Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-12505 | |
Entity Registrant Name | CORE MOLDING TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-1481870 | |
Entity Address, Address Line One | 800 Manor Park Drive | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43228-0183 | |
City Area Code | 614 | |
Local Phone Number | 870-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Security Exchange Name | NYSEAMER | |
Trading Symbol | CMT | |
Entity Common Stock, Shares Outstanding (in shares) | 8,920,402 | |
Entity Central Index Key | 0001026655 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 101,606 | $ 81,025 | $ 290,933 | $ 234,315 |
Cost of sales | 88,303 | 74,610 | 250,015 | 201,446 |
Gross margin | 13,303 | 6,415 | 40,918 | 32,869 |
Selling, general and administrative expense | 8,671 | 8,808 | 25,889 | 23,744 |
Operating income (loss) | 4,632 | (2,393) | 15,029 | 9,125 |
Other income and expense | ||||
Loss from extinguishment of debt | 1,582 | 0 | 1,582 | 0 |
Interest expense | 511 | 563 | 1,511 | 1,725 |
Net periodic post-retirement benefit | (31) | (40) | (93) | (120) |
Total other expense | 2,062 | 523 | 3,000 | 1,605 |
Income (loss) before taxes | 2,570 | (2,916) | 12,029 | 7,520 |
Income tax expense | 1,251 | 396 | 4,658 | 3,290 |
Net income (loss) | $ 1,319 | $ (3,312) | $ 7,371 | $ 4,230 |
Net income (loss) per common share: | ||||
Basic (in USD per share) | $ 0.16 | $ (0.41) | $ 0.87 | $ 0.50 |
Diluted (in USD per share) | $ 0.16 | $ (0.41) | $ 0.87 | $ 0.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income (loss) | $ 1,319,000 | $ (3,312,000) | $ 7,371,000 | $ 4,230,000 | |
Post-retirement benefit plan adjustments: | |||||
Amortization of net actuarial loss | 43,000 | 43,000 | 130,000 | 130,000 | |
Amortization of prior service credits | (124,000) | (124,000) | (372,000) | (372,000) | |
Income tax benefit | 17,000 | 18,000 | 51,000 | 51,000 | |
Comprehensive income (loss) | 1,389,000 | (3,375,000) | 7,314,000 | $ 4,039,000 | |
Foreign currency hedging derivatives: | |||||
Other comprehensive income (loss): | |||||
Unrealized hedge loss | (626,000) | 0 | (626,000) | $ 0 | |
Income tax benefit | 159,000 | 0 | 159,000 | 0 | |
Interest rate swaps: | |||||
Other comprehensive income (loss): | |||||
Unrealized hedge loss | 767,000 | 0 | 767,000 | 0 | |
Income tax benefit | $ (166,000) | $ 0 | $ (166,000) | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 509,000 | $ 6,146,000 |
Accounts receivable, net | 54,297,000 | 35,261,000 |
Inventories, net | 26,854,000 | 25,129,000 |
Prepaid expenses and other current assets | 6,980,000 | 8,606,000 |
Total current assets | 88,640,000 | 75,142,000 |
Right of use asset | 4,317,000 | 5,577,000 |
Property, plant and equipment, net | 81,443,000 | 75,897,000 |
Goodwill | 17,376,000 | 17,376,000 |
Intangibles, net | 8,106,000 | 9,567,000 |
Other non-current assets | 2,602,000 | 3,133,000 |
Total Assets | 202,484,000 | 186,692,000 |
Current liabilities: | ||
Current portion of long-term debt | 1,205,000 | 3,943,000 |
Revolving debt | 4,052,000 | 4,424,000 |
Accounts payable | 34,277,000 | 22,695,000 |
Contract liability | 3,120,000 | 6,256,000 |
Compensation and related benefits | 8,187,000 | 7,532,000 |
Accrued other liabilities | 8,186,000 | 8,202,000 |
Total current liabilities | 59,027,000 | 53,052,000 |
Other non-current liabilities | 3,725,000 | 4,605,000 |
Long-term debt | 23,295,000 | 21,251,000 |
Post-retirement benefits liability | 7,765,000 | 7,689,000 |
Total Liabilities | 93,812,000 | 86,597,000 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,413,655 at September 30, 2022 and 8,235,740 at December 31, 2021 | 84,000 | 82,000 |
Paid-in capital | 39,718,000 | 38,013,000 |
Accumulated other comprehensive income, net of income taxes | $ 1,056,000 | $ 1,075,000 |
Treasury stock (in shares) | 3,866,451 | 3,818,166 |
Treasury stock - at cost, 3,866,451 shares at September 30, 2022 and 3,818,166 shares at December 31, 2021 | $ (29,099,000) | $ (28,617,000) |
Retained earnings | 96,913,000 | 89,542,000 |
Total Stockholders’ Equity | 108,672,000 | 100,095,000 |
Total Liabilities and Stockholders’ Equity | $ 202,484,000 | $ 186,692,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 8,413,655 | 8,235,740 |
Treasury stock (in shares) | 3,866,451 | 3,818,166 |
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 |
Beginning Balance (in shares) at Dec. 31, 2020 | 7,980,516 | |||||
Beginning Balance at Dec. 31, 2020 | $ 93,932,000 | $ 80,000 | $ 36,127,000 | $ 1,375,000 | $ (28,521,000) | $ 84,871,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 4,230,000 | 4,230,000 | ||||
Change in post retirement benefits, net of tax | (191,000) | (191,000) | ||||
Purchase of treasury stock | (96,000) | |||||
Restricted stock vested (in shares) | 110,000 | |||||
Restricted stock vested | 1,000 | $ 1,000 | ||||
Share-based compensation | 1,416,000 | 1,416,000 | ||||
Ending Balance (in shares) at Sep. 30, 2021 | 8,083,279 | |||||
Ending Balance at Sep. 30, 2021 | 99,292,000 | $ 81,000 | 37,543,000 | 1,184,000 | (28,617,000) | 89,101,000 |
Beginning Balance (in shares) at Jun. 30, 2021 | 8,040,748 | |||||
Beginning Balance at Jun. 30, 2021 | 102,103,000 | $ 80,000 | 36,931,000 | 1,247,000 | (28,568,000) | 92,413,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (3,312,000) | (3,312,000) | ||||
Change in post retirement benefits, net of tax | $ (63,000) | (63,000) | ||||
Purchase of treasury stock (in shares) | (3,363) | |||||
Purchase of treasury stock | $ (49,000) | |||||
Restricted stock vested (in shares) | 45,894 | |||||
Restricted stock vested | $ 1,000 | $ 1,000 | ||||
Share-based compensation | 612,000 | 612,000 | ||||
Ending Balance (in shares) at Sep. 30, 2021 | 8,083,279 | |||||
Ending Balance at Sep. 30, 2021 | $ 99,292,000 | $ 81,000 | 37,543,000 | 1,184,000 | $ (28,617,000) | 89,101,000 |
Beginning Balance (in shares) at Dec. 31, 2021 | 8,235,740 | 8,235,740 | ||||
Beginning Balance at Dec. 31, 2021 | $ 100,095,000 | $ 82,000 | 38,013,000 | 1,075,000 | (28,617,000) | 89,542,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 7,371,000 | 7,371,000 | ||||
Change in post retirement benefits, net of tax | $ (191,000) | (191,000) | ||||
Purchase of treasury stock (in shares) | (7,237) | |||||
Purchase of treasury stock | $ (482,000) | |||||
Restricted stock vested (in shares) | 226,201 | (48,286) | ||||
Restricted stock vested | $ 2,000 | $ 2,000 | ||||
Share-based compensation | $ 1,705,000 | 1,705,000 | ||||
Ending Balance (in shares) at Sep. 30, 2022 | 8,413,655 | 8,413,655 | ||||
Ending Balance at Sep. 30, 2022 | $ 108,672,000 | $ 84,000 | $ 39,718,000 | $ 1,056,000 | $ (29,099,000) | $ 96,913,000 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Income tax benefit | $ 17,000 | $ 18,000 | $ 51,000 | $ 51,000 | |||||
Common stock, shares outstanding (in shares) | 8,413,655 | 8,413,655 | 8,235,740 | ||||||
Stockholders' Equity Attributable to Parent | $ 108,672,000 | 99,292,000 | $ 108,672,000 | 99,292,000 | $ 106,622,000 | $ 100,095,000 | $ 102,103,000 | $ 93,932,000 | |
Net Income (Loss) Attributable to Parent | 1,319,000 | (3,312,000) | 7,371,000 | 4,230,000 | |||||
Change in post retirement benefits, net of tax | (64,000) | (63,000) | (191,000) | (191,000) | |||||
Gain (loss) on derivatives | (467,000) | (467,000) | |||||||
Restricted stock vested | 1,000 | 2,000 | 1,000 | ||||||
Share-based compensation | 623,000 | 612,000 | 1,705,000 | 1,416,000 | |||||
Interest rate swaps: | |||||||||
Income tax benefit | (166,000) | 0 | (166,000) | $ 0 | |||||
Foreign currency hedging derivatives: | |||||||||
Income tax benefit | 159,000 | $ 0 | $ 159,000 | $ 0 | |||||
Treasury Stock | |||||||||
Restricted stock vested (in shares) | 45,894 | (48,286) | |||||||
Purchase of treasury stock | $ (49,000) | $ (482,000) | (96,000) | ||||||
Stockholders' Equity Attributable to Parent | $ (29,099,000) | $ (28,617,000) | $ (29,099,000) | $ (28,617,000) | $ (29,099,000) | $ (28,617,000) | $ (28,568,000) | $ (28,521,000) | |
Common Stock [Member] | |||||||||
Restricted stock vested (in shares) | 226,201 | 110,000 | |||||||
Common stock, shares outstanding (in shares) | 8,413,655 | 8,083,279 | 8,413,655 | 8,083,279 | 8,413,655 | 8,235,740 | 8,040,748 | 7,980,516 | |
Stockholders' Equity Attributable to Parent | $ 84,000 | $ 81,000 | $ 84,000 | $ 81,000 | $ 84,000 | $ 82,000 | $ 80,000 | $ 80,000 | |
Restricted stock vested | 1,000 | 2,000 | 1,000 | ||||||
Paid-In Capital | |||||||||
Stockholders' Equity Attributable to Parent | 39,718,000 | 37,543,000 | 39,718,000 | 37,543,000 | 39,095,000 | 38,013,000 | 36,931,000 | 36,127,000 | |
Share-based compensation | 623,000 | 612,000 | 1,705,000 | 1,416,000 | |||||
Accumulated Other Comprehensive Income | |||||||||
Stockholders' Equity Attributable to Parent | 1,056,000 | 1,184,000 | 1,056,000 | 1,184,000 | 948,000 | 1,075,000 | 1,247,000 | 1,375,000 | |
Change in post retirement benefits, net of tax | (64,000) | (63,000) | (191,000) | (191,000) | |||||
Gain (loss) on derivatives | (467,000) | (467,000) | |||||||
Retained Earnings | |||||||||
Stockholders' Equity Attributable to Parent | 96,913,000 | 89,101,000 | 96,913,000 | 89,101,000 | $ 95,594,000 | $ 89,542,000 | $ 92,413,000 | $ 84,871,000 | |
Net Income (Loss) Attributable to Parent | $ 1,319,000 | $ (3,312,000) | $ 7,371,000 | $ 4,230,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 7,371 | $ 4,230 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,406 | 9,273 |
Loss on disposal of property, plant and equipment | 0 | 625 |
Deferred income tax | 0 | (595) |
Share-based compensation | 1,705 | 1,416 |
Loss from extinguishment of debt | 1,234 | 0 |
Losses on foreign currency remeasurement | 178 | 214 |
Change in operating assets and liabilities: | ||
Accounts receivable | (19,036) | (11,843) |
Inventories | (1,725) | (4,050) |
Prepaid and other assets | 1,940 | (1,829) |
Accounts payable | 10,355 | 6,841 |
Accrued and other liabilities | (2,773) | 1,085 |
Post-retirement benefits liability | (166) | (319) |
Net cash provided by operating activities | 8,489 | 5,048 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (12,284) | (8,301) |
Net cash used in investing activities | (12,284) | (8,301) |
Cash flows from financing activities: | ||
Gross repayments on revolving line of credit | (120,357) | (19,465) |
Gross borrowings on revolving line of credit | 119,985 | 21,365 |
Payments related to the purchase of treasury stock | (482) | (96) |
Payment of deferred loan costs | (402) | (2) |
Proceeds from term loan | 25,000 | 0 |
Payment of principal on term loans | (25,586) | (2,065) |
Net cash used in financing activities | (1,842) | (263) |
Net change in cash and cash equivalents | (5,637) | (3,516) |
Cash and cash equivalents at beginning of period | 6,146 | 4,131 |
Cash and cash equivalents at end of period | 509 | 615 |
Cash paid for: | ||
Interest | 1,320 | 1,376 |
Income taxes | 5,378 | 4,313 |
Non-cash investing activities: | ||
Fixed asset purchases in accounts payable | 1,058 | 123 |
Deposit used in payment of principal on term loans | $ 1,200 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATIONThe accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at September 30, 2022, and the results of operations and cash flows for the nine months ended September 30, 2022. The Company has reclassified certain prior-year amounts to conform to the current year's presentation. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, should be read in conjunction with these consolidated financial statements.Core Molding Technologies and its subsidiaries operate in the engineered materials market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, power sports, building products, industrial and utilities and other commercial markets. Core Molding Technologies has its headquarters in Columbus, Ohio, and operates six production facilities in the United States, Canada and Mexico. |
Critical Accounting Policies an
Critical Accounting Policies and Estimates | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies and Estimates | CRITICAL ACCOUNTING POLICIES AND ESTIMATES Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized when products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility. Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be titled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. 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 three banks in three separate jurisdictions. The Company had $509,000 cash on hand at September 30, 2022 and had $6,146,000 cash on hand at December 31, 2021. 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 a $37,000 allowance for doubtful accounts is needed at September 30, 2022 and $90,000 at December 31, 2021. 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 $129,000 at September 30, 2022 and $222,000 at December 31, 2021. 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 net realizable value. 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 $281,000 at September 30, 2022 and $362,000 at December 31, 2021. Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $807,000 at September 30, 2022, and $17,000 at December 31, 2021. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the nine months ended September 30, 2022, the Company recognized no impairments on contract assets. For the nine months ended September 30, 2022, the Company recognized $4,382,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2021. Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. 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 property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the nine months ended September 30, 2022 and September 30, 2021, respectively. Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment. The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period. Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, 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 step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach. There were no impairment charges of the Company's goodwill for the nine months ended September 30, 2022 and September 30, 2021, respectively. Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. 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 September 30, 2022 and December 31, 2021 of $973,000 and $916,000, respectively. Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. 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 Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $9,156,000 at September 30, 2022 and $9,080,000 at December 31, 2021. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Current Expected Credit Loss (CECL) In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under the U.S. Securities and Exchange Commission rules, until fiscal years beginning after December 15, 2022. We will adopt this ASU on its effective date of January 1, 2023. We do not expect the adoption of this ASU to have a material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
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 appreciation rights and restricted stock under the treasury stock method. On May 13, 2021, the Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan provides restricted stock award recipients voting rights equivalent to the Company's common stock and accrual of dividends but not receipt of dividends until all conditions or restrictions related to such award have been satisfied. Accordingly, the restricted shares are not considered participating shares. The 2006 Plan provides restricted stock award recipients voting rights equivalent to the Company’s common stock and accrual and receipt of dividends irrespective of any conditions or restrictions related to such award being satisfied. Accordingly, the restricted shares granted from the 2006 Plan are considered a participating security and the Company is required to apply the two-class method to consider the impact of the restricted shares on the calculation of basic and diluted earnings per share. The computation of basic and diluted net income per common share (in thousands, except for per share data) is as follows: Three months ended Nine months ended 2022 2021 2022 2021 Net income (loss) $ 1,319 $ (3,312) $ 7,371 $ 4,230 Less: net income allocated to participating securities 13 — 122 234 Net income (loss) available to common shareholders $ 1,306 $ (3,312) $ 7,249 $ 3,996 Weighted average common shares outstanding — basic 8,414,000 8,053,000 8,337,000 8,015,000 Effect of weighted average dilutive securities 4,000 — 1,000 32,000 Weighted average common and potentially issuable common shares outstanding — diluted 8,418,000 8,053,000 8,338,000 8,047,000 Basic net income per common share $ 0.16 $ (0.41) $ 0.87 $ 0.50 Diluted net income per common share $ 0.16 $ (0.41) $ 0.87 $ 0.50 |
Major Customers
Major Customers | 9 Months Ended |
Sep. 30, 2022 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |
Major Customers | MAJOR CUSTOMERS The Company had five major customers during the nine months ended September 30, 2022, BRP, Inc. ("BRP"), Navistar, Inc. ("Navistar"), PACCAR, Inc. ("PACCAR"), Universal Forest Products, Inc. ("UFP") and Volvo Group North America, LLC ("Volvo"). Major customers are defined as customers whose sales individually consist of more than ten percent of the Company's total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to these customers could have a material adverse effect on the Company. The following table presents sales revenue for the above-mentioned customers for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 BRP product sales $ 12,203 $ 6,907 $ 38,908 $ 25,896 BRP tooling sales 1,119 124 1,456 362 Total BRP sales 13,322 7,031 40,364 26,258 Navistar product sales 16,536 10,027 44,667 30,933 Navistar tooling sales 285 6,656 2,555 6,962 Total Navistar sales 16,821 16,683 47,222 37,895 PACCAR product sales 10,066 6,872 27,971 27,056 PACCAR tooling sales — 715 185 1,547 Total PACCAR sales 10,066 7,587 28,156 28,603 UFP product sales 5,099 7,551 29,642 33,323 UFP tooling sales — — — — Total UFP sales 5,099 7,551 29,642 33,323 Volvo product sales 15,468 7,804 38,268 25,359 Volvo tooling sales 128 70 215 117 Total Volvo sales 15,596 7,874 38,483 25,476 Other product sales 32,968 28,482 96,102 73,327 Other tooling sales 7,734 5,817 10,964 9,433 Total other sales 40,702 34,299 107,066 82,760 Total product sales 92,340 67,643 275,558 215,894 Total tooling sales 9,266 13,382 15,375 18,421 Total sales $ 101,606 $ 81,025 $ 290,933 $ 234,315 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventories, net consisted of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 18,429 $ 17,160 Work in process 2,685 1,976 Finished goods 5,740 5,993 Total $ 26,854 $ 25,129 Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities. The components of lease expense were as follows (in thousands): Three months ended September 30, Nine months ended 2022 2021 2022 2021 Operating lease cost $ 419 $ 390 $ 1,265 $ 1,145 Other supplemental balance sheet information related to leases was as follows (in thousands): September 30, 2022 December 31, 2021 Operating lease right of use assets $ 4,317 $ 5,577 Current operating lease liabilities (A) $ 1,346 $ 1,489 Noncurrent operating lease liabilities (B) 2,923 4,024 Total operating lease liabilities $ 4,269 $ 5,513 (A) Current operating lease liabilities are included in accrued other liabilities (B) Noncurrent operating lease liabilities are included in other non-current liabilities The following table presents certain information related to lease terms and discount rates for leases: Operating leases September 30, 2022 December 31, 2021 Weighted average remaining lease term (in years): 3.5 4.2 Weighted average discount rate: 3.9 % 4.1 % Other information related to leases were as follows (in thousands): Nine months ended Cash paid for amounts included in the measurement of lease liabilities 2022 2021 Operating cash flows from operating leases (C) $ 1,265 $ 1,145 (C) Cash flow from operating leases are included in prepaid and other assets in the Consolidated Statements of Cash Flows. Maturities of operating lease liabilities were as follows (in thousands): September 30, 2022 December 31, 2021 2022 (remainder of year) $ 371 $ 1,567 2023 1,442 1,468 2024 1,447 1,473 2025 797 783 2026 712 698 Total lease payments 4,769 5,989 Less: imputed interest (500) (476) Total lease obligations 4,269 5,513 Less: current obligations (1,346) (1,489) Long-term lease obligations $ 2,923 $ 4,024 |
Property, Plant & Equipment
Property, Plant & Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | PROPERTY, PLANT & EQUIPMENT Property, plant and equipment, net consisted of the following for the periods specified (in thousands): September 30, 2022 December 31, 2021 Property, plant and equipment $ 196,731 $ 183,500 Accumulated depreciation (115,288) (107,603) Property, plant and equipment — net $ 81,443 $ 75,897 Property, plant, and equipment are recorded at cost, unless obtained through acquisition, then assets are recorded at estimated fair value at the date of acquisition. 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 an adjustment to the depreciation period or to the unamortized balance is warranted. Depreciation expense for the three months ended September 30, 2022 and 2021 was $2,683,000 and $2,471,000, respectively. Depreciation expense for the nine months ended September 30, 2022 and 2021 was $7,685,000 and $7,414,000, respectively. Amounts invested in capital additions in progress were $13,019,000 and $6,605,000 at September 30, 2022 and December 31, 2021, respectively. At September 30, 2022 and December 31, 2021, purchase commitments for capital expenditures in progress were $1,078,000 and $5,315,000, respectively. |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | GOODWILL AND INTANGIBLES Goodwill activity for the nine months ended September 30, 2022 consisted of the following (in thousands): Balance at December 31, 2021 $ 17,376 Additions — Impairment — Balance at September 30, 2022 $ 17,376 Intangibles, net at September 30, 2022 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (75) $ 175 Trademarks 10 Years 1,610 (758) 852 Non-competition agreement 5 Years 1,810 (1,705) 105 Developed technology 7 Years 4,420 (2,973) 1,447 Customer relationships 10-12 Years 9,330 (3,803) 5,527 Total $ 17,420 $ (9,314) $ 8,106 Intangibles, net at December 31, 2021 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (68) $ 182 Trademarks 10 Years 1,610 (637) 973 Non-competition agreement 5 Years 1,810 (1,433) 377 Developed technology 7 Years 4,420 (2,499) 1,921 Customer relationships 10-12 Years 9,330 (3,216) 6,114 Total $ 17,420 $ (7,853) $ 9,567 |
Post Retirement Benefits
Post Retirement Benefits | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Post Retirement Benefits | POST-RETIREMENT BENEFITS The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Pension expense: Multi-employer plan $ 221 $ 179 $ 682 $ 600 Defined contribution plan 371 263 1,122 881 Total pension expense 592 442 1,804 1,481 Health and life insurance: Interest cost 50 41 149 122 Amortization of prior service credits (124) (124) (372) (372) Amortization of net loss 43 43 130 130 Net periodic benefit credit (31) (40) (93) (120) Total post-retirement benefits expense $ 561 $ 402 $ 1,711 $ 1,361 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following (in thousands): September 30, December 31, Wells Fargo term loans payable $ — $ 13,992 FGI term loans payable — 12,561 Huntington term loans payable 24,792 — Leaf Capital term loan payable 93 119 Total 24,885 26,672 Less deferred loan costs (385) (1,478) Less current portion (1,205) (3,943) Long-term debt $ 23,295 $ 21,251 Huntington Credit Agreement On July 22, 2022, the Company entered into a credit agreement (the “Huntington Credit Agreement”) with The Huntington National Bank (“Huntington”), as the sole lender, administrative agent, lead arranger and book runner, and the lenders from time to time thereto. Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured loans (the “Huntington Loans”) in the maximum aggregate principal amount of $75,000,000 ($38,689,000 of which was advanced to the Company on July 22, 2022), comprised of three $25,000,000 commitments: a term loan commitment, a CapEx loan commitment and a revolving loan commitment. The initial proceeds from the Huntington Credit Agreement were used in part to (i) repay all existing outstanding indebtedness of the Company owing to Wells Fargo Bank, National Association, and FGI Equipment Finance LLC (“FGI”) and (ii) pay certain fees and expenses associated with entering the Huntington Credit Agreement. At the option of the Company, the Huntington Loans shall be comprised of Alternative Base Rate (ABR) Loans or Secure Overnight Financing Rate (SOFR) Loans. ABR Loans bear interest at a per annum rate equal to ABR plus a margin of 280 to 380 basis points determined based on the Company’s leverage ratio. ABR is the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50% per annum and (c) Daily Simple SOFR for such day (taking into account any floor set forth in the definition of “Daily Simple SOFR”) plus 1.00% per annum; provided, that if the ABR shall be less than 0.00%, then ABR shall be deemed to be 0.00%. SOFR Loans bear interest at a per annum rate equal to Daily Simple SOFR plus a margin of 180 to 230 basis points determined based on the Company’s leverage ratio. Daily Simple SOFR means, for any day (a “SOFR Rate Day”), a rate per annum equal to the greater of (a) SOFR for the day (such day, the “SOFR Determination Date”) that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website, and (b) 0.00%. The Company’s obligations under the Huntington Credit Agreement are secured by all of the U.S. and Canadian assets of the Company, including all of its equity interests in each of the Company’s U.S. and Canadian subsidiaries and 65% of the Company’s equity interest in its Mexican subsidiaries, and are unconditionally guaranteed by certain subsidiaries of the Company. The Huntington Credit Agreement contains certain customary representations and warranties, conditions, affirmative and negative covenants and events of default. The Company is in compliance with such covenants as of September 30, 2022. Voluntary prepayments of amounts outstanding under the Huntington Loans are permitted at any time without premium or penalty. The interest rate for the Huntington Revolving Loan and Huntington Term Loan was 4.08% and 4.75% as of September 30, 2022, respectively. Huntington Term Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a Term Loan commitment (the “Huntington Term Loan”) of $25,000,000 ($25,000,000 of which was advanced to the Company on July 22, 2022). The Huntington Term Loan is to be repaid in monthly installments beginning August 2022 of $104,000 per month for the first 24 months, $156,000 per month for the next 24 months, $208,000 for the next 12 months and the remaining balance to be paid on July 22, 2027. Huntington Capex Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured Capex loan (the “Huntington Capex Loan”) in the maximum aggregate principal amount of $25,000,000 (none of which was advanced to the Company on July 22, 2022 and through September 30, 2022). Proceeds of the Huntington Capex Loan will be used to finance the ongoing capital expenditure needs of the Company. Any borrowings from the Huntington Capex Loan will be converted to new term loans annually each February, beginning February 2025, and will have monthly principal repayments based on a sixty-month amortization period with all amounts outstanding on the Huntington Capex Loan being fully due on July 22, 2027. Huntington Revolving Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a revolving loan commitment (the “Huntington Revolving Loan”) of $25,000,000 ($13,689,000 of which was advanced to the Company on July 22, 2022). The Company has $25,000,000 of available revolving loans of which $4,052,000 is outstanding as of September 30, 2022. The Huntington Credit Agreement makes available to the Company a revolving commitment in the maximum amount of $25,000,000 at the Company’s option at any time during the five-year period following the closing. The revolving loan commitment terminates, and all outstanding borrowings thereunder must be repaid on July 22, 2027. Leaf Capital Funding On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.50% and a term of 60 months. Wells Fargo Loan On December 31, 2021, the Company had term loans ("the WF Term Loans") and a revolving loan (the "WF Revolving loan") with Wells Fargo Bank, National Association, with balances of $13,992,000 and $4,424,000, respectively. The Company’s term and revolving loans had variable interest rates on December 31, 2021 of 3.77% and 4.25%, respectively. On July 22, 2022, all existing outstanding indebtedness of the Company owed to Wells Fargo Bank, National Association was repaid in full as part of the Huntington Credit Agreement. FGI Equipment Finance LLC Term Loan On December 31, 2021, the Company had a term loan (the "FGI Term Loan"), evidenced by a promissory note (the "FGI Note") with FGI, with a balance of $12,561,000. The Company’s term loan had a fixed interest rate of 8.25% at December 31, 2021. On July 22, 2022, all existing outstanding indebtedness of the Company owed to FGI was repaid in full as part of the Huntington Credit Agreement. At September 30, 2022, the company recorded losses of $1,234,000 from writing off outstanding deferred loan costs and approximately $348,000 from prepayment fees associated with the FGI Term Loan. Interest Rate Swap Agreement |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. Management makes assumptions, judgments, and estimates to determine the deferred tax assets and liabilities. The Company evaluates provisions and deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available evidence. The Company’s Consolidated Balance Sheets include net deferred tax assets of $252,000 for the Canadian and $841,000 for the Mexican tax jurisdictions and a net deferred tax liability of $718,000 for the U.S. tax jurisdiction at September 30, 2022. The deferred tax asset is classified in other non-current assets and deferred tax liabilities are in other non-current liabilities. At September 30, 2022, the Company's net deferred tax liability included a valuation allowance of $4,257,000, due to cumulative losses over the last three years and uncertainty related to the Company's ability to realize United States deferred tax assets. The Company believes that the deferred tax assets associated with the Canadian and Mexican tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income. Income tax expense for the three months ended September 30, 2022 is estimated to be $1,251,000, approximately 48.7% of income before income taxes, and includes tax expense for the Canadian and Mexican tax jurisdictions. U.S. operations incurred a net loss for the three months ended September 30, 2022 and the net loss tax benefit was offset with a full valuation reserve. Income tax expense for the three months ended September 30, 2021 was estimated to be $396,000, approximately 13.6% of loss before income taxes. The Company files income tax returns in the United States, Mexico, Canada and various state and local jurisdictions. The Company is subject to federal income tax examinations for tax years 2014 through 2017 but the scope of examination is limited to adjustments resulting from Net Operating Loss carry back claims from the 2018, 2019, and 2020 tax years. The Company is subject to federal income tax examinations for years 2018 through 2021 with unlimited scope. The Company is not subject to state examinations for years before 2017. The Company is not subject to Mexican income tax examinations by Mexican authorities for the years before 2017 and is not subject to Canadian income tax examinations by Canadian authorities for the years before 2018. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION On May 13, 2021, The Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan allows for grants to employees, officers, non-employee directors, consultants, independent contractors and advisors of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards (“stock awards”) up to an aggregate of 436,530 awards. Awards can be granted under the 2021 Plan through the earlier of May 13, 2031, or the date the maximum number of available awards under the 2021 Plan have been granted. No new awards may be granted from the 2006 Plan. Awards under the 2021 Plan vest over one to three years and shares previously awarded and currently unvested under the 2006 Plan vest over three years. Shares granted under both the 2006 and 2021 Plans vest upon the date of a participant’s death, disability or change in control. Restricted Stock The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Stock”). These awards are measured at the fair value of the Company's common stock on the date of issuance and recognized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur. The following summarizes the status of Restricted Stock and changes during the nine months ended September 30, 2022: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2021 459,420 $ 9.79 Granted 287,485 10.39 Vested (226,201) 9.01 Forfeited (13,957) 11.28 Unvested balance at September 30, 2022 506,747 $ 10.43 At September 30, 2022 and 2021, there was $4,199,000 and $3,664,000, respectively, of total unrecognized compensation expense, related to Restricted Stock grants. The unrecognized compensation expense at September 30, 2022 is expected to be recognized over the weighted-average period of 2.0 years. Total compensation cost related to Restricted Stock grants for the three months ended September 30, 2022 and 2021 was $623,000 and $578,000, respectively. Total compensation cost related to Restricted Stock grants for the nine months ended September 30, 2022 and 2021 was $1,660,000 and $1,322,000, respectively, all of which was recorded to selling, general and administrative expense. During the nine months ended September 30, 2022 employees surrendered 48,286 shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted awards. Employees surrendered 7,237 shares for the nine months ended September 30, 2021. Stock Appreciation Rights As part of the Company's 2019 annual grant, Stock Appreciation Rights ("SARs") were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 of age. These awards are valued using the Black-Scholes option pricing model, and are recognized ratably as compensation expense over three years. A summary of the Company's stock appreciation rights activity for the nine months ended September 30, 2022 is as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 177,016 $ 2.57 Granted — — Exercised — — Forfeited — — Outstanding at end of the period ended September 30, 2022 177,016 $ 2.57 Exercisable at end of the period ended September 30, 2022 177,016 $ 2.57 The average remaining contractual term for SARs outstanding at September 30, 2022 is 1.8 years with no aggregate intrinsic value. There was no unrecognized compensation expense, related to SARs at September 30, 2022. For the three months ended September 30, 2022, there was no compensation cost. Total compensation cost related to SARs for the three months ended September 30, 2021 was $34,000. Total Compensation cost related to SARs for the nine months ended September 30, 2022 and 2021 was $45,000 and $94,000, respectively, all of which was recorded to selling, general and administrative expense. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTSFair 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 hierarchical valuation methodology provides a fair value framework that describes the categorization of assets and liabilities in 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 cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of September 30, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. As of September 30, 2022, the carrying amounts of the Huntington Term Loan and Huntington Revolving Loan approximated fair value due to the short-term nature of the underlying variable rate SOFR agreements. As of December 31, 2021, the carrying amounts of the WF Term Loans and WF Revolving Loan approximated fair value due to the short-term nature of the underlying variable rate LIBOR agreements. The FGI Term Loan approximated fair value as of December 31, 2021 due to the immaterial movement in interest rates since the Company entered into the FGI Note on October 20, 2020. The Company had Level 2 fair value measurements at September 30, 2022 relating to the Company’s interest rate swaps and foreign currency derivatives. Derivative and hedging activities Foreign Currency Derivatives The Company conducted business in foreign countries and paid certain expenses in foreign currencies; therefore, the Company was exposed to foreign currency exchange risk between the U.S. Dollar and foreign currencies, 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 foreign currency, which will be used to fund future foreign currency 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 foreign currency. As of September 30, 2022, the Company had no ineffective portion related to the cash flow hedges. Interest Rate Swap The Company entered into an interest rate swap contract to fix the interest rate on an initial aggregate amount of $25,000,000 thereby reducing exposure to interest rate changes. The interest rate swap pays a fixed rate of 2.95% to the swap counterparty in exchange for daily SOFR. At inception, all interest rate swaps were formally documented as cash flow hedges and are measured at fair value each reporting period. See Note 11, "Debt", for additional information. Financial statement impacts The following table detail amounts related to our derivatives designated as hedging instruments (in thousands): Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Prepaid expenses other current assets $ — Accrued other liabilities $ 542 Other non-current assets $ — Other non-current liabilities $ 84 Notional Contract values $ — $ 19,560 Interest rate swaps Prepaid expenses other current assets $ 40 Accrued other liabilities $ — Other non-current assets $ 765 Other non-current liabilities $ — Notional Contract values $ 24,792 $ — At December 31, 2021 the Company had no derivatives designated as hedging instruments. The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended September 30, 2022 and 2021 (in thousands): Derivatives in subtopic 815-20 Cash Flow Hedging Relationship: Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (A) Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income 2022 2021 2022 2021 Foreign exchange contracts $ (626) $ — Cost of goods sold $ — $ — Selling, general and administrative expense $ — $ — Interest rate swaps $ 767 $ — Interest expense $ (38) $ — The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the nine months ended September 30, 2022 and 2021 (in thousands): Derivatives in subtopic 815-20 Cash Flow Hedging Relationship: Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (A) Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income 2022 2021 2022 2021 Foreign exchange contracts $ (626) $ — Cost of goods sold $ — $ — Selling, general and administrative expense $ — $ — Interest rate swaps $ 767 $ — Interest expense $ (38) $ — (A) The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the nine months ended September 30, 2022 and 2021 (in thousands): 2021: Derivative Post Retirement Accumulated 2021: Balance at December 31, 2020 $ — $ 1,375 $ 1,375 Amounts reclassified from accumulated other comprehensive income — (242) (242) Income tax benefit — 51 51 Balance at September 30, 2021 $ — $ 1,184 $ 1,184 2022: Balance at December 31, 2021 $ — $ 1,075 $ 1,075 Other comprehensive income before reclassifications 141 — 141 Amounts reclassified from accumulated other comprehensive income 38 (242) (204) Income tax benefit (expense) (7) 51 44 Balance at September 30, 2022 $ 172 $ 884 $ 1,056 |
Critical Accounting Policies _2
Critical Accounting Policies and Estimates (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. |
Revenue Recognition | Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized when products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility. Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be titled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. 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 three banks in three separate jurisdictions. The Company had $509,000 cash on hand at September 30, 2022 and had $6,146,000 cash on hand at December 31, 2021. |
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 a $37,000 allowance for doubtful accounts is needed at September 30, 2022 and $90,000 at December 31, 2021. 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 $129,000 at September 30, 2022 and $222,000 at December 31, 2021. 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 net realizable value. 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 $281,000 at September 30, 2022 and $362,000 at December 31, 2021. |
Contract Assets/Liabilities | Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $807,000 at September 30, 2022, and $17,000 at December 31, 2021. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the nine months ended September 30, 2022, the Company recognized no impairments on contract assets. For the nine months ended September 30, 2022, the Company recognized $4,382,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2021. |
Income Taxes | Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. |
Long-Lived Assets | Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. 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 property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the nine months ended September 30, 2022 and September 30, 2021, respectively. |
Goodwill | Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment. The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period. Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, 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 step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a |
Self-Insurance | Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. 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 September 30, 2022 and December 31, 2021 of $973,000 and $916,000, respectively. |
Post-retirement Benefits | Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. 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 Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $9,156,000 at September 30, 2022 and $9,080,000 at December 31, 2021. |
New Accounting Pronouncements, Policy | Current Expected Credit Loss (CECL) In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under the U.S. Securities and Exchange Commission rules, until fiscal years beginning after December 15, 2022. We will adopt this ASU on its effective date of January 1, 2023. We do not expect the adoption of this ASU to have a material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof. |
Fair Value Measurement | 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 hierarchical valuation methodology provides a fair value framework that describes the categorization of assets and liabilities in 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 cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of September 30, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. As of September 30, 2022, the carrying amounts of the Huntington Term Loan and Huntington Revolving Loan approximated fair value due to the short-term nature of the underlying variable rate SOFR agreements. As of December 31, 2021, the carrying amounts of the WF Term Loans and WF Revolving Loan approximated fair value due to the short-term nature of the underlying variable rate LIBOR agreements. The FGI Term Loan approximated fair value as of December 31, 2021 due to the immaterial movement in interest rates since the Company entered into the FGI Note on October 20, 2020. The Company had Level 2 fair value measurements at September 30, 2022 relating to the Company’s interest rate swaps and foreign currency derivatives. Derivative and hedging activities Foreign Currency Derivatives The Company conducted business in foreign countries and paid certain expenses in foreign currencies; therefore, the Company was exposed to foreign currency exchange risk between the U.S. Dollar and foreign currencies, 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 foreign currency, which will be used to fund future foreign currency 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 foreign currency. As of September 30, 2022, the Company had no ineffective portion related to the cash flow hedges. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 (in thousands, except for per share data) is as follows: Three months ended Nine months ended 2022 2021 2022 2021 Net income (loss) $ 1,319 $ (3,312) $ 7,371 $ 4,230 Less: net income allocated to participating securities 13 — 122 234 Net income (loss) available to common shareholders $ 1,306 $ (3,312) $ 7,249 $ 3,996 Weighted average common shares outstanding — basic 8,414,000 8,053,000 8,337,000 8,015,000 Effect of weighted average dilutive securities 4,000 — 1,000 32,000 Weighted average common and potentially issuable common shares outstanding — diluted 8,418,000 8,053,000 8,338,000 8,047,000 Basic net income per common share $ 0.16 $ (0.41) $ 0.87 $ 0.50 Diluted net income per common share $ 0.16 $ (0.41) $ 0.87 $ 0.50 The computation of basic and diluted net income per participating share is as follows (in thousands, except for per share data): Three months ended Nine months ended 2022 2021 2022 2021 Net income allocated to participating securities $ 13 $ — $ 122 $ 234 Weighted average participating shares outstanding — basic 82,000 — 140,000 470,000 Effect of dilutive securities — — — — Weighted average common and potentially issuable common shares outstanding — diluted 82,000 — 140,000 470,000 Basic net income per participating share $ 0.16 $ 0.00 $ 0.87 $ 0.50 Diluted net income per participating share $ 0.16 $ 0.00 $ 0.87 $ 0.50 |
Major Customers (Tables)
Major Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |
Schedule of Major Customers | The following table presents sales revenue for the above-mentioned customers for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 BRP product sales $ 12,203 $ 6,907 $ 38,908 $ 25,896 BRP tooling sales 1,119 124 1,456 362 Total BRP sales 13,322 7,031 40,364 26,258 Navistar product sales 16,536 10,027 44,667 30,933 Navistar tooling sales 285 6,656 2,555 6,962 Total Navistar sales 16,821 16,683 47,222 37,895 PACCAR product sales 10,066 6,872 27,971 27,056 PACCAR tooling sales — 715 185 1,547 Total PACCAR sales 10,066 7,587 28,156 28,603 UFP product sales 5,099 7,551 29,642 33,323 UFP tooling sales — — — — Total UFP sales 5,099 7,551 29,642 33,323 Volvo product sales 15,468 7,804 38,268 25,359 Volvo tooling sales 128 70 215 117 Total Volvo sales 15,596 7,874 38,483 25,476 Other product sales 32,968 28,482 96,102 73,327 Other tooling sales 7,734 5,817 10,964 9,433 Total other sales 40,702 34,299 107,066 82,760 Total product sales 92,340 67,643 275,558 215,894 Total tooling sales 9,266 13,382 15,375 18,421 Total sales $ 101,606 $ 81,025 $ 290,933 $ 234,315 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories, net consisted of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 18,429 $ 17,160 Work in process 2,685 1,976 Finished goods 5,740 5,993 Total $ 26,854 $ 25,129 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows (in thousands): Three months ended September 30, Nine months ended 2022 2021 2022 2021 Operating lease cost $ 419 $ 390 $ 1,265 $ 1,145 |
Supplemental Balance Sheet Information | Other supplemental balance sheet information related to leases was as follows (in thousands): September 30, 2022 December 31, 2021 Operating lease right of use assets $ 4,317 $ 5,577 Current operating lease liabilities (A) $ 1,346 $ 1,489 Noncurrent operating lease liabilities (B) 2,923 4,024 Total operating lease liabilities $ 4,269 $ 5,513 (A) Current operating lease liabilities are included in accrued other liabilities (B) Noncurrent operating lease liabilities are included in other non-current liabilities The following table presents certain information related to lease terms and discount rates for leases: Operating leases September 30, 2022 December 31, 2021 Weighted average remaining lease term (in years): 3.5 4.2 Weighted average discount rate: 3.9 % 4.1 % Other information related to leases were as follows (in thousands): Nine months ended Cash paid for amounts included in the measurement of lease liabilities 2022 2021 Operating cash flows from operating leases (C) $ 1,265 $ 1,145 (C) Cash flow from operating leases are included in prepaid and other assets in the Consolidated Statements of Cash Flows. |
Maturities of lease liabilities | Maturities of operating lease liabilities were as follows (in thousands): September 30, 2022 December 31, 2021 2022 (remainder of year) $ 371 $ 1,567 2023 1,442 1,468 2024 1,447 1,473 2025 797 783 2026 712 698 Total lease payments 4,769 5,989 Less: imputed interest (500) (476) Total lease obligations 4,269 5,513 Less: current obligations (1,346) (1,489) Long-term lease obligations $ 2,923 $ 4,024 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following for the periods specified (in thousands): September 30, 2022 December 31, 2021 Property, plant and equipment $ 196,731 $ 183,500 Accumulated depreciation (115,288) (107,603) Property, plant and equipment — net $ 81,443 $ 75,897 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill activity | Goodwill activity for the nine months ended September 30, 2022 consisted of the following (in thousands): Balance at December 31, 2021 $ 17,376 Additions — Impairment — Balance at September 30, 2022 $ 17,376 |
Schedule of Intangible assets | Intangibles, net at September 30, 2022 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (75) $ 175 Trademarks 10 Years 1,610 (758) 852 Non-competition agreement 5 Years 1,810 (1,705) 105 Developed technology 7 Years 4,420 (2,973) 1,447 Customer relationships 10-12 Years 9,330 (3,803) 5,527 Total $ 17,420 $ (9,314) $ 8,106 Intangibles, net at December 31, 2021 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (68) $ 182 Trademarks 10 Years 1,610 (637) 973 Non-competition agreement 5 Years 1,810 (1,433) 377 Developed technology 7 Years 4,420 (2,499) 1,921 Customer relationships 10-12 Years 9,330 (3,216) 6,114 Total $ 17,420 $ (7,853) $ 9,567 |
Post Retirement Benefits (Table
Post Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Post Retirement Benefit Plans | The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Pension expense: Multi-employer plan $ 221 $ 179 $ 682 $ 600 Defined contribution plan 371 263 1,122 881 Total pension expense 592 442 1,804 1,481 Health and life insurance: Interest cost 50 41 149 122 Amortization of prior service credits (124) (124) (372) (372) Amortization of net loss 43 43 130 130 Net periodic benefit credit (31) (40) (93) (120) Total post-retirement benefits expense $ 561 $ 402 $ 1,711 $ 1,361 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-term debt | Debt consists of the following (in thousands): September 30, December 31, Wells Fargo term loans payable $ — $ 13,992 FGI term loans payable — 12,561 Huntington term loans payable 24,792 — Leaf Capital term loan payable 93 119 Total 24,885 26,672 Less deferred loan costs (385) (1,478) Less current portion (1,205) (3,943) Long-term debt $ 23,295 $ 21,251 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
The status of Restricted Stock and changes | The following summarizes the status of Restricted Stock and changes during the nine months ended September 30, 2022: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2021 459,420 $ 9.79 Granted 287,485 10.39 Vested (226,201) 9.01 Forfeited (13,957) 11.28 Unvested balance at September 30, 2022 506,747 $ 10.43 |
Schedule of stock appreciation rights activity | A summary of the Company's stock appreciation rights activity for the nine months ended September 30, 2022 is as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 177,016 $ 2.57 Granted — — Exercised — — Forfeited — — Outstanding at end of the period ended September 30, 2022 177,016 $ 2.57 Exercisable at end of the period ended September 30, 2022 177,016 $ 2.57 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table detail amounts related to our derivatives designated as hedging instruments (in thousands): Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange contracts Prepaid expenses other current assets $ — Accrued other liabilities $ 542 Other non-current assets $ — Other non-current liabilities $ 84 Notional Contract values $ — $ 19,560 Interest rate swaps Prepaid expenses other current assets $ 40 Accrued other liabilities $ — Other non-current assets $ 765 Other non-current liabilities $ — Notional Contract values $ 24,792 $ — |
Schedule of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended September 30, 2022 and 2021 (in thousands): Derivatives in subtopic 815-20 Cash Flow Hedging Relationship: Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (A) Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income 2022 2021 2022 2021 Foreign exchange contracts $ (626) $ — Cost of goods sold $ — $ — Selling, general and administrative expense $ — $ — Interest rate swaps $ 767 $ — Interest expense $ (38) $ — The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the nine months ended September 30, 2022 and 2021 (in thousands): Derivatives in subtopic 815-20 Cash Flow Hedging Relationship: Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (A) Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income 2022 2021 2022 2021 Foreign exchange contracts $ (626) $ — Cost of goods sold $ — $ — Selling, general and administrative expense $ — $ — Interest rate swaps $ 767 $ — Interest expense $ (38) $ — (A) The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend. |
Comprehensive Text Block List (
Comprehensive Text Block List (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Text Block [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the nine months ended September 30, 2022 and 2021 (in thousands): 2021: Derivative Post Retirement Accumulated 2021: Balance at December 31, 2020 $ — $ 1,375 $ 1,375 Amounts reclassified from accumulated other comprehensive income — (242) (242) Income tax benefit — 51 51 Balance at September 30, 2021 $ — $ 1,184 $ 1,184 2022: Balance at December 31, 2021 $ — $ 1,075 $ 1,075 Other comprehensive income before reclassifications 141 — 141 Amounts reclassified from accumulated other comprehensive income 38 (242) (204) Income tax benefit (expense) (7) 51 44 Balance at September 30, 2022 $ 172 $ 884 $ 1,056 |
Critical Accounting Policies _3
Critical Accounting Policies and Estimates (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 37,000 | $ 90,000 |
Accounts receivable for chargebacks | 129,000 | 222,000 |
Allowance for slow moving and obsolete inventory | 281,000 | 362,000 |
Amount of revenue from contract liabilities related to open jobs outstanding | 4,382,000 | |
Estimated liability for compensation claims | 973,000 | 916,000 |
Liability for post retirement healthcare benefits | 9,156,000 | 9,080,000 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 807,000 | 17,000 |
Cash and cash equivalents | $ 509,000 | $ 6,146,000 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income (Loss) Available to Common Stockholders | ||||
Net Income (Loss) Attributable to Parent | $ 1,319 | $ (3,312) | $ 7,371 | $ 4,230 |
Less: net income allocated to participating securities | 13 | 0 | 122 | 234 |
Net income (loss) available to common shareholders | $ 1,306 | $ (3,312) | $ 7,249 | $ 3,996 |
Weighted average common shares outstanding - basic (in shares) | 8,414,000 | 8,053,000 | 8,337,000 | 8,015,000 |
Effect of dilutive securities (in shares) | 4,000 | 0 | 1,000 | 32,000 |
Weighted average common and potentially issuable common shares outstanding - diluted (in shares) | 8,418,000 | 8,053,000 | 8,338,000 | 8,047,000 |
Basic net income per share (in dollars per share) | $ 0.16 | $ (0.41) | $ 0.87 | $ 0.50 |
Diluted net income per share (in dollars per share) | $ 0.16 | $ (0.41) | $ 0.87 | $ 0.50 |
Participating Securities | ||||
Net Income (Loss) Available to Common Stockholders | ||||
Less: net income allocated to participating securities | $ 13 | $ 0 | $ 122 | $ 234 |
Weighted average common shares outstanding - basic (in shares) | 82,000 | 0 | 140,000 | 470,000 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted average common and potentially issuable common shares outstanding - diluted (in shares) | 82,000 | 0 | 140,000 | 470,000 |
Basic net income per share (in dollars per share) | $ 0.16 | $ 0 | $ 0.87 | $ 0.50 |
Diluted net income per share (in dollars per share) | $ 0.16 | $ 0 | $ 0.87 | $ 0.50 |
Major Customers (Details)
Major Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) customer | Sep. 30, 2021 USD ($) | |
Revenue, Major Customer [Line Items] | ||||
Number of major customers | customer | 5 | |||
Net sales | $ 101,606 | $ 81,025 | $ 290,933 | $ 234,315 |
Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 92,340 | 67,643 | 275,558 | 215,894 |
Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 9,266 | 13,382 | 15,375 | 18,421 |
UFP | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 5,099 | 7,551 | 29,642 | 33,323 |
UFP | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 5,099 | 7,551 | 29,642 | 33,323 |
UFP | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Navistar | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 16,821 | 16,683 | 47,222 | 37,895 |
Navistar | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 16,536 | 10,027 | 44,667 | 30,933 |
Navistar | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 285 | 6,656 | 2,555 | 6,962 |
Volvo | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 15,596 | 7,874 | 38,483 | 25,476 |
Volvo | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 15,468 | 7,804 | 38,268 | 25,359 |
Volvo | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 128 | 70 | 215 | 117 |
PACCAR | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 10,066 | 7,587 | 28,156 | 28,603 |
PACCAR | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 10,066 | 6,872 | 27,971 | 27,056 |
PACCAR | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 0 | 715 | 185 | 1,547 |
BRP | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 13,322 | 7,031 | 40,364 | 26,258 |
BRP | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 12,203 | 6,907 | 38,908 | 25,896 |
BRP | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 1,119 | 124 | 1,456 | 362 |
Other Customers | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 40,702 | 34,299 | 107,066 | 82,760 |
Other Customers | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 32,968 | 28,482 | 96,102 | 73,327 |
Other Customers | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | $ 7,734 | $ 5,817 | $ 10,964 | $ 9,433 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,429 | $ 17,160 |
Work in process | 2,685 | 1,976 |
Finished goods | 5,740 | 5,993 |
Total | $ 26,854 | $ 25,129 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Options to extend the lease, period | 5 years | ||||
Weighted average discount rate, Operating leases | 3.90% | 3.90% | 4.10% | ||
Weighted average remaining lease term, Operating leases | 3 years 6 months | 3 years 6 months | 4 years 2 months 12 days | ||
Lease, Cost [Abstract] | |||||
Operating lease cost | $ 419 | $ 390 | $ 1,265 | $ 1,145 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating lease right of use assets | 4,317 | 4,317 | $ 5,577 | ||
Current operating lease liabilities | $ 1,346 | $ 1,346 | $ 1,489 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | ||
Noncurrent operating lease liabilities | $ 2,923 | $ 2,923 | $ 4,024 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities | Other non-current liabilities | ||
Total operating lease liabilities | $ 4,269 | $ 4,269 | $ 5,513 | ||
Weighted average remaining lease term, Operating leases | 3 years 6 months | 3 years 6 months | 4 years 2 months 12 days | ||
Weighted average discount rate, Operating leases | 3.90% | 3.90% | 4.10% | ||
Cash Flow, Operating Activities, Lessee [Abstract] | |||||
Operating cash flows from operating leases | $ 1,265 | $ 1,145 | |||
Lessee, Operating Lease, Description [Abstract] | |||||
Operating leases to be paid in remainder of fiscal year | $ 371 | 371 | |||
Operating leases to be paid in year one | 1,442 | 1,442 | $ 1,567 | ||
Operating leases to be paid in year two | 1,447 | 1,447 | 1,468 | ||
Operating leases to be paid in year three | 797 | 797 | 1,473 | ||
Operating leases to be paid in year four | 712 | 712 | 783 | ||
Operating leases to be paid in year five | 698 | ||||
Total lease payments | 4,769 | 4,769 | 5,989 | ||
Less: imputed interest | (500) | (500) | (476) | ||
Total operating lease liabilities | 4,269 | 4,269 | 5,513 | ||
Less: current obligations | 1,346 | 1,346 | 1,489 | ||
Long-term lease obligations | $ 2,923 | $ 2,923 | $ 4,024 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 4 years | 4 years |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment | $ 196,731,000 | $ 196,731,000 | $ 183,500,000 | ||
Accumulated depreciation | (115,288,000) | (115,288,000) | (107,603,000) | ||
Property, plant and equipment — net | 81,443,000 | 81,443,000 | 75,897,000 | ||
Depreciation expense | 2,683,000 | $ 2,471,000 | 7,685,000 | $ 7,414,000 | |
Capital additions in progress | $ 13,019,000 | 13,019,000 | $ 6,605,000 | ||
Purchase commitments for capital expenditures in progress | $ 1,078,000 | $ 5,315,000 |
Goodwill and Intangibles - Good
Goodwill and Intangibles - Goodwill activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 17,376 |
Additions | 0 |
Impairment | 0 |
Ending balance | $ 17,376 |
Goodwill and Intangibles - Defi
Goodwill and Intangibles - Definite-lived Intangible assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 17,420,000 | $ 17,420,000 | $ 17,420,000 |
Accumulated Amortization | (9,314,000) | (9,314,000) | (7,853,000) |
Net Carrying Amount | 8,106,000 | 8,106,000 | $ 9,567,000 |
Intangible asset amortization expense | 487,000 | $ 1,461,000 | |
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 25 years | 25 years | |
Gross Carrying Amount | 250,000 | $ 250,000 | $ 250,000 |
Accumulated Amortization | (75,000) | (75,000) | (68,000) |
Net Carrying Amount | 175,000 | $ 175,000 | $ 182,000 |
Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 10 years | 10 years | |
Gross Carrying Amount | 1,610,000 | $ 1,610,000 | $ 1,610,000 |
Accumulated Amortization | (758,000) | (758,000) | (637,000) |
Net Carrying Amount | 852,000 | $ 852,000 | $ 973,000 |
Non-competition agreement | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 5 years | 5 years | |
Gross Carrying Amount | 1,810,000 | $ 1,810,000 | $ 1,810,000 |
Accumulated Amortization | (1,705,000) | (1,705,000) | (1,433,000) |
Net Carrying Amount | 105,000 | $ 105,000 | $ 377,000 |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 7 years | 7 years | |
Gross Carrying Amount | 4,420,000 | $ 4,420,000 | $ 4,420,000 |
Accumulated Amortization | (2,973,000) | (2,973,000) | (2,499,000) |
Net Carrying Amount | 1,447,000 | 1,447,000 | 1,921,000 |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 9,330,000 | 9,330,000 | 9,330,000 |
Accumulated Amortization | (3,803,000) | (3,803,000) | (3,216,000) |
Net Carrying Amount | $ 5,527,000 | $ 5,527,000 | $ 6,114,000 |
Customer relationships | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 10 years | 10 years | |
Customer relationships | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 12 years | 12 years |
Post Retirement Benefits (Detai
Post Retirement Benefits (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension, health and life insurance expense: | ||||
Multi-employer plan | $ 221,000 | $ 179,000 | $ 682,000 | $ 600,000 |
Defined contribution plan | 371,000 | 263,000 | 1,122,000 | 881,000 |
Total pension expense | 592,000 | 442,000 | 1,804,000 | 1,481,000 |
Interest cost | 50,000 | 41,000 | 149,000 | 122,000 |
Amortization of prior service credits | (124,000) | (124,000) | (372,000) | (372,000) |
Amortization of net loss | 43,000 | 43,000 | 130,000 | 130,000 |
Net periodic benefit credit | (31,000) | (40,000) | (93,000) | (120,000) |
Total post-retirement benefits expense | 561,000 | $ 402,000 | 1,711,000 | $ 1,361,000 |
Pension Plan | ||||
Pension, health and life insurance expense: | ||||
Payments made to pension plans | 2,349,000 | |||
Pension plan payments expected to be made in fiscal year | 741,000 | 741,000 | ||
Pension plan payments accrued | 259,000 | 259,000 | ||
Other Postretirement Benefits Plan | ||||
Pension, health and life insurance expense: | ||||
Payments for post retirement healthcare and life insurance | 467,000 | |||
Pension plan payments expected to be made in fiscal year | 924,000 | 924,000 | ||
Pension plan payments accrued | $ 924,000 | $ 924,000 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 24,885,000 | $ 26,672,000 |
Less deferred loan costs | (385,000) | (1,478,000) |
Less current portion | (1,205,000) | (3,943,000) |
Long-term debt | 23,295,000 | 21,251,000 |
Wells Fargo term loans payable | ||
Debt Instrument [Line Items] | ||
Total | 0 | 13,992,000 |
FGI term loans payable | ||
Debt Instrument [Line Items] | ||
Total | 0 | 12,561,000 |
Long-term debt | 12,561,000 | |
Leaf Capital term loan payable | ||
Debt Instrument [Line Items] | ||
Total | 93,000 | 119,000 |
Huntington Term Loans | ||
Debt Instrument [Line Items] | ||
Total | $ 24,792,000 | $ 0 |
Debt - Term Loans (Narrative) (
Debt - Term Loans (Narrative) (Details) - USD ($) | 9 Months Ended | |||||
Jul. 22, 2022 | Apr. 24, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Oct. 20, 2020 | |
Debt Instrument [Line Items] | ||||||
Principal amount advanced | $ 25,586,000 | $ 2,065,000 | ||||
Revolving debt | 4,052,000 | $ 4,424,000 | ||||
Loans payable balance | 13,992,000 | |||||
Long-term debt | 23,295,000 | 21,251,000 | ||||
Interest rate swaps: | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap initial aggregate amount | $ 25,000,000 | $ 25,000,000 | ||||
Fixed interest rate (as a percent) | 2.95% | |||||
Fair value of interest rate swap | $ 805,000 | |||||
Huntington Term Loans | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment | 104,000 | |||||
Huntington Term Loans | Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment | 156,000 | |||||
FGI term loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 12,561,000 | |||||
Write off of deferred loan costs | 1,234,000 | |||||
Prepayment fees | $ 348,000 | |||||
Loans Payable | Huntington Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | 75,000,000 | |||||
Debt instrument, commitments | $ 25,000,000 | |||||
Stated interest rate | 0% | 4.75% | ||||
Percentage of equity interests | 65% | |||||
Loans Payable | Huntington Term Loans | Huntington Loans | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount advanced | $ 38,689,000 | |||||
Loans Payable | Huntington Term Loans | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 50% | |||||
Loans Payable | Huntington Term Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 1% | |||||
Loans Payable | Huntington Term Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 2.80% | |||||
Loans Payable | Huntington Term Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 3.80% | |||||
Loans Payable | Wells Fargo term loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 377% | |||||
Loans Payable | FGI term loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 825% | |||||
Loans Payable | Leaf Capital term loan payable | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 175,000 | |||||
Stated interest rate | 550% | |||||
Debt term | 60 months | |||||
Loans Payable | Huntington Loans | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 4.08% | |||||
Revolving Credit Facility | Wells Fargo term loans payable | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 425% | |||||
Revolving Credit Facility | Huntington Revolving Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 25,000,000 | |||||
Principal amount advanced | 13,689,000 | |||||
Debt instrument, amount available | $ 25,000,000 | |||||
Revolving loan commitment | 25,000,000 | |||||
Revolving Credit Facility | Huntington Capex Loan | ||||||
Debt Instrument [Line Items] | ||||||
Revolving loan commitment | $ 25,000,000 | |||||
SOFR Loans | Huntington Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 0% | |||||
SOFR Loans | Huntington Term Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 1.80% | |||||
SOFR Loans | Huntington Term Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis points | 2.30% | |||||
Term Loan | Huntington Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 25,000,000 | |||||
Principal amount advanced | 25,000,000 | |||||
Term Loan | Huntington Term Loans | Period Three | ||||||
Debt Instrument [Line Items] | ||||||
Periodic payment | $ 208,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,251,000 | $ 396,000 | $ 4,658,000 | $ 3,290,000 |
Effective tax rate | 48.70% | (13.60%) | ||
Valuation allowance against net deferred tax assets | $ 4,257,000 | 4,257,000 | ||
Valuation Allowance [Line Items] | ||||
Valuation allowance against net deferred tax assets | $ 4,257,000 | 4,257,000 | ||
Effective tax rate | 48.70% | (13.60%) | ||
Income tax expense | $ 1,251,000 | $ 396,000 | 4,658,000 | 3,290,000 |
Wells Fargo term loans payable | Revolving Credit Facility | ||||
Valuation Allowance [Line Items] | ||||
Available rate revolving loans | $ 396,000 | $ 396,000 | ||
UNITED STATES [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred Income Tax Liabilities, Net | 718,000 | 718,000 | ||
MEXICO | ||||
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets, Net | 841,000 | 841,000 | ||
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Net | 841,000 | 841,000 | ||
CANADA | ||||
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets, Net | 252,000 | 252,000 | ||
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Net | $ 252,000 | $ 252,000 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 436,530 | |
Shares surrendered (in shares) | 48,286 | 7,237 |
Grant price (in USD per share) | $ 10 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Applicable vesting period | 3 years | |
Unrecognized compensation expense | $ 4,199 | $ 3,664 |
Expected weighted-average term | 2 years | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average remaining contractual term | 1 year 9 months 18 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock (Details) - Restricted Stock - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Number of Shares, Restricted Stock | |||||
Unvested beginning balance (in shares) | 459,420 | ||||
Granted (in shares) | 287,485 | ||||
Vested (in shares) | (226,201) | ||||
Forfeited (in shares) | (13,957) | ||||
Unvested ending balance (in shares) | 506,747 | 506,747 | |||
Weighted Average Grant Date Fair Value, Restricted Stock | |||||
Unvested beginning balance (in dollars per share) | $ 10.43 | $ 10.43 | $ 9.79 | ||
Granted (in dollars per share) | 10.39 | ||||
Vested (in dollars per share) | 9.01 | ||||
Forfeited (in dollars per share) | 11.28 | ||||
Unvested beginning balance (in dollars per share) | $ 10.43 | $ 10.43 | |||
General and Administrative Expense | |||||
Weighted Average Grant Date Fair Value, Restricted Stock | |||||
Compensation costs | $ 623,000 | $ 578,000 | $ 1,660,000 | $ 1,322,000 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Appreciation Rights (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted Average Grant Date Fair Value | |||
Grant price (in USD per share) | $ 10 | ||
Stock Appreciation Rights (SARs) | |||
Number of Shares | |||
Beginning Balance (in shares) | 177,016 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Ending Balance (in shares) | 177,016 | ||
Exercisable at the end of period (in shares) | 177,016 | ||
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 2.57 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | 2.57 | ||
Exercisable at the period end (in dollars per share) | $ 2.57 | ||
Stock Appreciation Rights (SARs) | General and Administrative Expense | |||
Weighted Average Grant Date Fair Value | |||
Compensation costs | $ 34,000 | $ 45,000 | $ 94,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Interest rate swaps: - USD ($) | Sep. 30, 2022 | Jul. 22, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap initial aggregate amount | $ 25,000,000 | $ 25,000,000 |
Fixed interest rate (as a percent) | 2.95% |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Derivative Instruments (Details) - Designated as Hedging Instrument $ in Thousands | Sep. 30, 2022 USD ($) |
Foreign Exchange | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Asset Derivatives | $ 0 |
Liability Derivatives | 19,560 |
Foreign Exchange | Prepaid expenses other current assets | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Asset Derivatives | 0 |
Foreign Exchange | Other non-current assets | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Asset Derivatives | 0 |
Foreign Exchange | Accrued other liabilities | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liability Derivatives | 542 |
Foreign Exchange | Other non-current liabilities | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liability Derivatives | 84 |
Interest rate swaps: | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Asset Derivatives | 24,792 |
Liability Derivatives | 0 |
Interest rate swaps: | Prepaid expenses other current assets | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Asset Derivatives | 40 |
Interest rate swaps: | Other non-current assets | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Asset Derivatives | 765 |
Interest rate swaps: | Accrued other liabilities | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liability Derivatives | 0 |
Interest rate swaps: | Other non-current liabilities | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Liability Derivatives | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Unrealized Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Foreign Exchange | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative | $ (626) | $ 0 | $ (626) | $ 0 |
Interest rate swaps: | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative | 767 | 0 | 767 | 0 |
Cost of goods sold | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | 0 | 0 | 0 | 0 |
Selling, general and administrative expense | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | 0 | 0 | 0 | 0 |
Interest expense | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | $ (38) | $ 0 | $ (38) | $ 0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 108,672 | $ 99,292 | $ 106,622 | $ 100,095 | $ 102,103 | $ 93,932 |
Post Retirement Benefit Plan Items | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 884 | 1,184 | $ 1,075 | $ 1,375 | ||
Other comprehensive loss before reclassifications | 0 | |||||
Amounts reclassified from accumulated other comprehensive income | (242) | (242) | ||||
Income tax benefit | $ 51 | $ 51 |