Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 $0.01 | |
Security Exchange Name | NYSEAMER | |
Trading Symbol | CMT | |
Entity Common Stock, Shares Outstanding (in shares) | 9,001,199 | |
Entity Central Index Key | 0001026655 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 97,725 | $ 98,735 | $ 197,232 | $ 189,326 |
Cost of sales | 77,163 | 85,690 | 158,927 | 161,774 |
Gross margin | 20,562 | 13,045 | 38,305 | 27,552 |
Selling, general and administrative expense | 10,492 | 8,660 | 20,161 | 17,155 |
Operating income | 10,070 | 4,385 | 18,144 | 10,397 |
Other income and expense | ||||
Interest expense, net | 293 | 459 | 649 | 1,000 |
Net periodic post-retirement benefit | (52) | (31) | (105) | (62) |
Total other expense | 241 | 428 | 544 | 938 |
Income before taxes | 9,829 | 3,957 | 17,600 | 9,459 |
Income tax expense | 1,893 | 1,769 | 3,812 | 3,407 |
Net income | $ 7,936 | $ 2,188 | $ 13,788 | $ 6,052 |
Net income per common share: | ||||
Basic (in USD per share) | $ 0.93 | $ 0.26 | $ 1.62 | $ 0.71 |
Diluted (in USD per share) | $ 0.91 | $ 0.26 | $ 1.59 | $ 0.71 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 7,936,000 | $ 2,188,000 | $ 13,788,000 | $ 6,052,000 |
Post-retirement benefit plan adjustments: | ||||
Amortization of net actuarial loss | 5,000 | 45,000 | 11,000 | 87,000 |
Amortization of prior service credits | (124,000) | (125,000) | (248,000) | (248,000) |
Income tax benefit | 25,000 | 17,000 | 50,000 | 34,000 |
Comprehensive income | 8,691,000 | 2,125,000 | 14,591,000 | 5,925,000 |
Foreign currency hedging derivatives: | ||||
Other comprehensive income: | ||||
Unrealized hedge gain | 620,000 | 0 | 1,107,000 | 0 |
Income tax benefit | (137,000) | 0 | (241,000) | 0 |
Interest rate swaps: | ||||
Other comprehensive income: | ||||
Unrealized hedge gain | 463,000 | 0 | 156,000 | 0 |
Income tax benefit | $ (97,000) | $ 0 | $ (32,000) | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 14,162,000 | $ 4,183,000 |
Accounts receivable, net | 50,368,000 | 44,261,000 |
Inventories, net | 24,394,000 | 23,871,000 |
Foreign tax receivable | 3,486,000 | 2,680,000 |
Prepaid expenses and other current assets | 6,156,000 | 5,670,000 |
Total current assets | 98,566,000 | 80,665,000 |
Right of use asset | 4,731,000 | 5,114,000 |
Property, plant and equipment, net | 82,179,000 | 83,267,000 |
Goodwill | 17,376,000 | 17,376,000 |
Intangibles, net | 6,810,000 | 7,619,000 |
Other non-current assets | 4,441,000 | 4,574,000 |
Total Assets | 214,103,000 | 198,615,000 |
Current liabilities: | ||
Current portion of long-term debt | 1,205,000 | 1,208,000 |
Revolving debt | 0 | 1,864,000 |
Accounts payable | 29,811,000 | 29,586,000 |
Taxes payable | 2,293,000 | 1,236,000 |
Contract liability | 2,279,000 | 1,395,000 |
Compensation and related benefits | 9,790,000 | 9,101,000 |
Accrued other liabilities | 7,776,000 | 6,407,000 |
Total current liabilities | 53,154,000 | 50,797,000 |
Other non-current liabilities | 3,304,000 | 3,516,000 |
Long-term debt | 22,384,000 | 22,986,000 |
Post-retirement benefits liability | 4,963,000 | 5,191,000 |
Total Liabilities | 83,805,000 | 82,490,000 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at June 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,603,072 at June 30, 2023 and 8,417,656 at December 31, 2022 | 86,000 | 84,000 |
Paid-in capital | 41,829,000 | 40,342,000 |
Accumulated other comprehensive income, net of income taxes | 3,856,000 | 3,053,000 |
Treasury stock - at cost, 3,962,348 shares at June 30, 2023 and 3,866,451 shares at December 31, 2022 | (31,006,000) | (29,099,000) |
Retained earnings | 115,533,000 | 101,745,000 |
Total Stockholders’ Equity | 130,298,000 | 116,125,000 |
Total Liabilities and Stockholders’ Equity | $ 214,103,000 | $ 198,615,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 8,603,072 | 8,417,656 |
Treasury stock (in shares) | 3,962,348 | 3,866,451 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock Outstanding | Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Interest rate swaps: | Treasury Stock, Common | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2021 | 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 | 6,052,000 | 6,052,000 | |||||
Change in post-retirement benefits, net of tax | (127,000) | (127,000) | |||||
Purchase of treasury stock | (482,000) | (482,000) | |||||
Restricted stock vested (in shares) | 228,022 | ||||||
Restricted stock vested | 2,000 | $ 2,000 | |||||
Share-based compensation | 1,082,000 | 1,082,000 | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 8,415,476 | ||||||
Ending Balance at Jun. 30, 2022 | 106,622,000 | $ 84,000 | 39,095,000 | 948,000 | (29,099,000) | 95,594,000 | |
Beginning Balance (in shares) at Mar. 31, 2022 | 8,270,162 | ||||||
Beginning Balance at Mar. 31, 2022 | 104,397,000 | $ 83,000 | 38,514,000 | 1,011,000 | (28,617,000) | 93,406,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,188,000 | 2,188,000 | |||||
Change in post-retirement benefits, net of tax | $ (63,000) | (63,000) | |||||
Purchase of treasury stock (in shares) | (48,286) | ||||||
Purchase of treasury stock | $ (482,000) | $ (482,000) | |||||
Restricted stock vested (in shares) | 193,600 | ||||||
Restricted stock vested | 1,000 | $ 1,000 | |||||
Share-based compensation | 581,000 | 581,000 | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 8,415,476 | ||||||
Ending Balance at Jun. 30, 2022 | $ 106,622,000 | $ 84,000 | 39,095,000 | 948,000 | $ (29,099,000) | 95,594,000 | |
Beginning Balance (in shares) at Dec. 31, 2022 | 8,417,656 | 8,417,656 | |||||
Beginning Balance at Dec. 31, 2022 | $ 116,125,000 | $ 84,000 | 40,342,000 | 3,053,000 | (29,099,000) | 101,745,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 13,788,000 | 13,788,000 | |||||
Change in post-retirement benefits, net of tax | (187,000) | (187,000) | |||||
Change in foreign currency hedge, net of tax | $ 866,000 | 866,000 | |||||
Change in interest rate swaps, net of tax | $ 124,000 | ||||||
Purchase of treasury stock (in shares) | (48,286) | (95,897) | |||||
Purchase of treasury stock | $ (1,907,000) | (1,907,000) | |||||
Stock Issued During Period, Shares, Other | 31,332 | ||||||
Stock Issued During Period, Value, Other | 0 | $ 0 | |||||
Restricted stock vested (in shares) | 249,981 | ||||||
Restricted stock vested | 2,000 | $ 2,000 | |||||
Share-based compensation | $ 1,487,000 | 1,487,000 | |||||
Ending Balance (in shares) at Jun. 30, 2023 | 8,603,072 | 8,603,072 | |||||
Ending Balance at Jun. 30, 2023 | $ 130,298,000 | $ 86,000 | 41,829,000 | 3,856,000 | (31,006,000) | 115,533,000 | |
Beginning Balance (in shares) at Mar. 31, 2023 | 8,420,340 | ||||||
Beginning Balance at Mar. 31, 2023 | 122,733,000 | $ 84,000 | 41,073,000 | 3,101,000 | (29,122,000) | 107,597,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,936,000 | 7,936,000 | |||||
Change in post-retirement benefits, net of tax | (94,000) | (94,000) | |||||
Change in foreign currency hedge, net of tax | 483,000 | 483,000 | |||||
Change in interest rate swaps, net of tax | $ 366,000 | ||||||
Purchase of treasury stock (in shares) | (94,579) | ||||||
Purchase of treasury stock | (1,884,000) | (1,884,000) | |||||
Stock Issued During Period, Shares, Other | 27,330 | ||||||
Stock Issued During Period, Value, Other | 0 | $ 0 | |||||
Restricted stock vested (in shares) | 249,981 | ||||||
Restricted stock vested | 2,000 | $ 2,000 | |||||
Share-based compensation | $ 756,000 | 756,000 | |||||
Ending Balance (in shares) at Jun. 30, 2023 | 8,603,072 | 8,603,072 | |||||
Ending Balance at Jun. 30, 2023 | $ 130,298,000 | $ 86,000 | $ 41,829,000 | $ 3,856,000 | $ (31,006,000) | $ 115,533,000 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income tax benefit | $ 25,000 | $ 17,000 | $ 50,000 | $ 34,000 |
Interest rate swaps: | ||||
Income tax benefit | 97,000 | 0 | 32,000 | 0 |
Foreign currency hedging derivatives: | ||||
Income tax benefit | $ 137,000 | $ 0 | $ 241,000 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 13,788 | $ 6,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,346 | 6,219 |
Loss on disposal of assets | 80 | 0 |
Share-based compensation | 1,487 | 1,082 |
Losses on foreign currency remeasurement | 296 | 175 |
Change in operating assets and liabilities: | ||
Accounts receivable | (6,107) | (18,831) |
Inventories | (523) | (3,828) |
Prepaid and other assets | (190) | 265 |
Accounts payable | 700 | 10,318 |
Accrued and other liabilities | 3,492 | 1,622 |
Post-retirement benefits liability | (465) | (128) |
Net cash provided by operating activities | 18,904 | 2,946 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (4,511) | (8,623) |
Net cash used in investing activities | (4,511) | (8,623) |
Cash flows from financing activities: | ||
Gross repayments on revolving line of credit | (38,962) | (73,559) |
Gross borrowings on revolving line of credit | 37,098 | 75,879 |
Payments for taxes related to net share settlement of equity awards | (1,907) | (482) |
Payment of principal on term loans | (643) | (2,193) |
Net cash used in financing activities | (4,414) | (355) |
Net change in cash and cash equivalents | 9,979 | (6,032) |
Cash and cash equivalents at beginning of period | 4,183 | 6,146 |
Cash and cash equivalents at end of period | 14,162 | 114 |
Cash paid for: | ||
Interest | 653 | 886 |
Income taxes | 3,347 | 3,761 |
Non-cash investing activities: | ||
Fixed asset purchases in accounts payable and other non-current liabilities | $ 848 | $ 731 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, and the results of operations and cash flows for the six months ended June 30, 2023. 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, 2022, 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 entitled 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 $14,162,000 cash on hand at June 30, 2023 and had $4,183,000 cash on hand at December 31, 2022. Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at June 30, 2023 and December 31, 2022, respectively. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $445,000 at June 30, 2023 and $502,000 at December 31, 2022. 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 $555,000 at June 30, 2023 and $433,000 at December 31, 2022. 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 $861,000 at June 30, 2023, and $344,000 at December 31, 2022. Contract assets are classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the six months ended June 30, 2023, the Company recognized no impairments on contract assets. For the six months ended June 30, 2023, the Company recognized $1,672,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2022. 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 six months ended June 30, 2023 and June 30, 2022, 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 six months ended June 30, 2023 and June 30, 2022, 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 June 30, 2023 and December 31, 2022 of $915,000 and $889,000, 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, 2022. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $6,397,000 at June 30, 2023 and $6,625,000 at December 31, 2022. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTSCurrent 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 the previous “incurred loss” model and generally will result in the earlier recognition of allowances for losses. 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. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
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 stockholders 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 Six months ended 2023 2022 2023 2022 Net income $ 7,936 $ 2,188 $ 13,788 $ 6,052 Less: net income allocated to participating securities 57 40 110 121 Net income available to common shareholders $ 7,879 $ 2,148 $ 13,678 $ 5,931 Weighted average common shares outstanding — basic 8,500 8,329 8,460 8,298 Effect of weighted average dilutive securities 130 — 164 — Weighted average common and potentially issuable common shares outstanding — diluted 8,630 8,329 8,624 8,298 Basic net income per common share $ 0.93 $ 0.26 $ 1.62 $ 0.71 Diluted net income per common share $ 0.91 $ 0.26 $ 1.59 $ 0.71 |
Major Customers
Major Customers | 6 Months Ended |
Jun. 30, 2023 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |
Major Customers | MAJOR CUSTOMERS The Company had five major customers during the six months ended June 30, 2023, 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 six months ended June 30, 2023 and 2022 (in thousands): Three months ended Six months ended 2023 2022 2023 2022 BRP product sales $ 12,457 $ 14,498 $ 24,601 $ 26,705 BRP tooling sales 157 187 738 337 Total BRP sales 12,614 14,685 25,339 27,042 Navistar product sales 17,751 14,110 37,012 28,132 Navistar tooling sales — 2,260 185 2,270 Total Navistar sales 17,751 16,370 37,197 30,402 PACCAR product sales 8,721 9,159 18,922 17,905 PACCAR tooling sales 662 74 730 185 Total PACCAR sales 9,383 9,233 19,652 18,090 UFP product sales 9,157 11,856 19,932 24,543 UFP tooling sales — — — — Total UFP sales 9,157 11,856 19,932 24,543 Volvo product sales 15,362 11,885 30,971 22,800 Volvo tooling sales 755 — 799 87 Total Volvo sales 16,117 11,885 31,770 22,887 Other product sales 32,255 31,809 62,602 63,133 Other tooling sales 448 2,897 740 3,229 Total other sales 32,703 34,706 63,342 66,362 Total product sales 95,703 93,317 194,040 183,218 Total tooling sales 2,022 5,418 3,192 6,108 Total sales $ 97,725 $ 98,735 $ 197,232 $ 189,326 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventories, net consisted of the following (in thousands): June 30, December 31, 2022 Raw materials $ 16,698 $ 16,523 Work in process 2,503 2,929 Finished goods 5,193 4,419 Total $ 24,394 $ 23,871 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, Six months ended 2023 2022 2023 2022 Operating lease cost $ 436 $ 422 $ 863 $ 845 Short-term lease cost 496 321 965 707 Total net lease cost $ 932 $ 743 $ 1,828 $ 1,552 Other supplemental balance sheet information related to leases was as follows (in thousands): June 30, December 31, 2022 Operating lease right of use assets $ 4,731 $ 5,114 Current operating lease liabilities (A) $ 2,130 $ 1,626 Noncurrent operating lease liabilities (B) 2,608 3,516 Total operating lease liabilities $ 4,738 $ 5,142 (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 June 30, 2023 December 31, 2022 Weighted average remaining lease term (in years): 2.75 3.6 Weighted average discount rate: 5.5 % 4.1 % For the six months ended June 30, 2023 and 2022, cash payments on amounts included in the measurement of lease liabilities were $1,058,000 and $845,000, respectively. During the six months ended June 30, 2023, the Company terminated a lease for the secondary warehouse in Monterrey, Mexico. As a result, the Company wrote off approximately $1,548,000 and $1,660,000 of lease assets and lease liabilities, respectively, related to this lease. The Company then entered into a new lease related to the secondary warehouse in Monterrey, Mexico, which resulted in right of use assets obtained in exchange for new operating lease liabilities of $641,000. The Company also entered into a new lease related to a warehouse in Matamoros, Mexico, which resulted in additional right of use assets obtained in exchange for new operating lease liabilities of $1,172,000. During the six months ended June 30, 2022, there were no right of use assets obtained in exchange for new operating lease liabilities. Maturities of operating lease liabilities were as follows (in thousands): June 30, 2023 December 31, 2022 2023 (remainder of year) $ 1,062 $ 1,716 2024 2,138 1,722 2025 1,122 1,065 2026 594 979 2027 189 189 Total lease payments 5,105 5,671 Less: imputed interest (367) (529) Total lease obligations 4,738 5,142 Less: current obligations (2,130) (1,626) Long-term lease obligations $ 2,608 $ 3,516 |
Property, Plant & Equipment
Property, Plant & Equipment | 6 Months Ended |
Jun. 30, 2023 | |
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): June 30, 2023 December 31, 2022 Property, plant and equipment $ 205,016 $ 200,525 Accumulated depreciation (122,837) (117,258) Property, plant and equipment — net $ 82,179 $ 83,267 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 June 30, 2023 and 2022 was $2,521,000 and $2,485,000, respectively. Depreciation expense for the six months ended June 30, 2023 and 2022 was $5,499,000 and $5,002,000, respectively. Amounts invested in capital additions in progress were $5,280,000 and $7,396,000 at June 30, 2023 and December 31, 2022, respectively. At June 30, 2023 and December 31, 2022, purchase commitments for capital expenditures in progress were $2,761,000 and $2,812,000, respectively. |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | GOODWILL AND INTANGIBLES Goodwill activity for the six months ended June 30, 2023 consisted of the following (in thousands): Balance at December 31, 2022 $ 17,376 Additions — Impairment — Balance at June 30, 2023 $ 17,376 Intangibles, net at June 30, 2023 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (83) $ 167 Trademarks 10 Years 1,610 (879) 731 Non-competition agreement 5 Years 1,810 (1,810) — Developed technology 7 Years 4,420 (3,446) 974 Customer relationships 10-12 Years 9,330 (4,392) 4,938 Total $ 17,420 $ (10,610) $ 6,810 Intangibles, net at December 31, 2022 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (78) $ 172 Trademarks 10 Years 1,610 (798) 812 Non-competition agreement 5 Years 1,810 (1,795) 15 Developed technology 7 Years 4,420 (3,131) 1,289 Customer relationships 10-12 Years 9,330 (3,999) 5,331 Total $ 17,420 $ (9,801) $ 7,619 |
Post Retirement Benefits
Post Retirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
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 Six months ended 2023 2022 2023 2022 Pension expense: Multi-employer plan $ 274 $ 254 $ 513 $ 461 Defined contribution plan 441 386 969 751 Total pension expense 715 640 1,482 1,212 Health and life insurance: Interest cost 67 49 132 99 Amortization of prior service credits (124) (125) (248) (248) Amortization of net actuarial loss 5 45 11 87 Net periodic benefit credit (52) (31) (105) (62) Total post-retirement benefits expense $ 663 $ 609 $ 1,377 $ 1,150 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following (in thousands): June 30, December 31, Huntington term loans payable $ 23,854 $ 24,479 Leaf Capital term loan payable 67 85 Total 23,921 24,564 Less deferred loan costs (332) (370) Less current portion (1,205) (1,208) Long-term debt $ 22,384 $ 22,986 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION On May 13, 2021, The Company's stockholders 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 295,797 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. The Company follows the provisions of FASB ASC 718 requiring that compensation cost relating to share-based payment transactions be recognized in the financial statements. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award). During the six months ended June 30, 2023 employees withheld 95,897 shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting and exercising of awards. Employees withheld 48,286 shares during the six months ended June 30, 2022 to satisfy income tax withholding obligations in connection with the vesting and exercising of awards. 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 six months ended June 30, 2023: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 502,747 $ 10.46 Granted 179,580 15.98 Vested (249,981) 9.66 Forfeited (45,956) 12.46 Unvested balance at June 30, 2023 386,390 $ 13.34 At June 30, 2023 and 2022, there was $4,398,000 and $4,871,000, respectively, of total unrecognized compensation expense, related to Restricted Stock grants. The unrecognized compensation expense at June 30, 2023 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 June 30, 2023 and 2022 was $741,000 and $570,000, respectively. Total compensation cost related to Restricted Stock grants for the six months ended June 30, 2023 and 2022 was $1,466,000 and $1,037,000, respectively, all of which was recorded to selling, general and administrative expense. Performance Restricted Stock Awards The Company grants shares of its common stock to certain officers and key managers in the form of shares of performance-based restricted stock ("Performance Restricted Stock Awards"). 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 to the extent that the performance measures have been satisfied as of the last day of the performance period of the award. The total amount payable as of the award's vesting date is determined by the three year average Operational Income and Return on Capital Employed performance measure achievement as defined in the applicable award agreement. The Company adjusts compensation expense for actual forfeitures as they occur and for estimated performance measure achievement. The following summarizes the status of Performance Restricted Stock Awards and changes during the six months ended June 30, 2023: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 — $ — Granted 13,350 15.98 Vested — — Forfeited (1,613) 15.98 Unvested balance at June 30, 2023 11,737 $ 15.98 At June 30, 2023, there was $167,000 of total unrecognized compensation expense related to Performance Restricted Stock Awards. As of June 30, 2022, there was no unrecognized compensation expense related to Performance Restricted Stock Awards. The unrecognized compensation expense at June 30, 2023 is expected to be recognized over the weighted-average period of 2.7 years. Total compensation cost related to Performance Restricted Stock Awards for the three and six and months ended June 30, 2023 was $15,000 and $21,000, respectively, all of which was recorded to selling, general and administrative expense. 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 years 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 six months ended June 30, 2023 is as follows: Number of Weighted Average Exercise Price Outstanding as of December 31, 2022 177,016 $ 10.00 Granted — — Exercised (63,534) 10.00 Forfeited — — Outstanding at end of the period ended June 30, 2023 113,482 $ 10.00 Exercisable at end of the period ended June 30, 2023 113,482 $ 10.00 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This 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 June 30, 2023 and December 31, 2022 approximate fair value due to the short-term maturities of these financial instruments. As of June 30, 2023 and December 31, 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. The Company had Level 2 fair value measurements at June 30, 2023 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 June 30, 2023, 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 $ 973 Accrued other liabilities $ 552 Other non-current assets $ 49 Other non-current liabilities $ — Notional Contract values $ 13,332 $ 4,357 Interest rate swaps Prepaid expenses other current assets $ 468 Accrued other liabilities $ — Other non-current assets $ 453 Other non-current liabilities $ — Notional Contract values $ 23,854 $ — 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 $ 72 Accrued other liabilities $ 157 Other non-current assets $ — Other non-current liabilities $ — Notional contract values $ 3,379 $ 10,472 Interest rate swaps Prepaid expenses other current assets $ 280 Accrued other liabilities $ — Other non-current assets $ 485 Other non-current liabilities $ — Notional contract values $ 24,479 $ — The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended June 30, 2023 and 2022 (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 2023 2022 2023 2022 Foreign exchange contracts $ 1,366 $ — Cost of goods sold $ 679 $ — Selling, general and administrative expense $ 67 $ — Interest rate swaps $ 585 $ — Interest expense $ 122 $ — The following tables summarize the amount of unrealized and realized gain (loss) recognized in AOCI for the six months ended June 30, 2023 and 2022 (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 2023 2022 2023 2022 Foreign exchange contracts $ 1,985 $ — Cost of goods sold $ 799 $ — Selling, general and administrative expense $ 79 $ — Interest rate swaps $ 373 $ — Interest expense $ 217 $ — (A) The foreign currency derivative activity reclassified from AOCI 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 | 6 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in AOCI, net of tax, for the six months ended June 30, 2023 and 2022 (in thousands): 2022: Derivative Post Retirement Accumulated 2022: Balance at December 31, 2021 $ — $ 1,075 $ 1,075 Amounts reclassified from accumulated other comprehensive income — (161) (161) Income tax benefit — 34 34 Balance at June 30, 2022 $ — $ 948 $ 948 2023: Balance at December 31, 2022 $ 546 $ 2,507 $ 3,053 Other comprehensive income before reclassifications 2,358 — 2,358 Amounts reclassified from accumulated other comprehensive income (1,095) (237) (1,332) Income tax benefit (expense) (273) 50 (223) Balance at June 30, 2023 $ 1,536 $ 2,320 $ 3,856 |
Critical Accounting Policies _2
Critical Accounting Policies and Estimates (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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 entitled 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 $14,162,000 cash on hand at June 30, 2023 and had $4,183,000 cash on hand at December 31, 2022. |
Accounts Receivable Allowances | Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at June 30, 2023 and December 31, 2022, respectively. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $445,000 at June 30, 2023 and $502,000 at December 31, 2022. 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 $555,000 at June 30, 2023 and $433,000 at December 31, 2022. |
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 $861,000 at June 30, 2023, and $344,000 at December 31, 2022. Contract assets are classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the six months ended June 30, 2023, the Company recognized no impairments on contract assets. For the six months ended June 30, 2023, the Company recognized $1,672,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2022. |
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 six months ended June 30, 2023 and June 30, 2022, 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 quantitative approach. There were no impairment charges of the Company's goodwill for the six months ended June 30, 2023 and June 30, 2022, respectively. |
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 June 30, 2023 and December 31, 2022 of $915,000 and $889,000, 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, 2022. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $6,397,000 at June 30, 2023 and $6,625,000 at December 31, 2022. |
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 the previous “incurred loss” model and generally will result in the earlier recognition of allowances for losses. 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. |
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 June 30, 2023 and December 31, 2022 approximate fair value due to the short-term maturities of these financial instruments. As of June 30, 2023 and December 31, 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. The Company had Level 2 fair value measurements at June 30, 2023 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 June 30, 2023, the Company had no ineffective portion related to the cash flow hedges. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six months ended 2023 2022 2023 2022 Net income $ 7,936 $ 2,188 $ 13,788 $ 6,052 Less: net income allocated to participating securities 57 40 110 121 Net income available to common shareholders $ 7,879 $ 2,148 $ 13,678 $ 5,931 Weighted average common shares outstanding — basic 8,500 8,329 8,460 8,298 Effect of weighted average dilutive securities 130 — 164 — Weighted average common and potentially issuable common shares outstanding — diluted 8,630 8,329 8,624 8,298 Basic net income per common share $ 0.93 $ 0.26 $ 1.62 $ 0.71 Diluted net income per common share $ 0.91 $ 0.26 $ 1.59 $ 0.71 The computation of basic and diluted net income per participating share is as follows (in thousands, except for per share data): Three months ended Six months ended 2023 2022 2023 2022 Net income allocated to participating securities $ 57 $ 40 $ 110 $ 121 Weighted average participating shares outstanding — basic 61 156 68 170 Effect of dilutive securities — — — — Weighted average common and potentially issuable common shares outstanding — diluted 61 156 68 170 Basic net income per participating share $ 0.93 $ 0.26 $ 1.62 $ 0.71 Diluted net income per participating share $ 0.93 $ 0.26 $ 1.62 $ 0.71 |
Major Customers (Tables)
Major Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 six months ended June 30, 2023 and 2022 (in thousands): Three months ended Six months ended 2023 2022 2023 2022 BRP product sales $ 12,457 $ 14,498 $ 24,601 $ 26,705 BRP tooling sales 157 187 738 337 Total BRP sales 12,614 14,685 25,339 27,042 Navistar product sales 17,751 14,110 37,012 28,132 Navistar tooling sales — 2,260 185 2,270 Total Navistar sales 17,751 16,370 37,197 30,402 PACCAR product sales 8,721 9,159 18,922 17,905 PACCAR tooling sales 662 74 730 185 Total PACCAR sales 9,383 9,233 19,652 18,090 UFP product sales 9,157 11,856 19,932 24,543 UFP tooling sales — — — — Total UFP sales 9,157 11,856 19,932 24,543 Volvo product sales 15,362 11,885 30,971 22,800 Volvo tooling sales 755 — 799 87 Total Volvo sales 16,117 11,885 31,770 22,887 Other product sales 32,255 31,809 62,602 63,133 Other tooling sales 448 2,897 740 3,229 Total other sales 32,703 34,706 63,342 66,362 Total product sales 95,703 93,317 194,040 183,218 Total tooling sales 2,022 5,418 3,192 6,108 Total sales $ 97,725 $ 98,735 $ 197,232 $ 189,326 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories, net consisted of the following (in thousands): June 30, December 31, 2022 Raw materials $ 16,698 $ 16,523 Work in process 2,503 2,929 Finished goods 5,193 4,419 Total $ 24,394 $ 23,871 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows (in thousands): Three months ended June 30, Six months ended 2023 2022 2023 2022 Operating lease cost $ 436 $ 422 $ 863 $ 845 Short-term lease cost 496 321 965 707 Total net lease cost $ 932 $ 743 $ 1,828 $ 1,552 |
Supplemental Balance Sheet Information | Other supplemental balance sheet information related to leases was as follows (in thousands): June 30, December 31, 2022 Operating lease right of use assets $ 4,731 $ 5,114 Current operating lease liabilities (A) $ 2,130 $ 1,626 Noncurrent operating lease liabilities (B) 2,608 3,516 Total operating lease liabilities $ 4,738 $ 5,142 (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 June 30, 2023 December 31, 2022 Weighted average remaining lease term (in years): 2.75 3.6 Weighted average discount rate: 5.5 % 4.1 % For the six months ended June 30, 2023 and 2022, cash payments on amounts included in the measurement of lease liabilities were $1,058,000 and $845,000, respectively. During the six months ended June 30, 2023, the Company terminated a lease for the secondary warehouse in Monterrey, Mexico. As a result, the Company wrote off approximately $1,548,000 and $1,660,000 of lease assets and lease liabilities, respectively, related to this lease. The Company then entered into a new lease related to the secondary warehouse in Monterrey, Mexico, which resulted in right of use assets obtained in exchange for new operating lease liabilities of $641,000. The Company also entered into a new lease related to a warehouse in Matamoros, Mexico, which resulted in additional right of use assets obtained in exchange for new operating lease liabilities of $1,172,000. During the six months ended June 30, 2022, there were no right of use assets obtained in exchange for new operating lease liabilities. |
Maturities of lease liabilities | Maturities of operating lease liabilities were as follows (in thousands): June 30, 2023 December 31, 2022 2023 (remainder of year) $ 1,062 $ 1,716 2024 2,138 1,722 2025 1,122 1,065 2026 594 979 2027 189 189 Total lease payments 5,105 5,671 Less: imputed interest (367) (529) Total lease obligations 4,738 5,142 Less: current obligations (2,130) (1,626) Long-term lease obligations $ 2,608 $ 3,516 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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): June 30, 2023 December 31, 2022 Property, plant and equipment $ 205,016 $ 200,525 Accumulated depreciation (122,837) (117,258) Property, plant and equipment — net $ 82,179 $ 83,267 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill activity | Goodwill activity for the six months ended June 30, 2023 consisted of the following (in thousands): Balance at December 31, 2022 $ 17,376 Additions — Impairment — Balance at June 30, 2023 $ 17,376 |
Schedule of Intangible assets | Intangibles, net at June 30, 2023 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (83) $ 167 Trademarks 10 Years 1,610 (879) 731 Non-competition agreement 5 Years 1,810 (1,810) — Developed technology 7 Years 4,420 (3,446) 974 Customer relationships 10-12 Years 9,330 (4,392) 4,938 Total $ 17,420 $ (10,610) $ 6,810 Intangibles, net at December 31, 2022 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (78) $ 172 Trademarks 10 Years 1,610 (798) 812 Non-competition agreement 5 Years 1,810 (1,795) 15 Developed technology 7 Years 4,420 (3,131) 1,289 Customer relationships 10-12 Years 9,330 (3,999) 5,331 Total $ 17,420 $ (9,801) $ 7,619 |
Post Retirement Benefits (Table
Post Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six months ended 2023 2022 2023 2022 Pension expense: Multi-employer plan $ 274 $ 254 $ 513 $ 461 Defined contribution plan 441 386 969 751 Total pension expense 715 640 1,482 1,212 Health and life insurance: Interest cost 67 49 132 99 Amortization of prior service credits (124) (125) (248) (248) Amortization of net actuarial loss 5 45 11 87 Net periodic benefit credit (52) (31) (105) (62) Total post-retirement benefits expense $ 663 $ 609 $ 1,377 $ 1,150 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-term debt | Debt consists of the following (in thousands): June 30, December 31, Huntington term loans payable $ 23,854 $ 24,479 Leaf Capital term loan payable 67 85 Total 23,921 24,564 Less deferred loan costs (332) (370) Less current portion (1,205) (1,208) Long-term debt $ 22,384 $ 22,986 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 six months ended June 30, 2023: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 502,747 $ 10.46 Granted 179,580 15.98 Vested (249,981) 9.66 Forfeited (45,956) 12.46 Unvested balance at June 30, 2023 386,390 $ 13.34 |
Schedule of stock appreciation rights activity | A summary of the Company's stock appreciation rights activity for the six months ended June 30, 2023 is as follows: Number of Weighted Average Exercise Price Outstanding as of December 31, 2022 177,016 $ 10.00 Granted — — Exercised (63,534) 10.00 Forfeited — — Outstanding at end of the period ended June 30, 2023 113,482 $ 10.00 Exercisable at end of the period ended June 30, 2023 113,482 $ 10.00 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 $ 973 Accrued other liabilities $ 552 Other non-current assets $ 49 Other non-current liabilities $ — Notional Contract values $ 13,332 $ 4,357 Interest rate swaps Prepaid expenses other current assets $ 468 Accrued other liabilities $ — Other non-current assets $ 453 Other non-current liabilities $ — Notional Contract values $ 23,854 $ — |
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 June 30, 2023 and 2022 (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 2023 2022 2023 2022 Foreign exchange contracts $ 1,366 $ — Cost of goods sold $ 679 $ — Selling, general and administrative expense $ 67 $ — Interest rate swaps $ 585 $ — Interest expense $ 122 $ — The following tables summarize the amount of unrealized and realized gain (loss) recognized in AOCI for the six months ended June 30, 2023 and 2022 (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 2023 2022 2023 2022 Foreign exchange contracts $ 1,985 $ — Cost of goods sold $ 799 $ — Selling, general and administrative expense $ 79 $ — Interest rate swaps $ 373 $ — Interest expense $ 217 $ — (A) The foreign currency derivative activity reclassified from AOCI 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) | 6 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in AOCI, net of tax, for the six months ended June 30, 2023 and 2022 (in thousands): 2022: Derivative Post Retirement Accumulated 2022: Balance at December 31, 2021 $ — $ 1,075 $ 1,075 Amounts reclassified from accumulated other comprehensive income — (161) (161) Income tax benefit — 34 34 Balance at June 30, 2022 $ — $ 948 $ 948 2023: Balance at December 31, 2022 $ 546 $ 2,507 $ 3,053 Other comprehensive income before reclassifications 2,358 — 2,358 Amounts reclassified from accumulated other comprehensive income (1,095) (237) (1,332) Income tax benefit (expense) (273) 50 (223) Balance at June 30, 2023 $ 1,536 $ 2,320 $ 3,856 |
Critical Accounting Policies _3
Critical Accounting Policies and Estimates (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 0 | |
Accounts receivable for chargebacks | $ 445,000 | 502,000 |
Allowance for slow moving and obsolete inventory | 555,000 | 433,000 |
Amount of revenue from contract liabilities related to open jobs outstanding | 1,672,000 | |
Estimated liability for compensation claims | 915,000 | 889,000 |
Liability for post retirement healthcare benefits | 6,397,000 | 6,625,000 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 861,000 | 344,000 |
Cash and cash equivalents | $ 14,162,000 | $ 4,183,000 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Income (Loss) Available to Common Stockholders | ||||
Net Income (Loss) Attributable to Parent | $ 7,936 | $ 2,188 | $ 13,788 | $ 6,052 |
Less: net income allocated to participating securities | 57 | 40 | 110 | 121 |
Net income available to common shareholders | $ 7,879 | $ 2,148 | $ 13,678 | $ 5,931 |
Weighted average common shares outstanding - basic (in shares) | 8,500,000 | 8,329,000 | 8,460,000 | 8,298,000 |
Effect of dilutive securities (in shares) | 130,000 | 0 | 164,000 | 0 |
Weighted average common and potentially issuable common shares outstanding - diluted (in shares) | 8,630,000 | 8,329,000 | 8,624,000 | 8,298,000 |
Basic net income per share (in dollars per share) | $ 0.93 | $ 0.26 | $ 1.62 | $ 0.71 |
Diluted net income per share (in dollars per share) | $ 0.91 | $ 0.26 | $ 1.59 | $ 0.71 |
Participating Securities | ||||
Net Income (Loss) Available to Common Stockholders | ||||
Less: net income allocated to participating securities | $ 57 | $ 40 | $ 110 | $ 121 |
Weighted average common shares outstanding - basic (in shares) | 61,000 | 156,000 | 68,000 | 170,000 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Weighted average common and potentially issuable common shares outstanding - diluted (in shares) | 61,000 | 156,000 | 68,000 | 170,000 |
Basic net income per share (in dollars per share) | $ 0.93 | $ 0.26 | $ 1.62 | $ 0.71 |
Diluted net income per share (in dollars per share) | $ 0.93 | $ 0.26 | $ 1.62 | $ 0.71 |
Major Customers (Details)
Major Customers (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) customer | Jun. 30, 2022 USD ($) | |
Revenue, Major Customer [Line Items] | ||||
Number of major customers | customer | 5 | |||
Net sales | $ 97,725 | $ 98,735 | $ 197,232 | $ 189,326 |
Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 95,703 | 93,317 | 194,040 | 183,218 |
Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 2,022 | 5,418 | 3,192 | 6,108 |
UFP | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 9,157 | 11,856 | 19,932 | 24,543 |
UFP | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 9,157 | 11,856 | 19,932 | 24,543 |
UFP | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Navistar | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 17,751 | 16,370 | 37,197 | 30,402 |
Navistar | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 17,751 | 14,110 | 37,012 | 28,132 |
Navistar | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 0 | 2,260 | 185 | 2,270 |
Volvo | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 16,117 | 11,885 | 31,770 | 22,887 |
Volvo | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 15,362 | 11,885 | 30,971 | 22,800 |
Volvo | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 755 | 0 | 799 | 87 |
PACCAR | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 9,383 | 9,233 | 19,652 | 18,090 |
PACCAR | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 8,721 | 9,159 | 18,922 | 17,905 |
PACCAR | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 662 | 74 | 730 | 185 |
BRP | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 12,614 | 14,685 | 25,339 | 27,042 |
BRP | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 12,457 | 14,498 | 24,601 | 26,705 |
BRP | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 157 | 187 | 738 | 337 |
Other Customers | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 32,703 | 34,706 | 63,342 | 66,362 |
Other Customers | Product | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 32,255 | 31,809 | 62,602 | 63,133 |
Other Customers | Tooling | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | $ 448 | $ 2,897 | $ 740 | $ 3,229 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 16,698 | $ 16,523 |
Work in process | 2,503 | 2,929 |
Finished goods | 5,193 | 4,419 |
Total | $ 24,394 | $ 23,871 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Options to extend the lease, period | 5 years | ||||
Weighted average discount rate, Operating leases | 5.50% | 5.50% | 4.10% | ||
Weighted average remaining lease term, Operating leases | 2 years 9 months | 2 years 9 months | 3 years 7 months 6 days | ||
Lease, Cost [Abstract] | |||||
Operating lease cost | $ 436 | $ 422 | $ 863 | $ 845 | |
Short-Term Lease, Cost | 496 | $ 321 | 965 | 707 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating lease right of use assets | 4,731 | 4,731 | $ 5,114 | ||
Current operating lease liabilities | $ 2,130 | $ 2,130 | $ 1,626 | ||
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 | $ 2,608 | $ 2,608 | $ 3,516 | ||
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 | $ 4,738 | $ 4,738 | $ 5,142 | ||
Weighted average remaining lease term, Operating leases | 2 years 9 months | 2 years 9 months | 3 years 7 months 6 days | ||
Weighted average discount rate, Operating leases | 5.50% | 5.50% | 4.10% | ||
Cash Flow, Operating Activities, Lessee [Abstract] | |||||
Operating cash flows from operating leases | $ 1,058 | $ 845 | |||
Lessee, Operating Lease, Description [Abstract] | |||||
Operating leases to be paid in remainder of fiscal year | $ 1,062 | 1,062 | |||
Operating leases to be paid in year one | 2,138 | 2,138 | $ 1,716 | ||
Operating leases to be paid in year two | 1,122 | 1,122 | 1,722 | ||
Operating leases to be paid in year three | 594 | 594 | 1,065 | ||
Operating leases to be paid in year four | 189 | 189 | 979 | ||
Operating leases to be paid in year five | 189 | ||||
Total lease payments | 5,105 | 5,105 | 5,671 | ||
Less: imputed interest | (367) | (367) | (529) | ||
Total operating lease liabilities | 4,738 | 4,738 | 5,142 | ||
Less: current obligations | 2,130 | 2,130 | 1,626 | ||
Long-term lease obligations | $ 2,608 | $ 2,608 | $ 3,516 | ||
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 | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment | $ 205,016,000 | $ 205,016,000 | $ 200,525,000 | ||
Accumulated depreciation | (122,837,000) | (122,837,000) | (117,258,000) | ||
Property, plant and equipment — net | 82,179,000 | 82,179,000 | 83,267,000 | ||
Depreciation expense | 2,521,000 | $ 2,485,000 | 5,499,000 | $ 5,002,000 | |
Capital additions in progress | $ 5,280,000 | 5,280,000 | $ 7,396,000 | ||
Purchase commitments for capital expenditures in progress | $ 2,761,000 | $ 2,812,000 |
Goodwill and Intangibles - Good
Goodwill and Intangibles - Goodwill activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 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 | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 17,420,000 | $ 17,420,000 | $ 17,420,000 | ||
Accumulated Amortization | (10,610,000) | (10,610,000) | (9,801,000) | ||
Net Carrying Amount | 6,810,000 | 6,810,000 | $ 7,619,000 | ||
Intangible asset amortization expense | $ 396,000 | $ 487,000 | $ 809,000 | $ 974,000 | |
Trade name | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 25 years | 25 years | 25 years | ||
Gross Carrying Amount | $ 250,000 | $ 250,000 | $ 250,000 | ||
Accumulated Amortization | (83,000) | (83,000) | (78,000) | ||
Net Carrying Amount | $ 167,000 | $ 167,000 | $ 172,000 | ||
Trademarks | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 10 years | 10 years | 10 years | ||
Gross Carrying Amount | $ 1,610,000 | $ 1,610,000 | $ 1,610,000 | ||
Accumulated Amortization | (879,000) | (879,000) | (798,000) | ||
Net Carrying Amount | $ 731,000 | $ 731,000 | $ 812,000 | ||
Non-competition agreement | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 5 years | 5 years | 5 years | ||
Gross Carrying Amount | $ 1,810,000 | $ 1,810,000 | $ 1,810,000 | ||
Accumulated Amortization | (1,810,000) | (1,810,000) | (1,795,000) | ||
Net Carrying Amount | $ 0 | $ 0 | $ 15,000 | ||
Developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 7 years | 7 years | 7 years | ||
Gross Carrying Amount | $ 4,420,000 | $ 4,420,000 | $ 4,420,000 | ||
Accumulated Amortization | (3,446,000) | (3,446,000) | (3,131,000) | ||
Net Carrying Amount | 974,000 | 974,000 | 1,289,000 | ||
Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 9,330,000 | 9,330,000 | 9,330,000 | ||
Accumulated Amortization | (4,392,000) | (4,392,000) | (3,999,000) | ||
Net Carrying Amount | $ 4,938,000 | $ 4,938,000 | $ 5,331,000 | ||
Customer relationships | Minimum | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 10 years | 10 years | 10 years | ||
Customer relationships | Maximum | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 12 years | 12 years | 12 years |
Post Retirement Benefits (Detai
Post Retirement Benefits (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension, health and life insurance expense: | ||||
Multi-employer plan | $ 274,000 | $ 254,000 | $ 513,000 | $ 461,000 |
Defined contribution plan | 441,000 | 386,000 | 969,000 | 751,000 |
Total pension expense | 715,000 | 640,000 | 1,482,000 | 1,212,000 |
Interest cost | 67,000 | 49,000 | 132,000 | 99,000 |
Amortization of prior service credits | (124,000) | (125,000) | (248,000) | (248,000) |
Amortization of net actuarial loss | 5,000 | 45,000 | 11,000 | 87,000 |
Net periodic benefit credit | (52,000) | (31,000) | (105,000) | (62,000) |
Total post-retirement benefits expense | 663,000 | $ 609,000 | 1,377,000 | $ 1,150,000 |
Pension Plan | ||||
Pension, health and life insurance expense: | ||||
Payments made to pension plans | 1,669,000 | |||
Pension plan payments expected to be made in fiscal year | 1,285,000 | 1,285,000 | ||
Pension plan payments accrued | 274,000 | 274,000 | ||
Other Postretirement Benefits Plan | ||||
Pension, health and life insurance expense: | ||||
Payments for post retirement healthcare and life insurance | 349,000 | |||
Pension plan payments expected to be made in fiscal year | 1,085,000 | 1,085,000 | ||
Pension plan payments accrued | $ 1,085,000 | $ 1,085,000 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | |||
Total | $ 23,921,000 | $ 24,564,000 | |
Less deferred loan costs | (332,000) | (370,000) | |
Less current portion | (1,205,000) | (1,208,000) | |
Long-term debt | 22,384,000 | 22,986,000 | |
FGI term loans payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 11,584,000 | ||
Leaf Capital term loan payable | |||
Debt Instrument [Line Items] | |||
Total | 67,000 | 85,000 | |
Huntington Term Loans | |||
Debt Instrument [Line Items] | |||
Total | $ 23,854,000 | $ 24,479,000 |
Debt - Term Loans (Narrative) (
Debt - Term Loans (Narrative) (Details) - USD ($) | 6 Months Ended | ||||
Jul. 22, 2022 | Apr. 24, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Principal amount advanced | $ 643,000 | $ 2,193,000 | |||
Revolving debt | 0 | 6,744,000 | $ 1,864,000 | ||
Loans payable balance | 12,792,000 | ||||
Long-term debt | 22,384,000 | 22,986,000 | |||
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 | $ 921,000 | $ 765,000 | |||
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 | ||||
Huntington Term Loans | Period Three | |||||
Debt Instrument [Line Items] | |||||
Periodic payment | 208,000 | ||||
FGI term loans payable | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 11,584,000 | ||||
Loans Payable | Huntington Term Loans | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 75,000,000 | ||||
Debt instrument, commitments | $ 25,000,000 | ||||
Stated interest rate | 0% | ||||
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 | 3.30% | ||||
Loans Payable | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 675% | ||||
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 | 6.60% | 612% | |||
Revolving Credit Facility | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 575% | ||||
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 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 | ||||
Stated interest rate | 475% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,893,000 | $ 1,769,000 | $ 3,812,000 | $ 3,407,000 |
Effective tax rate | 21.70% | 36% | ||
Valuation Allowance [Line Items] | ||||
Effective tax rate | 21.70% | 36% | ||
Income tax expense | 1,893,000 | $ 1,769,000 | $ 3,812,000 | $ 3,407,000 |
Performance Shares | ||||
Valuation Allowance [Line Items] | ||||
Vested (in dollars per share) | $ 0 | |||
UNITED STATES [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred Income Tax Liabilities, Net | 2,406,000 | $ 2,406,000 | ||
MEXICO | ||||
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets, Net | 893,000 | 893,000 | ||
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Net | 893,000 | 893,000 | ||
CANADA | ||||
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Assets, Net | 163,000 | 163,000 | ||
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Net | $ 163,000 | $ 163,000 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 295,797 | |
Shares surrendered (in shares) | 95,897 | 48,286 |
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 | $ 4,398 | $ 4,871 |
Expected weighted-average term | 2 years | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 0 | |
Average remaining contractual term | 10 months 24 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 167 | |
Expected weighted-average term | 2 years 8 months 12 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Restricted Stock | |||||
Number of Shares, Restricted Stock | |||||
Unvested beginning balance (in shares) | 502,747 | ||||
Granted (in shares) | 179,580 | ||||
Vested (in shares) | (249,981) | ||||
Forfeited (in shares) | (45,956) | ||||
Unvested ending balance (in shares) | 386,390 | 386,390 | |||
Weighted Average Grant Date Fair Value, Restricted Stock | |||||
Unvested beginning balance (in dollars per share) | $ 13.34 | $ 13.34 | $ 10.46 | ||
Granted (in dollars per share) | 15.98 | ||||
Vested (in dollars per share) | 9.66 | ||||
Forfeited (in dollars per share) | 12.46 | ||||
Unvested beginning balance (in dollars per share) | $ 13.34 | $ 13.34 | |||
Restricted Stock | General and Administrative Expense | |||||
Weighted Average Grant Date Fair Value, Restricted Stock | |||||
Compensation costs | $ 741,000 | $ 570,000 | $ 1,466,000 | $ 1,037,000 | |
Performance Shares | |||||
Number of Shares, Restricted Stock | |||||
Unvested beginning balance (in shares) | 0 | ||||
Granted (in shares) | 13,350 | ||||
Vested (in shares) | 0 | ||||
Forfeited (in shares) | (1,613) | ||||
Unvested ending balance (in shares) | 11,737 | 11,737 | |||
Weighted Average Grant Date Fair Value, Restricted Stock | |||||
Unvested beginning balance (in dollars per share) | $ 15.98 | $ 15.98 | $ 0 | ||
Granted (in dollars per share) | 15.98 | ||||
Vested (in dollars per share) | 0 | ||||
Forfeited (in dollars per share) | 15.98 | ||||
Unvested beginning balance (in dollars per share) | $ 15.98 | $ 15.98 | |||
Performance Shares | General and Administrative Expense | |||||
Weighted Average Grant Date Fair Value, Restricted Stock | |||||
Compensation costs | $ 15,000 | $ 21,000 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Appreciation Rights (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | |
Weighted Average Exercise Price | ||
Grant price (in USD per share) | $ 10 | |
Stock Appreciation Rights (SARs) | ||
Number of Shares | ||
Beginning Balance (in shares) | shares | 177,016 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (63,534) | |
Forfeited (in shares) | shares | 0 | |
Ending Balance (in shares) | shares | 113,482 | |
Exercisable at the end of period (in shares) | shares | 113,482 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 10 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 10 | |
Forfeited (in dollars per share) | 0 | |
Ending balance (in dollars per share) | 10 | |
Exercisable at the period end (in dollars per share) | $ 10 | |
Unrecognized compensation expense | $ | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | 1,447,000 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 622,000 | |
Stock Appreciation Rights (SARs) | General and Administrative Expense | ||
Weighted Average Exercise Price | ||
Compensation costs | $ | $ 33,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Interest rate swaps: - USD ($) | Jun. 30, 2023 | 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 - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Foreign Exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset Derivatives | $ 13,332 | $ 3,379 |
Liability Derivatives | 4,357 | 10,472 |
Foreign Exchange | Prepaid expenses other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset Derivatives | 973 | 72 |
Foreign Exchange | Other non-current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset Derivatives | 49 | 0 |
Foreign Exchange | Accrued other liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability Derivatives | 552 | 157 |
Foreign Exchange | Other non-current liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability Derivatives | 0 | 0 |
Interest rate swaps: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset Derivatives | 23,854 | 24,479 |
Liability Derivatives | 0 | 0 |
Interest rate swaps: | Prepaid expenses other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset Derivatives | 468 | 280 |
Interest rate swaps: | Other non-current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset Derivatives | 453 | 485 |
Interest rate swaps: | Accrued other liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability Derivatives | 0 | 0 |
Interest rate swaps: | Other non-current liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability Derivatives | $ 0 | $ 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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
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 | $ 1,366 | $ 0 | $ 1,985 | $ 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 | 585 | 0 | 373 | 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 | 679 | 0 | 799 | 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 | 67 | 0 | 79 | 0 |
Interest expense | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | $ 122 | $ 0 | $ 217 | $ 0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Details) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 130,298,000 | $ 106,622,000 | $ 122,733,000 | $ 116,125,000 | $ 104,397,000 | $ 100,095,000 |
Other comprehensive loss before reclassifications | 2,358,000 | |||||
Income tax benefit | (223,000) | 34,000 | ||||
Amounts reclassified from accumulated other comprehensive income | 1,332,000 | 161,000 | ||||
Post Retirement Benefit Plan Items | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 2,320,000 | 948,000 | 2,507,000 | 1,075,000 | ||
Other comprehensive loss before reclassifications | 0 | |||||
Amounts reclassified from accumulated other comprehensive income | (237,000) | (161,000) | ||||
Income tax benefit | 50,000 | 34,000 | ||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 1,536,000 | 0 | 546,000 | 0 | ||
Other comprehensive loss before reclassifications | 2,358,000 | |||||
Income tax benefit | 273,000 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | (1,095,000) | 0 | ||||
Accumulated Other Comprehensive Income | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 3,856,000 | $ 948,000 | $ 3,101,000 | $ 3,053,000 | $ 1,011,000 | $ 1,075,000 |