Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'DOUGLAS DYNAMICS, INC | ' |
Entity Central Index Key | '0001287213 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 22,272,153 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $10,548 | $19,864 |
Accounts receivable, net | 13,490 | 42,343 |
Inventories | 46,879 | 27,977 |
Refundable income taxes paid | 3,285 | 2,648 |
Deferred income taxes | 4,197 | 4,223 |
Prepaid and other current assets | 1,448 | 1,317 |
Total current assets | 79,847 | 98,372 |
Property, plant, and equipment, net | 25,332 | 24,866 |
Assets held for sale | 1,085 | 1,085 |
Goodwill | 113,132 | 113,132 |
Other intangible assets, net | 121,967 | 123,422 |
Deferred financing costs, net | 2,071 | 2,216 |
Other long-term assets | 1,796 | 1,246 |
Total assets | 345,230 | 364,339 |
Current liabilities: | ' | ' |
Accounts payable | 4,948 | 7,709 |
Accrued expenses and other current liabilities | 12,205 | 14,418 |
Short term borrowings | ' | 13,000 |
Current portion of long-term debt | 971 | 971 |
Total current liabilities | 18,124 | 36,098 |
Retiree health benefit obligation | 4,729 | 4,654 |
Pension obligation | 6,591 | 7,077 |
Deferred income taxes | 46,322 | 45,046 |
Deferred compensation | 588 | 658 |
Long-term debt, less current portion | 109,780 | 110,023 |
Other long-term liabilities | 6,127 | 5,462 |
Stockholders' equity: | ' | ' |
Common Stock, par value $0.01, 200,000,000 shares authorized, 22,223,454 and 22,130,996 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 223 | 222 |
Additional paid-in capital | 136,450 | 135,498 |
Retained earnings | 17,145 | 20,463 |
Accumulated other comprehensive loss, net of tax | -849 | -862 |
Total stockholders' equity | 152,969 | 155,321 |
Total liabilities and stockholders' equity | $345,230 | $364,339 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheets | ' | ' |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 22,260,082 | 22,223,454 |
Common Stock, shares outstanding | 22,260,082 | 22,223,454 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Operations and Comprehensive Income | ' | ' |
Net sales | $36,396 | $14,141 |
Cost of sales | 22,271 | 9,815 |
Gross profit | 14,125 | 4,326 |
Selling, general, and administrative expense | 8,337 | 5,910 |
Intangibles amortization | 1,455 | 1,298 |
Impairment of assets held for sale | ' | 647 |
Income from operations | 4,333 | -3,529 |
Interest expense, net | -1,972 | -1,983 |
Other expense, net | -18 | -31 |
Income before taxes | 2,343 | -5,543 |
Income tax expense | 768 | -2,139 |
Net income | 1,575 | -3,404 |
Less net income attributable to participating securities | 23 | -43 |
Net income attributable to common shareholders | 1,552 | -3,361 |
Weighted average number of common shares outstanding: | ' | ' |
Basic (in shares) | 22,103,167 | 21,971,055 |
Diluted (in shares) | 22,122,669 | 21,971,055 |
Earnings per common share: | ' | ' |
Basic (in dollars per share) | $0.07 | ($0.15) |
Diluted (in dollars per share) | $0.07 | ($0.15) |
Cash dividends declared per share (in dollars per share) | $0.22 | $0.21 |
Cash dividends paid per share (in dollars per share) | $0.22 | $0.21 |
Comprehensive income | $1,588 | ($3,365) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $1,575 | ($3,404) |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 2,279 | 2,015 |
Amortization of deferred financing costs and debt discount | 190 | 189 |
Loss recognized on impairment of assets held for sale | ' | 647 |
Stock-based compensation | 1,022 | 935 |
Provision for losses on accounts receivable | 76 | 113 |
Deferred income taxes | 1,302 | 1,222 |
Earnout liability | 136 | ' |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | 28,777 | 14,013 |
Inventories | -18,902 | -14,807 |
Prepaid and other assets and prepaid income taxes | -1,318 | -4,128 |
Accounts payable | -2,761 | -2,849 |
Accrued expenses and other current liabilities | -1,931 | -1,584 |
Deferred compensation | -70 | -157 |
Benefit obligations and other long-term liabilities | -151 | 647 |
Net cash used in operating activities | 10,224 | -7,148 |
Investing activities | ' | ' |
Capital expenditures | -1,290 | -843 |
Net cash used in investing activities | -1,290 | -843 |
Financing activities | ' | ' |
Shares withheld on restricted stock vesting paid for employees' taxes | -69 | -137 |
Dividends paid | -4,893 | -4,647 |
Revolver borrowings | -13,000 | ' |
Repayment of long-term debt | -288 | -288 |
Net cash provided by (used in) financing activities | -18,250 | -5,072 |
Change in cash and cash equivalents | -9,316 | -13,063 |
Cash and cash equivalents at beginning of period | 19,864 | 24,136 |
Cash and cash equivalents at end of period | $10,548 | $11,073 |
Basis_of_presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of presentation | ' |
Basis of presentation | ' |
1.Basis of presentation | |
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for fiscal year end financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the financial statements and related footnotes included in our 2013 Form 10-K (Commission File No. 001-34728) filed with the Securities and Exchange Commission on March 11, 2014. | |
We operate as a single business unit. | |
Interim Consolidated Financial Information | |
The accompanying consolidated balance sheet as of March 31, 2014 and the consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2014 and 2013 and cash flows for the three months ended March 31, 2014 and 2013 have been prepared by the Company and have not been audited. | |
The Company is a counterparty to an interest-rate swap agreement to hedge against the potential impact on earnings from increases in market interest rates. Under the interest rate swap agreement, effective as of July 18, 2011 the Company either receives or makes payments on a monthly basis based on the differential between 6.335% and LIBOR plus 4.25% (with a LIBOR floor of 1.5%). The negative fair value of the interest rate swap, net of tax, of ($141) at March 31, 2014 is included in “Accumulated other comprehensive loss” on the balance sheet. This fair value was determined using Level 2 inputs as defined in Accounting Standards Codification Topic (“ASC”) 820. The interest rate swap contract on $50,000 notional amount of the term loan expires in December 2014. Additionally, other comprehensive income (loss) includes the net income (loss) of the Company plus the Company’s adjustments for its defined benefit retirement plans based on the measurement date as of the Company’s year-end. For further disclosure, refer to Note 14 to the Unaudited Consolidated Financial Statements. | |
The Company’s business is seasonal and consequently its results of operations and financial condition vary from quarter-to-quarter. Because of this seasonality, the Company’s results of operations for any quarter may not be indicative of results of operations that may be achieved for a subsequent quarter or the full year, and may not be similar to results of operations experienced in prior years. The Company attempts to manage the seasonal impact of snowfall on its revenues in part through its pre-season sales program. This pre-season sales program encourages the Company’s distributors to re-stock their inventory during the second and third quarters in anticipation of the peak fourth quarter retail sales period by offering favorable pre-season pricing and payment deferral until the fourth quarter. Thus, the Company tends to generate its greatest volume of sales during the second and third quarters. By contrast, its revenue and operating results tend to be lowest during the first quarter, as management believes the Company’s end-users prefer to wait until the beginning of a snow season to purchase new equipment and as the Company’s distributors sell off inventory and wait for the pre-season sales incentive period to re-stock inventory. Fourth quarter sales vary from year-to-year as they are primarily driven by the level, timing and location of snowfall during the quarter. This is because most of the Company’s fourth quarter sales and shipments consist of re-orders by distributors seeking to restock inventory to meet immediate customer needs caused by snowfall during the winter months. | |
Fair_Value
Fair Value | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Fair Value | ' | ||||||
Fair Value | ' | ||||||
2.Fair Value | |||||||
Fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Fair value measurements are categorized into one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). | |||||||
The following table presents financial assets and liabilities measured at fair value on a recurring basis and discloses the fair value of long-term debt: | |||||||
Fair Value at | Fair Value at | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Assets: | |||||||
Other long-term assets (a) | $ | 1,670 | $ | 1,127 | |||
Total Assets | $ | 1,670 | $ | 1,127 | |||
Liabilities: | |||||||
Long term debt (b) | $ | 111,238 | $ | 110,439 | |||
Other long-term liabilities- | |||||||
Earnout - TrynEx (c) | 3,587 | 3,587 | |||||
Interest rate swaps (d) | 212 | 282 | |||||
Total Liabilities | $ | 115,037 | $ | 114,308 | |||
(a) | Included in other assets is the cash surrender value of insurance policies on various individuals that are associated with the Company. The carrying amounts of these insurance policies approximates their fair value. | ||||||
(b) | The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements, which is a Level 2 input for all periods presented. Meanwhile, long-term debt is recorded at carrying amount, net of discount, as disclosed on the face of the balance sheet. | ||||||
(c) | Included in other long term liabilities is an obligation for a portion of the potential earn out incurred in conjunction with the acquisition of substantially all of the assets of Trynex, Inc. (“Trynex”). The carrying amount of the earn out approximates its fair value. Fair value is based upon Level 3 inputs of a monte carlo simulation analysis using key inputs of forecasted future sales and financial performance as well as a growth rate reduced by the market required rate of return. See reconciliation of liability included below: | ||||||
Three months ended | |||||||
March 31, | |||||||
2014 | |||||||
Beginning Balance | $ | 3,587 | |||||
Additions | — | ||||||
Adjustments to fair value | — | ||||||
Ending balance | $ | 3,587 | |||||
Valuation models are calibrated to initial trade price. Subsequent valuations are based on observable inputs to the valuation model (e.g. interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Thus, inputs used to determine fair value of the interest rate swap are Level 2 inputs. | |||||||
Inventories
Inventories | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Inventories | ' | ||||||
Inventories | ' | ||||||
3.Inventories | |||||||
Inventories consist of the following: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Finished goods and work-in-process | $ | 44,684 | $ | 26,175 | |||
Raw material and supplies | 2,195 | 1,802 | |||||
$ | 46,879 | $ | 27,977 | ||||
Property_plant_and_equipment
Property, plant and equipment | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Property, plant and equipment | ' | ||||||
Property, plant and equipment | ' | ||||||
4.Property, plant and equipment | |||||||
Property, plant and equipment are summarized as follows: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Land | $ | 1,160 | $ | 1,160 | |||
Land improvements | 1,849 | 1,849 | |||||
Buildings | 16,743 | 16,743 | |||||
Machinery and equipment | 26,212 | 25,756 | |||||
Furniture and fixtures | 9,013 | 8,772 | |||||
Mobile equipment and other | 1,222 | 1,267 | |||||
Construction-in-process | 1,580 | 1,113 | |||||
Total property, plant and equipment | 57,779 | 56,660 | |||||
Less accumulated depreciation | -32,447 | -31,794 | |||||
Net property, plant and equipment | $ | 25,332 | $ | 24,866 | |||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Long-Term Debt | ' | ||||||
Long-Term Debt | ' | ||||||
5.Long-Term Debt | |||||||
Long-term debt is summarized below: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Term Loan, net of debt discount of $721 and $766 at March 31, 2014 and December 31, 2013, respectively | $ | 110,751 | $ | 110,994 | |||
Less current maturities | 971 | 971 | |||||
$ | 109,780 | $ | 110,023 | ||||
The Company’s senior credit facilities consist of a $125,000 term loan facility and an $80,000 revolving credit facility with a group of banks. The agreement for the term loan (the “Term Loan Credit Agreement”) provides for a senior secured term loan facility in the aggregate principal amount of $125,000 and generally bears interest at (at the Company’s election) either (i) 3.25% per annum plus the greatest of (a) the Prime Rate (as defined in the Term Loan Credit Agreement) in effect on such day, (b) the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers plus 0.50% and (c) 1.00% plus the greater of (1) the London Interbank Offered Rate for a one month interest period multiplied by the Statutory Reserve Rate (as defined in the Term Loan Credit Agreement) and (2) 1.50% or (ii) 4.25% per annum plus the greater of (a) the London Interbank Offered Rate for the applicable interest period multiplied by the Statutory Reserve Rate and (b) 1.50%. The revolving credit facility provides that the Company has the option to select whether borrowings will bear interest at either (i) 1.75% per annum plus the London Interbank Offered Rate for the applicable interest period multiplied by the Statutory Reserve Rate or (ii) 1.25% per annum plus the greatest of (a) the Prime Rate in effect on such day, (b) the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers plus 0.50% and (c) the London Interbank Offered Rate for a one month interest period multiplied by the Statutory Reserve Rate plus 1%. The maturity date for the Company’s revolving credit facility is April 17, 2017, and the Company’s term loan amortizes in nominal amounts quarterly with the balance payable on April 18, 2018. | |||||||
The term loan was issued at a $1,250 discount which is being amortized over the term of the term loan. | |||||||
At March 31, 2014, the Company had no borrowings on the revolving credit facility and remaining borrowing availability of $38,923. | |||||||
The Company’s senior credit facilities include certain negative and operating covenants, including restrictions on its ability to pay dividends, and other customary covenants, representations and warranties and events of default. The senior credit facilities entered into and recorded by the Company’s subsidiaries significantly restrict its subsidiaries from paying dividends and otherwise transferring assets to Douglas Dynamics, Inc. The terms of the Company’s revolving credit facility specifically restrict subsidiaries from paying dividends if a minimum availability under the revolving credit facility is not maintained, and both senior credit facilities restrict subsidiaries from paying dividends above certain levels or at all if an event of default has occurred. These restrictions would affect the Company indirectly since the Company relies principally on distributions from its subsidiaries to have funds available for the payment of dividends. In addition, the Company’s revolving credit facility includes a requirement that, subject to certain exceptions, capital expenditures may not exceed $10,000 in any calendar year and, if certain minimum availability under the revolving credit facility is not maintained, that the Company comply with a monthly minimum fixed charge coverage ratio test of 1.0:1.0. Compliance with the fixed charge coverage ratio test is subject to certain cure rights under the Company’s revolving credit facility. At March 31, 2014, the Company was in compliance with the respective covenants. The credit facilities are collateralized by substantially all assets of the Company. | |||||||
In accordance with the senior credit facilities, the Company is required to make additional principal prepayments over the above scheduled payments under certain conditions. This includes, in the case of the term loan facility, 100% of the net cash proceeds of certain asset sales, certain insurance or condemnation events, certain debt issuances, and, within 150 days of the end of the fiscal year, 50% of excess cash flow, as defined, including a deduction for certain distributions (which percentage is reduced to 25% or 0% upon the achievement of certain leverage ratio thresholds), for any fiscal year. Excess cash flow is defined in the senior credit facilities as consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) plus a working capital adjustment less the sum of repayments of debt and capital expenditures subject to certain adjustments, interest and taxes paid in cash, management fees and certain restricted payments (including dividends or distributions). Working capital adjustment is defined in the senior credit facilities as the change in working capital, defined as current assets excluding cash and cash equivalents less current liabilities excluding current portion of long term debt. As of March 31, 2014, the Company was not required to make an excess cash flow payment. | |||||||
Each of the senior secured facilities includes a hedge provision, which required the Company to enter into an interest rate hedge commencing 90 days after the closing date. The hedging provision requires the Company to hedge the interest rate on at least 25% of the aggregate outstanding principal amount of the term loans. The purpose of the interest rate swap is to reduce the Company’s exposure to interest rate volatility. Effective June 20, 2011, the Company entered into an interest rate swap agreement with a notional amount of $50,000. The interest rate swap negative fair value at March 31, 2014 of $212 is included in accrued expenses and other current liabilities on the Consolidated Balance Sheet. The Company has counterparty credit risk resulting from the interest rate swap, which it monitors on an on-going basis. This risk lies with one global financial institution. Under the interest rate swap agreement, effective as of July 18, 2011, the Company either receives or makes payments on a monthly basis based on the differential between 6.335% and LIBOR plus 4.25% (with a LIBOR floor of 1.5%). The interest rate swap contract on the term loan expires in December 2014. | |||||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||
6.Accrued Expenses and Other Current Liabilities | |||||||
Accrued expenses and other liabilities are summarized as follows: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Payroll and related costs | $ | 3,193 | $ | 2,857 | |||
Employee benefits | 2,410 | 4,522 | |||||
Accrued warranty | 2,930 | 3,808 | |||||
Other | 3,672 | 3,231 | |||||
$ | 12,205 | $ | 14,418 | ||||
Warranty_Liability
Warranty Liability | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Warranty Liability | ' | |||||||
Warranty Liability | ' | |||||||
7.Warranty Liability | ||||||||
The Company accrues for estimated warranty costs as sales are recognized and periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. The Company’s warranties generally provide, with respect to its snow and ice control equipment, that all material and workmanship will be free from defect for a period of two years after the date of purchase by the end-user, and with respect to its parts and accessories purchased separately, that such parts and accessories will be free from defect for a period of one year after the date of purchase by the end-user. Certain snowplows only provide for a one year warranty. The Company determines the amount of the estimated warranty costs (and its corresponding warranty reserve) based on the Company’s prior five years of warranty history utilizing a formula driven by historical warranty expense and applying management’s judgment. The Company adjusts its historical warranty costs to take into account unique factors such as the introduction of new products into the marketplace that do not provide a historical warranty record to assess. The warranty reserve is included in Accrued Expenses and Other Current Liabilities in the accompanying consolidated balance sheets. | ||||||||
The following is a rollforward of the Company’s warranty liability: | ||||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Balance at the beginning of the period | $ | 3,808 | $ | 3,628 | ||||
Warranty provision | 459 | 125 | ||||||
Claims paid/settlements | -1,337 | -894 | ||||||
Balance at the end of the period | $ | 2,930 | $ | 2,859 | ||||
Employee_Retirement_Plans
Employee Retirement Plans | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Employee Retirement Plans | ' | |||||||
Employee Retirement Plans | ' | |||||||
8.Employee Retirement Plans | ||||||||
The components of net periodic pension cost consist of the following: | ||||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Component of net periodic pension cost: | ||||||||
Service cost | $ | 54 | $ | 62 | ||||
Interest cost | 374 | 362 | ||||||
Expected return on plan assets | -408 | -352 | ||||||
Amortization of net loss | 51 | 301 | ||||||
Net periodic pension cost | $ | 71 | $ | 373 | ||||
The Company estimates its total required minimum contributions to its pension plans in 2014 will be $1,409. Through March 31, 2014, the Company has made $506 of cash contributions to the pension plans versus $95 through the same period in 2013. | ||||||||
Components of net periodic other postretirement benefit cost consist of the following: | ||||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Component of periodic other postretirement benefit cost: | ||||||||
Service cost | $ | 40 | $ | 63 | ||||
Interest cost | 53 | 61 | ||||||
Amortization of net gain | -100 | -43 | ||||||
Net periodic other postretirement benefit cost (income) | $ | -7 | $ | 81 | ||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings per Share | ' | |||||||
Earnings per Share | ' | |||||||
9.Earnings per Share | ||||||||
Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the weighted average number of common shares and common stock equivalents related to the assumed exercise of stock options, using the two-class method. Stock options for which the exercise price exceeds the average fair value have an anti-dilutive effect on earnings per share and are excluded from the calculation. There were no shares excluded from diluted earnings per share for the three months ended March 31, 2014 as the Company generated earnings. Meanwhile, there were 54,866 shares excluded from diluted earnings per share for the three months ended March 31, 2013 as the shares would be anti-dilutive for this period as the Company incurred a net loss. | ||||||||
As restricted shares and restricted stock units both participate in dividends, in accordance with ASC 260, the Company has calculated earnings per share pursuant to the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. | ||||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Basic earnings (loss) per common share | ||||||||
Net income (loss) | $ | 1,575 | $ | -3,404 | ||||
Less income (loss) allocated to participating securities | 23 | -43 | ||||||
Net income (loss) allocated to common shareholders | $ | 1,552 | $ | -3,361 | ||||
Weighted average common shares outstanding | 22,103,167 | 21,971,055 | ||||||
$ | 0.07 | $ | -0.15 | |||||
Earnings (loss) per common share assuming dilution | ||||||||
Net income (loss) | $ | 1,575 | $ | -3,404 | ||||
Less income (loss) allocated to participating securities | 23 | -43 | ||||||
Net income (loss) allocated to common shareholders | $ | 1,552 | $ | -3,361 | ||||
Weighted average common shares outstanding | 22,103,167 | 21,971,055 | ||||||
Incremental shares applicable to stock based compensation | 19,502 | - | ||||||
Weighted average common shares assuming dilution | 22,122,669 | 21,971,055 | ||||||
$ | 0.07 | $ | -0.15 | |||||
Employee_Stock_Plans
Employee Stock Plans | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Employee Stock Plans | ' | ||||||||
Employee Stock Plans | ' | ||||||||
10.Employee Stock Plans | |||||||||
Amended and Restated 2004 Stock Incentive Plan | |||||||||
As of March 31, 2014, 37,240 shares of common stock are reserved for issuance upon the exercise of outstanding options under the Company’s Amended and Restated 2004 Stock Incentive Plan (the “A&R 2004 Plan”). All outstanding options are fully vested. All options expire 10 years from the date of grant. No further awards are permitted to be issued under the A&R 2004 Plan. | |||||||||
There were no stock options exercised with respect to the Company’s stock under the A&R 2004 Plan for the three months ended March 31, 2014. | |||||||||
2010 Stock Incentive Plan | |||||||||
In May 2010, the Company’s Board of Directors and stockholders adopted the 2010 Stock Incentive Plan (the “2010 Plan”). The 2010 Plan provides for the issuance of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock awards and restricted stock units (“RSUs”), any of which may be performance-based, and for incentive bonuses, which may be paid in cash or stock or a combination of both, to eligible employees, officers, non-employee directors and other service providers to the Company and its subsidiaries. A maximum of 2,130,000 shares of common stock may be issued pursuant to all awards under the 2010 Plan. | |||||||||
Restricted Stock Share Awards | |||||||||
A summary of restricted stock activity for the three months ended March 31, 2014 is as follows: | |||||||||
Weighted | |||||||||
Weighted | Average | ||||||||
Average | Remaining | ||||||||
Grant Date | Contractual | ||||||||
Shares | Fair value | Term | |||||||
Unvested at December 31, 2013 | 169,903 | $ | 13.03 | 1.34 | years | ||||
Granted | - | - | - | ||||||
Vested | 43,263 | $ | 14.78 | ||||||
Cancelled and forfeited | — | — | |||||||
Unvested at March 31, 2014 | 126,640 | $ | 12.44 | 1.20 | years | ||||
Expected to vest in the future at March 31, 2014 | 122,081 | $ | 12.44 | 1.20 | years | ||||
The fair value of the Company’s restricted stock awards is the closing stock price on the date of grant. The Company recognized $215 of compensation expense related to restricted stock awards granted for the three months ended March 31, 2014. The unrecognized compensation expense calculated under the fair value method for shares expected to vest as of March 31, 2014 was approximately $1,004 and is expected to be recognized over a weighted average period of 1.20 years. | |||||||||
Performance Share Unit Awards | |||||||||
The Company granted performance share units as performance based awards under the 2010 Plan in the first quarter of 2014 that are subject to performance conditions. Upon meeting the prescribed performance conditions, in the first quarter of the year subsequent to grant, employees will be issued RSUs a portion of which will be subject to vesting over the two years following the end of the performance period. In accordance with ASC 718, such awards are being expensed over the vesting period from the date of grant through the requisite service period, based upon the most probable outcome. The fair value per share of the awards is the closing stock price on the date of grant, which was $16.30. The Company recognized $49 of compensation expense related to the awards in the three months ended March 31, 2014. The unrecognized compensation expense calculated under the fair value method for shares that were, as of March 31, 2014, expected to be earned through the requisite service period was approximately $723 and is expected to be recognized through 2017. | |||||||||
Restricted Stock Unit Awards | |||||||||
RSUs are granted to both non-employee directors and management. RSUs carry dividend equivalent rights but do not carry voting rights. Each RSU represents the right to receive one share of the Company’s common stock and is subject to time based vesting restrictions. Participants are not required to pay any consideration to the Company at either the time of grant of a RSU or upon vesting. | |||||||||
RSUs issued to management include a retirement provision under which members of management who either (1) are age 65 or older or (2) have at least ten years of service and are at least age 55 will continue to vest in unvested RSUs upon retirement. As the retirement provision does not qualify as a substantive service condition, the Company incurred $278 and $261 in additional expense in the first quarter of 2014 and 2013, respectively, for employees who meet the thresholds of the retirement provision. In 2013, the Company’s nominating and governance committee approved a retirement provision for the RSUs issued to non-employee directors that accelerates the vesting of such RSUs upon retirement. Such awards are fully expensed immediately upon grant in accordance with ASC 718, as the retirement provision eliminates substantive service conditions associated with the awards. | |||||||||
A summary of RSU activity for the three months ended March 31, 2014 is as follows: | |||||||||
Weighted | |||||||||
Weighted | Average | ||||||||
Average | Remaining | ||||||||
Grant Date | Contractual | ||||||||
Shares | Fair value | Term | |||||||
Unvested at December 31, 2013 | 43,348 | $ | 14.46 | 1.55 | years | ||||
Granted | 140,291 | $ | 15.29 | 1.08 | years | ||||
Vested | -100,620 | $ | 15.14 | ||||||
Cancelled and forfeited | — | — | |||||||
Unvested at March 31, 2014 | 83,019 | $ | 15.04 | 1.82 | years | ||||
Expected to vest in the future at March 31, 2014 | 80,030 | $ | 15.04 | 1.82 | years | ||||
The Company recognized $758 of compensation expense related to the RSU awards in the three months ended March 31, 2014. The unrecognized compensation expense, net of expected forfeitures, calculated under the fair value method for shares that were, as of March 31, 2014, expected to be earned through the requisite service period was approximately $1,106 and is expected to be recognized through 2017. | |||||||||
Vested director RSUs are ‘‘settled’’ by the delivery to the participant or a designated brokerage firm of one share of common stock per vested RSU as soon as reasonably practicable following a termination of service of the participant that constitutes a separation from service, and in all events no later than the end of the calendar year in which such termination of service occurs or, if later, two and one-half months after such termination of service. Vested management RSUs are “settled” by the delivery to the participant or a designated brokerage firm of one share of common stock per vested RSU as soon as reasonably practicable following vesting. | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
11.Commitments and Contingencies | |
In the ordinary course of business, the Company is engaged in various litigation including product liability and intellectual property disputes. However, the Company does not believe that any pending litigation will have a material adverse effect on its consolidated financial position. In addition, the Company is not currently a party to any environmental-related claims or legal matters. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
12.Income Taxes | |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The largest item affecting deferred taxes is the difference between book and tax amortization of goodwill and other intangibles amortization. The Company’s effective tax rate was 32.8% and 38.6% for the three months ended March 31, 2014 and 2013, respectively. The effective tax rate for the three months ended March 31, 2014 was lower than the corresponding period in 2013 due to a beneficial state tax rate change in 2014 and the Company recognizing income in the current period as compared to a loss in the prior year’s corresponding period. | |
Impairment_of_Assets_Held_For_
Impairment of Assets Held For Sale | 3 Months Ended |
Mar. 31, 2014 | |
Impairment of Assets Held For Sale | ' |
Impairment of Assets Held For Sale | ' |
13.Impairment of Assets Held For Sale | |
During the first quarter of 2013, the Company lowered the asking price for its assets held for sale. The Company recorded assets held for sale on its balance sheet in conjunction with the closure of the Johnson City, Tennessee location in 2010. The land and building have been held for sale since the closure. In an effort to stimulate sales activity, the Company lowered the listed sale price in the first quarter of 2013 which caused the Company to reassess the fair value of the assets held for sale. The Company valued the fair value of the assets held for sale based upon Level 2 market price inputs for similar assets. The Company used comparable properties sold and held for sale in the Johnson City, TN industrial real estate market to determine an appropriate fair value. Consequently, the Company incurred a $647 loss recognized on the impairment of assets held for sale and is included in “Impairment of assets held for sale” on the Consolidated Statements of Operations and Comprehensive Income in the three months ended March 31, 2013. On February 26, 2014, the Company entered into an agreement for the sale of the land and building at an amount approximating the carrying amount. The Company closed on the sale of the Johnson City assets on April 30, 2014 with a sales price of $1,100 and closing costs of $83. | |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss by Component | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||
14.Changes in Accumulated Other Comprehensive Loss by Component | |||||||||||||
Changes to accumulated other comprehensive loss by component for the three months ended March 31, 2014 are as follows: | |||||||||||||
Unrealized | |||||||||||||
Net Loss | |||||||||||||
on Interest | Retiree Health | ||||||||||||
Rate | Benefit | Pension | |||||||||||
Swap | Obligation | Obligation | Total | ||||||||||
Balance at December 31, 2013 | $ | -184 | $ | 2,234 | $ | -2,912 | $ | -862 | |||||
Other comprehensive loss before reclassifications | -2 | — | — | -2 | |||||||||
Amounts reclassified from accumulated other comprehensive loss: (1) | 45 | -62 | 32 | 15 | |||||||||
Balance at March 31, 2014 | $ | -141 | $ | 2,172 | $ | -2,880 | $ | -849 | |||||
(1) Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||
Amortization of Other Postretirement Benefit items: | |||||||||||||
Actuarial gains (a) | -100 | ||||||||||||
Tax expense | 38 | ||||||||||||
Reclassification net of tax | $ | -62 | |||||||||||
Amortization of pension items: | |||||||||||||
Actuarial losses (a) | 51 | ||||||||||||
Tax benefit | -19 | ||||||||||||
Reclassification net of tax | $ | 32 | |||||||||||
Realized losses on interest rate swaps reclassified to interest expense | 73 | ||||||||||||
Tax benefit | -28 | ||||||||||||
Reclassification net of tax | $ | 45 | |||||||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Fair Value | ' | ||||||
Schedule of financial assets and liabilities measured at fair value on a recurring basis and disclosure of the fair value of long-term debt | ' | ||||||
Fair Value at | Fair Value at | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Assets: | |||||||
Other long-term assets (a) | $ | 1,670 | $ | 1,127 | |||
Total Assets | $ | 1,670 | $ | 1,127 | |||
Liabilities: | |||||||
Long term debt (b) | $ | 111,238 | $ | 110,439 | |||
Other long-term liabilities- | |||||||
Earnout - TrynEx (c) | 3,587 | 3,587 | |||||
Interest rate swaps (d) | 212 | 282 | |||||
Total Liabilities | $ | 115,037 | $ | 114,308 | |||
(a) | Included in other assets is the cash surrender value of insurance policies on various individuals that are associated with the Company. The carrying amounts of these insurance policies approximates their fair value. | ||||||
(b) | The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements, which is a Level 2 input for all periods presented. Meanwhile, long-term debt is recorded at carrying amount, net of discount, as disclosed on the face of the balance sheet. | ||||||
(c) | Included in other long term liabilities is an obligation for a portion of the potential earn out incurred in conjunction with the acquisition of substantially all of the assets of Trynex, Inc. (“Trynex”). The carrying amount of the earn out approximates its fair value. Fair value is based upon Level 3 inputs of a monte carlo simulation analysis using key inputs of forecasted future sales and financial performance as well as a growth rate reduced by the market required rate of return. See reconciliation of liability included below: | ||||||
Three months ended | |||||||
March 31, | |||||||
2014 | |||||||
Beginning Balance | $ | 3,587 | |||||
Additions | — | ||||||
Adjustments to fair value | — | ||||||
Ending balance | $ | 3,587 | |||||
(d) | Valuation models are calibrated to initial trade price. Subsequent valuations are based on observable inputs to the valuation model (e.g. interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads. Thus, inputs used to determine fair value of the interest rate swap are Level 2 inputs. | ||||||
Schedule of reconciliation of liability | ' | ||||||
March 31, | |||||||
2014 | |||||||
Beginning Balance | $ | 3,587 | |||||
Additions | — | ||||||
Adjustments to fair value | — | ||||||
Ending balance | $ | 3,587 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Inventories | ' | ||||||
Schedule of inventories | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Finished goods and work-in-process | $ | 44,684 | $ | 26,175 | |||
Raw material and supplies | 2,195 | 1,802 | |||||
$ | 46,879 | $ | 27,977 | ||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Property, plant and equipment | ' | ||||||
Summary of property, plant and equipment | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Land | $ | 1,160 | $ | 1,160 | |||
Land improvements | 1,849 | 1,849 | |||||
Buildings | 16,743 | 16,743 | |||||
Machinery and equipment | 26,212 | 25,756 | |||||
Furniture and fixtures | 9,013 | 8,772 | |||||
Mobile equipment and other | 1,222 | 1,267 | |||||
Construction-in-process | 1,580 | 1,113 | |||||
Total property, plant and equipment | 57,779 | 56,660 | |||||
Less accumulated depreciation | -32,447 | -31,794 | |||||
Net property, plant and equipment | $ | 25,332 | $ | 24,866 | |||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Long-Term Debt | ' | ||||||
Summary of long-term debt | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Term Loan, net of debt discount of $721 and $766 at March 31, 2014 and December 31, 2013, respectively | $ | 110,751 | $ | 110,994 | |||
Less current maturities | 971 | 971 | |||||
$ | 109,780 | $ | 110,023 | ||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||
Summary of accrued expenses and other current liabilities | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Payroll and related costs | $ | 3,193 | $ | 2,857 | |||
Employee benefits | 2,410 | 4,522 | |||||
Accrued warranty | 2,930 | 3,808 | |||||
Other | 3,672 | 3,231 | |||||
$ | 12,205 | $ | 14,418 | ||||
Warranty_Liability_Tables
Warranty Liability (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Warranty Liability | ' | |||||||
Schedule of rollforward of Company's warranty liability | ' | |||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Balance at the beginning of the period | $ | 3,808 | $ | 3,628 | ||||
Warranty provision | 459 | 125 | ||||||
Claims paid/settlements | -1,337 | -894 | ||||||
Balance at the end of the period | $ | 2,930 | $ | 2,859 | ||||
Employee_Retirement_Plans_Tabl
Employee Retirement Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Pension Plan, Defined Benefit [Member] | ' | |||||||
Employee retirement plans | ' | |||||||
Schedule of components of net periodic other postretirement benefit cost | ' | |||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Component of net periodic pension cost: | ||||||||
Service cost | $ | 54 | $ | 62 | ||||
Interest cost | 374 | 362 | ||||||
Expected return on plan assets | -408 | -352 | ||||||
Amortization of net loss | 51 | 301 | ||||||
Net periodic pension cost | $ | 71 | $ | 373 | ||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | |||||||
Employee retirement plans | ' | |||||||
Schedule of components of net periodic other postretirement benefit cost | ' | |||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Component of periodic other postretirement benefit cost: | ||||||||
Service cost | $ | 40 | $ | 63 | ||||
Interest cost | 53 | 61 | ||||||
Amortization of net gain | -100 | -43 | ||||||
Net periodic other postretirement benefit cost (income) | $ | -7 | $ | 81 | ||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings per Share | ' | |||||||
Schedule of computation of basic and diluted earnings per share | ' | |||||||
Three months ended | ||||||||
March 31, | March 31, | |||||||
2014 | 2013 | |||||||
Basic earnings (loss) per common share | ||||||||
Net income (loss) | $ | 1,575 | $ | -3,404 | ||||
Less income (loss) allocated to participating securities | 23 | -43 | ||||||
Net income (loss) allocated to common shareholders | $ | 1,552 | $ | -3,361 | ||||
Weighted average common shares outstanding | 22,103,167 | 21,971,055 | ||||||
$ | 0.07 | $ | -0.15 | |||||
Earnings (loss) per common share assuming dilution | ||||||||
Net income (loss) | $ | 1,575 | $ | -3,404 | ||||
Less income (loss) allocated to participating securities | 23 | -43 | ||||||
Net income (loss) allocated to common shareholders | $ | 1,552 | $ | -3,361 | ||||
Weighted average common shares outstanding | 22,103,167 | 21,971,055 | ||||||
Incremental shares applicable to stock based compensation | 19,502 | - | ||||||
Weighted average common shares assuming dilution | 22,122,669 | 21,971,055 | ||||||
$ | 0.07 | $ | -0.15 | |||||
Employee_Stock_Plans_Tables
Employee Stock Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Employee Stock Plans | ' | ||||||||
Summary of restricted stock activity | ' | ||||||||
Weighted | |||||||||
Weighted | Average | ||||||||
Average | Remaining | ||||||||
Grant Date | Contractual | ||||||||
Shares | Fair value | Term | |||||||
Unvested at December 31, 2013 | 169,903 | $ | 13.03 | 1.34 | years | ||||
Granted | - | - | - | ||||||
Vested | 43,263 | $ | 14.78 | ||||||
Cancelled and forfeited | — | — | |||||||
Unvested at March 31, 2014 | 126,640 | $ | 12.44 | 1.20 | years | ||||
Expected to vest in the future at March 31, 2014 | 122,081 | $ | 12.44 | 1.20 | years | ||||
Summary of RSU activity | ' | ||||||||
Weighted | |||||||||
Weighted | Average | ||||||||
Average | Remaining | ||||||||
Grant Date | Contractual | ||||||||
Shares | Fair value | Term | |||||||
Unvested at December 31, 2013 | 43,348 | $ | 14.46 | 1.55 | years | ||||
Granted | 140,291 | $ | 15.29 | 1.08 | years | ||||
Vested | -100,620 | $ | 15.14 | ||||||
Cancelled and forfeited | — | — | |||||||
Unvested at March 31, 2014 | 83,019 | $ | 15.04 | 1.82 | years | ||||
Expected to vest in the future at March 31, 2014 | 80,030 | $ | 15.04 | 1.82 | years | ||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||
Schedule of changes to accumulated other comprehensive loss by component | ' | ||||||||||||
Unrealized | |||||||||||||
Net Loss | |||||||||||||
on Interest | Retiree Health | ||||||||||||
Rate | Benefit | Pension | |||||||||||
Swap | Obligation | Obligation | Total | ||||||||||
Balance at December 31, 2013 | $ | -184 | $ | 2,234 | $ | -2,912 | $ | -862 | |||||
Other comprehensive loss before reclassifications | -2 | — | — | -2 | |||||||||
Amounts reclassified from accumulated other comprehensive loss: (1) | 45 | -62 | 32 | 15 | |||||||||
Balance at March 31, 2014 | $ | -141 | $ | 2,172 | $ | -2,880 | $ | -849 | |||||
(1) Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||
Amortization of Other Postretirement Benefit items: | |||||||||||||
Actuarial gains (a) | -100 | ||||||||||||
Tax expense | 38 | ||||||||||||
Reclassification net of tax | $ | -62 | |||||||||||
Amortization of pension items: | |||||||||||||
Actuarial losses (a) | 51 | ||||||||||||
Tax benefit | -19 | ||||||||||||
Reclassification net of tax | $ | 32 | |||||||||||
Realized losses on interest rate swaps reclassified to interest expense | 73 | ||||||||||||
Tax benefit | -28 | ||||||||||||
Reclassification net of tax | $ | 45 | |||||||||||
Basis_of_presentation_Details
Basis of presentation (Details) (Interest Rate Swap [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Interest Rate Swap [Member] | ' |
Interim Consolidated Financial Information | ' |
Fixed interest rate (as a percent) | 6.34% |
Variable rate basis | 'LIBOR |
Interest rate added to variable rate (as a percent) | 4.25% |
LIBOR floor (as a percent) | 1.50% |
Negative fair value included in accumulated other comprehensive loss, net of tax | ($141,000) |
Notional amount | $50,000,000 |
Fair_Value_Details
Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Other long-term assets | $1,670 | $1,127 |
Total Assets | 1,670 | 1,127 |
Liabilities: | ' | ' |
Long term debt | 111,238 | 110,439 |
Other long-term liabilities- | ' | ' |
Interest rate swaps | 212 | 282 |
Total Liabilities | 115,037 | 114,308 |
Fair Value, Inputs, Level 3 [Member] | TrynexInc [Member] | ' | ' |
Other long-term liabilities- | ' | ' |
Earnout - Trynex | $3,587 | $3,587 |
Fair_Value_Details_2
Fair Value (Details 2) (Potential Earn Out Obligation [Member], TrynexInc [Member], USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Potential Earn Out Obligation [Member] | TrynexInc [Member] | ' |
Reconciliation of liability related to earnout | ' |
Balance at the beginning of the period | $3,587 |
Balance at the end of the period | $3,587 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Finished goods and work-in-process | $44,684 | $26,175 |
Raw material and supplies | 2,195 | 1,802 |
Inventories | $46,879 | $27,977 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Total property, plant and equipment | $57,779 | $56,660 |
Less accumulated depreciation | -32,447 | -31,794 |
Net property, plant and equipment | 25,332 | 24,866 |
Land [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 1,160 | 1,160 |
Land Improvements [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 1,849 | 1,849 |
Building [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 16,743 | 16,743 |
Machinery and Equipment [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 26,212 | 25,756 |
Furniture and Fixtures [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 9,013 | 8,772 |
Mobile Equipment and Other [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 1,222 | 1,267 |
Construction in Progress [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | $1,580 | $1,113 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2011 | |
Long-term debt | ' | ' | ' |
Less current maturities | $971,000 | $971,000 | ' |
Long-term debt, less current maturities | 109,780,000 | 110,023,000 | ' |
Interest Rate Swap [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Notional amount | 50,000,000 | ' | ' |
Fixed interest rate on derivative (as a percent) | 6.34% | ' | ' |
Variable rate basis | 'LIBOR | ' | ' |
Interest rate added to variable rate (as a percent) | 4.25% | ' | ' |
LIBOR floor (as a percent) | 1.50% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | ' | ' | ' |
Long-term debt | ' | ' | ' |
Total long-term debt | 110,751,000 | 110,994,000 | ' |
Less current maturities | 971,000 | 971,000 | ' |
Long-term debt, less current maturities | 109,780,000 | 110,023,000 | ' |
Unamortized discount on issuance of debt | 721,000 | 766,000 | 1,250,000 |
Long-term debt, additional disclosure | ' | ' | ' |
Borrowings under senior credit facility | 125,000,000 | ' | ' |
Percentage of net cash proceeds of certain asset sales, certain insurance or condemnation events, requirement for additional principal prepayments | 100.00% | ' | ' |
Period before end of the fiscal year, for additional principal prepayments of debt, from excess cash flow | '150 days | ' | ' |
Percentage of excess cash flow paid as additional principal prepayments | 50.00% | ' | ' |
Reduced percentage of excess cash flow paid as additional principal prepayments upon achievement of certain leverage ratio thresholds, one | 25.00% | ' | ' |
Reduced percentage of excess cash flow paid as additional principal prepayments upon achievement of certain leverage ratio thresholds, two | 0.00% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Interest Rate Swap [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Length of time after closing date for entering into a hedge | '90 days | ' | ' |
Notional amount | 50,000,000 | ' | ' |
Negative fair value included in other long-term liabilities | 212,000 | ' | ' |
Number of financial institutions for which the entity is exposed to counterparty credit risk | 1 | ' | ' |
Fixed interest rate on derivative (as a percent) | 6.34% | ' | ' |
Variable rate basis | 'LIBOR | ' | ' |
Interest rate added to variable rate (as a percent) | 4.25% | ' | ' |
LIBOR floor (as a percent) | 1.50% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Minimum [Member] | Interest Rate Swap [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Percentage of aggregate outstanding principal amount of debt hedged | 25.00% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option One [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Additional fixed interest rate spread (as a percent) | 3.25% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option One [Member] | Prime Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'Prime Rate | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option One [Member] | Federal Funds Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'Federal funds | ' | ' |
Interest rate added to variable rate (as a percent) | 0.50% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option One [Member] | One Month Adjusted London Interbank Offered Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'London Interbank Offered Rate for a one month interest period | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option One [Member] | Fixed Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Additional interest margin added to fixed and variable rates (as a percent) | 1.00% | ' | ' |
Fixed interest rate base (as a percent) | 1.50% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option Two [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Additional fixed interest rate spread (as a percent) | 4.25% | ' | ' |
Line of Credit [Member] | Secured Debt [Member] | Debt Instrument, Interest Rate Option Two [Member] | Fixed Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Additional interest margin added to fixed and variable rates (as a percent) | 1.50% | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Borrowings under senior credit facility | 80,000,000 | ' | ' |
Remaining borrowing availability | 38,923,000 | ' | ' |
Fixed charge coverage ratio to be maintained if certain minimum availability under the credit facility is not maintained. | 1 | ' | ' |
Outstanding borrowings | 0 | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Annual acquisitions allowed | $10,000,000 | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Debt Instrument, Interest Rate Option One [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Additional fixed interest rate spread (as a percent) | 1.75% | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Debt Instrument, Interest Rate Option One [Member] | London Interbank Offered Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'London Interbank Offered Rate | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Debt Instrument, Interest Rate Option Two [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Additional fixed interest rate spread (as a percent) | 1.25% | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Debt Instrument, Interest Rate Option Two [Member] | Prime Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'Prime Rate | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Debt Instrument, Interest Rate Option Two [Member] | Federal Funds Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'Federal funds | ' | ' |
Interest rate added to variable rate (as a percent) | 0.50% | ' | ' |
Line of Credit [Member] | Revolving Credit Facility [Member] | Debt Instrument, Interest Rate Option Two [Member] | One Month Adjusted London Interbank Offered Rate [Member] | ' | ' | ' |
Long-term debt, additional disclosure | ' | ' | ' |
Variable rate basis | 'London Interbank Offered Rate | ' | ' |
Interest rate added to variable rate (as a percent) | 1.00% | ' | ' |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Accrued Expenses and Other Current Liabilities | ' | ' | ' | ' |
Payroll and related costs | $3,193 | $2,857 | ' | ' |
Employee benefits | 2,410 | 4,522 | ' | ' |
Accrued warranty | 2,930 | 3,808 | 2,859 | 3,628 |
Other | 3,672 | 3,231 | ' | ' |
Accrued expenses and other current liabilities | $12,205 | $14,418 | ' | ' |
Warranty_Liability_Details
Warranty Liability (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Warranty liability | ' | ' |
Period of warranty history used in estimating warranty costs | '5 years | ' |
Company's warranty liability: | ' | ' |
Balance at the beginning of the period | $3,808 | $3,628 |
Warranty provision | 459 | 125 |
Claims paid/settlements | -1,337 | -894 |
Balance at the end of the period | $2,930 | $2,859 |
Snow and Ice Control Equipment [Member] | ' | ' |
Warranty liability | ' | ' |
Warranty period | '2 years | ' |
Parts and Accessories [Member] | ' | ' |
Warranty liability | ' | ' |
Warranty period | '1 year | ' |
Certain Snowplows [Member] | ' | ' |
Warranty liability | ' | ' |
Warranty period | '1 year | ' |
Employee_Retirement_Plans_Deta
Employee Retirement Plans (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Minimum [Member] | |||||
Scenario, Forecast [Member] | |||||
Components of net periodic cost: | ' | ' | ' | ' | ' |
Service cost | $54 | $62 | ' | $40 | $63 |
Interest cost | 374 | 362 | ' | 53 | 61 |
Expected return on plan assets | -408 | -352 | ' | ' | ' |
Amortization of net (gain) loss | 51 | 301 | ' | -100 | -43 |
Net periodic cost | 71 | 373 | ' | -7 | 81 |
Estimated total required contributions | ' | ' | 1,409 | ' | ' |
Cash contributions | $506 | $95 | ' | ' | ' |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic earnings per common share | ' | ' |
Net income | $1,575 | ($3,404) |
Less income allocated to participating securities | 23 | -43 |
Net income attributable to common shareholders | 1,552 | -3,361 |
Weighted average common shares outstanding | 22,103,167 | 21,971,055 |
Basic income per common share (in dollars per share) | $0.07 | ($0.15) |
Earnings per common share assuming dilution | ' | ' |
Net income | 1,575 | -3,404 |
Less income allocated to participating securities | 23 | -43 |
Net income attributable to common shareholders | $1,552 | ($3,361) |
Weighted average common shares outstanding | 22,103,167 | 21,971,055 |
Incremental shares applicable to stock based compensation | 19,502 | ' |
Weighted average common shares assuming dilution | 22,122,669 | 21,971,055 |
Earnings per common share assuming dilution (in dollars per share) | $0.07 | ($0.15) |
Anti-dilutive shares excluded from computation of diluted earnings per share | 0 | 54,866 |
Employee_Stock_Plans_Details
Employee Stock Plans (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | Stock Incentive Plan 2010 [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Shares [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Employee Stock Option [Member] |
Stock Incentive Plan 2010 [Member] | Director [Member] | Management [Member] | Management [Member] | Amended and Restated 2004 Stock Incentive Plan [Member] | ||||||
age | ||||||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,240 |
Expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Number of awards permitted to be issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Stock options exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Maximum number of shares of common stock that may be issued | 2,130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in shares) | ' | 13.03 | ' | ' | 43,348 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 0 | ' | ' | 140,291 | ' | ' | ' | ' | ' |
Vested (in shares) | ' | -14.78 | ' | ' | -100,620 | ' | ' | ' | ' | ' |
Unvested at the end of the period (in shares) | ' | 12.44 | 13.03 | ' | 83,019 | 43,348 | ' | ' | ' | ' |
Expected to vest in the future, at the end of the period (in shares) | ' | 12.44 | ' | ' | 80,030 | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | ' | $169,903 | ' | ' | $14.46 | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | $16.30 | $15.29 | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | $43,263 | ' | ' | $15.14 | ' | ' | ' | ' | ' |
Unvested at the end of the period (in dollars per share) | ' | $126,640 | $169,903 | ' | $15.04 | $14.46 | ' | ' | ' | ' |
Cancelled and forfeited (in dollars per share) | ' | $0 | ' | ' | $0 | ' | ' | ' | ' | ' |
Expected to vest in the future, at the end of the period (in dollars per share) | ' | $122,081 | ' | ' | $15.04 | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested at the beginning of the period | ' | '1 year 2 months 12 days | '1 year 4 months 2 days | ' | '1 year 9 months 26 days | '1 year 6 months 18 days | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | '1 year 29 days | ' | ' | ' | ' | ' |
Unvested at the end of the period | ' | '1 year 2 months 12 days | '1 year 4 months 2 days | ' | '1 year 9 months 26 days | '1 year 6 months 18 days | ' | ' | ' | ' |
Expected to vest in future, at the end of the period | ' | '1 year 2 months 12 days | ' | ' | '1 year 9 months 26 days | ' | ' | ' | ' | ' |
Recognized and unrecognized compensation expense with weighted average recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of awards | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Compensation expenses recognized | ' | $215 | ' | $49 | $758 | ' | ' | ' | ' | ' |
Unrecognized compensation expense, net of expected forfeitures, calculated under the fair value method for shares expected to vest | ' | 1,004 | ' | 723 | 1,106 | ' | ' | ' | ' | ' |
Weighted average period over which unrecognized compensation expense is expected to be recognized | ' | '1 year 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum age of employee, attaining which awards are continued to be vested upon retirement | ' | ' | ' | ' | ' | ' | ' | 65 | ' | ' |
Minimum service period, upon serving which awards are continued to be vested upon retirement | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Minimum age of employee along with service period condition, attaining which awards are continued to be vested upon retirement | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' |
Accelerated stock based compensation expense | ' | ' | ' | ' | ' | ' | ' | $278 | $261 | ' |
Number of shares issued upon exercise of units other than options | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes | ' | ' |
Effective tax rate (as a percent) | 32.80% | 38.60% |
Impairment_of_Assets_Held_For_1
Impairment of Assets Held For Sale (Details) (USD $) | 0 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Mar. 31, 2013 |
Impairment of Assets Held For Sale | ' | ' |
Loss recognized on impairment of assets held for sale | ' | $647 |
Sale price | 1,100 | ' |
Closing costs | $83 | ' |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Loss by Component (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Changes to accumulated other comprehensive loss by component | ' |
Balance at the beginning of the period | ($862) |
Other comprehensive earning (loss) before reclassifications | -2 |
Amounts reclassified from accumulated other comprehensive loss | 15 |
Balance at the end of the period | -849 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' |
Changes to accumulated other comprehensive loss by component | ' |
Balance at the beginning of the period | -184 |
Other comprehensive earning (loss) before reclassifications | -2 |
Amounts reclassified from accumulated other comprehensive loss | 45 |
Balance at the end of the period | -141 |
Accumulated Other Postretirement Benefit Liability [Member] | ' |
Changes to accumulated other comprehensive loss by component | ' |
Balance at the beginning of the period | 2,234 |
Amounts reclassified from accumulated other comprehensive loss | -62 |
Balance at the end of the period | 2,172 |
Accumulated Pension Liability [Member] | ' |
Changes to accumulated other comprehensive loss by component | ' |
Balance at the beginning of the period | -2,912 |
Amounts reclassified from accumulated other comprehensive loss | 32 |
Balance at the end of the period | ($2,880) |
Changes_in_Accumulated_Other_C3
Changes in Accumulated Other Comprehensive Loss by Component (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Amounts reclassified from accumulated other comprehensive loss: | ' | ' |
Interest expense, net | $1,972 | $1,983 |
Tax expense (benefit) | 768 | -2,139 |
Reclassification net of tax | -1,552 | 3,361 |
Accumulated Other Postretirement Benefit Liability [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Amounts reclassified from accumulated other comprehensive loss: | ' | ' |
Actuarial (gains) losses | -100 | ' |
Tax expense (benefit) | 38 | ' |
Reclassification net of tax | -62 | ' |
Accumulated Pension Liability [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Amounts reclassified from accumulated other comprehensive loss: | ' | ' |
Actuarial (gains) losses | 51 | ' |
Tax expense (benefit) | -19 | ' |
Reclassification net of tax | 32 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Amounts reclassified from accumulated other comprehensive loss: | ' | ' |
Interest expense, net | 73 | ' |
Tax expense (benefit) | -28 | ' |
Reclassification net of tax | $45 | ' |