Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MARINE PRODUCTS CORP | ||
Entity Central Index Key | 1,129,155 | ||
Trading Symbol | mpx | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 34,194,936 | ||
Entity Public Float | $ 131,839,491 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 8,745 | $ 7,684 |
Marketable securities | 2,966 | 2,636 |
Accounts receivable, net | 3,872 | 3,051 |
Inventories | 46,770 | 38,006 |
Income taxes receivable | 452 | 714 |
Prepaid expenses and other current assets | 1,795 | 2,096 |
Current assets | 64,600 | 54,187 |
Property, plant and equipment, net | 14,552 | 14,218 |
Goodwill | 3,308 | 3,308 |
Other intangibles, net | 465 | 465 |
Marketable securities | 4,699 | 10,395 |
Deferred income taxes | 3,325 | 3,649 |
Other assets | 9,931 | 9,678 |
Total assets | 100,880 | 95,900 |
Liabilities | ||
Accounts payable | 4,673 | 5,362 |
Accrued expenses and other liabilities | 13,494 | 13,999 |
Current liabilities | 18,167 | 19,361 |
Pension liabilities | 7,045 | 6,732 |
Other long-term liabilities | 456 | 203 |
Total liabilities | 25,668 | 26,296 |
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 - 34,328,486 shares in 2018, 34,572,157 shares in 2017 | 3,433 | 3,457 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 73,954 | 68,127 |
Accumulated other comprehensive loss | (2,175) | (1,980) |
Total stockholders' equity | 75,212 | 69,604 |
Total liabilities and stockholders' equity | $ 100,880 | $ 95,900 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
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 | 34,328,486 | 34,572,157 |
Common stock, shares outstanding | 34,328,486 | 34,572,157 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement | |||
Net sales | $ 298,616 | $ 267,316 | $ 241,330 |
Cost of goods sold | 232,293 | 208,296 | 190,863 |
Gross profit | 66,323 | 59,020 | 50,467 |
Selling, general and administrative expenses | 30,936 | 29,261 | 27,415 |
Operating income | 35,387 | 29,759 | 23,052 |
Interest income | 268 | 229 | 355 |
Income before income taxes | 35,655 | 29,988 | 23,407 |
Income tax provision | 7,167 | 10,688 | 6,662 |
Net income | $ 28,488 | $ 19,300 | $ 16,745 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 0.83 | $ 0.55 | $ 0.44 |
Diluted (in dollars per share) | 0.83 | 0.55 | 0.44 |
Dividends paid per share (in dollars per share) | $ 0.50 | $ 0.33 | $ 0.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income and Comprehensive Income | |||
Net income | $ 28,488 | $ 19,300 | $ 16,745 |
Other comprehensive income, net of taxes: | |||
Pension adjustment | (242) | 215 | (252) |
Unrealized gain (loss) on securities, net of reclassification adjustments | 47 | (13) | (29) |
Comprehensive income | $ 28,293 | $ 19,502 | $ 16,464 |
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, 2015 | $ 3,811 | $ 3,879 | $ 84,423 | $ (1,901) | $ 90,212 |
Balance (in shares) at Dec. 31, 2015 | 38,112,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 37 | 2,511 | 2,548 | ||
Stock issued for stock incentive plans, net (in shares) | 369,000 | ||||
Stock purchased and retired | $ (362) | (6,550) | (27,825) | (34,737) | |
Stock purchased and retired (in shares) | (3,626,000) | ||||
Net income | 16,745 | 16,745 | |||
Pension adjustment, net of taxes | (252) | (252) | |||
Unrealized loss on securities, net of taxes and reclassification adjustments | (29) | (29) | |||
Excess tax benefits for share-based payments | 160 | 160 | |||
Dividends declared | (9,202) | (9,202) | |||
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 loss on securities, net of taxes and reclassification adjustments | (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 | 34,572,157 | |||
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 loss on securities, net of taxes and reclassification adjustments | 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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | $ 28,488 | $ 19,300 | $ 16,745 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 1,820 | 1,526 | 1,382 |
Gain on sale of equipment and property | (8) | (103) | |
Amortization of premium related to marketable securities | 213 | 425 | 1,152 |
Stock-based compensation expense | 2,089 | 2,682 | 2,624 |
Excess tax benefits for share-based payments | (160) | ||
Deferred income tax provision (benefit) | 378 | 1,519 | (862) |
(Increase) decrease in assets: | |||
Accounts receivable | (821) | (1,964) | 169 |
Inventories | (8,764) | 4,482 | (9,850) |
Prepaid expenses and other current assets | 301 | (273) | 296 |
Income taxes receivable | 262 | (685) | 791 |
Other non-current assets | (563) | (912) | 1,266 |
Increase (decrease) in liabilities: | |||
Accounts payable | (689) | 199 | 1,482 |
Other accrued expenses | (505) | 1,760 | 2,282 |
Other long-term liabilities | 566 | 1,588 | (1,377) |
Net cash provided by operating activities | 22,775 | 29,639 | 15,837 |
INVESTING ACTIVITIES | |||
Capital expenditures | (2,154) | (2,410) | (1,940) |
Proceeds from sale of assets | 8 | 88 | |
Sales and maturities of marketable securities | 21,423 | 18,067 | 52,519 |
Purchases of marketable securities | (16,209) | (22,214) | (28,092) |
Net cash provided by (used for) investing activities | 3,060 | (6,549) | 22,575 |
FINANCING ACTIVITIES | |||
Payment of dividends | (17,252) | (11,504) | (9,202) |
Cash paid for common stock purchased and retired | (7,522) | (6,521) | (34,737) |
Excess tax benefits for share-based payments | 160 | ||
Net cash used for financing activities | (24,774) | (18,025) | (43,779) |
Net increase (decrease) in cash and cash equivalents | 1,061 | 5,065 | (5,367) |
Cash and cash equivalents at beginning of year | 7,684 | 2,619 | 7,986 |
Cash and cash equivalents at end of year | $ 8,745 | $ 7,684 | $ 2,619 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 — its Powerboat Manufacturing business. The Company’s 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 2018, 2017 or 2016. Net sales to the Company’s international dealers were approximately $19 million in 2018, $17 million in 2017, and $21 million in 2016. Common Stock Preferred Stock Share Repurchases Dividend Use of Estimates in the Preparation of Financial Statements Sales Recognition – Advertising Cash and Cash Equivalents Marketable Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Debt securities are classified as available-for-sale because the Company does 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 stockholders’ 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 (losses) gains on marketable securities totaled $(81,000) in 2018, 30,000 in 2017 and $(39,000) in 2016. Of the total (losses) gains realized, reclassification from other comprehensive income totaled approximately ($81,000) in 2018, 30,000 in 2017, and $(39,000) in 2016. There were $3,000 gross unrealized gains on marketable securities as of December 31, 2018 and none as of December 31, 2017. Gross unrealized losses on marketable securities totaled $12,000 as of December 31, 2018 and $70,000 as of December 31, 2017. The net unrealized loss on marketable securities totaled $9,000 as of December 31, 2018 and $70,000 as of December 31, 2017. The amortized cost basis, fair value and net unrealized loss of the available-for-sale securities are as follows: December 31, 2018 2017 Type of Securities Amortized Fair Net Amortized Fair Net (in thousands) Municipal Obligations $ 1,490 $ 1,490 $ — $ 13,101 $ 13,031 $ (70 ) Corporate Obligations 6,184 6,175 (9 ) — — — Total $ 7,674 $ 7,665 $ (9 ) $ 13,101 $ 13,031 $ (70 ) Municipal obligations consist primarily of municipal notes rated AA- or higher ranging in maturity from less than one year to over 20 years. Corporate obligations consist primarily of debentures and notes issued by other companies ranging in maturity from one to five years. These securities are rated BBB or higher. Investments with remaining maturities of less than 12 months are considered to be current marketable securities. Investments with remaining maturities greater than 12 months are considered to be non-current marketable securities. The Company’s non-current marketable securities are scheduled to mature between 2020 and 2022. Accounts Receivable Inventories Property, Plant and Equipment Goodwill and Other Intangibles Investments Warranty Costs (in thousands) 2018 2017 Balance at beginning of year $ 5,373 $ 4,629 Less: Payments made during the year (3,944 ) (2,599 ) Add: Warranty provision for the current year 3,901 3,436 Changes to warranty provision for prior years 277 (93 ) Balance at end of year $ 5,607 $ 5,373 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: (In thousands) 2018 2017 2016 Net income available for stockholders $ 28,488 $ 19,300 $ 16,745 Less: Adjustments for earnings attributable to participating securities (762 ) (595 ) (535 ) Net income used in calculating earnings per share $ 27,726 $ 18,705 $ 16,210 Weighted average shares outstanding (including participating securities) 34,529 34,843 37,857 Adjustment for participating securities (959 ) (1,091 ) (1,224 ) Shares used in calculating diluted earnings per share 33,570 33,752 36,633 Fair Value of Financial Instruments Concentration of Suppliers Recent Accounting Pronouncements During the year ended December 31, 2018, the FASB issued the following Accounting Standards Updates (ASUs): Recently Adopted Accounting Pronouncements: · Accounting Standards Update (ASU) No. 2014-09, Revenue from Contacts with Customers (Topic 606) - · ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): · ASU No. 2016-15, Statement of Cash Flows (Topic 230): · ASU No. 2016-16, Income Taxes (Topic 740): · ASU No. 2017-01, Business Combinations (Topic 805): · ASU No. 2017-09 —Compensation —Stock Compensation (Topic 718): Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2019: · Leases (Topic 842). · ASU No. 2017-08 —Receivables —Nonrefundable Fees and Other Costs (Subtopic 310-20): · ASU No. 2018-02—Income Statement—Reporting Comprehensive Income (Topic 220)— · ASU No. 2018-07 —Compensation —Stock Compensation (Topic 718) — To be adopted in 2020 and later: · ASU No. 2016-13, Financial Instruments — · ASU No. 2017-04 —Intangibles —Goodwill and Other (Topic 350): · ASU No. 2018-15 —Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): . |
Net sales
Net sales | 12 Months Ended |
Dec. 31, 2018 | |
NET SALES | |
Net sales | NOTE 2: Net Sales Accounting Policy - Nature of goods - · Boats and accessories (domestic sales) – upon delivery and acceptance by the dealer · Boats and accessories (international sales) – upon delivery to shipping port · Parts – upon shipment/delivery to carrier Payment terms - For most domestic customers, MPC manufactures and delivers boats and accessories and parts ahead of payment - i.e., MPC has fulfilled its performance obligations prior to submitting an invoice to the dealer. MPC invoices the customer when the products are delivered and receives the related compensation, typically within seven to ten business days after invoicing. For some domestic customers and all international customers, MPC requires payment prior to transferring control of the goods. These amounts are classified as deferred revenue and recognized when control has transferred, which generally occurs within three months of receiving the payment. 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 Company’s arrangements with its customers. Significant judgments Determining the transaction price - · Inputs: · Assumption: Other Disaggregation of revenues The following table disaggregates our sales by major source: (in thousands) 2018 2017 2016 Boats and accessories $ 294,537 $ 263,275 $ 237,403 Parts 4,079 4,041 3,927 Net sales $ 298,616 $ 267,316 $ 241,330 The following table disaggregates our revenues between domestic and international: (in thousands) 2018 2017 2016 Domestic $ 279,175 $ 250,394 $ 220,139 International 19,441 16,922 21,191 Net sales $ 298,616 $ 267,316 $ 241,330 Timing of revenue recognition for each of the periods presented is shown below: (in thousands) 2018 2017 2016 Products transferred at a point in time $ 298,616 $ 267,316 $ 241,330 Products transferred over time - - - Net sales $ 298,616 $ 267,316 $ 241,330 Contract balances - (in thousands) 2018 2017 Deferred revenue $ 496 $ 864 Substantially all of the amounts of deferred revenue as of December 31, 2018 and December 31, 2017 were recognized as sales during the following quarter, when control transferred. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable consist of the following: December 31, 2018 2017 (in thousands) Trade receivables $ 2,397 $ 1,377 Other 1,500 1,699 Total 3,897 3,076 Less: allowance for doubtful accounts (25 ) (25 ) Net accounts receivable $ 3,872 $ 3,051 Trade receivables consist primarily of balances related to the sales of boats which are shipped pursuant to “floor-plan financing” programs with qualified lenders. Other receivables consist primarily of rebate receivables from various suppliers. Changes in the Company’s allowance for doubtful accounts are disclosed in Schedule II on page 61 of this report. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | NOTE 4: INVENTORIES Inventories consist of the following: December 31, 2018 2017 (in thousands) Raw materials $ 26,874 $ 20,116 Work in process 10,671 8,300 Finished goods 9,225 9,590 Total inventories $ 46,770 $ 38,006 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, Estimated 2018 2017 (in thousands) Land N/A $ 878 $ 878 Buildings 7-40 19,705 19,611 Operating equipment and property 3-15 11,016 10,360 Furniture and fixtures 5-7 1,785 1,488 Vehicles 5-10 7,381 6,276 Gross property, plant and equipment 40,765 38,613 Less: accumulated depreciation (26,213 ) (24,395 ) Net property, plant and equipment $ 14,552 $ 14,218 Depreciation expense was $1,820,000 in 2018, $1,526,000 in 2017 and $1,382,000 in 2016. The Company’s accounts payable for purchases of property and equipment was immaterial as of December 31, 2018, December 31, 2017 and December 31, 2016. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, 2018 2017 (in thousands) Accrued payroll and related expenses $ 3,257 $ 3,116 Accrued sales incentives and discounts 3,547 3,969 Accrued warranty costs 5,607 5,373 Deferred revenue 496 864 Other 587 677 Total accrued expenses and other liabilities $ 13,494 $ 13,999 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | |
INCOME TAXES | NOTE 7: INCOME TAXES The Tax Cuts and Jobs Act (“the Act”), effective January 1, 2018, included a reduction to the US federal tax rate from 35 percent to 21 percent, adjustment of deferred tax assets and liabilities for the new corporate income tax rate, and adjustments to deductible compensation of our executive officers. Included 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 (“FDII”), and the elimination of the US manufacturing deduction. 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, 2018, 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 2018. Additionally, the Company estimated a tax benefit associated with FDII of $128 thousand, which has been reflected in the 2018 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 Company’s 2018 US federal income tax return. The following table lists the components of the provision for income taxes: Years ended December 31, 2018 2017 2016 (in thousands) Current provision: Federal $ 6,173 $ 8,623 $ 7,263 State 616 546 261 Deferred (benefit) provision: Federal 384 1,511 (507 ) State (6 ) 8 (355 ) Total income tax provision $ 7,167 $ 10,688 $ 6,662 A reconciliation between the federal statutory rate and Marine Products’ effective tax rate is as follows: Years ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.5 1.1 0.7 Research and experimentation credit (0.8 ) (0.8 ) (1.0 ) Tax-exempt interest (0.1 ) (0.2 ) (0.4 ) Tax-exempt loss (gain) on SERP assets 0.3 (0.6 ) (1.3 ) Manufacturing deduction — (3.0 ) (3.0 ) FDII deduction (0.4 ) — — Change in valuation allowance (0.1 ) (0.1 ) (1.4 ) Adjustments related to the Act (0.3 ) 5.6 — Adjustments related to vesting of restricted stock (1.8 ) (2.4 ) — Other 0.8 1.0 (0.1 ) Effective tax rate 20.1 % 35.6 % 28.5 % Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Warranty costs $ 1,233 $ 1,182 Sales incentives and discounts 317 348 Stock-based compensation 667 611 Pension 1,337 1,406 Uniform capitalization 44 47 All others 515 479 State credits and NOL’s 3,382 6,124 Valuation allowance (2,794 ) (5,447 ) Total deferred tax assets 4,701 4,750 Deferred tax liabilities: Depreciation and amortization expense (1,009 ) (781 ) Basis differences in joint venture (367 ) (320 ) Net deferred tax assets $ 3,325 $ 3,649 Total net income tax payments were $6,290,000 in 2018, $9,733,000 in 2017, and $6,546,000 in 2016. As of December 31, 2018, the Company had net operating loss carry forwards related to state income taxes of approximately $12.3 million and other state credits of approximately $3.5 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 Company’s 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, 2018 and 2017. During 2018, the Company recognized an increase 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: 2018 2017 Balance at January 1 $ 243,000 $ 15,000 Additions based on tax positions related to the current year 81,000 12,000 Additions for tax positions of prior years 69,000 216,000 Balance at December 31 $ 393,000 $ 243,000 It is reasonably possible that the amount of the unrecognized benefits with respect to the Company’s 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 Company’s 2015 through 2018 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, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 8: ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of the following: Pension Unrealized Total (in thousands) Balance at December 31, 2016 $ (2,151 ) $ (31 ) $ (2,182 ) Change during 2017: Before-tax amount 241 9 250 Tax expense (85 ) (3 ) (88 ) Reclassification adjustment, net of taxes Amortization of net loss 59 — 59 Net realized gain — (19 ) (19 ) Total activity in 2017 215 (13 ) 202 Balance at December 31, 2017 $ (1,936 ) $ (44 ) $ (1,980 ) Change during 2018: Before-tax amount (390 ) (20 ) (410 ) Tax benefit 85 4 89 Reclassification adjustment, net of taxes Amortization of net loss 63 — 63 Net realized loss — 63 63 Total activity in 2018 (242 ) 47 (195 ) Balance at December 31, 2018 $ (2,178 ) $ 3 $ (2,175 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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 Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 – Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-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 – Unobservable inputs developed using the Company’s 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, 2018 and 2017: Fair Value Measurements at December 31, 2018 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities: Municipal Obligations $ 1,490 $ — $ 1,490 $ — Corporate Obligations 6,175 — 6,175 — $ 7,665 $ — $ 7,665 $ — Investments measured at Net Asset Value- Trading securities $ 5,518 Fair Value Measurements at December 31, 2017 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities: Municipal Obligations $ 13,031 $ — $ 13,031 $ — Corporate Obligations — — — — $ 13,031 $ — $ 13,031 $ — Investments measured at Net Asset Value- Trading securities $ 6,031 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. S ignificant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2018 there were no significant transfers in or out of levels 1, 2 or 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, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10: COMMITMENTS AND CONTINGENCIES Lawsuits Dealer Floor Plan Financing There were no material repurchases of inventory under contractual agreements during 2018 or 2017. 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 $15.0 million as of December 31, 2018. T Minimum annual operating lease obligations with terms in excess of one year, in effect at December 31, 2018, are summarized in the following table: (in thousands) 2019 $ 55 2020 54 2021 52 2022 52 2023 10 Thereafter — Total rental commitments $ 223 Total rent expense charged to operations was approximately $191,000 in 2018, $183,000 in 2017 and $181,000 in 2016. Income Taxes Employment Agreements |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | NOTE 11: EMPLOYEE BENEFIT PLANS Supplemental Executive Retirement Plan (“SERP”) The Company classifies the SERP assets as trading securities as described in Note 1. The fair value of these assets totaled $5,518,000 as of December 31, 2018 and $6,031,000 as of December 31, 2017. 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 ($544,000) in 2018, $470,000 in 2017 and $106,000 in 2016. 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. In connection with death of an executive officer during 2016, the Company recorded tax free gains of approximately $751 thousand comprised of the following: $556 thousand generated by the insurance death proceeds under a Company-owned life insurance contract of approximately $1.9 million less cash surrender value of approximately $1.4 million, and $195 thousand as a result of insurance death benefits from a key-man life insurance policy. The net gain is reflected as part of selling, general and administrative expenses in 2016. Retirement Income Plan The Company’s fair value of the plan assets exceeded the projected benefit obligation for its Retirement Income Plan by $969,000 and thus the plan was over-funded as of December 31, 2018. The following table sets forth the funded status of the Retirement Income Plan and the amounts recognized in Marine Products’ consolidated balance sheets: December 31, 2018 2017 (in thousands) ACCUMULATED BENEFIT OBLIGATION, END OF YEAR $ 5,833 $ 6,379 CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 6,379 $ 6,083 Service cost — — Interest cost 251 266 Actuarial loss (554 ) 273 Benefits paid (243 ) (243 ) Projected benefit obligation at end of year $ 5,833 $ 6,379 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 6,722 $ 6,032 Actual return on plan assets (447 ) 933 Employer contributions 770 — Benefits paid (243 ) (243 ) Fair value of plan assets at end of year $ 6,802 $ 6,722 Funded status at end of year $ 969 $ 343 December 31, 2018 2017 (in thousands) AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: Noncurrent assets $ 969 $ 343 Current liabilities — — Noncurrent liabilities — — $ 969 $ 343 The funded status of the Retirement Income Plan was recorded in the consolidated balance sheets in other assets as of both December 31, 2018 and December 31, 2017. December 31, 2018 2017 (in thousands) AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: Net loss $ 3,311 $ 2,997 Prior service cost (credit) — — Net transition obligation (asset) — — $ 3,311 $ 2,997 The accumulated benefit obligation for the Retirement Income Plan as of December 31, 2018 and 2017 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: December 31, 2018 2017 (in thousands) SERP liability $ (7,045 ) $ (6,732 ) Funded status of Retirement Income Plan — — Pension liabilities $ (7,045 ) $ (6,732 ) Marine Products’ funding policy is to contribute to the Retirement Income Plan the amount required, if any, under the Employee Retirement Income Security Act of 1974. Contributions to the plan totaled $770,000 during 2018. There were no contributions to the plan during 2017. The components of net periodic benefit cost of the Retirement Income Plan are summarized as follows: Years ended December 31, 2018 2017 2016 (in thousands) Service cost for benefits earned during the period $ — $ — $ — Interest cost on projected benefit obligation 251 266 274 Expected return on plan assets (501 ) (415 ) (406 ) Amortization of net loss 81 91 84 $ (169 ) $ (58 ) $ (48 ) The Company recognized a pre-tax increase to the funded status in accumulated other comprehensive income of $314,000 in 2018 compared to a pre-tax increase of $334,000 in 2017 and a pre-tax decrease of $390,000 in 2016. There were no previously unrecognized prior service costs during 2018, 2017 and 2016. The pre-tax amounts recognized in other comprehensive income for the years ended December 31, 2018, 2017 and 2016 are summarized as follows: (in thousands) 2018 2017 2016 Net loss (gain) $ 395 $ (243 ) $ 474 Amortization of net loss (81 ) (91 ) (84 ) Net transition obligation (asset) — — — Amount recognized in accumulated other comprehensive income $ 314 $ (334 ) $ 390 The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost in 2019 are as follows: (in thousands) 2019 Amortization of net loss $ 94 Prior service cost (credit) — Net transition obligation (asset) — Estimated net periodic cost $ 94 The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: December 31, 2018 2017 2016 PROJECTED BENEFIT OBLIGATION: Discount rate 4.65 % 4.05 % 4.50 % Rate of compensation increase N/A N/A N/A NET BENEFIT COST: Discount rate 4.05 % 4.50 % 4.75 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A The Company’s 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 gives appropriate consideration to 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 plan’s weighted average asset allocation at December 31, 2018 and 2017 by asset category along with the target allocation for 2019 are as follows: Asset Category Target Percentage of Percentage of Cash and Cash Equivalents 0% - 3% 3.0 % 2.9 % Domestic Equity Securities 0% - 40% 39.5 42.3 International Equity Securities 0% - 30% 19.0 20.7 Fixed Income Securities 15% - 100% 29.1 23.8 Investments measured at net asset value 0% - 12% 9.4 10.3 Total 100.0 % 100.0 % 100.0 % For each of the asset categories in the pension plan, the investment strategy is identical – maximize the long-term rate of return on plan assets with an acceptable 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 2019. 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, 2018, 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 funds’ judgments and assumptions by reviewing the financial data included in the funds’ financial statements for reasonableness. The following tables present our plan assets using the fair value hierarchy as of December 31, 2018 and 2017. 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, 2018: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1 ) $ 202 $ 202 $ — Fixed Income Securities (2 ) 1,979 — 1,979 Domestic Equity Securities (3 ) 2,693 993 1,700 International Equity Securities (4 ) 1,290 — 1,290 Total Assets in the Fair Value Hierarchy $ 6,164 $ 1,195 $ 4,969 Investments Measured at Net Asset Value 638 Investments at Fair Value $ 6,802 Fair Value Hierarchy as of December 31, 2017: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1 ) $ 192 $ 192 $ — Fixed Income Securities (2 ) 1,601 — 1,601 Domestic Equity Securities (3 ) 2,844 1,047 1,797 International Equity Securities (4 ) 1,394 — 1,394 Total Assets in the Fair Value Hierarchy $ 6,031 $ 1,239 $ 4,792 Investments Measured at Net Asset Value 691 Investments at Fair Value $ 6,722 (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: (in thousands) 2019 $ 301 2020 294 2021 298 2022 295 2023 309 2024-2028 $ 1,704 401(k) Plan Effective January 1, 2019, the Company makes 100 percent matching contributions for each dollar of a participant’s contribution to the 401(k) Plan for the first three percent of his or her annual compensation and fifty cents for each dollar of a participant’s contribution to the 401(k) Plan for the next three percent of his or her annual compensation. 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 $2,089,000 ($1,629,000 after tax) for 2018, $2,682,000 ($1,729,000 after tax) for 2017 and $2,624,000 ($1,692,000 after tax) for 2016. 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 2018 and there have been no stock options outstanding since December 31, 2015. There was no tax benefit associated with the exercise of non-qualified stock options during 2018, 2017 or 2016. 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, 2018: Shares Weighted Average Non-vested shares at January 1, 2018 1,040,800 $ 7.76 Granted 193,500 13.97 Vested (283,790 ) 6.45 Forfeited (2,800 ) 8.54 Non-vested shares at December 31, 2018 947,710 $ 9.41 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2017: Shares Weighted Average Non-vested shares at January 1, 2017 1,200,900 $ 6.58 Granted 202,400 13.39 Vested (344,250 ) 6.92 Forfeited (18,250 ) 8.47 Non-vested shares at December 31, 2017 1,040,800 7.76 The fair value of restricted stock awards is based on the market price of the Company’s 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 $13.97 in 2018, $13.39 in 2017 and $5.77 in 2016. The total fair value of shares vested was approximately $4,289,000 in 2018, $4,432,000 in 2017 and $2,686,000 during 2016. For the year ending December 31, 2018 approximately $645,000 of excess tax benefit for stock-based compensation awards has been recorded as a discrete tax adjustment and classified within operating activities in the consolidated statements of cash flows compared to approximately 718,000 as of December 31, 2017. Other Information |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
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 companies’ 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 $873,000 in 2018, $849,000 in 2017 and $739,000 in 2016. The Company’s payable due to RPC for these services was $28,000 as of December 31, 2018 and $47,000 as of December 31, 2017. Many of the Company’s directors are also directors of RPC and all of the Company’s executive officers are employees of both the Company and RPC. The Employee Benefits Agreement provides for, among other things, the Company’s 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 2016, 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 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 2018 and $157,000 in 2017 and 2016 for the corporate aircraft. 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, 2018, the investment closely approximates the underlying equity in the net assets of 255 RC, LLC. A group that includes the Company’s 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 of the Company’s voting power. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS MARINE PRODUCTS CORPORATION AND SUBSIDIARIES (in thousands of dollars) For the years ended December 31, 2018, 2017 and 2016 Description Balance at Charged to Net Balance Year ended December 31, 2018 Allowance for doubtful accounts $ 25 $ — $ — $ 25 Deferred tax asset valuation allowance $ 5,447 $ — $ (2,653 ) $ 2,794 Year ended December 31, 2017 Allowance for doubtful accounts $ 25 $ — $ — $ 25 Deferred tax asset valuation allowance $ 4,525 $ 922 $ — $ 5,447 Year ended December 31, 2016 Allowance for doubtful accounts $ 25 $ — $ — $ 25 Deferred tax asset valuation allowance $ 4,694 $ — $ (169 ) $ 4,525 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 — its Powerboat Manufacturing business. The Company’s 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 2018, 2017 or 2016. Net sales to the Company’s international dealers were approximately $19 million in 2018, $17 million in 2017, and $21 million in 2016. |
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 – |
Advertising | Advertising |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Marketable Securities | Marketable Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designations as of each balance sheet date. Debt securities are classified as available-for-sale because the Company does 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 stockholders’ 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 (losses) gains on marketable securities totaled $(81,000) in 2018, 30,000 in 2017 and $(39,000) in 2016. Of the total (losses) gains realized, reclassification from other comprehensive income totaled approximately ($81,000) in 2018, 30,000 in 2017, and $(39,000) in 2016. There were $3,000 gross unrealized gains on marketable securities as of December 31, 2018 and none as of December 31, 2017. Gross unrealized losses on marketable securities totaled $12,000 as of December 31, 2018 and $70,000 as of December 31, 2017. The net unrealized loss on marketable securities totaled $9,000 as of December 31, 2018 and $70,000 as of December 31, 2017. The amortized cost basis, fair value and net unrealized loss of the available-for-sale securities are as follows: December 31, 2018 2017 Type of Securities Amortized Fair Net Amortized Fair Net (in thousands) Municipal Obligations $ 1,490 $ 1,490 $ — $ 13,101 $ 13,031 $ (70 ) Corporate Obligations 6,184 6,175 (9 ) — — — Total $ 7,674 $ 7,665 $ (9 ) $ 13,101 $ 13,031 $ (70 ) Municipal obligations consist primarily of municipal notes rated AA- or higher ranging in maturity from less than one year to over 20 years. Corporate obligations consist primarily of debentures and notes issued by other companies ranging in maturity from one to five years. These securities are rated BBB or higher. Investments with remaining maturities of less than 12 months are considered to be current marketable securities. Investments with remaining maturities greater than 12 months are considered to be non-current marketable securities. The Company’s non-current marketable securities are scheduled to mature between 2020 and 2022. |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment |
Goodwill and Other Intangibles | Goodwill and Other Intangibles |
Investments | Investments |
Warranty Costs | Warranty Costs (in thousands) 2018 2017 Balance at beginning of year $ 5,373 $ 4,629 Less: Payments made during the year (3,944 ) (2,599 ) Add: Warranty provision for the current year 3,901 3,436 Changes to warranty provision for prior years 277 (93 ) Balance at end of year $ 5,607 $ 5,373 |
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: (In thousands) 2018 2017 2016 Net income available for stockholders $ 28,488 $ 19,300 $ 16,745 Less: Adjustments for earnings attributable to participating securities (762 ) (595 ) (535 ) Net income used in calculating earnings per share $ 27,726 $ 18,705 $ 16,210 Weighted average shares outstanding (including participating securities) 34,529 34,843 37,857 Adjustment for participating securities (959 ) (1,091 ) (1,224 ) Shares used in calculating diluted earnings per share 33,570 33,752 36,633 |
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, 2018, the FASB issued the following Accounting Standards Updates (ASUs): Recently Adopted Accounting Pronouncements: · Accounting Standards Update (ASU) No. 2014-09, Revenue from Contacts with Customers (Topic 606) - · ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): · ASU No. 2016-15, Statement of Cash Flows (Topic 230): · ASU No. 2016-16, Income Taxes (Topic 740): · ASU No. 2017-01, Business Combinations (Topic 805): · ASU No. 2017-09 —Compensation —Stock Compensation (Topic 718): Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2019: · Leases (Topic 842). · ASU No. 2017-08 —Receivables —Nonrefundable Fees and Other Costs (Subtopic 310-20): · ASU No. 2018-02—Income Statement—Reporting Comprehensive Income (Topic 220)— · ASU No. 2018-07 —Compensation —Stock Compensation (Topic 718) — To be adopted in 2020 and later: · ASU No. 2016-13, Financial Instruments — · ASU No. 2017-04 —Intangibles —Goodwill and Other (Topic 350): · ASU No. 2018-15 —Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): . |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of amortized cost basis, fair value and net unrealized gains on the available-for-sale securities | December 31, 2018 2017 Type of Securities Amortized Fair Net Amortized Fair Net (in thousands) Municipal Obligations $ 1,490 $ 1,490 $ — $ 13,101 $ 13,031 $ (70 ) Corporate Obligations 6,184 6,175 (9 ) — — — Total $ 7,674 $ 7,665 $ (9 ) $ 13,101 $ 13,031 $ (70 ) |
Schedule of analysis of warranty accruals | (in thousands) 2018 2017 Balance at beginning of year $ 5,373 $ 4,629 Less: Payments made during the year (3,944 ) (2,599 ) Add: Warranty provision for the current year 3,901 3,436 Changes to warranty provision for prior years 277 (93 ) Balance at end of year $ 5,607 $ 5,373 |
Schedule of reconciliation of weighted average shares outstanding | (In thousands) 2018 2017 2016 Net income available for stockholders $ 28,488 $ 19,300 $ 16,745 Less: Adjustments for earnings attributable to participating securities (762 ) (595 ) (535 ) Net income used in calculating earnings per share $ 27,726 $ 18,705 $ 16,210 Weighted average shares outstanding (including participating securities) 34,529 34,843 37,857 Adjustment for participating securities (959 ) (1,091 ) (1,224 ) Shares used in calculating diluted earnings per share 33,570 33,752 36,633 |
Net sales (Tables)
Net sales (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
NET SALES | |
Schedule of disaggregation of revenues | (in thousands) 2018 2017 2016 Boats and accessories $ 294,537 $ 263,275 $ 237,403 Parts 4,079 4,041 3,927 Net sales $ 298,616 $ 267,316 $ 241,330 (in thousands) 2018 2017 2016 Domestic $ 279,175 $ 250,394 $ 220,139 International 19,441 16,922 21,191 Net sales $ 298,616 $ 267,316 $ 241,330 (in thousands) 2018 2017 2016 Products transferred at a point in time $ 298,616 $ 267,316 $ 241,330 Products transferred over time - - - Net sales $ 298,616 $ 267,316 $ 241,330 |
Schedule of contract balances | (in thousands) 2018 2017 Deferred revenue $ 496 $ 864 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable | December 31, 2018 2017 (in thousands) Trade receivables $ 2,397 $ 1,377 Other 1,500 1,699 Total 3,897 3,076 Less: allowance for doubtful accounts (25 ) (25 ) Net accounts receivable $ 3,872 $ 3,051 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
Schedule of Inventory | December 31, 2018 2017 (in thousands) Raw materials $ 26,874 $ 20,116 Work in process 10,671 8,300 Finished goods 9,225 9,590 Total inventories $ 46,770 $ 38,006 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | December 31, Estimated 2018 2017 (in thousands) Land N/A $ 878 $ 878 Buildings 7-40 19,705 19,611 Operating equipment and property 3-15 11,016 10,360 Furniture and fixtures 5-7 1,785 1,488 Vehicles 5-10 7,381 6,276 Gross property, plant and equipment 40,765 38,613 Less: accumulated depreciation (26,213 ) (24,395 ) Net property, plant and equipment $ 14,552 $ 14,218 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | December 31, 2018 2017 (in thousands) Accrued payroll and related expenses $ 3,257 $ 3,116 Accrued sales incentives and discounts 3,547 3,969 Accrued warranty costs 5,607 5,373 Deferred revenue 496 864 Other 587 677 Total accrued expenses and other liabilities $ 13,494 $ 13,999 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | |
Schedule of components of the provision for income taxes | Years ended December 31, 2018 2017 2016 (in thousands) Current provision: Federal $ 6,173 $ 8,623 $ 7,263 State 616 546 261 Deferred (benefit) provision: Federal 384 1,511 (507 ) State (6 ) 8 (355 ) Total income tax provision $ 7,167 $ 10,688 $ 6,662 |
Schedule of reconciliation between the federal statutory rate and Marine Products' effective tax rate | Years ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 1.5 1.1 0.7 Research and experimentation credit (0.8 ) (0.8 ) (1.0 ) Tax-exempt interest (0.1 ) (0.2 ) (0.4 ) Tax-exempt loss (gain) on SERP assets 0.3 (0.6 ) (1.3 ) Manufacturing deduction — (3.0 ) (3.0 ) FDII deduction (0.4 ) — — Change in valuation allowance (0.1 ) (0.1 ) (1.4 ) Adjustments related to the Act (0.3 ) 5.6 — Adjustments related to vesting of restricted stock (1.8 ) (2.4 ) — Other 0.8 1.0 (0.1 ) Effective tax rate 20.1 % 35.6 % 28.5 % |
Schedule of components of deferred tax assets and liabilities | December 31, 2018 2017 (in thousands) Deferred tax assets: Warranty costs $ 1,233 $ 1,182 Sales incentives and discounts 317 348 Stock-based compensation 667 611 Pension 1,337 1,406 Uniform capitalization 44 47 All others 515 479 State credits and NOL’s 3,382 6,124 Valuation allowance (2,794 ) (5,447 ) Total deferred tax assets 4,701 4,750 Deferred tax liabilities: Depreciation and amortization expense (1,009 ) (781 ) Basis differences in joint venture (367 ) (320 ) Net deferred tax assets $ 3,325 $ 3,649 |
Schedule of unrecognized tax benefits | 2018 2017 Balance at January 1 $ 243,000 $ 15,000 Additions based on tax positions related to the current year 81,000 12,000 Additions for tax positions of prior years 69,000 216,000 Balance at December 31 $ 393,000 $ 243,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of accumulated other comprehensive loss | Pension Unrealized Total (in thousands) Balance at December 31, 2016 $ (2,151 ) $ (31 ) $ (2,182 ) Change during 2017: Before-tax amount 241 9 250 Tax expense (85 ) (3 ) (88 ) Reclassification adjustment, net of taxes Amortization of net loss 59 — 59 Net realized gain — (19 ) (19 ) Total activity in 2017 215 (13 ) 202 Balance at December 31, 2017 $ (1,936 ) $ (44 ) $ (1,980 ) Change during 2018: Before-tax amount (390 ) (20 ) (410 ) Tax benefit 85 4 89 Reclassification adjustment, net of taxes Amortization of net loss 63 — 63 Net realized loss — 63 63 Total activity in 2018 (242 ) 47 (195 ) Balance at December 31, 2018 $ (2,178 ) $ 3 $ (2,175 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE MEASUREMENTS | |
Schedule of the valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at December 31, 2018 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities: Municipal Obligations $ 1,490 $ — $ 1,490 $ — Corporate Obligations 6,175 — 6,175 — $ 7,665 $ — $ 7,665 $ — Investments measured at Net Asset Value- Trading securities $ 5,518 Fair Value Measurements at December 31, 2017 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities: Municipal Obligations $ 13,031 $ — $ 13,031 $ — Corporate Obligations — — — — $ 13,031 $ — $ 13,031 $ — Investments measured at Net Asset Value- Trading securities $ 6,031 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of annual operating lease obligations with terms in excess of one year | (in thousands) 2019 $ 55 2020 54 2021 52 2022 52 2023 10 Thereafter — Total rental commitments $ 223 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of funded status of the retirement income plan | December 31, 2018 2017 (in thousands) ACCUMULATED BENEFIT OBLIGATION, END OF YEAR $ 5,833 $ 6,379 CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 6,379 $ 6,083 Service cost — — Interest cost 251 266 Actuarial loss (554 ) 273 Benefits paid (243 ) (243 ) Projected benefit obligation at end of year $ 5,833 $ 6,379 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 6,722 $ 6,032 Actual return on plan assets (447 ) 933 Employer contributions 770 — Benefits paid (243 ) (243 ) Fair value of plan assets at end of year $ 6,802 $ 6,722 Funded status at end of year $ 969 $ 343 December 31, 2018 2017 (in thousands) AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: Noncurrent assets $ 969 $ 343 Current liabilities — — Noncurrent liabilities — — $ 969 $ 343 December 31, 2018 2017 (in thousands) AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: Net loss $ 3,311 $ 2,997 Prior service cost (credit) — — Net transition obligation (asset) — — $ 3,311 $ 2,997 |
Schedule of amounts recorded in the consolidated balance sheets | December 31, 2018 2017 (in thousands) SERP liability $ (7,045 ) $ (6,732 ) Funded status of Retirement Income Plan — — Pension liabilities $ (7,045 ) $ (6,732 ) |
Schedule of net periodic benefit cost | Years ended December 31, 2018 2017 2016 (in thousands) Service cost for benefits earned during the period $ — $ — $ — Interest cost on projected benefit obligation 251 266 274 Expected return on plan assets (501 ) (415 ) (406 ) Amortization of net loss 81 91 84 $ (169 ) $ (58 ) $ (48 ) |
Schedule of amounts recognized in other comprehensive loss | (in thousands) 2018 2017 2016 Net loss (gain) $ 395 $ (243 ) $ 474 Amortization of net loss (81 ) (91 ) (84 ) Net transition obligation (asset) — — — Amount recognized in accumulated other comprehensive income $ 314 $ (334 ) $ 390 |
Schedule of components of net periodic benefit | (in thousands) 2019 Amortization of net loss $ 94 Prior service cost (credit) — Net transition obligation (asset) — Estimated net periodic cost $ 94 |
Schedule of weighted average assumptions | December 31, 2018 2017 2016 PROJECTED BENEFIT OBLIGATION: Discount rate 4.65 % 4.05 % 4.50 % Rate of compensation increase N/A N/A N/A NET BENEFIT COST: Discount rate 4.05 % 4.50 % 4.75 % 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 | Asset Category Target Percentage of Percentage of Cash and Cash Equivalents 0% - 3% 3.0 % 2.9 % Domestic Equity Securities 0% - 40% 39.5 42.3 International Equity Securities 0% - 30% 19.0 20.7 Fixed Income Securities 15% - 100% 29.1 23.8 Investments measured at net asset value 0% - 12% 9.4 10.3 Total 100.0 % 100.0 % 100.0 % |
Schedule of plan assets using the fair value hierarchy | Fair Value Hierarchy as of December 31, 2018: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1 ) $ 202 $ 202 $ — Fixed Income Securities (2 ) 1,979 — 1,979 Domestic Equity Securities (3 ) 2,693 993 1,700 International Equity Securities (4 ) 1,290 — 1,290 Total Assets in the Fair Value Hierarchy $ 6,164 $ 1,195 $ 4,969 Investments Measured at Net Asset Value 638 Investments at Fair Value $ 6,802 Fair Value Hierarchy as of December 31, 2017: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1 ) $ 192 $ 192 $ — Fixed Income Securities (2 ) 1,601 — 1,601 Domestic Equity Securities (3 ) 2,844 1,047 1,797 International Equity Securities (4 ) 1,394 — 1,394 Total Assets in the Fair Value Hierarchy $ 6,031 $ 1,239 $ 4,792 Investments Measured at Net Asset Value 691 Investments at Fair Value $ 6,722 (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 | (in thousands) 2019 $ 301 2020 294 2021 298 2022 295 2023 309 2024-2028 $ 1,704 |
Schedule of summary of the changes in non-vested restricted shares | Shares Weighted Average Non-vested shares at January 1, 2018 1,040,800 $ 7.76 Granted 193,500 13.97 Vested (283,790 ) 6.45 Forfeited (2,800 ) 8.54 Non-vested shares at December 31, 2018 947,710 $ 9.41 Shares Weighted Average Non-vested shares at January 1, 2017 1,200,900 $ 6.58 Granted 202,400 13.39 Vested (344,250 ) 6.92 Forfeited (18,250 ) 8.47 Non-vested shares at December 31, 2017 1,040,800 7.76 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Amortized cost basis, fair value and net unrealized gains of available-for-sale securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | $ 7,674 | $ 13,101 |
Fair Value | 7,665 | 13,031 |
Net Unrealized Loss | (9) | (70) |
Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 1,490 | 13,101 |
Fair Value | 1,490 | 13,031 |
Net Unrealized Loss | 0 | (70) |
Corporate Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 6,184 | 0 |
Fair Value | 6,175 | 0 |
Net Unrealized Loss | $ (9) | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Analysis of warranty accruals (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of year | $ 5,373 | $ 4,629 |
Less: Payments made during the year | (3,944) | (2,599) |
Add: Warranty provision for the current year | 3,901 | 3,436 |
Changes to warranty provision for prior years | 277 | (93) |
Balance at end of year | $ 5,607 | $ 5,373 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of weighted average shares outstanding (Details 2) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net income available for stockholders | $ 28,488 | $ 19,300 | $ 16,745 |
Less: Adjustments for earnings attributable to participating securities | (762) | (595) | (535) |
Net income used in calculating earnings per share | $ 27,726 | $ 18,705 | $ 16,210 |
Weighted average shares outstanding (including participating securities) | 34,529 | 34,843 | 37,857 |
Adjustment for participating securities | (959) | (1,091) | (1,224) |
Shares used in calculating diluted earnings per share | 33,570 | 33,752 | 36,633 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Concentration Risk [Line Items] | |||
Net sales to all dealers | $ 298,616 | $ 267,316 | $ 241,330 |
Net Sales | International Dealer | |||
Concentration Risk [Line Items] | |||
Number of reportable segment | Segment | 1 | ||
Net sales to all dealers | $ 19,000 | $ 17,000 | $ 21,000 |
Net Sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, customer | No single dealer accounted for more than 10 percent of net sales | No single dealer accounted for more than 10 percent of net sales | No single dealer accounted for more than 10 percent of net sales |
Concentration risk, benchmark description | more than 10 percent | more than 10 percent | more than 10 percent |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Number of common stock share authorized to issue | 74,000,000 | 74,000,000 |
Common stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
Number of votes each common shareholders entitled to provide | one vote | |
Number of preferred stock share authorized to issue | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollar per share) | $ 0.10 | $ 0.10 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 2) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 22, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||
Prepaid expenses related to unamortized product brochure costs | $ 243,000 | $ 342,000 | ||
Net realized (losses) gains on marketable securities | (81,000) | 30,000 | $ (39,000) | |
Reclassification of net realized (losses) gains from other comprehensive income | (81,000) | 30,000 | (39,000) | |
Gross unrealized gains on marketable securities | 3,000 | 0 | ||
Gross unrealized losses on marketable securities | 12,000 | 70,000 | ||
Unrealized loss on marketable securities totaled | 9,000 | 70,000 | ||
Selling, general and administrative expenses | ||||
Significant Accounting Policies [Line Items] | ||||
Advertising expenses | $ 2,468,000 | $ 2,305,000 | $ 2,545,000 | |
Dividend declared | ||||
Significant Accounting Policies [Line Items] | ||||
Amount of dividend payable in cash per share | $ 0.10 | |||
Subsequent Event | Dividend declared | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of increased dividends payable | 20.00% | |||
Amount of dividend payable in cash per share | $ 0.12 | |||
Dividends payable, date declared | Jan. 22, 2019 | |||
Dividend payable, date to be payable | Mar. 11, 2019 | |||
Dividends payable, date of record | Feb. 11, 2019 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 3) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |
Period of maturity debentures | one to five years |
Period of current marketable securities | less than 12 months |
Period of non-current marketable securities | greater than 12 months |
Maturity term of non-current marketable securities | between 2020 and 2022 |
Municipal debt obligations | AA- or higher | |
Schedule of Available-for-sale Securities [Line Items] | |
Period of maturity debt obligations | less than one year to over 20 years |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 4) | 12 Months Ended | ||
Dec. 31, 2018USD ($)SupplierEngine | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||
Goodwill | $ 3,308,000 | $ 3,308,000 | |
Research and development costs | $ 822,000 | $ 960,000 | $ 858,000 |
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Number of supplier | Supplier | 4 | ||
Number of types of engines | Engine | 3 | ||
Methods of depreciation | straight-line basis | ||
Earliest tax year | |||
Significant Accounting Policies [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Latest tax year | |||
Significant Accounting Policies [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
Accounts Receivable | |||
Significant Accounting Policies [Line Items] | |||
Percentage of domestic shipments made pursuant to floor plan financing | 68.00% |
NET SALES (Disaggregates sales
NET SALES (Disaggregates sales by major source) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 298,616 | $ 267,316 | $ 241,330 |
Boats And accessories | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 294,537 | 263,275 | 237,403 |
Parts | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,079 | $ 4,041 | $ 3,927 |
NET SALES (Disaggregates revenu
NET SALES (Disaggregates revenues between domestic and international) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 298,616 | $ 267,316 | $ 241,330 |
Domestic | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 279,175 | 250,394 | 220,139 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 19,441 | $ 16,922 | $ 21,191 |
NET SALES (Timing of revenue re
NET SALES (Timing of revenue recognition) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 298,616 | $ 267,316 | $ 241,330 |
Products transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 298,616 | 267,316 | 241,330 |
Products transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 0 | $ 0 | $ 0 |
NET SALES (Deferred revenue and
NET SALES (Deferred revenue and are included in Accrued expenses and other liabilities on the Consolidated Balance Sheets) (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 496 | $ 864 |
Accrued expenses and other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 496 | $ 864 |
NET SALES (Detail Textuals)
NET SALES (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018 | |
NET SALES | |
Revenue, description of payment terms | seven to ten business days |
ACCOUNTS RECEIVABLE - Summary o
ACCOUNTS RECEIVABLE - Summary of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable | ||
Trade receivables | $ 2,397 | $ 1,377 |
Other | 1,500 | 1,699 |
Total | 3,897 | 3,076 |
Less: allowance for doubtful accounts | (25) | (25) |
Net accounts receivable | $ 3,872 | $ 3,051 |
INVENTORIES - Summary of invent
INVENTORIES - Summary of inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
INVENTORIES | ||
Raw materials | $ 26,874 | $ 20,116 |
Work in process | 10,671 | 8,300 |
Finished goods | 9,225 | 9,590 |
Total inventories | $ 46,770 | $ 38,006 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property, plant and equipment are presented at cost, net of accumulated depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 40,765 | $ 38,613 |
Less: accumulated depreciation | (26,213) | (24,395) |
Net property, plant and equipment | 14,552 | 14,218 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 878 | 878 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 19,705 | 19,611 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Operating equipment and property | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 11,016 | 10,360 |
Operating equipment and property | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Operating equipment and property | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 13 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 1,785 | 1,488 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 7,381 | $ 6,276 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Depreciation expense | $ 1,820 | $ 1,526 | $ 1,382 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Summary of accrued expenses and other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued payroll and related expenses | $ 3,257 | $ 3,116 |
Accrued sales incentives and discounts | 3,547 | 3,969 |
Accrued warranty costs | 5,607 | 5,373 |
Deferred revenue | 496 | 864 |
Other | 587 | 677 |
Total accrued expenses and other liabilities | $ 13,494 | $ 13,999 |
INCOME TAXES - Components of pr
INCOME TAXES - Components of provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision: | |||
Federal | $ 6,173 | $ 8,623 | $ 7,263 |
State | 616 | 546 | 261 |
Deferred (benefit) provision: | |||
Federal | 384 | 1,511 | (507) |
State | (6) | 8 | (355) |
Total income tax provision | $ 7,167 | $ 10,688 | $ 6,662 |
INCOME TAXES - Reconciliation b
INCOME TAXES - Reconciliation between the federal statutory rate and effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INCOME TAXES | |||
Federal statutory rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.50% | 1.10% | 0.70% |
Research and experimentation credit | (0.80%) | (0.80%) | (1.00%) |
Tax-exempt interest | (0.10%) | (0.20%) | (0.40%) |
Tax-exempt gain on SERP assets | 0.30% | (0.60%) | (1.30%) |
Manufacturing deduction | (0.00%) | (3.00%) | (3.00%) |
FDII deduction | (0.40%) | 0.00% | 0.00% |
Change in valuation allowance | (0.10%) | (0.10%) | (1.40%) |
Adjustments related to the Act | (0.30%) | 5.60% | 0.00% |
Adjustments related to vesting of restricted stock | (1.80%) | (2.40%) | 0.00% |
Other | 0.80% | 1.00% | (0.10%) |
Effective tax rate | 20.10% | 35.60% | 28.50% |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Warranty costs | $ 1,233 | $ 1,182 |
Sales incentives and discounts | 317 | 348 |
Stock-based compensation | 667 | 611 |
Pension | 1,337 | 1,406 |
Uniform capitalization | 44 | 47 |
All others | 515 | 479 |
State credits and NOL's | 3,382 | 6,124 |
Valuation allowance | (2,794) | (5,447) |
Total deferred tax assets | 4,701 | 4,750 |
Deferred tax liabilities: | ||
Depreciation and amortization expense | (1,009) | (781) |
Basis differences in joint venture | (367) | (320) |
Net deferred tax assets | $ 3,325 | $ 3,649 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of beginning and ending amount of unrecognized tax benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 243,000 | $ 15,000 |
Additions based on tax positions related to the current year | 81,000 | 12,000 |
Additions for tax positions of prior years | 69,000 | 216,000 |
Balance at December 31 | $ 393,000 | $ 243,000 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Discrete income tax provision adjustment | $ 1,700,000 | ||
Total net income tax payments | $ 6,290,000 | $ 9,733,000 | $ 6,546,000 |
Adjusted enactment date provisional amounts of decreasing tax expense | 100,000 | ||
Estimated tax benefit associated with FDII | $ 128,000 | ||
Terms of expiration and cancellation of aggregate repurchase obligation | less than one year | ||
Earliest tax year | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Latest tax year | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
State income taxes | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forwards related to state income taxes | $ 12,300,000 | ||
Other state credits | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forwards related to state income taxes | $ 3,500,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ (1,980) | $ (2,182) |
Change during period: | ||
Before-tax amount | (410) | 250 |
Tax benefit (expense) | 89 | (88) |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 63 | 59 |
Net realized gain (loss) | 63 | (19) |
Total activity in period | (195) | 202 |
Balance | (2,175) | (1,980) |
Pension Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (1,936) | (2,151) |
Change during period: | ||
Before-tax amount | (390) | 241 |
Tax benefit (expense) | 85 | (85) |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 63 | 59 |
Net realized gain (loss) | 0 | 0 |
Total activity in period | (242) | 215 |
Balance | (2,178) | (1,936) |
Unrealized Loss on Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (44) | (31) |
Change during period: | ||
Before-tax amount | (20) | 9 |
Tax benefit (expense) | 4 | (3) |
Reclassification adjustment, net of taxes | ||
Amortization of net loss | 0 | 0 |
Net realized gain (loss) | 63 | (19) |
Total activity in period | 47 | (13) |
Balance | $ 3 | $ (44) |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of valuation of financial instruments measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities | ||
Available-for-sale securities: | $ 7,665 | $ 13,031 |
Fair value on a recurring basis | ||
Available-for-sale securities | ||
Available-for-sale securities: | 7,665 | 13,031 |
Investments measured at Net Asset Value - Trading securities | 5,518 | 6,031 |
Fair value on a recurring basis | Municipal Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities: | 1,490 | 13,031 |
Fair value on a recurring basis | Corporate Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities: | 6,175 | 0 |
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: | 7,665 | 13,031 |
Fair value on a recurring basis | Significant other observable inputs, Level 2 | Municipal Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities: | 1,490 | 13,031 |
Fair value on a recurring basis | Significant other observable inputs, Level 2 | Corporate Obligations | ||
Available-for-sale securities | ||
Available-for-sale securities: | 6,175 | 0 |
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 - Minimum annual operating lease obligation (Details) $ in Thousands | Dec. 31, 2018USD ($) |
COMMITMENTS AND CONTINGENCIES | |
2,019 | $ 55 |
2,020 | 54 |
2,021 | 52 |
2,022 | 52 |
2,023 | 10 |
Thereafter | 0 |
Total rental commitments | $ 223 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Detail Textuals) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Repurchase limit in percentage of amount of average net receivables | 16.00% |
Maximum repurchase obligation for one lender | $ 15 |
Maximum repurchase obligation all additional lenders | 5.7 |
Aggregate repurchase obligation | $ 20.7 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Employee | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | |||
Selling, general and administrative expenses | $ 30,936,000 | $ 29,261,000 | $ 27,415,000 |
Total rent expense charged to operations | 191,000 | 183,000 | 181,000 |
Long-term deferred tax liabilities | $ 393,000 | 191,000 | |
Employment agreement | |||
Commitments And Contingencies [Line Items] | |||
Number of employees | Employee | 1 | ||
Monthly payment in percentage of profits | 10.00% | ||
Selling, general and administrative expenses | $ 4,630,000 | $ 4,068,000 | $ 4,202,000 |
EMPLOYEE BENEFIT PLANS - Funded
EMPLOYEE BENEFIT PLANS - Funded status of Retirement Income Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CHANGE IN PLAN ASSETS: | |||
Funded status at end of year | $ 0 | $ 0 | |
Retirement Income Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
ACCUMULATED BENEFIT OBLIGATION, END OF YEAR | 5,833 | 6,379 | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | 6,379 | 6,083 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 251 | 266 | 274 |
Actuarial loss (gain) | (554) | 273 | |
Benefits paid | (243) | (243) | |
Projected benefit obligation at end of year | 5,833 | 6,379 | 6,083 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 6,722 | 6,032 | |
Actual return on plan assets | (447) | 933 | |
Employer contributions | 770 | 0 | |
Benefits paid | (243) | (243) | |
Fair value of plan assets at end of year | 6,802 | 6,722 | 6,032 |
Funded status at end of year | 969 | 343 | |
AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS CONSIST OF: | |||
Noncurrent assets | 969 | 343 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | 0 | |
Amounts recognized in balance sheet, Total | 969 | 343 | |
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS CONSIST OF: | |||
Net loss | 3,311 | 2,997 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | $ 0 |
Amounts recognized in other comprehensive income before tax, Total | $ 3,311 | $ 2,997 |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts recorded in consolidated balance sheet as pension liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
EMPLOYEE BENEFIT PLANS | ||
SERP liability | $ (7,045) | $ (6,732) |
Funded status of Retirement Income Plan | 0 | 0 |
Pension liabilities | $ (7,045) | $ (6,732) |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of net periodic benefit cost (Details) - Retirement Income Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the period | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 251 | 266 | 274 |
Expected return on plan assets | (501) | (415) | (406) |
Amortization of net loss | 81 | 91 | 84 |
Net periodic benefit, Total | $ (169) | $ (58) | $ (48) |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax amounts recognized in other comprehensive income (Details) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | $ 395 | $ (243) | $ 474 |
Amortization of net loss | (81) | (91) | (84) |
Net transition obligation (asset) | 0 | 0 | 0 |
Amount recognized in accumulated other comprehensive income | $ 314 | $ (334) | $ 390 |
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 2019 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
EMPLOYEE BENEFIT PLANS | |
Amortization of net loss | $ 94 |
Prior service cost (credit) | 0 |
Net transition obligation (asset) | 0 |
Estimated net periodic cost | $ 94 |
EMPLOYEE BENEFIT PLANS - Projec
EMPLOYEE BENEFIT PLANS - Projected benefit obligation and net benefit cost (Details) - Retirement Income Plan | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROJECTED BENEFIT OBLIGATION: | |||
Discount rate | 4.65% | 4.05% | 4.50% |
Rate of compensation increase | |||
NET BENEFIT COST: | |||
Discount rate | 4.05% | 4.50% | 4.75% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted average asset allocation by asset category along with target allocation (Details) - Retirement Income Plan | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Target Allocation for 2019 | 100.00% | |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 3.00% | 2.90% |
Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 39.50% | 42.30% |
International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 19.00% | 20.70% |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 29.10% | 23.80% |
Investments measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 9.40% | 10.30% |
Minimum | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 0.00% | |
Minimum | Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 0.00% | |
Minimum | International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 0.00% | |
Minimum | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 15.00% | |
Minimum | Investments measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 0.00% | |
Maximum | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 3.00% | |
Maximum | Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 40.00% | |
Maximum | International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 30.00% | |
Maximum | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 100.00% | |
Maximum | Investments measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 | 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, 2018 | Dec. 31, 2017 | |
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at Net Asset Value | $ 638 | $ 691 | |
Investments at Fair Value | 6,802 | 6,722 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [1] | 202 | 192 |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [1] | 202 | 192 |
Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [1] | 0 | 0 |
Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [2] | 1,979 | 1,601 |
Fixed Income Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [2] | 0 | 0 |
Fixed Income Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [2] | 1,979 | 1,601 |
Domestic Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [3] | 2,693 | 2,844 |
Domestic Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [3] | 993 | 1,047 |
Domestic Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [3] | 1,700 | 1,797 |
International Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [4] | 1,290 | 1,394 |
International Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [4] | 0 | 0 |
International Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [4] | 1,290 | 1,394 |
Investment | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 6,164 | 6,031 | |
Investment | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 1,195 | 1,239 | |
Investment | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | $ 4,969 | $ 4,792 | |
[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. |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimates that future benefits payable for Retirement Income Plan (Details) - Retirement Income Plan $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 301 |
2,020 | 294 |
2,021 | 298 |
2,022 | 295 |
2,023 | 309 |
2024-2028 | $ 1,704 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Non-vested shares | 1,040,800 | 1,200,900 | |
Granted | 193,500 | 202,400 | |
Vested | (283,790) | (344,250) | |
Forfeited | (2,800) | (18,250) | |
Non-vested shares | 947,710 | 1,040,800 | 1,200,900 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares | $ 7.76 | $ 6.58 | |
Granted | 13.97 | 13.39 | $ 5.77 |
Vested | 6.45 | 6.92 | |
Forfeited | 8.54 | 8.47 | |
Non-vested shares | $ 9.41 | $ 7.76 | $ 6.58 |
EMPLOYEE BENEFIT PLANS (Detail
EMPLOYEE BENEFIT PLANS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation above (below) fair value of the plan assets | $ 0 | $ 0 | |
Executive officer death | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Tax free gains from executive officer death | $ 751,000 | ||
Proceeds from death insurance | 556,000 | ||
Amount of Company-owned life insurance contract | 1,900,000 | ||
Value of cash surrender value | 1,400,000 | ||
Executive officer death | Key-man life insurance policy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation above (below) fair value of the plan assets | 195,000 | ||
Supplemental Executive Retirement Plan (SERP) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Variable life insurance policies investment amount | 5,900,000 | 6,600,000 | |
Fair value of plan assets | 5,518,000 | 6,031,000 | |
Trading (losses) gains related to the SERP assets | (544,000) | 470,000 | 106,000 |
Retirement Income Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6,802,000 | 6,722,000 | 6,032,000 |
Benefit obligation above (below) fair value of the plan assets | 969,000 | 343,000 | |
Employer contributions | 770,000 | 0 | |
Accumulated other comprehensive Income (loss), before tax | $ 314,000 | $ (334,000) | $ 390,000 |
Assumption for expected long-term return | 7.00% | 7.00% | 7.00% |
EMPLOYEE BENEFIT PLANS (Detai_2
EMPLOYEE BENEFIT PLANS (Detail Textuals 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum percentage of annual contribution per employee | 25.00% | ||
Percentage of employer matching contribution | 50.00% | ||
Threshold limit percentage of employee compensation | 6.00% | ||
Maximum period of vesting in contribution of employees | 3 years | ||
Employer matching contribution | $ 319,000 | $ 317,000 | $ 270,000 |
Percentage of matching contributions | 100.00% | ||
Stock Incentive Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of common stock authorized to issue stock awards and options | 3,000,000 | ||
Period of stock options and restricted stock issued | 10 years | ||
Number of shares available for grants | 1,871,700 | ||
Pre-tax stock-based employee compensation expense | $ 2,089,000 | 2,682,000 | 2,624,000 |
After tax stock-based employee compensation expense | $ 1,629,000 | $ 1,729,000 | $ 1,692,000 |
EMPLOYEE BENEFIT PLANS (Detai_3
EMPLOYEE BENEFIT PLANS (Detail Textuals 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits for compensation expense for restricted stock | $ 160,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum threshold limit percentage of incentive stock option 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 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation award, vesting percentage | 20.00% | ||
Stock based compensation award, vesting period from date of grant | 6 years | ||
Weighted average grant date fair value (in dollars per share) | $ 13.97 | $ 13.39 | $ 5.77 |
Total fair value of shares vested | $ 4,289,000 | $ 4,432,000 | $ 2,686,000 |
Tax benefits for compensation expense for restricted stock | 645,000 | $ 718,000 | |
Unrecognized compensation cost related to non-vested restricted shares | $ 7,073,000 | ||
Unrecognized compensation cost related to non-vested restricted shares recognized period | 3 years 2 months 12 days |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Company's voting power held by a group | one vote | ||
R Randall Rollins And Gary W Rollins | |||
Related Party Transaction [Line Items] | |||
Company's voting power held by a group | excess of fifty percent | ||
RPC | Transition Support Services Agreement | |||
Related Party Transaction [Line Items] | |||
Aggregate service charges paid | $ 873,000 | $ 849,000 | $ 739,000 |
Receivable (payable) due from (to) related party | $ (28,000) | (47,000) | |
255 RC, LLC | RPC | |||
Related Party Transaction [Line Items] | |||
Joint venture ownership interest percentage | 50.00% | ||
Operating lease agreement term | 5 years | ||
Investment in joint venture | $ 2,554,000 | ||
Rent and allocable fixed cost for corporate aircraft | $ 159,000 | $ 157,000 | $ 157,000 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 0 | 0 | 0 |
Net (Write-Offs)/ Recoveries | 0 | 0 | 0 |
Balance at End of Period | 25 | 25 | 25 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 5,447 | 4,525 | 4,694 |
Charged to Costs and Expenses | 0 | 922 | 0 |
Net (Write-Offs)/ Recoveries | (2,653) | 0 | (169) |
Balance at End of Period | $ 2,794 | $ 5,447 | $ 4,525 |