Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating activities      
Net income (loss) $ 1,341,362 $ (7,093,301) $ (11,520,336)
Income from discontinued operations, net of tax 0 99,334 1,251,058
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation expense 5,294,695 4,235,203 4,356,911
Amortization expense 2,443,117 2,459,787 2,277,480
Non-cash interest expense on debt issuance costs 60,529 72,290 120,521
Goodwill impairment 0 0 17,158,249
Deferred income taxes (1,037,183) (1,407,462) 150,462
Gain on sale of available for sale securities (310,043) 0 0
Earn-out adjustments 688,523 0 (4,897,448)
Provision for (reduction of) losses on accounts receivable 201,641 (45,151) 60,855
Provision for losses on inventories 1,196,428 983,505 2,003,885
Loss (gain) on sale of property, plant and equipment 25,730 2,294,917 (18,277)
Amortization of deferred gain on sale-leaseback (334,273) (83,569) 0
Straight line lease cost on sale-leaseback 397,071 101,633 0
Casualty insurance gain 0 0 (923,470)
Change in cash value of life insurance 0 1,502 (82,504)
Change in fair value of interest rate swap (96,696) 12,997 41,581
Issuance of treasury stock for director fees 287,500 330,000 118,762
Employee stock option and grant compensation 638,416 459,473 521,695
Dividend on stock grant forfeiture 0 360 0
Changes in operating assets and liabilities:      
Accounts receivable (10,877,176) (37,676) 11,380,941
Inventories (7,088,100) 2,032,621 4,173,337
Other assets and liabilities 11,229,799 (11,767,808) (653,420)
Accounts payable 7,572,308 4,418,578 (9,122,368)
Accrued expenses (9,424,395) 9,582,445 (2,059,303)
Accrued income taxes 26,197 (1,294,557) 3,038,362
Net cash provided by continuing operating activities 2,235,450 5,355,121 17,376,973
Net cash used in discontinued operating activities 0 (3,843,137) (849,974)
Net cash provided by operating activities 2,235,450 1,511,984 16,526,999
Investing activities      
Purchases of property, plant and equipment (5,278,608) (3,044,411) (10,905,230)
Proceeds from sale of property, plant and equipment 72,789 22,215,362 21,500
Purchases of available for sale securities (4,382,865) 0 0
Proceeds from available for sale securities 4,141,564 0 0
Acquisition of the stainless pipe and tube assets of Marcegaglia USA, Inc. (11,953,513) (3,000,000) 0
Proceeds from casualty insurance 0 0 1,219,048
Proceeds from life insurance policies 0 1,502,283 720,518
Net cash (used in) provided by investing activities (17,400,633) 17,673,234 (8,944,164)
Financing activities      
Net borrowings from line of credit 17,109,351 6,928,640 990,929
Payments on long-term debt 0 (26,068,228) (4,700,570)
Payments on capital lease obligation (124,999) (65,966) (13,355)
Payments on earn-out liability to MUSA sellers (518,456) 0 0
Payments of debt issuance costs (200,367) (54,326) (65,367)
Proceeds from exercised stock options 0 0 8,302
Dividends paid (1,148,513) 0 (2,617,513)
Purchase of common stock 0 (253,889) (820,460)
Net cash provided by (used in) financing activities 15,117,016 (19,513,769) (7,218,034)
(Decrease) increase in cash and cash equivalents (48,167) (328,551) 364,801
Cash and cash equivalents at beginning of year 62,873 391,424 26,623
Cash and cash equivalents at end of year $ 14,706 $ 62,873 $ 391,424