Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 08, 2017 | Jun. 30, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | CORE MOLDING TECHNOLOGIES INC. | ||
Entity Central Index Key | 1,026,655 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 66,562,587 | ||
Entity Common Stock, Shares Outstanding | 7,793,354 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||
Products | $ 146,624,000 | $ 189,103,000 | $ 169,744,000 |
Tooling | 28,258,000 | 9,965,000 | 5,460,000 |
Total net sales | 174,882,000 | 199,068,000 | 175,204,000 |
Total cost of sales | 146,958,000 | 162,816,000 | 145,018,000 |
Gross margin | 27,924,000 | 36,252,000 | 30,186,000 |
Total selling, general and administrative expense | 16,379,000 | 17,754,000 | 15,539,000 |
Operating income | 11,545,000 | 18,498,000 | 14,647,000 |
Interest expense | 298,000 | 330,000 | 122,000 |
Income before income taxes | 11,247,000 | 18,168,000 | 14,525,000 |
Current | 3,410,000 | 4,889,000 | 2,370,000 |
Deferred | 426,000 | 1,229,000 | 2,521,000 |
Total income taxes | 3,836,000 | 6,118,000 | 4,891,000 |
Net income | $ 7,411,000 | $ 12,050,000 | $ 9,634,000 |
Net income per common share: | |||
Basic (USD per share) | $ 0.97 | $ 1.59 | $ 1.28 |
Diluted (USD per share) | $ 0.97 | $ 1.58 | $ 1.28 |
Weighted average shares outstanding: | |||
Basic (in shares) | 7,621,000 | 7,583,000 | 7,508,000 |
Diluted (in shares) | 7,661,000 | 7,623,000 | 7,553,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 7,411,000 | $ 12,050,000 | $ 9,634,000 |
Other comprehensive income: | |||
Unrealized Loss on Foreign Currency Derivatives, before Tax | (303,000) | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 103,000 | 0 | 0 |
Interest rate swaps: | |||
Adjustment for amortization of losses included in net income | 5,000 | 21,000 | 21,000 |
Income tax expense | 2,000 | 8,000 | 7,000 |
Post retirement benefit plan adjustments: | |||
Net actuarial (loss) gain | 474,000 | 217,000 | (2,679,000) |
Prior service costs | (496,000) | (496,000) | (496,000) |
Income tax benefit (expense) | (12,000) | 81,000 | 1,119,000 |
Comprehensive income | $ 7,180,000 | $ 11,865,000 | $ 7,592,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 28,285,000 | $ 8,943,000 |
Accounts receivable (less allowance for doubtful accounts: December 31, 2016 - $0; December 31, 2015 - $40,000) | 19,551,000 | 36,886,000 |
Inventories: | ||
Finished goods | 1,876,000 | 1,646,000 |
Work in process | 1,401,000 | 1,516,000 |
Raw materials and components | 7,635,000 | 10,535,000 |
Total inventories, net | 10,912,000 | 13,697,000 |
Deferred tax asset-current portion | 1,381,000 | 1,598,000 |
Foreign sales tax receivable | 228,000 | 280,000 |
Income taxes receivable | 0 | 670,000 |
Prepaid expenses and other current assets | 912,000 | 610,000 |
Total current assets | 61,269,000 | 62,684,000 |
Property, plant and equipment, net | 70,601,000 | 74,103,000 |
Goodwill | 2,403,000 | 2,403,000 |
Intangible Assets, Net (Excluding Goodwill) | 563,000 | 613,000 |
Total Assets | 134,836,000 | 139,803,000 |
Current liabilities: | ||
Current portion of long-term debt | 3,000,000 | 3,714,000 |
Accounts payable | 8,534,000 | 13,481,000 |
Tooling in progress | 1,084,000 | 2,271,000 |
Current portion of post retirement benefits liability | 1,018,000 | 1,088,000 |
Accrued liabilities: | ||
Compensation and related benefits | 5,004,000 | 8,474,000 |
Taxes | 1,038,000 | 203,000 |
Other | 1,620,000 | 1,919,000 |
Total current liabilities | 21,298,000 | 31,150,000 |
Long-term debt | 6,750,000 | 9,750,000 |
Deferred tax liability | 2,373,000 | 2,252,000 |
Post retirement benefits liability | 7,649,000 | 7,918,000 |
Total Liabilities | 38,070,000 | 51,070,000 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Preferred stock — $0.01 par value, authorized shares - 10,000,000; no shares outstanding at December 31, 2016 and December 31, 2015 | 0 | 0 |
Common stock — $0.01 par value, authorized shares - 20,000,000; outstanding shares: 7,635,093 at December 31, 2016 and 7,596,500 at December 31, 2015 | 76,000 | 76,000 |
Paid-in capital | 30,134,000 | 29,147,000 |
Accumulated other comprehensive income, net of income taxes | 2,414,000 | 2,645,000 |
Treasury stock — at cost, 3,753,595 shares at December 31, 2016 and 3,743,005 shares at December 31, 2015 | (27,781,000) | (27,647,000) |
Retained earnings | 91,923,000 | 84,512,000 |
Total Stockholders’ Equity | 96,766,000 | 88,733,000 |
Total Liabilities and Stockholders’ Equity | $ 134,836,000 | $ 139,803,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 0 | $ 40,000 |
Stockholders' Equity: | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000 | 20,000,000 |
Common stock, shares outstanding | 7,635,093 | 7,596,500 |
Treasury Stock, Shares | 3,753,595 | 3,743,005 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock Outstanding | Paid-In Capital | Accumulated Other Comprehensive Income | Treasury Stock | Retained Earnings |
Balance at Dec. 31, 2013 | $ 67,448,000 | $ 73,000 | $ 26,757,000 | $ 4,872,000 | $ (27,082,000) | $ 62,828,000 |
Balance (in shares) at Dec. 31, 2013 | 7,318,773 | |||||
Change in Stockholders' Equity: | ||||||
Net income | 9,634,000 | 9,634,000 | ||||
Change in post retirement benefits, net of tax | (2,056,000) | (2,056,000) | ||||
Change in interest rate swaps, net of tax | 14,000 | 14,000 | ||||
Common stock issued (in shares) | 186,060 | |||||
Common stock issued | 328,000 | $ 2,000 | 326,000 | |||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (311,000) | |||||
Excess tax benefit — equity transactions | (311,000) | |||||
Purchase of treasury stock (in shares) | (21,797) | |||||
Purchase of treasury stock | (278,000) | (278,000) | ||||
Restricted stock issued (in shares) | 75,976 | |||||
Restricted stock issued | 1,000 | $ 1,000 | ||||
Share-based compensation | 744,000 | 744,000 | ||||
Balance (in shares) at Dec. 31, 2014 | 7,559,012 | |||||
Balance at Dec. 31, 2014 | 76,146,000 | $ 76,000 | 28,138,000 | 2,830,000 | (27,360,000) | 72,462,000 |
Change in Stockholders' Equity: | ||||||
Net income | 12,050,000 | 12,050,000 | ||||
Change in post retirement benefits, net of tax | (198,000) | (198,000) | ||||
Change in interest rate swaps, net of tax | 13,000 | 13,000 | ||||
Common stock issued (in shares) | 3,000 | |||||
Common stock issued | 19,000 | 19,000 | ||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (205,000) | |||||
Excess tax benefit — equity transactions | (205,000) | |||||
Purchase of treasury stock (in shares) | (12,141) | |||||
Purchase of treasury stock | (287,000) | (287,000) | ||||
Restricted stock issued (in shares) | 46,629 | |||||
Restricted stock issued | 0 | |||||
Share-based compensation | 785,000 | 785,000 | ||||
Balance (in shares) at Dec. 31, 2015 | 7,596,500 | |||||
Balance at Dec. 31, 2015 | 88,733,000 | $ 76,000 | 29,147,000 | 2,645,000 | (27,647,000) | 84,512,000 |
Change in Stockholders' Equity: | ||||||
Net income | 7,411,000 | |||||
Change in post retirement benefits, net of tax | (34,000) | (34,000) | ||||
Change in Unrealized Gain (Loss) on Foreign Currency Fair Value Hedging Instruments | (200,000) | |||||
Change in interest rate swaps, net of tax | 3,000 | 3,000 | ||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (16,000) | |||||
Excess tax benefit — equity transactions | (16,000) | |||||
Purchase of treasury stock (in shares) | (10,590) | |||||
Purchase of treasury stock | (134,000) | (134,000) | ||||
Restricted stock issued (in shares) | 49,183 | |||||
Restricted stock issued | 0 | |||||
Share-based compensation | 1,003,000 | 1,003,000 | ||||
Balance (in shares) at Dec. 31, 2016 | 7,635,093 | |||||
Balance at Dec. 31, 2016 | $ 96,766,000 | $ 76,000 | $ 30,134,000 | $ 2,414,000 | $ (27,781,000) | $ 91,923,000 |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax effect of change in post retirement benefits | $ 12,000 | $ 81,000 | $ 1,119,000 |
Tax effect of change in interest rate swaps | 2,000 | $ 8,000 | $ 7,000 |
Tax effect of change in Foreign Currency Translation Adjustment | $ 103,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 7,411,000 | $ 12,050,000 | $ 9,634,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,283,000 | 6,041,000 | 5,023,000 |
Deferred income taxes | 426,000 | 1,229,000 | 2,521,000 |
Mark-to-market of interest rate swap | 3,000 | (14,000) | (45,000) |
Share-based compensation | 1,003,000 | 785,000 | 744,000 |
Foreign Currency Transaction Gain (Loss), before Tax | 110,000 | 54,000 | (108,000) |
Change in operating assets and liabilities, net of effects of acquisition: | |||
Accounts receivable | 17,335,000 | (911,000) | (12,292,000) |
Inventories | 2,785,000 | (1,387,000) | (808,000) |
Income taxes receivable | 670,000 | 1,616,000 | (1,959,000) |
Prepaid and other assets | (266,000) | 1,395,000 | (78,000) |
Accounts payable | (4,689,000) | 2,095,000 | (275,000) |
Accrued and other liabilities | (4,422,000) | (3,786,000) | 9,031,000 |
Post retirement benefits liability | (360,000) | (444,000) | (777,000) |
Net cash provided by operating activities | 26,069,000 | 18,615,000 | 10,827,000 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (2,863,000) | (5,683,000) | (10,679,000) |
Business Combination, Purchase Price Allocated | 0 | (14,512,000) | 0 |
Net cash used in investing activities | (2,863,000) | (20,195,000) | (10,679,000) |
Cash flows from financing activities: | |||
Gross borrowings on revolving line of credit | 0 | (10,102,000) | (67,993,000) |
Gross borrowings on revolving line of credit | 0 | 7,334,000 | 70,761,000 |
Borrowing of Secured Debt Term Loan | 0 | 15,500,000 | 0 |
Repayments of Secured Debt Term Loan | (3,000,000) | (2,750,000) | 0 |
Payment of principal on Mexican loan | 0 | 0 | (1,600,000) |
Payment of principal on capex loan | (714,000) | (1,714,000) | (1,715,000) |
Excess Tax Benefit from Share-based Compensation, Financing Activities | (16,000) | 211,000 | 395,000 |
Payments related to the purchase of treasury stock | (134,000) | (287,000) | (278,000) |
Proceeds from issuance of common stock | 0 | 19,000 | 328,000 |
Net cash (used in) provided by financing activities | (3,864,000) | 8,211,000 | (102,000) |
Net change in cash and cash equivalents | 19,342,000 | 6,631,000 | 46,000 |
Cash and cash equivalents at beginning of year | 8,943,000 | 2,312,000 | 2,266,000 |
Cash and cash equivalents at end of year | 28,285,000 | 8,943,000 | 2,312,000 |
Cash paid for: | |||
Interest (net of amounts capitalized) | 289,000 | 279,000 | 110,000 |
Income taxes | 1,884,000 | 4,218,000 | 3,567,000 |
Non Cash: | |||
Fixed asset purchases in accounts payable | 316,000 | 464,000 | $ 557,000 |
Commitments For Capital Expenditures In Progress | $ 616,000 | $ 1,102,000 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Core Molding Technologies and its subsidiaries operate in the plastics market in a family of products known as “reinforced plastics.” Reinforced plastics are combinations of resins and reinforcing fibers (typically glass or carbon) that are molded to shape. Core Molding Technologies is a manufacturer of sheet molding compound ("SMC") and molder of fiberglass reinforced plastics. The Company specializes in large-format moldings and offers a wide range of fiberglass processes, including compression molding of SMC, glass mat thermoplastics ("GMT"), bulk molding compounds ("BMC") and direct long-fiber thermoplastics ("D-LFT"); spray-up, hand-lay-up, and resin transfer molding ("RTM"). Additionally, the Company offers reaction injection molding ("RIM"), utilizing dicyclopentadiene technology. Core Molding Technologies operates five production facilities in Columbus, Ohio; Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Matamoros, Mexico. The Company operates in one business segment as a manufacturer of SMC and molder of fiberglass reinforced plastics. The Company produces and sells SMC and molded products for varied markets, including medium and heavy-duty trucks, automobiles, marine, construction and other commercial markets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation - The accompanying consolidated financial statements include the accounts of all subsidiaries after elimination of all intercompany accounts, transactions, and profits. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. Significant estimates relate to allowances for doubtful accounts, inventory reserves, self-insurance reserves related to healthcare and workers compensation, deferred taxes, post retirement benefits, goodwill and long-lived assets. Actual results could differ from those estimates. Revenue Recognition - Revenue from product sales is recognized at the time products are shipped and title transfers. Allowances for returned products and other credits are estimated and recorded as revenue is recognized. Tooling revenue is recognized when the customer approves the tool and accepts ownership. Progress billings and expenses are shown net as an asset or liability on the Company’s Consolidated Balance Sheet. Tooling in progress can fluctuate significantly from period to period and is dependent upon the stage of tooling projects and the related billing and expense payment timetable for individual projects and therefore does not necessarily reflect projected income or loss from tooling projects. At December 31, 2016 , the Company had a net liability related to tooling in progress of $ 1,084,000 , which represents approximately $11,052,000 of progress tooling billings and $ 9,968,000 of progress tooling expenses. At December 31, 2015 , the Company had a net liability related to tooling in progress of $ 2,271,000 which represents approximately $21,967,000 of progress tooling billings and $19,696,000 of progress tooling expenses. Cash and Cash Equivalents - The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in one bank. The Company had cash on hand of $28,285,000 at December 31, 2016 and $8,943,000 at December 31, 2015 . Accounts Receivable Allowances - Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at December 31, 2016 and had recorded allowance for doubtful accounts of$ 40,000 at December 31, 2015 . Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $309,000 at December 31, 2016 and $523,000 at December 31, 2015 . There have been no material changes in the methodology of these calculations. Inventories - Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or market. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $770,000 at December 31, 2016 and $863,000 at December 31, 2015 . Property, Plant, and Equipment - Property, plant, and equipment are recorded at cost. Depreciation is provided on a straight-line method over the estimated useful lives of the assets. The carrying amount of long‑lived assets is evaluated annually to determine if adjustment to the depreciation period or to the unamortized balance is warranted. Ranges of estimated useful lives for computing depreciation are as follows: Land improvements 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 15 years Tools, dies and patterns 3 - 5 years Depreciation expense was $6,217,000 , $5,955,000 and $5,009,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company capitalized interest costs of approximately $0 and $2,000 for the years ended December 31, 2016 and 2015 , respectively. Long-Lived Assets - Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The Company acquired substantially all of the assets of CPI on March 20, 2015, which resulted in approximately $650,000 of definite-lived intangibles and $12,474,000 of property, plant and equipment, all of which were recorded at fair value. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates, whether impairment exists for long-lived assets on the basis of undiscounted expected future cash flows from operations before interest. There was no impairment of the Company's long-lived assets for the years ended December 31, 2016 , 2015 and 2014 . Goodwill - The Company has recorded $ 2,403,000 of goodwill as a result of two acquisitions. In 2001, the Company acquired certain assets of Airshield Corporation, and as a result, recorded goodwill in the amount of $1,097,000 . The Company also acquired substantially all of the assets of CPI on March 20, 2015, which resulted in approximately $1,306,000 of goodwill. The Company evaluates goodwill annually on December 31 st to determine whether impairment exists, or at interim periods if an indicator of possible impairment exists. The Company evaluates goodwill for impairment utilizing the one-step qualitative assessment. We consider relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, entity specific events and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform the first step of the impairment test. If the Company's carrying amount is determined to be more likely than not impaired based on the one-step qualitative approach, a quantitative valuation to estimate the fair value of the Company is performed. Fair value measurements are based on a projected discounted cash flow valuation model, in accordance with ASC 350, “Intangibles-Goodwill and Other.” There was no impairment of the Company's goodwill for the years ended December 31, 2016 , 2015 and 2014 . Income Taxes - The Company records deferred income taxes for differences between the financial reporting basis and income tax basis of assets and liabilities. A detailed breakout is located in Note 11. Self-Insurance - The Company is self-insured with respect to its Columbus and Batavia, Ohio, Gaffney, South Carolina and Brownsville, Texas medical, dental and vision claims and Columbus and Batavia, Ohio workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at December 31, 2016 and December 31, 2015 of $ 1,139,000 and $ 1,074,000 , respectively. Post Retirement Benefits - Management records an accrual for post retirement costs associated with the health care plan sponsored by the Company for certain employees. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on the Company's operations. The effect of a change in healthcare costs is described in Note 12 of the Notes to Consolidated Financial Statements. Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarially computed estimates of $ 8,667,000 at December 31, 2016 and $ 9,006,000 at December 31, 2015 . Fair Value of Financial Instruments - The Company's financial instruments consist of long-term debt, interest rate swaps, foreign currency hedges, accounts receivable, and accounts payable. The carrying amount of these financial instruments approximated their fair value. Further detail is located in Note 14. Concentration Risks - The Company has concentration risk related to significant amounts of sales and accounts receivable with certain customers. Sales to four major customers comprised 78% , 82% and 87% of total sales in 2016 , 2015 and 2014 , respectively (see Note 4). Concentrations of accounts receivable balances with four customers accounted for 75% and 88% of accounts receivable at December 31, 2016 and 2015 , respectively. The Company performs ongoing credit evaluations of its customers' financial condition. The Company maintains reserves for potential bad debt losses, and such bad debt losses have been historically within the Company's expectations. Sales to certain customers' manufacturing and service locations in Mexico and Canada totaled 32% , 35% and 30% of total sales for 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , the Company employed a total of 1,247 employees, which consisted of 568 employees in its United States operations and 679 employees in its Mexican operations. Of these 1,247 employees, 246 are covered by a collective bargaining agreement with the International Association of Machinists and Aerospace Workers (“IAM”), which extends to August 10, 2019, and 583 are covered by a collective bargaining agreement with Sindicato de Jorneleros y Obreros, which extends to January 1, 2018. Earnings Per Common Share - Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed similarly but include the effect of the assumed exercise of dilutive stock options and vesting of restricted stock under the treasury stock method. A detailed computation of earnings per share is located in Note 3. Research and Development - Research and development activities focus on developing new material formulations, new products, new production capabilities and processes, and improving existing products and manufacturing processes. The Company does not maintain a separate research and development organization or facility, but uses its production equipment, as necessary, to support these efforts and cooperates with its customers and its suppliers in research and development efforts. Likewise, manpower to direct and advance research and development is integrated with the existing manufacturing, engineering, production, and quality organizations. Research and development costs, which are expensed as incurred, totaled approximately $ 965,000 , $719,000 and $475,000 in 2016 , 2015 and 2014 . Foreign Currency Adjustments - In conjunction with the Company's acquisition of certain assets of Airshield Corporation, the Company established operations in Mexico. The functional currency for the Mexican operations is the United States dollar. All foreign currency asset and liability amounts are remeasured into United States dollars at end-of-period exchange rates. Income statement accounts are translated at the weighted monthly average rates. Gains and losses resulting from translation of foreign currency financial statements into United States dollars and gains and losses resulting from foreign currency transactions are included in current results of operations. Net foreign currency translation and transaction activity is included in selling, general and administrative expense. This activity resulted in a gain of $89,000 and $ 54,000 in 2016 and 2015 , respectively, and a loss of $ 108,000 in 2014 . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASC Topic 606 is based on the principle that revenue is recognized 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. ASC Topic 606 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 obtain or fulfill a contract. The effective date for ASC Topic 606, as updated by ASU No. 2015-14 in August 2015, has been delayed until the first quarter of fiscal year 2018. ASU 2014-09 will affect the timing of certain revenue related transactions primarily resulting from the earlier recognition of the Company's tooling sales and costs. Upon adoption of ASU 2014-09 tooling sales and costs will be recorded over time on a percentage of completion methodology instead of completed contract methodology. We have not yet determined whether we will adopt the provisions of ASU 2014-09 on a retrospective basis or through a cumulative adjustment to equity. We continue to assess the overall impact the adoption of ASU 2014-09 will have on our consolidated financial statements, and anticipate testing our new controls and processes designed to comply with ASU 2014-09 throughout 2017 to permit adoption by January 1, 2018. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update requires all deferred tax assets and liabilities, and any related valuation allowance, to be classified as noncurrent on the balance sheet. The ASU simplifies the current standard, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company will adopt this standard's update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update requires organizations to recognize lease assets and lease liabilities on the balance sheet and also disclose key information about leasing arrangements. This ASU is effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual period. The Company will adopt this standard's update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU 2016-09") as part of the FASB simplification initiative. The new standard provides for changes to accounting for stock compensation including 1) excess tax benefits and tax deficiencies related to share based payment awards will be recognized as income tax expense in the reporting period in which they occur; 2) excess tax benefits will be classified as an operating activity in the statement of cash flow; 3) the option to elect to estimate forfeitures or account for them when they occur; and 4) increases the tax withholding requirement threshold to qualify for equity classification. The ASU is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and early adoption is permitted. The Company will adopt this standard update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). The new standard provides clarification on the classification of the following eight specific cash flow issues: 1) debt prepayments or debt extinguishment costs, 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of borrowing, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions and 8) separately identifiable cash flows and application of the predominance principle. The ASU is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 and early adoption is permitted. The Company will adopt this standard update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard eliminates step 2, which required companies to determine the implied fair value of the reporting unit's goodwill, of the goodwill impairment test. Under this new guidance, companies will perform their annual goodwill impairment test by comparing the reporting unit's carrying value, including goodwill, to the fair value. An impairment charge would be recorded if the carrying value exceeds the reporting unit's fair value. The ASU is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2020 and early adoption is permitted. The Company will adopt this standard update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share Net income per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock options and restricted stock under the treasury stock method. The computation of basic and diluted net income per common share is as follows: December 31, 2016 2015 2014 Net income $ 7,411,000 $ 12,050,000 $ 9,634,000 Weighted average common shares outstanding — basic 7,621,000 7,583,000 7,508,000 Effect of dilutive securities 40,000 40,000 45,000 Weighted average common and potentially issuable common shares outstanding — diluted 7,661,000 7,623,000 7,553,000 Basic net income per common share $ 0.97 $ 1.59 $ 1.28 Diluted net income per common share $ 0.97 $ 1.58 $ 1.28 At December 31, 2016 and 2015 there were no outstanding stock options. At December 31, 2014 all unexercised stock options were included in diluted earnings per share. |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2016 | |
Revenue, Net [Abstract] | |
Major Customers | Major Customers The Company had four major customers during 2016 , Volvo, Navistar, PACCAR and Yamaha. Major customers are defined as customers whose current year sales individually consist of more than ten percent of total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to Navistar, Volvo, PACCAR or Yamaha would have a material adverse effect on the business of the Company. The following table presents sales revenue for the above-mentioned customers for the years ended December 31: 2016 2015 2014 Volvo product sales $ 29,520,000 $ 53,525,000 $ 46,340,000 Volvo tooling sales 20,450,000 1,600,000 2,519,000 Total Volvo sales 49,970,000 55,125,000 48,859,000 Navistar product sales 39,756,000 50,169,000 51,254,000 Navistar tooling sales 1,994,000 6,246,000 76,000 Total Navistar sales 41,750,000 56,415,000 51,330,000 PACCAR product sales 24,235,000 33,452,000 35,602,000 PACCAR tooling sales 3,481,000 978,000 526,000 Total PACCAR sales 27,716,000 34,430,000 36,128,000 Yamaha product sales 16,205,000 16,766,000 16,911,000 Yamaha tooling sales — — — Total Yamaha sales 16,205,000 16,766,000 16,911,000 Other product sales 36,908,000 35,191,000 19,637,000 Other tooling sales 2,333,000 1,141,000 2,339,000 Total other sales 39,241,000 36,332,000 21,976,000 Total product sales 146,624,000 189,103,000 169,744,000 Total tooling sales 28,258,000 9,965,000 5,460,000 Total sales $ 174,882,000 $ 199,068,000 $ 175,204,000 |
Foreign Operations
Foreign Operations | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Foreign Operations | Foreign Operations In conjunction with the Company's acquisition of certain assets of Airshield Corporation on October 16, 2001, the Company established manufacturing operations in Mexico (under the Maquiladora program). The Mexican operation is a captive manufacturing facility of the Company and the functional currency is United States dollars. Essentially all sales of the Mexican operations are made in United States dollars, which totaled $49,708,000 , $69,235,000 and $61,313,000 in 2016 , 2015 and 2014 , respectively. Expenses are incurred in the United States dollar and the Mexican peso. Expenses incurred in pesos include labor, utilities, supplies and materials, and amounted to approximately 22% , 19% and 22% of sales produced at the Matamoros operations in 2016 , 2015 and 2014 , respectively. The Company's manufacturing operation in Mexico is subject to various political, economic, and other risks and uncertainties including safety and security concerns inherent to Mexico. Among other risks, the Company's Mexican operations are subject to domestic and international customs and tariffs, changing taxation policies, and governmental regulations. All of the Company's product is sold to U.S. based customers in U.S. dollars. The following table provides information related to sales by country, based on the ship to location of customers' production facilities, for the years ended December 31: 2016 2015 2014 United States $ 119,018,000 $ 129,651,000 $ 123,317,000 Mexico 51,389,000 63,586,000 47,772,000 Canada 4,475,000 5,831,000 4,115,000 Total $ 174,882,000 $ 199,068,000 $ 175,204,000 The following table provides information related to the location of property, plant and equipment, net, as of December 31: 2016 2015 United States $ 42,547,000 $ 44,191,000 Mexico 28,054,000 29,912,000 Total $ 70,601,000 $ 74,103,000 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | Property, Plant, and Equipment Property, plant, and equipment consisted of the following at December 31: 2016 2015 Land and land improvements $ 5,958,000 $ 5,958,000 Buildings 42,593,000 41,417,000 Machinery and equipment 89,692,000 87,482,000 Tools, dies, and patterns 808,000 808,000 Additions in progress 1,607,000 2,331,000 Total 140,658,000 137,996,000 Less accumulated depreciation (70,057,000 ) (63,893,000 ) Property, plant, and equipment - net $ 70,601,000 $ 74,103,000 Additions in progress at December 31, 2016 and 2015 relate to building improvements and equipment purchases that were not yet completed at year end. At December 31, 2016 , commitments for capital expenditures in progress were $ 616,000 and included $316,000 recorded on the balance sheet in accounts payable. At December 31, 2015 , commitments for capital expenditures in progress were $1,102,000 , and included $464,000 recorded on the balance sheet in accounts payable. The Company capitalized interest of $0 and $2,000 for the years ended December 31, 2016 and 2015 , respectively. |
Business Combination (Notes)
Business Combination (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | On March 20, 2015, the Company acquired substantially all of the assets of CPI Binani, Inc., a wholly owned subsidiary of Binani Industries Limited, located in Winona, Minnesota for a cash purchase price of $15,000,000 , which expanded the Company's process capabilities to include D-LFT and diversified the customer base. The purchase price was subject to working capital adjustments resulting in a reduction in the purchase price of $488,000 . Cash paid at closing was financed through borrowing under the Company's existing credit facility, as amended and further described in Note 9 below. Consideration was allocated to assets acquired and liabilities assumed based on their fair values as of the acquisition date as follows: Accounts Receivable $ 1,615,000 Inventory 675,000 Other Current Assets 171,000 Property and Equipment 12,474,000 Intangibles 650,000 Goodwill 1,306,000 Accounts Payable (2,277,000 ) Other Current Liabilities (102,000 ) $ 14,512,000 The purchase price included consideration for strategic benefits, including an assembled workforce, operational infrastructure and synergistic revenue opportunities, which resulted in the recognition of goodwill. The goodwill is deductible for income tax purposes. The acquisition was not deemed significant to the Company's consolidated balance sheet and results of operations at the time of acquisition. Accordingly, no pro-forma results are provided prior to the effective date of the acquisition. The Company incurred $303,000 of expenses during the year ended December 31, 2015 associated with the acquisition, which was recorded in selling, general and administrative expense. |
Goodwill and Intangible Asset D
Goodwill and Intangible Asset Disclosure (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. Goodwill and Intangibles Goodwill activity for the year ended December 31, 2016 consisted of the following: Balance at December 31, 2015 $ 2,403,000 Additions — Impairment — Balance at December 31, 2016 $ 2,403,000 Intangible assets at December 31, 2016 were comprised of the following: Definite-lived Intangible Assets Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade Name 25 Years $ 250,000 $ (17,000 ) $ 233,000 Customer Relationships 10 Years 400,000 (70,000 ) 330,000 $ 650,000 $ (87,000 ) $ 563,000 Intangible assets at December 31, 2015 were comprised of the following: Definite-lived Intangible Assets Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade Name 25 Years $ 250,000 $ (7,000 ) $ 243,000 Customer Relationships 10 Years 400,000 (30,000 ) 370,000 $ 650,000 $ (37,000 ) $ 613,000 The aggregate intangible asset amortization expense was $50,000 and $37,000 for the years ended December 31, 2016 and 2015 and expects amortization expense to be $50,000 each year for the next five years. The Company incurred no amortization expense for the year ended December 31, 2014. |
Debt and Leases
Debt and Leases | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Leases | Debt and Leases Long-term debt consists of the following at: December 31, December 31, Capex loan payable to a bank, interest at a variable rate (2.04% at December 31, 2015) with monthly payments of interest and principal over a seven-year period through May 2016. $ — $ 714,000 Term loan payable to a bank, interest at a variable rate (2.55% and 2.24% at December 31, 2016 and 2015, respectively) with monthly payments of interest and principal through March 2020. 9,750,000 12,750,000 Revolving Line of Credit — — Total 9,750,000 13,464,000 Less current portion (3,000,000 ) (3,714,000 ) Long-term debt $ 6,750,000 $ 9,750,000 Credit Agreement On December 9, 2008, the Company and its wholly owned subsidiary, Corecomposites de Mexico, S. de R.L. de C.V., entered into a credit agreement, as amended from time to time (the "Credit Agreement"), with a lender to provide various financing facilities. Under this Credit Agreement, as amended most recently with the eleventh amendment on June 21, 2016, the Company received certain loans, subject to the terms and conditions stated in the agreement, which included (1) a $12,000,000 Capex loan; (2) an $8,000,000 Mexican loan; (3) an $18,000,000 variable rate revolving line of credit; (4) a term loan in an original amount of $15,500,000 ; and (5) a Letter of Credit Commitment of up to $250,000, of which $155,000 has been issued. The Credit Agreement is secured by a guarantee of each U.S. subsidiary of the Company, and by a lien on substantially all of the present and future assets of the Company and its U.S. subsidiaries, except that only 65% of the stock issued by Corecomposites de Mexico, S. de R.L. de C.V. has been pledged. Capex Loan The $12,000,000 Capex loan was a construction draw loan that converted to a seven-year term loan with fixed monthly principal payments. Borrowings made pursuant to this loan bear interest, payable monthly at 30 day LIBOR plus 160 basis points and was paid in full May 2016. Term Loan The $15,500,000 Term Loan was used to finance the acquisition of CPI. This commitment has fixed monthly principal payments payable over a five-year period. Borrowings made pursuant to this loan bear interest, payable monthly at 30 day LIBOR plus 180 basis points. Mexican Loan The $8,000,000 Mexican loan was also a construction draw loan to finance the production facility in Matamoros, Mexico that was converted to a five-year term loan with annual payments commencing January 2010. This commitment bore interest at LIBOR plus 160 basis points and was paid in full in January 2014. Revolving Line of Credit At December 31, 2016 , the Company had available an $18,000,000 variable rate revolving line of credit scheduled to mature on May 31, 2018. The revolving line of credit bears interest at daily LIBOR plus 160 basis points and is collateralized by all of the present and future assets of the Company and its U.S. subsidiaries (except that only 65% of the stock issued by Corecomposites de Mexico, S. de C.V. has been pledged). Annual maturities of long-term debt are as follows: 2017 $ 3,000,000 2018 3,000,000 2019 3,000,000 2020 750,000 Thereafter — Total $ 9,750,000 Interest Rate Swap On December 18, 2008, the Company entered into an interest rate swap agreement that became effective May 1, 2009 and continued through May 2016, which was designated as a cash flow hedge of the $12,000,000 Capex loan. Under this agreement, the Company paid a fixed rate of 2.295% to the counterparty and received 30 day LIBOR ( 0.44% at December 31, 2015). Effective March 31, 2009, the interest terms in the Company’s Credit Agreement related to the $12,000,000 Capex loan were amended. The Company then determined this interest rate swap was no longer highly effective. As a result, the Company discontinued the use of hedge accounting effective March 31, 2009 related to this swap, and began recording mark-to-market adjustments within interest expense in the Company’s Consolidated Statements of Income. The pre-tax loss previously recognized in Accumulated Other Comprehensive Income (Loss), totaling $146,000 as of March 31, 2009, was being amortized as an increase to interest expense of $2,000 per month, or $1,000 net of tax, over the remaining term of the interest rate swap agreement. The fair value of the swap as of December 31, 2016 and December 31, 2015 was a liability of $0 and $2,000 , respectively. The Company recorded interest income of $2,000 , $ 35,000 and $ 66,000 for mark-to-market adjustments of fair value related to this swap for the years ended December 31, 2016 , 2015 and 2014 , respectively. The notional amount of the swap at December 31, 2016 and December 31, 2015 was $0 and $714,000 , respectively. For the years ended December 31, 2016 , 2015 and 2014 , interest expense includes expense of $ 2,000 , $ 32,000 and $ 70,000 , respectively, for settlements related to the Company’s swaps. Bank Covenants The Company is required to meet certain financial covenants included in the Credit Agreement with respect to leverage ratios, fixed charge ratios, and capital expenditures, as well as other customary affirmative and negative covenants. As of December 31, 2016 , the Company was in compliance with its financial covenants associated with the loans made under the Credit Agreement as described above. Leases The Company has entered into an operating lease agreement through July 2019 for the manufacturing facility located in Batavia, Ohio. Additionally, the Company leases a warehouse and distribution center in Brownsville, Texas under a 5 -year operating lease agreement expiring in October 2017. Total rental expense was $ 808,000 , $ 696,000 and $ 767,000 for 2016 , 2015 and 2014 , respectively. Included in rental expense are both operating lease payments and rental costs related to the use of equipment during the normal course of business under nonbinding terms. Future minimum operating lease payments are as follows: 2017 $ 482,000 2018 328,000 2019 192,000 Thereafter — Total minimum lease payments $ 1,002,000 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Company has a Long Term Equity Incentive Plan (the “2006 Plan”), as approved by the Company’s stockholders in May 2006. The 2006 Plan allows for grants to directors and employees of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, performance shares, performance units and other incentive awards (“Stock Awards”) up to an aggregate of 3,000,000 awards, each representing a right to buy a share of Core Molding Technologies common stock. Stock Awards can be granted under the 2006 Plan through the earlier of December 31, 2025, or the date the maximum number of available awards under the 2006 Plan have been granted. The number of shares remaining available for future issuance is 1,448,079 . The options that were granted under the 2006 Plan had vesting schedules of five or nine and one-half years from the date of grant, or immediately upon change in ownership, were not exercisable after ten years from the date of grant, and were granted at prices which equal or exceed the fair market value of Core Molding Technologies common stock at the date of grant. Restricted stock granted under the 2006 Plan require the individuals receiving the grants to maintain certain common stock ownership thresholds and vest over three years or upon the date of the participants' sixty-fifth birthday, death, disability or change in control. Core Molding Technologies follows the provisions of FASB ASC 718 requiring that compensation cost relating to share-based payment transactions be recognized in the financial statements. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award). Core Molding Technologies adopted FASB ASC 718 using the modified prospective method. Under this method, FASB ASC 718 applies to all awards granted or modified after the date of adoption. In addition, compensation expense has been recognized for any unvested stock option awards outstanding as of the date of adoption on a straight-line basis over the remaining vesting period. Stock Options There was no compensation expense related to incentive stock options in the years ended December 31, 2016 , 2015 , and 2014 . During the years ended December 31, 2016 , 2015 and 2014 Core Molding Technologies received approximately $0 , $ 19,000 and $ 328,000 , respectively, in cash from the exercise of stock options. The aggregate intrinsic value of these options was approximately $ 0 , $ 26,000 and $ 915,000 , respectively, in each of those years. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. In 2016 there were no unexercised options outstanding, therefore the Company did not incur any tax effect related to disqualified dispositions. Tax benefit received as a result of disqualified dispositions related to stock options was $9,000 , for the year ended December 31, 2015, which was recorded as a credit to income tax expense of $6,000 and a credit to additional paid in capital of $3,000 . For the year ended December 31, 2014 the tax benefit received as a result of disqualified dispositions related to stock options was $ 311,000 , which was recorded as a credit to income tax expense of $ 84,000 and a credit to additional paid in capital of $ 227,000 . The following summarizes the activity relating to stock options under the plans mentioned above for the years ended December 31: 2016 2015 2014 Number Wtd. Avg. Number of Options Wtd. Avg. Exercise Price Number of Options Wtd. Avg. Outstanding - beginning of year — $ — 3,000 $ 6.40 227,750 $ 3.57 Granted — — — — — — Exercised — — (3,000 ) 6.40 (224,750 ) 3.53 Forfeited — — — — — — Outstanding - end of year — $ — — $ — 3,000 $ 6.40 Exercisable at December 31 — $ — — $ — 3,000 $ 6.40 Vested or expected to vest at December 31 — $ — — $ — 3,000 $ 6.40 There was no unvested stock options and no unrecognized compensation cost related to stock options after 2013. Restricted Stock The Company grants shares of its common stock to certain directors, officers, and key managers in the form of unvested stock (“Restricted Stock”). These awards are recorded at the market value of Core Molding Technologies’ common stock on the date of issuance and amortized ratably as compensation expense over the applicable vesting period. The following summarizes the status of Restricted Stock and changes during the years ended December 31: 2016 2015 2014 Number Wtd. Avg. Number of Shares Wtd. Avg. Grant Date Fair Value Number of Shares Wtd. Avg. Unvested - beginning of year 112,907 $ 16.86 104,068 $ 10.79 98,281 $ 8.91 Granted 122,963 12.59 56,662 24.39 81,763 12.04 Vested (49,183 ) 14.16 (46,629 ) 11.82 (75,976 ) 10.03 Forfeited (28,426 ) 15.93 (1,194 ) 24.39 — — Unvested - end of year 158,261 $ 14.55 112,907 $ 16.86 104,068 $ 10.79 At December 31, 2016 and 2015 , there was $ 1,356,000 and $ 1,263,000 , respectively, of total unrecognized compensation expense related to Restricted Stock granted under the 2006 Plan. That cost is expected to be recognized over the weighted-average period of 1.5 years. Total compensation expense related to restricted stock grants for the years ended December 31, 2016 , 2015 and 2014 was $ 1,003,000 , $ 785,000 and $ 744,000 , respectively, and is recorded as selling, general and administrative expense. Compensation expense for restricted stock is recorded at the fair market value at the time of the grant over vesting period of the restricted stock grant. The Company does not receive a tax deduction for restricted stock until the restricted stock vests. The tax deduction for restricted stock is based on the fair market value on the vesting date. Taxes payable for vested restricted stock value below the fair market value at grant date amounted to $ 16,000 for the year ended December 31, 2016 . Tax benefits received for vested restricted stock in excess of the fair market value at grant date amounted to $ 202,000 and $ 84,000 for the years ended December 31, 2015 and 2014 , respectively. During 2016 , 2015 and 2014 , employees surrendered 10,590 , 12,141 and 21,797 shares, respectfully, of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of the provision for income taxes are as follows: 2016 2015 2014 Current: Federal - US $ 3,408,000 $ 4,466,000 $ 1,875,000 Federal - Foreign — 405,000 453,000 State and local 2,000 18,000 42,000 3,410,000 4,889,000 2,370,000 Deferred: Federal 490,000 1,143,000 2,423,000 Federal- Foreign (86,000 ) 27,000 (29,000 ) State and local 22,000 59,000 127,000 426,000 1,229,000 2,521,000 Provision for income taxes $ 3,836,000 $ 6,118,000 $ 4,891,000 A reconciliation of the income tax provision based on the federal statutory income tax rate to the Company's income tax provision for the years ended December 31 is as follows: 2016 2015 2014 Provision at federal statutory rate - US $ 3,823,000 $ 6,177,000 $ 4,938,000 Effect of foreign taxes 34,000 (84,000 ) (115,000 ) Disqualified stock options — (5,000 ) (84,000 ) State and local tax expense, net of federal benefit 24,000 76,000 170,000 Other (45,000 ) (46,000 ) (18,000 ) Provision for income taxes $ 3,836,000 $ 6,118,000 $ 4,891,000 In October 2016, the Internal Revenue Service entered into a unilateral agreement with the Large Taxpayer Division of Mexico's Servicio de Administracion Tributaria (SAT) to provide for a Fast Track methodology to resolve all pending Advanced Pricing Agreements (APA) for the Maquiladora industry. The Company's Mexican subsidiary filed an APA and qualifies for and has adopted this methodology. The cumulative change for 2014 through 2016 results in a transfer pricing adjustment in 2016 increasing the parent company's income and a resulting reduction in income for the Mexican subsidiary. This resulted in creating a $321,000 operating loss in 2016 for the Mexican subsidiary. This net operating loss carryforward ("NOL") is available to offset future taxable income in Mexico. The Company anticipates utilizing this NOL in 2017, therefore no valuation allowance has been recorded. Taxes payable for vested restricted stock value below the fair market value at grant date amounted to $16,000 for the year ended December 31, 2016 . Certain tax benefits related to incentive stock options and vesting of restricted stock totaled $211,000 and $395,000 for the years ended December 31, 2015 and 2014 , respectively. The Company performs an analysis to evaluate the balance of deferred tax assets that will be realized. The analysis is based on the premise that the deferred tax benefits will be realized through the generation of future taxable income. Based on the analysis, the Company has not realized a valuation allowance on the deferred tax assets as of December 31, 2016 and 2015 . Deferred tax assets consist of the following at December 31: 2016 2015 Current asset (liability): Accrued liabilities $ 938,000 $ 820,000 Accounts receivable 110,000 202,000 Inventory 588,000 698,000 Other, net (255,000 ) (122,000 ) Total current asset 1,381,000 1,598,000 Non-current asset (liability): Property, plant, and equipment (5,274,000 ) (4,844,000 ) Post retirement benefits 3,212,000 3,350,000 Other, net (311,000 ) (758,000 ) Total non-current asset (liability) (2,373,000 ) (2,252,000 ) Total deferred tax asset (liability) - net $ (992,000 ) $ (654,000 ) At December 31, 2016 , a provision has not been made for U.S. taxes on accumulated undistributed earnings of approximately $6,965,000 of the Company's Mexican subsidiary that would become payable upon repatriation to the United States. It is the intention of the Company to reinvest all such earnings in operations and facilities outside of the United States. At December 31, 2016 and 2015 the Company had no liability for unrecognized tax benefits under guidance relating to tax uncertainties. The Company does not anticipate that the unrecognized tax benefits will significantly change within the next twelve months. The Company files income tax returns in the U.S. federal jurisdiction, Mexico and various state and local jurisdictions. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for the years before 2013, and no longer subject to Mexican income tax examinations by Mexican authorities for the years before 2011. |
Post Retirement Benefits
Post Retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Post Retirement Benefits | The Company provides post retirement benefits to certain of its United States employees, including contributions to a multi-employer defined benefit pension plan, health care and life insurance benefits, and contributions to three 401(k) defined contribution plans. The Company contributes to a multi-employer defined benefit pension plan for its employees represented by the International Association of Machinists and Aerospace Workers ("IAM") at the Company’s Columbus, Ohio production facility. The Company does not administer this plan and contributions are determined in accordance with provisions of the collective bargaining agreement. The risks of participating in this multi-employer plan are different from a single-employer plan in the following aspects: • Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If the Company chooses to stop participating in its multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company’s participation in the multi-employer defined benefit pension plan for the years ended December 31, 2016 and 2015 is outlined in the table below. The most recent Pension Protection Act ("PPA") zone status available in 2016 and 2015 is for the plan’s year-end at December 31, 2015 , and December 31, 2014 , respectively. The zone status is based on information the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or has been implemented. Pension Fund EIN/Pension Plan Number Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions of the Company Surcharge Imposed Expiration Date of Collective Bargaining Agreement 2016 2015 2016 2015 IAM National Pension Fund / National Pension Plan (A) 51-6031295 - 002 Green as of 12/31/15 Green as of 12/31/14 No $710,000 $863,000 No 8/10/2019 Total Contributions: $710,000 $863,000 (A) The plan re-certified its zone status after using the amortization provisions of the Code. The Company's contributions to the plan did not represent more than 5% of total contributions to the plan as indicated in the plan's most recently available annual report for the plan year ended December 31, 2015. Under the terms of the collective-bargaining agreement, the Company is required to make contributions to the plan for each hour worked up to a maximum of 40 hours per person, per week, at the following rates: $1.45 per hour from August 8, 2016 through August 6, 2017; $1.50 per hour from August 7, 2017 through August 5, 2018; $1.55 per hour from August 6, 2018 through August 10, 2019. Prior to the acquisition of Columbus Plastics, certain of the Company's employees were participants, or were eligible to participate, in Navistar's post retirement health and life insurance benefit plan. This plan provides healthcare and life insurance benefits for certain employees upon their retirement, along with their spouses and certain dependents and requires cost sharing between the Company, Navistar and the participants, in the form of premiums, co-payments, and deductibles. The Company and Navistar share the cost of benefits for these employees, using a formula that allocates the cost based upon the respective portion of time that the employee was an active service participant after the acquisition of Columbus Plastics to the period of active service prior to the acquisition of Columbus Plastics. The Company also sponsors a post retirement health and life insurance benefit plan for certain union retirees of its Columbus, Ohio production facility. In August 2010, as part of a new collective-bargaining agreement, the post retirement health and life insurance benefits for all current and future represented employees who were not retired were eliminated in exchange for a one-time cash payment. Individuals who retired prior to August 2010 remain eligible for post retirement health and life insurance benefits. The elimination of post retirement health and life insurance benefits described above resulted in a reduction of the Company’s post retirement benefits liability of approximately $10,282,000 in 2010. This reduction in post retirement benefits liability was treated as a negative plan amendment and is being amortized as a reduction to net periodic benefit cost over approximately twenty years, the actuarial life expectancy of the remaining participants in the plan at the time of the amendment. This negative plan amendment resulted in net periodic benefit cost reductions of approximately $496,000 in 2016 , 2015 and 2014 , and will result in net periodic benefit cost reductions of approximately $496,000 in 2017 and each year thereafter during the amortization period. The funded status of the Company's post retirement health and life insurance benefits plan as of December 31, 2016 and 2015 and reconciliation with the amounts recognized in the consolidated balance sheets are provided below. Post Retirement Benefits 2016 2015 Change in benefit obligation: Benefit obligation at January 1 $ 9,006,000 $ 9,172,000 Interest cost 323,000 316,000 Unrecognized gain (320,000 ) (48,000 ) Benefits paid (342,000 ) (434,000 ) Benefit obligation at December 31 $ 8,667,000 $ 9,006,000 Plan Assets — — Amounts recorded in accumulated other comprehensive income: Prior service credit $ (7,098,000 ) $ (7,594,000 ) Net loss 3,464,000 3,939,000 Total $ (3,634,000 ) $ (3,655,000 ) Weighted-average assumptions as of December 31: Discount rate used to determine benefit obligation and net periodic benefit cost 3.8 % 4.1 % The components of expense for all of the Company's post retirement benefit plans for the years ended December 31: 2016 2015 2014 Pension expense: Multi-employer plan $ 710,000 $ 863,000 $ 719,000 Defined contribution plans 766,000 836,000 701,000 Total pension expense 1,476,000 1,699,000 1,420,000 Health and life insurance: Interest cost 323,000 316,000 277,000 Amortization of prior service costs (496,000 ) (496,000 ) (496,000 ) Amortization of net loss 155,000 169,000 47,000 Net periodic benefit cost (18,000 ) (11,000 ) (172,000 ) Total post retirement benefits expense $ 1,458,000 $ 1,688,000 $ 1,248,000 The Company accounts for post retirement benefits under FASB ASC 715, which requires the recognition of the funded status of a defined benefit pension or post retirement plan in the consolidated balance sheets. For the year ended December 31, 2016 and 2015 , the Company recognized a net actuarial gain of $ 320,000 and $ 48,000 , respectively, which was recorded in accumulated other comprehensive income. Amounts not yet recognized as a component of net periodic benefit costs at December 31, 2016 and 2015 were a net credit of $ 3,634,000 and $ 3,655,000 , respectively. The amount in accumulated other comprehensive income expected to be recognized as components of net periodic post retirement cost during 2017 consists of a prior service credit of $ 496,000 , and a net loss of $ 149,000 . In addition, 2017 interest expense related to post retirement healthcare is expected to be $ 298,000 , for a total post retirement healthcare net gain of approximately $ 49,000 in 2017 . The Company expects benefits paid in 2017 to be consistent with estimated future benefit payments as shown in the table below. The weighted average rate of increase in the per capita cost of covered health care benefits is projected to be 7% . The rate is projected to decrease gradually to 5% by the year 2025 and remain at that level thereafter. The comparable assumptions for the prior year were 6% and 5% , respectively. The effect of changing the health care cost trend rate by one-percentage point for each future year is as follows: 1- Percentage Point Increase 1-Percentage Point Decrease Effect on total of service and interest cost components $ 43,000 $ (50,000 ) Effect on post retirement benefit obligation $ 941,000 $ (800,000 ) The estimated future benefit payments of the health care plan are as follows: Year Postretirement Health Care Benefits Plan 2017 $ 1,018,000 2018 411,000 2019 432,000 2020 461,000 2021 485,000 2022-2026 2,515,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is involved in litigation incidental to the conduct of its business. However, the Company is presently not involved in any legal proceedings which in the opinion of management are likely to have a material adverse effect on the Company's consolidated financial position or results of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance provides a fair value framework that requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1 - Quoted prices in active markets for identical assets and liabilities. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. Level 3 - Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. The Company’s financial instruments consist of debt, interest rate swap, foreign currency derivatives, accounts receivable, and accounts payable. The carrying amount of these financial instruments approximated their fair value. During 2016, the Company had two Level 2 fair value measurements, which related to the Company’s interest rate swap and foreign currency derivatives. Interest rate swap The Company utilized an interest rate swap contract to manage its targeted mix of fixed and floating rate debt, and this swap was valued using observable benchmark rates at commonly quoted intervals for the full term of the swap (market approach). The interest rate swap, discussed in detail in Note 9, was deemed immaterial to the financial statements. Derivative and hedging activities The Company conducts business in Mexico and pays certain expenses in Mexican Pesos. The Company is exposed to foreign currency exchange risk between the U.S. dollar and the Mexican Peso, which could impact the Company’s operating income and cash flows. To mitigate risk associated with foreign currency exchange, the Company entered into forward contracts to exchange a fixed amount of U.S. dollars for a fixed amount of Mexican Pesos, which will be used to fund future peso cash flows. At inception, all forward contracts are formally documented as cash flow hedges and are measured at fair value each reporting period. Derivatives are formally assessed both at inception and at least quarterly thereafter, to ensure that derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, hedge accounting is discontinued, and any future mark-to-market adjustments are recognized in earnings. The effective portion of gain or loss is reported in other comprehensive income and the ineffective portion is reported in earnings. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in the Mexican Peso. As of December 31, 2016 , the Company had no ineffective portion related to the cash flow hedges. Financial statements impacts The following tables detail amounts related to our derivatives designated as hedging instruments as of December 31, 2016 : Fair Values of Derivatives Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Prepaid expense other current assets — Accrued liabilities other $ 303,000 Notional contract values — $ 6,502,000 The Company had no derivatives designated as hedging instruments as of December 31, 2015 . As of December 31, 2016 , the Company had foreign exchange contracts related to the Mexican Peso with exchange rates ranging from 20.01 to 20.68. The following tables summarize the amount of unrealized / realized gain and loss recognized in Accumulated Comprehensive Income (AOCI) for the years ended December 31, 2016 , 2015 and 2014 : Derivatives in subtopic 815-20 Cash Flow Hedging Relationship Amount of Unrealized Gain or (Loss) Recognized in Accumulated other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (A) Amount of Realized Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income 2016 2015 2014 2016 2015 2014 Foreign exchange contracts $(289,000) — — Cost of goods sold $12,000 — — Sales, general and administrative expense $2,000 — — (A) The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and sales, general and administrative expense based on the percentage of Mexican Peso spend. Non-recurring fair value measurements There were no non-recurring fair value measurements for the year ended December 31, 2016 . At December 31, 2015 the Company's assets measured at fair value on a non-recurring basis related to the acquisition of substantially all of the assets of CPI, as disclosed in Note 7. |
AOCI (Notes)
AOCI (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 15. Accumulated Other Comprehensive Income The following table presents changes in Accumulated Other Comprehensive Income by component, net of tax, for the years ended December 31, 2016 and 2015 : Foreign Currency Derivative Activities (A) Post Retirement Benefit Plan Items (B) Total 2015: Balance at January 1, 2015 $ — $ 2,830,000 $ 2,830,000 Other comprehensive income before reclassifications — 48,000 48,000 Amounts reclassified from accumulated other comprehensive income — (306,000 ) (306,000 ) Income tax (expense) benefit — 73,000 73,000 Balance at December 31, 2015 $ — $ 2,645,000 $ 2,645,000 2016: Balance at January 1, 2016 $ — $ 2,645,000 $ 2,645,000 Other comprehensive income before reclassifications (289,000 ) 319,000 30,000 Amounts reclassified from accumulated other comprehensive income (14,000 ) (336,000 ) (350,000 ) Income tax (expense) benefit 103,000 (14,000 ) 89,000 Balance at December 31, 2016 $ (200,000 ) $ 2,614,000 $ 2,414,000 (A) The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and sales, general and administrative expense based on the percentage of Mexican Peso spend. The tax effect of the foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is included in income tax expense on the Consolidated Statements of Income. (B) The Company has historically disclosed both interest rate swap activity and post-retirement benefit activity separately, however due to immaterial interest rate swap activity the components associated with interest rate swaps have been combined in the post retirement disclosures above. The effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in total cost of sales on the Consolidated Statements of Income. These Accumulated Other Comprehensive Income components are included in the computation of net periodic benefit cost (see Note 12 "Post Retirement Benefits" for additional details). The tax effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in income tax expense on the Consolidated Statements of Income. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2016 , 2015 and 2014 . 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2016: Product sales $ 42,530,000 $ 36,813,000 $ 33,816,000 $ 33,465,000 $ 146,624,000 Tooling sales 2,938,000 2,193,000 7,520,000 15,607,000 28,258,000 Net sales 45,468,000 39,006,000 41,336,000 49,072,000 174,882,000 Gross margin 8,863,000 6,323,000 5,581,000 7,157,000 27,924,000 Operating income 4,442,000 2,307,000 1,657,000 3,139,000 11,545,000 Net income 2,890,000 1,460,000 1,029,000 2,032,000 7,411,000 Net income per common share: Basic (1) $ 0.38 $ 0.19 $ 0.13 $ 0.27 $ 0.97 Diluted (1) $ 0.38 $ 0.19 $ 0.13 $ 0.26 $ 0.97 2015: Product sales $ 47,854,000 $ 53,514,000 $ 44,243,000 $ 43,492,000 $ 189,103,000 Tooling sales 1,745,000 1,342,000 3,806,000 3,072,000 9,965,000 Net sales 49,599,000 54,856,000 48,049,000 46,564,000 199,068,000 Gross margin 9,025,000 10,982,000 8,311,000 7,934,000 36,252,000 Operating income 4,890,000 6,232,000 3,902,000 3,474,000 18,498,000 Net income 3,196,000 4,039,000 2,484,000 2,331,000 12,050,000 Net income per common share: Basic (1) $ 0.42 $ 0.53 $ 0.33 $ 0.31 $ 1.59 Diluted (1) $ 0.42 $ 0.53 $ 0.33 $ 0.31 $ 1.58 2014: Product sales $ 40,664,000 $ 43,317,000 $ 43,171,000 $ 42,592,000 $ 169,744,000 Tooling sales 411,000 2,807,000 420,000 1,822,000 5,460,000 Net sales 41,075,000 46,124,000 43,591,000 44,414,000 175,204,000 Gross margin 6,645,000 7,599,000 8,147,000 7,795,000 30,186,000 Operating income 3,116,000 3,873,000 3,704,000 3,954,000 14,647,000 Net income 2,120,000 2,520,000 2,428,000 2,566,000 9,634,000 Net income per common share: Basic (1) $ 0.29 $ 0.34 $ 0.32 $ 0.34 $ 1.28 Diluted (1) $ 0.28 $ 0.33 $ 0.32 $ 0.34 $ 1.28 (1) Sum of the quarters may not sum to total year due to rounding. |
Schedule II (Notes)
Schedule II (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II | Core Molding Technologies, Inc. and Subsidiaries Schedule II Consolidated valuation and qualifying accounts and reserves for the years ended December 31, 2016 , 2015 and 2014 . Reserves deducted from asset to which it applies: Allowance for Doubtful Accounts Additions Balance at Beginning of Year (Recovered)/Charged to Costs & Expenses Charged to Other Accounts Deductions (A) Balance at End of Year Year Ended December 31, 2016 $ 32,000 $ (23,000 ) $ — $ 9,000 $ — Year Ended December 31, 2015 $ 289,000 $ (167,000 ) $ — $ 90,000 $ 32,000 Year Ended December 31, 2014 $ 141,000 $ 197,000 $ — $ 49,000 $ 289,000 Customer Chargeback Allowance Additions Balance at Beginning of Year (Recovered)/Charged to Costs & Expenses Charged to Other Accounts Deductions (B) Balance at End of Year Year Ended December 31, 2016 $ 523,000 $ 444,000 $ — $ 658,000 $ 309,000 Year Ended December 31, 2015 $ 813,000 $ 473,000 $ — $ 763,000 $ 523,000 Year Ended December 31, 2014 $ 973,000 $ 717,000 $ — $ 877,000 $ 813,000 (A) Amount represents uncollectible accounts written off. (B) Amount represents customer returns and deductions, discounts and price adjustments accepted. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. Significant estimates relate to allowances for doubtful accounts, inventory reserves, self-insurance reserves related to healthcare and workers compensation, deferred taxes, post retirement benefits, goodwill and long-lived assets. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition - Revenue from product sales is recognized at the time products are shipped and title transfers. Allowances for returned products and other credits are estimated and recorded as revenue is recognized. Tooling revenue is recognized when the customer approves the tool and accepts ownership. Progress billings and expenses are shown net as an asset or liability on the Company’s Consolidated Balance Sheet. Tooling in progress can fluctuate significantly from period to period and is dependent upon the stage of tooling projects and the related billing and expense payment timetable for individual projects and therefore does not necessarily reflect projected income or loss from tooling projects. At December 31, 2016 , the Company had a net liability related to tooling in progress of $ 1,084,000 , which represents approximately $11,052,000 of progress tooling billings and $ 9,968,000 of progress tooling expenses. At December 31, 2015 , the Company had a net liability related to tooling in progress of $ 2,271,000 which represents approximately $21,967,000 of progress tooling billings and $19,696,000 of progress tooling expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents - The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in one bank. The Company had cash on hand of $28,285,000 at December 31, 2016 and $8,943,000 at December 31, 2015 . |
Accounts Receivable Allowances | Accounts Receivable Allowances - Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at December 31, 2016 and had recorded allowance for doubtful accounts of$ 40,000 at December 31, 2015 . Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $309,000 at December 31, 2016 and $523,000 at December 31, 2015 . There have been no material changes in the methodology of these calculations. |
Inventories | Inventories - Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or market. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $770,000 at December 31, 2016 and $863,000 at December 31, 2015 . |
Principles of Consolidation | Principles of Consolidation - The accompanying consolidated financial statements include the accounts of all subsidiaries after elimination of all intercompany accounts, transactions, and profits. |
Property, Plant and Equipment | Property, Plant, and Equipment - Property, plant, and equipment are recorded at cost. Depreciation is provided on a straight-line method over the estimated useful lives of the assets. The carrying amount of long‑lived assets is evaluated annually to determine if adjustment to the depreciation period or to the unamortized balance is warranted. Ranges of estimated useful lives for computing depreciation are as follows: Land improvements 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 15 years Tools, dies and patterns 3 - 5 years Depreciation expense was $6,217,000 , $5,955,000 and $5,009,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company capitalized interest costs of approximately $0 and $2,000 for the years ended December 31, 2016 and 2015 , respectively. |
Long-Lived Assets | Long-Lived Assets - Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The Company acquired substantially all of the assets of CPI on March 20, 2015, which resulted in approximately $650,000 of definite-lived intangibles and $12,474,000 of property, plant and equipment, all of which were recorded at fair value. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates, whether impairment exists for long-lived assets on the basis of undiscounted expected future cash flows from operations before interest. There was no impairment of the Company's long-lived assets for the years ended December 31, 2016 , 2015 and 2014 . |
Goodwill | Goodwill - The Company has recorded $ 2,403,000 of goodwill as a result of two acquisitions. In 2001, the Company acquired certain assets of Airshield Corporation, and as a result, recorded goodwill in the amount of $1,097,000 . The Company also acquired substantially all of the assets of CPI on March 20, 2015, which resulted in approximately $1,306,000 of goodwill. The Company evaluates goodwill annually on December 31 st to determine whether impairment exists, or at interim periods if an indicator of possible impairment exists. The Company evaluates goodwill for impairment utilizing the one-step qualitative assessment. We consider relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, entity specific events and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform the first step of the impairment test. If the Company's carrying amount is determined to be more likely than not impaired based on the one-step qualitative approach, a quantitative valuation to estimate the fair value of the Company is performed. Fair value measurements are based on a projected discounted cash flow valuation model, in accordance with ASC 350, “Intangibles-Goodwill and Other.” There was no impairment of the Company's goodwill for the years ended December 31, 2016 , 2015 and 2014 . |
Income Taxes | Income Taxes - The Company records deferred income taxes for differences between the financial reporting basis and income tax basis of assets and liabilities. A detailed breakout is located in Note 11. |
Self-Insurance | Self-Insurance - The Company is self-insured with respect to its Columbus and Batavia, Ohio, Gaffney, South Carolina and Brownsville, Texas medical, dental and vision claims and Columbus and Batavia, Ohio workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at December 31, 2016 and December 31, 2015 of $ 1,139,000 and $ 1,074,000 , respectively. |
Post Retirement Benefits | Post Retirement Benefits - Management records an accrual for post retirement costs associated with the health care plan sponsored by the Company for certain employees. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on the Company's operations. The effect of a change in healthcare costs is described in Note 12 of the Notes to Consolidated Financial Statements. Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarially computed estimates of $ 8,667,000 at December 31, 2016 and $ 9,006,000 at December 31, 2015 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - The Company's financial instruments consist of long-term debt, interest rate swaps, foreign currency hedges, accounts receivable, and accounts payable. The carrying amount of these financial instruments approximated their fair value. |
Concentration Risk | Concentration Risks - The Company has concentration risk related to significant amounts of sales and accounts receivable with certain customers. Sales to four major customers comprised 78% , 82% and 87% of total sales in 2016 , 2015 and 2014 , respectively (see Note 4). Concentrations of accounts receivable balances with four customers accounted for 75% and 88% of accounts receivable at December 31, 2016 and 2015 , respectively. The Company performs ongoing credit evaluations of its customers' financial condition. The Company maintains reserves for potential bad debt losses, and such bad debt losses have been historically within the Company's expectations. Sales to certain customers' manufacturing and service locations in Mexico and Canada totaled 32% , 35% and 30% of total sales for 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , the Company employed a total of 1,247 employees, which consisted of 568 employees in its United States operations and 679 employees in its Mexican operations. Of these 1,247 employees, 246 are covered by a collective bargaining agreement with the International Association of Machinists and Aerospace Workers (“IAM”), which extends to August 10, 2019, and 583 are covered by a collective bargaining agreement with Sindicato de Jorneleros y Obreros, which extends to January 1, 2018. |
Earnings Per Common Share | Earnings Per Common Share - Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per common share are computed similarly but include the effect of the assumed exercise of dilutive stock options and vesting of restricted stock under the treasury stock method. A detailed computation of earnings per share is located in Note 3. |
Research and Development | Research and Development - Research and development activities focus on developing new material formulations, new products, new production capabilities and processes, and improving existing products and manufacturing processes. The Company does not maintain a separate research and development organization or facility, but uses its production equipment, as necessary, to support these efforts and cooperates with its customers and its suppliers in research and development efforts. Likewise, manpower to direct and advance research and development is integrated with the existing manufacturing, engineering, production, and quality organizations. Research and development costs, which are expensed as incurred, totaled approximately $ 965,000 , $719,000 and $475,000 in 2016 , 2015 and 2014 . |
Foreign Currency Adjustments | Foreign Currency Adjustments - In conjunction with the Company's acquisition of certain assets of Airshield Corporation, the Company established operations in Mexico. The functional currency for the Mexican operations is the United States dollar. All foreign currency asset and liability amounts are remeasured into United States dollars at end-of-period exchange rates. Income statement accounts are translated at the weighted monthly average rates. Gains and losses resulting from translation of foreign currency financial statements into United States dollars and gains and losses resulting from foreign currency transactions are included in current results of operations. Net foreign currency translation and transaction activity is included in selling, general and administrative expense. This activity resulted in a gain of $89,000 and $ 54,000 in 2016 and 2015 , respectively, and a loss of $ 108,000 in 2014 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASC Topic 606 is based on the principle that revenue is recognized 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. ASC Topic 606 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 obtain or fulfill a contract. The effective date for ASC Topic 606, as updated by ASU No. 2015-14 in August 2015, has been delayed until the first quarter of fiscal year 2018. ASU 2014-09 will affect the timing of certain revenue related transactions primarily resulting from the earlier recognition of the Company's tooling sales and costs. Upon adoption of ASU 2014-09 tooling sales and costs will be recorded over time on a percentage of completion methodology instead of completed contract methodology. We have not yet determined whether we will adopt the provisions of ASU 2014-09 on a retrospective basis or through a cumulative adjustment to equity. We continue to assess the overall impact the adoption of ASU 2014-09 will have on our consolidated financial statements, and anticipate testing our new controls and processes designed to comply with ASU 2014-09 throughout 2017 to permit adoption by January 1, 2018. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update requires all deferred tax assets and liabilities, and any related valuation allowance, to be classified as noncurrent on the balance sheet. The ASU simplifies the current standard, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company will adopt this standard's update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update requires organizations to recognize lease assets and lease liabilities on the balance sheet and also disclose key information about leasing arrangements. This ASU is effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual period. The Company will adopt this standard's update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU 2016-09") as part of the FASB simplification initiative. The new standard provides for changes to accounting for stock compensation including 1) excess tax benefits and tax deficiencies related to share based payment awards will be recognized as income tax expense in the reporting period in which they occur; 2) excess tax benefits will be classified as an operating activity in the statement of cash flow; 3) the option to elect to estimate forfeitures or account for them when they occur; and 4) increases the tax withholding requirement threshold to qualify for equity classification. The ASU is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and early adoption is permitted. The Company will adopt this standard update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). The new standard provides clarification on the classification of the following eight specific cash flow issues: 1) debt prepayments or debt extinguishment costs, 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of borrowing, 3) contingent consideration payments made after a business combination, 4) proceeds from the settlement of insurance claims, 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, 6) distributions received from equity method investees, 7) beneficial interests in securitization transactions and 8) separately identifiable cash flows and application of the predominance principle. The ASU is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 and early adoption is permitted. The Company will adopt this standard update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard eliminates step 2, which required companies to determine the implied fair value of the reporting unit's goodwill, of the goodwill impairment test. Under this new guidance, companies will perform their annual goodwill impairment test by comparing the reporting unit's carrying value, including goodwill, to the fair value. An impairment charge would be recorded if the carrying value exceeds the reporting unit's fair value. The ASU is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2020 and early adoption is permitted. The Company will adopt this standard update as required and does not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Components of property, plant and equipment | Ranges of estimated useful lives for computing depreciation are as follows: Land improvements 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 15 years Tools, dies and patterns 3 - 5 years Property, plant, and equipment consisted of the following at December 31: 2016 2015 Land and land improvements $ 5,958,000 $ 5,958,000 Buildings 42,593,000 41,417,000 Machinery and equipment 89,692,000 87,482,000 Tools, dies, and patterns 808,000 808,000 Additions in progress 1,607,000 2,331,000 Total 140,658,000 137,996,000 Less accumulated depreciation (70,057,000 ) (63,893,000 ) Property, plant, and equipment - net $ 70,601,000 $ 74,103,000 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income per common share | The computation of basic and diluted net income per common share is as follows: December 31, 2016 2015 2014 Net income $ 7,411,000 $ 12,050,000 $ 9,634,000 Weighted average common shares outstanding — basic 7,621,000 7,583,000 7,508,000 Effect of dilutive securities 40,000 40,000 45,000 Weighted average common and potentially issuable common shares outstanding — diluted 7,661,000 7,623,000 7,553,000 Basic net income per common share $ 0.97 $ 1.59 $ 1.28 Diluted net income per common share $ 0.97 $ 1.58 $ 1.28 |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Revenue, Net [Abstract] | |
Major customers | The following table presents sales revenue for the above-mentioned customers for the years ended December 31: 2016 2015 2014 Volvo product sales $ 29,520,000 $ 53,525,000 $ 46,340,000 Volvo tooling sales 20,450,000 1,600,000 2,519,000 Total Volvo sales 49,970,000 55,125,000 48,859,000 Navistar product sales 39,756,000 50,169,000 51,254,000 Navistar tooling sales 1,994,000 6,246,000 76,000 Total Navistar sales 41,750,000 56,415,000 51,330,000 PACCAR product sales 24,235,000 33,452,000 35,602,000 PACCAR tooling sales 3,481,000 978,000 526,000 Total PACCAR sales 27,716,000 34,430,000 36,128,000 Yamaha product sales 16,205,000 16,766,000 16,911,000 Yamaha tooling sales — — — Total Yamaha sales 16,205,000 16,766,000 16,911,000 Other product sales 36,908,000 35,191,000 19,637,000 Other tooling sales 2,333,000 1,141,000 2,339,000 Total other sales 39,241,000 36,332,000 21,976,000 Total product sales 146,624,000 189,103,000 169,744,000 Total tooling sales 28,258,000 9,965,000 5,460,000 Total sales $ 174,882,000 $ 199,068,000 $ 175,204,000 |
Foreign Operations (Tables)
Foreign Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Sales and property and equipment, net by country | The following table provides information related to sales by country, based on the ship to location of customers' production facilities, for the years ended December 31: 2016 2015 2014 United States $ 119,018,000 $ 129,651,000 $ 123,317,000 Mexico 51,389,000 63,586,000 47,772,000 Canada 4,475,000 5,831,000 4,115,000 Total $ 174,882,000 $ 199,068,000 $ 175,204,000 The following table provides information related to the location of property, plant and equipment, net, as of December 31: 2016 2015 United States $ 42,547,000 $ 44,191,000 Mexico 28,054,000 29,912,000 Total $ 70,601,000 $ 74,103,000 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | Ranges of estimated useful lives for computing depreciation are as follows: Land improvements 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 15 years Tools, dies and patterns 3 - 5 years Property, plant, and equipment consisted of the following at December 31: 2016 2015 Land and land improvements $ 5,958,000 $ 5,958,000 Buildings 42,593,000 41,417,000 Machinery and equipment 89,692,000 87,482,000 Tools, dies, and patterns 808,000 808,000 Additions in progress 1,607,000 2,331,000 Total 140,658,000 137,996,000 Less accumulated depreciation (70,057,000 ) (63,893,000 ) Property, plant, and equipment - net $ 70,601,000 $ 74,103,000 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Consideration was allocated to assets acquired and liabilities assumed based on their fair values as of the acquisition date as follows: Accounts Receivable $ 1,615,000 Inventory 675,000 Other Current Assets 171,000 Property and Equipment 12,474,000 Intangibles 650,000 Goodwill 1,306,000 Accounts Payable (2,277,000 ) Other Current Liabilities (102,000 ) $ 14,512,000 |
Goodwill and Intangible Asset33
Goodwill and Intangible Asset Disclosure (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Goodwill [Table Text Block] | Goodwill activity for the year ended December 31, 2016 consisted of the following: Balance at December 31, 2015 $ 2,403,000 Additions — Impairment — Balance at December 31, 2016 $ 2,403,000 | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Intangible assets at December 31, 2016 were comprised of the following: Definite-lived Intangible Assets Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade Name 25 Years $ 250,000 $ (17,000 ) $ 233,000 Customer Relationships 10 Years 400,000 (70,000 ) 330,000 $ 650,000 $ (87,000 ) $ 563,000 | Intangible assets at December 31, 2015 were comprised of the following: Definite-lived Intangible Assets Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade Name 25 Years $ 250,000 $ (7,000 ) $ 243,000 Customer Relationships 10 Years 400,000 (30,000 ) 370,000 $ 650,000 $ (37,000 ) $ 613,000 |
Debt and Leases (Tables)
Debt and Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt consists of the following at: December 31, December 31, Capex loan payable to a bank, interest at a variable rate (2.04% at December 31, 2015) with monthly payments of interest and principal over a seven-year period through May 2016. $ — $ 714,000 Term loan payable to a bank, interest at a variable rate (2.55% and 2.24% at December 31, 2016 and 2015, respectively) with monthly payments of interest and principal through March 2020. 9,750,000 12,750,000 Revolving Line of Credit — — Total 9,750,000 13,464,000 Less current portion (3,000,000 ) (3,714,000 ) Long-term debt $ 6,750,000 $ 9,750,000 |
Maturities of long-term debt | Annual maturities of long-term debt are as follows: 2017 $ 3,000,000 2018 3,000,000 2019 3,000,000 2020 750,000 Thereafter — Total $ 9,750,000 |
Future minimum rental payments for operating leases | Future minimum operating lease payments are as follows: 2017 $ 482,000 2018 328,000 2019 192,000 Thereafter — Total minimum lease payments $ 1,002,000 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Stock Option [Member] | |
Stock based compensation: | |
Activity relating to stock options | The following summarizes the activity relating to stock options under the plans mentioned above for the years ended December 31: 2016 2015 2014 Number Wtd. Avg. Number of Options Wtd. Avg. Exercise Price Number of Options Wtd. Avg. Outstanding - beginning of year — $ — 3,000 $ 6.40 227,750 $ 3.57 Granted — — — — — — Exercised — — (3,000 ) 6.40 (224,750 ) 3.53 Forfeited — — — — — — Outstanding - end of year — $ — — $ — 3,000 $ 6.40 Exercisable at December 31 — $ — — $ — 3,000 $ 6.40 Vested or expected to vest at December 31 — $ — — $ — 3,000 $ 6.40 |
Restricted Stock [Member] | |
Stock based compensation: | |
Status and changes of restricted stock | The following summarizes the status of Restricted Stock and changes during the years ended December 31: 2016 2015 2014 Number Wtd. Avg. Number of Shares Wtd. Avg. Grant Date Fair Value Number of Shares Wtd. Avg. Unvested - beginning of year 112,907 $ 16.86 104,068 $ 10.79 98,281 $ 8.91 Granted 122,963 12.59 56,662 24.39 81,763 12.04 Vested (49,183 ) 14.16 (46,629 ) 11.82 (75,976 ) 10.03 Forfeited (28,426 ) 15.93 (1,194 ) 24.39 — — Unvested - end of year 158,261 $ 14.55 112,907 $ 16.86 104,068 $ 10.79 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of provision for income taxes | Components of the provision for income taxes are as follows: 2016 2015 2014 Current: Federal - US $ 3,408,000 $ 4,466,000 $ 1,875,000 Federal - Foreign — 405,000 453,000 State and local 2,000 18,000 42,000 3,410,000 4,889,000 2,370,000 Deferred: Federal 490,000 1,143,000 2,423,000 Federal- Foreign (86,000 ) 27,000 (29,000 ) State and local 22,000 59,000 127,000 426,000 1,229,000 2,521,000 Provision for income taxes $ 3,836,000 $ 6,118,000 $ 4,891,000 |
Reconciliation of income tax provision | A reconciliation of the income tax provision based on the federal statutory income tax rate to the Company's income tax provision for the years ended December 31 is as follows: 2016 2015 2014 Provision at federal statutory rate - US $ 3,823,000 $ 6,177,000 $ 4,938,000 Effect of foreign taxes 34,000 (84,000 ) (115,000 ) Disqualified stock options — (5,000 ) (84,000 ) State and local tax expense, net of federal benefit 24,000 76,000 170,000 Other (45,000 ) (46,000 ) (18,000 ) Provision for income taxes $ 3,836,000 $ 6,118,000 $ 4,891,000 |
Components of deferred tax assets | Deferred tax assets consist of the following at December 31: 2016 2015 Current asset (liability): Accrued liabilities $ 938,000 $ 820,000 Accounts receivable 110,000 202,000 Inventory 588,000 698,000 Other, net (255,000 ) (122,000 ) Total current asset 1,381,000 1,598,000 Non-current asset (liability): Property, plant, and equipment (5,274,000 ) (4,844,000 ) Post retirement benefits 3,212,000 3,350,000 Other, net (311,000 ) (758,000 ) Total non-current asset (liability) (2,373,000 ) (2,252,000 ) Total deferred tax asset (liability) - net $ (992,000 ) $ (654,000 ) |
Post Retirement Benefits (Table
Post Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of multiemployer plans | Pension Fund EIN/Pension Plan Number Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions of the Company Surcharge Imposed Expiration Date of Collective Bargaining Agreement 2016 2015 2016 2015 IAM National Pension Fund / National Pension Plan (A) 51-6031295 - 002 Green as of 12/31/15 Green as of 12/31/14 No $710,000 $863,000 No 8/10/2019 Total Contributions: $710,000 $863,000 (A) The plan re-certified its zone status after using the amortization provisions of the Code. The Company's contributions to the plan did not represent more than 5% of total contributions to the plan as indicated in the plan's most recently available annual report for the plan year ended December 31, 2015. Under the terms of the collective-bargaining agreement, the Company is required to make contributions to the plan for each hour worked up to a maximum of 40 hours per person, per week, at the following rates: $1.45 per hour from August 8, 2016 through August 6, 2017; $1.50 per hour from August 7, 2017 through August 5, 2018; $1.55 per hour from August 6, 2018 through August 10, 2019. |
Reconciliation of changes in benefit obligation, amounts included in AOCI and assumptions used | The funded status of the Company's post retirement health and life insurance benefits plan as of December 31, 2016 and 2015 and reconciliation with the amounts recognized in the consolidated balance sheets are provided below. Post Retirement Benefits 2016 2015 Change in benefit obligation: Benefit obligation at January 1 $ 9,006,000 $ 9,172,000 Interest cost 323,000 316,000 Unrecognized gain (320,000 ) (48,000 ) Benefits paid (342,000 ) (434,000 ) Benefit obligation at December 31 $ 8,667,000 $ 9,006,000 Plan Assets — — Amounts recorded in accumulated other comprehensive income: Prior service credit $ (7,098,000 ) $ (7,594,000 ) Net loss 3,464,000 3,939,000 Total $ (3,634,000 ) $ (3,655,000 ) Weighted-average assumptions as of December 31: Discount rate used to determine benefit obligation and net periodic benefit cost 3.8 % 4.1 % |
Components of postretirement expense | The components of expense for all of the Company's post retirement benefit plans for the years ended December 31: 2016 2015 2014 Pension expense: Multi-employer plan $ 710,000 $ 863,000 $ 719,000 Defined contribution plans 766,000 836,000 701,000 Total pension expense 1,476,000 1,699,000 1,420,000 Health and life insurance: Interest cost 323,000 316,000 277,000 Amortization of prior service costs (496,000 ) (496,000 ) (496,000 ) Amortization of net loss 155,000 169,000 47,000 Net periodic benefit cost (18,000 ) (11,000 ) (172,000 ) Total post retirement benefits expense $ 1,458,000 $ 1,688,000 $ 1,248,000 |
Effect of changing health care cost trend rate | The effect of changing the health care cost trend rate by one-percentage point for each future year is as follows: 1- Percentage Point Increase 1-Percentage Point Decrease Effect on total of service and interest cost components $ 43,000 $ (50,000 ) Effect on post retirement benefit obligation $ 941,000 $ (800,000 ) |
Estimated future benefit payments | The estimated future benefit payments of the health care plan are as follows: Year Postretirement Health Care Benefits Plan 2017 $ 1,018,000 2018 411,000 2019 432,000 2020 461,000 2021 485,000 2022-2026 2,515,000 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following tables detail amounts related to our derivatives designated as hedging instruments as of December 31, 2016 : Fair Values of Derivatives Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Prepaid expense other current assets — Accrued liabilities other $ 303,000 Notional contract values — $ 6,502,000 The Company had no derivatives designated as hedging instruments as of December 31, 2015 . |
Effect of derivative instruments on income | The following tables summarize the amount of unrealized / realized gain and loss recognized in Accumulated Comprehensive Income (AOCI) for the years ended December 31, 2016 , 2015 and 2014 : Derivatives in subtopic 815-20 Cash Flow Hedging Relationship Amount of Unrealized Gain or (Loss) Recognized in Accumulated other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (A) Amount of Realized Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income 2016 2015 2014 2016 2015 2014 Foreign exchange contracts $(289,000) — — Cost of goods sold $12,000 — — Sales, general and administrative expense $2,000 — — |
AOCI (Tables)
AOCI (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive income | Foreign Currency Derivative Activities (A) Post Retirement Benefit Plan Items (B) Total 2015: Balance at January 1, 2015 $ — $ 2,830,000 $ 2,830,000 Other comprehensive income before reclassifications — 48,000 48,000 Amounts reclassified from accumulated other comprehensive income — (306,000 ) (306,000 ) Income tax (expense) benefit — 73,000 73,000 Balance at December 31, 2015 $ — $ 2,645,000 $ 2,645,000 2016: Balance at January 1, 2016 $ — $ 2,645,000 $ 2,645,000 Other comprehensive income before reclassifications (289,000 ) 319,000 30,000 Amounts reclassified from accumulated other comprehensive income (14,000 ) (336,000 ) (350,000 ) Income tax (expense) benefit 103,000 (14,000 ) 89,000 Balance at December 31, 2016 $ (200,000 ) $ 2,614,000 $ 2,414,000 |
Quarterly Results of Operatio40
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results of operations | The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2016 , 2015 and 2014 . 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2016: Product sales $ 42,530,000 $ 36,813,000 $ 33,816,000 $ 33,465,000 $ 146,624,000 Tooling sales 2,938,000 2,193,000 7,520,000 15,607,000 28,258,000 Net sales 45,468,000 39,006,000 41,336,000 49,072,000 174,882,000 Gross margin 8,863,000 6,323,000 5,581,000 7,157,000 27,924,000 Operating income 4,442,000 2,307,000 1,657,000 3,139,000 11,545,000 Net income 2,890,000 1,460,000 1,029,000 2,032,000 7,411,000 Net income per common share: Basic (1) $ 0.38 $ 0.19 $ 0.13 $ 0.27 $ 0.97 Diluted (1) $ 0.38 $ 0.19 $ 0.13 $ 0.26 $ 0.97 2015: Product sales $ 47,854,000 $ 53,514,000 $ 44,243,000 $ 43,492,000 $ 189,103,000 Tooling sales 1,745,000 1,342,000 3,806,000 3,072,000 9,965,000 Net sales 49,599,000 54,856,000 48,049,000 46,564,000 199,068,000 Gross margin 9,025,000 10,982,000 8,311,000 7,934,000 36,252,000 Operating income 4,890,000 6,232,000 3,902,000 3,474,000 18,498,000 Net income 3,196,000 4,039,000 2,484,000 2,331,000 12,050,000 Net income per common share: Basic (1) $ 0.42 $ 0.53 $ 0.33 $ 0.31 $ 1.59 Diluted (1) $ 0.42 $ 0.53 $ 0.33 $ 0.31 $ 1.58 2014: Product sales $ 40,664,000 $ 43,317,000 $ 43,171,000 $ 42,592,000 $ 169,744,000 Tooling sales 411,000 2,807,000 420,000 1,822,000 5,460,000 Net sales 41,075,000 46,124,000 43,591,000 44,414,000 175,204,000 Gross margin 6,645,000 7,599,000 8,147,000 7,795,000 30,186,000 Operating income 3,116,000 3,873,000 3,704,000 3,954,000 14,647,000 Net income 2,120,000 2,520,000 2,428,000 2,566,000 9,634,000 Net income per common share: Basic (1) $ 0.29 $ 0.34 $ 0.32 $ 0.34 $ 1.28 Diluted (1) $ 0.28 $ 0.33 $ 0.32 $ 0.34 $ 1.28 (1) Sum of the quarters may not sum to total year due to rounding. |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2016SegmentProduction_Facility | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of production facilities operated | Production_Facility | 5 |
Number of reportable segments | Segment | 1 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2016USD ($)Bank | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2001USD ($) | Mar. 20, 2015USD ($) | Dec. 31, 2013USD ($) | |
Business acquisition: | ||||||
Net foreign translation and transaction activity | $ 89,000 | $ 54,000 | $ (108,000) | |||
Goodwill | 2,403,000 | 2,403,000 | ||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||
Asset Impairment Charges | 0 | 0 | 0 | |||
Billed contracts receivable | 11,052,000 | 21,967,000 | ||||
Costs incurred on uncompleted contracts | 9,968,000 | 19,696,000 | ||||
Tooling in progress | $ 1,084,000 | 2,271,000 | ||||
Number of banks in which cash is held | Bank | 1 | |||||
Cash and cash equivalents | $ 28,285,000 | 8,943,000 | 2,312,000 | $ 2,266,000 | ||
Allowance for doubtful accounts | 0 | 40,000 | ||||
Allowance for chargebacks | 309,000 | 523,000 | ||||
Allowance for slow moving and obsolete inventory | 770,000 | 863,000 | ||||
Self-insurance reserve | 1,139,000 | 1,074,000 | ||||
Postemployment Benefits Liability | 8,667,000 | 9,006,000 | ||||
Research and development expense | $ 965,000 | 719,000 | $ 475,000 | |||
CPI [Member] | ||||||
Business acquisition: | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 650,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 12,474,000 | |||||
Goodwill, acquired during period | $ 1,306,000 | |||||
Airshield Corporation | ||||||
Business acquisition: | ||||||
Goodwill, acquired during period | $ 1,097,000 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant & Equipment: | |||
Depreciation expense | $ 6,217,000 | $ 5,955,000 | $ 5,009,000 |
Capitalized interest expense | 0 | 2,000 | |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
Land improvements | |||
Property, Plant & Equipment: | |||
Useful life | 20 years | ||
Buildings and improvements | Minimum | |||
Property, Plant & Equipment: | |||
Useful life | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant & Equipment: | |||
Useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant & Equipment: | |||
Useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant & Equipment: | |||
Useful life | 15 years | ||
Tools, dies and patterns | Minimum | |||
Property, Plant & Equipment: | |||
Useful life | 3 years | ||
Tools, dies and patterns | Maximum | |||
Property, Plant & Equipment: | |||
Useful life | 5 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Concentration Risk (Details) | 12 Months Ended | ||
Dec. 31, 2016CustomerEmployee | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales | Customer concentration risk | |||
Concentration risk: | |||
Number of major customers, Sales | Customer | 4 | ||
Concentration risk percentage | 78.00% | 82.00% | 87.00% |
Sales | Geographic concentration risk | Mexico and Canada | |||
Concentration risk: | |||
Concentration risk percentage | 32.00% | 35.00% | 30.00% |
Accounts receivable | Customer concentration risk | |||
Concentration risk: | |||
Concentration Risk, Accounts Receivable, Number of major customers | Customer | 4 | ||
Concentration risk percentage | 75.00% | 88.00% | |
Number of employees, geographic area | Labor force concentration risk | |||
Concentration risk: | |||
Concentration risk, number of employees | 1,247 | ||
Number of employees, geographic area | Labor force concentration risk | United States | |||
Concentration risk: | |||
Concentration risk, number of employees | 568 | ||
Number of employees, geographic area | Labor force concentration risk | Mexico | |||
Concentration risk: | |||
Concentration risk, number of employees | 679 | ||
Workforce subject to collective bargaining arrangements | Unionized employees concentration risk | |||
Concentration risk: | |||
Concentration risk, number of employees | 1,247 | ||
Workforce subject to collective bargaining arrangements | Unionized employees concentration risk | International Association of Machinists and Aerospace Workers | |||
Concentration risk: | |||
Concentration risk, number of employees | 246 | ||
Workforce subject to collective bargaining arrangements | Unionized employees concentration risk | Sindicato de Jorneleros y Obreros | |||
Concentration risk: | |||
Concentration risk, number of employees | 583 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 0 | 0 | 3,000 | 0 | 0 | 3,000 | |||||||||
Net income | $ 2,032,000 | $ 1,029,000 | $ 1,460,000 | $ 2,890,000 | $ 2,331,000 | $ 2,484,000 | $ 4,039,000 | $ 3,196,000 | $ 2,566,000 | $ 2,428,000 | $ 2,520,000 | $ 2,120,000 | $ 7,411,000 | $ 12,050,000 | $ 9,634,000 |
Weighted average common shares outstanding — basic | 7,621,000 | 7,583,000 | 7,508,000 | ||||||||||||
Effect of dilutive securities (in shares) | 40,000 | 40,000 | 45,000 | ||||||||||||
Weighted average common and potentially issuable common shares outstanding — diluted (in shares) | 7,661,000 | 7,623,000 | 7,553,000 | ||||||||||||
Basic net income per common share (USD per share) | $ 0.27 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.34 | $ 0.32 | $ 0.34 | $ 0.29 | $ 0.97 | $ 1.59 | $ 1.28 |
Diluted net income per common share (USD per share) | $ 0.26 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.34 | $ 0.32 | $ 0.33 | $ 0.28 | $ 0.97 | $ 1.58 | $ 1.28 |
Major Customers (Details)
Major Customers (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Major customers: | |||||||||||||||
Total product sales | $ 33,465,000 | $ 33,816,000 | $ 36,813,000 | $ 42,530,000 | $ 43,492,000 | $ 44,243,000 | $ 53,514,000 | $ 47,854,000 | $ 42,592,000 | $ 43,171,000 | $ 43,317,000 | $ 40,664,000 | $ 146,624,000 | $ 189,103,000 | $ 169,744,000 |
Total tooling sales | 15,607,000 | 7,520,000 | 2,193,000 | 2,938,000 | 3,072,000 | 3,806,000 | 1,342,000 | 1,745,000 | 1,822,000 | 420,000 | 2,807,000 | 411,000 | 28,258,000 | 9,965,000 | 5,460,000 |
Total net sales | $ 49,072,000 | $ 41,336,000 | $ 39,006,000 | $ 45,468,000 | $ 46,564,000 | $ 48,049,000 | $ 54,856,000 | $ 49,599,000 | $ 44,414,000 | $ 43,591,000 | $ 46,124,000 | $ 41,075,000 | 174,882,000 | 199,068,000 | 175,204,000 |
Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 146,624,000 | 189,103,000 | 169,744,000 | ||||||||||||
Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 28,258,000 | 9,965,000 | 5,460,000 | ||||||||||||
Navistar | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 41,750,000 | 56,415,000 | 51,330,000 | ||||||||||||
Navistar | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 39,756,000 | 50,169,000 | 51,254,000 | ||||||||||||
Navistar | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 1,994,000 | 6,246,000 | 76,000 | ||||||||||||
Volvo [Member] | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 49,970,000 | 55,125,000 | 48,859,000 | ||||||||||||
Volvo [Member] | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 29,520,000 | 53,525,000 | 46,340,000 | ||||||||||||
Volvo [Member] | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 20,450,000 | 1,600,000 | 2,519,000 | ||||||||||||
Paccar | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 27,716,000 | 34,430,000 | 36,128,000 | ||||||||||||
Paccar | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 24,235,000 | 33,452,000 | 35,602,000 | ||||||||||||
Paccar | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 3,481,000 | 978,000 | 526,000 | ||||||||||||
Yamaha [Member] | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 16,205,000 | 16,766,000 | 16,911,000 | ||||||||||||
Yamaha [Member] | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 16,205,000 | 16,766,000 | 16,911,000 | ||||||||||||
Yamaha [Member] | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 0 | 0 | 0 | ||||||||||||
Other customers | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 39,241,000 | 36,332,000 | 21,976,000 | ||||||||||||
Other customers | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 36,908,000 | 35,191,000 | 19,637,000 | ||||||||||||
Other customers | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | $ 2,333,000 | $ 1,141,000 | $ 2,339,000 |
Foreign Operations (Details)
Foreign Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign operations: | |||||||||||||||
Total sales | $ 49,072,000 | $ 41,336,000 | $ 39,006,000 | $ 45,468,000 | $ 46,564,000 | $ 48,049,000 | $ 54,856,000 | $ 49,599,000 | $ 44,414,000 | $ 43,591,000 | $ 46,124,000 | $ 41,075,000 | $ 174,882,000 | $ 199,068,000 | $ 175,204,000 |
Property, plant and equipment — net | 70,601,000 | 74,103,000 | 70,601,000 | 74,103,000 | |||||||||||
United States | |||||||||||||||
Foreign operations: | |||||||||||||||
Total sales | 119,018,000 | 129,651,000 | 123,317,000 | ||||||||||||
Property, plant and equipment — net | 42,547,000 | 44,191,000 | 42,547,000 | 44,191,000 | |||||||||||
Mexico | |||||||||||||||
Foreign operations: | |||||||||||||||
Total sales | 51,389,000 | 63,586,000 | 47,772,000 | ||||||||||||
Property, plant and equipment — net | $ 28,054,000 | $ 29,912,000 | 28,054,000 | 29,912,000 | |||||||||||
Canada | |||||||||||||||
Foreign operations: | |||||||||||||||
Total sales | 4,475,000 | 5,831,000 | 4,115,000 | ||||||||||||
CoreComposites de Mexico, S. de R.L. de C.V. | |||||||||||||||
Foreign operations: | |||||||||||||||
Sales | $ 49,708,000 | $ 69,235,000 | $ 61,313,000 | ||||||||||||
Expenses as a percentage of revenues | 22.00% | 19.00% | 22.00% |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant & Equipment: | |||
Property, plant and equipment | $ 140,658,000 | $ 137,996,000 | |
Accumulated depreciation | (70,057,000) | (63,893,000) | |
Property, plant and equipment — net | 70,601,000 | 74,103,000 | |
Commitments for capital expenditures in progress recorded on balance sheet | 616,000 | 1,102,000 | |
Capital Expenditures Incurred but Not yet Paid | 316,000 | 464,000 | $ 557,000 |
Capitalized interest expense | 0 | 2,000 | |
Land and land improvements | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 5,958,000 | 5,958,000 | |
Buildings | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 42,593,000 | 41,417,000 | |
Machinery and equipment | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 89,692,000 | 87,482,000 | |
Tools, dies and patterns | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 808,000 | 808,000 | |
Additions in progress | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | $ 1,607,000 | $ 2,331,000 |
Business Combination (Details)
Business Combination (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Mar. 20, 2015 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill | $ 0 | |
CPI [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Business Acquisitions, Gross Purchase Price | 15,000,000 | |
Business Combination, Reduction in Purchase Price | 488,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1,615,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 675,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 171,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 12,474,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Goodwill | 1,306,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 650,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (2,277,000) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (102,000) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 14,512,000 | |
CPI [Member] | Selling, General and Administrative Expenses [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 303,000 |
Goodwill and Intangible Asset50
Goodwill and Intangible Asset Disclosure (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 20, 2015 | |
Goodwill [Roll Forward] | ||||
Beginning Goodwill | $ 2,403,000 | |||
Additions | $ 0 | |||
Goodwill, Impairment Loss | 0 | $ 0 | $ 0 | |
Ending Goodwill | $ 2,403,000 | $ 2,403,000 |
Goodwill and Intangible Asset51
Goodwill and Intangible Asset Disclosure Intangible Assets by Major Asset Class (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 650,000 | $ 650,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (87,000) | (37,000) | |
Finite-Lived Intangible Assets, Net | 563,000 | 613,000 | |
Amortization of Intangible Assets | 50,000 | $ 37,000 | $ 0 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 50,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 50,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 50,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 50,000 | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Finite-Lived Intangible Assets, Gross | $ 400,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (70,000) | (30,000) | |
Finite-Lived Intangible Assets, Net | 330,000 | $ 370,000 | |
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 25 years | ||
Finite-Lived Intangible Assets, Gross | $ 250,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (17,000) | (7,000) | |
Finite-Lived Intangible Assets, Net | $ 233,000 | $ 243,000 |
Debt and Leases - Debt (Details
Debt and Leases - Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt: | ||
Long-term Debt | $ 9,750,000 | $ 13,464,000 |
Current portion of long-term debt | (3,000,000) | (3,714,000) |
Long-term debt | 6,750,000 | 9,750,000 |
Loans payable | Capex loan | ||
Debt: | ||
Long-term Debt | $ 0 | $ 714,000 |
Stated interest rate | 0.00% | 2.04% |
Repayment term | 7 years | |
Debt instrument, face amount | $ 12,000,000 | |
Debt Instrument, Description of Variable Rate Basis | 30 day LIBOR | |
Basis spread on variable rate | 1.60% | |
Loans payable | Term Loan [Member] | ||
Debt: | ||
Long-term Debt | $ 9,750,000 | $ 12,750,000 |
Stated interest rate | 2.55% | 2.24% |
Repayment term | 5 years | |
Debt instrument, face amount | $ 15,500,000 | |
Debt Instrument, Description of Variable Rate Basis | 30 day LIBOR | |
Basis spread on variable rate | 1.80% | |
Loans payable | Mexican Loan [Member] | ||
Debt: | ||
Debt instrument, face amount | $ 8,000,000 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR | |
Line of credit | ||
Debt: | ||
Percent of subsidiary stock not security for financing | 65.00% | |
Debt Instrument, Description of Variable Rate Basis | daily LIBOR | |
Line of credit | Revolving line of credit | ||
Debt: | ||
Long-term Debt | $ 0 | $ 0 |
Line of credit facility, maximum borrowing capacity | $ 18,000,000 | |
Basis spread on variable rate | 1.60% |
Debt and Leases Annual Maturiti
Debt and Leases Annual Maturities of Long-Term Debt (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,016 | $ 3,000,000 | |
2,017 | 3,000,000 | |
2,018 | 3,000,000 | |
2,019 | 750,000 | |
2,020 | 0 | |
Long-term Debt | $ 9,750,000 | $ 13,464,000 |
Debt and Leases - Interest Rate
Debt and Leases - Interest Rate Swaps (Details) - USD ($) | Mar. 31, 2009 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Interest rate swaps: | ||||
Interest expense for settlements related to swaps | $ 2,000 | $ 32,000 | $ 70,000 | |
ERROR in label resolution. | Cash flow hedging | Designated as hedging instrument | ||||
Interest rate swaps: | ||||
Derivative, fixed interest rate | 2.295% | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
Derivative, variable interest rate | 0.44% | |||
Description of reclassification of cash flow hedge gain (loss) | The pre-tax loss previously recognized in Accumulated Other Comprehensive Income (Loss), totaling $146,000 as of March 31, 2009, was being amortized as an increase to interest expense of $2,000 per month, or $1,000 net of tax, over the remaining term of the interest rate swap agreement. | |||
Pre-tax loss previously recognized in Accumulated Other Comprehensive Income | $ 146,000 | |||
Pre-tax loss previously recognized in Accumulated Other Comprehensive Income, monthly amortization amount | 2,000 | |||
Pre-tax loss previously recognized in Accumulated Other Comprehensive Income, monthly amortization amount, net of tax | $ 1,000 | |||
Derivatives not designated as hedging instruments, interest rate swap liabilities | $ 0 | $ 2,000 | ||
Interest income (loss) for mark-to-market adjustment of swap fair value | (2,000) | 35,000 | $ 66,000 | |
Derivative, Notional Amount | 0 | $ 714,000 | ||
Debt instrument, face amount | $ 12,000,000 |
Debt and Leases - Leases (Detai
Debt and Leases - Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases: | |||
Rental expense | $ 808,000 | $ 696,000 | $ 767,000 |
Future minimum operating lease payments: | |||
2,016 | 482,000 | ||
2,017 | 328,000 | ||
2,018 | 192,000 | ||
Thereafter | 0 | ||
Total minimum lease payments | $ 1,002,000 | ||
Warehouse and distribution center | |||
Leases: | |||
Operating lease duration | 5 years |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock based compensation: | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 16,000 | $ 211,000 | $ 395,000 |
2006 Plan | |||
Stock based compensation: | |||
Number of shares authorized for grant | 3,000,000 | ||
Shares Remaining for Issuance | 1,448,079 | ||
Employee Stock Option [Member] | |||
Stock based compensation: | |||
Proceeds from exercise of stock options | $ 0 | 19,000 | 328,000 |
Intrinsic value of options exercised in period | 0 | 26,000 | $ 915,000 |
Tax benefit received as a result of disqualified dispositions | 9,000 | 311,000 | |
Excess tax benefit related to disqualified dispositions recorded as a credit to income tax expense | 6,000 | 84,000 | |
Excess tax benefit related to disqualified dispositions recorded as a credit to APIC | $ 3,000 | $ 227,000 | |
Options, outstanding: | |||
Options, outstanding, beginning of year (in shares) | 0 | 3,000 | 227,750 |
Options, outstanding, grants in period (in shares) | 0 | 0 | (224,750) |
Options, outstanding, exercises in period (in shares) | 0 | (3,000) | 0 |
Options, outstanding, forfeitures in period (in shares) | 0 | 0 | 0 |
Options outstanding, end of year (in shares) | 0 | 0 | 3,000 |
Options, weighted average exercise price: | |||
Options, outstanding, weighted average exercise price, beginning of year (USD per share) | $ 0 | $ 6.40 | $ 3.57 |
Options, grants in period, weighted average exercise price (USD per share) | 0 | 0 | 3.53 |
Options, exercises in period, weighted average exercise price (USD per share) | 0 | 6.40 | 0 |
Options, forfeitures in period, weighted average exercise price (USD per share) | $ 0 | 0 | 0 |
Options, outstanding, weighted average exercise price, end of year (USD per share) | $ 0 | $ 6.40 | |
Options, additional disclosures: | |||
Options, exercisable (in shares) | 0 | 0 | 3,000 |
Options, exercisable, weighted average exercise price (USD per share) | $ 0 | $ 6.40 | |
Options, vested and expected to vest (in shares) | 0 | 0 | 3,000 |
Options, vested and expected to vest, weighted average exercise price (USD per share) | $ 0 | $ 0 | $ 6.40 |
Restricted stock, weighted average grant date fair value: | |||
Total unrecognized compensation expense | $ 0 | $ 0 | |
Employee Stock Option [Member] | 2006 Plan | |||
Stock based compensation: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term Until Expiration | 10 years | ||
Employee Stock Option [Member] | Vesting Period 1 [Member] | 2006 Plan | |||
Stock based compensation: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Employee Stock Option [Member] | Vesting Period 2 [Member] | 2006 Plan | |||
Stock based compensation: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 9 years 6 months | ||
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | |||
Stock based compensation: | |||
Stock based compensation expense | $ 0 | 0 | $ 0 |
Restricted Stock [Member] | |||
Stock based compensation: | |||
Employee Service Shared-based Compensation, Tax Benefit from Compensation Expense, Restricted Stock | $ 16,000 | $ 202,000 | $ 84,000 |
Restricted stock, nonvested: | |||
Restricted stock, nonvested, beginning of year (in shares) | 112,907 | 104,068 | 98,281 |
Restricted stock, grants in period (in shares) | 122,963 | 56,662 | 81,763 |
Restricted stock, vested in period (in shares) | (49,183) | (46,629) | (75,976) |
Restricted stock, forfeitures in period (in shares) | (28,426) | (1,194) | 0 |
Restricted stock, nonvested, end of year (in shares) | 158,261 | 112,907 | 104,068 |
Restricted stock, weighted average grant date fair value: | |||
Restricted stock, nonvested, weighted average grant date fair value, beginning of period (USD per share) | $ 16.86 | $ 10.79 | $ 8.91 |
Restricted stock, grants in period, weighted average grant date fair value (USD per share) | 12.59 | 24.39 | 12.04 |
Restricted stock, vested in period, weighted average grant date fair value (USD per share) | 14.16 | 11.82 | 10.03 |
Restricted stock, forfeitures in period, weighted average grant date fair value (USD per share) | 15.93 | 24.39 | 0 |
Restricted stock, nonvested, weighted average grant date fair value, end of period (USD per share) | $ 14.55 | $ 16.86 | $ 10.79 |
Total unrecognized compensation expense | $ 1,356,000 | $ 1,263,000 | |
Weighted average period for recognition of compensation expense | 1 year 6 months | ||
Shares Paid for Tax Withholding for Share Based Compensation | 10,590 | 12,141 | 21,797 |
Restricted Stock [Member] | 2006 Plan | |||
Stock based compensation: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | |||
Stock based compensation: | |||
Stock based compensation expense | $ 1,003,000 | $ 785,000 | $ 744,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal - US | $ 3,408,000 | $ 4,466,000 | $ 1,875,000 |
Federal - Foreign | 0 | 405,000 | 453,000 |
State and local | 2,000 | 18,000 | 42,000 |
Current income tax expense (benefit) | 3,410,000 | 4,889,000 | 2,370,000 |
Deferred: | |||
Federal | 490,000 | 1,143,000 | 2,423,000 |
Deferred Foreign Income Tax Expense (Benefit) | (86,000) | 27,000 | (29,000) |
State and local | 22,000 | 59,000 | 127,000 |
Deferred income tax expense (benefit) | 426,000 | 1,229,000 | 2,521,000 |
Total income taxes | 3,836,000 | 6,118,000 | 4,891,000 |
Reconciliation of income tax provision: | |||
Provision at federal statutory rate - US | 3,823,000 | 6,177,000 | 4,938,000 |
Effect of foreign taxes | 34,000 | (84,000) | (115,000) |
Disqualified stock options | 0 | (5,000) | (84,000) |
State and local tax expense, net of federal benefit | 24,000 | 76,000 | 170,000 |
Other | (45,000) | (46,000) | (18,000) |
Components of deferred tax assets (liabilities): | |||
Accrued liabilities | 938,000 | 820,000 | |
Accounts receivable | 110,000 | 202,000 | |
Inventory | 588,000 | 698,000 | |
Other, net | (255,000) | (122,000) | |
Total current asset | 1,381,000 | 1,598,000 | |
Property, plant, and equipment | (5,274,000) | (4,844,000) | |
Post retirement benefits | 3,212,000 | 3,350,000 | |
Other, net | (311,000) | (758,000) | |
Deferred Tax Liabilities, Net, Noncurrent | (2,373,000) | (2,252,000) | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 16,000 | 211,000 | $ 395,000 |
Unrecorded deferred tax liabilities, undistributed foreign earnings | 6,965,000 | ||
Operating Loss Carryforwards | 321,000 | 0 | |
Operating Loss Carryforwards, Valuation Allowance | 0 | 0 | |
Unrecognized Tax Benefits | 0 | 0 | |
Deferred Tax Liabilities, Net | $ 992,000 | $ 654,000 |
Post Retirement Benefits - Mult
Post Retirement Benefits - Multiemployer Plans (Details) | 12 Months Ended | ||||||
Aug. 10, 2019$ / h | Aug. 05, 2018$ / h | Aug. 06, 2017$ / h | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Multiemployer plans: | |||||||
Certified zone status, percent funded limit for red status | 65.00% | ||||||
Certified zone status, percent funded limit for yellow status | 80.00% | ||||||
Certified zone status, percent funded limit for green status | 80.00% | ||||||
Multi-employer plan contributions | $ | [1] | $ 710,000 | $ 863,000 | $ 719,000 | |||
Multiemployer plan, postretirement benefit | |||||||
Multiemployer plans: | |||||||
Maximum percentage of total contribution | 5.00% | ||||||
Multiemployer plans, collective-bargaining arrangement, maximum hours of work per week for employer contribution | 40 hours | ||||||
Forecast | Multiemployer plan, postretirement benefit | |||||||
Multiemployer plans: | |||||||
Multiemployer plans, collective-bargaining arrangement, rate of employer contribution | $ / h | 1.55 | 1.50 | 1.45 | ||||
[1] | The plan re-certified its zone status after using the amortization provisions of the Code. The Company's contributions to the plan did not represent more than 5% of total contributions to the plan as indicated in the plan's most recently available annual report for the plan year ended December 31, 2015. Under the terms of the collective-bargaining agreement, the Company is required to make contributions to the plan for each hour worked up to a maximum of 40 hours per person, per week, at the following rates: $1.45 per hour from August 8, 2016 through August 6, 2017; $1.50 per hour from August 7, 2017 through August 5, 2018; $1.55 per hour from August 6, 2018 through August 10, 2019. |
Post Retirement Benefits - Chan
Post Retirement Benefits - Change in Benefit Obligation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in benefit obligation: | |||
Interest cost | $ 323,000 | $ 316,000 | $ 277,000 |
Postretirement benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 9,006,000 | 9,172,000 | |
Interest cost | 323,000 | 316,000 | |
Defined Benefit Plan, Actuarial Gain (Loss) | 320,000 | (48,000) | |
Benefits paid | (342,000) | (434,000) | |
Benefit obligation at beginning of year | 8,667,000 | 9,006,000 | $ 9,172,000 |
Plan Assets | 0 | 0 | |
Amounts recorded in accumulated other comprehensive income: | |||
Prior service credit | (7,098,000) | (7,594,000) | |
Net loss | 3,464,000 | 3,939,000 | |
Total | $ (3,634,000) | $ (3,655,000) | |
Weighted-average assumptions: | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.80% | 4.10% |
Post Retirement Benefits - Post
Post Retirement Benefits - Post Retirement Benefits Expense (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension, health and life insurance expense: | ||||
Multi-employer plan contributions | [1] | $ 710,000 | $ 863,000 | $ 719,000 |
Defined contribution plan contributions | 766,000 | 836,000 | 701,000 | |
Total pension expense | 1,476,000 | 1,699,000 | 1,420,000 | |
Interest cost | 323,000 | 316,000 | 277,000 | |
Amortization of prior service costs | (496,000) | (496,000) | (496,000) | |
Amortization of net loss | 155,000 | 169,000 | 47,000 | |
Net periodic benefit cost | (18,000) | (11,000) | (172,000) | |
Total post retirement benefits expense | 1,458,000 | 1,688,000 | $ 1,248,000 | |
Postretirement benefits | ||||
Postretirement benefits: | ||||
Defined Benefit Plan, Actuarial Gain (Loss) | 320,000 | (48,000) | ||
Pension, health and life insurance expense: | ||||
Interest cost | $ 323,000 | $ 316,000 | ||
[1] | The plan re-certified its zone status after using the amortization provisions of the Code. The Company's contributions to the plan did not represent more than 5% of total contributions to the plan as indicated in the plan's most recently available annual report for the plan year ended December 31, 2015. Under the terms of the collective-bargaining agreement, the Company is required to make contributions to the plan for each hour worked up to a maximum of 40 hours per person, per week, at the following rates: $1.45 per hour from August 8, 2016 through August 6, 2017; $1.50 per hour from August 7, 2017 through August 5, 2018; $1.55 per hour from August 6, 2018 through August 10, 2019. |
Post Retirement Benefits (Detai
Post Retirement Benefits (Details) | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)Plan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2010USD ($) | |
Postretirement benefits: | |||||
Number of 401k plans | Plan | 3 | ||||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year: | |||||
Interest cost | $ 323,000 | $ 316,000 | $ 277,000 | ||
Postretirement benefits | |||||
Postretirement benefits: | |||||
Decrease in post retirement obligations | $ 10,282,000 | ||||
Amortization period | 20 years | ||||
Change in net periodic benefit cost due to plan amendment | 496,000 | 496,000 | $ 496,000 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 320,000 | (48,000) | |||
Prior service credit not yet recognized | 3,634,000 | 3,655,000 | |||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year: | |||||
Interest cost | $ 323,000 | $ 316,000 | |||
Assumed health care cost trend rates: | |||||
Health care cost trend rate assumed for next fiscal year | 7.00% | 6.00% | |||
Ultimate health care cost trend rate | 5.00% | 5.00% | |||
Effect of changing the health care cost trend rate by one-percentage point for each future year: | |||||
Effect on total of service and interest cost components, 1 - percentage point increase | $ 43,000 | ||||
Effect on total of service and interest cost components, 1 - percentage point decrease | (50,000) | ||||
Effect on post retirement benefit obligation, 1 - percentage point increase | 941,000 | ||||
Effect on post retirement benefit obligation, 1 - percentage point decrease | $ (800,000) | ||||
Forecast | Postretirement benefits | |||||
Postretirement benefits: | |||||
Change in net periodic benefit cost due to plan amendment | $ 496,000 | ||||
Defined Benefit Plan, Actuarial Gain (Loss) | 49,000 | ||||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year: | |||||
Amortization of prior service credit, net of tax | (496,000) | ||||
Amortization of loss, net of tax | (149,000) | ||||
Interest cost | $ 298,000 |
Post Retirement Benefits - Futu
Post Retirement Benefits - Future Benefit Payments (Details) - Postretirement benefits | Dec. 31, 2016USD ($) |
Postretirement benefits: | |
2,015 | $ 1,018,000 |
2,016 | 411,000 |
2,017 | 432,000 |
2,018 | 461,000 |
2,019 | 485,000 |
2020 - 2024 | $ 2,515,000 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of financial instruments: | |||
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 0 | $ 0 | $ 0 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (289,000) | 0 | 0 |
Cost of Sales [Member] | |||
Fair value of financial instruments: | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 12,000 | 0 | 0 |
Selling, General and Administrative Expenses [Member] | |||
Fair value of financial instruments: | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 2,000 | $ 0 | $ 0 |
Assets [Member] | |||
Fair value of financial instruments: | |||
Description of Location of Foreign Currency Derivatives on Balance Sheet | Prepaid expense other current assets | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 0 | ||
Derivative, Notional Amount | $ 0 | ||
Liability [Member] | |||
Fair value of financial instruments: | |||
Description of Location of Foreign Currency Derivatives on Balance Sheet | Accrued liabilities other | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 303,000 | ||
Derivative, Notional Amount | $ 6,502,000 |
AOCI (Details)
AOCI (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 2,645,000 | $ 2,830,000 |
Other comprehensive income before reclassifications | 30,000 | 48,000 |
Amounts reclassified from accumulated other comprehensive income, before tax | (350,000) | (306,000) |
Other Comprehensive Income (Loss), Tax | 89,000 | 73,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,414,000 | 2,645,000 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Other comprehensive income before reclassifications | (289,000) | 0 |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | (14,000) | 0 |
Other Comprehensive Income (Loss), Tax | 103,000 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (200,000) | 0 |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,645,000 | 2,830,000 |
Other comprehensive income before reclassifications | 319,000 | 48,000 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (336,000) | (306,000) |
Other Comprehensive Income (Loss), Tax | (14,000) | 73,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 2,614,000 | $ 2,645,000 |
Quarterly Results of Operatio65
Quarterly Results of Operations (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly results of operations: | |||||||||||||||
Total product sales | $ 33,465,000 | $ 33,816,000 | $ 36,813,000 | $ 42,530,000 | $ 43,492,000 | $ 44,243,000 | $ 53,514,000 | $ 47,854,000 | $ 42,592,000 | $ 43,171,000 | $ 43,317,000 | $ 40,664,000 | $ 146,624,000 | $ 189,103,000 | $ 169,744,000 |
Total tooling sales | 15,607,000 | 7,520,000 | 2,193,000 | 2,938,000 | 3,072,000 | 3,806,000 | 1,342,000 | 1,745,000 | 1,822,000 | 420,000 | 2,807,000 | 411,000 | 28,258,000 | 9,965,000 | 5,460,000 |
Total net sales | 49,072,000 | 41,336,000 | 39,006,000 | 45,468,000 | 46,564,000 | 48,049,000 | 54,856,000 | 49,599,000 | 44,414,000 | 43,591,000 | 46,124,000 | 41,075,000 | 174,882,000 | 199,068,000 | 175,204,000 |
Gross margin | 7,157,000 | 5,581,000 | 6,323,000 | 8,863,000 | 7,934,000 | 8,311,000 | 10,982,000 | 9,025,000 | 7,795,000 | 8,147,000 | 7,599,000 | 6,645,000 | 27,924,000 | 36,252,000 | 30,186,000 |
Income before interest and taxes | 3,139,000 | 1,657,000 | 2,307,000 | 4,442,000 | 3,474,000 | 3,902,000 | 6,232,000 | 4,890,000 | 3,954,000 | 3,704,000 | 3,873,000 | 3,116,000 | 11,545,000 | 18,498,000 | 14,647,000 |
Net income | $ 2,032,000 | $ 1,029,000 | $ 1,460,000 | $ 2,890,000 | $ 2,331,000 | $ 2,484,000 | $ 4,039,000 | $ 3,196,000 | $ 2,566,000 | $ 2,428,000 | $ 2,520,000 | $ 2,120,000 | $ 7,411,000 | $ 12,050,000 | $ 9,634,000 |
Net income per common share: | |||||||||||||||
Basic (USD per share) | $ 0.27 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.34 | $ 0.32 | $ 0.34 | $ 0.29 | $ 0.97 | $ 1.59 | $ 1.28 |
Diluted (USD per share) | $ 0.26 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.34 | $ 0.32 | $ 0.33 | $ 0.28 | $ 0.97 | $ 1.58 | $ 1.28 |
Schedule II (Details)
Schedule II (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 32,000 | $ 289,000 | $ 141,000 | |
(Recovered)/Charged to Costs and Expenses | (23,000) | (167,000) | 197,000 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | 9,000 | 90,000 | 49,000 |
Balance at End of Year | 0 | 32,000 | 289,000 | |
Allowance for Chargebacks [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 523,000 | 813,000 | 973,000 | |
(Recovered)/Charged to Costs and Expenses | 444,000 | 473,000 | 717,000 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | 658,000 | 763,000 | 877,000 |
Balance at End of Year | $ 309,000 | $ 523,000 | $ 813,000 | |
[1] | (A) Amount represents uncollectible accounts written off. |