Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Operating activities    
Net income $ 3,835,163 $ 735,937
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation expense 1,417,675 1,086,445
Amortization expense 576,723 595,280
Amortization of debt issuance costs 22,746 13,610
Deferred income taxes 158,720 (128,736)
Earn-out adjustment 154,060 0
Reduction of losses on accounts receivable (14,105) (61,000)
Provision for losses on inventories 384,641 236,855
Gain on disposal of property, plant and equipment (14,462) 0
Amortization of deferred gain on sale-leaseback (83,569) (83,569)
Straight line lease cost on sale-leaseback 93,043 101,633
Change in fair value of interest rate swaps (73,204) (41,430)
Change in fair value of equity securities 88,296 0
Employee stock option and grant compensation 192,201 119,843
Changes in operating assets and liabilities:    
Accounts receivable (6,069,663) (7,801,127)
Inventories (11,108,262) (2,395,295)
Other assets and liabilities, net (231,811) 404,156
Accounts payable 5,160,092 (220,733)
Accrued expenses (996,420) 113,630
Accrued income taxes 900,279 428,014
Net cash used in operating activities (5,607,857) (6,896,487)
Investing activities    
Purchases of property, plant and equipment (1,855,307) (1,164,628)
Purchases of equity securities (191,063) 0
Acquisition of the stainless pipe and tube assets of Marcegaglia USA, Inc. 0 (12,830,712)
Net cash used in investing activities (2,046,370) (13,995,340)
Financing activities    
Net borrowings from line of credit 8,360,577 21,168,740
Payments on capital lease obligation (21,366) (21,246)
Payments on earn-out liability to MUSA sellers (680,941) 0
Net cash provided by financing activities 7,658,270 21,147,494
Increase in cash and cash equivalents 4,043 255,667
Cash and cash equivalents at beginning of period 14,706 62,873
Cash and cash equivalents at end of period 18,749 318,540
Supplemental disclosure    
Interest 289,848 113,303
Income taxes $ 0 $ 23,665