Document And Entity Information
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6 Months Ended | |
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Jun. 30, 2015
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Jul. 31, 2015
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Entity Registrant Name | TILE SHOP HOLDINGS, INC. | |
Entity Central Index Key | 0001552800 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 51,320,463 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)
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Jun. 30, 2015
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Dec. 31, 2014
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Common Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued (in shares) | 51,316,713 | 51,314,005 |
Common Stock, Shares Outstanding (in shares) | 51,316,713 | 51,314,005 |
Preferred Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
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Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2015
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Jun. 30, 2014
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Jun. 30, 2015
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Jun. 30, 2014
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Net sales | $ 75,706 | $ 66,665 | $ 148,669 | $ 131,044 |
Cost of sales | 24,413 | 20,163 | 46,405 | 39,609 |
Gross profit | 51,293 | 46,502 | 102,264 | 91,435 |
Selling, general and administrative expenses | 42,855 | 39,382 | 86,631 | 77,355 |
Income from operations | 8,438 | 7,120 | 15,633 | 14,080 |
Interest expense | 795 | 735 | 1,598 | 1,445 |
Other income (expense) | 34 | (4) | 63 | (72) |
Income before income taxes | 7,677 | 6,381 | 14,098 | 12,563 |
Provision for income taxes | (3,187) | (2,553) | (5,949) | (5,025) |
Net income | $ 4,490 | $ 3,828 | $ 8,149 | $ 7,538 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.16 | $ 0.15 |
Diluted (in dollars per share) | $ 0.09 | $ 0.07 | $ 0.16 | $ 0.15 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 51,125,985 | 51,003,063 | 51,125,605 | 51,001,589 |
Diluted (in shares) | 51,388,602 | 51,323,770 | 51,212,955 | 51,361,967 |
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Condensed Consolidates Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2015
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Jun. 30, 2014
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Jun. 30, 2015
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Jun. 30, 2014
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Net income | $ 4,490 | $ 3,828 | $ 8,149 | $ 7,538 |
Other comprehensive income, net of tax | ||||
Currency translation adjustment | 1 | 1 | ||
Other comprehensive income | 1 | 1 | ||
Comprehensive income | $ 4,491 | $ 3,828 | $ 8,150 | $ 7,538 |
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Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) (USD $)
In Thousands, except Share data |
Common Stock [Member]
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Additional Paid-in Capital [Member]
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Treasury Stock [Member]
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Retained Earnings [Member]
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Total
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Balance at at Dec. 31, 2013 | $ 5 | $ 169,719 | $ (91,228) | $ 78,496 | ||
Balance at (in shares) at Dec. 31, 2013 | 51,229,720 | |||||
Issuance of restricted shares (in shares) | 76,066 | |||||
Stock based compensation | 4,617 | 4,617 | ||||
Stock option exercises (in shares) | 8,219 | |||||
Stock option exercises | 35 | 35 | ||||
Net income | 10,547 | 10,547 | ||||
Balance at at Dec. 31, 2014 | 5 | 174,371 | (80,681) | 93,695 | ||
Balance at (in shares) at Dec. 31, 2014 | 51,314,005 | 51,314,005 | ||||
Stock based compensation | 2,642 | 2,642 | ||||
Stock option exercises (in shares) | 2,708 | |||||
Stock option exercises | 27 | 27 | ||||
Net income | 8,149 | 8,149 | ||||
Foreign currency translation adjustments | 1 | 1 | ||||
Balance at at Jun. 30, 2015 | $ 5 | $ 177,040 | $ (72,532) | $ 1 | $ 104,514 | |
Balance at (in shares) at Jun. 30, 2015 | 51,316,713 | 51,316,713 |
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Note 1 - Background
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6 Months Ended |
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Jun. 30, 2015
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Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | Note 1: Background The Tile Shop, LLC (“The Tile Shop”) was formed on December 30, 2002, as a Delaware limited liability company and began operations on January 1, 2003. Tile Shop Holdings, Inc. (“Holdings,” and together with its wholly owned subsidiaries, the “Company”) was incorporated under the laws of the state of Delaware in June 2012 to become the parent company of The Tile Shop, LLC. The Company is engaged in the sale of tile, stone, glass, and other flooring products. The Company also manufactures setting and maintenance materials in Michigan, Virginia, Oklahoma and Wisconsin. The Company’s primary market is retail sales to consumers, contractors, designers and small home builders. As of June 30, 2015, the Company had 110 stores in 31 states and an on-line retail operation. The Company also has distribution centers located in Michigan, Virginia, Oklahoma and Wisconsin. The Company has a sourcing operation located in China. The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature, including the elimination of all intercompany transactions. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015. These statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The accounting policies used in preparing these Condensed Consolidated Financial Statements are the same as those described in Note 1 to the Consolidated Financial Statements in such Form 10-K. |
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Note 2 - Inventories
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Jun. 30, 2015
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Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Text Block] | Note 2: Inventories: Inventories are stated at the lower of cost (determined on the weighted average cost method) or market. Inventories consist primarily of merchandise held for sale. Inventories were comprised of the following as of June 30, 2015 and December 31, 2014:
The Company records provisions for losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. |
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Note 3 - Income Taxes
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Jun. 30, 2015
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Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 3: Income taxes: The Company's effective tax rate on net income before income taxes for the three month periods ended June 30, 2015 and 2014 was 41.5% and 40.0%, respectively. For the three month periods ended June 30, 2015 and 2014, the Company recorded a provision for income taxes of $3.2 million and $2.6 million, respectively. The effective tax rate during the three month period ended June 30, 2015 was higher due to the impact of state tax rate changes on the Company’s deferred tax balances, which resulted in an unfavorable adjustment to tax expense. The Company's effective tax rate on net income before income taxes for the six month periods ended June 30, 2015 and 2014 was 42.2% and 40.0%, respectively. For the six month periods ended June 30, 2015 and 2014, the Company recorded a provision for income taxes of $5.9 million and $5.0 million, respectively. The effective tax rate during the six month period ended June 30, 2015 was higher due to the impact of state tax rate changes on the Company’s deferred tax balances, which resulted in an unfavorable adjustment to tax expense. The Company records interest and penalties relating to uncertain tax positions in income tax expense. As of June 30, 2015 and 2014, the Company has not recognized any liabilities for uncertain tax positions nor have interest and penalties related to uncertain tax positions been accrued. |
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Note 4 - Earnings Per Share
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Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | Note 4: Earnings Per Share: Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding, after taking into consideration all dilutive potential shares outstanding during the period. 8 Til e Sho p Holdings , Inc . an d Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) Basic and diluted earnings per share were calculated as follows:
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Note 5 - Other Accrued Liabilities
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Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 5: Other Accrued Liabilities Other accrued liabilities consisted of the following:
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Note 6 - Long-term Debt
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Jun. 30, 2015
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Notes to Financial Statements | |||||||||||||||||||||
Long-term Debt [Text Block] | Note 6: Long-term Debt On June 2, 2015, the Company and its operating subsidiary, The Tile Shop, LLC, entered into a credit agreement with Fifth Third Bank, Bank of America, N.A., and Huntington National Bank (the “Credit Agreement”). The Credit Agreement provides the Company with a $125.0 million senior secured credit facility, comprised of a five-year $50.0 million term loan and a $75.0 million revolving line of credit. The Credit Agreement is secured by virtually all of the assets of the Company, including but not limited to, inventory, receivables, equipment and real property. Borrowings pursuant to the Credit Agreement bear interest at either a base rate or a LIBOR-based rate, at the option of the Company. The LIBOR-based rate will range from LIBOR plus 1.50% to 2.00%, depending on The Tile Shop’s leverage ratio. The base rate is equal to the greatest of: (a) the Federal funds rate plus 0.50%, (b) the Fifth Third Bank “prime rate,” and (c) the Eurodollar rate plus 1.00%, in each case plus 0.50% to 1.00% depending on The Tile Shop’s leverage ratio. At June 30, 2015 the base interest rate was 4.00% and the LIBOR-based interest rate was 1.94%. Borrowings outstanding consisted of $18.0 million on the revolving line of credit and $50.0 million on the term loan as of June 30, 2015. Additional borrowings pursuant to the Credit Agreement may be used to support the Company’s growth and for working capital purposes. The Company incurred $1.0 million of debt issuance costs in connection with the Credit Agreement. These costs were capitalized as other current and other noncurrent assets that will be amortized over the five-year life of the credit agreement. The term loan requires quarterly principal payments as follows (in thousands):
The Credit Agreement contains customary events of default, conditions to borrowings, and restrictive covenants, including restrictions on the Company’s ability to dispose of assets, make acquisitions, incur additional debt, incur liens, make investments, or enter into transactions with affiliates on other than terms that could be obtained in an arm’s length transaction. The Credit Agreement also includes financial and other covenants including covenants to maintain certain fixed charge coverage ratios and rent adjusted leverage ratios. In addition, except with respect to pro rata payments made by The Tile Shop or other subsidiaries to the Company or any other equity owner of such entity, the Credit Agreement prohibits the payments of cash dividends. The Company was in compliance with the covenants as of June 30, 2015. The Credit Agreement superseded and replaced in its entirety the Company’s senior secured credit facility with Bank of America, N.A. dated October 3, 2012, as amended on April 30, 2013, July 8, 2013, March 26, 2014 and September 29, 2014. The Company used the $50.0 million term loan and $23.0 million drawn on the line of credit pursuant to the Credit Agreement to refinance all of the existing indebtedness outstanding under the Company’s prior credit facility in the amount of approximately $73.0 million, which consisted of $72.8 million in unpaid principal and approximately $0.2 million in accrued and unpaid interest and fees. The Company also recorded a $0.2 million charge in interest expense to write-off of the unamortized deferred financing fees associated with the October 3, 2012 credit facility as of the date of the termination. |
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Note 7 - Fair Value of Financial Instruments
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6 Months Ended | ||||||||||||
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Jun. 30, 2015
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Notes to Financial Statements | |||||||||||||
Fair Value Disclosures [Text Block] | Note 7: Fair Value of Financial Instruments These condensed consolidated financial statements include the following financial instruments: cash and cash equivalents, trade receivables, accounts payable, accrued expenses, capital leases, notes payable, and debt. At June 30, 2015 and December 31, 2014, the carrying amount of the Company’s cash and cash equivalents, trade receivables, accounts payable and accrued expenses approximated their fair values due to their short-term maturities. The carrying value of the Company’s borrowings and capital lease obligation approximates fair value based upon the market interest rates available to the Company for debt and capital lease obligations with similar risk and maturities. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, the Company uses a three-tier valuation hierarchy based upon observable and non-observable inputs: Level 1 – Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 – Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
Level 3 – Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. |
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Note 8 - Equity Incentive Plans
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6 Months Ended |
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Jun. 30, 2015
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Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8: Equity Incentive Plans Stock options: The Company measures and recognizes compensation expense for all stock-based awards at fair value. The financial statements for the three and six months ended June 30, 2015 and 2014 include compensation cost for the portion of outstanding awards that vested during those periods. The Company recognizes stock based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. For the three and six months ended June 30, 2015 total stock based compensation expense related to stock options was $0.9 million and $1.7 million, respectively. For the three and six months ended June 30, 2014 total stock based compensation expense related to stock options was $0.8 million and $1.8 million, respectively. Stock based compensation is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. As of June 30, 2015, the Company had 2,672,500 outstanding stock options at a weighted average exercise price of $12.88. Restricted stock: The Company awards restricted common shares to selected employees, and non-employee directors. Recipients are not required to provide any consideration other than continued service. Company share awards are subject to certain restrictions on transfer, and all or part of the shares awarded may be subject to forfeiture upon the occurrence of certain events, including employment termination. The restricted stock is valued at its grant date fair value and expensed over the requisite service period or the vesting term of the awards. For the three and six months ended June 30, 2015 total stock based compensation expense related to restricted stock was $0.5 million and $1.0 million, respectively. For the three and six months ended June 30, 2014 total stock based compensation expense related to restricted stock was $0.4 million and $0.8 million, respectively. Stock based compensation is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. As of June 30, 2015, the Company had 189,235 outstanding restricted common shares. |
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Note 9 - New Market Tax Credit
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6 Months Ended |
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Jun. 30, 2015
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Notes to Financial Statements | |
Investment Holdings [Text Block] | Note 9: New Market Tax Credit In July 2013 the Company entered into a financing transaction with Chase Community Equity or “Chase,”, and U.S. Bank Community, LLC or “U.S. Bank”, collectively the “investors” related to a $19.1 million acquisition, rehabilitation and construction of our new distribution and manufacturing center in Durant, Oklahoma. The investors made a capital contribution to, and Tile Shop Lending made a loan to Chase New Market Tax Credit, The Tile Shop of Oklahoma Investment Fund, LLC, and The Tile Shop Investment Fund LLC, or the “Investment Funds,” under a qualified New Markets Tax Credit, or “NMTC,” program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000, or the “Act,” and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities, or “CDEs.” CDEs are privately managed investment institutions that are certified to make qualified low-income community investments, or “QLICIs.” In July 2013 Tile Shop Lending loaned $13.5 million to the Investment Funds at an interest rate of 1.35% per year and with a maturity of September 30, 2043. The Investment Funds then contributed the loan to certain CDEs, which, in turn, loaned the funds on similar terms to Tile Shop of Oklahoma, LLC, an indirect, wholly-owned subsidiary. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by the investors, net of syndication fees) were used to partially fund the new manufacturing and distribution center project. 10 Til e Sho p Holdings , Inc . an d Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) In July 2013, the investors also contributed $5.6 million to the Investment Funds and, by virtue of such contribution, are entitled to substantially all of the tax benefits derived from the NMTCs, while we effectively received net loan proceeds equal to investor’s contributions to the Investment Fund. This transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase the investors’ interest. The Company believes that the investors will exercise the put option in September 2020 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require the Company to indemnify the investors for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. The Company has determined that the financing arrangement with the Investment Funds and CDEs contains a variable interest entity, or “VIE.” The ongoing activities of the Investment Funds – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Investment Funds. Management considered the contractual arrangements that obligate the Company to deliver tax benefits and provide various other guarantees to the structure; Chase’s and U.S. Bank Community LLC’s lack of a material interest in the underling economics of the project; and the fact that the Company is obligated to absorb losses of the Investment Fund. The Company concluded that they are the primary beneficiary of the VIE and consolidated the Investment Funds, as a VIE, in accordance with the accounting standards for consolidation. Chase’s and U.S. Bank Community LLC’s contributions of $4.4 million, net of syndication fees, are included in cash, restricted cash, and other long-term liabilities in the accompanying consolidated balance sheet. The benefit of this net $4.4 million contribution will be recognized as a decrease in depreciation expense as we amortize the contribution liability over the seven-year compliance period as it is being earned through the on-going compliance with the conditions of the NMTC program. Direct costs of $1.0 million incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans (40 years). Incremental costs to maintain the structure during the compliance period are recognized as incurred. |
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Note 10 - Commitments and Contingencies
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6 Months Ended |
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Jun. 30, 2015
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Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 10: Commitments and Contingencies The Company, two of its former executive officers, five of its outside directors, and certain companies affiliated with the directors, are defendants in a consolidated class action brought under the federal securities laws and now pending in the United States District Court for the District of Minnesota under the caption Beaver County Employees’ Retirement Fund, et al. v. Tile Shop Holdings, Inc., et al . Several related actions were filed in 2013, and then consolidated. The plaintiffs are three investors who seek to represent a class or classes consisting of (1) all purchasers of Tile Shop common stock between August 22, 2012 and January 28, 2014 (the “alleged class period”), seeking to pursue remedies under the Securities Exchange Act of 1934; and (2) all purchasers of Tile Shop common stock pursuant and/or traceable to the Company’s December 2012 and June 2013 registration statements, seeking to pursue remedies under the Securities Act of 1933. Eight firms who were underwriters in the December 2012 and June 2013 secondary public offerings are also named as defendants. In their consolidated amended complaint (the “complaint”) filed on May 23, 2014, the plaintiffs allege that certain defendants made false or misleading statements of material fact in press releases and SEC filings about the Company’s relationships with its vendors, its gross margins, and its supply chain and producer relationships, and that defendants failed to disclose certain related party transactions. The complaint asserts claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, and under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In addition to attorney’s fees and costs, the plaintiffs seek to recover damages on behalf of the members of the purported classes. The defendants are vigorously defending the matter. The defendants moved to dismiss the complaint in July 2014, and that motion was granted in part and denied in part by an Order of the court on March 4, 2015. The matter is now in the early stages of discovery.The Company also is a Defendant in a consolidated action brought derivatively on behalf of the Company by two shareholders of the Company. One action was first filed in the United States District Court for the District of Minnesota, and then voluntarily dismissed and re-filed in the Court of Chancery for the State of Delaware (“Delaware Chancery Court”). The second action was filed in Delaware Chancery Court. The two actions have since been consolidated by the Delaware Chancery Court under the caption In re Tile Shop Holdings, Inc. Stockholder Derivative Litigation. On July 31, 2015, the plaintiff-shareholders filed their Verified Consolidated Stockholder Derivative Complaint (“complaint”). The complaint names as defendants six members of the Company’s Board of Directors, and a former employee of the Company. The complaint tracks many of the same factual allegations as have been made in the above-described federal securities class action. It alleges that the defendant-directors breached their fiduciary duties by failing to adopt adequate internal controls for the Company, by approving false and misleading statements issued by the Company, by causing the Company to violate generally accepted accounting principles and SEC regulations, by engaging in or approving alleged insider trading, and by permitting the Company’s primary product to contain illegal amounts of lead. The complaint also alleges claims for insider trading and unjust enrichment. The complaint seeks damages, disgorgement, an award of attorneys’ fees and other expenses, and an order compelling changes to the Company’s corporate governance and internal procedures. Defendants have not yet responded to the complaint, but intend to defend the action. Given the uncertainty of litigation and the preliminary stage of these cases, the Company cannot reasonably estimate the possible loss or range of loss that may result from these actions. The Company maintains directors and officers liability insurance policies that may reduce the Company’s exposure, if any. In the event the Company incurs a loss, the Company will pursue recoveries to the maximum extent available under these policies. The Company is also, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, while the outcome of such claims and disputes cannot be predicted with certainty, the Company’s ultimate liability in connection with these matters is not expected to have a material adverse effect on the results of operations, financial position, or cash flows. |
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Note 11 - New Accounting Pronouncements
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6 Months Ended |
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Jun. 30, 2015
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Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Note 11: New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a final standard on revenue from contracts with customers. The new standard sets forth a single comprehensive model for recognizing and reporting revenue. The new standard is effective for the Company in its fiscal year 2018, and permits the use of either a retrospective or a cumulative effect transition method. The Company is currently assessing the impact of implementing the new guidance on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The guidance, is effective for the Company in its fiscal year 2016, and requires retrospective application. The Company anticipates reclassifying $2.2 million of unamortized debt issuance costs from other asset accounts to net against debt upon adopting this standard in the first quarter of 2016. |
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Note 2 - Inventories (Tables)
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Jun. 30, 2015
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Schedule of Inventory, Current [Table Text Block] |
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Note 4 - Earnings Per Share (Tables)
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Jun. 30, 2015
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
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Note 5 - Other Accrued Liabilities (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015
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Schedule of Accrued Liabilities [Table Text Block] |
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Note 6 - Long-term Debt (Tables)
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Jun. 30, 2015
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Schedule of Long-term Debt Instruments [Table Text Block] |
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Note 2 - Components of Inventory (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2015
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Dec. 31, 2014
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Finished goods | $ 53,380 | $ 58,323 |
Raw materials | 2,571 | 2,356 |
Finished goods in transit | 8,639 | 8,178 |
Total | $ 64,590 | $ 68,857 |
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- Definition
Inventory Finished Goods In Transit. No definition available.
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Note 3 - Income Taxes (Details Textual) (USD $)
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3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2015
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Jun. 30, 2014
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Jun. 30, 2015
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Jun. 30, 2014
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Liability for Uncertain Tax Positions, Noncurrent | $ 0 | $ 0 | $ 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 | ||
Effective Income Tax Rate Reconciliation, Percent | 41.50% | 40.00% | 42.20% | 40.00% |
Income Tax Expense (Benefit) | $ 3,187,000 | $ 2,553,000 | $ 5,949,000 | $ 5,025,000 |
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No authoritative reference available. No definition available.
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Note 4 - Basic and Diluted Net Income (Loss) Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2015
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Jun. 30, 2014
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Jun. 30, 2015
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Jun. 30, 2014
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Net income | $ 4,490 | $ 3,828 | $ 8,149 | $ 7,538 |
Basic (in shares) | 51,125,985 | 51,003,063 | 51,125,605 | 51,001,589 |
Effect of diluted securities attributable to stock based awards (in shares) | 262,617 | 320,707 | 87,350 | 360,378 |
Weighted average diluted shares outstanding (in shares) | 51,388,602 | 51,323,770 | 51,212,955 | 51,361,967 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.16 | $ 0.15 |
Dilutive (in dollars per share) | $ 0.09 | $ 0.07 | $ 0.16 | $ 0.15 |
Anti-dilutive securities excluded from EPS calculation (in shares) | 761,401 | 920,118 | 1,056,177 | 875,620 |
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Note 5 - Components of Accrued Liabilities (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2015
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Dec. 31, 2014
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Customer deposits | $ 6,261 | $ 5,038 |
Accrued wages and salaries | 4,040 | 3,209 |
Current portion of debt and capital lease obligation | 5,252 | 3,850 |
Sales return reserve | 3,575 | 3,292 |
Taxes/other | 3,032 | 2,600 |
Interest payable | 1 | 404 |
Total accrued liabilities | $ 22,161 | $ 18,393 |
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Note 6 - Long-term Debt (Details Textual) (USD $)
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3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||||
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Jun. 30, 2015
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Jun. 30, 2014
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Jun. 30, 2015
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Jun. 30, 2014
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Jun. 30, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Term Loan [Member]
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Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Term Loan [Member]
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Jun. 30, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Revolving Credit Facility [Member]
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Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Revolving Credit Facility [Member]
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Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Minimum [Member]
London Interbank Offered Rate (LIBOR) [Member]
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Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Minimum [Member]
Base Rate [Member]
|
Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Maximum [Member]
London Interbank Offered Rate (LIBOR) [Member]
|
Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Maximum [Member]
Base Rate [Member]
|
Jun. 30, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
London Interbank Offered Rate (LIBOR) [Member]
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Jun. 30, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
Base Rate [Member]
|
Jun. 02, 2015
Credit Agreement [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
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Jun. 02, 2015
Term Loan [Member]
Fifth Third Bank, Bank of America, and Huntington National Bank [Member]
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Jun. 30, 2015
Senior Secured Credit Facility [Member]
Bank of America [Member]
Debt Principal [Member]
|
Jun. 30, 2015
Senior Secured Credit Facility [Member]
Bank of America [Member]
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Debt Agreement Maximum Borrowing Capacity | $ 125,000,000 | |||||||||||||||||
Debt Instrument, Term | 5 years | |||||||||||||||||
Debt Instrument, Face Amount | 50,000,000 | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | |||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 0.50% | 2.00% | 1.00% | ||||||||||||||
Debt Instrument Basis Spread On Federal Funds Rate | 0.50% | |||||||||||||||||
Debt Instrument Basis Spread On Eurodollar Rate | 1.00% | |||||||||||||||||
Debt Instrument, Variable Rate | 1.94% | 4.00% | ||||||||||||||||
Long-term Line of Credit | 18,000,000 | |||||||||||||||||
Loans Payable to Bank | 50,000,000 | |||||||||||||||||
Debt Issuance Cost | 1 | |||||||||||||||||
Amount Drawn From Credit Agreement For Refinancing of Debt | 50,000,000 | 23,000,000 | ||||||||||||||||
Repayments of Long-term Debt | 72,800,000 | 73,000,000 | ||||||||||||||||
Write off of Deferred Debt Issuance Cost | 194,000 | 200,000 | ||||||||||||||||
Interest Expense | $ 795,000 | $ 735,000 | $ 1,598,000 | $ 1,445,000 | $ 200,000 |
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- Definition
The amount drawn from the credit agreement in order to refinance current debt. No definition available.
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- Definition
Maximum borrowing capacity under a debt agreement on the amount that could be borrowed with a combination of, but not limited to, a line of credit and term loan. No definition available.
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- Definition
The percentage points added to the Eurodollar rate to compute the variable rate on the debt instrument. No definition available.
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X | ||||||||||
- Definition
The percentage points added to the Federal Funds rate to compute the variable rate on the debt instrument. No definition available.
|
X | ||||||||||
- Definition
The variable rate for a debt instrument. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Note 6 - Quarterly Principal Payments (Details) (Credit Agreement [Member], Term Loan [Member], Fifth Third Bank, Bank of America, and Huntington National Bank [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2015
|
|
September 30, 2015 to June 30, 2017 [Member]
|
|
Quarterly Payment Period | $ 1,250 |
September 30, 2017 to June 30, 2018 [Member]
|
|
Quarterly Payment Period | 1,875 |
September 30, 2018 to March 31, 2020 [Member]
|
|
Quarterly Payment Period | $ 2,500 |
X | ||||||||||
- Definition
The amount of the quarterly payment applied towards a debt instrument. No definition available.
|
Note 8 - Equity Incentive Plans (Details Textual) (USD $)
In Millions, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2015
|
Jun. 30, 2014
|
Jun. 30, 2015
|
Jun. 30, 2014
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,672,500 | 2,672,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 12.88 | $ 12.88 | ||
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member]
|
||||
Allocated Share-based Compensation Expense | $ 0.9 | $ 0.8 | $ 1.7 | $ 1.8 |
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member]
|
||||
Allocated Share-based Compensation Expense | $ 0.5 | $ 0.4 | $ 1.0 | $ 0.8 |
Restricted Stock [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 189,235 | 189,235 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Note 9 - New Market Tax Credit (Details Textual) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | |
---|---|---|
Jul. 31, 2013
|
Jul. 13, 2013
|
|
Chase and US Bank [Member]
|
||
Accounts, Notes, Loans and Financing Receivable, Net, Current | $ 19.1 | |
Tax Credits Maximum Percent of Qualifying Investments | 39.00% | |
Proceeds from Contributed Capital | 5.6 | |
Contributed Capital Net Proceeds | 4.4 | |
Tile Shop Lending [Member]
|
||
Proceeds from Lines of Credit | 13.5 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.35% | |
Deferred Finance Costs, Gross | $ 1.0 | |
Investors And Tiles Shop Lending [Member] | Financing Agreement With Investments Funds And CDEs [Member]
|
||
Debt Instrument, Term | 40 years |
X | ||||||||||
- Definition
The proceeds associated with the amount received after fees, such as syndication fees, by a corporation from a shareholder during the period. No definition available.
|
X | ||||||||||
- Definition
Maximum percentage of investments that qualify to receive tax credits. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Note 11 - New Accounting Pronouncements (Details Textual) (Other Current Liabilities [Member], Scenario, Forecast [Member], Accounting Standards Update 2015-03 [Member], USD $)
In Millions, unless otherwise specified |
1 Months Ended |
---|---|
Jan. 31, 2016
|
|
Other Current Liabilities [Member] | Scenario, Forecast [Member] | Accounting Standards Update 2015-03 [Member]
|
|
Prior Period Reclassification Adjustment | $ 2.2 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|