Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-16263 | ||
Entity Registrant Name | MARINE PRODUCTS CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-2572419 | ||
Entity Address, Address Line One | 2801 BUFORD HIGHWAY NE, SUITEĀ 300 | ||
Entity Address, City or Town | ATLANTA | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30329 | ||
City Area Code | 404 | ||
Local Phone Number | 321-7910 | ||
Title of 12(b) Security | COMMON STOCK | ||
Trading Symbol | MPX | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 111,062,568 | ||
Entity Common Stock, Shares Outstanding | 33,975,976 | ||
Entity Central Index Key | 0001129155 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 19,804 | $ 8,745 |
Marketable securities | 2,966 | |
Accounts receivable, net | 6,607 | 3,872 |
Inventories | 41,553 | 46,770 |
Income taxes receivable | 907 | 452 |
Prepaid expenses and other current assets | 2,056 | 1,795 |
Current assets | 70,927 | 64,600 |
Property, plant and equipment, net | 14,796 | 14,552 |
Goodwill | 3,308 | 3,308 |
Other intangibles, net | 465 | 465 |
Marketable securities | 4,699 | |
Deferred income taxes | 3,990 | 3,325 |
Other assets | 11,278 | 9,931 |
Total assets | 104,764 | 100,880 |
Liabilities | ||
Accounts payable | 3,886 | 4,673 |
Accrued expenses and other liabilities | 13,155 | 13,494 |
Current liabilities | 17,041 | 18,167 |
Pension liabilities | 9,980 | 7,045 |
Other long-term liabilities | 531 | 456 |
Total liabilities | 27,552 | 25,668 |
Commitments and contingencies (Note 10) | ||
Stockholders' Equity | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.10 par value, 74,000,000 shares authorized, issued and outstanding - 33,869,817 shares in 2019, 34,328,486 shares in 2018 | 3,387 | 3,433 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 76,573 | 73,954 |
Accumulated other comprehensive loss | (2,748) | (2,175) |
Total stockholders' equity | 77,212 | 75,212 |
Total liabilities and stockholders' equity | $ 104,764 | $ 100,880 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, shares issued | 33,869,817 | 34,328,486 |
Common stock, shares outstanding | 33,869,817 | 34,328,486 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net sales | $ 292,136 | $ 298,616 | $ 267,316 |
Cost of goods sold | 226,742 | 232,293 | 208,296 |
Gross profit | 65,394 | 66,323 | 59,020 |
Selling, general and administrative expenses | 31,259 | 30,936 | 29,261 |
Operating income | 34,135 | 35,387 | 29,759 |
Interest income | 323 | 268 | 229 |
Income before income taxes | 34,458 | 35,655 | 29,988 |
Income tax provision | 6,219 | 7,167 | 10,688 |
Net income | $ 28,239 | $ 28,488 | $ 19,300 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 0.83 | $ 0.83 | $ 0.55 |
Diluted (in dollars per share) | 0.83 | 0.83 | 0.55 |
Dividends paid per share (in dollars per share) | $ 0.58 | $ 0.50 | $ 0.33 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 28,239 | $ 28,488 | $ 19,300 |
Other comprehensive income, net of taxes: | |||
Pension adjustment | (166) | (242) | 215 |
Unrealized gain (loss) on securities, net of reclassification adjustments | 7 | 47 | (13) |
Comprehensive income | $ 28,080 | $ 28,293 | $ 19,502 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2016 | $ 3,486 | $ 64,141 | $ (2,182) | $ 65,445 | |
Balance (in shares) at Dec. 31, 2016 | 34,855,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 18 | $ 2,664 | 2,682 | ||
Stock issued for stock incentive plans, net (in shares) | 184,000 | ||||
Stock purchased and retired | $ (47) | (2,664) | (3,810) | (6,521) | |
Stock purchased and retired (in shares) | (467,000) | ||||
Net income | 19,300 | 19,300 | |||
Pension adjustment, net of taxes | 215 | 215 | |||
Unrealized gain (loss) on securities, net of taxes and reclassification adjustment | (13) | (13) | |||
Dividends declared | (11,504) | (11,504) | |||
Balance at Dec. 31, 2017 | $ 3,457 | 68,127 | (1,980) | 69,604 | |
Balance (in shares) at Dec. 31, 2017 | 34,572,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 19 | 2,070 | 2,089 | ||
Stock issued for stock incentive plans, net (in shares) | 190,000 | ||||
Stock purchased and retired | $ (43) | (2,070) | (5,409) | (7,522) | |
Stock purchased and retired (in shares) | (434,000) | ||||
Net income | 28,488 | 28,488 | |||
Pension adjustment, net of taxes | (242) | (242) | |||
Unrealized gain (loss) on securities, net of taxes and reclassification adjustment | 47 | 47 | |||
Dividends declared | (17,252) | (17,252) | |||
Balance at Dec. 31, 2018 | $ 3,433 | 73,954 | (2,175) | $ 75,212 | |
Balance (in shares) at Dec. 31, 2018 | 34,328,000 | 34,328,486 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 13 | 2,110 | $ 2,123 | ||
Stock issued for stock incentive plans, net (in shares) | 129,000 | ||||
Stock purchased and retired | $ (59) | $ (2,110) | (6,278) | (8,447) | |
Stock purchased and retired (in shares) | (587,000) | ||||
Net income | 28,239 | 28,239 | |||
Pension adjustment, net of taxes | (166) | (166) | |||
Unrealized gain (loss) on securities, net of taxes and reclassification adjustment | 7 | 7 | |||
Dividends declared | (19,756) | (19,756) | |||
Balance at Dec. 31, 2019 | $ 3,387 | 76,573 | (2,748) | $ 77,212 | |
Balance (in shares) at Dec. 31, 2019 | 33,870,000 | 33,869,817 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of accounting standard (Note 1) | $ 414 | $ (414) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 28,239 | $ 28,488 | $ 19,300 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 2,090 | 1,820 | 1,526 |
Gain on sale of equipment and property | (8) | ||
(Accretion) of discount/ amortization of premium related to marketable securities | (5) | 213 | 425 |
Stock-based compensation expense | 2,123 | 2,089 | 2,682 |
Deferred income tax (benefit) provision | (620) | 378 | 1,519 |
(Increase) decrease in assets: | |||
Accounts receivable | (2,735) | (821) | (1,964) |
Inventories | 5,217 | (8,764) | 4,482 |
Prepaid expenses and other current assets | (261) | 301 | (273) |
Income taxes receivable | (455) | 262 | (685) |
Other non-current assets | (1,355) | (563) | (912) |
Increase (decrease) in liabilities: | |||
Accounts payable | (787) | (689) | 199 |
Other accrued expenses | (386) | (505) | 1,760 |
Other long-term liabilities | 2,852 | 566 | 1,588 |
Net cash provided by operating activities | 33,917 | 22,775 | 29,639 |
INVESTING ACTIVITIES | |||
Capital expenditures | (2,334) | (2,154) | (2,410) |
Proceeds from sale of assets | 8 | ||
Sales and maturities of marketable securities | 7,978 | 21,423 | 18,067 |
Purchases of marketable securities | (299) | (16,209) | (22,214) |
Net cash provided by (used for) investing activities | 5,345 | 3,060 | (6,549) |
FINANCING ACTIVITIES | |||
Payment of dividends | (19,756) | (17,252) | (11,504) |
Cash paid for common stock purchased and retired | (8,447) | (7,522) | (6,521) |
Net cash used for financing activities | (28,203) | (24,774) | (18,025) |
Net increase in cash and cash equivalents | 11,059 | 1,061 | 5,065 |
Cash and cash equivalents at beginning of year | 8,745 | 7,684 | 2,619 |
Cash and cash equivalents at end of year | $ 19,804 | $ 8,745 | $ 7,684 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation and Presentation The consolidated financial statements included herein may not necessarily be indicative of the future results of operations, financial position and cash flows of Marine Products. The Company has only one reportable segment ā its Powerboat Manufacturing business. The Companyās results of operations and its financial condition are not significantly reliant upon any single customer or product model. No single dealer accounted for more than 10 percent of net sales during 2019, 2018 or 2017. Net sales to the Companyās international dealers were approximately $17.0 million in 2019, $19.4 million in 2018, and $16.9 million in 2017. Common Stock Preferred Stock Share Repurchases Dividend Use of Estimates in the Preparation of Financial Statements Sales Recognition ā Advertising Cash and Cash Equivalents Marketable Securities Management determined the appropriate classification of debt securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Debt securities were classified as available-for-sale because the Company did not have the intent to hold the securities to maturity. Available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of taxes, reported as a separate component of stockholdersā equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest and dividends on available-for-sale securities are included in interest income. Net realized gains (losses) on marketable securities totaled $4,000 in 2019, $(81,000) in 2018 and $30,000 in 2017. Of the total (losses) gains realized, reclassification from other comprehensive income totaled approximately $4,000 in 2019, $(81,000) in 2018, and $30,000 in 2017. There were no gross unrealized gains on marketable securities as of December 31, 2019 and gross unrealized gains totaled $3,000 as of December 31, 2018. There were no gross unrealized losses on marketable securities as of December 31, 2019 and gross unrealized losses totaled $12,000 as of December 31, 2018. The net unrealized loss on marketable securities totaled $9,000 as of December 31, 2018. The amortized cost basis, fair value and net unrealized loss of the available-for-sale securities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 ā 2018 ā ā Amortized ā ā ā ā Net ā Amortized ā ā ā ā Net ā ā Cost ā Fair ā Unrealized ā Cost ā Fair ā Unrealized Type of Securities Basis Value ā Loss Basis Value ā Loss (in thousands) ā ā ā ā ā ā Municipal Obligations ā $ ā ā $ ā ā $ ā ā $ 1,490 ā $ 1,490 ā $ ā Corporate Obligations ā ā ā ā ā ā ā 6,184 ā 6,175 ā (9) Total ā $ ā ā $ ā ā $ ā ā $ 7,674 ā $ 7,665 ā $ (9) ā Municipal obligations consisted primarily of municipal notes rated AA- or higher ranging in maturity from less than one year to over 20 years. Corporate obligations consisted primarily of debentures and notes issued by other companies ranging in maturity from one Accounts Receivable Inventories Property, Plant and Equipment Goodwill and Other Intangibles no Investments Warranty Costs one ā ā ā ā ā ā ā ā (in thousands) 2019 2018 Balance at beginning of year ā $ 5,607 ā $ 5,373 Less: Payments made during the year ā (4,004) ā (3,944) Add: Warranty provision for the current year ā 3,788 ā 3,901 Changes to warranty provision for prior years ā 19 ā 277 Balance at end of year ā $ 5,410 ā $ 5,607 ā Insurance Accruals Research and Development Costs Repurchase Obligations Income Taxes Stock-Based Compensation Earnings per Share Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: ā ā ā ā ā ā ā ā ā ā ā (In thousands) 2019 2018 2017 Net income available for stockholders ā $ 28,239 ā $ 28,488 ā $ 19,300 Less: Adjustments for earnings attributable to participating securities ā (669) ā (762) ā (595) Net income used in calculating earnings per share ā $ 27,570 ā $ 27,726 ā $ 18,705 ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding (including participating securities) ā 34,061 ā 34,529 ā 34,843 Adjustment for participating securities ā (831) ā (959) ā (1,091) Shares used in calculating diluted earnings per share ā 33,230 ā 33,570 ā 33,752 ā Fair Value of Financial Instruments Concentration of Suppliers Recent Accounting Pronouncements - During the year ended December 31, 2019, the FASB issued the following Accounting Standards Updates (ASUs): Recently Adopted Accounting Standards: ā Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The Company adopted ASC 842, Leases and all the related amendments (ānew lease standardā) on January 1, 2019 by recognizing on its balance sheet, a right -of-use asset and lease liabilities each totaling approximately $200 thousand, for all of its leases with terms greater than 12 months. The Company adopted the standard on January 1, 2019 using the optional transition method with no cumulative-effect adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards that were in effect for those periods. The adoption of the standard did not have a material impact on the Companyās consolidated statements of operations and consolidated statements of cash flows. See Note 13: Leases in the Notes to Consolidated Financial Statements for expanded disclosures. ā ASU No. 2017-08 ā Receivables āNonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments are to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company changed its investment strategy in the first quarter of 2019 and no longer holds investments in callable debt securities. The Company adopted the standard in the first quarter of 2019 and adoption did not have a material impact on its consolidated financial statements. ā ASU No. 2018-02ā Income StatementāReporting Comprehensive Income (Topic 220)āReclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments provide an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company adopted the standard in the first quarter of 2019 and elected to reclassify approximately $414 thousand of stranded tax effects related to its pension plan and unrealized gain on its available-for-sale debt securities from AOCI to retained earnings. ā ASU No. 2018-07 ā Compensation āStock Compensation (Topic 718) āImprovements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASU 718 to include share-based payments issued to nonemployees for goods or services, thereby substantially aligning the accounting for share-based payments to nonemployees and employees. The Company adopted these provisions in the first quarter of 2019 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2020 and later: ā ASU No. 2016-13, Financial Instruments āCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU introduced a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for recognition. The expected credit losses are adjusted each period for changes in expected lifetime. The Company adopted the provisions of the standard in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ā ASU No. 2017-04 āIntangibles āGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unitās fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted these provisions in the first quarter of 2020, on a prospective basis. ā ASU No. 2018-15 ā Intangibles āGoodwill and Other āInternal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments reduce the complexity for the accounting for costs of implementing a cloud computing service arrangement and align the requirements for capitalizing implementation costs that are incurred in a hosting arrangement that is a service contract with the costs incurred to develop or obtain internal-use software. The Company adopted these provisions in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ā ASU No. 2019-12 ā Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the exceptions to the incremental approach for intra-period tax allocation in certain situations, requirement to recognize a deferred tax liability for a change in the status of a foreign investment, and the general methodology for computing income taxes in an interim period when year-to date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes with regard to franchise tax, evaluation of step up in the tax basis goodwill in certain business combinations, allocating current and deferred tax expense to legal entities that are not subject to tax and enacted change in tax laws or rates. The amendments are effective for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years. The company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. |
Net Sales
Net Sales | 12 Months Ended |
Dec. 31, 2019 | |
Net Sales | |
Net Sales | NOTE 2: Net Sales Accounting Policy - Nature of goods - ā Boats and accessories (domestic sales) ā upon delivery and acceptance by the dealer. ā Boats and accessories (international sales) ā upon delivery to shipping port. ā Parts ā upon shipment/delivery to carrier. Payment terms - seven ten When the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the goods have been delivered to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to the Companyās arrangements with its customers. Significant judgments Determining the transaction price - ā Inputs: Current model year boat sales, total potential program incentive percentage, prior model year results of dealer incentive activity (i.e., incentive earned as a percentage of total incentive potential). ā Assumption: Current model year incentive activity will closely reflect prior model year actual results, adjusted as necessary for dealer purchasing trends or economic factors. Other Disaggregation of revenues The following table disaggregates our sales by major source: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Boats and accessories ā $ 287,837 ā $ 294,537 ā $ 263,275 Parts ā 4,299 ā 4,079 ā 4,041 Net sales ā $ 292,136 ā $ 298,616 ā $ 267,316 ā The following table disaggregates our revenues between domestic and international: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Domestic ā $ 275,133 ā $ 279,175 ā $ 250,394 International ā 17,003 ā 19,441 ā 16,922 Net sales ā $ 292,136 ā $ 298,616 ā $ 267,316 ā Timing of revenue recognition for each of the periods presented is shown below: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Products transferred at a point in time ā $ 292,136 ā $ 298,616 ā $ 267,316 Products transferred over time ā ā ā ā ā ā Net sales ā $ 292,136 ā $ 298,616 ā $ 267,316 ā Contract balances - ā ā ā ā ā ā ā ā (in thousands) 2019 2018 Deferred revenue ā $ 295 ā $ 496 ā Substantially all of the amounts of deferred revenue as of December 31, 2019 and December 31, 2018 were recognized as sales during the following quarter, when control transferred. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable consist of the following: ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Trade receivables ā $ 2,319 ā $ 2,397 Other ā 4,308 ā 1,500 Total ā 6,627 ā 3,897 Less: allowance for doubtful accounts ā (20) ā (25) Net accounts receivable ā $ 6,607 ā $ 3,872 ā Trade receivables consist primarily of balances related to the sales of boats which are shipped pursuant to āfloor-plan financingā programs with qualified lenders. Other receivables consist primarily of rebate receivables from various suppliers and also a state incentive receivable in 2019. Changes in the Companyās allowance for doubtful accounts are disclosed in Schedule II on page 69 of this report. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | NOTE 4: INVENTORIES Inventories consist of the following: ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Raw materials ā $ 24,993 ā $ 26,874 Work in process ā 7,731 ā 10,671 Finished goods ā 8,829 ā 9,225 Total inventories ā $ 41,553 ā $ 46,770 ā |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5: PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are presented at cost, net of accumulated depreciation, and consist of the following: ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā ā ā ā ā ā December 31, Useful Lives 2019 2018 (in thousands) ā ā ā ā ā ā Land N/A ā $ 878 ā $ 878 Buildings 7-40 ā 20,552 ā 19,705 Operating equipment and property 3-15 ā 11,891 ā 11,016 Furniture and fixtures 5-7 ā 1,999 ā 1,785 Vehicles 5-10 ā 7,734 ā 7,381 Gross property, plant and equipment ā ā 43,054 ā 40,765 Less: accumulated depreciation ā ā (28,258) ā (26,213) Net property, plant and equipment ā ā ā $ 14,796 ā $ 14,552 ā Depreciation expense was $2,090,000 in 2019, $1,820,000 in 2018 and $1,526,000 in 2017. The Companyās accounts payable for purchases of property and equipment was immaterial as of December 31, 2019, December 31, 2018 and December 31, 2017. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 6: ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Accrued payroll and related expenses ā $ 3,021 ā $ 3,257 Accrued sales incentives and discounts ā 3,716 ā 3,547 Accrued warranty costs ā 5,410 ā 5,607 Deferred revenue ā 295 ā 496 Other ā 713 ā 587 Total accrued expenses and other liabilities ā $ 13,155 ā $ 13,494 ā |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | NOTE 7: INCOME TAXES The Tax Cuts and Jobs Act (āthe Actā), effective January 1, 2018, included a reduction to the US federal tax rate from 35 percent to 21 percent, adjustments to deductible compensation of our executive officers and the elimination of the US manufacturing deduction. Among other international provisions, the Act provides for a deduction on certain qualifying income related to export sales of property or services referred to as Foreign Derived Intangible Income (āFDIIā). In 2017, and the first nine months of 2018, the Company recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in SAB 118. In 2017, the Company recorded tax expense of $1.7 million related to the enactment-date effects of the Act that included adjusting deferred tax assets and liabilities for the new corporate income tax rate as well as accounting for the effects on executive compensation arrangements. In 2018, the Company adjusted the enactment-date provisional amounts by decreasing tax expense by $0.1 million. These adjustments were recorded as components of income tax expense from continuing operations. The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Act in 2017 and throughout 2018 and as of December 31, 2018, has completed its accounting for all of the enactment-date income tax effects of the Act. As of December 31, 2019, the Company has analyzed the provisions of the Act that have been in effect from January 1, 2018 forward and incorporated its best estimates of these provisions within the annual effective tax rate for 2019. Additionally, the Company estimated a tax benefit associated with FDII of $168 thousand, which has been reflected in the 2019 tax expense. The FDII benefit is based on current guidance and is subject to change, based upon future guidance being issued, in addition to the refinement of the calculations to be completed in connection with the filing of the Companyās 2019 US federal income tax return. The following table lists the components of the provision for income taxes: ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2019 2018 2017 (in thousands) ā ā ā Current provision: ā ā ā Federal ā $ 6,637 ā $ 6,173 ā $ 8,623 State ā 202 ā 616 ā 546 Deferred (benefit) provision: ā ā ā Federal ā (715) ā 384 ā 1,511 State ā 95 ā (6) ā 8 Total income tax provision ā $ 6,219 ā $ 7,167 ā $ 10,688 ā A reconciliation between the federal statutory rate and Marine Productsā effective tax rate is as follows: ā ā ā ā ā ā ā ā ā Years ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 1.0 1.5 1.1 Research and experimentation credit (1.2) (0.8) (0.8) Non-deductible expenses ā (0.7) ā 0.4 ā (3.5) ā Change in contingencies (0.1) 0.4 0.5 Adjustments related to the Act 0.0 (0.3) 5.6 Adjustments related to vesting of restricted stock (1.5) (1.8) (2.4) Other (0.5) (0.3) 0.1 Effective tax rate 18.0 % 20.1 % 35.6 % ā Significant components of the Companyās deferred tax assets and liabilities are as follows: ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Deferred tax assets: ā ā Warranty costs ā $ 1,190 ā $ 1,233 Sales incentives and discounts ā 404 ā 317 Stock-based compensation ā 696 ā 667 Pension ā 2,002 ā 1,337 State NOLās ā ā 484 ā ā 588 State credits ā ā 1,818 ā ā 2,794 All others ā 560 ā 559 Valuation allowance ā (1,818) ā (2,794) Total deferred tax assets ā 5,336 ā 4,701 Deferred tax liabilities: ā ā Depreciation and amortization expense ā (947) ā (1,009) Basis differences in joint venture ā (399) ā (367) Net deferred tax assets ā $ 3,990 ā $ 3,325 ā Total net income tax payments were $7,330,000 in 2019, $6,290,000 in 2018, and $9,733,000 in 2017. As of December 31, 2019, the Company had net operating loss carry forwards related to state income taxes of approximately $11.1 million and other state credits of approximately $2.3 million (gross) that will expire between 2020 and 2036. The Company does not have a valuation allowance related to net operating loss carryforwards due to implemented tax planning strategies. The Company has a valuation allowance against the corresponding deferred tax asset on all state tax credits because, at this time, the Company does not expect to utilize them. The Companyās policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties were immaterial as of December 31, 2019 and 2018. During 2018, the Company recognized a decrease in its liability for unrecognized tax benefits related primarily to state income taxes, settlements, and voluntary disclosure agreements. The liability, if recognized, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: ā ā ā ā ā ā ā ā ā 2019 2018 Balance at January 1 ā $ 393,000 ā $ 243,000 (Decreases) additions based on tax positions related to the current year ā (28,000) ā 81,000 (Decreases) additions for tax positions of prior years ā (7,000) ā 69,000 Balance at December 31 ā $ 358,000 ā $ 393,000 ā It is reasonably possible that the amount of the unrecognized benefits with respect to the Companyās unrecognized tax positions will increase or decrease in the next 12 months. These changes may be the result of, among other things, state tax settlements under voluntary disclosure agreements. However, quantification of an estimated range cannot be made at this time. The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases, the uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. The Companyās 2016 through 2019 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 8: ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gain (Loss) ā ā ā ā ā Pension ā on ā ā ā ā Adjustment Securities Total (in thousands) ā ā ā Balance at December 31, 2017 ā $ (1,936) ā $ (44) ā $ (1,980) Change during 2018: ā ā ā ā Before-tax amount ā (390) ā (20) ā (410) Tax expense ā 85 ā 4 ā 89 Reclassification adjustment, net of taxes ā ā ā Amortization of net loss ā 63 ā ā ā 63 Net realized gain ā ā ā 63 ā 63 Total activity in 2018 ā (242) ā 47 ā (195) Balance at December 31, 2018 ā $ (2,178) ā $ 3 ā $ (2,175) Change during 2019: ā ā ā Adoption of accounting standard (Note 1) ā ā (404) ā ā (10) ā ā (414) Before-tax amount ā (300) ā 13 ā (287) Tax benefit ā 66 ā (3) ā 63 Reclassification adjustment, net of taxes ā ā ā Amortization of net loss ā 68 ā ā ā 68 Net realized loss ā ā ā (3) ā (3) Total activity in 2019 ā (570) ā (3) ā (573) Balance at December 31, 2019 ā $ (2,748) ā $ ā ā $ (2,748) ā |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9: FAIR VALUE MEASUREMENTS The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Companyās assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 ā Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 ā Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 ā Unobservable inputs developed using the Companyās estimates and assumptions, which reflect those that market participants would use. The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis on the balance sheet as of December 31, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurements at December 31, 2019 with: ā ā ā ā ā ā ā ā ā ā ā Significant ā ā ā ā ā ā ā ā Quoted prices in ā other ā Significant ā ā ā ā ā active markets for ā observable ā unobservable (in thousands) Total identical assets inputs inputs ā ā ā (Level 1) (Level 2) ā (Level 3) Assets: ā ā ā ā Available-for-sale securities: ā ā ā ā Municipal Obligations ā $ ā ā $ ā ā $ ā ā $ ā Corporate Obligations ā ā ā ā ā ā ā ā ā ā $ ā ā $ ā ā $ ā ā $ ā Investments measured at Net Asset Value- Trading securities ā $ 6,716 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurements at December 31, 2018 with: ā ā ā ā ā ā ā ā ā ā ā Significant ā ā ā ā ā ā ā ā Quoted prices in ā other ā Significant ā ā ā ā ā active markets for ā observable ā unobservable (in thousands) Total identical assets inputs inputs ā ā ā (Level 1) (Level 2) ā (Level 3) Assets: ā ā ā ā Available-for-sale securities: ā ā ā ā Municipal Obligations ā $ 1,490 ā $ ā ā $ 1,490 ā $ ā Corporate Obligations ā 6,175 ā ā ā 6,175 ā ā ā ā $ 7,665 ā $ ā ā $ 7,665 ā $ ā Investments measured at Net Asset Value- Trading securities ā $ 5,518 ā ā ā ā The Company determines the fair value of the marketable securities that are available-for-sale through quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. The trading securities are comprised of SERP assets, as described in Note 11, and are recorded primarily at their net cash surrender values calculated using their net asset values, which approximate fair value, as provided by the issuing insurance company. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Companyās policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2019 there were no significant transfers in or out of levels 1 2 3 The carrying amount of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short-term maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10: COMMITMENTS AND CONTINGENCIES Lawsuits Dealer Floor Plan Financing The Company repurchased of dealer inventory totaling $3.4 million under contractual agreements during 2019 and had no material repurchases during 2018. The Company recorded the repurchase of inventory totaling $3.4 million as a result of dealer defaults. As of December 31, 2019, no liability related to this repurchase remains outstanding to floor plan lenders. During the 2019, the Company redistributed $3.1 million of these boats among existing and replacement dealers. The remaining repurchased boats are included in inventory as of December 31, 2019 and are recorded at a net realizable value of $0.3 million. The Company recorded $0.1 million for costs associated with these repurchases including a reserve for estimated transportation costs and the write down of repurchased inventory to net realizable value. Management continues to monitor the risk of additional defaults and resulting repurchase obligations based in part on information provided by the third-party floor plan lenders and will adjust the guarantee liability at the end of each reporting period based on information reasonably available at that time. The Company currently has an agreement with one of the floor plan lenders whereby the contractual repurchase limit is to not exceed 16 percent of the average net receivables financed by the floor plan lender for dealers during the prior 12 month period, which was $13.1 million as of December 31, 2019. The Company has contractual repurchase agreements with additional lenders with an aggregate maximum repurchase obligation of approximately $7.7 million, with various expiration and cancellation terms of less than one year, for an aggregate repurchase obligation with all financing institutions of approximately $20.8 million as of December 31, 2019. This repurchase obligation risk is mitigated by the value of the boat repurchased. Income Taxes Employment Agreements |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | NOTE 11: EMPLOYEE BENEFIT PLANS Supplemental Executive Retirement Plan (āSERPā) The Company classifies the SERP assets as trading securities as described in Note 1. The fair value of these assets totaled $6,716,000 as of December 31, 2019 and $5,518,000 as of December 31, 2018. The SERP assets are reported in other assets on the consolidated balance sheets and changes related to the fair value of the assets are included in selling, general and administrative expenses in the consolidated statements of operations. Trading (losses) gains related to the SERP assets totaled $1,197,000 in 2019, $(544,000) in 2018 and $470,000 in 2017. The SERP liabilities are recorded on the balance sheet in pension liabilities with any change in the fair value of the SERP liabilities recorded as selling, general and administrative expenses in the consolidated statements of operations. Retirement Income Plan The Companyās fair value of the plan assets exceeded the projected benefit obligation for its Retirement Income Plan by $881,000 and thus the plan was over-funded as of December 31, 2019. The following table sets forth the funded status of the Retirement Income Plan and the amounts recognized in Marine Productsā consolidated balance sheets: ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā ACCUMULATED BENEFIT OBLIGATION, END OF YEAR ā $ 6,433 ā $ 5,833 ā ā ā ā ā ā ā CHANGE IN PROJECTED BENEFIT OBLIGATION: ā ā Benefit obligation at beginning of year ā $ 5,833 ā $ 6,379 Service cost ā ā ā ā Interest cost ā 255 ā 251 Actuarial loss ā 570 ā (554) Benefits paid ā (225) ā (243) Projected benefit obligation at end of year ā $ 6,433 ā $ 5,833 CHANGE IN PLAN ASSETS: ā ā Fair value of plan assets at beginning of year ā $ 6,802 ā $ 6,722 Actual return on plan assets ā 737 ā (447) Employer contributions ā ā ā 770 Benefits paid ā (225) ā (243) Fair value of plan assets at end of year ā $ 7,314 ā $ 6,802 Funded status at end of year ā $ 881 ā $ 969 ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā ā ā ā ā AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: ā ā ā ā ā ā Noncurrent assets ā $ 881 ā $ 969 Current liabilities ā ā ā ā Noncurrent liabilities ā ā ā ā ā ā $ 881 ā $ 969 ā The funded status of the Retirement Income Plan was recorded in the consolidated balance sheets in other assets as of both December 31, 2019 and December 31, 2018. ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: ā ā Net loss ā $ 3,524 ā $ 3,311 Prior service cost (credit) ā ā ā ā Net transition obligation (asset) ā ā ā ā ā ā $ 3,524 ā $ 3,311 ā The accumulated benefit obligation for the Retirement Income Plan as of December 31, 2019 and 2018 has been disclosed above. The Company uses a December 31 measurement date for this qualified plan. Amounts recorded in the consolidated balance sheet as pension liabilities consist of: ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā SERP liability ā $ (9,980) ā $ (7,045) Funded status of Retirement Income Plan ā ā ā ā Pension liabilities ā $ (9,980) ā $ (7,045) ā Marine Productsā funding policy is to contribute to the Retirement Income Plan the amount required, if any, under the Employee Retirement Income Security Act of 1974. There were no contributions made to the plan during 2019, while contributions totaled $770,000 during 2018. The components of net periodic benefit cost of the Retirement Income Plan are summarized as follows: ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2019 2018 2017 (in thousands) ā ā ā Service cost for benefits earned during the period ā $ ā ā $ ā ā $ ā Interest cost on projected benefit obligation ā 255 ā 251 ā 266 Expected return on plan assets ā (468) ā (501) ā (415) Amortization of net loss ā 87 ā 81 ā 91 ā ā $ (126) ā $ (169) ā $ (58) ā ā The Company recognized pre-tax decreases to the funded status in accumulated other comprehensive income of $213,000 in 2019 and $314,000 in 2018 compared to a pre-tax increase of $334,000 in 2017. There were no previously unrecognized prior service costs during 2019, 2018 and 2017. The pre-tax amounts recognized in other comprehensive income for the years ended December 31, 2019, 2018 and 2017 are summarized as follows: ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Net loss (gain) ā $ 300 ā $ 395 ā $ (243) Amortization of net loss ā (87) ā (81) ā (91) Net transition obligation (asset) ā ā ā ā ā ā Amount recognized in accumulated other comprehensive income ā $ 213 ā $ 314 ā $ (334) ā The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in 2020 are as follows: ā ā ā ā ā (in thousands) 2020 Amortization of net loss ā $ 98 Prior service cost (credit) ā ā Net transition obligation (asset) ā ā Estimated net periodic cost ā $ 98 ā The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: ā ā ā ā ā ā ā ā ā December 31, 2019 2018 2017 PROJECTED BENEFIT OBLIGATION: ā Discount rate 3.70 % 4.65 % 4.05 % Rate of compensation increase N/A N/A N/A NET BENEFIT COST: Discount rate 4.65 % 4.05 % 4.50 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A ā The Companyās expected return on assets assumption is derived from a detailed periodic assessment by its management and investment advisor. It includes a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plan to determine the average rate of earnings expected on the funds invested to provide for the pension plan benefits. While the assessment considers recent fund performance and historical returns, the rate of return assumption is derived primarily from a long-term, prospective view. Based on its recent assessment, the Company has concluded that its expected long-term return assumption of seven percent is reasonable. The planās weighted average asset allocation at December 31, 2019 and 2018 by asset category along with the target allocation for 2020 are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā Percentage of ā Percentage of ā ā ā ā Plan Assets as of ā Plan Assets as of ā ā Target Allocation ā December 31, ā December 31, Asset Category for 2020 2019 2018 Cash and Cash Equivalents 0% - 5% ā 1.3 % 3.0 % Domestic Equity Securities 0% - 40% ā ā 39.5 ā International Equity Securities 0% - 20% ā ā 19.0 ā Fixed Income Securities 15% - 100% ā 91.7 29.1 ā Investments measured at net asset value 0% - 12% ā 7.0 9.4 ā Total 100.0% ā 100.0 % 100.0 % ā The Companyās investments consist primarily of fixed-income securities that include corporate bonds, mortgage-backed securities, sovereign bonds, and U.S. Treasuries. Other types of investments include real estate funds and private equity funds that follow several different investment strategies. For each of the asset categories in the pension plan, the investment strategy is identical ā maximize the long-term rate of return on plan assets while minimizing the level of risk in order to minimize the cost of providing pension benefits. The investment policy establishes a target allocation for each asset class which is rebalanced as required. The plan utilizes a number of investment approaches, including but not limited to individual market securities, equity and fixed income funds in which the underlying securities are marketable, and debt funds to achieve this target allocation. Although not required, the Company is currently evaluating its contribution to the pension plan during fiscal year 2020. Some of our assets, primarily our private equity and real estate funds, do not have readily determinable market values given the specific investment structures involved and the nature of the underlying investments. For plan asset reporting as of December 31, 2019, publicly traded asset pricing was used where possible. For assets without readily determinable values, estimates were derived from investment manager statements combined with discussions focusing on underlying fundamentals and significant events. Additionally, these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested and the valuation is based on significant non-observable inputs which do not have a readily determinable fair value. The valuations are subject to judgments and assumptions of the funds which may prove to be incorrect, resulting in risks of incorrect valuation of these investments. The Company seeks to mitigate these risks by evaluating the appropriateness of the fundsā judgments and assumptions by reviewing the financial data included in the fundsā financial statements for reasonableness. The following tables present our plan assets using the fair value hierarchy as of December 31, 2019 and 2018. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See Note 8 for a brief description of the three levels under the fair value hierarchy. Fair Value Hierarchy as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 92 ā $ 92 ā $ ā Fixed Income Securities ā (2) ā 6,708 ā ā ā 6,708 Domestic Equity Securities ā (3) ā ā ā ā ā ā International Equity Securities ā (4) ā ā ā ā ā ā Total Assets in the Fair Value Hierarchy ā ā ā ā $ 6,800 ā $ 92 ā $ 6,708 Investments Measured at Net Asset Value ā ā ā ā 514 ā ā Investments at Fair Value ā ā ā ā $ 7,314 ā ā ā Fair Value Hierarchy as of December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 202 ā $ 202 ā $ ā Fixed Income Securities ā (2) ā 1,979 ā ā ā 1,979 Domestic Equity Securities ā (3) ā 2,693 ā 993 ā 1,700 International Equity Securities ā (4) ā 1,290 ā ā ā 1,290 Total Assets in the Fair Value Hierarchy ā ā ā ā $ 6,164 ā $ 1,195 ā $ 4,969 Investments Measured at Net Asset Value ā ā ā ā 638 ā ā Investments at Fair Value ā ā ā ā $ 6,802 ā ā ā (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (3) Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. (4) International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. The Company estimates that the future benefits payable for the Retirement Income Plan over the next ten years are as follows: ā ā ā ā ā (in thousands) ā 2020 ā $ 271 2021 ā 276 2022 ā 291 2023 ā 299 2024 ā 308 2025-2029 ā $ 1,713 ā 401(k) Plan Effective January 1, 2019, the Company began matching 100 percent of employees contributions for each dollar of a participantās contribution to the 401(k) Plan for the first three percent of his or her annual compensation, and fifty percent for each dollar of a participantās contribution to the 401(k) Plan for the next three percent of his or her annual compensation. Employees vest in the Companyās contributions after three years of service. The charges to expense for Marine Productsā contributions to the 401(k) plan were approximately $796,000 in 2019, $319,000 in 2018 and $317,000 in 2017. Stock Incentive Plan The Company recognizes compensation expense for the unvested portion of awards outstanding over the remainder of the service period. The compensation cost recorded for these awards will be based on their fair value at grant date less the cost of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. Pre-tax stock-based employee compensation expense was approximately $2,123,000 ($1,656,000 after tax) for 2019, $2,089,000 ($1,629,000 after tax) for 2018, and $2,682,000 ($1,729,000 after tax) for 2017. Stock Options The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model. The Company has not granted stock options to employees since 2004. There were no options exercised in 2019, 2018 or 2017 and there are no stock options outstanding as of December 31, 2019. Restricted Stock The agreements under which the restricted stock is issued provide that shares awarded may not be sold or otherwise transferred until restrictions established under the stock plans have lapsed. Upon termination of employment from the Company, with the exception of death (fully vests), disability or retirement (partially vests based on duration of service), shares with restrictions are forfeited in accordance with the plan. The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2019 947,710 ā $ 9.41 Granted 141,600 ā ā 17.21 Vested (260,770) ā ā 7.65 Forfeited (13,000) ā ā 11.68 Non-vested shares at December 31, 2019 815,540 ā $ 11.29 ā The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2018 1,040,800 ā $ 7.76 Granted 193,500 ā ā 13.97 Vested (283,790) ā ā 6.45 Forfeited (2,800) ā ā 8.54 Non-vested shares at December 31, 2018 947,710 ā $ 9.41 ā The fair value of restricted stock awards is based on the market price of the Companyās stock on the date of grant and is amortized to compensation expense on a straight-line basis over the requisite service period. The weighted average grant date fair value of these restricted stock awards was $17.21 in 2019, $13.97 in 2018 and $13.39 in 2017. The total fair value of shares vested was approximately $3,818,000 in 2019, $4,289,000 in 2018 and $4,432,000 during 2017. For the year ending December 31, 2019 approximately $517,000 of excess tax benefits for stock-based compensation awards were recorded as a discrete tax adjustment and classified within operating activities in the consolidated statements of cash flows compared to approximately $645,000 for the year ending December 31, 2018. Other Information |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 12: RELATED PARTY TRANSACTIONS In conjunction with its spin-off from RPC in 2001, the Company and RPC entered into various agreements that define the companiesā relationship after the spin-off. The Transition Support Services Agreement provides for RPC to provide certain services, including financial reporting and income tax administration, acquisition assistance, etc., to Marine Products until the agreement is terminated by either party. Marine Products reimbursed RPC for its estimated allocable share of administrative costs incurred for services rendered on behalf of Marine Products totaling $865,000 in 2019, $873,000 in 2018, and $849,000 in 2017. The Companyās payable to RPC for these services was $56,000 as of December 31, 2019 and $28,000 as of December 31, 2018. Many of the Companyās directors are also directors of RPC and all of the Companyās executive officers are employees of both the Company and RPC. The Employee Benefits Agreement provides for, among other things, the Companyās employees to continue participating subsequent to the spin-off in two RPC sponsored benefit plans, specifically, the defined contribution 401(k) plan and the defined benefit retirement income plan. RPC and Marine Products own 50 percent each of a limited liability company called 255 RC, LLC that was created for the joint purchase and ownership of a corporate aircraft. The purchase of the aircraft was completed in January 2015, and the purchase was funded primarily by a $2,554,000 contribution by each company to 255 RC, LLC. Each of RPC and Marine Products is currently a party to an operating lease agreement with 255 RC, LLC for a period of five years . Marine Products recorded certain net operating costs comprised of rent and an allocable share of fixed costs of approximately $159,000 in 2019 and 2018 and $157,000 in 2017 for the corporate aircraft. The Company has a payable to 255 RC LLC of $1.0 million as of December 31, 2019 and $0.8 million as of December 31, 2018. The Company accounts for this investment using the equity method and its proportionate share of income or loss is recorded in selling, general and administrative expenses. As of December 31, 2019, the investment closely approximates the underlying equity in the net assets of 255 RC, LLC. A group that includes the Companyās Chairman of the Board, R. Randall Rollins and his brother Gary W. Rollins, who is also director of the Company, and certain companies under their control, controls in excess of fifty percent percent of the Companyās voting power. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | NOTE 13: LEASES The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2019 and recognized leases with duration greater than 12 months on the balance sheet using the modified retrospective approach. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed for a carry-forward of the historical lease classification. For leases with terms greater than 12 months, the Company has recorded the related Right-Of-Use asset and liability at the present value of lease payments over the term. Renewal options have been factored into the determination of lease payments when appropriate. There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate, at lease commencement, to determine the present value of lease payments, since most of the Companyās leases do not provide an implicit rate of return. The Companyās lease population consists primarily of office equipment. The Company does not have any finance leases. The Company determines at contract inception, if an arrangement is a lease or contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property, plant and equipment for a period of time in exchange for consideration. The Company has elected not to separate non-lease components from lease components for its leases. Variable lease payments are recognized as expense when incurred. As of December 31, 2019, the Company had no operating leases that had not yet commenced. Lease position: The table below presents the assets and liabilities related to operating leases recorded on the balance sheet: ā ā ā ā ā ā ā (in thousands) Classification on the Consolidated Balance Sheet December 31, 2019 Assets: ā Operating lease right-of-use assets Other assets ā $ 159 ā ā ā ā ā ā Liabilities: ā Current portion of operating lease liabilities Accrued expenses and other liabilities ā $ 47 Long-term operating lease liabilities Other long-term liabilities ā 110 Total lease liabilities ā $ 157 ā Lease Costs: The components of lease expense for the period are reported as follows: ā ā ā ā ā ā ā ā ā Classification on the Consolidated Statements of ā Year ended (in thousands) Operations December 31, 2019 Operating lease cost Selling, general and administrative expenses $ 52 ā ā ā ā ā Short-term lease cost Selling, general and administrative expenses ā ā 3 Total lease cost ā $ 55 ā Total rental expense, charged to operations related to operating leases under the previous lease standard, were $191,000 in 2018 and $183,000 in 2017. ā ā ā ā ā ā Other information related to operating leases: ā ā Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 46 ā ā ā ā ā Weighted average remaining lease term ā 3.3 years Weighted average discount rate ā 3.68 % ā Lease Commitments: Future minimum lease payments at December 31, 2019 were as follows: ā ā ā ā ā ā ā ā Maturity of lease liabilities Operating (in thousands) Leases 2020 $ 52 2021 ā 52 2022 ā 52 2023 ā 10 2024 ā ā Thereafter ā ā Total lease payments ā 166 Less: Amounts representing interest ā (9) Present value of lease liabilities ā $ 157 ā As of December 31, 2018, future total rentals on our non-cancellable operating leases under the previous lease standard were $223,000 in the aggregate, which consisted of the following: $55,000 in 2019; $54,000 in 2020; $52,000 in 2021; $52,000 in 2022; and $10,000 in 2023. In the second quarter of 2019, the Company entered into an operating lease as the lessor for certain owned real estate leased to a third party under an operating lease with an initial term of 36 months . The lease requires fixed monthly payments and does not contain clauses for future rent escalations or renewal options. There are no terms and conditions under which the lessee has the option to purchase this asset. As of December 31, 2019, projected future lease income on this lease totaled $529,875 scheduled to be received as follows: 2020 - $235,500, 2021 - $235,500 and 2022 - $58,875 . During the year ended December 31, 2019, the Company recorded rental income of $147 thousand that is classified as part of selling, general and administrative expenses in the consolidated statements of operations. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE IIāVALUATION AND QUALIFYING ACCOUNTS MARINE PRODUCTS CORPORATION AND SUBSIDIARIES (in thousands of dollars) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For the years ended December 31, 2019, 2018 and 2017 ā ā Balance at ā Charged to ā Net ā Balance ā ā Beginning ā Costs and ā (Write-Offs)/ ā at End of Description ā of Period ā Expenses ā Recoveries ā Period Year ended December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 25 ā $ 14 ā $ (19) ā $ 20 Deferred tax asset valuation allowance ā $ 2,794 ā $ ā ā $ (976) ā $ 1,818 Year ended December 31, 2018 ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 25 ā $ ā ā $ ā ā $ 25 Deferred tax asset valuation allowance ā $ 5,447 ā $ ā ā $ (2,653) ā $ 2,794 Year ended December 31, 2017 ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 25 ā $ ā ā $ ā ā $ 25 Deferred tax asset valuation allowance ā $ 4,525 ā $ 922 ā $ ā ā $ 5,447 ā ā |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The consolidated financial statements included herein may not necessarily be indicative of the future results of operations, financial position and cash flows of Marine Products. The Company has only one reportable segment ā its Powerboat Manufacturing business. The Companyās results of operations and its financial condition are not significantly reliant upon any single customer or product model. No single dealer accounted for more than 10 percent of net sales during 2019, 2018 or 2017. Net sales to the Companyās international dealers were approximately $17.0 million in 2019, $19.4 million in 2018, and $16.9 million in 2017. |
Common Stock | Common Stock |
Preferred Stock | Preferred Stock |
Share Repurchases | Share Repurchases |
Dividend | Dividend |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Sales Recognition | Sales Recognition ā |
Advertising | Advertising |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Marketable Securities | Marketable Securities Management determined the appropriate classification of debt securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Debt securities were classified as available-for-sale because the Company did not have the intent to hold the securities to maturity. Available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of taxes, reported as a separate component of stockholdersā equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest and dividends on available-for-sale securities are included in interest income. Net realized gains (losses) on marketable securities totaled $4,000 in 2019, $(81,000) in 2018 and $30,000 in 2017. Of the total (losses) gains realized, reclassification from other comprehensive income totaled approximately $4,000 in 2019, $(81,000) in 2018, and $30,000 in 2017. There were no gross unrealized gains on marketable securities as of December 31, 2019 and gross unrealized gains totaled $3,000 as of December 31, 2018. There were no gross unrealized losses on marketable securities as of December 31, 2019 and gross unrealized losses totaled $12,000 as of December 31, 2018. The net unrealized loss on marketable securities totaled $9,000 as of December 31, 2018. The amortized cost basis, fair value and net unrealized loss of the available-for-sale securities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 ā 2018 ā ā Amortized ā ā ā ā Net ā Amortized ā ā ā ā Net ā ā Cost ā Fair ā Unrealized ā Cost ā Fair ā Unrealized Type of Securities Basis Value ā Loss Basis Value ā Loss (in thousands) ā ā ā ā ā ā Municipal Obligations ā $ ā ā $ ā ā $ ā ā $ 1,490 ā $ 1,490 ā $ ā Corporate Obligations ā ā ā ā ā ā ā 6,184 ā 6,175 ā (9) Total ā $ ā ā $ ā ā $ ā ā $ 7,674 ā $ 7,665 ā $ (9) ā Municipal obligations consisted primarily of municipal notes rated AA- or higher ranging in maturity from less than one year to over 20 years. Corporate obligations consisted primarily of debentures and notes issued by other companies ranging in maturity from one |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment |
Goodwill and Other Intangibles | Goodwill and Other Intangibles no |
Investments | Investments |
Warranty Costs | Warranty Costs one ā ā ā ā ā ā ā ā (in thousands) 2019 2018 Balance at beginning of year ā $ 5,607 ā $ 5,373 Less: Payments made during the year ā (4,004) ā (3,944) Add: Warranty provision for the current year ā 3,788 ā 3,901 Changes to warranty provision for prior years ā 19 ā 277 Balance at end of year ā $ 5,410 ā $ 5,607 |
Insurance Accruals | Insurance Accruals |
Research and Development Costs | Research and Development Costs |
Repurchase Obligations | Repurchase Obligations |
Income Taxes | Income Taxes |
Stock-Based Compensation | Stock-Based Compensation |
Earnings per Share | Earnings per Share Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: ā ā ā ā ā ā ā ā ā ā ā (In thousands) 2019 2018 2017 Net income available for stockholders ā $ 28,239 ā $ 28,488 ā $ 19,300 Less: Adjustments for earnings attributable to participating securities ā (669) ā (762) ā (595) Net income used in calculating earnings per share ā $ 27,570 ā $ 27,726 ā $ 18,705 ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding (including participating securities) ā 34,061 ā 34,529 ā 34,843 Adjustment for participating securities ā (831) ā (959) ā (1,091) Shares used in calculating diluted earnings per share ā 33,230 ā 33,570 ā 33,752 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Concentration of Suppliers | Concentration of Suppliers |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - During the year ended December 31, 2019, the FASB issued the following Accounting Standards Updates (ASUs): Recently Adopted Accounting Standards: ā Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The Company adopted ASC 842, Leases and all the related amendments (ānew lease standardā) on January 1, 2019 by recognizing on its balance sheet, a right -of-use asset and lease liabilities each totaling approximately $200 thousand, for all of its leases with terms greater than 12 months. The Company adopted the standard on January 1, 2019 using the optional transition method with no cumulative-effect adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards that were in effect for those periods. The adoption of the standard did not have a material impact on the Companyās consolidated statements of operations and consolidated statements of cash flows. See Note 13: Leases in the Notes to Consolidated Financial Statements for expanded disclosures. ā ASU No. 2017-08 ā Receivables āNonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. The amendments are to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company changed its investment strategy in the first quarter of 2019 and no longer holds investments in callable debt securities. The Company adopted the standard in the first quarter of 2019 and adoption did not have a material impact on its consolidated financial statements. ā ASU No. 2018-02ā Income StatementāReporting Comprehensive Income (Topic 220)āReclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments provide an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company adopted the standard in the first quarter of 2019 and elected to reclassify approximately $414 thousand of stranded tax effects related to its pension plan and unrealized gain on its available-for-sale debt securities from AOCI to retained earnings. ā ASU No. 2018-07 ā Compensation āStock Compensation (Topic 718) āImprovements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASU 718 to include share-based payments issued to nonemployees for goods or services, thereby substantially aligning the accounting for share-based payments to nonemployees and employees. The Company adopted these provisions in the first quarter of 2019 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2020 and later: ā ASU No. 2016-13, Financial Instruments āCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU introduced a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for recognition. The expected credit losses are adjusted each period for changes in expected lifetime. The Company adopted the provisions of the standard in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ā ASU No. 2017-04 āIntangibles āGoodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unitās fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted these provisions in the first quarter of 2020, on a prospective basis. ā ASU No. 2018-15 ā Intangibles āGoodwill and Other āInternal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments reduce the complexity for the accounting for costs of implementing a cloud computing service arrangement and align the requirements for capitalizing implementation costs that are incurred in a hosting arrangement that is a service contract with the costs incurred to develop or obtain internal-use software. The Company adopted these provisions in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ā ASU No. 2019-12 ā Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the exceptions to the incremental approach for intra-period tax allocation in certain situations, requirement to recognize a deferred tax liability for a change in the status of a foreign investment, and the general methodology for computing income taxes in an interim period when year-to date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes with regard to franchise tax, evaluation of step up in the tax basis goodwill in certain business combinations, allocating current and deferred tax expense to legal entities that are not subject to tax and enacted change in tax laws or rates. The amendments are effective for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years. The company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of amortized cost basis, fair value and net unrealized loss of the available-for-sale securities | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 ā 2018 ā ā Amortized ā ā ā ā Net ā Amortized ā ā ā ā Net ā ā Cost ā Fair ā Unrealized ā Cost ā Fair ā Unrealized Type of Securities Basis Value ā Loss Basis Value ā Loss (in thousands) ā ā ā ā ā ā Municipal Obligations ā $ ā ā $ ā ā $ ā ā $ 1,490 ā $ 1,490 ā $ ā Corporate Obligations ā ā ā ā ā ā ā 6,184 ā 6,175 ā (9) Total ā $ ā ā $ ā ā $ ā ā $ 7,674 ā $ 7,665 ā $ (9) |
Schedule of analysis of warranty accruals | ā ā ā ā ā ā ā ā (in thousands) 2019 2018 Balance at beginning of year ā $ 5,607 ā $ 5,373 Less: Payments made during the year ā (4,004) ā (3,944) Add: Warranty provision for the current year ā 3,788 ā 3,901 Changes to warranty provision for prior years ā 19 ā 277 Balance at end of year ā $ 5,410 ā $ 5,607 |
Schedule of reconciliation of weighted average shares outstanding | ā ā ā ā ā ā ā ā ā ā ā (In thousands) 2019 2018 2017 Net income available for stockholders ā $ 28,239 ā $ 28,488 ā $ 19,300 Less: Adjustments for earnings attributable to participating securities ā (669) ā (762) ā (595) Net income used in calculating earnings per share ā $ 27,570 ā $ 27,726 ā $ 18,705 ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding (including participating securities) ā 34,061 ā 34,529 ā 34,843 Adjustment for participating securities ā (831) ā (959) ā (1,091) Shares used in calculating diluted earnings per share ā 33,230 ā 33,570 ā 33,752 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Sales | |
Schedule of disaggregation of sales by major source | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Boats and accessories ā $ 287,837 ā $ 294,537 ā $ 263,275 Parts ā 4,299 ā 4,079 ā 4,041 Net sales ā $ 292,136 ā $ 298,616 ā $ 267,316 |
Schedule of revenue by geographic region | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Domestic ā $ 275,133 ā $ 279,175 ā $ 250,394 International ā 17,003 ā 19,441 ā 16,922 Net sales ā $ 292,136 ā $ 298,616 ā $ 267,316 |
Schedule of timing of revenue recognition | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Products transferred at a point in time ā $ 292,136 ā $ 298,616 ā $ 267,316 Products transferred over time ā ā ā ā ā ā Net sales ā $ 292,136 ā $ 298,616 ā $ 267,316 |
Schedule of contract balances | ā ā ā ā ā ā ā ā (in thousands) 2019 2018 Deferred revenue ā $ 295 ā $ 496 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable | ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Trade receivables ā $ 2,319 ā $ 2,397 Other ā 4,308 ā 1,500 Total ā 6,627 ā 3,897 Less: allowance for doubtful accounts ā (20) ā (25) Net accounts receivable ā $ 6,607 ā $ 3,872 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
Schedule of inventories | ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Raw materials ā $ 24,993 ā $ 26,874 Work in process ā 7,731 ā 10,671 Finished goods ā 8,829 ā 9,225 Total inventories ā $ 41,553 ā $ 46,770 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | ā ā ā ā ā ā ā ā ā ā ā ā Estimated ā ā ā ā ā ā December 31, Useful Lives 2019 2018 (in thousands) ā ā ā ā ā ā Land N/A ā $ 878 ā $ 878 Buildings 7-40 ā 20,552 ā 19,705 Operating equipment and property 3-15 ā 11,891 ā 11,016 Furniture and fixtures 5-7 ā 1,999 ā 1,785 Vehicles 5-10 ā 7,734 ā 7,381 Gross property, plant and equipment ā ā 43,054 ā 40,765 Less: accumulated depreciation ā ā (28,258) ā (26,213) Net property, plant and equipment ā ā ā $ 14,796 ā $ 14,552 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Accrued payroll and related expenses ā $ 3,021 ā $ 3,257 Accrued sales incentives and discounts ā 3,716 ā 3,547 Accrued warranty costs ā 5,410 ā 5,607 Deferred revenue ā 295 ā 496 Other ā 713 ā 587 Total accrued expenses and other liabilities ā $ 13,155 ā $ 13,494 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of components of the provision for income taxes | ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2019 2018 2017 (in thousands) ā ā ā Current provision: ā ā ā Federal ā $ 6,637 ā $ 6,173 ā $ 8,623 State ā 202 ā 616 ā 546 Deferred (benefit) provision: ā ā ā Federal ā (715) ā 384 ā 1,511 State ā 95 ā (6) ā 8 Total income tax provision ā $ 6,219 ā $ 7,167 ā $ 10,688 |
Schedule of reconciliation between the federal statutory rate and effective tax rate | ā ā ā ā ā ā ā ā ā Years ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 1.0 1.5 1.1 Research and experimentation credit (1.2) (0.8) (0.8) Non-deductible expenses ā (0.7) ā 0.4 ā (3.5) ā Change in contingencies (0.1) 0.4 0.5 Adjustments related to the Act 0.0 (0.3) 5.6 Adjustments related to vesting of restricted stock (1.5) (1.8) (2.4) Other (0.5) (0.3) 0.1 Effective tax rate 18.0 % 20.1 % 35.6 % |
Schedule of components of deferred tax assets and liabilities | ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā Deferred tax assets: ā ā Warranty costs ā $ 1,190 ā $ 1,233 Sales incentives and discounts ā 404 ā 317 Stock-based compensation ā 696 ā 667 Pension ā 2,002 ā 1,337 State NOLās ā ā 484 ā ā 588 State credits ā ā 1,818 ā ā 2,794 All others ā 560 ā 559 Valuation allowance ā (1,818) ā (2,794) Total deferred tax assets ā 5,336 ā 4,701 Deferred tax liabilities: ā ā Depreciation and amortization expense ā (947) ā (1,009) Basis differences in joint venture ā (399) ā (367) Net deferred tax assets ā $ 3,990 ā $ 3,325 |
Schedule of unrecognized tax benefits | ā ā ā ā ā ā ā ā ā 2019 2018 Balance at January 1 ā $ 393,000 ā $ 243,000 (Decreases) additions based on tax positions related to the current year ā (28,000) ā 81,000 (Decreases) additions for tax positions of prior years ā (7,000) ā 69,000 Balance at December 31 ā $ 358,000 ā $ 393,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of accumulated other comprehensive loss | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gain (Loss) ā ā ā ā ā Pension ā on ā ā ā ā Adjustment Securities Total (in thousands) ā ā ā Balance at December 31, 2017 ā $ (1,936) ā $ (44) ā $ (1,980) Change during 2018: ā ā ā ā Before-tax amount ā (390) ā (20) ā (410) Tax expense ā 85 ā 4 ā 89 Reclassification adjustment, net of taxes ā ā ā Amortization of net loss ā 63 ā ā ā 63 Net realized gain ā ā ā 63 ā 63 Total activity in 2018 ā (242) ā 47 ā (195) Balance at December 31, 2018 ā $ (2,178) ā $ 3 ā $ (2,175) Change during 2019: ā ā ā Adoption of accounting standard (Note 1) ā ā (404) ā ā (10) ā ā (414) Before-tax amount ā (300) ā 13 ā (287) Tax benefit ā 66 ā (3) ā 63 Reclassification adjustment, net of taxes ā ā ā Amortization of net loss ā 68 ā ā ā 68 Net realized loss ā ā ā (3) ā (3) Total activity in 2019 ā (570) ā (3) ā (573) Balance at December 31, 2019 ā $ (2,748) ā $ ā ā $ (2,748) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
Schedule of the valuation of financial instruments measured at fair value on a recurring basis | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurements at December 31, 2019 with: ā ā ā ā ā ā ā ā ā ā ā Significant ā ā ā ā ā ā ā ā Quoted prices in ā other ā Significant ā ā ā ā ā active markets for ā observable ā unobservable (in thousands) Total identical assets inputs inputs ā ā ā (Level 1) (Level 2) ā (Level 3) Assets: ā ā ā ā Available-for-sale securities: ā ā ā ā Municipal Obligations ā $ ā ā $ ā ā $ ā ā $ ā Corporate Obligations ā ā ā ā ā ā ā ā ā ā $ ā ā $ ā ā $ ā ā $ ā Investments measured at Net Asset Value- Trading securities ā $ 6,716 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurements at December 31, 2018 with: ā ā ā ā ā ā ā ā ā ā ā Significant ā ā ā ā ā ā ā ā Quoted prices in ā other ā Significant ā ā ā ā ā active markets for ā observable ā unobservable (in thousands) Total identical assets inputs inputs ā ā ā (Level 1) (Level 2) ā (Level 3) Assets: ā ā ā ā Available-for-sale securities: ā ā ā ā Municipal Obligations ā $ 1,490 ā $ ā ā $ 1,490 ā $ ā Corporate Obligations ā 6,175 ā ā ā 6,175 ā ā ā ā $ 7,665 ā $ ā ā $ 7,665 ā $ ā Investments measured at Net Asset Value- Trading securities ā $ 5,518 ā ā ā |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of funded status of the Retirement Income Plan | ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā ACCUMULATED BENEFIT OBLIGATION, END OF YEAR ā $ 6,433 ā $ 5,833 ā ā ā ā ā ā ā CHANGE IN PROJECTED BENEFIT OBLIGATION: ā ā Benefit obligation at beginning of year ā $ 5,833 ā $ 6,379 Service cost ā ā ā ā Interest cost ā 255 ā 251 Actuarial loss ā 570 ā (554) Benefits paid ā (225) ā (243) Projected benefit obligation at end of year ā $ 6,433 ā $ 5,833 CHANGE IN PLAN ASSETS: ā ā Fair value of plan assets at beginning of year ā $ 6,802 ā $ 6,722 Actual return on plan assets ā 737 ā (447) Employer contributions ā ā ā 770 Benefits paid ā (225) ā (243) Fair value of plan assets at end of year ā $ 7,314 ā $ 6,802 Funded status at end of year ā $ 881 ā $ 969 ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā ā ā ā ā AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: ā ā ā ā ā ā Noncurrent assets ā $ 881 ā $ 969 Current liabilities ā ā ā ā Noncurrent liabilities ā ā ā ā ā ā $ 881 ā $ 969 ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: ā ā Net loss ā $ 3,524 ā $ 3,311 Prior service cost (credit) ā ā ā ā Net transition obligation (asset) ā ā ā ā ā ā $ 3,524 ā $ 3,311 |
Schedule of amounts recorded in the consolidated balance sheet as pension liabilities | ā ā ā ā ā ā ā ā December 31, 2019 2018 (in thousands) ā ā SERP liability ā $ (9,980) ā $ (7,045) Funded status of Retirement Income Plan ā ā ā ā Pension liabilities ā $ (9,980) ā $ (7,045) |
Schedule of net periodic benefit cost | ā ā ā ā ā ā ā ā ā ā ā Years ended December 31, 2019 2018 2017 (in thousands) ā ā ā Service cost for benefits earned during the period ā $ ā ā $ ā ā $ ā Interest cost on projected benefit obligation ā 255 ā 251 ā 266 Expected return on plan assets ā (468) ā (501) ā (415) Amortization of net loss ā 87 ā 81 ā 91 ā ā $ (126) ā $ (169) ā $ (58) |
Schedule of amounts recognized in other comprehensive income | ā ā ā ā ā ā ā ā ā ā ā (in thousands) 2019 2018 2017 Net loss (gain) ā $ 300 ā $ 395 ā $ (243) Amortization of net loss ā (87) ā (81) ā (91) Net transition obligation (asset) ā ā ā ā ā ā Amount recognized in accumulated other comprehensive income ā $ 213 ā $ 314 ā $ (334) |
Schedule of components of net periodic benefit cost | ā ā ā ā ā (in thousands) 2020 Amortization of net loss ā $ 98 Prior service cost (credit) ā ā Net transition obligation (asset) ā ā Estimated net periodic cost ā $ 98 |
Schedule of weighted average assumptions | ā ā ā ā ā ā ā ā ā December 31, 2019 2018 2017 PROJECTED BENEFIT OBLIGATION: ā Discount rate 3.70 % 4.65 % 4.05 % Rate of compensation increase N/A N/A N/A NET BENEFIT COST: Discount rate 4.65 % 4.05 % 4.50 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A |
Schedule of allocation of plan assets | ā ā ā ā ā ā ā ā ā ā ā ā ā Percentage of ā Percentage of ā ā ā ā Plan Assets as of ā Plan Assets as of ā ā Target Allocation ā December 31, ā December 31, Asset Category for 2020 2019 2018 Cash and Cash Equivalents 0% - 5% ā 1.3 % 3.0 % Domestic Equity Securities 0% - 40% ā ā 39.5 ā International Equity Securities 0% - 20% ā ā 19.0 ā Fixed Income Securities 15% - 100% ā 91.7 29.1 ā Investments measured at net asset value 0% - 12% ā 7.0 9.4 ā Total 100.0% ā 100.0 % 100.0 % |
Schedule of plan assets using the fair value hierarchy | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 92 ā $ 92 ā $ ā Fixed Income Securities ā (2) ā 6,708 ā ā ā 6,708 Domestic Equity Securities ā (3) ā ā ā ā ā ā International Equity Securities ā (4) ā ā ā ā ā ā Total Assets in the Fair Value Hierarchy ā ā ā ā $ 6,800 ā $ 92 ā $ 6,708 Investments Measured at Net Asset Value ā ā ā ā 514 ā ā Investments at Fair Value ā ā ā ā $ 7,314 ā ā ā Fair Value Hierarchy as of December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā Investments (in thousands) ā ā Total Level 1 Level 2 Cash and Cash Equivalents ā (1) ā $ 202 ā $ 202 ā $ ā Fixed Income Securities ā (2) ā 1,979 ā ā ā 1,979 Domestic Equity Securities ā (3) ā 2,693 ā 993 ā 1,700 International Equity Securities ā (4) ā 1,290 ā ā ā 1,290 Total Assets in the Fair Value Hierarchy ā ā ā ā $ 6,164 ā $ 1,195 ā $ 4,969 Investments Measured at Net Asset Value ā ā ā ā 638 ā ā Investments at Fair Value ā ā ā ā $ 6,802 ā ā ā (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (3) Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. (4) International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. |
Schedule of future benefits payable for the Retirement Income Plan over the next ten years | ā ā ā ā ā (in thousands) ā 2020 ā $ 271 2021 ā 276 2022 ā 291 2023 ā 299 2024 ā 308 2025-2029 ā $ 1,713 |
Schedule of summary of the changes in non-vested restricted shares | ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2019 947,710 ā $ 9.41 Granted 141,600 ā ā 17.21 Vested (260,770) ā ā 7.65 Forfeited (13,000) ā ā 11.68 Non-vested shares at December 31, 2019 815,540 ā $ 11.29 ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā Grant-Date Fair ā Shares Value Non-vested shares at January 1, 2018 1,040,800 ā $ 7.76 Granted 193,500 ā ā 13.97 Vested (283,790) ā ā 6.45 Forfeited (2,800) ā ā 8.54 Non-vested shares at December 31, 2018 947,710 ā $ 9.41 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of operating leases assets and liabilities | ā ā ā ā ā ā ā (in thousands) Classification on the Consolidated Balance Sheet December 31, 2019 Assets: ā Operating lease right-of-use assets Other assets ā $ 159 ā ā ā ā ā ā Liabilities: ā Current portion of operating lease liabilities Accrued expenses and other liabilities ā $ 47 Long-term operating lease liabilities Other long-term liabilities ā 110 Total lease liabilities ā $ 157 |
Schedule of components of lease expense | ā ā ā ā ā ā ā ā ā Classification on the Consolidated Statements of ā Year ended (in thousands) Operations December 31, 2019 Operating lease cost Selling, general and administrative expenses $ 52 ā ā ā ā ā Short-term lease cost Selling, general and administrative expenses ā ā 3 Total lease cost ā $ 55 |
Schedule of other information | ā ā ā ā ā ā Other information related to operating leases: ā ā Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 46 ā ā ā ā ā Weighted average remaining lease term ā 3.3 years Weighted average discount rate ā 3.68 % |
Schedule of future minimum lease payments | ā ā ā ā ā ā ā ā Maturity of lease liabilities Operating (in thousands) Leases 2020 $ 52 2021 ā 52 2022 ā 52 2023 ā 10 2024 ā ā Thereafter ā ā Total lease payments ā 166 Less: Amounts representing interest ā (9) Present value of lease liabilities ā $ 157 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Basis of Consolidation and Presentation (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Net sales to all dealers | $ 292,136 | $ 298,616 | $ 267,316 |
Net sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, customer | 0 | ||
Percent of net sales | 10 | ||
Net sales | International dealers | |||
Concentration Risk [Line Items] | |||
Net sales to all dealers | $ 17,000 | $ 19,400 | $ 16,900 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Common and Preferred Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Votes per share | one vote | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Dividends, Advertising and Marketable securities (Details) - USD ($) | Jan. 28, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting policies: | ||||
Prepaid expenses related to unamortized product brochure costs | $ 269,000 | $ 243,000 | ||
Net realized (losses) gains on marketable securities | 4,000 | (81,000) | $ 30,000 | |
Reclassification of net realized (losses) gains from other comprehensive income | 4,000 | (81,000) | 30,000 | |
Gross unrealized gains on marketable securities | 0 | 3,000 | ||
Gross unrealized losses on marketable securities | 0 | 12,000 | ||
Unrealized loss on marketable securities totaled | 9,000 | |||
Selling, general and administrative expenses | ||||
Accounting policies: | ||||
Advertising expenses | $ 2,543,000 | $ 2,468,000 | $ 2,305,000 | |
Dividend declared | ||||
Accounting policies: | ||||
Amount of dividend payable in cash per share | $ 0.12 | |||
Dividends payable, date declared | Jan. 28, 2020 | |||
Dividend payable, date to be payable | Mar. 10, 2020 | |||
Dividends payable, date of record | Feb. 10, 2020 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Amortized cost basis, fair value and net unrealized loss of the available-for-sale securities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Marketable Securities: | |
Amortized Cost Basis | $ 7,674 |
Fair Value | 7,665 |
Net Unrealized Loss | (9) |
Municipal Obligations | |
Marketable Securities: | |
Amortized Cost Basis | 1,490 |
Fair Value | 1,490 |
Corporate Obligations | |
Marketable Securities: | |
Amortized Cost Basis | 6,184 |
Fair Value | 6,175 |
Net Unrealized Loss | $ (9) |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Municipal obligations (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Municipal Obligations | Standard & Poor's AA- or higher | Minimum | |
Marketable Securities: | |
Maturity term of available-for-sale securities | 1 year |
Municipal Obligations | Standard & Poor's AA- or higher | Maximum | |
Marketable Securities: | |
Maturity term of available-for-sale securities | 20 years |
Corporate Obligations | Standard & Poor's BBB or higher | Minimum | |
Marketable Securities: | |
Maturity term of available-for-sale securities | 1 year |
Corporate Obligations | Standard & Poor's BBB or higher | Maximum | |
Marketable Securities: | |
Maturity term of available-for-sale securities | 5 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Warranty accruals: | ||
Balance at beginning of year | $ 5,607 | $ 5,373 |
Less: Payments made during the year | (4,004) | (3,944) |
Add: Warranty provision for the year | 3,788 | 3,901 |
Changes to warranty provision for prior years | 19 | 277 |
Balance at end of the year | $ 5,410 | $ 5,607 |
Warranty Costs | ||
Period of limited warranty on structural deck | 5 years | |
Period of transferable limited warranty to original owner | 1 year | |
Period of transferable hull warranty available to first subsequent owner | 5 years | |
Length of period after original retail purchase the 5-year transferable hull warranty terminates | 5 years | |
Minimum | ||
Warranty Costs | ||
Period of non-transferable warranty on additional items | 1 year | |
Maximum | ||
Warranty Costs | ||
Period of non-transferable warranty on additional items | 5 years |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of weighted average shares outstanding (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per Share | |||
Net income available for stockholders | $ 28,239 | $ 28,488 | $ 19,300 |
Less: Adjustments for earnings attributable to participating securities | (669) | (762) | (595) |
Net income used in calculating earnings per share | $ 27,570 | $ 27,726 | $ 18,705 |
Weighted average shares outstanding (including participating securities) | 34,061 | 34,529 | 34,843 |
Adjustment for participating securities | (831) | (959) | (1,091) |
Shares used in calculating diluted earnings per share | 33,230 | 33,570 | 33,752 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Product Information [Line Items] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Goodwill and Other Intangibles | |||
Goodwill | $ 3,308,000 | $ 3,308,000 | |
Impairment of goodwill or trade names | $ 0 | 0 | $ 0 |
Earliest tax year | |||
Product Information [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Latest tax year | |||
Product Information [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
Selling, general and administrative expenses | |||
Product Information [Line Items] | |||
Research and development costs | $ 730,000 | $ 822,000 | $ 960,000 |
Accounts Receivable | |||
Product Information [Line Items] | |||
Percentage of domestic shipments made pursuant to floor plan financing | 64.00% | ||
Supplier Concentration Risk | |||
Product Information [Line Items] | |||
Number of supplier | item | 4 | ||
Number of types of engines | item | 3 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ (414) | ||
ASU No. 2016-02, Leases (Topic 842) | |||
Lease liabilities | 157 | ||
Right-of-use asset | $ 159 | ||
ASU No. 2016-02, Leases (Topic 842) | Restatement Adjustment | |||
Lease liabilities | $ 200 | ||
Right-of-use asset | $ 200 | ||
ASU No. 2018-02, (Topic 220) | |||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 414 |
Net Sales - Payment Terms (Deta
Net Sales - Payment Terms (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue satisfaction period | 7 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue satisfaction period | 10 days |
Net Sales - Disaggregate sales
Net Sales - Disaggregate sales by major source (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of revenue: | |||
Net sales | $ 292,136 | $ 298,616 | $ 267,316 |
Boats and accessories | |||
Disaggregation of revenue: | |||
Net sales | 287,837 | 294,537 | 263,275 |
Parts | |||
Disaggregation of revenue: | |||
Net sales | $ 4,299 | $ 4,079 | $ 4,041 |
Net Sales - Disaggregate revenu
Net Sales - Disaggregate revenue by location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of revenue: | |||
Net sales | $ 292,136 | $ 298,616 | $ 267,316 |
Domestic | |||
Disaggregation of revenue: | |||
Net sales | 275,133 | 279,175 | 250,394 |
International | |||
Disaggregation of revenue: | |||
Net sales | $ 17,003 | $ 19,441 | $ 16,922 |
Net Sales - Timing of revenue r
Net Sales - Timing of revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of revenue: | |||
Net sales | $ 292,136 | $ 298,616 | $ 267,316 |
Products transferred at point in time | |||
Disaggregation of revenue: | |||
Net sales | 292,136 | 298,616 | 267,316 |
Products transferred over time | |||
Disaggregation of revenue: | |||
Net sales | $ 0 | $ 0 | $ 0 |
Net Sales - Deferred revenue (D
Net Sales - Deferred revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and other liabilities | ||
Disaggregation of revenue: | ||
Deferred revenue | $ 295 | $ 496 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | ||
Trade receivables | $ 2,319 | $ 2,397 |
Other | 4,308 | 1,500 |
Total | 6,627 | 3,897 |
Less: allowance for doubtful accounts | (20) | (25) |
Net accounts receivable | $ 6,607 | $ 3,872 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INVENTORIES | ||
Raw materials | $ 24,993 | $ 26,874 |
Work in process | 7,731 | 10,671 |
Finished goods | 8,829 | 9,225 |
Total inventories | $ 41,553 | $ 46,770 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 43,054 | $ 40,765 |
Less: accumulated depreciation | (28,258) | (26,213) |
Net property, plant and equipment | 14,796 | 14,552 |
Land | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | 878 | 878 |
Buildings | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 20,552 | 19,705 |
Buildings | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 7 years | |
Buildings | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 40 years | |
Operating equipment and property | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 11,891 | 11,016 |
Operating equipment and property | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 3 years | |
Operating equipment and property | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 15 years | |
Furniture and fixtures | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 1,999 | 1,785 |
Furniture and fixtures | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 5 years | |
Furniture and fixtures | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 7 years | |
Vehicles | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Gross property, plant and equipment | $ 7,734 | $ 7,381 |
Vehicles | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 5 years | |
Vehicles | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated Useful Lives | 10 years |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Depreciation expense | $ 2,090 | $ 1,820 | $ 1,526 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued payroll and related expenses | $ 3,021 | $ 3,257 |
Accrued sales incentives and discounts | 3,716 | 3,547 |
Accrued warranty costs | 5,410 | 5,607 |
Deferred revenue | 295 | 496 |
Other | 713 | 587 |
Total accrued expenses and other liabilities | $ 13,155 | $ 13,494 |
INCOME TAXES - Components of pr
INCOME TAXES - Components of provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | |||
Federal | $ 6,637 | $ 6,173 | $ 8,623 |
State | 202 | 616 | 546 |
Deferred (benefit) provision: | |||
Federal | (715) | 384 | 1,511 |
State | 95 | (6) | 8 |
Total income tax provision | $ 6,219 | $ 7,167 | $ 10,688 |
INCOME TAXES - Reconciliation b
INCOME TAXES - Reconciliation between the federal statutory rate and effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.50% | 1.10% |
Research and experimentation credit | (1.20%) | (0.80%) | (0.80%) |
Non-deductible expenses | (0.70%) | 0.40% | (3.50%) |
Change in contingencies | (0.10%) | 0.40% | 0.50% |
Adjustments related to the Act | 0.00% | (0.30%) | 5.60% |
Adjustments related to vesting of restricted stock | (1.50%) | (1.80%) | (2.40%) |
Other | (0.50%) | (0.30%) | 0.10% |
Effective tax rate | 18.00% | 20.10% | 35.60% |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Warranty costs | $ 1,190 | $ 1,233 |
Sales incentives and discounts | 404 | 317 |
Stock-based compensation | 696 | 667 |
Pension | 2,002 | 1,337 |
State NOL's | 484 | 588 |
State credits | 1,818 | 2,794 |
All others | 560 | 559 |
Valuation allowance | (1,818) | (2,794) |
Total deferred tax assets | 5,336 | 4,701 |
Deferred tax liabilities: | ||
Depreciation and amortization expense | (947) | (1,009) |
Basis differences in joint venture | (399) | (367) |
Net deferred tax assets | $ 3,990 | $ 3,325 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of beginning and ending amount of unrecognized tax benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 393,000 | $ 243,000 |
(Decreases) additions based on tax positions related to the current year | (28,000) | 81,000 |
(Decreases) additions for tax positions of prior years | (7,000) | 69,000 |
Balance at December 31 | $ 358,000 | $ 393,000 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Discrete income tax provision adjustment | $ 1,700,000 | ||
Adjusted enactment date provisional amounts of decreasing tax expense | $ 100,000 | ||
Estimated tax benefit associated with FDII | $ 168,000 | ||
Total net income tax payments | $ 7,330,000 | $ 6,290,000 | $ 9,733,000 |
Latest tax year | |||
Income taxes | |||
Statutory federal income tax rate | 21.00% | ||
Earliest tax year | |||
Income taxes | |||
Statutory federal income tax rate | 35.00% | ||
State income taxes | |||
Income taxes | |||
Net operating loss carry forwards | $ 11,100,000 | ||
Other State Credits | |||
Income taxes | |||
Net operating loss carry forwards | $ 2,300,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Roll Forward | ||
Balance | $ (2,175) | $ (1,980) |
Change during period: | ||
Adoption of accounting standard (Note 1) | (414) | |
Before-tax amount | (287) | (410) |
Tax benefit (expense) | 63 | 89 |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 68 | 63 |
Net realized gain (loss) | (3) | 63 |
Total activity for the period | (573) | (195) |
Balance | (2,748) | (2,175) |
Pension adjustment | ||
AOCI Roll Forward | ||
Balance | (2,178) | (1,936) |
Change during period: | ||
Adoption of accounting standard (Note 1) | (404) | |
Before-tax amount | (300) | (390) |
Tax benefit (expense) | 66 | 85 |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 68 | 63 |
Total activity for the period | (570) | (242) |
Balance | (2,748) | (2,178) |
Unrealized Gain (Loss) on Securities | ||
AOCI Roll Forward | ||
Balance | 3 | (44) |
Change during period: | ||
Adoption of accounting standard (Note 1) | (10) | |
Before-tax amount | 13 | (20) |
Tax benefit (expense) | (3) | 4 |
Reclassification adjustment, net of taxes | ||
Net realized gain (loss) | (3) | 63 |
Total activity for the period | $ (3) | 47 |
Balance | $ 3 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-sale securities | ||
Available-for-sale securities | $ 7,665 | |
Fair value transfers between levels | ||
Transfers from Level 1 to Level 2 | $ 0 | |
Transfers from Level 2 to Level 1 | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value on a recurring basis | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 7,665 |
Investments measured at Net Asset Value - Trading securities | 6,716 | 5,518 |
Fair value on a recurring basis | Municipal Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 1,490 |
Fair value on a recurring basis | Corporate Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 6,175 |
Fair value on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 0 |
Fair value on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Municipal Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 0 |
Fair value on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 0 |
Fair value on a recurring basis | Significant other observable inputs (Level 2) | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 7,665 |
Fair value on a recurring basis | Significant other observable inputs (Level 2) | Municipal Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 1,490 |
Fair value on a recurring basis | Significant other observable inputs (Level 2) | Corporate Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 6,175 |
Fair value on a recurring basis | Significant unobservable inputs (Level 3) | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 0 |
Fair value on a recurring basis | Significant unobservable inputs (Level 3) | Municipal Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | 0 | 0 |
Fair value on a recurring basis | Significant unobservable inputs (Level 3) | Corporate Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Dealer Floor Plan Financing (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | ||
Repurchases of inventory | $ 3.4 | $ 0 |
Liability related to repurchase remains outstanding | 0 | |
Redistributed amounts | 3.1 | |
Net realizable value of repurchased inventory | 0.3 | |
Costs associated with repurchases | 0.1 | |
Total purchase obligation | $ 20.8 | |
Floor plan lender one | ||
COMMITMENTS AND CONTINGENCIES | ||
Repurchase limit in percentage of amount of average net receivables | 16.00% | |
Total purchase obligation | $ 13.1 | |
Additional floor plan lenders | ||
COMMITMENTS AND CONTINGENCIES | ||
Total purchase obligation | $ 7.7 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Income taxes and employee agreements (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
COMMITMENTS AND CONTINGENCIES. | |||
Long-term deferred tax liabilities | $ 358,000 | $ 393,000 | |
Selling, general and administrative expenses | $ 31,259,000 | 30,936,000 | $ 29,261,000 |
Employment agreement | |||
COMMITMENTS AND CONTINGENCIES. | |||
Number Of Employees | employee | 1 | ||
Monthly payment (in percent of profit) | 10.00% | ||
Selling, general and administrative expenses | $ 4,487,000 | $ 4,630,000 | $ 4,068,000 |
EMPLOYEE BENEFIT PLANS - SERP (
EMPLOYEE BENEFIT PLANS - SERP (Details) - SERP - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans | |||
Variable life insurance policies investment amount | $ 7,200,000 | $ 5,900,000 | |
Fair value of plan assets | 6,716,000 | 5,518,000 | |
Trading (losses) gains related to the SERP assets | $ 1,197,000 | $ (544,000) | $ 470,000 |
EMPLOYEE BENEFIT PLANS - Funded
EMPLOYEE BENEFIT PLANS - Funded status of Retirement Income Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CHANGE IN PLAN ASSETS: | |||
Funded status at end of year | $ 0 | $ 0 | |
Retirement Income Plan | |||
EMPLOYEE BENEFIT PLANS | |||
ACCUMULATED BENEFIT OBLIGATION, END OF YEAR | 6,433,000 | 5,833,000 | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | 5,833,000 | 6,379,000 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 255,000 | 251,000 | 266,000 |
Actuarial loss | 570,000 | (554,000) | |
Benefits paid | (225,000) | (243,000) | |
Projected benefit obligation at end of year | 6,433,000 | 5,833,000 | 6,379,000 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 6,802,000 | 6,722,000 | |
Actual return on plan assets | 737,000 | (447,000) | |
Employer contributions | 0 | 770,000 | |
Benefits paid | (225,000) | (243,000) | |
Fair value of plan assets at end of year | 7,314,000 | 6,802,000 | $ 6,722,000 |
Funded status at end of year | 881,000 | 969,000 | |
AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: | |||
Noncurrent assets | 881,000 | 969,000 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | 0 | |
Amounts recognized in balance sheet | 881,000 | 969,000 | |
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: | |||
Net loss | 3,524,000 | 3,311,000 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | |
Amounts (pre-tax) recognized in accumulated other comprehensive loss | $ 3,524,000 | $ 3,311,000 |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts recorded in consolidated balance sheet as pension liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
EMPLOYEE BENEFIT PLANS | ||
SERP liability | $ (9,980) | $ (7,045) |
Funded status of Retirement Income Plan | 0 | 0 |
Pension liabilities | $ (9,980) | $ (7,045) |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of net periodic benefit cost (Details) - Retirement Income Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | |||
Service cost for benefits earned during the period | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 255,000 | 251,000 | 266,000 |
Expected return on plan assets | (468,000) | (501,000) | (415,000) |
Amortization of net losses | 87,000 | 81,000 | 91,000 |
Net periodic benefit cost | (126,000) | (169,000) | $ (58,000) |
Employer contributions | $ 0 | $ 770,000 |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax amounts recognized in other comprehensive income (Details) - Retirement Income Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | |||
Net loss (gain) | $ 300,000 | $ 395,000 | $ (243,000) |
Amortization of net loss | (87,000) | (81,000) | (91,000) |
Net transition obligation (asset) | 0 | 0 | 0 |
Amount recognized in accumulated other comprehensive income | $ 213,000 | $ 314,000 | $ (334,000) |
EMPLOYEE BENEFIT PLANS - Summar
EMPLOYEE BENEFIT PLANS - Summary of accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in 2020 (Details) $ in Thousands | Dec. 31, 2019USD ($) |
EMPLOYEE BENEFIT PLANS | |
Amortization of net loss | $ 98 |
Prior service cost (credit) | 0 |
Net transition obligation (asset) | 0 |
Estimated net periodic cost | $ 98 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted average assumptions used to determine the projected benefit obligation and net benefit cost (Details) - Retirement Income Plan | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROJECTED BENEFIT OBLIGATION: | ||||
Discount rate | 3.70% | 4.65% | 4.05% | |
Rate of compensation increase | ||||
NET BENEFIT COST: | ||||
Discount rate | 4.65% | 4.05% | 4.50% | |
Expected return on plan assets | 7.00% | 7.00% | 7.00% | 7.00% |
Rate of compensation increase |
EMPLOYEE BENEFIT PLANS - Weig_2
EMPLOYEE BENEFIT PLANS - Weighted average asset allocation by asset category along with target allocation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Minimum | Investments measured at net asset value | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 0.00% | |
Retirement Income Plan | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Target Allocation for 2020 | 100.00% | |
Retirement Income Plan | Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 1.30% | 3.00% |
Retirement Income Plan | Domestic Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 0.00% | 39.50% |
Retirement Income Plan | International Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 0.00% | 19.00% |
Retirement Income Plan | Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 91.70% | 29.10% |
Retirement Income Plan | Investments measured at net asset value | ||
EMPLOYEE BENEFIT PLANS | ||
Percentage of Plan Assets | 7.00% | 9.40% |
Retirement Income Plan | Minimum | Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 0.00% | |
Retirement Income Plan | Minimum | Domestic Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 0.00% | |
Retirement Income Plan | Minimum | International Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 0.00% | |
Retirement Income Plan | Minimum | Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 15.00% | |
Retirement Income Plan | Maximum | Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 5.00% | |
Retirement Income Plan | Maximum | Domestic Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 40.00% | |
Retirement Income Plan | Maximum | International Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 20.00% | |
Retirement Income Plan | Maximum | Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 100.00% | |
Retirement Income Plan | Maximum | Investments measured at net asset value | ||
EMPLOYEE BENEFIT PLANS | ||
Target Allocation for 2020 | 12.00% |
EMPLOYEE BENEFIT PLANS - Plan a
EMPLOYEE BENEFIT PLANS - Plan assets using fair value hierarchy (Details) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
EMPLOYEE BENEFIT PLANS | ||
Investments Measured at Net Asset Value | $ 514 | $ 638 |
Investments at Fair Value | 7,314 | 6,802 |
Cash and Cash Equivalents | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 92 | 202 |
Cash and Cash Equivalents | Quoted prices in active markets for identical assets (Level 1) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 92 | 202 |
Fixed Income Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 6,708 | 1,979 |
Fixed Income Securities | Significant other observable inputs (Level 2) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 6,708 | 1,979 |
Domestic Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 2,693 | |
Domestic Equity Securities | Quoted prices in active markets for identical assets (Level 1) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 993 | |
Domestic Equity Securities | Significant other observable inputs (Level 2) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 1,700 | |
International Equity Securities | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 1,290 | |
International Equity Securities | Significant other observable inputs (Level 2) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 1,290 | |
Investment | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 6,800 | 6,164 |
Investment | Quoted prices in active markets for identical assets (Level 1) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | 92 | 1,195 |
Investment | Significant other observable inputs (Level 2) | ||
EMPLOYEE BENEFIT PLANS | ||
Total Assets in the Fair Value Hierarchy | $ 6,708 | $ 4,969 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimates that future benefits payable for Retirement Income Plan (Details) - Retirement Income Plan $ in Thousands | Dec. 31, 2019USD ($) |
EMPLOYEE BENEFIT PLANS | |
2020 | $ 271 |
2021 | 276 |
2022 | 291 |
2023 | 299 |
2024 | 308 |
2025-2029 | $ 1,713 |
EMPLOYEE BENEFIT PLANS - 401(k)
EMPLOYEE BENEFIT PLANS - 401(k) Plan and Stock Incentive Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | |||
Maximum percentage of annual contribution per employee | 25.00% | ||
Percentage of employer matching contribution | 100.00% | 50.00% | |
Threshold limit percentage of employee compensation | 6.00% | ||
Maximum period of vesting in contribution of employees | 3 years | ||
Employer matching contribution | $ 796,000 | $ 319,000 | $ 317,000 |
Stock Incentive Plans Member | |||
EMPLOYEE BENEFIT PLANS | |||
Stock authorized (in shares) | 3,000,000 | ||
Expiration term of share-based compensation plans | 10 years | ||
Number of shares available for grants | 1,742,900 | ||
Pre-tax stock-based employee compensation expense | $ 2,123,000 | 2,089,000 | 2,682,000 |
After tax stock-based employee compensation expense | $ 1,656,000 | $ 1,629,000 | $ 1,729,000 |
EMPLOYEE BENEFIT PLANS - Stock
EMPLOYEE BENEFIT PLANS - Stock Options and Restricted Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum threshold limit percentage of incentive stock options grants to owners | 10.00% | ||
Percentage of fair market value of the common stock | 110.00% | ||
Stock based compensation award, vesting period | 5 years | ||
Expiry period of the stock | 10 years | ||
Expiry period of the stock of the majority owners | 5 years | ||
Fair value of stock options method used | Black-Scholes option pricing model | ||
Options exercised in period | 0 | 0 | 0 |
Stock options outstanding | 0 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation award, vesting period | 6 years | ||
Stock based compensation award, vesting percentage | 20.00% |
EMPLOYEE BENEFIT PLANS - Summ_2
EMPLOYEE BENEFIT PLANS - Summary of changes in non-vested restricted shares (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Non-vested shares at beginning | 947,710 | 1,040,800 | |
Granted | 141,600 | 193,500 | |
Vested | (260,770) | (283,790) | |
Forfeited | (13,000) | (2,800) | |
Non-vested shares at ending | 815,540 | 947,710 | 1,040,800 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares at beginning | $ 9.41 | $ 7.76 | |
Granted | 17.21 | 13.97 | $ 13.39 |
Vested | 7.65 | 6.45 | |
Forfeited | 11.68 | 8.54 | |
Non-vested shares at ending | $ 11.29 | $ 9.41 | $ 7.76 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional information (Details) - Restricted Stock - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 17.21 | $ 13.97 | $ 13.39 |
Total fair value of shares vested | $ 3,818,000 | $ 4,289,000 | $ 4,432,000 |
Tax benefits for compensation expense for restricted stock | 517,000 | $ 645,000 | |
Unrecognized compensation cost related to non-vested restricted shares | $ 7,387,000 | ||
Unrecognized compensation cost related to non-vested restricted shares recognized period | 3 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RPC | 255 RC, LLC | ||||
Related Party Transaction [Line Items] | ||||
Joint venture ownership interest percentage | 50.00% | |||
Investment in joint venture | $ 2,554,000 | |||
Operating lease agreement term | 5 years | |||
Rent and allocable fixed cost for corporate aircraft | $ 159,000 | $ 159,000 | $ 157,000 | |
Payable due to related party | 1,000,000 | 800,000 | ||
RPC | Transition Support Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Aggregate service charges paid | 865,000 | 873,000 | $ 849,000 | |
Receivable (payable) due from (to) related party | $ (56,000) | $ (28,000) | ||
Chairman of Board and Director | ||||
Related Party Transaction [Line Items] | ||||
Voting power (in percent) | 50.00% |
LEASES - Assets and liabilities
LEASES - Assets and liabilities related to operating leases recorded on balance sheet (Details) - ASU No. 2016-02, Leases (Topic 842) $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Operating lease right-of-use assets | $ 159 |
Liabilities: | |
Current portion of operating lease liabilities | 47 |
Long-term operating lease liabilities | 110 |
Total lease liabilities | $ 157 |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Line Items] | |||
Total rent expense charged to operations | $ 191,000 | $ 183,000 | |
ASU No. 2016-02, Leases (Topic 842) | Selling, general and administrative expenses | |||
Leases [Line Items] | |||
Operating lease cost | $ 52,000 | ||
Short-term lease cost | 3,000 | ||
Total lease cost | $ 55,000 |
LEASES - Other information rela
LEASES - Other information related to operating leases (Details) - ASU No. 2016-02, Leases (Topic 842) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Line Items] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 46 |
Weighted average remaining lease term | 3 years 3 months 18 days |
Weighted average discount rate | 3.68% |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Future total rentals on our non-cancellable operating leases under the previous lease standard | |||
Aggregate | $ 223,000 | ||
2019 | 55,000 | ||
2020 | 54,000 | ||
2021 | 52,000 | ||
2022 | 52,000 | ||
2023 | $ 10,000 | ||
Initial lease term (in months) | 36 months | ||
2020 | $ 235,500 | ||
2021 | 235,500 | ||
2022 | 58,875 | ||
Total received leases | 529,875 | ||
Rental income | 147,000 | ||
ASU No. 2016-02, Leases (Topic 842) | |||
Maturity of lease liabilities | |||
2020 | 52,000 | ||
2021 | 52,000 | ||
2022 | 52,000 | ||
2023 | 10,000 | ||
Total lease payments | 166,000 | ||
Less: Amounts representing interest | (9,000) | ||
Lease liabilities | $ 157,000 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 25 | $ 25 | $ 25 |
Charged to Costs and Expenses | 14 | 0 | 0 |
Net (Write-Offs)/ Recoveries | (19) | 0 | 0 |
Balance at End of Period | 20 | 25 | 25 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,794 | 5,447 | 4,525 |
Charged to Costs and Expenses | 0 | 0 | 922 |
Net (Write-Offs)/ Recoveries | (976) | (2,653) | 0 |
Balance at End of Period | $ 1,818 | $ 2,794 | $ 5,447 |