Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 05, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 001-34728 | |
Entity Registrant Name | DOUGLAS DYNAMICS, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-4275891 | |
Entity Address, Address Line One | 7777 North 73rd Street | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53223 | |
City Area Code | 414 | |
Local Phone Number | 354-2310 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | PLOW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,857,457 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001287213 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 27,141 | $ 35,665 |
Accounts receivable, net | 48,096 | 87,871 |
Inventories | 112,370 | 77,942 |
Inventories - truck chassis floor plan | 8,774 | 6,539 |
Refundable income taxes paid | 974 | |
Prepaid and other current assets | 5,168 | 3,511 |
Total current assets | 202,523 | 211,528 |
Property, plant, and equipment, net | 58,542 | 58,444 |
Goodwill | 241,006 | 241,006 |
Other intangible assets, net | 160,984 | 163,722 |
Operating lease - right of use asset | 21,555 | 22,557 |
Other long-term assets | 7,926 | 8,438 |
Total assets | 692,536 | 705,695 |
Current liabilities: | ||
Accounts payable | 17,224 | 16,113 |
Accrued expenses and other current liabilities | 22,135 | 26,496 |
Floor plan obligations | 8,774 | 6,539 |
Operating lease liability - current | 3,770 | 3,822 |
Income taxes payable | 2,990 | |
Short term borrowings | 30,000 | |
Current portion of long-term debt | 1,938 | 22,143 |
Total current liabilities | 83,841 | 78,103 |
Retiree health benefit obligation | 6,451 | 6,338 |
Deferred income taxes | 45,961 | 47,211 |
Long-term debt, less current portion | 222,008 | 222,081 |
Operating lease liability - noncurrent | 18,010 | 18,981 |
Other long-term liabilities | 23,230 | 19,818 |
Stockholders' equity: | ||
Common Stock, par value $0.01, 200,000,000 shares authorized, 22,857,457 and 22,795,412 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 229 | 228 |
Additional paid-in capital | 156,296 | 155,001 |
Retained earnings | 143,618 | 160,748 |
Accumulated other comprehensive loss, net of tax | (7,108) | (2,814) |
Total stockholders' equity | 293,035 | 313,163 |
Total liabilities and stockholders' equity | $ 692,536 | $ 705,695 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
CONDENSED 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 | 22,857,457 | 22,795,412 |
Common Stock, shares outstanding | 22,857,457 | 22,795,412 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net sales | $ 68,190 | $ 93,187 |
Cost of sales | 56,500 | 70,241 |
Gross profit | 11,690 | 22,946 |
Selling, general, and administrative expense | 17,149 | 16,644 |
Intangibles amortization | 2,738 | 2,741 |
Income (loss) from operations | (8,197) | 3,561 |
Interest expense, net | (5,040) | (4,150) |
Other expense, net | (111) | (171) |
Loss before taxes | (13,348) | (760) |
Income tax benefit | (3,262) | (463) |
Net loss | $ (10,086) | $ (297) |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 22,813,256 | 22,729,084 |
Diluted (in shares) | 22,813,256 | 22,729,084 |
Loss per common share: | ||
Basic | $ (0.44) | $ (0.01) |
Diluted | (0.44) | (0.01) |
Cash dividends declared per share (in dollars per share) | 0.28 | 0.27 |
Cash dividends declared per share (in dollars per share) | $ 0.28 | $ 0.27 |
Comprehensive loss | $ (14,380) | $ (1,319) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net loss | $ (10,086) | $ (297) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,894 | 4,808 |
Amortization of deferred financing costs and debt discount | 303 | 303 |
Stock-based compensation | 1,368 | 1,054 |
Mark-to-market adjustments on derivatives not classified as hedges | 1,413 | |
Provision for losses on accounts receivable | 204 | 107 |
Deferred income taxes | (1,250) | 1,010 |
Earnout liability | (17) | (217) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 39,014 | 26,096 |
Inventories | (34,428) | (29,229) |
Prepaid assets, refundable income taxes and other assets | (2,119) | (3,676) |
Accounts payable | 1,161 | (2,179) |
Accrued expenses and other current liabilities | (7,334) | (1,451) |
Benefit obligations and other long-term liabilities | (2,203) | (1,906) |
Net cash used in operating activities | (9,080) | (5,577) |
Investing activities | ||
Capital expenditures | (2,304) | (769) |
Net cash used in investing activities | (2,304) | (769) |
Financing activities | ||
Shares withheld on restricted stock vesting paid for employees' taxes | (72) | (50) |
Dividends paid | (6,487) | (6,292) |
Net revolver borrowings | 30,000 | 16,000 |
Repayment of long-term debt | (20,581) | (30,784) |
Net cash provided by (used in) financing activities | 2,860 | (21,126) |
Change in cash and cash equivalents | (8,524) | (27,472) |
Cash and cash equivalents at beginning of period | 35,665 | 27,820 |
Cash and cash equivalents at end of period | 27,141 | 348 |
Non-cash operating and financing activities | ||
Truck chassis inventory acquired through floorplan obligations | $ 6,215 | $ 10,299 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2018 | $ 227 | $ 151,813 | $ 136,765 | $ (6,049) | $ 282,756 |
Balance (in shares) at Dec. 31, 2018 | 22,700,991 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (297) | (297) | |||
Dividends paid | (6,292) | (6,292) | |||
Adjustment for pension and postretirement benefit liability, net of tax of $20 in 2020, ($18) in 2019 | 53 | 53 | |||
Adjustment for interest rate swap, net of tax of $1,489 in 2020, $378 in 2019 | (1,075) | (1,075) | |||
Shares withheld on restricted stock vesting | (50) | (50) | |||
Stock based compensation | $ 1 | 1,053 | 1,054 | ||
Stock based compensation (in shares) | 94,421 | ||||
Balance at Mar. 31, 2019 | $ 228 | 152,816 | 130,176 | (7,071) | 276,149 |
Balance (in shares) at Mar. 31, 2019 | 22,795,412 | ||||
Balance at Dec. 31, 2018 | $ 227 | 151,813 | 136,765 | (6,049) | 282,756 |
Balance (in shares) at Dec. 31, 2018 | 22,700,991 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Pension termination, net of tax of ($2,237) | (6,380) | ||||
Balance at Dec. 31, 2019 | $ 228 | 155,001 | 160,748 | (2,814) | 313,163 |
Balance (in shares) at Dec. 31, 2019 | 22,795,412 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (10,086) | (10,086) | |||
Dividends paid | (6,487) | (6,487) | |||
Adjustment for pension and postretirement benefit liability, net of tax of $20 in 2020, ($18) in 2019 | (57) | (57) | |||
Adjustment for interest rate swap, net of tax of $1,489 in 2020, $378 in 2019 | (4,237) | (4,237) | |||
Shares withheld on restricted stock vesting | (72) | (72) | |||
Stock based compensation | $ 1 | 1,367 | 1,368 | ||
Stock based compensation (in shares) | 62,045 | ||||
Balance at Mar. 31, 2020 | $ 229 | $ 156,296 | 143,618 | $ (7,108) | 293,035 |
Balance (in shares) at Mar. 31, 2020 | 22,857,457 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Impact due to adoption | $ (557) | $ (557) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||
Impact due to adoption, net of tax | $ 193 | |
Adjustment for pension and postretirement benefit liability, tax | 20 | $ (18) |
Adjustment for interest rate swap, tax | $ 1,489 | $ 378 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2020 | |
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 2019 Form 10-K (Commission File No. 001-34728) filed with the Securities and Exchange Commission on February 25, 2020. The Company conducts business in two segments: Work Truck Attachments and Work Truck Solutions. Under this reporting structure, the Company’s two reportable business segments are as follows: Work Truck Attachments. includes commercial snow and ice management attachments sold under the FISHER®, WESTERN® and SNOWEX® brands. This segment consists of our operations that manufacture and sell snow and ice control products. Work Truck Solutions. See Note 16 to the Unaudited Condensed Consolidated Financial Statements for financial information regarding these segments. Interim Condensed Consolidated Financial Information The accompanying condensed consolidated balance sheet as of March 31, 2020, the condensed consolidated statements of operations and comprehensive loss and the condensed consolidated statements of shareholders’ equity for the three months ended March 31, 2020 and 2019, and the condensed cash flows for the three months ended March 31, 2020 and 2019 have been prepared by the Company and have not been audited. The Company’s Work Truck Attachments segment is seasonal and, consequently its results of operations and financial condition vary from quarter-to-quarter. Because of this seasonality, the results of operations of the Work Truck Attachments segment 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 of Work Truck Attachments products 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’s Work Truck Attachments segment 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 end-users of Work Truck Attachments products prefer to wait until the beginning of a snow season to purchase new equipment and as the Company’s distributors sell off Work Truck Attachments 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 Work Truck Attachments 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. In addition, due to the factors noted above, Work Truck Attachments working capital needs are highest in the second and third quarters as its accounts receivable rise from pre-season sales. These working capital needs decline in the fourth quarter as the Company receives payments for its pre-season shipments. As a result of the COVID-19 crisis, including the market volatility and other economic implications associated with the crisis and the economic and regulatory measures enacted to contain its spread, the Company’s results of operations have been impacted in the three months ended March 31, 2020, and may be significantly impacted in future quarters. In addition, the Company’s working capital and liquidity needs may become more unpredictable as a result of changes in order patterns among customers due to the crisis. Based on the COVID-19 crisis, the results of operations of the Company for any quarter during the crisis 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 preventatively and voluntarily closed its facilities on March 18, 2020. Since that time, the Company has started to slowly ramp up production at various facilities as appropriate. The Company has taken all of the necessary safety steps and precautions for employees who have returned to work. As of the date of this filing, the Company is not yet up to full production levels. The Company will continue to monitor the situation and provide updates as appropriate. During the three months ended March 31, 2020, the Company benefited from credits related to the passage of the CARES Act on March 27, 2020 in response to the COVID-19 crisis. Under the CARES Act, the Company qualified for an Employee Retention Credit for wages paid to employees who were not working due to a plant shutdown related to the COVID-19 crisis. As a result of the CARES Act, the Company recorded a total benefit of $1,152 to Cost of sales and Selling, general and administrative expense on the Consolidated Condensed Consolidated Statements of Operations and Comprehensive Loss. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which modifies the measurement of expected credit losses for financial instruments held at the reporting date. The standard is effective for annual periods beginning after December 15, 2019. The Company adopted this standard in the first quarter of fiscal 2020. Upon adoption, the Company recognized the cumulative effect of adopting this guidance as an adjustment to the opening balance of retained earnings of $557 , net of tax. The Company has identified and implemented changes to processes and controls to meet the standard’s updated reporting and disclosure requirements. See Note 3 for additional information. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The Company adopted this standard in the first quarter of fiscal 2020 specifically related to its interest rate swap, where the Company asserts the forecasted transaction using the existing reference rate associated with the swap remains probable. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition | |
Revenue Recognition | 2. Revenue Recognition Revenue Streams The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company generates all of its revenue from contracts with customers. Additionally, contract amounts represent the full amount of the transaction price as agreed upon with the customer at the time of order, resulting in a single performance obligation in all cases. In regards to the COVID-19 crisis, the Company believes most customers within all revenue streams identified below provide essential services. Work Truck Attachments The Company recognizes revenue upon shipment of equipment to the customer. Within the Work Truck Attachments segment, the Company offers a variety of discounts and sales incentives to its distributors. The estimated liability for sales discounts and allowances is calculated using the expected value method and recorded at the time of sale as a reduction of net sales. The liability is estimated based on the costs of the program, the planned duration of the program and historical experience. The Work Truck Attachments segment has two revenue streams, as identified below. Independent Dealer Sales Parts & Accessory Sales Work Truck Solutions The Work Truck Solutions segment primarily participates in the truck and vehicle upfitting industry in the United States. Customers are billed separately for the truck chassis by the chassis manufacturer. The Company only records sales for the amount of the upfit, excluding the truck chassis. Generally, the Company obtains the truck chassis from the truck chassis manufacturer through either its floor plan agreement with a financial institution or bailment pool agreement with the truck chassis manufacturer. Additionally, in some instances the Company upfits chassis which are owned by the end customer. For truck chassis acquired through the floor plan agreement, the Company holds title to the vehicle from the time the chassis is received by the Company until the completion of the up-fit. Under the bailment pool agreement, the Company does not take title to the truck chassis, but rather only holds the truck chassis on consignment. The Company pays interest on both of these arrangements. The Company records revenue in the same manner net of the value of the truck chassis in both the Company’s floor plan and bailment pool agreements. The Company does not set the price for the truck chassis, is not responsible for the billing of the chassis and does not have inventory risk in either the bailment pool or floor plan agreements. The Work Truck Solutions segment also has manufacturing operations of municipal snow and ice control equipment, where revenue is recognized upon shipment of equipment to the customer. Revenues from the sales of the Work Truck Solutions products are recognized net of the truck chassis with the selling price to the customer recorded as sales and the manufacturing and up-fit cost of the product recorded as cost of sales. In these cases, the Company acts as an agent as it does not have inventory or pricing control over the truck chassis. Within the Work Truck Solutions segment, the Company also sells certain third-party products for which it acts as an agent. These sales do not meet the criteria for gross sales recognition, and thus are recognized on a net basis at the time of sale. Under net sales recognition, the cost paid to the third-party service provider is recorded as a reduction to sales, resulting in net sales being equal to the gross profit on the transaction. The Work Truck Solutions segment has four revenue streams, as identified below. State and Local Bids single performance obligation. Any shipping and handling activities performed by the Company after the transfer of control to the Customer (e.g., when control transfers upon shipment) are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Fleet Upfit Sales Dealer Upfit Sales Over the Counter / Parts & Accessory Sales Disaggregation of Revenue The following table provides information about disaggregated revenue by customer type and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments. Revenue by customer type was as follows: Three Months Ended March 31, 2020 Work Truck Attachments Work Truck Solutions Total Revenue Independent dealer $ 19,120 $ 28,052 $ 47,172 Government - 10,490 10,490 Fleet - 9,229 9,229 Other - 1,299 1,299 Total revenue $ 19,120 $ 49,070 $ 68,190 Three Months Ended March 31, 2019 Work Truck Attachments Work Truck Solutions Total Revenue Independent dealer $ 25,817 $ 33,043 $ 58,860 Government - 15,529 15,529 Fleet - 14,952 14,952 Other - 3,846 3,846 Total revenue $ 25,817 $ 67,370 $ 93,187 Revenue by timing of revenue recognition was as follows: Three Months Ended March 31, 2020 Work Truck Attachments Work Truck Solutions Total Revenue Point in time $ 19,120 $ 29,714 $ 48,834 Over time - 19,356 19,356 Total revenue $ 19,120 $ 49,070 $ 68,190 Three Months Ended March 31, 2019 Work Truck Attachments Work Truck Solutions Total Revenue Point in time $ 25,817 $ 42,023 $ 67,840 Over time - 25,347 25,347 Total revenue $ 25,817 $ 67,370 $ 93,187 Contract Balances The following table shows the changes in the Company’s contract liabilities during the three months ended March 31, 2020 and 2019, respectively: Three Months Ended March 31, 2020 Balance at Beginning of Period Additions Deductions Balance at End of Period Contract liabilities $ 2,187 $ 1,637 $ (1,789) $ 2,035 Three Months Ended March 31, 2019 Balance at Beginning of Period Additions Deductions Balance at End of Period Contract liabilities $ 2,006 $ 2,335 $ (2,041) $ 2,300 The Company receives payments from customers based upon contractual billing schedules. Contract assets include amounts related to our contractual right to consideration for completed performance objectives not yet invoiced. There were no contract assets as of March 31, 2020 or 2019. Contract liabilities include payments received in advance of performance under the contract, variable freight allowances which are refunded to the customer, and rebates paid to distributors under our municipal rebate program, and are realized with the associated revenue recognized under the contract. The Company recognized revenue of $467 and $372 during the three months ended March 31, 2020 and 2019, respectively, which was included in contract liabilities at the beginning of each period. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Credit Losses | |
Credit Losses | 3. Credit Losses Effective January 1, 2020, the Company adopted new accounting guidance that significantly changes the impairment model for estimating credit losses on financial assets to a current expected credit losses (“CECL”) model that requires entities to estimate the lifetime expected credit losses on such assets, leading to earlier recognition of such losses. Under the new guidance, the Company is required to measure expected credit losses using forward-looking information to assess its allowance for credit losses. The guidance also requires the Company to consider of a broader range of reasonable and supportable information in estimating credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Effective January 1, 2020, the adoption of CECL accounting, through a modified-retrospective approach, caused an increase to the allowance for credit losses of approximately $400 and $350 for the Work Truck Attachments and Work Truck Solutions segments, respectively. The majority of the Company’s accounts receivable are due from distributors of truck equipment and dealers of completed upfit trucks. Credit is extended based on an evaluation of a customer’s financial condition. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Accounts receivable are written off after all collection efforts have been exhausted. The Company takes a security interest in the inventory as collateral for the receivable but often does not have a priority security interest. The Company has short-term accounts receivable at its Work Truck Attachments and Work Truck Solutions segments subject to evaluation for expected credit losses. Expected credit losses are estimated based on the loss-rate and probability of default methods. On a periodic basis, the Company evaluates its accounts receivable and establishes the allowance for credit losses based on specific customer circumstances, past events including collections and write-off history, current conditions, and reasonable forecasts about the future. Management evaluated the need for an additional allowance for credit losses related to economic conditions arising from the COVID-19 crisis. Management has not seen indications of customers going out of business and not being able to pay their bills (although the receivables may become more aged). Management believes customers of the Work Truck Attachments segment have long-standing relationships with the Company, and are mature dealers that are likely able to weather the crisis. Many Work Truck Solutions customers are governments and municipal entities who management believes are highly unlikely to default. In addition management believes Work Truck Solutions has long-standing relationships with its customers, and the customers are in general mature dealers that are unlikely to default as a result of the crisis. Therefore, as of March 31, 2020, no additional reserve related to the COVID-19 crisis was deemed necessary. As of March 31, 2020 the Company had an allowance for credit losses on its trade accounts receivable of $1,151 and $1,284 at its Work Truck Attachments and Work Truck Solutions segments, respectively. The following table rolls forward the activity related to credit losses for trade accounts receivable at each segment, and on a consolidated basis for the three months ended March 31, 2020: Balance at Adoption of Additions Changes to Balance at December 31, ASU 2016-13 charged to Writeoffs reserve, net March 31, 2019 earnings 2020 Three Months Ended March 31, 2020 Work Truck Attachments $ 600 $ 400 $ 100 $ - $ 51 $ 1,151 Work Truck Solutions 887 350 104 - (57) 1,284 Total $ 1,487 $ 750 $ 204 $ - $ (6) $ 2,435 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value | |
Fair Value | 4. 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, 2020 2019 Assets: Other long-term assets (a) $ 6,767 $ 7,270 Total Assets $ 6,767 $ 7,270 Liabilities: Interest rate swaps (b) $ 13,876 $ 6,736 Long-term debt (c) 218,543 247,630 Earnout - Dejana (d) 2,000 2,000 Total Liabilities $ 234,419 $ 256,383 (a) Included in other assets is the cash surrender value of insurance policies on various individuals that are associated with the Company. The carrying amount of these insurance policies approximates their fair value and is considered Level 2 inputs. (b) 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. Interest rate swaps of $3,570 and $10,306 at March 31, 2020 are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively. Interest rate swaps of $1,522 and $5,214 at December 31, 2019 are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively. (c) 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 and deferred debt issuance costs, as disclosed on the face of the balance sheet. (d) Included in Other long-term liabilities in the amount of $2,000 at March 31, 2020 is the fair value of an obligation for a portion of the potential earnout incurred in conjunction with the acquisition of substantially all of the assets of Dejana Truck & Utility Equipment Company, Inc. and certain entities directly or indirectly owned by the Peter Paul Dejana Family Trust dated 12/31/98 (“Dejana”). Included in Other long-term liabilities in the amount of $2,200 at March 31, 2019 is the fair value of an obligation for a portion of the potential earnout incurred in conjunction with the acquisition of Dejana. Fair value is based upon Level 3 inputs of a real options approach where gross sales were simulated in a risk-neutral framework using Geometric Brownian Motion, a well-accepted model of stock price behavior that is used in option pricing models such as the Black-Scholes option pricing model, using key inputs of forecasted future sales and financial performance as well as a risk adjusted expected growth rate adjusted appropriately based on its correlation with the market. There were no adjustments to fair value or payments to former owners in either the three months ended March 31, 2020 or March 31, 2019. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Inventories | 5. Inventories Inventories consist of the following: March 31, December 31, 2020 2019 Finished goods $ 65,530 $ 42,125 Work-in-process 11,187 6,906 Raw material and supplies 35,653 28,911 $ 112,370 $ 77,942 The inventories in the table above do not include truck chassis inventory financed through a floor plan financing agreement, which are recorded separately on the balance sheet. The Company takes title to truck chassis upon receipt of the inventory through its floor plan agreement and performs up-fitting service installations to the truck chassis inventory during the installation period. The floor plan obligation is then assumed by the dealer customer upon delivery. At March 31, 2020 and December 31, 2019, the Company had $8,774 and $6,539 of chassis inventory and related floor plan financing obligation, respectively. The Company recognizes revenue associated with up-fitting and service installations net of the truck chassis. |
Property, plant and equipment
Property, plant and equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, plant and equipment | |
Property, plant and equipment | 6. Property, plant and equipment Property, plant and equipment are summarized as follows: March 31, December 31, 2020 2019 Land $ 2,378 $ 2,378 Land improvements 4,541 4,541 Leasehold improvements 4,087 4,087 Buildings 28,938 28,715 Machinery and equipment 55,743 55,238 Furniture and fixtures 18,193 17,918 Mobile equipment and other 5,323 5,285 Construction-in-process 7,706 6,555 Total property, plant and equipment 126,909 124,717 Less accumulated depreciation (68,367) (66,273) Net property, plant and equipment $ 58,542 $ 58,444 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | 7. Leases The Company has operating leases for manufacturing and upfit facilities, land and parking lots, warehousing space and certain equipment. The leases have remaining lease terms of less than one year to 16 years , some of which include options to extend the leases for up to 10 years . Such renewal options were not included in the determination of the lease term unless deemed reasonably certain of exercise. The discount rate used in measuring the lease liabilities is based on the Company’s interest rate on its secured Term Loan Credit Agreement. Certain of the Company’s leases contain escalating rental payments based on an index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease Expense The components of lease expense, which are included in Cost of sales and Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Loss, were as follows: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Operating lease expense $ 1,311 $ 1,132 Short term lease cost $ 39 $ 100 Total lease cost $ 1,350 $ 1,232 Cash Flow Supplemental cash flow information related to leases is as follows: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,303 $ 765 Non-cash lease expense - right-of-use assets $ 1,015 $ 785 Right-of-use assets obtained in exchange for operating lease obligations $ 321 $ 56 Balance Sheet Supplemental balance sheet information related to leases is as follows: March 31, 2020 December 31, 2019 Operating Leases Operating lease right-of-use assets $ 21,555 $ 22,557 Other current liabilities 3,770 3,822 Operating lease liabilities 18,010 18,981 Total operating lease liabilities $ 21,780 $ 22,803 Weighted Average Remaining Lease Term Operating leases 75 months 78 months Weighted Average Discount Rate Operating leases 5.31% 5.32% Lease Maturities Maturities of leases were as follows: Year ending December 31, Operating Leases 2020 (excluding the three months ended March 31, 2020) $ 3,704 2021 4,716 2022 4,307 2023 3,824 2024 3,194 Thereafter 6,146 Total Lease Payments 25,891 Less: imputed interest (4,111) Total $ 21,780 |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Intangible Assets | |
Other Intangible Assets | l 8. Other Intangible Assets The following is a summary of the Company’s other intangible assets: Gross Less Net Carrying Accumulated Carrying Amount Amortization Amount March 31, 2020 Indefinite-lived intangibles: Trademark and tradenames $ 77,600 $ - $ 77,600 Amortizable intangibles: Dealer network 80,000 64,000 16,000 Customer relationships 80,920 23,239 57,681 Patents 21,136 13,543 7,593 Noncompete agreements 8,640 8,252 388 Trademarks 5,459 3,737 1,722 Backlog 1,900 1,900 - License 20 20 - Amortizable intangibles, net 198,075 114,691 83,384 Total $ 275,675 $ 114,691 $ 160,984 Gross Less Net Carrying Accumulated Carrying Amount Amortization Amount December 31, 2019 Indefinite-lived intangibles: Trademark and tradenames $ 77,600 $ - $ 77,600 Amortizable intangibles: Dealer network 80,000 63,000 17,000 Customer relationships 80,920 21,914 59,006 Patents 21,136 13,229 7,907 Noncompete agreements 8,640 8,177 463 Trademarks 5,459 3,713 1,746 Backlog 1,900 1,900 - License 20 20 - Amortizable intangibles, net 198,075 111,953 86,122 Total $ 275,675 $ 111,953 $ 163,722 Amortization expense for intangible assets was $2,738 and $2,741 for the three months ended March 31, 2020 and 2019, respectively. Estimated amortization expense for the remainder of 2020 and each of the succeeding five years is as follows: 2020 $ 8,199 2021 10,670 2022 10,520 2023 10,520 2024 7,520 2025 6,075 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt | |
Long-Term Debt | 9. Long-Term Debt Long-term debt is summarized below: l March 31, December 31, 2020 2019 Term Loan, net of debt discount of $683 and $781 at March 31, 2020 and December 31, 2019, respectively $ 225,302 $ 245,787 Less current maturities 1,938 22,143 Long-term debt before deferred financing costs 223,364 223,644 Deferred financing costs, net 1,356 1,563 Long-term debt, net $ 222,008 $ 222,081 At March 31, 2020, the Company had outstanding borrowings under its term loan credit agreement of $225,302, outstanding borrowings on its revolving credit facility of $30,000, and remaining borrowing availability of $59,160. At December 31, 2019, the Company had outstanding borrowings under its term loan credit agreement of $245,787, no outstanding borrowings on its revolving credit facility and remaining borrowing availability of $99,352. 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 each fiscal year, 50% of consolidated excess cash flow including a deduction for certain distributions (which percentage is reduced to 0% upon the achievement of certain leverage ratio thresholds), for such fiscal year. Consolidated excess cash flow is defined in the senior credit facilities as consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) plus a consolidated 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 certain dividends or distributions). Consolidated 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 the current portion of long-term debt. As of March 31, 2020, the Company was not required to make additional excess cash flow payments during fiscal 2020. The Company made a voluntary payment of $20,000 on its debt on January 31, 2020. On June 13, 2019 the Company entered into an interest rate swap agreement to reduce its exposure to interest rate volatility. The interest rate swap has a notional amount of $175,000 effective for the period May 31, 2019 through May 31, 2024. The Company may have counterparty credit risk resulting from the interest rate swap, which it monitors on an on-going basis. The risk lies with one global financial institution. Under the interest rate swap agreement, the Company will either receive or make payments on a monthly basis based on the differential between 2.495% and LIBOR (with a LIBOR floor of 1.0%). The interest rate swap was previously accounted for as a cash flow hedge. During the three months ended March 31, 2020, the swap was determined to be ineffective. As a result, the swap was dedesignated on March 19, 2020, and the remaining losses currently included in Accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets will be amortized into interest expense on a straight line basis through the life of the swap. The amount expected to be amortized from Accumulated other comprehensive loss into earnings in the next twelve months is $2,991. A mark-to-market adjustment of $1,413 was recorded in earnings on March 31, 2020 related to the swap. The interest rate swap’s negative fair value at March 31, 2020 was $13,876, of which $3,570 and $10,306 are included in Accrued expenses and other current liabilities and Other long-term liabilities on the Condensed Consolidated Balance Sheet, respectively. The interest rate swap’s negative fair value at December 31, 2019 was $6,736, of which $1,522 and $5,214 are included in Accrued expenses and other current liabilities and Other long-term liabilities on the Condensed Consolidated Balance Sheet, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 10. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are summarized as follows: March 31, December 31, 2020 2019 Payroll and related costs $ 5,633 $ 10,382 Employee benefits 6,154 6,097 Accrued warranty 3,202 3,941 Interest rate swaps 3,570 1,522 Other 3,576 4,554 $ 22,135 $ 26,496 |
Warranty Liability
Warranty Liability | 3 Months Ended |
Mar. 31, 2020 | |
Warranty Liability | |
Warranty Liability | 11. 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. All of the Company’s warranties are assurance-type warranties. 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 was $5,202 at March 31, 2020, of which $2,000 is included in Other long-term liabilities and $3,202 is included in Accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheet. The warranty reserve was $6,541 at December 31, 2019, of which $2,600 is included in Other long-term liabilities and $3,941 is included in Accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheet. The following is a rollforward of the Company’s warranty liability: Three Months Ended March 31, March 31, 2020 2019 Balance at the beginning of the period $ 6,541 $ 6,174 Warranty provision 549 561 Claims paid/settlements (1,888) (1,644) Balance at the end of the period $ 5,202 $ 5,091 |
Employee Retirement Plans
Employee Retirement Plans | 3 Months Ended |
Mar. 31, 2020 | |
Employee Retirement Plans | |
Employee Retirement Plans | 12. Employee Retirement Plans The Company sponsored qualified defined-benefit plans, including the Douglas Dynamics, L.L.C Pension Plan for Hourly Employees (“hourly plan”) and the Douglas Dynamics, L.L.C Salaried Pension Plan (“salaried plan”). The salaried plan generally provided pension benefits that were based on the employee’s average earnings and credited service. Such plan was partially frozen as of December 31, 2011 and subsequently was completely frozen as of December 31, 2018. The hourly plan generally provided benefits of stated amounts for each year of service. Such plan was frozen as of December 31, 2011. Consistent with its long term plans, the Company terminated its hourly plan and salaried plan during the fourth quarter of 2019. In October of 2019, lump-sum settlement payments of $3,245 and $12,476 were made from the hourly plan and salaried plan, respectively, in conjunction with the termination of these plans. In satisfaction of its obligations, in November of 2019 the Company purchased annuities of $4,767 and $20,044 for hourly plan and salaried plan participants, respectively. The Company recognized a non-cash charge within the Consolidated Statements of Income related to unrecognized actuarial losses in AOCL of $6,380 in the year ended December 31, 2019. The components of net periodic pension cost consist of the following: March 31, 2019 Component of net periodic pension cost: Service cost $ - Interest cost 410 Expected return on plan assets (294) Amortization of net loss 149 Net periodic pension cost $ 265 In conjunction with the termination of the plans, the Company made payments of $464 in the fourth quarter of 2019. Components of net periodic other postretirement benefit cost consist of the following: Three Months Ended March 31, March 31, 2020 2019 Component of periodic other postretirement benefit cost: Service cost $ 37 $ 37 Interest cost 47 63 Amortization of net gain (77) (78) Net periodic other postretirement benefit cost $ 7 $ 22 Service cost is included in Income from operations on the Condensed Consolidated Statement of Operations and Comprehensive Loss. The other components of net periodic pension and postretirement benefit cost are included in Other expense on the Condensed Consolidated Statement of Operations and Comprehensive Loss. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings per Share | |
Earnings per Share | 13. Loss per Share Basic loss per share of common stock is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share of common stock is computed by dividing net loss by the weighted average number of common shares, using the two-class method. As the Company has granted RSUs that both participate in dividend equivalents and do not participate in dividend equivalents, the Company has calculated loss per share pursuant to the two-class method, which is a loss allocation formula that determines loss per share for common stock and participating securities according to dividends declared and participation rights in undistributed losses. Under this method, all losses (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Diluted net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average number of common stock and dilutive common stock outstanding during the period. Potential common shares in the diluted net loss per share computation are excluded to the extent that they would be anti-dilutive. Weighted average of potentially dilutive non-participating RSU’s were 32,732 and 31,389 in the three months ended March 31, 2020 and 2019, respectively. Three Months Ended March 31, March 31, 2020 2019 Basic loss per common share Net loss $ (10,086) $ (297) Less loss allocated to participating securities - - Net loss allocated to common shareholders $ (10,086) $ (297) Weighted average common shares outstanding 22,813,256 22,729,084 $ (0.44) $ (0.01) Loss per common share assuming dilution Net loss $ (10,086) $ (297) Less loss allocated to participating securities - - Net loss allocated to common shareholders $ (10,086) $ (297) Weighted average common shares outstanding 22,813,256 22,729,084 Incremental shares applicable to non-participating RSUs - - Weighted average common shares assuming dilution 22,813,256 22,729,084 $ (0.44) $ (0.01) |
Employee Stock Plans
Employee Stock Plans | 3 Months Ended |
Mar. 31, 2020 | |
Employee Stock Plans | |
Employee Stock Plans | 14. Employee Stock Plans 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 Company’s Board of Directors approved an amendment and restatement of the 2010 Plan on March 5, 2014, contingent on stockholder approval of the performance goals under the 2010 Plan, and the amendment and restatement became effective upon stockholder approval of the performance goals at the 2014 annual meeting of stockholders held on April 30, 2014. 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. Equity awards 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 equity awards upon retirement. The retirement provision also stipulates that the employee remain employed by the Company for six months after the first day of the fiscal year of the grant. As the retirement provision does not qualify as a substantive service condition, the Company incurred $303 and $343 in the three months ended March 31, 2020 and 2019, respectively, in additional expense 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 awards 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. Performance Share Unit Awards The Company granted performance share units as performance-based awards under the 2010 Plan in the first quarters of 2020 and 2019 that are subject to performance conditions over a three year performance period beginning in the year of the grant. Upon meeting the prescribed performance conditions, employees will be issued shares which vest immediately at the end of the measurement period. For performance share grants in years prior to 2018, upon meeting the prescribed performance conditions, in the first quarter of the year subsequent to grant, employees were issued RSUs, a portion of which is 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 $53.50 . The Company recognized $484 and $294 of compensation expense related to the awards in the three months ended March 31, 2020 and 2019, respectively. The unrecognized compensation expense calculated under the fair value method for shares that were, as of March 31, 20120 expected to be earned through the requisite service period was approximately $2,813 and is expected to be recognized through 2023. Restricted Stock Unit Awards RSUs are granted to both non-employee directors and management. RSUs do not carry voting rights. While all non-employee director RSUs participate in dividend equivalents, there are two classes of management RSUs, one that participates in dividend equivalents, and a second that does not participate in dividend equivalents. 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. A summary of RSU activity for the three months ended March 31, 2020 is as follows: Weighted Weighted Average Average Remaining Grant Date Contractual Shares Fair value Term Unvested at December 31, 2019 35,676 $ 36.49 1.40 years Granted 40,941 $ 53.50 1.11 years Vested (27,158) $ 42.00 Cancelled and forfeited - $ 53.50 Unvested at March 31, 2020 49,459 $ 47.55 1.47 years Expected to vest in the future at March 31, 2020 49,459 $ 47.55 1.47 years The Company recognized $884 and $760 of compensation expense related to the RSU awards in the three months ended March 31, 2020 and 2019, respectively. The unrecognized compensation expense, calculated under the fair value method for shares that were, as of March 31, 2020, expected to be earned through the requisite service period was approximately $2,039 and is expected to be recognized through 2023. For 2020 and 2019 grants to non-employee directors, vesting occurs as of the grant date. 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, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 15. 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. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segments | |
Segments | 16. Segments The Company’s two reportable business segments are as follows: Work Truck Attachments. includes commercial snow and ice management attachments sold under the FISHER®, WESTERN® and SNOWEX® brands. This segment consists of our operations that manufacture and sell snow and ice control products. Work Truck Solutions. Separate financial information is available for the two operating segments. In addition, segment results include an allocation of all corporate costs to Work Truck Attachments and Work Truck Solutions. Segment performance is evaluated based on segment net sales and Adjusted EBITDA. Segment results include an allocation of all corporate costs. No single customer’s revenues amounted to 10% or more of the Company’s total revenue. Sales are primarily within the United States and substantially all assets are located within the United States. All intersegment sales are eliminated in consolidation. Sales between Work Truck Attachments and Work Truck Solutions reflect the Company’s intercompany pricing policy. The following table shows summarized financial information concerning the Company’s reportable segments: Three Months Ended Three Months Ended March 31, March 31, 2020 2019 Net sales Work Truck Attachments $ 19,120 $ 25,817 Work Truck Solutions 49,070 67,370 $ 68,190 $ 93,187 Adjusted EBITDA Work Truck Attachments $ (2,076) $ 2,284 Work Truck Solutions 361 6,735 $ (1,715) $ 9,019 Depreciation and amortization expense Work Truck Attachments $ 2,659 $ 2,538 Work Truck Solutions 2,235 2,270 $ 4,894 $ 4,808 Assets Work Truck Attachments $ 349,671 $ 330,731 Work Truck Solutions 342,865 345,288 $ 692,536 $ 676,019 Capital Expenditures Work Truck Attachments $ 1,858 $ 611 Work Truck Solutions 396 77 $ 2,254 $ 688 Adjusted EBITDA Work Truck Attachments $ (2,076) $ 2,284 Work Truck Solutions 361 6,735 Total Adjusted EBITDA $ (1,715) $ 9,019 Less items to reconcile Adjusted EBITDA to Loss before taxes: Interest expense - net 5,040 4,150 Depreciation expense 2,156 2,067 Amortization 2,738 2,741 Purchase accounting (17) (217) Stock based compensation 1,368 1,054 COVID-19 (1) 317 - Other charges 31 (16) Loss before taxes $ (13,348) $ (760) (1) - Reflects incremental costs incurred related to the COVID-19 crisis for the periods presented. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes | |
Income Taxes | 17. Income Taxes The Company’s effective tax benefit was (24.4%) and (60.9%) for the three months ended March 31, 2020 and 2019, respectively. The effective tax benefit for the three months ended March 31, 2020 was lower when compared to the same periods in the prior year due to a discrete tax benefit related to excess tax benefits from stock compensation of $93 and $312 in the three months ended March 31, 2020 and 2019, respectively. 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. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 3 Months Ended |
Mar. 31, 2020 | |
Changes in Accumulated Other Comprehensive Loss by Component | |
Changes in Accumulated Other Comprehensive Loss by Component | 18. Changes in Accumulated Other Comprehensive Loss by Component Changes to accumulated other comprehensive loss by component for the three months ended March 31, 2020 are as follows: Unrealized Net Loss Retiree on Interest Health Rate Benefit Swap Obligation Total Balance at December 31, 2019 $ (5,023) $ 2,209 $ (2,814) Other comprehensive loss before reclassifications (4,503) — (4,503) Amounts reclassified from accumulated other comprehensive loss: (1) 266 (57) 209 Balance at March 31, 2020 $ (9,260) $ 2,152 $ (7,108) (1) Amounts reclassified from accumulated other comprehensive loss: Amortization of Other Postretirement Benefit items: Actuarial gains (a) $ (77) Tax expense 20 Reclassification net of tax $ (57) Realized losses on interest rate swaps reclassified to interest expense $ 359 Tax benefit (93) Reclassification net of tax $ 266 (a) These components are included in the computation of benefit plan costs in Note 12. Changes to accumulated other comprehensive loss by component for the three months ended March 31, 2019 are as follows: Unrealized Net Loss Retiree on Interest Health Rate Benefit Pension Swap Obligation Obligation Total Balance at December 31, 2018 $ (1,530) $ 2,118 $ (6,637) $ (6,049) Other comprehensive gain before reclassifications (1,111) - - (1,111) Amounts reclassified from accumulated other comprehensive loss: (1) 36 (58) 110 89 Balance at March 31, 2019 $ (2,605) $ 2,060 $ (6,527) $ (7,071) (1) Amounts reclassified from accumulated other comprehensive loss: Amortization of Other Postretirement Benefit items: Actuarial gains (a) $ (78) Tax expense 20 Reclassification net of tax $ (58) Amortization of pension items: Actuarial losses (a) $ 149 Tax benefit (39) Reclassification net of tax $ 110 Realized losses on interest rate swaps reclassified to interest expense $ 49 Tax benefit (13) Reclassification net of tax $ 36 (a) These components are included in the computation of benefit plan costs in Note 12 . |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Basis of presentation | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which modifies the measurement of expected credit losses for financial instruments held at the reporting date. The standard is effective for annual periods beginning after December 15, 2019. The Company adopted this standard in the first quarter of fiscal 2020. Upon adoption, the Company recognized the cumulative effect of adopting this guidance as an adjustment to the opening balance of retained earnings of $557 , net of tax. The Company has identified and implemented changes to processes and controls to meet the standard’s updated reporting and disclosure requirements. See Note 3 for additional information. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The Company adopted this standard in the first quarter of fiscal 2020 specifically related to its interest rate swap, where the Company asserts the forecasted transaction using the existing reference rate associated with the swap remains probable. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition | |
Revenue by customer and timing recognition | Revenue by customer type was as follows: Three Months Ended March 31, 2020 Work Truck Attachments Work Truck Solutions Total Revenue Independent dealer $ 19,120 $ 28,052 $ 47,172 Government - 10,490 10,490 Fleet - 9,229 9,229 Other - 1,299 1,299 Total revenue $ 19,120 $ 49,070 $ 68,190 Three Months Ended March 31, 2019 Work Truck Attachments Work Truck Solutions Total Revenue Independent dealer $ 25,817 $ 33,043 $ 58,860 Government - 15,529 15,529 Fleet - 14,952 14,952 Other - 3,846 3,846 Total revenue $ 25,817 $ 67,370 $ 93,187 Revenue by timing of revenue recognition was as follows: Three Months Ended March 31, 2020 Work Truck Attachments Work Truck Solutions Total Revenue Point in time $ 19,120 $ 29,714 $ 48,834 Over time - 19,356 19,356 Total revenue $ 19,120 $ 49,070 $ 68,190 Three Months Ended March 31, 2019 Work Truck Attachments Work Truck Solutions Total Revenue Point in time $ 25,817 $ 42,023 $ 67,840 Over time - 25,347 25,347 Total revenue $ 25,817 $ 67,370 $ 93,187 |
Contract Balances | Three Months Ended March 31, 2020 Balance at Beginning of Period Additions Deductions Balance at End of Period Contract liabilities $ 2,187 $ 1,637 $ (1,789) $ 2,035 Three Months Ended March 31, 2019 Balance at Beginning of Period Additions Deductions Balance at End of Period Contract liabilities $ 2,006 $ 2,335 $ (2,041) $ 2,300 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Losses | |
Credit losses for trade accounts receivable | Balance at Adoption of Additions Changes to Balance at December 31, ASU 2016-13 charged to Writeoffs reserve, net March 31, 2019 earnings 2020 Three Months Ended March 31, 2020 Work Truck Attachments $ 600 $ 400 $ 100 $ - $ 51 $ 1,151 Work Truck Solutions 887 350 104 - (57) 1,284 Total $ 1,487 $ 750 $ 204 $ - $ (6) $ 2,435 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Assets: Other long-term assets (a) $ 6,767 $ 7,270 Total Assets $ 6,767 $ 7,270 Liabilities: Interest rate swaps (b) $ 13,876 $ 6,736 Long-term debt (c) 218,543 247,630 Earnout - Dejana (d) 2,000 2,000 Total Liabilities $ 234,419 $ 256,383 (a) Included in other assets is the cash surrender value of insurance policies on various individuals that are associated with the Company. The carrying amount of these insurance policies approximates their fair value and is considered Level 2 inputs. (b) 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. Interest rate swaps of $3,570 and $10,306 at March 31, 2020 are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively. Interest rate swaps of $1,522 and $5,214 at December 31, 2019 are included in Accrued expenses and other current liabilities and Other long-term liabilities, respectively. (c) 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 and deferred debt issuance costs, as disclosed on the face of the balance sheet. (d) Included in Other long-term liabilities in the amount of $2,000 at March 31, 2020 is the fair value of an obligation for a portion of the potential earnout incurred in conjunction with the acquisition of substantially all of the assets of Dejana Truck & Utility Equipment Company, Inc. and certain entities directly or indirectly owned by the Peter Paul Dejana Family Trust dated 12/31/98 (“Dejana”). Included in Other long-term liabilities in the amount of $2,200 at March 31, 2019 is the fair value of an obligation for a portion of the potential earnout incurred in conjunction with the acquisition of Dejana. Fair value is based upon Level 3 inputs of a real options approach where gross sales were simulated in a risk-neutral framework using Geometric Brownian Motion, a well-accepted model of stock price behavior that is used in option pricing models such as the Black-Scholes option pricing model, using key inputs of forecasted future sales and financial performance as well as a risk adjusted expected growth rate adjusted appropriately based on its correlation with the market. There were no adjustments to fair value or payments to former owners in either the three months ended March 31, 2020 or March 31, 2019. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Schedule of inventories | March 31, December 31, 2020 2019 Finished goods $ 65,530 $ 42,125 Work-in-process 11,187 6,906 Raw material and supplies 35,653 28,911 $ 112,370 $ 77,942 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, plant and equipment | |
Summary of property, plant and equipment | March 31, December 31, 2020 2019 Land $ 2,378 $ 2,378 Land improvements 4,541 4,541 Leasehold improvements 4,087 4,087 Buildings 28,938 28,715 Machinery and equipment 55,743 55,238 Furniture and fixtures 18,193 17,918 Mobile equipment and other 5,323 5,285 Construction-in-process 7,706 6,555 Total property, plant and equipment 126,909 124,717 Less accumulated depreciation (68,367) (66,273) Net property, plant and equipment $ 58,542 $ 58,444 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Summary of lease expense and supplemental cash flow information | Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Operating lease expense $ 1,311 $ 1,132 Short term lease cost $ 39 $ 100 Total lease cost $ 1,350 $ 1,232 Cash Flow Supplemental cash flow information related to leases is as follows: Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,303 $ 765 Non-cash lease expense - right-of-use assets $ 1,015 $ 785 Right-of-use assets obtained in exchange for operating lease obligations $ 321 $ 56 |
Summary of supplemental balance sheet information related to leases | March 31, 2020 December 31, 2019 Operating Leases Operating lease right-of-use assets $ 21,555 $ 22,557 Other current liabilities 3,770 3,822 Operating lease liabilities 18,010 18,981 Total operating lease liabilities $ 21,780 $ 22,803 Weighted Average Remaining Lease Term Operating leases 75 months 78 months Weighted Average Discount Rate Operating leases 5.31% 5.32% |
Summary of maturities of leases | Year ending December 31, Operating Leases 2020 (excluding the three months ended March 31, 2020) $ 3,704 2021 4,716 2022 4,307 2023 3,824 2024 3,194 Thereafter 6,146 Total Lease Payments 25,891 Less: imputed interest (4,111) Total $ 21,780 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Intangible Assets | |
Summary of other intangible assets | Gross Less Net Carrying Accumulated Carrying Amount Amortization Amount March 31, 2020 Indefinite-lived intangibles: Trademark and tradenames $ 77,600 $ - $ 77,600 Amortizable intangibles: Dealer network 80,000 64,000 16,000 Customer relationships 80,920 23,239 57,681 Patents 21,136 13,543 7,593 Noncompete agreements 8,640 8,252 388 Trademarks 5,459 3,737 1,722 Backlog 1,900 1,900 - License 20 20 - Amortizable intangibles, net 198,075 114,691 83,384 Total $ 275,675 $ 114,691 $ 160,984 Gross Less Net Carrying Accumulated Carrying Amount Amortization Amount December 31, 2019 Indefinite-lived intangibles: Trademark and tradenames $ 77,600 $ - $ 77,600 Amortizable intangibles: Dealer network 80,000 63,000 17,000 Customer relationships 80,920 21,914 59,006 Patents 21,136 13,229 7,907 Noncompete agreements 8,640 8,177 463 Trademarks 5,459 3,713 1,746 Backlog 1,900 1,900 - License 20 20 - Amortizable intangibles, net 198,075 111,953 86,122 Total $ 275,675 $ 111,953 $ 163,722 |
Schedule of estimated amortization expense | 2020 $ 8,199 2021 10,670 2022 10,520 2023 10,520 2024 7,520 2025 6,075 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt | |
Summary of long-term debt | l March 31, December 31, 2020 2019 Term Loan, net of debt discount of $683 and $781 at March 31, 2020 and December 31, 2019, respectively $ 225,302 $ 245,787 Less current maturities 1,938 22,143 Long-term debt before deferred financing costs 223,364 223,644 Deferred financing costs, net 1,356 1,563 Long-term debt, net $ 222,008 $ 222,081 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Expenses and Other Current Liabilities | |
Summary of accrued expenses and other current liabilities | March 31, December 31, 2020 2019 Payroll and related costs $ 5,633 $ 10,382 Employee benefits 6,154 6,097 Accrued warranty 3,202 3,941 Interest rate swaps 3,570 1,522 Other 3,576 4,554 $ 22,135 $ 26,496 |
Warranty Liability (Tables)
Warranty Liability (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Warranty Liability | |
Schedule of rollforward of Company's warranty liability | Three Months Ended March 31, March 31, 2020 2019 Balance at the beginning of the period $ 6,541 $ 6,174 Warranty provision 549 561 Claims paid/settlements (1,888) (1,644) Balance at the end of the period $ 5,202 $ 5,091 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Pension plan | |
Employee retirement plans | |
Schedule of components of net periodic pension or other postretirement benefit cost | March 31, 2019 Component of net periodic pension cost: Service cost $ - Interest cost 410 Expected return on plan assets (294) Amortization of net loss 149 Net periodic pension cost $ 265 |
Other postretirement benefit cost | |
Employee retirement plans | |
Schedule of components of net periodic pension or other postretirement benefit cost | Three Months Ended March 31, March 31, 2020 2019 Component of periodic other postretirement benefit cost: Service cost $ 37 $ 37 Interest cost 47 63 Amortization of net gain (77) (78) Net periodic other postretirement benefit cost $ 7 $ 22 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings per Share | |
Schedule of computation of basic and diluted earnings (loss) per share | Three Months Ended March 31, March 31, 2020 2019 Basic loss per common share Net loss $ (10,086) $ (297) Less loss allocated to participating securities - - Net loss allocated to common shareholders $ (10,086) $ (297) Weighted average common shares outstanding 22,813,256 22,729,084 $ (0.44) $ (0.01) Loss per common share assuming dilution Net loss $ (10,086) $ (297) Less loss allocated to participating securities - - Net loss allocated to common shareholders $ (10,086) $ (297) Weighted average common shares outstanding 22,813,256 22,729,084 Incremental shares applicable to non-participating RSUs - - Weighted average common shares assuming dilution 22,813,256 22,729,084 $ (0.44) $ (0.01) |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Employee Stock Plans | |
Summary of RSU activity | Weighted Weighted Average Average Remaining Grant Date Contractual Shares Fair value Term Unvested at December 31, 2019 35,676 $ 36.49 1.40 years Granted 40,941 $ 53.50 1.11 years Vested (27,158) $ 42.00 Cancelled and forfeited - $ 53.50 Unvested at March 31, 2020 49,459 $ 47.55 1.47 years Expected to vest in the future at March 31, 2020 49,459 $ 47.55 1.47 years |
Segments (Table)
Segments (Table) | 3 Months Ended |
Mar. 31, 2020 | |
Segments | |
Schedule of assets and profit/loss of the segments | Three Months Ended Three Months Ended March 31, March 31, 2020 2019 Net sales Work Truck Attachments $ 19,120 $ 25,817 Work Truck Solutions 49,070 67,370 $ 68,190 $ 93,187 Adjusted EBITDA Work Truck Attachments $ (2,076) $ 2,284 Work Truck Solutions 361 6,735 $ (1,715) $ 9,019 Depreciation and amortization expense Work Truck Attachments $ 2,659 $ 2,538 Work Truck Solutions 2,235 2,270 $ 4,894 $ 4,808 Assets Work Truck Attachments $ 349,671 $ 330,731 Work Truck Solutions 342,865 345,288 $ 692,536 $ 676,019 Capital Expenditures Work Truck Attachments $ 1,858 $ 611 Work Truck Solutions 396 77 $ 2,254 $ 688 |
Schedule of Reconciliation of Operating Profit (Loss) | Adjusted EBITDA Work Truck Attachments $ (2,076) $ 2,284 Work Truck Solutions 361 6,735 Total Adjusted EBITDA $ (1,715) $ 9,019 Less items to reconcile Adjusted EBITDA to Loss before taxes: Interest expense - net 5,040 4,150 Depreciation expense 2,156 2,067 Amortization 2,738 2,741 Purchase accounting (17) (217) Stock based compensation 1,368 1,054 COVID-19 (1) 317 - Other charges 31 (16) Loss before taxes $ (13,348) $ (760) (1) - Reflects incremental costs incurred related to the COVID-19 crisis for the periods presented. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Changes in Accumulated Other Comprehensive Loss by Component | |
Schedule of changes to accumulated other comprehensive loss by component | Changes to accumulated other comprehensive loss by component for the three months ended March 31, 2020 are as follows: Unrealized Net Loss Retiree on Interest Health Rate Benefit Swap Obligation Total Balance at December 31, 2019 $ (5,023) $ 2,209 $ (2,814) Other comprehensive loss before reclassifications (4,503) — (4,503) Amounts reclassified from accumulated other comprehensive loss: (1) 266 (57) 209 Balance at March 31, 2020 $ (9,260) $ 2,152 $ (7,108) (1) Amounts reclassified from accumulated other comprehensive loss: Amortization of Other Postretirement Benefit items: Actuarial gains (a) $ (77) Tax expense 20 Reclassification net of tax $ (57) Realized losses on interest rate swaps reclassified to interest expense $ 359 Tax benefit (93) Reclassification net of tax $ 266 (a) These components are included in the computation of benefit plan costs in Note 12. Changes to accumulated other comprehensive loss by component for the three months ended March 31, 2019 are as follows: Unrealized Net Loss Retiree on Interest Health Rate Benefit Pension Swap Obligation Obligation Total Balance at December 31, 2018 $ (1,530) $ 2,118 $ (6,637) $ (6,049) Other comprehensive gain before reclassifications (1,111) - - (1,111) Amounts reclassified from accumulated other comprehensive loss: (1) 36 (58) 110 89 Balance at March 31, 2019 $ (2,605) $ 2,060 $ (6,527) $ (7,071) (1) Amounts reclassified from accumulated other comprehensive loss: Amortization of Other Postretirement Benefit items: Actuarial gains (a) $ (78) Tax expense 20 Reclassification net of tax $ (58) Amortization of pension items: Actuarial losses (a) $ 149 Tax benefit (39) Reclassification net of tax $ 110 Realized losses on interest rate swaps reclassified to interest expense $ 49 Tax benefit (13) Reclassification net of tax $ 36 (a) These components are included in the computation of benefit plan costs in Note 12 . |
Basis of presentation (Details)
Basis of presentation (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Interim Consolidated Financial Information | ||
Number of operating segments | segment | 2 | |
Amount of total benefit | $ 1,152 | |
Retained earnings | 143,618 | $ 160,748 |
Restatement adjustment | ASU 2016-13 | ||
Interim Consolidated Financial Information | ||
Retained earnings | $ 557 |
Revenue Recognition (Revenue by
Revenue Recognition (Revenue by customer and timing recognitions) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Retained Earnings | $ 143,618 | $ 160,748 | |
Net sales | 68,190 | $ 93,187 | |
Independent dealer | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 47,172 | 58,860 | |
Government | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 10,490 | 15,529 | |
Fleet | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 9,229 | 14,952 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,299 | 3,846 | |
Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 48,834 | 67,840 | |
Over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 19,356 | 25,347 | |
Work Truck Attachments | |||
Disaggregation of Revenue [Line Items] | |||
Number of revenue streams | item | 2 | ||
Net sales | $ 19,120 | 25,817 | |
Work Truck Attachments | Independent dealer | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 19,120 | 25,817 | |
Work Truck Attachments | Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 19,120 | 25,817 | |
Work Truck Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Number of revenue streams | item | 4 | ||
Net sales | $ 49,070 | 67,370 | |
Work Truck Solutions | Independent dealer | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 28,052 | 33,043 | |
Work Truck Solutions | Government | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 10,490 | 15,529 | |
Work Truck Solutions | Fleet | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 9,229 | 14,952 | |
Work Truck Solutions | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,299 | 3,846 | |
Work Truck Solutions | Point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 29,714 | 42,023 | |
Work Truck Solutions | Over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 19,356 | 25,347 | |
Effect of Change Higher/(Lower) | ASC 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 145 | ||
Effect of Change Higher/(Lower) | ASC 2014-09 | Work Truck Solutions | Over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 106 |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in contract liabilities | ||
Balance at Beginning of Period | $ 2,187 | $ 2,006 |
Additions | 1,637 | 2,335 |
Deductions | (1,789) | (2,041) |
Balance at End of Period | 2,035 | 2,300 |
Contract assets | 0 | 0 |
Revenue recognized included in contract liabilities at the beginning of the period | $ 467 | $ 372 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Balance | $ 1,487 | ||
Additions charged to earnings | 204 | $ 107 | |
Changes to reserve, net | (6) | ||
Balance | 2,435 | ||
Work Truck Attachments segment | |||
Balance | 600 | ||
Additions charged to earnings | 100 | ||
Changes to reserve, net | 51 | ||
Balance | 1,151 | ||
Work Truck Solutions | |||
Balance | 887 | ||
Additions charged to earnings | 104 | ||
Changes to reserve, net | (57) | ||
Balance | $ 1,284 | ||
ASU 2016-13 | Restatement adjustment | |||
Adoption | $ 750 | ||
ASU 2016-13 | Restatement adjustment | Work Truck Attachments segment | |||
Adoption | 400 | ||
ASU 2016-13 | Restatement adjustment | Work Truck Solutions | |||
Adoption | $ 350 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Other long-term assets | $ 6,767 | $ 7,270 |
Total Assets | 6,767 | 7,270 |
Liabilities: | ||
Interest rate swaps | 13,876 | 6,736 |
Long term debt | 218,543 | 247,630 |
Earnout- Dejana | 2,000 | 2,000 |
Total Liabilities | $ 234,419 | $ 256,383 |
Fair Value - Fair Value Liabili
Fair Value - Fair Value Liability Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Reconciliation of liability related to earnout | |||
Adjustments to fair value | $ 0 | $ 0 | |
Payments to former owners | 0 | 0 | |
Recurring | Dejana | |||
Fair value liability reconciliation | |||
Derivative Liability, Noncurrent | $ 2,200 | ||
Recurring | Level 2 | |||
Fair value liability reconciliation | |||
Derivative Liability, Current | 3,570 | $ 1,522 | |
Derivative Liability, Noncurrent | 10,306 | $ 5,214 | |
Recurring | Level 3 | Dejana | |||
Reconciliation of liability related to earnout | |||
Earnout, portion in other long term liabilities | $ 2,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories | ||
Finished goods | $ 65,530 | $ 42,125 |
Work-in-process | 11,187 | 6,906 |
Raw material and supplies | 35,653 | 28,911 |
Inventories | 112,370 | 77,942 |
Inventories - truck chassis floor plan | $ 8,774 | $ 6,539 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment | ||
Total property, plant and equipment | $ 126,909 | $ 124,717 |
Less accumulated depreciation | (68,367) | (66,273) |
Net property, plant and equipment | 58,542 | 58,444 |
Land | ||
Property, plant and equipment | ||
Total property, plant and equipment | 2,378 | 2,378 |
Land improvements | ||
Property, plant and equipment | ||
Total property, plant and equipment | 4,541 | 4,541 |
Leasehold Improvements | ||
Property, plant and equipment | ||
Total property, plant and equipment | 4,087 | 4,087 |
Buildings | ||
Property, plant and equipment | ||
Total property, plant and equipment | 28,938 | 28,715 |
Machinery and equipment | ||
Property, plant and equipment | ||
Total property, plant and equipment | 55,743 | 55,238 |
Furniture and fixtures | ||
Property, plant and equipment | ||
Total property, plant and equipment | 18,193 | 17,918 |
Mobile equipment and other | ||
Property, plant and equipment | ||
Total property, plant and equipment | 5,323 | 5,285 |
Construction-in-process | ||
Property, plant and equipment | ||
Total property, plant and equipment | $ 7,706 | $ 6,555 |
Leases Narrative (Details)
Leases Narrative (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Options to extend | true |
Renewal term | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 16 years |
Leases - Components of Lease an
Leases - Components of Lease and supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease Expense | ||
Operating lease expense | $ 1,311 | $ 1,132 |
Short term lease cost | 39 | 100 |
Total lease cost | 1,350 | 1,232 |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,303 | 765 |
Non-cash lease expense - right-of-use assets | 1,015 | 785 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 321 | $ 56 |
Leases - Supplemental Balance s
Leases - Supplemental Balance sheet information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Supplemental balance sheet information related to leases | ||
Operating lease - right of use asset | $ 21,555 | $ 22,557 |
Other current liabilities | 3,770 | 3,822 |
Operating lease liabilities | 18,010 | 18,981 |
Total operating lease liabilities | $ 21,780 | $ 22,803 |
Weighted Average Remaining Lease Term - Operating leases | 75 months | 78 months |
Weighted Average Discount Rate - Operating leases | 5.31% | 5.32% |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Maturities of leases | ||
2020 (excluding the three months ended March 31, 2020) | $ 3,704 | |
2021 | 4,716 | |
2022 | 4,307 | |
2023 | 3,824 | |
2024 | 3,194 | |
Thereafter | 6,146 | |
Total Lease Payments | 25,891 | |
Less: imputed interest | (4,111) | |
Total operating lease liabilities | $ 21,780 | $ 22,803 |
Other Intangible Asset - Summar
Other Intangible Asset - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | $ 198,075 | $ 198,075 |
Amortizable intangibles, accumulated amortization | 114,691 | 111,953 |
Finite-Lived Intangible Assets, Net, Total | 83,384 | 86,122 |
Intangible Assets, Gross (Excluding Goodwill), Total | 275,675 | 275,675 |
Net Carrying Amount | 160,984 | 163,722 |
Dealer network | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 80,000 | 80,000 |
Amortizable intangibles, accumulated amortization | 64,000 | 63,000 |
Finite-Lived Intangible Assets, Net, Total | 16,000 | 17,000 |
Customer relationships | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 80,920 | 80,920 |
Amortizable intangibles, accumulated amortization | 23,239 | 21,914 |
Finite-Lived Intangible Assets, Net, Total | 57,681 | 59,006 |
Patents | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 21,136 | 21,136 |
Amortizable intangibles, accumulated amortization | 13,543 | 13,229 |
Finite-Lived Intangible Assets, Net, Total | 7,593 | 7,907 |
Noncompete agreements | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 8,640 | 8,640 |
Amortizable intangibles, accumulated amortization | 8,252 | 8,177 |
Finite-Lived Intangible Assets, Net, Total | 388 | 463 |
Trademarks | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 5,459 | 5,459 |
Amortizable intangibles, accumulated amortization | 3,737 | 3,713 |
Finite-Lived Intangible Assets, Net, Total | 1,722 | 1,746 |
Backlog | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 1,900 | 1,900 |
Amortizable intangibles, accumulated amortization | 1,900 | 1,900 |
License | ||
Other intangible assets | ||
Amortizable intangibles, gross carrying amount | 20 | 20 |
Amortizable intangibles, accumulated amortization | 20 | 20 |
Trademark and tradenames | ||
Other intangible assets | ||
Indefinite-lived intangibles, net carrying amount | $ 77,600 | $ 77,600 |
Other Intangible Asset - Estima
Other Intangible Asset - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Intangible Assets | ||
Intangibles amortization | $ 2,738 | $ 2,741 |
Estimated amortization expense for the next five years | ||
2020 | 8,199 | |
2021 | 10,670 | |
2022 | 10,520 | |
2023 | 10,520 | |
2024 | 7,520 | |
2025 | $ 6,075 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term debt | |||
Less current maturities | $ 1,938 | $ 22,143 | |
Long-term debt, less current maturities | 222,008 | 222,081 | |
Deferred financing costs, net | 1,356 | 1,563 | |
Long-term debt, net | 222,008 | 222,081 | |
Long-term debt, additional disclosure | |||
Inventories - truck chassis floor plan | 8,774 | 6,539 | |
Term loan facility | |||
Long-term debt | |||
Term Loan, net of debt discount of $683 and $781 at March 31, 2020 and December 31, 2019, respectively | 225,302 | 245,787 | |
Less current maturities | 1,938 | 22,143 | |
Long-term debt, less current maturities | 223,364 | 223,644 | |
Long-term debt, additional disclosure | |||
Unamortized discount on issuance of debt | 683 | 781 | |
Outstanding borrowings | 225,302 | 245,787 | |
Revolving credit facility | |||
Long-term debt, additional disclosure | |||
Outstanding borrowings | $ 30,000 | 0 | |
Senior credit facilities | Term loan facility | |||
Long-term debt, additional disclosure | |||
Percentage of net cash proceeds of certain asset sales, certain insurance or condemnation events, requirement for additional principal prepayments | 100.00% | ||
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 | 0.00% | ||
Voluntary payment | $ 20,000 | ||
Senior credit facilities | Term loan facility | Maximum | |||
Long-term debt, additional disclosure | |||
Period before end of the fiscal year, for additional principal prepayments of debt, from excess cash flow | 150 days | ||
Senior credit facilities | Revolving credit facility | |||
Long-term debt, additional disclosure | |||
Remaining borrowing availability | $ 59,160 | $ 99,352 |
Long-Term Debt - Swaps (Details
Long-Term Debt - Swaps (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Jun. 13, 2019USD ($) | |
Derivative [Line Items] | |||
Amount expected to be amortized from AOCI | $ 2,991 | ||
Mark-to-market adjustments on derivatives not classified as hedges | 1,413 | ||
Inventories - truck chassis floor plan | 8,774 | $ 6,539 | |
Interest rate swap | |||
Derivative [Line Items] | |||
Negative fair value | $ 13,876 | 6,736 | |
Number of financial institutions for which the entity is exposed to counterparty credit risk | item | 1 | ||
Interest rate swap | Accrued Expenses and Other Current Liabilities | |||
Derivative [Line Items] | |||
Negative fair value | $ 3,570 | 1,522 | |
Interest rate swap | Other Noncurrent Liabilities | |||
Derivative [Line Items] | |||
Negative fair value | $ 10,306 | $ 5,214 | |
Interest rate swap effective May 31,2019 through May 31,2024 [member] | |||
Derivative [Line Items] | |||
Notional amount | $ 175,000 | ||
Interest rate | 2.495% | ||
Interest rate swap effective May 31,2019 through May 31,2024 [member] | London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
LIBOR floor (as a percent) | 1.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Expenses and Other Current Liabilities | ||
Payroll and related costs | $ 5,633 | $ 10,382 |
Employee benefits | 6,154 | 6,097 |
Accrued warranty | 3,202 | 3,941 |
Interest rate swaps | 3,570 | 1,522 |
Other | 3,576 | 4,554 |
Accrued expenses and other current liabilities | $ 22,135 | $ 26,496 |
Warranty Liability (Details)
Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Warranty liability | ||||
Period of warranty history used in estimating warranty costs | 5 years | |||
Other long-term liabilities | $ 23,230 | $ 19,818 | ||
Accrued expenses and other current liabilities | 22,135 | 26,496 | ||
warranty reserve | $ 6,541 | $ 5,091 | 5,202 | 6,541 |
Company's warranty liability: | ||||
Balance at the beginning of the period | 6,541 | 6,174 | ||
Warranty provision | 549 | 561 | ||
Claims paid/settlements | (1,888) | (1,644) | ||
Balance at the end of the period | $ 5,202 | $ 5,091 | ||
Warranty Reserves | ||||
Warranty liability | ||||
Other long-term liabilities | 2,000 | 2,600 | ||
Accrued expenses and other current liabilities | $ 3,202 | $ 3,941 | ||
Snow and ice control equipment | ||||
Warranty liability | ||||
Warranty period | 2 years | |||
Parts and accessories | ||||
Warranty liability | ||||
Warranty period | 1 year | |||
Certain snowplows | ||||
Warranty liability | ||||
Warranty period | 1 year |
Employee Retirement Plans (Deta
Employee Retirement Plans (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2019 | Oct. 31, 2019 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Pension Plan Termination Loss, after Tax and Reclassification Adjustment, Attributable to Parent | $ 6,380 | ||
Douglas Dynamics LLC Pension Plan For Hourly Employees | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension funding contributions made | $ 3,245 | ||
Defined Benefit Plan, Annuities Purchased Amount | $ 4,767 | ||
Douglas Dynamics LLC Salaried Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension funding contributions made | $ 12,476 | ||
Defined Benefit Plan, Annuities Purchased Amount | $ 20,044 |
Employee Retirement Plans - Rec
Employee Retirement Plans - Reconciliations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plan | |||||
Component of net periodic cost: | |||||
Interest cost | $ 410 | ||||
Expected return on plan assets | (294) | ||||
Amortization of net (gain) loss | 149 | ||||
Net periodic pension cost | 265 | ||||
Defined Benefit Plan Termination, Payments by Employer | $ 464 | ||||
Employer contributions during the period | $ 0 | ||||
Defined Benefit Plan Employer Discretionary Contribution Amount | $ 7,000 | ||||
Other postretirement benefit cost | |||||
Component of net periodic cost: | |||||
Service cost | $ 37 | 37 | |||
Interest cost | 47 | 63 | |||
Amortization of net (gain) loss | (77) | (78) | |||
Net periodic pension cost | $ 7 | $ 22 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic earnings per common share | ||
Net loss | $ (10,086) | $ (297) |
Net loss allocated to common shareholders | $ (10,086) | $ (297) |
Weighted average common shares outstanding | 22,813,256 | 22,729,084 |
Basic | $ (0.44) | $ (0.01) |
Earnings per common share assuming dilution | ||
Net loss | $ (10,086) | $ (297) |
Net loss allocated to common shareholders | $ (10,086) | $ (297) |
Weighted average common shares outstanding | 22,813,256 | 22,729,084 |
Weighted average common shares assuming dilution | 22,813,256 | 22,729,084 |
Diluted earnings per share | $ (0.44) | $ (0.01) |
Restricted stock units | ||
Earnings per common share assuming dilution | ||
Potentially dilutive non-participating securities | 32,732 | 31,389 |
Employee Stock Plans - Summary
Employee Stock Plans - Summary of Restricted Stock Awards and Units (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
2010 Plan | Common Stock | ||
Stock-based compensation | ||
Maximum number of shares of common stock that may be issued | 2,130,000 | |
Restricted stock units | ||
Shares | ||
Unvested at the beginning of the period (in shares) | 35,676 | |
Granted (in shares) | 40,941 | |
Vested (in shares) | (27,158) | |
Unvested at the end of the period (in shares) | 49,459 | 35,676 |
Expected to vest in the future, at the end of the period (in shares) | 49,459 | |
Weighted Average Grant Date Fair Value | ||
Unvested at the beginning of the period (in dollars per share) | $ 36.49 | |
Granted (in dollars per share) | 53.50 | |
Vested (in dollars per share) | 42 | |
Cancelled and forfeited (in dollars per share) | 53.50 | |
Unvested at the end of the period (in dollars per share) | 47.55 | $ 36.49 |
Expected to vest in the future, at the end of the period (in dollars per share) | $ 47.55 | |
Weighted Average Remaining Contractual Term | ||
Unvested at the beginning of the period | 1 year 5 months 19 days | 1 year 4 months 24 days |
Granted | 1 year 1 month 9 days | |
Unvested at the end of the period | 1 year 5 months 19 days | 1 year 4 months 24 days |
Expected to vest in future, at the end of the period | 1 year 5 months 19 days |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)item$ / sharesshares | Mar. 31, 2019USD ($) | |
Additional Employee Stock Plans Information | ||
Income tax benefit | $ (3,262) | $ (463) |
Performance Share Unit Awards | 2010 Plan | ||
Additional Employee Stock Plans Information | ||
Vesting period of awards | 2 years | |
Compensation expenses recognized | $ 484 | 294 |
Unrecognized compensation expense, net of expected forfeitures, calculated under the fair value method for shares expected to vest | $ 2,813 | |
Performance period | 3 years | |
Restricted stock units | ||
Additional Employee Stock Plans Information | ||
fair value per share of the awards | $ / shares | $ 53.50 | |
Compensation expenses recognized | $ 884 | 760 |
Restricted stock units | Non-employee director | ||
Additional Employee Stock Plans Information | ||
Number of shares issued upon exercise of units other than options | shares | 1 | |
Restricted stock units | 2010 Plan | ||
Additional Employee Stock Plans Information | ||
Unrecognized compensation expense, net of expected forfeitures, calculated under the fair value method for shares expected to vest | $ 2,039 | |
Minimum age of employee, attaining which awards are continued to be vested upon retirement | item | 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 | item | 55 | |
Maximum period following a termination of service in which the share-based award will be settled | 2 months 15 days | |
Restricted stock units | 2010 Plan | Management | ||
Additional Employee Stock Plans Information | ||
Accelerated stock based compensation expense | $ 303 | $ 343 |
Restricted stock units | 2010 Plan | Common Stock | ||
Additional Employee Stock Plans Information | ||
Number of shares issued upon exercise of units other than options | shares | 1 |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segmentcustomer | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Number of operating segments | segment | 2 | ||
Number of customers | customer | 0 | ||
Net sales | $ 68,190 | $ 93,187 | |
Adjusted EBITDA | (1,715) | 9,019 | |
Depreciation and amortization expense | 4,894 | 4,808 | |
Assets | 692,536 | 676,019 | $ 705,695 |
Capital Expenditures | 2,304 | 769 | |
Capital Expenditures including adjustments to accruals and payables | 2,254 | 688 | |
Interest expense, net | 5,040 | 4,150 | |
Depreciation expense | 2,156 | 2,067 | |
Amortization | 2,738 | 2,741 | |
Purchase accounting | (17) | (217) | |
Share-based Compensation | 1,368 | 1,054 | |
COVID-19 | 317 | ||
Other charges | 31 | (16) | |
Loss before taxes | (13,348) | (760) | |
Work Truck Attachments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 19,120 | 25,817 | |
Adjusted EBITDA | (2,076) | 2,284 | |
Work Truck Solutions | |||
Segment Reporting Information [Line Items] | |||
Net sales | 49,070 | 67,370 | |
Adjusted EBITDA | 361 | 6,735 | |
Operating segment | Work Truck Attachments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 19,120 | 25,817 | |
Adjusted EBITDA | (2,076) | 2,284 | |
Depreciation and amortization expense | 2,659 | 2,538 | |
Assets | 349,671 | 330,731 | |
Capital Expenditures | 1,858 | 611 | |
Operating segment | Work Truck Solutions | |||
Segment Reporting Information [Line Items] | |||
Net sales | 49,070 | 67,370 | |
Adjusted EBITDA | 361 | 6,735 | |
Depreciation and amortization expense | 2,235 | 2,270 | |
Assets | 342,865 | 345,288 | |
Capital Expenditures | $ 396 | $ 77 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes | ||
Effective tax rate (as a percent) | (24.40%) | (60.90%) |
Excess tax benefits from stock compensation | $ 93 | $ 312 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss by Component - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes to accumulated other comprehensive loss by component | ||
Balance at the beginning of the period | $ (2,814) | $ (6,049) |
Other comprehensive gain (loss) before reclassifications | (4,503) | (1,111) |
Amounts reclassified from accumulated other comprehensive loss | 209 | 89 |
Impact due to adoption | (557) | |
Balance at the end of the period | (7,108) | (7,071) |
Unrealized Net Loss on Interest Rate Swap | ||
Changes to accumulated other comprehensive loss by component | ||
Balance at the beginning of the period | (5,023) | (1,530) |
Other comprehensive gain (loss) before reclassifications | (4,503) | (1,111) |
Amounts reclassified from accumulated other comprehensive loss | 266 | 36 |
Balance at the end of the period | (9,260) | (2,605) |
Other Postretirement Benefit Liability | ||
Changes to accumulated other comprehensive loss by component | ||
Balance at the beginning of the period | 2,209 | 2,118 |
Amounts reclassified from accumulated other comprehensive loss | (57) | (58) |
Balance at the end of the period | $ 2,152 | 2,060 |
Pension Liability | ||
Changes to accumulated other comprehensive loss by component | ||
Balance at the beginning of the period | (6,637) | |
Amounts reclassified from accumulated other comprehensive loss | 110 | |
Balance at the end of the period | $ (6,527) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amounts reclassified from accumulated other comprehensive loss: | ||
Interest expense, net | $ 5,040 | $ 4,150 |
Tax expense (benefit) | (3,262) | (463) |
Reclassification net of tax | 10,086 | 297 |
Interest rate swap | Amount reclassified from accumulated other comprehensive income | ||
Amounts reclassified from accumulated other comprehensive loss: | ||
Interest expense, net | 49 | |
Tax expense (benefit) | (13) | |
Reclassification net of tax | 36 | |
Other Postretirement Benefit Liability | Amount reclassified from accumulated other comprehensive income | ||
Amounts reclassified from accumulated other comprehensive loss: | ||
Actuarial (gains) losses | (77) | (78) |
Tax expense (benefit) | 20 | 20 |
Reclassification net of tax | (57) | (58) |
Pension Liability | Amount reclassified from accumulated other comprehensive income | ||
Amounts reclassified from accumulated other comprehensive loss: | ||
Actuarial (gains) losses | 149 | |
Tax expense (benefit) | (39) | |
Reclassification net of tax | $ 110 | |
Unrealized Net Loss on Interest Rate Swap | Interest rate swap | ||
Amounts reclassified from accumulated other comprehensive loss: | ||
Interest expense, net | 359 | |
Tax expense (benefit) | (93) | |
Reclassification net of tax | $ 266 |