Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 05, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
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 | $ 102,083,825 | ||
Entity Common Stock, Shares Outstanding | 7,866,809 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales: | |||
Products | $ 148,623,000 | $ 146,624,000 | $ 189,103,000 |
Tooling | 13,050,000 | 28,258,000 | 9,965,000 |
Total net sales | 161,673,000 | 174,882,000 | 199,068,000 |
Total cost of sales | 136,993,000 | 146,958,000 | 162,816,000 |
Gross margin | 24,680,000 | 27,924,000 | 36,252,000 |
Total selling, general and administrative expense | 16,690,000 | 16,379,000 | 17,754,000 |
Operating income | 7,990,000 | 11,545,000 | 18,498,000 |
Interest expense | 245,000 | 298,000 | 330,000 |
Income before income taxes | 7,745,000 | 11,247,000 | 18,168,000 |
Current | 2,630,000 | 3,410,000 | 4,889,000 |
Deferred | (344,000) | 426,000 | 1,229,000 |
Total income taxes | 2,286,000 | 3,836,000 | 6,118,000 |
Net income | $ 5,459,000 | $ 7,411,000 | $ 12,050,000 |
Net income per common share: | |||
Basic (USD per share) | $ 0.71 | $ 0.97 | $ 1.59 |
Diluted (USD per share) | $ 0.70 | $ 0.97 | $ 1.58 |
Weighted average shares outstanding: | |||
Basic (in shares) | 7,690,000 | 7,621,000 | 7,583,000 |
Diluted (in shares) | 7,747,000 | 7,661,000 | 7,623,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 5,459,000 | $ 7,411,000 | $ 12,050,000 |
Other comprehensive income: | |||
Unrealized Gain on Foreign Currency Derivatives, before Tax | 5,000 | 303,000 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2,000) | 103,000 | 0 |
Interest rate swaps: | |||
Adjustment for amortization of losses included in net income | 0 | 5,000 | 21,000 |
Income tax expense | 0 | 2,000 | 8,000 |
Post retirement benefit plan adjustments: | |||
Net actuarial (loss) gain | (268,000) | 474,000 | 217,000 |
Prior service costs | (496,000) | (496,000) | (496,000) |
Income tax benefit (expense) | 255,000 | (12,000) | 81,000 |
Comprehensive income | $ 4,953,000 | $ 7,180,000 | $ 11,865,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Deferred Tax Liabilities, Net | $ 395,000 | $ 992,000 |
Current assets: | ||
Cash and cash equivalents | 26,780,000 | 28,285,000 |
Accounts receivable (less allowance for doubtful accounts: $0 at December 31, 2017 and 2016) | 19,846,000 | 19,551,000 |
Inventories: | ||
Finished goods | 2,948,000 | 1,876,000 |
Work in process | 2,061,000 | 1,401,000 |
Raw materials and components | 8,450,000 | 7,635,000 |
Total inventories, net | 13,459,000 | 10,912,000 |
Deferred tax asset-current portion | 843,000 | 1,381,000 |
Costs in Excess of Billings, Current | 1,917,000 | 0 |
Foreign sales tax receivable | 610,000 | 228,000 |
Prepaid expenses and other current assets | 1,388,000 | 912,000 |
Total current assets | 64,000,000 | 59,888,000 |
Property, plant and equipment, net | 68,631,000 | 70,601,000 |
Goodwill | 2,403,000 | 2,403,000 |
Intangible Assets, Net (Excluding Goodwill) | 513,000 | 563,000 |
Other Assets, Noncurrent | 2,076,000 | 0 |
Total Assets | 137,623,000 | 133,455,000 |
Current liabilities: | ||
Current portion of long-term debt | 3,000,000 | 3,000,000 |
Accounts payable | 13,850,000 | 8,534,000 |
Tooling in progress | 0 | 1,084,000 |
Current portion of post retirement benefits liability | 1,096,000 | 1,018,000 |
Accrued liabilities: | ||
Compensation and related benefits | 3,524,000 | 5,004,000 |
Taxes | 861,000 | 1,038,000 |
Other | 1,300,000 | 1,620,000 |
Total current liabilities | 23,631,000 | 21,298,000 |
Long-term debt | 3,750,000 | 6,750,000 |
Post retirement benefits liability | 7,954,000 | 7,649,000 |
Total Liabilities | 35,730,000 | 36,689,000 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Preferred stock — $0.01 par value, authorized shares - 10,000,000; no shares outstanding at December 31, 2017 and December 31, 2016 | 0 | 0 |
Common stock — $0.01 par value, authorized shares - 20,000,000; outstanding shares: 7,711,277 at December 31, 2017 and 7,635,093 at December 31, 2016 | 77,000 | 76,000 |
Paid-in capital | 31,465,000 | 30,134,000 |
Accumulated other comprehensive income, net of income taxes | 2,070,000 | 2,414,000 |
Treasury stock — at cost, 3,773,128 shares at December 31, 2017 and 3,753,595 shares at December 31, 2016 | (28,153,000) | (27,781,000) |
Retained earnings | 96,434,000 | 91,923,000 |
Total Stockholders’ Equity | 101,893,000 | 96,766,000 |
Total Liabilities and Stockholders’ Equity | $ 137,623,000 | $ 133,455,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Allowance for Doubtful Accounts Receivable, Current | $ 0 | $ 0 |
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 | 20,000,000 | 20,000,000 |
Common stock, shares outstanding | 7,711,277 | 7,635,093 |
Treasury Stock, Shares | 3,773,128 | 3,753,595 |
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, 2014 | $ 76,146,000 | $ 76,000 | $ 28,138,000 | $ 2,830,000 | $ (27,360,000) | $ 72,462,000 |
Balance (in shares) at Dec. 31, 2014 | 7,559,012 | |||||
Change in Stockholders' Equity: | ||||||
Net income | 12,050,000 | 12,050,000 | ||||
Dividends | 0 | |||||
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 | 7,411,000 | ||||
Dividends | 0 | |||||
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) | (200,000) | ||||
Change in interest rate swaps, net of tax | 3,000 | 3,000 | ||||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (16,000) | (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 |
Change in Stockholders' Equity: | ||||||
Net income | 5,459,000 | |||||
Dividends | (786,000) | (786,000) | ||||
Change in post retirement benefits, net of tax | (509,000) | (509,000) | ||||
Change in Unrealized Gain (Loss) on Foreign Currency Fair Value Hedging Instruments | 3,000 | 3,000 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | 162,000 | (162,000) | |||
Purchase of treasury stock (in shares) | (19,533) | |||||
Purchase of treasury stock | (372,000) | (372,000) | ||||
Restricted stock issued (in shares) | 95,717 | |||||
Restricted stock issued | 1,000 | $ 1,000 | ||||
Share-based compensation | 1,331,000 | 1,331,000 | ||||
Balance (in shares) at Dec. 31, 2017 | 7,711,277 | |||||
Balance at Dec. 31, 2017 | $ 101,893,000 | $ 77,000 | $ 31,465,000 | $ 2,070,000 | $ (28,153,000) | $ 96,434,000 |
Consolidated Statement of Stoc7
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax effect of change in post retirement benefits | $ 255,000 | $ 12,000 | $ 81,000 |
Tax effect of change in interest rate swaps | 2,000 | $ 8,000 | |
Tax effect of change in Foreign Currency Translation Adjustment | $ 2,000 | $ 103,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 5,459,000 | $ 7,411,000 | $ 12,050,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,240,000 | 6,283,000 | 6,041,000 |
Deferred income taxes | (597,000) | 426,000 | 1,229,000 |
Mark-to-market of interest rate swap | 0 | 3,000 | (14,000) |
Share-based compensation | 1,331,000 | 1,003,000 | 785,000 |
Foreign Currency Transaction Gain (Loss), before Tax | (8,000) | 110,000 | 54,000 |
Change in operating assets and liabilities, net of effects of acquisition: | |||
Accounts receivable | (295,000) | 17,335,000 | (911,000) |
Inventories | (2,547,000) | 2,785,000 | (1,387,000) |
Income taxes receivable | 0 | 670,000 | 1,616,000 |
Prepaid and other assets | (2,934,000) | (266,000) | 1,395,000 |
Accounts payable | 5,347,000 | (4,689,000) | 2,095,000 |
Accrued and other liabilities | (4,719,000) | (4,422,000) | (3,786,000) |
Post retirement benefits liability | (381,000) | (360,000) | (444,000) |
Net cash provided by operating activities | 6,912,000 | 26,069,000 | 18,615,000 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (4,259,000) | (2,863,000) | (5,683,000) |
Business Combination, Purchase Price Allocated | 0 | 0 | (14,512,000) |
Net cash used in investing activities | (4,259,000) | (2,863,000) | (20,195,000) |
Cash flows from financing activities: | |||
Gross borrowings on revolving line of credit | 0 | 0 | (10,102,000) |
Gross borrowings on revolving line of credit | 0 | 0 | 7,334,000 |
Borrowing of Secured Debt Term Loan | 0 | 0 | 15,500,000 |
Repayments of Secured Debt Term Loan | (3,000,000) | (3,000,000) | (2,750,000) |
Payment of principal on capex loan | 0 | (714,000) | (1,714,000) |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 0 | (16,000) | 211,000 |
Payments related to the purchase of treasury stock | (372,000) | (134,000) | (287,000) |
Payments of Dividends | (786,000) | ||
Dividends | (786,000) | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 19,000 |
Net cash (used in) provided by financing activities | (4,158,000) | (3,864,000) | 8,211,000 |
Net change in cash and cash equivalents | (1,505,000) | 19,342,000 | 6,631,000 |
Cash and cash equivalents at beginning of year | 28,285,000 | 8,943,000 | 2,312,000 |
Cash and cash equivalents at end of year | 26,780,000 | 28,285,000 | 8,943,000 |
Cash paid for: | |||
Interest (net of amounts capitalized) | 247,000 | 289,000 | 279,000 |
Income taxes | 2,411,000 | 1,884,000 | 4,218,000 |
Non Cash: | |||
Fixed asset purchases in accounts payable | 278,000 | 316,000 | $ 464,000 |
Commitments For Capital Expenditures In Progress | $ 1,071,000 | $ 616,000 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
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. As of December 31, 2017, Core Molding Technologies operated five production facilities in Columbus, Ohio; Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Matamoros, Mexico, which produce reinforced plastic products. Effective as of January 16, 2018, the Company began operating two manufacturing facilities that were acquired as part of the Company’s acquisition of Horizon Plastics, which manufacturing facilities are located in Cobourg, Canada and Escobedo, Mexico, which produce structural foam and structural web molding. 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, 2017 | |
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, 2017 , the Company had a net asset related to tooling in progress of $ 1,917,000 , which represents approximately $8,724,000 of progress tooling billings and $ 10,641,000 of progress tooling expenses. 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. 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 $26,780,000 at December 31, 2017 and $28,285,000 at December 31, 2016 . 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, 2017 and December 31, 2016 , respectively. 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 $857,000 at December 31, 2017 and $309,000 at December 31, 2016 . 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 $624,000 at December 31, 2017 and $770,000 at December 31, 2016 . 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 $6,190,000 , $6,217,000 and $5,955,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company capitalized interest costs of approximately $7,000 and $0 for the years ended December 31, 2017 and 2016 , 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, 2017 , 2016 and 2015 . 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 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 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, 2017 , 2016 and 2015 . 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, 2017 and December 31, 2016 of $ 862,000 and $ 1,139,000 , 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 $ 9,050,000 at December 31, 2017 and $ 8,667,000 at December 31, 2016 . 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 five major customers comprised 84% , 85% and 85% of total sales in 2017 , 2016 and 2015 , respectively (see Note 4). Concentrations of accounts receivable balances with five customers accounted for 84% and 85% of accounts receivable at December 31, 2017 and 2016 , 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 36% , 32% and 35% of total sales for 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the Company employed a total of 1,304 employees, which consisted of 596 employees in its United States operations and 708 employees in its Mexican operations. Of these 1,304 employees, 248 are covered by a collective bargaining agreement with the International Association of Machinists and Aerospace Workers (“IAM”), which extends to August 10, 2019, and 611 are covered by a collective bargaining agreement with Sindicato de Jorneleros y Obreros, which extends to December 31, 2019. 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 $ 848,000 , $965,000 and $719,000 in 2017 , 2016 and 2015 . 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 $30,000 , $89,000 and $ 54,000 in 2017 , 2016 and 2015 , respectively. 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. The Company will adopt the new revenue standard in the first quarter of 2018 using the modified retrospective adoption method. We have determined that certain tooling programs with customers meet the criteria listed in ASU 2014-09 to recognize revenue over time. Prospectively, the Company expects to recognize revenue related transactions from certain tooling programs earlier than we have historically. In March 2017, FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). The amendments in this update require that an employer disaggregate the service cost component from the other components of net periodic cost (benefit) and report that component in the same line item as other compensation costs arising from services rendered by employees during the period. The other components of net periodic cost (benefit) are required to be presented in the statement of operations separately from the service cost component and outside of operating earnings. The amendment also allows for the service cost component of net periodic cost (benefit) to be eligible for capitalization when applicable. The guidance will be effective for the Company on January 1, 2018 and interim periods within that reporting period; early adoption permitted. The guidance on the income statement presentation of the components of net periodic cost (benefit) must be applied retrospectively, while the guidance limiting the capitalization of net periodic cost (benefit) in assets to the service cost component must be applied prospectively. 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. Upon adoption, the Company plans to update the presentation of net periodic cost (benefit) accordingly, noting all components of the Company's net periodic cost (benefit) will be presented outside of operating earnings, as the plan is not active.The estimated impact of adoption of this update will be a reclassification of all components of net periodic benefit from operating earnings to other income in the amount of $49,000 and $18,000 for the years ended December 31, 2017 and December 31, 2016, respectively. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The reclassifications should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The amendments also require certain disclosures about stranded tax effects. This ASU is effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and may be early adopted. The Company has elected to early adopt, which resulted in a reclassification of $162,000 from accumulated other comprehensive income to retained earnings at December 31, 2017. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Net income $ 5,459,000 $ 7,411,000 $ 12,050,000 Weighted average common shares outstanding — basic 7,690,000 7,621,000 7,583,000 Effect of dilutive securities 57,000 40,000 40,000 Weighted average common and potentially issuable common shares outstanding — diluted 7,747,000 7,661,000 7,623,000 Basic net income per common share $ 0.71 $ 0.97 $ 1.59 Diluted net income per common share $ 0.70 $ 0.97 $ 1.58 |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Revenue, Net [Abstract] | |
Major Customers | Major Customers The Company had five major customers during 2017 , Navistar, Volvo, PACCAR, Yamaha and BRP. 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, Yamaha or BRP 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: 2017 2016 2015 Navistar product sales $ 39,609,000 $ 39,756,000 $ 50,169,000 Navistar tooling sales $ 159,000 $ 1,994,000 $ 6,246,000 Total Navistar sales 39,768,000 41,750,000 56,415,000 Volvo product sales $ 27,627,000 $ 29,520,000 $ 53,525,000 Volvo tooling sales 8,089,000 20,450,000 1,600,000 Total Volvo sales 35,716,000 49,970,000 55,125,000 PACCAR product sales 26,481,000 24,235,000 33,452,000 PACCAR tooling sales 2,932,000 3,481,000 978,000 Total PACCAR sales 29,413,000 27,716,000 34,430,000 Yamaha product sales 17,137,000 16,205,000 16,766,000 Yamaha tooling sales — — — Total Yamaha sales 17,137,000 16,205,000 16,766,000 BRP product sales 13,024,000 10,870,000 7,082,000 BRP tooling sales 639,000 1,624,000 — Total BRP sales 13,663,000 12,494,000 7,082,000 Other product sales 24,745,000 26,038,000 28,109,000 Other tooling sales 1,231,000 709,000 1,141,000 Total other sales 25,976,000 26,747,000 29,250,000 Total product sales 148,623,000 146,624,000 189,103,000 Total tooling sales 13,050,000 28,258,000 9,965,000 Total sales $ 161,673,000 $ 174,882,000 $ 199,068,000 |
Foreign Operations
Foreign Operations | 12 Months Ended |
Dec. 31, 2017 | |
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 $50,727,000 , $49,708,000 and $69,235,000 in 2017 , 2016 and 2015 , 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 24% , 22% and 19% of sales produced at the Matamoros operations in 2017 , 2016 and 2015 , 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: 2017 2016 2015 United States $ 103,513,000 $ 119,018,000 $ 129,651,000 Mexico 52,496,000 51,389,000 63,586,000 Canada 5,664,000 4,475,000 5,831,000 Total $ 161,673,000 $ 174,882,000 $ 199,068,000 The following table provides information related to the location of property, plant and equipment, net, as of December 31: 2017 2016 United States $ 40,594,000 $ 42,547,000 Mexico 28,037,000 28,054,000 Total $ 68,631,000 $ 70,601,000 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | 6. Property, Plant, and Equipment Property, plant, and equipment consisted of the following at December 31: 2017 2016 Land and land improvements $ 6,009,000 $ 5,958,000 Buildings 42,769,000 42,593,000 Machinery and equipment 92,218,000 89,692,000 Tools, dies, and patterns 808,000 808,000 Additions in progress 3,045,000 1,607,000 Total 144,849,000 140,658,000 Less accumulated depreciation (76,218,000 ) (70,057,000 ) Property, plant, and equipment - net $ 68,631,000 $ 70,601,000 Additions in progress at December 31, 2017 and 2016 relate to building improvements and equipment purchases that were not yet completed at year end. At December 31, 2017 , commitments for capital expenditures in progress were $ 1,071,000 and included $278,000 recorded on the balance sheet in accounts payable. 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. The Company capitalized interest of $7,000 and $0 for the years ended December 31, 2017 and 2016 , respectively. |
Business Combination (Notes)
Business Combination (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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, 2017 consisted of the following: Balance at December 31, 2016 $ 2,403,000 Additions — Impairment — Balance at December 31, 2017 $ 2,403,000 Intangible assets at December 31, 2017 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 $ (27,000 ) $ 223,000 Customer Relationships 10 Years 400,000 (110,000 ) 290,000 $ 650,000 $ (137,000 ) $ 513,000 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 The aggregate intangible asset amortization expense was $50,000 for the years ended December 31, 2017 and 2016, respectively, and expects amortization expense to be $50,000 each year for the next five years. The Company incurred $ 37,000 amortization expense for the year ended December 31, 2015. |
Debt and Leases
Debt and Leases | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Leases | Debt and Leases Long-term debt consists of the following at: December 31, December 31, Term loan payable to a bank, interest at a variable rate (3.36% and 2.55% at December 31, 2017 and 2016, respectively) with monthly payments of interest and principal through March 2020. 6,750,000 9,750,000 Revolving Line of Credit — — Total 6,750,000 9,750,000 Less current portion (3,000,000 ) (3,000,000 ) Long-term debt $ 3,750,000 $ 6,750,000 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 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 $18,000,000 variable rate revolving line of credit; (3) a term loan in an original amount of $15,500,000 ; and (4) a Letter of Credit Commitment of up to $250,000 , of which $175,000 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. On August 4, 2017, the Company and its wholly owned subsidiary, Corecomposites de Mexico, S. de R.L. de C.V., entered into a twelfth amendment (the "Twelfth Amendment") to the Credit Agreement. Pursuant to the terms of the Twelfth Amendment, the parties agreed to modify certain terms of the Credit Agreement. These modifications included amending the definition of Consolidated Fixed Charges to include only Capital Distributions made in an aggregate amount in excess of Two Million Dollars ($2,000,000) and amending the restricted payment covenant provisions. 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. Revolving Line of Credit At December 31, 2017 , 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: 2018 $ 3,000,000 2019 3,000,000 2020 750,000 Thereafter — Total $ 6,750,000 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, 2017 , 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 that expired in October 2017. The Company is currently negotiating a renewal to this lease. Total rental expense was $ 825,000 , $ 808,000 and $ 696,000 for 2017 , 2016 and 2015 , 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: 2018 $ 368,000 2019 192,000 2020 — Thereafter — Total minimum lease payments $ 560,000 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
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 1,369,528 . Restricted stock granted under the 2006 Plan typically 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. Restricted Stock The Company grants shares of its common stock to certain directors, officers, and key employees 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: 2017 2016 2015 Number Wtd. Avg. Number of Shares Wtd. Avg. Grant Date Fair Value Number of Shares Wtd. Avg. Unvested - beginning of year 158,261 $ 14.55 112,907 $ 16.86 104,068 $ 10.79 Granted 84,643 19.17 122,963 12.59 56,662 24.39 Vested (95,717 ) 15.25 (49,183 ) 14.16 (46,629 ) 11.82 Forfeited (6,092 ) 17.93 (28,426 ) 15.93 (1,194 ) 24.39 Unvested - end of year 141,095 $ 16.79 158,261 $ 14.55 112,907 $ 16.86 At December 31, 2017 and 2016 , there was $ 1,601,000 and $ 1,356,000 , 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, 2017 , 2016 and 2015 was $ 1,331,000 , $ 1,003,000 and $ 785,000 , respectively, and is recorded as selling, general and administrative expense. During first quarter 2017, the Company adopted Accounting Standards Update 2016-09, Compensation - Stock Compensation. The new standard provided for changes to accounting for stock compensation, including excess tax benefits and tax deficiencies related to share based payment awards to be recognized in income tax expense in the reporting period in which they occurred. Tax benefits and tax deficiencies before this update were recorded as an increase or decrease in additional paid in capital. Tax benefits and deficiencies for the years ended December 31 2017, 2016 and 2015 were a benefit of $126,000 , a deficiency of $16,000 and a benefit of $ 202,000 , respectively. During 2017 , 2016 and 2015 , employees surrendered 19,533 , 10,590 and 12,141 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of the provision for income taxes are as follows: 2017 2016 2015 Current: Federal - US $ 1,993,000 $ 3,408,000 $ 4,466,000 Federal - Foreign 613,000 — 405,000 State and local 24,000 2,000 18,000 2,630,000 3,410,000 4,889,000 Deferred: Federal (407,000 ) 490,000 1,143,000 Federal- Foreign 52,000 (86,000 ) 27,000 State and local 11,000 22,000 59,000 (344,000 ) 426,000 1,229,000 Provision for income taxes $ 2,286,000 $ 3,836,000 $ 6,118,000 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: 2017 2016 2015 Provision at federal statutory rate - US $ 2,634,000 $ 3,823,000 $ 6,177,000 Adjustments for US tax law changes (185,000 ) — — Excess tax benefit — equity transactions (126,000 ) — — Effect of foreign taxes (58,000 ) 34,000 (84,000 ) State and local tax expense 35,000 24,000 76,000 Other (14,000 ) (45,000 ) (51,000 ) Provision for income taxes $ 2,286,000 $ 3,836,000 $ 6,118,000 The Tax Cuts and Jobs Act (“the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, creates new taxes on certain foreign sourced earnings, provides for acceleration of business asset expensing, and reduces the amount of executive pay that may qualify as a tax deduction, among other changes. FASB ASC 740 requires the recognition of the effects of tax law changes in the period of enactment. However, due to the complexities of the new tax legislation, the SEC has issued SAB 118 which allows for the recognition of provisional amounts during a measurement period. The Company’s accounting for the income tax effects of the Act is generally complete. Specifically, the charge recorded related to the re-measurement of our deferred tax balance was a net benefit of $484,000 , which we believe to be complete and accurate. The Act's one-time transition tax calculation is complex, and as such our accounting for this item is provisional at this time. We have made a reasonable estimate of the effects of the one-time transition tax, and the provisional amount recorded related to the transition tax, net of estimated foreign tax credits, was a charge of $299,000 . A more thorough analysis of the Company’s overall foreign earnings and profits, including expense allocations and foreign tax credit calculations, will be completed to finalize this calculation, which is expected to occur no later than the second quarter of 2018. During first quarter 2017, the Company adopted Accounting Standards Update 2016-09, Compensation - Stock Compensation. The new standard provided for changes to accounting for stock compensation, including recording excess tax benefits and tax deficiencies related to share based payment awards in income tax expense in the reporting period in which they occurred. Tax benefits and tax deficiencies before this update were recorded in additional paid in capital. Tax benefits and deficiencies for the years ended December 31 2017, 2016 and 2015 were a benefit of $126,000 , a deficiency of $16,000 and a benefit of $211,000 , respectively. 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 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 recorded a valuation allowance on the deferred tax assets as of December 31, 2017 and 2016 . Deferred tax assets consist of the following at December 31: 2017 2016 Current asset (liability): Accrued liabilities $ 608,000 $ 938,000 Accounts receivable 156,000 110,000 Inventory 371,000 588,000 Other, net (292,000 ) (255,000 ) Total current asset 843,000 1,381,000 Non-current asset (liability): Property, plant, and equipment (3,345,000 ) (5,274,000 ) Post retirement benefits 2,060,000 3,212,000 Other, net 47,000 (311,000 ) Total non-current liability (1,238,000 ) (2,373,000 ) Total deferred tax liability - net $ (395,000 ) $ (992,000 ) At December 31, 2017 and 2016 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 2014, and no longer subject to Mexican income tax examinations by Mexican authorities for the years before 2012. |
Post Retirement Benefits
Post Retirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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, 2017 and 2016 is outlined in the table below. The most recent Pension Protection Act ("PPA") zone status available in 2017 and 2016 is for the plan’s year-end at December 31, 2016 , and December 31, 2015 , 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 2017 2016 2017 2016 IAM National Pension Fund / National Pension Plan (A) 51-6031295 - 002 Green as of 12/31/16 Green as of 12/31/15 No $647,000 $710,000 No 8/10/2019 Total Contributions: $647,000 $710,000 (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, 2016. 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 2017 , 2016 and 2015 , and will result in net periodic benefit cost reductions of approximately $496,000 in 2018 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, 2017 and 2016 and reconciliation with the amounts recognized in the consolidated balance sheets are provided below. Post Retirement Benefits 2017 2016 Change in benefit obligation: Benefit obligation at January 1 $ 8,667,000 $ 9,006,000 Interest cost 298,000 323,000 Unrecognized loss (gain) 417,000 (320,000 ) Benefits paid (332,000 ) (342,000 ) Benefit obligation at December 31 $ 9,050,000 $ 8,667,000 Plan Assets — — Amounts recorded in accumulated other comprehensive income: Prior service credit $ (6,602,000 ) $ (7,098,000 ) Net loss 3,733,000 3,464,000 Total $ (2,869,000 ) $ (3,634,000 ) Weighted-average assumptions as of December 31: Discount rate used to determine benefit obligation and net periodic benefit cost 3.4 % 3.8 % The components of expense for all of the Company's post retirement benefit plans for the years ended December 31: 2017 2016 2015 Pension expense: Multi-employer plan $ 647,000 $ 710,000 $ 863,000 Defined contribution plans 752,000 766,000 836,000 Total pension expense 1,399,000 1,476,000 1,699,000 Health and life insurance: Interest cost 298,000 323,000 316,000 Amortization of prior service costs (496,000 ) (496,000 ) (496,000 ) Amortization of net loss 149,000 155,000 169,000 Net periodic benefit cost (49,000 ) (18,000 ) (11,000 ) Total post retirement benefits expense $ 1,350,000 $ 1,458,000 $ 1,688,000 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, 2017 , the Company recognized a net actuarial loss of $ 417,000 and for the year ended December 31, 2016 recognized a net actuarial gain of $ 320,000 , both of which were recorded in accumulated other comprehensive income. Amounts not yet recognized as a component of net periodic benefit costs at December 31, 2017 and 2016 were a net credit of $ 2,869,000 and $ 3,634,000 , respectively. The amount in accumulated other comprehensive income expected to be recognized as components of net periodic post retirement cost during 2018 consists of a prior service credit of $ 496,000 , and a net loss of $ 171,000 . In addition, 2018 interest expense related to post retirement healthcare is expected to be $ 277,000 , for a total post retirement healthcare net gain of approximately $ 48,000 in 2018 . The Company expects benefits paid in 2018 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 7% 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 $ 48,000 $ (40,000 ) Effect on post retirement benefit obligation $ 1,264,000 $ (1,068,000 ) The estimated future benefit payments of the health care plan for the next ten years are as follows: Year Postretirement Health Care Benefits Plan 2018 $ 1,096,000 2019 444,000 2020 474,000 2021 495,000 2022 518,000 2023-2027 2,456,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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, foreign currency derivatives, accounts receivable, and accounts payable. The carrying amount of these financial instruments approximated their fair value. During 2017, the Company had one Level 2 fair value measurement, which related to the Company’s foreign currency derivatives. 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, 2017 and 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, 2017 : 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 $ 298,000 Notional contract values — $ 8,766,000 As of December 31, 2017 , the Company had foreign exchange contracts related to the Mexican Peso with exchange rates ranging from 19.17 to 20.41 . 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 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, 2017 , 2016 and 2015 : 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 2017 2016 2015 2017 2016 2015 Foreign exchange contracts $517,000 (289,000) — Cost of goods sold $445,000 12,000 — Sales, general and administrative expense $67,000 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, 2017 or 2016. |
AOCI (Notes)
AOCI (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : Foreign Currency Derivative Activities (A) Post Retirement Benefit Plan Items (B) Total 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 2017: Balance at January 1, 2017 $ (200,000 ) $ 2,614,000 $ 2,414,000 Other comprehensive income before reclassifications 517,000 (417,000 ) 100,000 Amounts reclassified from accumulated other comprehensive income (512,000 ) (347,000 ) (859,000 ) Income tax (expense) benefit (2,000 ) 255,000 253,000 Adoption of Accounting Standards Update 2018-02 — 162,000 162,000 Balance at December 31, 2017 $ (197,000 ) $ 2,267,000 $ 2,070,000 (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. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 16. Subsequent Events On January 16, 2018, 1137925 B.C. Ltd. (the “Subsidiary”), a wholly owned subsidiary of Core Molding Technologies, Inc. (the “Company”), entered into an Asset Purchase Agreement (the “Agreement”) with Horizon Plastics International Inc., 1541689 Ontario Inc., 2551024 Ontario Inc. and Horizon Plastics de Mexico, S.A. de C.V. (collectively “Horizon Plastics”). Pursuant to the terms of the Agreement the Company acquired substantially all of the assets and assumed certain specified liabilities of Horizon Plastics in exchange for approximately $63,000,000 in cash, subject to a working capital closing adjustment. The initial accounting for the business combination was not complete at the time the financial statements were issued due to the timing of the acquisition and the filing of this Annual Report on Form 10-K. As a result, disclosures required under ASC 805-10-50, Business Combinations, cannot be made at this time. The acquisition was funded through a combination of available cash on hand and borrowings under the Amended and Restated Credit Agreement ("A/R Credit Agreement") entered in to on January 16, 2018 with KeyBank National Association as administrative agent and the various financial institutions party thereto as lenders (the "lenders"). Pursuant to the terms of the A/R Credit Agreement (i) the Company may borrow revolving loans in the aggregate principal amount of up to $40,000,000 (the “US Revolving Loans”) from the Lenders and term loans in the aggregate principal amount of up to $32,000,000 from the Lenders, (ii) the Subsidiary may borrow revolving loans in an aggregate principal amount of up to $10,000,000 from the Lenders (which revolving loans shall reduce the availability of the US Revolving Loans to the Company on a dollar-for-dollar basis) and term loans in an aggregate principal amount of up to $13,000,000 from the Lenders and (iii) the Company may increase the aggregate principal amount of the aforementioned loans by up to an additional $25,000,000 . On January 16, 2018, the Company entered into two interest rate swap agreements that became effective January 18, 2018 and continues through January 2023, one of which was designated as a cash flow hedge for $25,000,000 of the $32,000,000 term loan to the Company mentioned above and the other was designated as a cash flow hedge for $10,000,0000 of the $13,000,000 term loan to the Subsidiary mentioned above. Under these agreements, the Company will pay a fixed rate of 4.58% to the counterparty and receives daily LIBOR. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 . 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2017: Product sales $ 36,336,000 $ 36,794,000 $ 37,593,000 $ 37,900,000 $ 148,623,000 Tooling sales 410,000 10,574,000 901,000 1,165,000 13,050,000 Net sales 36,746,000 47,368,000 38,494,000 39,065,000 161,673,000 Gross margin 6,491,000 7,353,000 5,764,000 5,072,000 24,680,000 Operating income 2,566,000 3,185,000 1,406,000 833,000 7,990,000 Net income 1,688,000 2,162,000 855,000 754,000 5,459,000 Net income per common share: Basic (1) $ 0.22 $ 0.28 $ 0.11 $ 0.10 $ 0.71 Diluted (1) $ 0.22 $ 0.28 $ 0.11 $ 0.10 $ 0.70 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 (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, 2017 | |
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, 2017 , 2016 and 2015 . 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, 2017 $ — $ — $ — $ — $ — Year Ended December 31, 2016 $ 32,000 $ (23,000 ) $ — $ 9,000 $ — Year Ended December 31, 2015 $ 289,000 $ (167,000 ) $ — $ 90,000 $ 32,000 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, 2017 $ 309,000 $ 981,000 $ — $ 433,000 $ 857,000 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 (A) Amount represents uncollectible accounts written off. (B) Amount represents customer returns and deductions, discounts and price adjustments accepted. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , the Company had a net asset related to tooling in progress of $ 1,917,000 , which represents approximately $8,724,000 of progress tooling billings and $ 10,641,000 of progress tooling expenses. 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. |
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 $26,780,000 at December 31, 2017 and $28,285,000 at December 31, 2016 . |
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, 2017 and December 31, 2016 , respectively. 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 $857,000 at December 31, 2017 and $309,000 at December 31, 2016 . 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 $624,000 at December 31, 2017 and $770,000 at December 31, 2016 . |
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 $6,190,000 , $6,217,000 and $5,955,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company capitalized interest costs of approximately $7,000 and $0 for the years ended December 31, 2017 and 2016 , 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, 2017 , 2016 and 2015 . |
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 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 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, 2017 , 2016 and 2015 . |
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, 2017 and December 31, 2016 of $ 862,000 and $ 1,139,000 , 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 $ 9,050,000 at December 31, 2017 and $ 8,667,000 at December 31, 2016 . |
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. Further detail is located in Note 14. |
Concentration Risk | Concentration Risks - The Company has concentration risk related to significant amounts of sales and accounts receivable with certain customers. Sales to five major customers comprised 84% , 85% and 85% of total sales in 2017 , 2016 and 2015 , respectively (see Note 4). Concentrations of accounts receivable balances with five customers accounted for 84% and 85% of accounts receivable at December 31, 2017 and 2016 , 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 36% , 32% and 35% of total sales for 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the Company employed a total of 1,304 employees, which consisted of 596 employees in its United States operations and 708 employees in its Mexican operations. Of these 1,304 employees, 248 are covered by a collective bargaining agreement with the International Association of Machinists and Aerospace Workers (“IAM”), which extends to August 10, 2019, and 611 are covered by a collective bargaining agreement with Sindicato de Jorneleros y Obreros, which extends to December 31, 2019. |
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 $ 848,000 , $965,000 and $719,000 in 2017 , 2016 and 2015 . |
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 $30,000 , $89,000 and $ 54,000 in 2017 , 2016 and 2015 , respectively. |
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. The Company will adopt the new revenue standard in the first quarter of 2018 using the modified retrospective adoption method. We have determined that certain tooling programs with customers meet the criteria listed in ASU 2014-09 to recognize revenue over time. Prospectively, the Company expects to recognize revenue related transactions from certain tooling programs earlier than we have historically. In March 2017, FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). The amendments in this update require that an employer disaggregate the service cost component from the other components of net periodic cost (benefit) and report that component in the same line item as other compensation costs arising from services rendered by employees during the period. The other components of net periodic cost (benefit) are required to be presented in the statement of operations separately from the service cost component and outside of operating earnings. The amendment also allows for the service cost component of net periodic cost (benefit) to be eligible for capitalization when applicable. The guidance will be effective for the Company on January 1, 2018 and interim periods within that reporting period; early adoption permitted. The guidance on the income statement presentation of the components of net periodic cost (benefit) must be applied retrospectively, while the guidance limiting the capitalization of net periodic cost (benefit) in assets to the service cost component must be applied prospectively. 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. Upon adoption, the Company plans to update the presentation of net periodic cost (benefit) accordingly, noting all components of the Company's net periodic cost (benefit) will be presented outside of operating earnings, as the plan is not active.The estimated impact of adoption of this update will be a reclassification of all components of net periodic benefit from operating earnings to other income in the amount of $49,000 and $18,000 for the years ended December 31, 2017 and December 31, 2016, respectively. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The reclassifications should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The amendments also require certain disclosures about stranded tax effects. This ASU is effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and may be early adopted. The Company has elected to early adopt, which resulted in a reclassification of $162,000 from accumulated other comprehensive income to retained earnings at December 31, 2017. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 Land and land improvements $ 6,009,000 $ 5,958,000 Buildings 42,769,000 42,593,000 Machinery and equipment 92,218,000 89,692,000 Tools, dies, and patterns 808,000 808,000 Additions in progress 3,045,000 1,607,000 Total 144,849,000 140,658,000 Less accumulated depreciation (76,218,000 ) (70,057,000 ) Property, plant, and equipment - net $ 68,631,000 $ 70,601,000 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Net income $ 5,459,000 $ 7,411,000 $ 12,050,000 Weighted average common shares outstanding — basic 7,690,000 7,621,000 7,583,000 Effect of dilutive securities 57,000 40,000 40,000 Weighted average common and potentially issuable common shares outstanding — diluted 7,747,000 7,661,000 7,623,000 Basic net income per common share $ 0.71 $ 0.97 $ 1.59 Diluted net income per common share $ 0.70 $ 0.97 $ 1.58 |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue, Net [Abstract] | |
Major customers | The following table presents sales revenue for the above-mentioned customers for the years ended December 31: 2017 2016 2015 Navistar product sales $ 39,609,000 $ 39,756,000 $ 50,169,000 Navistar tooling sales $ 159,000 $ 1,994,000 $ 6,246,000 Total Navistar sales 39,768,000 41,750,000 56,415,000 Volvo product sales $ 27,627,000 $ 29,520,000 $ 53,525,000 Volvo tooling sales 8,089,000 20,450,000 1,600,000 Total Volvo sales 35,716,000 49,970,000 55,125,000 PACCAR product sales 26,481,000 24,235,000 33,452,000 PACCAR tooling sales 2,932,000 3,481,000 978,000 Total PACCAR sales 29,413,000 27,716,000 34,430,000 Yamaha product sales 17,137,000 16,205,000 16,766,000 Yamaha tooling sales — — — Total Yamaha sales 17,137,000 16,205,000 16,766,000 BRP product sales 13,024,000 10,870,000 7,082,000 BRP tooling sales 639,000 1,624,000 — Total BRP sales 13,663,000 12,494,000 7,082,000 Other product sales 24,745,000 26,038,000 28,109,000 Other tooling sales 1,231,000 709,000 1,141,000 Total other sales 25,976,000 26,747,000 29,250,000 Total product sales 148,623,000 146,624,000 189,103,000 Total tooling sales 13,050,000 28,258,000 9,965,000 Total sales $ 161,673,000 $ 174,882,000 $ 199,068,000 |
Foreign Operations (Tables)
Foreign Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 2015 United States $ 103,513,000 $ 119,018,000 $ 129,651,000 Mexico 52,496,000 51,389,000 63,586,000 Canada 5,664,000 4,475,000 5,831,000 Total $ 161,673,000 $ 174,882,000 $ 199,068,000 The following table provides information related to the location of property, plant and equipment, net, as of December 31: 2017 2016 United States $ 40,594,000 $ 42,547,000 Mexico 28,037,000 28,054,000 Total $ 68,631,000 $ 70,601,000 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 Land and land improvements $ 6,009,000 $ 5,958,000 Buildings 42,769,000 42,593,000 Machinery and equipment 92,218,000 89,692,000 Tools, dies, and patterns 808,000 808,000 Additions in progress 3,045,000 1,607,000 Total 144,849,000 140,658,000 Less accumulated depreciation (76,218,000 ) (70,057,000 ) Property, plant, and equipment - net $ 68,631,000 $ 70,601,000 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 Asset34
Goodwill and Intangible Asset Disclosure (Tables) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Goodwill [Table Text Block] | Goodwill activity for the year ended December 31, 2017 consisted of the following: Balance at December 31, 2016 $ 2,403,000 Additions — Impairment — Balance at December 31, 2017 $ 2,403,000 | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Intangible assets at December 31, 2017 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 $ (27,000 ) $ 223,000 Customer Relationships 10 Years 400,000 (110,000 ) 290,000 $ 650,000 $ (137,000 ) $ 513,000 | 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 |
Debt and Leases (Tables)
Debt and Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt consists of the following at: December 31, December 31, Term loan payable to a bank, interest at a variable rate (3.36% and 2.55% at December 31, 2017 and 2016, respectively) with monthly payments of interest and principal through March 2020. 6,750,000 9,750,000 Revolving Line of Credit — — Total 6,750,000 9,750,000 Less current portion (3,000,000 ) (3,000,000 ) Long-term debt $ 3,750,000 $ 6,750,000 |
Maturities of long-term debt | Annual maturities of long-term debt are as follows: 2018 $ 3,000,000 2019 3,000,000 2020 750,000 Thereafter — Total $ 6,750,000 |
Future minimum rental payments for operating leases | Future minimum operating lease payments are as follows: 2018 $ 368,000 2019 192,000 2020 — Thereafter — Total minimum lease payments $ 560,000 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 2015 Number Wtd. Avg. Number of Shares Wtd. Avg. Grant Date Fair Value Number of Shares Wtd. Avg. Unvested - beginning of year 158,261 $ 14.55 112,907 $ 16.86 104,068 $ 10.79 Granted 84,643 19.17 122,963 12.59 56,662 24.39 Vested (95,717 ) 15.25 (49,183 ) 14.16 (46,629 ) 11.82 Forfeited (6,092 ) 17.93 (28,426 ) 15.93 (1,194 ) 24.39 Unvested - end of year 141,095 $ 16.79 158,261 $ 14.55 112,907 $ 16.86 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of provision for income taxes | Components of the provision for income taxes are as follows: 2017 2016 2015 Current: Federal - US $ 1,993,000 $ 3,408,000 $ 4,466,000 Federal - Foreign 613,000 — 405,000 State and local 24,000 2,000 18,000 2,630,000 3,410,000 4,889,000 Deferred: Federal (407,000 ) 490,000 1,143,000 Federal- Foreign 52,000 (86,000 ) 27,000 State and local 11,000 22,000 59,000 (344,000 ) 426,000 1,229,000 Provision for income taxes $ 2,286,000 $ 3,836,000 $ 6,118,000 |
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: 2017 2016 2015 Provision at federal statutory rate - US $ 2,634,000 $ 3,823,000 $ 6,177,000 Adjustments for US tax law changes (185,000 ) — — Excess tax benefit — equity transactions (126,000 ) — — Effect of foreign taxes (58,000 ) 34,000 (84,000 ) State and local tax expense 35,000 24,000 76,000 Other (14,000 ) (45,000 ) (51,000 ) Provision for income taxes $ 2,286,000 $ 3,836,000 $ 6,118,000 |
Components of deferred tax assets | Deferred tax assets consist of the following at December 31: 2017 2016 Current asset (liability): Accrued liabilities $ 608,000 $ 938,000 Accounts receivable 156,000 110,000 Inventory 371,000 588,000 Other, net (292,000 ) (255,000 ) Total current asset 843,000 1,381,000 Non-current asset (liability): Property, plant, and equipment (3,345,000 ) (5,274,000 ) Post retirement benefits 2,060,000 3,212,000 Other, net 47,000 (311,000 ) Total non-current liability (1,238,000 ) (2,373,000 ) Total deferred tax liability - net $ (395,000 ) $ (992,000 ) |
Post Retirement Benefits (Table
Post Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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 2017 2016 2017 2016 IAM National Pension Fund / National Pension Plan (A) 51-6031295 - 002 Green as of 12/31/16 Green as of 12/31/15 No $647,000 $710,000 No 8/10/2019 Total Contributions: $647,000 $710,000 (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, 2016. 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, 2017 and 2016 and reconciliation with the amounts recognized in the consolidated balance sheets are provided below. Post Retirement Benefits 2017 2016 Change in benefit obligation: Benefit obligation at January 1 $ 8,667,000 $ 9,006,000 Interest cost 298,000 323,000 Unrecognized loss (gain) 417,000 (320,000 ) Benefits paid (332,000 ) (342,000 ) Benefit obligation at December 31 $ 9,050,000 $ 8,667,000 Plan Assets — — Amounts recorded in accumulated other comprehensive income: Prior service credit $ (6,602,000 ) $ (7,098,000 ) Net loss 3,733,000 3,464,000 Total $ (2,869,000 ) $ (3,634,000 ) Weighted-average assumptions as of December 31: Discount rate used to determine benefit obligation and net periodic benefit cost 3.4 % 3.8 % |
Components of postretirement expense | The components of expense for all of the Company's post retirement benefit plans for the years ended December 31: 2017 2016 2015 Pension expense: Multi-employer plan $ 647,000 $ 710,000 $ 863,000 Defined contribution plans 752,000 766,000 836,000 Total pension expense 1,399,000 1,476,000 1,699,000 Health and life insurance: Interest cost 298,000 323,000 316,000 Amortization of prior service costs (496,000 ) (496,000 ) (496,000 ) Amortization of net loss 149,000 155,000 169,000 Net periodic benefit cost (49,000 ) (18,000 ) (11,000 ) Total post retirement benefits expense $ 1,350,000 $ 1,458,000 $ 1,688,000 |
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 $ 48,000 $ (40,000 ) Effect on post retirement benefit obligation $ 1,264,000 $ (1,068,000 ) |
Estimated future benefit payments | The estimated future benefit payments of the health care plan for the next ten years are as follows: Year Postretirement Health Care Benefits Plan 2018 $ 1,096,000 2019 444,000 2020 474,000 2021 495,000 2022 518,000 2023-2027 2,456,000 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 : 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 $ 298,000 Notional contract values — $ 8,766,000 As of December 31, 2017 , the Company had foreign exchange contracts related to the Mexican Peso with exchange rates ranging from 19.17 to 20.41 . 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 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 . |
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, 2017 , 2016 and 2015 : 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 2017 2016 2015 2017 2016 2015 Foreign exchange contracts $517,000 (289,000) — Cost of goods sold $445,000 12,000 — Sales, general and administrative expense $67,000 2,000 — |
AOCI (Tables)
AOCI (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 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 2017: Balance at January 1, 2017 $ (200,000 ) $ 2,614,000 $ 2,414,000 Other comprehensive income before reclassifications 517,000 (417,000 ) 100,000 Amounts reclassified from accumulated other comprehensive income (512,000 ) (347,000 ) (859,000 ) Income tax (expense) benefit (2,000 ) 255,000 253,000 Adoption of Accounting Standards Update 2018-02 — 162,000 162,000 Balance at December 31, 2017 $ (197,000 ) $ 2,267,000 $ 2,070,000 |
Quarterly Results of Operatio41
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 . 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2017: Product sales $ 36,336,000 $ 36,794,000 $ 37,593,000 $ 37,900,000 $ 148,623,000 Tooling sales 410,000 10,574,000 901,000 1,165,000 13,050,000 Net sales 36,746,000 47,368,000 38,494,000 39,065,000 161,673,000 Gross margin 6,491,000 7,353,000 5,764,000 5,072,000 24,680,000 Operating income 2,566,000 3,185,000 1,406,000 833,000 7,990,000 Net income 1,688,000 2,162,000 855,000 754,000 5,459,000 Net income per common share: Basic (1) $ 0.22 $ 0.28 $ 0.11 $ 0.10 $ 0.71 Diluted (1) $ 0.22 $ 0.28 $ 0.11 $ 0.10 $ 0.70 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 (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, 2017SegmentProduction_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 Accoun43
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2017USD ($)Bank | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2001USD ($) | Mar. 20, 2015USD ($) | Dec. 31, 2014USD ($) | |
Business acquisition: | ||||||
Costs in Excess of Billings, Current | $ 1,917,000 | $ 0 | ||||
Net foreign translation and transaction activity | 30,000 | 89,000 | $ 54,000 | |||
Goodwill | 2,403,000 | 2,403,000 | ||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||
Asset Impairment Charges | 0 | 0 | 0 | |||
Billed contracts receivable | 8,724,000 | 11,052,000 | ||||
Costs incurred on uncompleted contracts | 10,641,000 | 9,968,000 | ||||
Tooling in progress | $ 0 | 1,084,000 | ||||
Number of banks in which cash is held | Bank | 1 | |||||
Cash and cash equivalents | $ 26,780,000 | 28,285,000 | 8,943,000 | $ 2,312,000 | ||
Allowance for Doubtful Accounts Receivable, Current | 0 | 0 | ||||
Allowance for chargebacks | 857,000 | 309,000 | ||||
Allowance for slow moving and obsolete inventory | 624,000 | 770,000 | ||||
Self-insurance reserve | 862,000 | 1,139,000 | ||||
Postemployment Benefits Liability | 9,050,000 | 8,667,000 | ||||
Research and development expense | $ 848,000 | 965,000 | $ 719,000 | |||
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 | |||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Business acquisition: | ||||||
Concentration Risk, Percentage | 84.00% | 85.00% |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant & Equipment: | |||
Depreciation expense | $ 6,190,000 | $ 6,217,000 | $ 5,955,000 |
Capitalized interest expense | 7,000 | 0 | |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Asset Impairment Charges | 0 | 0 | $ 0 |
Allowance for Doubtful Accounts Receivable, Current | $ 0 | $ 0 | |
Land improvements | |||
Property, Plant & Equipment: | |||
Useful life | 20 years | ||
Buildings and improvements | Minimum [Member] | |||
Property, Plant & Equipment: | |||
Useful life | 20 years | ||
Buildings and improvements | Maximum [Member] | |||
Property, Plant & Equipment: | |||
Useful life | 40 years | ||
Machinery and equipment | Minimum [Member] | |||
Property, Plant & Equipment: | |||
Useful life | 3 years | ||
Machinery and equipment | Maximum [Member] | |||
Property, Plant & Equipment: | |||
Useful life | 15 years | ||
Tools, dies and patterns | Minimum [Member] | |||
Property, Plant & Equipment: | |||
Useful life | 3 years | ||
Tools, dies and patterns | Maximum [Member] | |||
Property, Plant & Equipment: | |||
Useful life | 5 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Concentration Risk (Details) | 12 Months Ended | ||
Dec. 31, 2017EmployeeCustomer | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales | Customer Concentration Risk [Member] | |||
Concentration risk: | |||
Number of major customers, Sales | Customer | 5 | ||
Concentration Risk, Percentage | 84.00% | 85.00% | 85.00% |
Sales | Geographic concentration risk | Mexico and Canada | |||
Concentration risk: | |||
Concentration Risk, Percentage | 36.00% | 32.00% | 35.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration risk: | |||
Concentration Risk, Accounts Receivable, Number of major customers | Customer | 5 | ||
Concentration Risk, Percentage | 84.00% | 85.00% | |
Number of employees, geographic area | Labor force concentration risk | |||
Concentration risk: | |||
Concentration risk, number of employees | 1,304 | ||
Number of employees, geographic area | Labor force concentration risk | United States | |||
Concentration risk: | |||
Concentration risk, number of employees | 596 | ||
Number of employees, geographic area | Labor force concentration risk | Mexico | |||
Concentration risk: | |||
Concentration risk, number of employees | 708 | ||
Workforce subject to collective bargaining arrangements | Unionized employees concentration risk | |||
Concentration risk: | |||
Concentration risk, number of employees | 1,304 | ||
Workforce subject to collective bargaining arrangements | Unionized employees concentration risk | International Association of Machinists and Aerospace Workers | |||
Concentration risk: | |||
Concentration risk, number of employees | 248 | ||
Workforce subject to collective bargaining arrangements | Unionized employees concentration risk | Sindicato de Jorneleros y Obreros | |||
Concentration risk: | |||
Concentration risk, number of employees | 611 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $ 754,000 | $ 855,000 | $ 2,162,000 | $ 1,688,000 | $ 2,032,000 | $ 1,029,000 | $ 1,460,000 | $ 2,890,000 | $ 2,331,000 | $ 2,484,000 | $ 4,039,000 | $ 3,196,000 | $ 5,459,000 | $ 7,411,000 | $ 12,050,000 |
Weighted average common shares outstanding — basic | 7,690,000 | 7,621,000 | 7,583,000 | ||||||||||||
Effect of dilutive securities (in shares) | 57,000 | 40,000 | 40,000 | ||||||||||||
Weighted average common and potentially issuable common shares outstanding — diluted (in shares) | 7,747,000 | 7,661,000 | 7,623,000 | ||||||||||||
Basic net income per common share (USD per share) | $ 0.10 | $ 0.11 | $ 0.28 | $ 0.22 | $ 0.27 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.71 | $ 0.97 | $ 1.59 |
Diluted net income per common share (USD per share) | $ 0.10 | $ 0.11 | $ 0.28 | $ 0.22 | $ 0.26 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.70 | $ 0.97 | $ 1.58 |
Major Customers (Details)
Major Customers (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major customers: | |||||||||||||||
Total product sales | $ 37,900,000 | $ 37,593,000 | $ 36,794,000 | $ 36,336,000 | $ 33,465,000 | $ 33,816,000 | $ 36,813,000 | $ 42,530,000 | $ 43,492,000 | $ 44,243,000 | $ 53,514,000 | $ 47,854,000 | $ 148,623,000 | $ 146,624,000 | $ 189,103,000 |
Total tooling sales | 1,165,000 | 901,000 | 10,574,000 | 410,000 | 15,607,000 | 7,520,000 | 2,193,000 | 2,938,000 | 3,072,000 | 3,806,000 | 1,342,000 | 1,745,000 | 13,050,000 | 28,258,000 | 9,965,000 |
Total net sales | $ 39,065,000 | $ 38,494,000 | $ 47,368,000 | $ 36,746,000 | $ 49,072,000 | $ 41,336,000 | $ 39,006,000 | $ 45,468,000 | $ 46,564,000 | $ 48,049,000 | $ 54,856,000 | $ 49,599,000 | 161,673,000 | 174,882,000 | 199,068,000 |
Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 148,623,000 | 146,624,000 | 189,103,000 | ||||||||||||
Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 13,050,000 | 28,258,000 | 9,965,000 | ||||||||||||
Navistar | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 39,768,000 | 41,750,000 | 56,415,000 | ||||||||||||
Navistar | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 39,609,000 | 39,756,000 | 50,169,000 | ||||||||||||
Navistar | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 159,000 | 1,994,000 | 6,246,000 | ||||||||||||
Volvo [Member] | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 35,716,000 | 49,970,000 | 55,125,000 | ||||||||||||
Volvo [Member] | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 27,627,000 | 29,520,000 | 53,525,000 | ||||||||||||
Volvo [Member] | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 8,089,000 | 20,450,000 | 1,600,000 | ||||||||||||
Paccar | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 29,413,000 | 27,716,000 | 34,430,000 | ||||||||||||
Paccar | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 26,481,000 | 24,235,000 | 33,452,000 | ||||||||||||
Paccar | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 2,932,000 | 3,481,000 | 978,000 | ||||||||||||
Yamaha [Member] | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 17,137,000 | 16,205,000 | 16,766,000 | ||||||||||||
Yamaha [Member] | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 17,137,000 | 16,205,000 | 16,766,000 | ||||||||||||
Yamaha [Member] | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 0 | 0 | 0 | ||||||||||||
BRP [Member] | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 13,663,000 | 12,494,000 | 7,082,000 | ||||||||||||
BRP [Member] | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 13,024,000 | 10,870,000 | 7,082,000 | ||||||||||||
BRP [Member] | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 639,000 | 1,624,000 | 0 | ||||||||||||
Other customers | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 25,976,000 | 26,747,000 | 29,250,000 | ||||||||||||
Other customers | Product sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | 24,745,000 | 26,038,000 | 28,109,000 | ||||||||||||
Other customers | Tooling sales | |||||||||||||||
Major customers: | |||||||||||||||
Total net sales | $ 1,231,000 | $ 709,000 | $ 1,141,000 |
Foreign Operations (Details)
Foreign Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign operations: | |||||||||||||||
Total sales | $ 39,065,000 | $ 38,494,000 | $ 47,368,000 | $ 36,746,000 | $ 49,072,000 | $ 41,336,000 | $ 39,006,000 | $ 45,468,000 | $ 46,564,000 | $ 48,049,000 | $ 54,856,000 | $ 49,599,000 | $ 161,673,000 | $ 174,882,000 | $ 199,068,000 |
Property, plant and equipment — net | 68,631,000 | 70,601,000 | 68,631,000 | 70,601,000 | |||||||||||
United States | |||||||||||||||
Foreign operations: | |||||||||||||||
Total sales | 103,513,000 | 119,018,000 | 129,651,000 | ||||||||||||
Property, plant and equipment — net | 40,594,000 | 42,547,000 | 40,594,000 | 42,547,000 | |||||||||||
Mexico | |||||||||||||||
Foreign operations: | |||||||||||||||
Total sales | 52,496,000 | 51,389,000 | 63,586,000 | ||||||||||||
Property, plant and equipment — net | $ 28,037,000 | $ 28,054,000 | 28,037,000 | 28,054,000 | |||||||||||
Canada | |||||||||||||||
Foreign operations: | |||||||||||||||
Total sales | 5,664,000 | 4,475,000 | 5,831,000 | ||||||||||||
CoreComposites de Mexico, S. de R.L. de C.V. | |||||||||||||||
Foreign operations: | |||||||||||||||
Sales | $ 50,727,000 | $ 49,708,000 | $ 69,235,000 | ||||||||||||
Expenses as a percentage of revenues | 24.00% | 22.00% | 19.00% |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant & Equipment: | |||
Property, plant and equipment | $ 144,849,000 | $ 140,658,000 | |
Accumulated depreciation | (76,218,000) | (70,057,000) | |
Property, plant and equipment — net | 68,631,000 | 70,601,000 | |
Commitments for capital expenditures in progress recorded on balance sheet | 1,071,000 | 616,000 | |
Capital Expenditures Incurred but Not yet Paid | 278,000 | 316,000 | $ 464,000 |
Capitalized interest expense | 7,000 | 0 | |
Land and land improvements | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 6,009,000 | 5,958,000 | |
Buildings | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 42,769,000 | 42,593,000 | |
Machinery and equipment | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 92,218,000 | 89,692,000 | |
Tools, dies and patterns | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | 808,000 | 808,000 | |
Asset under Construction [Member] | |||
Property, Plant & Equipment: | |||
Property, plant and equipment | $ 3,045,000 | $ 1,607,000 |
Business Combination (Details)
Business Combination (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | 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 Asset51
Goodwill and Intangible Asset Disclosure (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | 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 Asset52
Goodwill and Intangible Asset Disclosure Intangible Assets by Major Asset Class (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 650,000 | $ 650,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (137,000) | (87,000) | |
Finite-Lived Intangible Assets, Net | 513,000 | 563,000 | |
Amortization of Intangible Assets | 50,000 | $ 50,000 | $ 37,000 |
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 | 10 years | |
Finite-Lived Intangible Assets, Gross | $ 400,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (110,000) | $ (70,000) | |
Finite-Lived Intangible Assets, Net | $ 290,000 | $ 330,000 | |
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 25 years | 25 years | |
Finite-Lived Intangible Assets, Gross | $ 250,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (27,000) | $ (17,000) | |
Finite-Lived Intangible Assets, Net | $ 223,000 | $ 233,000 |
Debt and Leases - Debt (Details
Debt and Leases - Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt: | ||
Long-term Debt | $ 6,750,000 | $ 9,750,000 |
Current portion of long-term debt | (3,000,000) | (3,000,000) |
Long-term debt | 3,750,000 | 6,750,000 |
Letter of Credit, Maximum | 250,000 | |
Letters of Credit Outstanding, Amount | $ 175,000 | |
Loans payable | Capex loan | ||
Debt: | ||
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 | $ 6,750,000 | $ 9,750,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | 2.55% |
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% | |
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, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 3,000,000 | |
2,019 | 3,000,000 | |
2,020 | 750,000 | |
Thereafter | 0 | |
Long-term Debt | $ 6,750,000 | $ 9,750,000 |
Debt and Leases - Leases (Detai
Debt and Leases - Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases: | |||
Rental expense | $ 825,000 | $ 808,000 | $ 696,000 |
Future minimum operating lease payments: | |||
2,018 | 368,000 | ||
2,019 | 192,000 | ||
2,020 | 0 | ||
Thereafter | 0 | ||
Total minimum lease payments | $ 560,000 | ||
Warehouse and distribution center | |||
Leases: | |||
Operating lease duration | 5 years |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock based compensation: | |||
Employee Service Shared-based Compensation, Tax Benefit from Compensation Expense, Restricted Stock | $ 126,000 | ||
2006 Plan | |||
Stock based compensation: | |||
Number of shares authorized for grant | 3,000,000 | ||
Shares Remaining for Issuance | 1,369,528 | ||
Restricted Stock [Member] | |||
Stock based compensation: | |||
Employee Service Shared-based Compensation, Tax Benefit from Compensation Expense, Restricted Stock | $ 202,000 | ||
Restricted stock, nonvested: | |||
Restricted stock, nonvested, beginning of year (in shares) | 158,261 | 112,907 | 104,068 |
Restricted stock, grants in period (in shares) | 84,643 | 122,963 | 56,662 |
Restricted stock, vested in period (in shares) | (95,717) | (49,183) | (46,629) |
Restricted stock, forfeitures in period (in shares) | (6,092) | (28,426) | (1,194) |
Restricted stock, nonvested, end of year (in shares) | 141,095 | 158,261 | 112,907 |
Restricted stock, weighted average grant date fair value: | |||
Restricted stock, nonvested, weighted average grant date fair value, beginning of period (USD per share) | $ 14.55 | $ 16.86 | $ 10.79 |
Restricted stock, grants in period, weighted average grant date fair value (USD per share) | 19.17 | 12.59 | 24.39 |
Restricted stock, vested in period, weighted average grant date fair value (USD per share) | 15.25 | 14.16 | 11.82 |
Restricted stock, forfeitures in period, weighted average grant date fair value (USD per share) | 17.93 | 15.93 | 24.39 |
Restricted stock, nonvested, weighted average grant date fair value, end of period (USD per share) | $ 16.79 | $ 14.55 | $ 16.86 |
Total unrecognized compensation expense | $ 1,601,000 | $ 1,356,000 | |
Weighted average period for recognition of compensation expense | 1 year 6 months | ||
Shares Paid for Tax Withholding for Share Based Compensation | 19,533 | 10,590 | 12,141 |
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 | $ 1,331,000 | $ 1,003,000 | $ 785,000 |
Equity [Member] | |||
Stock based compensation: | |||
Employee Service Shared-based Compensation, Tax Benefit from Compensation Expense, Restricted Stock | $ (16,000) | $ 211,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Shared-based Compensation, Tax Benefit from Compensation Expense, Restricted Stock | $ (126,000) | ||
Current: | |||
Federal - US | 1,993,000 | $ 3,408,000 | $ 4,466,000 |
Federal - Foreign | 613,000 | 0 | 405,000 |
State and local | 24,000 | 2,000 | 18,000 |
Current income tax expense (benefit) | 2,630,000 | 3,410,000 | 4,889,000 |
Deferred: | |||
Federal | (407,000) | 490,000 | 1,143,000 |
Deferred Foreign Income Tax Expense (Benefit) | 52,000 | (86,000) | 27,000 |
State and local | 11,000 | 22,000 | 59,000 |
Deferred income tax expense (benefit) | (344,000) | 426,000 | 1,229,000 |
Total income taxes | 2,286,000 | 3,836,000 | 6,118,000 |
Reconciliation of income tax provision: | |||
Provision at federal statutory rate - US | 2,634,000 | 3,823,000 | 6,177,000 |
Effect of foreign taxes | (58,000) | 34,000 | (84,000) |
State and local tax expense | 35,000 | 24,000 | 76,000 |
Other | (14,000) | (45,000) | (51,000) |
Components of deferred tax assets (liabilities): | |||
Accrued liabilities | 608,000 | 938,000 | |
Accounts receivable | 156,000 | 110,000 | |
Inventory | 371,000 | 588,000 | |
Other, net | (292,000) | (255,000) | |
Total current asset | 843,000 | 1,381,000 | |
Property, plant, and equipment | (3,345,000) | (5,274,000) | |
Post retirement benefits | 2,060,000 | 3,212,000 | |
Other, net | 47,000 | (311,000) | |
Deferred Tax Liabilities, Net, Noncurrent | (1,238,000) | (2,373,000) | |
Operating Loss Carryforwards | 0 | ||
Operating Loss Carryforwards, Valuation Allowance | 0 | ||
Unrecognized Tax Benefits | 0 | 0 | |
Deferred Tax Liabilities, Net | 395,000 | 992,000 | |
Deferred Tax Charge (Benefit) Adjustment | 484,000 | 0 | 0 |
Transitional Tax, net | 299,000 | ||
Deferred Tax Charge (Benefit) Adjustment, net | $ 185,000 | ||
Equity [Member] | |||
Employee Service Shared-based Compensation, Tax Benefit from Compensation Expense, Restricted Stock | $ 16,000 | $ (211,000) |
Post Retirement Benefits - Mult
Post Retirement Benefits - Multiemployer Plans (Details) | 12 Months Ended | ||||||
Aug. 10, 2019$ / h | Aug. 05, 2018$ / h | Dec. 31, 2017USD ($) | Aug. 06, 2017$ / h | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
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] | $ 647,000 | $ 710,000 | $ 863,000 | |||
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 | ||||||
Multiemployer plans, collective-bargaining arrangement, rate of employer contribution | 1.45 | ||||||
Forecast | Multiemployer plan, postretirement benefit | |||||||
Multiemployer plans: | |||||||
Multiemployer plans, collective-bargaining arrangement, rate of employer contribution | 1.55 | 1.50 | |||||
[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, 2016. 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | |||
Interest cost | $ 298,000 | $ 323,000 | $ 316,000 |
Postretirement benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 8,667,000 | 9,006,000 | |
Interest cost | 298,000 | 323,000 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (417,000) | (320,000) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | (2,869,000) | (3,634,000) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 332,000 | 342,000 | |
Benefit obligation at beginning of year | 9,050,000 | 8,667,000 | $ 9,006,000 |
Plan Assets | 0 | 0 | |
Amounts recorded in accumulated other comprehensive income: | |||
Prior service credit | (6,602,000) | (7,098,000) | |
Net loss | 3,733,000 | 3,464,000 | |
Total | $ (2,869,000) | $ (3,634,000) | |
Weighted-average assumptions: | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.40% | 3.80% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 7.00% | 7.00% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% |
Post Retirement Benefits - Post
Post Retirement Benefits - Post Retirement Benefits Expense (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Pension, health and life insurance expense: | ||||
Multi-employer plan contributions | [1] | $ 647,000 | $ 710,000 | $ 863,000 |
Defined contribution plan contributions | 752,000 | 766,000 | 836,000 | |
Total pension expense | 1,399,000 | 1,476,000 | 1,699,000 | |
Interest cost | 298,000 | 323,000 | 316,000 | |
Amortization of prior service costs | (496,000) | (496,000) | (496,000) | |
Amortization of net loss | 149,000 | 155,000 | 169,000 | |
Net periodic benefit cost | (49,000) | (18,000) | (11,000) | |
Total post retirement benefits expense | 1,350,000 | 1,458,000 | $ 1,688,000 | |
Postretirement benefits | ||||
Postretirement benefits: | ||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 417,000 | 320,000 | ||
Pension, health and life insurance expense: | ||||
Interest cost | $ 298,000 | $ 323,000 | ||
[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, 2016. 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; $1.55 per hour from August 6, 2018 through August 10, 2019. |
Post Retirement Benefits (Detai
Post Retirement Benefits (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Plan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2010USD ($) | |
Postretirement benefits: | |||||
Number of 401k plans | Plan | 3 | ||||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year: | |||||
Interest cost | $ 298,000 | $ 323,000 | $ 316,000 | ||
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, Benefit Obligation, Actuarial Gain (Loss) | (417,000) | (320,000) | |||
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 | (171,000) | ||||
Interest cost | $ 298,000 | $ 323,000 | |||
Assumed health care cost trend rates: | |||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 7.00% | 7.00% | |||
Defined Benefit Plan, 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 | $ 48,000 | ||||
Effect on total of service and interest cost components, 1 - percentage point decrease | (40,000) | ||||
Effect on post retirement benefit obligation, 1 - percentage point increase | 1,264,000 | ||||
Effect on post retirement benefit obligation, 1 - percentage point decrease | $ (1,068,000) | ||||
Forecast | Postretirement benefits | |||||
Postretirement benefits: | |||||
Change in net periodic benefit cost due to plan amendment | $ 496,000 | ||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 48,000 | ||||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year: | |||||
Interest cost | $ 277,000 |
Post Retirement Benefits - Futu
Post Retirement Benefits - Future Benefit Payments (Details) - Postretirement benefits | Dec. 31, 2017USD ($) |
Postretirement benefits: | |
2,018 | $ 1,096,000 |
2,019 | 444,000 |
2,020 | 474,000 |
2,021 | 495,000 |
2,022 | 518,000 |
2023 - 2027 | $ 2,456,000 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | 517,000 | (289,000) | 0 |
Cost of Sales [Member] | |||
Fair value of financial instruments: | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 445,000 | 12,000 | 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 | $ 67,000 | $ 2,000 | $ 0 |
Assets [Member] | |||
Fair value of financial instruments: | |||
Description of Location of Foreign Currency Derivatives on Balance Sheet | Prepaid expense other current assets | Prepaid expense other current assets | |
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 0 | $ 0 | |
Derivative, Notional Amount | $ 0 | $ 0 | |
Liability [Member] | |||
Fair value of financial instruments: | |||
Description of Location of Foreign Currency Derivatives on Balance Sheet | Accrued liabilities other | Accrued liabilities other | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 298,000 | $ 303,000 | |
Derivative, Notional Amount | $ 8,766,000 | $ 6,502,000 | |
Minimum [Member] | |||
Fair value of financial instruments: | |||
Derivative, Forward Exchange Rate | 19.17 | 20.01 | |
Maximum [Member] | |||
Fair value of financial instruments: | |||
Derivative, Forward Exchange Rate | 20.41 | 20.68 |
AOCI (Details)
AOCI (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 2,414,000 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,070,000 | $ 2,414,000 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | |
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 | (200,000) | 0 |
Other comprehensive income before reclassifications | 517,000 | (289,000) |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | (512,000) | 14,000 |
Other Comprehensive Income (Loss), Tax | (2,000) | 103,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (197,000) | (200,000) |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 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 | 2,614,000 | 2,645,000 |
Other comprehensive income before reclassifications | (417,000) | 319,000 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (347,000) | (336,000) |
Other Comprehensive Income (Loss), Tax | 255,000 | (14,000) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,267,000 | 2,614,000 |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,414,000 | 2,645,000 |
Other comprehensive income before reclassifications | 100,000 | 30,000 |
Amounts reclassified from accumulated other comprehensive income, before tax | (859,000) | (350,000) |
Other Comprehensive Income (Loss), Tax | 253,000 | 89,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,070,000 | $ 2,414,000 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 162,000 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 162,000 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Jan. 16, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Long-term Debt | $ 6,750,000 | $ 9,750,000 | |
Core Molding Technologies, Inc. [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | ||
Long-term Debt | 32,000,000 | ||
Horizon [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | ||
Business Acquisitions, Gross Purchase Price | 63,000,000 | ||
Long-term Debt | $ 13,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.58% | ||
Maximum [Member] | Horizon [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Long-term Debt | $ 25,000,000 |
Quarterly Results of Operatio66
Quarterly Results of Operations (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | 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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly results of operations: | |||||||||||||||
Total product sales | $ 37,900,000 | $ 37,593,000 | $ 36,794,000 | $ 36,336,000 | $ 33,465,000 | $ 33,816,000 | $ 36,813,000 | $ 42,530,000 | $ 43,492,000 | $ 44,243,000 | $ 53,514,000 | $ 47,854,000 | $ 148,623,000 | $ 146,624,000 | $ 189,103,000 |
Total tooling sales | 1,165,000 | 901,000 | 10,574,000 | 410,000 | 15,607,000 | 7,520,000 | 2,193,000 | 2,938,000 | 3,072,000 | 3,806,000 | 1,342,000 | 1,745,000 | 13,050,000 | 28,258,000 | 9,965,000 |
Total net sales | 39,065,000 | 38,494,000 | 47,368,000 | 36,746,000 | 49,072,000 | 41,336,000 | 39,006,000 | 45,468,000 | 46,564,000 | 48,049,000 | 54,856,000 | 49,599,000 | 161,673,000 | 174,882,000 | 199,068,000 |
Gross margin | 5,072,000 | 5,764,000 | 7,353,000 | 6,491,000 | 7,157,000 | 5,581,000 | 6,323,000 | 8,863,000 | 7,934,000 | 8,311,000 | 10,982,000 | 9,025,000 | 24,680,000 | 27,924,000 | 36,252,000 |
Income before interest and taxes | 833,000 | 1,406,000 | 3,185,000 | 2,566,000 | 3,139,000 | 1,657,000 | 2,307,000 | 4,442,000 | 3,474,000 | 3,902,000 | 6,232,000 | 4,890,000 | 7,990,000 | 11,545,000 | 18,498,000 |
Net income | $ 754,000 | $ 855,000 | $ 2,162,000 | $ 1,688,000 | $ 2,032,000 | $ 1,029,000 | $ 1,460,000 | $ 2,890,000 | $ 2,331,000 | $ 2,484,000 | $ 4,039,000 | $ 3,196,000 | $ 5,459,000 | $ 7,411,000 | $ 12,050,000 |
Net income per common share: | |||||||||||||||
Basic (USD per share) | $ 0.10 | $ 0.11 | $ 0.28 | $ 0.22 | $ 0.27 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.71 | $ 0.97 | $ 1.59 |
Diluted (USD per share) | $ 0.10 | $ 0.11 | $ 0.28 | $ 0.22 | $ 0.26 | $ 0.13 | $ 0.19 | $ 0.38 | $ 0.31 | $ 0.33 | $ 0.53 | $ 0.42 | $ 0.70 | $ 0.97 | $ 1.58 |
Schedule II (Details)
Schedule II (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 0 | $ 32,000 | $ 289,000 | |
(Recovered)/Charged to Costs and Expenses | 0 | (23,000) | (167,000) | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | 0 | 9,000 | 90,000 |
Balance at End of Year | 0 | 0 | 32,000 | |
Allowance for Chargebacks [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 309,000 | 523,000 | 813,000 | |
(Recovered)/Charged to Costs and Expenses | 981,000 | 444,000 | 473,000 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | 433,000 | 658,000 | 763,000 |
Balance at End of Year | $ 857,000 | $ 309,000 | $ 523,000 | |
[1] | (A) Amount represents uncollectible accounts written off. |