulated other comprehensive income, before taxes (1,000) (43,000) 5,000 (31,000)
Contractual maturities of marketable securities within 1 year 8,533,000   8,533,000  
Contractual maturities of marketable securities, years 2-5 3,193,000   3,193,000  
Contractual maturities of marketable securities, years 6-10 4,823,000   4,823,000  
Contractual maturities of marketable securities, after 10 years 6,681,000   6,681,000  
Marketable securities liquidation period     7 days  
Accumulated Net Unrealized Investment Gain (Loss) [Member]
        
Cash, Cash Equivalents And Marketable Securities [Line Items]        
Reclassification out of AOCI $ 0 $ 0 $ 0 $ 0

Commitments And Contingencies
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Commitments And Contingencies
 6 Months Ended
Jun. 29, 2014
Commitments And Contingencies [Abstract]  
Commitments And Contingencies

NOTE G – COMMITMENTS AND CONTINGENCIES

The Company is involved in largely routine litigation incidental to its business.  Management believes the ultimate outcome of the litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations.


Business Acquisition
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Business Acquisition
 6 Months Ended
Jun. 29, 2014
Business Acquisition [Abstract]  
Business Acquisition

NOTE H – BUSINESS ACQUISITION

On January 24, 2014, AMTEC Corporation, a wholly-owned subsidiary of the Company, purchased substantially all of the assets of Chemring Energetic Devices, Inc.’s business located in Clear Lake, South Dakota, and all of the real property owned by Technical Ordnance Realty, LLC.  The Clear Lake facility is a manufacturer of detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials.  Its major customers include U.S. and foreign government agencies, AMTEC Corporation, and other defense contractors.  The acquisition of the Clear Lake facility will serve to complement the Defense segment’s existing line of products.  The total consideration transferred was $10,534,000, consisting of $10,000,000 of cash paid at closing, and an additional cash payment of $534,000, which was made during the second quarter of 2014.

 

The acquisition was accounted for under the acquisition method of accounting with the Company treated as the acquiring entity.  Accordingly, the consideration paid by the Company to complete the acquisition has been recorded to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of acquisition. The carrying values for current assets and liabilities were deemed to approximate their fair values due to the short-term nature of these assets and liabilities.  The following table shows the amounts recorded as of the acquisition date.  The allocation differs from what was previously reported due to a final true up during the second quarter of 2014, the amount of which was not significant.

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

Receivables

$
1,498 

Inventory

 

4,688 

Other current assets

 

28 

Property, plant and equipment

 

4,800 

  Total assets acquired

 

11,014 

Less: Current liabilities assumed

 

480 

Net assets acquired

$
10,534 

 

The amount shown above for receivables represents the gross accounts receivable from the sales of goods, net of an allowance for doubtful accounts of $20,000.

 

The Company’s results of operations for the second quarter of 2014 includes revenue of $3,992,000 and earnings of $550,000 from the acquired facility, and revenue of $6,007,000 and earnings of $705,000 from the acquired facility from the date of acquisition through June 29, 2014.  The following pro forma condensed consolidated results of operations has been prepared as if the acquisition had occurred as of January 1, 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

(in thousands, except per share data)

 

Quarter Ended

 

Six Months Ended

 

June 29, 2014

 

June 30, 2013

 

June 29, 2014

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$
88,312 

 

$
106,380 

 

$
175,501 

 

$
193,701 

Net earnings

 

4,171 

 

 

8,368 

 

 

8,581 

 

 

15,350 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share (basic and diluted)

$
0.60 

 

$
1.21 

 

$
1.24 

 

$
2.22 

Weighted average shares outstanding (basic and diluted)

 

6,929 

 

 

6,905 

 

 

6,925 

 

 

6,904 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The unaudited pro forma financial information presented above is not intended to represent or be indicative of what would have occurred if the transactions had taken place on the dates presented and is not indicative of what the Company’s actual results of operations would have been had the acquisitions been completed at the beginning of the periods indicated above. Further, the pro forma combined results do not reflect one-time costs to fully merge and operate the combined organization more efficiently, or anticipated synergies expected to result from the combination and should not be relied upon as being indicative of the future results that the Company will experience.


Business Acquisition (Tables)
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Business Acquisition (Tables)
 6 Months Ended
Jun. 29, 2014
Business Acquisition [Abstract]  
Summary of Assets Acquired and Liabilities Assumed in a Business Combination

 

 

 

 

 

 

 

(in thousands)

 

 

 

Receivables

$
1,498 

Inventory

 

4,688 

Other current assets

 

28 

Property, plant and equipment

 

4,800 

  Total assets acquired

 

11,014 

Less: Current liabilities assumed

 

480 

Net assets acquired

$
10,534 

 

Summary Pro Forma Results of Operations for a Material Business Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

(in thousands, except per share data)

 

Quarter Ended

 

Six Months Ended

 

June 29, 2014

 

June 30, 2013

 

June 29, 2014

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$
88,312 

 

$
106,380 

 

$
175,501 

 

$
193,701 

Net earnings

 

4,171 

 

 

8,368 

 

 

8,581 

 

 

15,350 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share (basic and diluted)

$
0.60 

 

$
1.21 

 

$
1.24 

 

$
2.22 

Weighted average shares outstanding (basic and diluted)

 

6,929 

 

 

6,905 

 

 

6,925 

 

 

6,904 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Business Acquisition (Schedule of Assets Acquired and Liabilities Assumed) (Details)
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Business Acquisition (Schedule of Assets Acquired and Liabilities Assumed) (Details) (Tech Ord [Member], USD $)
In Thousands, unless otherwise specified
Jan. 24, 2014
Tech Ord [Member]
  
Business Acquisition [Line Items]  
Receivables $ 1,498
Inventory 4,688
Other Current Assets 28
Property, Plant and Equipment 4,800
Total Assets Acquired 11,014
Less: Current Liabilities Assumed 480
Net Assets Acquired $ 10,534

Business Acquisition (Schedule of Pro Forma Results of Operatiaons) (Details)
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Business Acquisition (Schedule of Pro Forma Results of Operatiaons) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Business Acquisition [Line Items]        
Weighted average shares outstanding (basic and diluted) 6,929 6,905 6,925 6,904
Tech Ord [Member]
        
Business Acquisition [Line Items]        
Net Sales $ 88,312 $ 106,380 $ 175,501 $ 193,701
Net Earnings $ 4,171 $ 8,368 $ 8,581 $ 15,350
Net earnings per share (basic and diluted) $ 0.60 $ 1.21 $ 1.24 $ 2.22
Weighted average shares outstanding (basic and diluted) 6,929 6,905 6,925 6,904

Business Acquisition (Narrative) (Details)
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Business Acquisition (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 29, 2014
Jun. 30, 2013
Jun. 29, 2014
Jun. 30, 2013
Jan. 24, 2014
Tech Ord [Member]
Jun. 29, 2014
Tech Ord [Member]
Jun. 29, 2014
Tech Ord [Member]
Business Acquisition [Line Items]              
Net sales $ 88,312 $ 101,396 $ 174,866 $ 184,586      
Business Combination, Consideration Transferred         10,534    
Cash Paid to Acquire Business         10,000 534  
Estimated Amount of Acquired Receivable Uncollectible         20    
Revenue of Acquiree Included in Conolidated Income Statement Since Acquisition Date           3,992 6,007
Earnings (Loss) of Acquiree Included in Conolidated Income Statement Since Acquisition Date           $ 550 $ 705

Recently Issued Accounting Pronouncement
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Recently Issued Accounting Pronouncement
 6 Months Ended
Jun. 29, 2014
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Recently Issued Accounting Pronouncement

NOTE I – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT

In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, but does not expect the impact to be material.