Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Mayville Engineering Company, Inc. | |
Entity Central Index Key | 0001766368 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | MEC | |
Security Exchange Name | NYSE | |
Entity File Number | 001-38894 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0944729 | |
Entity Address, Address Line One | 715 South Street | |
Entity Address, City or Town | Mayville | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53050 | |
City Area Code | 920 | |
Local Phone Number | 387-4500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 20,436,719 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 127 | $ 121 |
Receivables, net of allowances for doubtful accounts of $1,346 at September 30, 2021 and $1,298 at December 31, 2020 | 58,841 | 42,080 |
Inventories, net | 62,914 | 41,366 |
Tooling in progress | 3,436 | 3,126 |
Prepaid expenses and other current assets | 3,066 | 2,555 |
Total current assets | 128,384 | 89,248 |
Property, plant and equipment, net | 120,150 | 106,688 |
Assets held for sale | 3,552 | |
Goodwill | 71,535 | 71,535 |
Intangible assets-net | 53,437 | 61,467 |
Capital lease, net | 2,115 | 2,581 |
Other long-term assets | 3,595 | 3,462 |
Total | 379,216 | 338,533 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 49,814 | 33,495 |
Current portion of capital lease obligation | 648 | 626 |
Accrued liabilities: | ||
Salaries, wages, and payroll taxes | 10,459 | 10,190 |
Profit sharing and bonus | 4,538 | 3,089 |
Other current liabilities | 6,924 | 5,340 |
Total current liabilities | 72,383 | 52,740 |
Bank revolving credit notes | 54,718 | 45,257 |
Capital lease obligation, less current maturities | 1,572 | 2,061 |
Deferred compensation and long-term incentive, less current portion | 25,373 | 25,631 |
Deferred income tax liability | 12,928 | 11,887 |
Other long-term liabilities | 100 | 100 |
Total liabilities | 167,074 | 137,676 |
Common shares, no par value, 75,000,000 authorized, 21,386,382 shares issued at September 30, 2021 and 21,093,035 at December 31, 2020 | ||
Additional paid-in-capital | 195,994 | 190,793 |
Retained earnings | 21,110 | 14,998 |
Treasury shares at cost, 949,663 shares at September 30, 2021 and 1,033,645 at December 31, 2020 | (4,962) | (4,934) |
Total shareholders’ equity | 212,142 | 200,857 |
Total | $ 379,216 | $ 338,533 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Receivables, net of allowances for doubtful accounts | $ 1,346 | $ 1,298 |
Common Stock, No Par Value | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares, Issued | 21,386,382 | 21,093,035 |
Treasury stock at cost | 949,663 | 1,033,645 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net sales | $ 109,018 | $ 91,075 | $ 341,851 | $ 262,262 |
Cost of sales | 98,109 | 81,340 | 299,885 | 241,838 |
Amortization of intangibles | 2,677 | 2,677 | 8,030 | 8,030 |
Profit sharing, bonuses, and deferred compensation | 1,939 | 2,288 | 8,013 | 4,807 |
Employee stock ownership plan expense | 124 | 825 | ||
Other selling, general and administrative expenses | 5,305 | 4,490 | 15,365 | 14,642 |
Income (loss) from operations | 864 | 280 | 9,733 | (7,055) |
Interest expense | (526) | (647) | (1,562) | (2,110) |
Income (loss) before taxes | 338 | (367) | 8,171 | (9,165) |
Income tax expense (benefit) | 63 | 733 | 2,059 | (1,101) |
Net income (loss) and comprehensive income (loss) | $ 275 | $ (1,100) | $ 6,112 | $ (8,064) |
Earnings (loss) per share: | ||||
Basic | $ 0.01 | $ (0.05) | $ 0.30 | $ (0.41) |
Diluted | $ 0.01 | $ (0.05) | $ 0.29 | $ (0.41) |
Weighted average shares outstanding: | ||||
Basic | 20,520,985 | 20,077,039 | 20,385,732 | 19,838,701 |
Diluted | 20,961,470 | 20,077,039 | 20,812,382 | 19,838,701 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 6,112 | $ (8,064) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 15,520 | 16,304 |
Amortization | 8,030 | 8,030 |
Stock-based compensation expense | 3,771 | 3,719 |
Allowance for doubtful accounts | 48 | 767 |
Inventory excess and obsolescence reserve | (511) | 279 |
Loss (gain) on disposal of property, plant and equipment | (1,311) | 688 |
Deferred compensation and long-term incentive | (258) | 234 |
Other non-cash adjustments | 236 | 262 |
Changes in operating assets and liabilities – net of effects of acquisition: | ||
Accounts receivable | (16,809) | (9,233) |
Inventories | (21,037) | 7,449 |
Tooling in progress | (310) | (2,053) |
Prepaids and other current assets | (989) | 338 |
Accounts payable | 13,819 | (4,016) |
Deferred income taxes | 1,152 | (1,189) |
Accrued liabilities, excluding long-term incentive | 5,330 | 5,776 |
Net cash provided by operating activities | 12,793 | 19,291 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (26,588) | (5,354) |
Proceeds from sale of property, plant and equipment | 5,348 | 1,920 |
Net cash used in investing activities | (21,240) | (3,434) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from bank revolving credit notes | 276,568 | 209,857 |
Payments on bank revolving credit notes | (267,108) | (222,443) |
Deferred financing costs | (206) | |
Purchase of treasury stock | (653) | (2,510) |
Payments on capital leases | (467) | (446) |
Proceeds from the exercise of stock options | 139 | |
Other financing activities | (26) | |
Net cash provided by (used in) financing activities | 8,453 | (15,748) |
Net increase (decrease) in cash and cash equivalents | 6 | 109 |
Cash and cash equivalents at beginning of period | 121 | 1 |
Cash and cash equivalents at end of period | 127 | 110 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,580 | 2,366 |
Cash paid for taxes | 1,068 | 351 |
Non-cash construction in progress in accounts payable | $ 4,059 | $ 201 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Treasury Shares [Member] | Retained Earnings [Member] |
Beginning, Balance at Dec. 31, 2019 | $ 200,895 | $ 183,687 | $ (4,882) | $ 22,090 |
Net income (loss) | 50 | 50 | ||
Purchase of treasury stock | (2,435) | (2,435) | ||
ESOP Contribution | 4,831 | 2,374 | 2,457 | |
Stock-based compensation | 1,582 | 1,582 | ||
Ending, Balance at Mar. 31, 2020 | 204,923 | 187,643 | (4,860) | 22,140 |
Beginning, Balance at Dec. 31, 2019 | 200,895 | 183,687 | (4,882) | 22,090 |
Net income (loss) | (8,064) | |||
Ending, Balance at Sep. 30, 2020 | 198,872 | 189,780 | (4,934) | 14,026 |
Beginning, Balance at Mar. 31, 2020 | 204,923 | 187,643 | (4,860) | 22,140 |
Net income (loss) | (7,014) | (7,014) | ||
Purchase of treasury stock | (74) | (74) | ||
Stock-based compensation | 1,159 | 1,159 | ||
Ending, Balance at Jun. 30, 2020 | 198,994 | 188,802 | (4,934) | 15,126 |
Net income (loss) | (1,100) | (1,100) | ||
Stock-based compensation | 978 | 978 | ||
Ending, Balance at Sep. 30, 2020 | 198,872 | 189,780 | (4,934) | 14,026 |
Beginning, Balance at Dec. 31, 2020 | 200,857 | 190,793 | (4,934) | 14,998 |
Net income (loss) | 2,545 | 2,545 | ||
401(k) plan contribution | 1,944 | 1,319 | 625 | |
Stock-based compensation | 1,200 | 1,200 | ||
Ending, Balance at Mar. 31, 2021 | 206,546 | 193,312 | (4,309) | 17,543 |
Beginning, Balance at Dec. 31, 2020 | 200,857 | 190,793 | (4,934) | 14,998 |
Net income (loss) | 6,112 | |||
Ending, Balance at Sep. 30, 2021 | 212,142 | 195,994 | (4,962) | 21,110 |
Beginning, Balance at Mar. 31, 2021 | 206,546 | 193,312 | (4,309) | 17,543 |
Net income (loss) | 3,292 | 3,292 | ||
Stock-based compensation | 1,388 | 1,388 | ||
Stock options exercised | 54 | 54 | ||
Ending, Balance at Jun. 30, 2021 | 211,280 | 194,754 | (4,309) | 20,835 |
Net income (loss) | 275 | 275 | ||
Purchase of treasury stock | (653) | (653) | ||
Stock-based compensation | 1,182 | 1,182 | ||
Stock options exercised | 58 | 58 | ||
Ending, Balance at Sep. 30, 2021 | $ 212,142 | $ 195,994 | $ (4,962) | $ 21,110 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2021 | |
Basis Of Presentation [Abstract] | |
Basis of presentation | Note 1. Basis of presentation The interim unaudited consolidated financial statements of Mayville Engineering Company, Inc. and subsidiaries (MEC, the Company, we, our, us or similar terms) presented here have been prepared in accordance with the accounting principles generally accepted in the United States of America (GAAP) and with instructions to Form 10-Q and Article 10 of Regulation S-X. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and financial position for the interim unaudited periods presented. All intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These interim unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K. A summary of the Company’s significant accounting policies is included in the Company’s 2020 financial statements in the Annual Report on Form 10-K. The Company followed these policies in preparation of the interim unaudited Condensed Consolidated Financial Statements. Nature of Operations MEC is a leading U.S.-based value-added manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military, fitness equipment and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 19 facilities across seven states. These facilities make it possible to offer conventional and computer numerical control (CNC) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting. Our one operating segment focuses on producing metal components that are used in a broad range of heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agricultural, military, fitness equipment and other products. COVID-19 has had and will continue to have a negative impact on our business, financial condition, cash flows, results of operations and supply chain, although the full extent is still uncertain. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases In December 2019, the FASB issued ASU 2019-12, Income Taxes beginning after December 15, 202 1 , and interim periods within fiscal years beginning after December 15, 202 2 . During the period ended March 31, 2021 , the Company adopted this guidance. This adoption had no impact on the financial statements. A summary of the Company’s evaluation of other recent accounting pronouncements is included in the Company’s 2020 financial statements in its Annual Report on Form 10-K for the year ended December 31, 2020. |
Select balance sheet data
Select balance sheet data | 9 Months Ended |
Sep. 30, 2021 | |
Select Balance Sheet Data [Abstract] | |
Select balance sheet data | Note 2. Select balance sheet data Inventory Inventories are stated at the lower of cost, determined on the first-in, first-out method (FIFO) and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Work-in-process and finished goods are valued at production costs consisting of material, labor, and overhead. Inventories as of September 30, 2021 and December 31, 2020 consist of: September 30, 2021 December 31, 2020 Finished goods and purchased parts $ 35,195 $ 24,561 Raw materials 19,317 11,266 Work-in-process 8,402 5,539 Total $ 62,914 $ 41,366 Property, plant and equipment Property, plant and equipment as of September 30, 2021 and December 31, 2020 consist of: Useful Lives Years* September 30, 2021 December 31, 2020 Land Indefinite $ 1,033 $ 1,033 Land improvements 15-39 3,169 3,169 Building and building improvements 15-39 55,837 55,172 Machinery, equipment and tooling 3-10 213,781 199,854 Vehicles 5 3,856 3,778 Office furniture and fixtures 3-7 17,671 16,242 Construction in progress N/A 16,005 3,931 Total property, plant and equipment, gross 311,352 283,179 Less accumulated depreciation 191,202 176,491 Total property, plant and equipment, net $ 120,150 $ 106,688 T he Company completed the closure of its Greenwood, SC manufacturing facility during the third quarter of the prior year and sold the facility during the current quarter for $5,300 before commissions and fees, resulting in a gain on the sale of the asset of $1,374, which is classified in cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss) as of September 30, 2021. The net amount of property, plant and equipment associated with the facility was $3,552, which was classified in assets held for sale on the Condensed Consolidated Balance Sheets as of December 31, 2020. Additionally, the Company finalized an agreement to open a new facility in Hazel Park, MI during the quarter ended June 30, 2021. As of September 30, 2021, the Company invested $11,758 for the ramp-up of production which is classified in construction in progress. Goodwill Changes in goodwill between December 31, 2020 and September 30, 2021 consist of: Balance as of December 31, 2020 $ 71,535 Impairment — Balance as of September 30, 2021 $ 71,535 Intangible Assets The following is a listing of intangible assets, the useful lives in years (amortization period) and accumulated amortization as of September 30, 2021 and December 31, 2020: Useful Lives Years September 30, 2021 December 31, 2020 Amortizable intangible assets: Customer relationships and contracts 9-12 $ 78,340 $ 78,340 Trade name 10 14,780 14,780 Non-compete agreements 5 8,800 8,800 Patents 19 24 24 Accumulated amortization (52,318 ) (44,288 ) Total amortizable intangible assets, net 49,626 57,656 Non-amortizable brand name 3,811 3,811 Total intangible assets, net $ 53,437 $ 61,467 Non-amortizable brand name is tested annually for impairment. Changes in intangible assets between December 31, 2020 and September 30, 2021 consist of: Balance as of December 31, 2020 $ 61,467 Amortization expense (8,030 ) Balance as of September 30, 2021 $ 53,437 Amortization expense was $2,677 for each of the three months ended September 30, 2021 and 2020, and $8,030 for the nine months ended September 30, 2021 and 2020. Future amortization expense is expected to be as followed: Year ending December 31, 2021 (remainder) $ 2,677 2022 $ 6,952 2023 $ 6,866 2024 $ 5,192 2025 $ 5,192 Thereafter $ 22,747 |
Bank revolving credit notes
Bank revolving credit notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Bank revolving credit notes | Note 3. Bank revolving credit notes On September 26, 2019, and as last amended on March 31, 2021, we entered into an amended and restated credit agreement (Credit Agreement) with certain lenders and Wells Fargo Bank, National Association, as administrative agent (the Agent). The Credit Agreement provides for a $200,000 revolving credit facility (the Revolving Loan), with a letter of credit sub-facility in an aggregate amount not to exceed $5,000, and a swingline facility in an aggregate amount of $20,000. The Credit Agreement also provides for an additional $100,000 of debt capacity through an accordion feature. All amounts borrowed under the Credit Agreement mature on September 26, 2024. The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on our ability to, subject to certain exceptions, create, incur or assume indebtedness, create or incur liens, make certain investments, merge or consolidate with another entity, make certain asset dispositions, pay dividends or other distributions to shareholders, enter into transactions with affiliates, enter into sale leaseback transactions or make capital expenditures. The Credit Agreement also requires us to satisfy certain financial covenants, including a minimum interest coverage ratio of 3.00 to 1.00 as well as a consolidated total leverage ratio not to exceed 3.25 to 1.00, although such leverage ratio can be increased in connection with certain acquisitions. In order to provide a means of insurance against future macroeconomic events, we entered into an amendment (Second Amendment) to the Credit Agreement on June 30, 2020. The Second Amendment provides the Company with temporary changes to the total leverage ratio covenant for the period from June 30, 2020, through December 31, 2021, or such earlier date as the Company may elect (Covenant Relief Period), in return for certain increases in interest rates, fees and restrictions on certain activities of the Company, including capital expenditures, acquisitions, dividends and share repurchases. New pricing, which takes effect for the quarters ending on and after September 30, 2020, includes interest at a fluctuating London Interbank Offered Rate (LIBOR) (at a floor of 75 basis points), plus 1.00% to 2.75%, along with the commitment fee ranging from 20 to 50 basis points. During the Covenant Relief Period, the required ceiling on the Company’s total leverage ratio will be 4.25 to 1.00 for quarters ending June 30, 2020 through and including December 31, 2020, and will decline in quarterly increments to 3.25 to 1.00 through the quarter ending December 31, 2021. Due to our previously announced relationship with a strategic new customer within the fitness equipment market, we entered into an amendment (Third Amendment) to the Credit Agreement on March 31, 2021. The Third Amendment allows the Company to incur up to $70,000 of capital expenditures in 2021, as opposed to $35,000. At September 30, 2021, our consolidated total leverage ratio was 1.23 to 1.00 as compared to a covenant maximum of 3.50 to 1.00 in accordance with the Second Amendment of the Credit Agreement. At September 30, 2021, our interest coverage ratio was 16.51 to 1.00 as compared to a covenant minimum of 3.00 to 1.00 under the Credit Agreement. Under the Credit Agreement, interest is payable quarterly at the adjusted LIBOR plus an applicable margin based on the current funded indebtedness to adjusted EBITDA ratio. The interest rate was 2.25% and 2.50% as of September 30, 2021 and December 31, 2020, respectively. Additionally, the agreement has a fee on the average daily unused portion of the aggregate unused revolving commitments. This fee was 0.25% and 0.20% as of September 30, 2021 and December 31, 2020, respectively. The Company was in compliance with all financial covenants of its credit agreements as of September 30, 2021 and December 31, 2020. The amount borrowed on the revolving credit notes was $54,718 and $45,257 as of September 30, 2021 and December 31, 2020, respectively. |
Capital lease obligation
Capital lease obligation | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Capital lease obligation | Note 4. Capital lease obligation Capital leases consist of equipment with a capitalized cost of $3,847 and $3,825 and accumulated depreciation of $1,732 and $1,245 at September 30, 2021 and December 31, 2020, respectively. Depreciation of $163 and $487 was recognized on the capital lease assets during the three- and nine months ended September 30, 2021, respectively, and $161 and $483 during the three- and nine months ended September 30, 2020, respectively. Non-cash capital lease transactions amounted to $0 Year ending December 31, 2021 (remainder) $ 184 2022 734 2023 734 2024 514 2025 226 Thereafter — Total 2,392 Less payment amount allocated to interest 172 Present value of capital lease obligation $ 2,220 Current portion of capital lease obligation 648 Long-term portion of capital lease obligation 1,572 Total capital lease obligation $ 2,220 |
Operating lease obligation
Operating lease obligation | 9 Months Ended |
Sep. 30, 2021 | |
Lessee Disclosure [Abstract] | |
Operating lease obligation | Note 5. Operating lease obligation Operating leases relate to property, plant and equipment. Future minimum lease payments required under the leases are as follows: Year ending December 31, 2021 (remainder) $ 1,542 2022 5,849 2023 5,849 2024 5,121 2025 4,623 Thereafter 22,976 Total $ 45,960 The Company leases certain office space, warehousing facilities, equipment and vehicles under operating lease arrangements with third-party lessors. These lease arrangements expire at various times through August 2031. Total rent expense under the arrangements was approximately $1,392 and $1,128 for the three months ended September 30, 2021 and 2020, respectively, and $3,557 and $3,283 for the nine months ended September 30, 2021 and 2020, respectively. |
Employee stock ownership plan
Employee stock ownership plan | 9 Months Ended |
Sep. 30, 2021 | |
Employee Stock Ownership Plan E S O P Shares In E S O P [Abstract] | |
Employee stock ownership plan | Note 6. Employee stock ownership plan Under the Mayville Engineering Company, Inc. Employee Stock Ownership Plan (the ESOP), the Company can make annual discretionary contributions to the trust for the benefit of eligible employees in the form of cash or shares of common stock of the Company subject to the Board of Directors’ approval. At various times following death, disability, retirement or termination of employment, an ESOP participant is entitled to receive their ESOP account balance in accordance with various distribution methods as permitted under the policies adopted by the ESOP. As of September 30, 2021, and December 31, 2020, the ESOP shares, excluding safe harbor shares held in the Company’s 401(k) plan, consisted of 7,292,392 and 8,253,533 in allocated shares, respectively. |
Retirement plans
Retirement plans | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 7. Retirement plans The Mayville Engineering Company Inc. 401(k) Plan (the 401(k) Plan) covers substantially all employees meeting certain eligibility requirements. The 401(k) Plan is a defined contribution plan and is intended for eligible employees to defer tax-free contributions to save for retirement. Employees may contribute up to 50% of their eligible compensation to the 401(k) Plan, subject to the limits of Section 401(k) of the Internal Revenue Code. The 401(k) Plan also provides for employer discretionary profit-sharing contributions and the Board of Directors may authorize discretionary profit-sharing contributions (which are usually approved at the end of each calendar year). |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 8. Income taxes On a quarterly basis, the Company estimates its effective tax rate for the full fiscal year and records a quarterly income tax provision based on the anticipated rate. As the year progresses, the Company will refine its estimate based on facts and circumstances by each tax jurisdiction. Income tax expense was $63 and $2,059, and the effective tax rate (ETR) from continuing operations was 18.64% and 25.20% for the three and nine months ended September 30, 2021, respectively. Our ETR is different from the expected tax rate due to state taxes, non-deductible items, research and development credits and benefit from excess tax deductions related to share based compensation items. For the three and nine months ended September 30, 2020, income tax expense (benefit) was estimated at $733 and ($1,101) and the ETR from continuing operations was -199.82% and 12.17% respectively. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in these jurisdictions. Accounting Standards Codification (ASC) Topic 740, Income Taxes The Company’s policy for recording interest and penalties associated with potential income tax audits is to record such expense as a component of income tax expense (benefit). There were no amounts for penalties or interest recorded as of September 30, 2021. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its positions. Uncertain Tax Positions Based on the Company’s evaluation, it has been concluded that there is one tax position related to the research and development tax credit requiring recognition in the Company’s financial statements as of September 30, 2021. The Company does not anticipate that there will be a material change in the balance of the unrecognized tax benefits in the next twelve months. Any interest and penalties related to uncertain tax positions are recorded in income tax expense. No amounts have been recorded as tax expense for interest and penalties for the three months ended September 30, 2021, as the amount for the utilized portion for the research and development credit on the Wisconsin return is considered to be immaterial. At September 30, 2021 and December 31, 2020, a total of $301 and $208, respectively, of unrecognized tax benefits would, if recognized, impact the Company’s ETR. The Company files income tax returns in the United States federal jurisdiction and in various state and local jurisdictions. Federal tax returns for tax years beginning January 1, 2017, and state tax returns beginning January 1, 2016, are open for examination. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | Note 9. Contingencies From time to time, the Company may be involved in various claims and lawsuits, both for and against the Company, arising in the normal course of business. Although the results of litigation and claims cannot be predicted with certainty, in management’s opinion, either the likelihood of loss is remote, or any reasonably possible loss associated with the resolution of such proceedings is not expected to have a material adverse impact on the consolidated financial statements. |
Deferred compensation
Deferred compensation | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Compensation Liability [Abstract] | |
Deferred compensation | Note 10. Deferred compensation The Mayville Engineering Deferred Compensation Plan is available for certain employees designated to be eligible to participate by the Company and approved by the Board of Directors. Eligible employees may elect to defer a portion of his or her compensation for any plan year and the deferral cannot exceed 50% of the participant’s base salary and may include the participant’s annual short-term cash incentive up to 100%. The participant’s election must be made prior to the first day of the plan year. An employer contribution will be made for each participant to reflect the amount of any reduced allocations to the ESOP and/or 401(k) employer contributions due solely to the participant’s deferral amounts, as applicable. In addition, a discretionary amount may be awarded to a participant by the Company. Deferrals are assumed to be invested in an investment vehicle based on the options made available to the participant (which does not include Company stock). The deferred compensation plan provides benefits payable upon separation of service or death. Payments are to be made 30 days after date of separation from service, either in a lump-sum payment or up to five annual installments as elected by the participant when the participant first elects to defer compensation. The deferred compensation plan is non-funded, and all future contributions are unsecured in that the employees have the status of a general unsecured creditor of the Company and the agreements constitute a promise by the Company to make benefit payments in the future. During the three months ended September 30, 2021 and 2020, eligible employees elected to defer compensation of $0 and $10, respectively. During the nine months ended September 30, 2021 and 2020, eligible employees elected to defer compensation of $0 and $51, respectively. As of September 30, 2021, and December 31, 2020, the total amount accrued for all benefit years under this plan was $25,373 and $25,631, respectively, which is included within the deferred compensation and long-term incentive on the Condensed Consolidated Balance Sheets. These amounts include the initial deferral of compensation as adjusted for (a) subsequent changes in the share value of the Company stock or (b) in the investment options chosen by the participants. Total (income) expense for the deferred compensation plan for the three months ended September 30, 2021 and 2020 amounted to $(89) and $310, respectively. Total expense for the deferred compensation plan for the nine months ended September 30, 2021 and 2020 amounted to $316 and $289, respectively. These expenses are included in profit sharing, bonuses and deferred compensation on the Condensed Consolidated Statements of Comprehensive Income (Loss). |
Self-Funded insurance
Self-Funded insurance | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Self-Funded insurance | Note 11. Self-Funded insurance The Company is self-funded for the medical benefits provided to its employees and their dependents. Healthcare costs are expensed as incurred and are based upon actual claims paid, reinsurance premiums, administration fees, and estimated unpaid claims. As of March 31, 2020, the Company consolidated its benefit plans and now has no specific stop loss limitation but has an aggregate stop loss limit to mitigate risk. Expense related to this contract is approximately $5,513 and $4,757 for the three months ended September 30, 2021 and 2020, respectively, and $12,524 and $16,072 for the nine months ended September 30, 2021 and 2020, respectively. An estimated accrued liability of approximately $1,420 and $1,721 was recorded as of September 30, 2021 and December 31, 2020, respectively, for estimated unpaid claims and is included within other current liabilities on the Condensed Consolidated Balance Sheets. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | Note 12. Segments The Company applies the provisions of ASC Topic 280, Segment Reporting |
Fair value of financial instrum
Fair value of financial instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Note 13. Fair value of financial instruments Fair value provides information on what the Company may realize if certain assets were sold or might pay to transfer certain liabilities based upon an exit price. Financial assets and liabilities that are measured and reported at fair value are classified into a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. Long-term debt is classified as a Level 2 fair value input. • Level 3 – Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company’s own data and judgements about assumptions that market participants would use in pricing the asset or liability. The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy: Fair Value Measurements at Report Date Using Balance at September 30, 2021 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 25,373 $ 22,385 $ 2,988 $ — Total $ 25,373 $ 22,385 $ 2,988 $ — Fair Value Measurements at Report Date Using Balance at December 31, 2020 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 25,631 $ 4,865 $ 20,766 $ — Total $ 25,631 $ 4,865 $ 20,766 $ — Fair value measurements for the Company’s cash and cash equivalents are classified based upon Level 1 measurements because such measurements are based upon quoted market prices in active markets for identical assets. Accounts receivable, accounts payable, long-term debt and accrued liabilities are recorded in the financial statements at cost and approximate fair value. Deferred compensation liabilities are recorded at amounts due to participants at the time of deferral. Deferrals are invested in an investment vehicle based on the options made available to the participant, considered to be Level 1 and Level 2 on the fair value hierarchy, with the majority of the current balance as Level 1. The change in fair value is recorded in the profit sharing, bonuses, and deferred compensation line item on the Condensed Consolidated Statements of Comprehensive Income (Loss). The balance due to participants is reflected on the deferred compensation and long-term incentive line item on the Condensed Consolidated Balance Sheets. The Company’s non-financial assets such as intangible assets and property, plant, and equipment are re-measured at fair value when there is an indication of impairment and adjusted only when an impairment charge is recognized. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | Note 14. Earnings Per Share The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share Options in the money that were not included in the computation of diluted earnings per share because they would have had an anti-dilutive impact on earnings per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options 300,510 — 300,510 — |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 15. Revenue Recognition Contract Assets and Contract Liabilities The Company has contract assets and contract liabilities, which are included in other current assets and other current liabilities on the Condensed Consolidated Balance Sheet, respectively. Contract assets include products where the Company has satisfied its performance obligation, but receipt of payment is contingent upon delivery. Contract liabilities include deferred tooling revenue, where the performance obligation was not met. The performance obligation is satisfied when the tooling is completed and the customer signs off through the Product Part Approval Process (PPAP). Cost of goods sold is recognized and released from the balance sheet when control of the tooling promised under contract is transferred to the customer either at a point in time or over a period of time. The Company’s contracts with customers are short-term in nature; therefore, revenue is typically recognized, billed and collected within a 12 - month period. The following table reflects the changes in our contract assets and liabilities during the nine months ended September 30, 2021 . Contract Assets Contract Liabilities As of December 31, 2020 $ 3,126 $ 1,060 Net Activity 309 1,412 As of September 30, 2021 $ 3,435 $ 2,472 Disaggregated Revenue The following table represents a disaggregation of revenue by product category: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Outdoor sports $ 2,230 $ 1,898 $ 7,907 $ 5,260 Fabrication 74,512 56,658 222,201 169,674 Performance structures 15,632 18,543 54,840 42,334 Tube 14,392 12,772 45,039 37,047 Tank 5,564 4,316 17,977 13,399 Total 112,330 94,187 347,964 267,714 Intercompany sales elimination (3,312 ) (3,112 ) (6,113 ) (5,452 ) Total, net sales $ 109,018 $ 91,075 $ 341,851 $ 262,262 |
Concentration of major customer
Concentration of major customers | 9 Months Ended |
Sep. 30, 2021 | |
Risks And Uncertainties [Abstract] | |
Concentration of major customers | Note 16. Concentration of major customers The following customers accounted for 10% or greater of the Company’s recorded net sales and net trade receivables: Net Sales Accounts Receivable Three Months Ended September 30, Nine Months Ended September 30, As of As of 2021 2020 2021 2020 September 30, 2021 December 31, 2020 Customer A 18.0 % 13.3 % 16.8 % 15.6 % 15.3 % 11.3 % B <10 % 10.5 % 10.6 % 10.1 % <10 % <10 % C <10 % 15.7 % 10.0 % 11.7 % <10 % 12.2 % D 13.6 % 13.3 % 14.1 % 11.3 % <10 % <10 % E 10.8 % <10 % <10 % <10 % 13.9 % <10 % |
Stock based compensation
Stock based compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock based compensation | Note 17. Stock based compensation The Mayville Engineering Company, Inc. 2019 Omnibus Incentive Plan provides the Company the ability to grant monetary payments based on the value of its common stock, up to 2,000,000 shares. On April 20, 2021, shareholders of the Company approved an amendment to the 2019 Omnibus Incentive Plan increasing the number of shares of common stock authorized for issuance by 2,500,000 shares. The Company recognizes stock-based compensation using the fair value provisions prescribed by ASC Topic 718, Compensation – Stock Compensation Cancellations and forfeitures are accounted for as incurred. Stock awards were granted on June 3, 2021, May 12, 2021, April 20, 2021, February 28, 2021, May 12, 2020, February 27, 2020 and May 8, 2019. There were no stock awards granted prior to this. During the nine months ended September 30, 2021, 314,902 units vested. For the same period, 484,661 options vested with a weighted average strike price of $9.68. There were 125,414 options vested for the nine months ended September 30, 2020. As of September 30, 2021, 1,121,683 options remained outstanding with a weighted average strike price of $11.11 and a weighted average contractual life of 8.63 years remaining. The Company’s stock-based compensation expense by award type is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 One-time IPO unit awards $ — $ — $ — $ 1,029 Unit awards 714 586 2,282 1,670 Option awards 468 392 1,489 1,020 Stock based compensation expense, net of tax $ 1,182 $ 978 $ 3,771 $ 3,719 One-time IPO unit awards were fully expensed as of December 31, 2020. A rollforward of unrecognized stock-based compensation expense is displayed in the table below. Unrecognized stock-based compensation expense as of September 30, 2021 will be expensed over the remaining requisite service period from which individual award values relate, up to February 28, 2023. Units Options Total Balance as of December 31, 2020 $ 1,545 $ 1,432 $ 2,977 Grants 2,564 2,130 4,694 Forfeitures (81 ) — (81 ) Expense (719 ) (481 ) (1,200 ) Balance as of March 31, 2021 3,309 3,081 6,390 Grants 892 — 892 Forfeitures (113 ) (69 ) (182 ) Expense (849 ) (539 ) (1,388 ) Balance as of June 30, 2021 $ 3,239 $ 2,473 $ 5,712 Grants — — — Forfeitures (125 ) — (125 ) Expense (714 ) (468 ) (1,182 ) Balance as of September 30, 2021 $ 2,400 $ 2,005 $ 4,405 |
Greenwood Facility Closure, Res
Greenwood Facility Closure, Restructuring, and Sale | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Greenwood Facility Closure, Restructuring, and Sale | Note 18. Greenwood Facility Closure, Restructuring, and Sale Based on the Company’s investments in new technology and automation, which have resulted in a smaller footprint requirement to maintain manufacturing capacity, the Company announced it would be closing its Greenwood, SC facility on May 6, 2020. The facility closure was finalized during the third quarter of 2020 with all customer components re-distributed among five other MEC manufacturing facilities. All customer relationships and manufactured components were maintained through this transition without disruption to our customers. On July 1, 2021, the Company entered into a contract to sell the Greenwood, SC facility for $5,300 before commissions and fees. Settlement of the contract occurred on August 30, 2021, resulting in a gain on the sale of the asset of $1,374, which is classified in cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss) as of September 30, 2021. Costs associated with the closure were accounted for in accordance with ASC Exit or Disposal Cost Obligations For the three and nine months ended September 30, 2021, the Company incurred $0 As a result of the Greenwood facility closure, future earnings and cash flows were not impacted by the depreciation associated with the assets disposed of or the facility, maintenance costs of the facility, and facility personnel expenses. Assets disposed of had a net book value of $2,475 with a remaining useful life of approximately 3 years resulting in approximately $825 of annual depreciation expense that were no longer incurred. The facility had a net book value of $3,552 as of August 30, 2021 with a remaining weighted average useful life of approximately 27 years resulting in approximately $133 of annual depreciation expense that was no longer incurred. Additionally, the Company no longer has approximately $800 of annual facility maintenance costs. Total personnel costs associated with the facility were approximately $2,250 for the first quarter 2020 resulting in approximately $9,000 of annual personnel expenses; the majority of these costs were transitioned to five other MEC facilities that are now manufacturing these components. As previously mentioned, all customer relationships and manufacturing programs were retained through the transition. The aforementioned depreciation, maintenance costs, and personnel expenses associated with the Greenwood facility have been classified as cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss). |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | N ote 19. Subsequent events On October 19, 2021, the Company’s Board of Directors approved a new share repurchase program of up to $25 million of our common stock through 2023. The new share repurchase program replaced the prior program. |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations MEC is a leading U.S.-based value-added manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military, fitness equipment and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 19 facilities across seven states. These facilities make it possible to offer conventional and computer numerical control (CNC) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting. Our one operating segment focuses on producing metal components that are used in a broad range of heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agricultural, military, fitness equipment and other products. COVID-19 has had and will continue to have a negative impact on our business, financial condition, cash flows, results of operations and supply chain, although the full extent is still uncertain. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases In December 2019, the FASB issued ASU 2019-12, Income Taxes beginning after December 15, 202 1 , and interim periods within fiscal years beginning after December 15, 202 2 . During the period ended March 31, 2021 , the Company adopted this guidance. This adoption had no impact on the financial statements. A summary of the Company’s evaluation of other recent accounting pronouncements is included in the Company’s 2020 financial statements in its Annual Report on Form 10-K for the year ended December 31, 2020. |
Select balance sheet data (Tabl
Select balance sheet data (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Select Balance Sheet Data [Abstract] | |
Schedule of Inventories | Inventories as of September 30, 2021 and December 31, 2020 consist of: September 30, 2021 December 31, 2020 Finished goods and purchased parts $ 35,195 $ 24,561 Raw materials 19,317 11,266 Work-in-process 8,402 5,539 Total $ 62,914 $ 41,366 |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of September 30, 2021 and December 31, 2020 consist of: Useful Lives Years* September 30, 2021 December 31, 2020 Land Indefinite $ 1,033 $ 1,033 Land improvements 15-39 3,169 3,169 Building and building improvements 15-39 55,837 55,172 Machinery, equipment and tooling 3-10 213,781 199,854 Vehicles 5 3,856 3,778 Office furniture and fixtures 3-7 17,671 16,242 Construction in progress N/A 16,005 3,931 Total property, plant and equipment, gross 311,352 283,179 Less accumulated depreciation 191,202 176,491 Total property, plant and equipment, net $ 120,150 $ 106,688 |
Schedule of Changes In Goodwill | Changes in goodwill between December 31, 2020 and September 30, 2021 consist of: Balance as of December 31, 2020 $ 71,535 Impairment — Balance as of September 30, 2021 $ 71,535 |
Schedule of Listing of Intangible Assets | The following is a listing of intangible assets, the useful lives in years (amortization period) and accumulated amortization as of September 30, 2021 and December 31, 2020: Useful Lives Years September 30, 2021 December 31, 2020 Amortizable intangible assets: Customer relationships and contracts 9-12 $ 78,340 $ 78,340 Trade name 10 14,780 14,780 Non-compete agreements 5 8,800 8,800 Patents 19 24 24 Accumulated amortization (52,318 ) (44,288 ) Total amortizable intangible assets, net 49,626 57,656 Non-amortizable brand name 3,811 3,811 Total intangible assets, net $ 53,437 $ 61,467 |
Schedule of Changes In Intangible Assets | Changes in intangible assets between December 31, 2020 and September 30, 2021 consist of: Balance as of December 31, 2020 $ 61,467 Amortization expense (8,030 ) Balance as of September 30, 2021 $ 53,437 |
Schedule of Future Amortization Expense | Future amortization expense is expected to be as followed: Year ending December 31, 2021 (remainder) $ 2,677 2022 $ 6,952 2023 $ 6,866 2024 $ 5,192 2025 $ 5,192 Thereafter $ 22,747 |
Capital lease obligation (Table
Capital lease obligation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Required Under The Lease | Future minimum lease payments required under the lease are as follows: Year ending December 31, 2021 (remainder) $ 184 2022 734 2023 734 2024 514 2025 226 Thereafter — Total 2,392 Less payment amount allocated to interest 172 Present value of capital lease obligation $ 2,220 Current portion of capital lease obligation 648 Long-term portion of capital lease obligation 1,572 Total capital lease obligation $ 2,220 |
Operating lease obligation (Tab
Operating lease obligation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Lessee Disclosure [Abstract] | |
Future Minimum Lease Payments Under Leases | Operating leases relate to property, plant and equipment. Future minimum lease payments required under the leases are as follows: Year ending December 31, 2021 (remainder) $ 1,542 2022 5,849 2023 5,849 2024 5,121 2025 4,623 Thereafter 22,976 Total $ 45,960 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value by Fair Value Hierarchy | The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy: Fair Value Measurements at Report Date Using Balance at September 30, 2021 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 25,373 $ 22,385 $ 2,988 $ — Total $ 25,373 $ 22,385 $ 2,988 $ — Fair Value Measurements at Report Date Using Balance at December 31, 2020 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 25,631 $ 4,865 $ 20,766 $ — Total $ 25,631 $ 4,865 $ 20,766 $ — |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | Options in the money that were not included in the computation of diluted earnings per share because they would have had an anti-dilutive impact on earnings per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options 300,510 — 300,510 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Changes in Contract Assets and Liabilities | The following table reflects the changes in our contract assets and liabilities during the nine months ended September 30, 2021 . Contract Assets Contract Liabilities As of December 31, 2020 $ 3,126 $ 1,060 Net Activity 309 1,412 As of September 30, 2021 $ 3,435 $ 2,472 |
Schedule of Disaggregation of Revenue by Product Category | The following table represents a disaggregation of revenue by product category: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Outdoor sports $ 2,230 $ 1,898 $ 7,907 $ 5,260 Fabrication 74,512 56,658 222,201 169,674 Performance structures 15,632 18,543 54,840 42,334 Tube 14,392 12,772 45,039 37,047 Tank 5,564 4,316 17,977 13,399 Total 112,330 94,187 347,964 267,714 Intercompany sales elimination (3,312 ) (3,112 ) (6,113 ) (5,452 ) Total, net sales $ 109,018 $ 91,075 $ 341,851 $ 262,262 |
Concentration of major custom_2
Concentration of major customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risks And Uncertainties [Abstract] | |
Schedules of Major Customer Concentrations | The following customers accounted for 10% or greater of the Company’s recorded net sales and net trade receivables: Net Sales Accounts Receivable Three Months Ended September 30, Nine Months Ended September 30, As of As of 2021 2020 2021 2020 September 30, 2021 December 31, 2020 Customer A 18.0 % 13.3 % 16.8 % 15.6 % 15.3 % 11.3 % B <10 % 10.5 % 10.6 % 10.1 % <10 % <10 % C <10 % 15.7 % 10.0 % 11.7 % <10 % 12.2 % D 13.6 % 13.3 % 14.1 % 11.3 % <10 % <10 % E 10.8 % <10 % <10 % <10 % 13.9 % <10 % |
Stock based compensation (Table
Stock based compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-based Compensation Expenses | The Company’s stock-based compensation expense by award type is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 One-time IPO unit awards $ — $ — $ — $ 1,029 Unit awards 714 586 2,282 1,670 Option awards 468 392 1,489 1,020 Stock based compensation expense, net of tax $ 1,182 $ 978 $ 3,771 $ 3,719 |
Schedule of Unrecognized Stock-based Compensation Expense | Units Options Total Balance as of December 31, 2020 $ 1,545 $ 1,432 $ 2,977 Grants 2,564 2,130 4,694 Forfeitures (81 ) — (81 ) Expense (719 ) (481 ) (1,200 ) Balance as of March 31, 2021 3,309 3,081 6,390 Grants 892 — 892 Forfeitures (113 ) (69 ) (182 ) Expense (849 ) (539 ) (1,388 ) Balance as of June 30, 2021 $ 3,239 $ 2,473 $ 5,712 Grants — — — Forfeitures (125 ) — (125 ) Expense (714 ) (468 ) (1,182 ) Balance as of September 30, 2021 $ 2,400 $ 2,005 $ 4,405 |
Basis of presentation - Additio
Basis of presentation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021FacilityStateSegment | |
Basis Of Presentation [Line Items] | |
Number of facilities operated | Facility | 19 |
Number of states | State | 7 |
Number of operating segments | Segment | 1 |
ASU 2019-12 [Member] | |
Basis Of Presentation [Line Items] | |
Change in accounting principle, accounting standards update, early adoption | false |
Change in accounting principle, accounting standards update, adoption date | Mar. 31, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Select balance sheet data - Sch
Select balance sheet data - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Select Balance Sheet Data [Abstract] | ||
Finished goods and purchased parts | $ 35,195 | $ 24,561 |
Raw materials | 19,317 | 11,266 |
Work-in-process | 8,402 | 5,539 |
Total | $ 62,914 | $ 41,366 |
Select balance sheet data - S_2
Select balance sheet data - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 311,352 | $ 283,179 |
Less accumulated depreciation | 191,202 | 176,491 |
Total property, plant and equipment, net | 120,150 | 106,688 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 1,033 | 1,033 |
Property, plant and equipment useful lives | Indefinite | |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 3,169 | 3,169 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 15 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 39 years | |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 55,837 | 55,172 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 15 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 39 years | |
Machinery, Equipment and Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 213,781 | 199,854 |
Machinery, Equipment and Tooling [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 3 years | |
Machinery, Equipment and Tooling [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 10 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 3,856 | 3,778 |
Property, plant and equipment useful lives | 5 years | |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 17,671 | 16,242 |
Office Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 3 years | |
Office Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 7 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 16,005 | $ 3,931 |
Select balance sheet data - Add
Select balance sheet data - Additional Information (Details) - USD ($) $ in Thousands | Aug. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Select Balance Sheet Data [Line Items] | ||||||
Net amount of property, plant and equipment associated with facility | $ 3,552 | |||||
Amortization expense | $ 2,677 | $ 2,677 | $ 8,030 | $ 8,030 | ||
Construction in Progress [Member] | ||||||
Select Balance Sheet Data [Line Items] | ||||||
Amount invested for ramp-up of production | 11,758 | $ 11,758 | ||||
Greenwood Facility [Member] | ||||||
Select Balance Sheet Data [Line Items] | ||||||
Proceeds from sale of business before commission and fees | $ 5,300 | 5,300 | ||||
Gain on the sale of the asset | $ 1,374 | $ 1,374 |
Select balance sheet data - S_3
Select balance sheet data - Schedule of Changes In Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Select Balance Sheet Data [Abstract] | |
Balance | $ 71,535 |
Impairment | 0 |
Balance | $ 71,535 |
Select balance sheet data - S_4
Select balance sheet data - Schedule of Listing of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Amortizable intangible assets [Abstract] | ||
Accumulated amortization | $ (52,318) | $ (44,288) |
Total amortizable intangible assets, net | 49,626 | 57,656 |
Total intangible assets, net | 53,437 | 61,467 |
Customer Relationships and Contracts [Member] | ||
Amortizable intangible assets [Abstract] | ||
Amortizable intangible assets, gross | $ 78,340 | $ 78,340 |
Trade Names [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 10 years | 10 years |
Amortizable intangible assets, gross | $ 14,780 | $ 14,780 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 5 years | 5 years |
Amortizable intangible assets, gross | $ 8,800 | $ 8,800 |
Patents [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 19 years | 19 years |
Amortizable intangible assets, gross | $ 24 | $ 24 |
Non-amortizable Brand Name [Member] | ||
Amortizable intangible assets [Abstract] | ||
Total intangible assets, net | $ 3,811 | $ 3,811 |
Minimum [Member] | Customer Relationships and Contracts [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 9 years | 9 years |
Maximum [Member] | Customer Relationships and Contracts [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 12 years | 12 years |
Select balance sheet data - S_5
Select balance sheet data - Schedule of Changes In Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Select Balance Sheet Data [Abstract] | ||||
Balance | $ 61,467 | |||
Amortization expense | $ (2,677) | $ (2,677) | (8,030) | $ (8,030) |
Balance | $ 53,437 | $ 53,437 |
Select balance sheet data - S_6
Select balance sheet data - Schedule of Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Select Balance Sheet Data [Abstract] | |
2021 (remainder) | $ 2,677 |
2022 | 6,952 |
2023 | 6,866 |
2024 | 5,192 |
2025 | 5,192 |
Thereafter | $ 22,747 |
Bank revolving credit notes - A
Bank revolving credit notes - Additional Information (Details) - USD ($) | Sep. 26, 2019 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Line Of Credit Facility [Line Items] | ||||
Revolving credit notes | $ 45,257,000 | $ 54,718,000 | $ 45,257,000 | |
A&R Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Minimum interest coverage ratio | 3.00% | |||
Maximum consolidated leverage ratio | 3.25% | |||
A&R Credit Agreement [Member] | The Agent [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Credit agreement additional borrowing capacity through accordion feature | $ 100,000,000 | |||
Credit agreement maturity date | Sep. 26, 2024 | |||
Second Amendment [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Minimum interest coverage ratio | 3.00% | |||
Maximum consolidated leverage ratio | 3.50% | |||
Debt instrument covenant description | The Second Amendment provides the Company with temporary changes to the total leverage ratio covenant for the period from June 30, 2020, through December 31, 2021, or such earlier date as the Company may elect (Covenant Relief Period), in return for certain increases in interest rates, fees and restrictions on certain activities of the Company, including capital expenditures, acquisitions, dividends and share repurchases. New pricing, which takes effect for the quarters ending on and after September 30, 2020, includes interest at a fluctuating London Interbank Offered Rate (LIBOR) (at a floor of 75 basis points), plus 1.00% to 2.75%, along with the commitment fee ranging from 20 to 50 basis points. | |||
Floor rate | 0.75% | |||
Leverage ratio | 4.25% | 3.25% | ||
Consolidated leverage ratio | 1.23% | |||
Interest coverage ration | 16.51% | |||
Second Amendment [Member] | Minimum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument commitment fee percentage | 0.20% | |||
Second Amendment [Member] | Minimum [Member] | LIBOR [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Second Amendment [Member] | Maximum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument commitment fee percentage | 0.50% | |||
Second Amendment [Member] | Maximum [Member] | LIBOR [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.75% | |||
Third Amendment [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Capital expenditure incurred | $ 35,000,000 | |||
Third Amendment [Member] | Maximum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Capital expenditure incurred | $ 70,000,000 | |||
Revolving Credit Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate | 2.25% | 2.50% | ||
Revolving commitments fee percentage | 0.25% | 0.20% | ||
Revolving credit notes | $ 45,257,000 | $ 54,718,000 | $ 45,257,000 | |
Revolving Credit Facility [Member] | A&R Credit Agreement [Member] | The Agent [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Credit agreement borrowing capacity | $ 200,000,000 | |||
Letter of Credit Sub-facility [Member] | A&R Credit Agreement [Member] | The Agent [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Credit agreement borrowing capacity | 5,000,000 | |||
Swingline Facility [Member] | A&R Credit Agreement [Member] | The Agent [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Credit agreement borrowing capacity | $ 20,000,000 |
Capital lease obligation - Addi
Capital lease obligation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Capital Leased Assets [Line Items] | |||||
Capital Lease Obligations | $ 2,220 | $ 2,220 | |||
Non-cash capital lease transactions | 0 | $ 0 | 0 | $ 0 | |
Equipment [Member] | |||||
Capital Leased Assets [Line Items] | |||||
Capitalized cost | 3,847 | 3,847 | $ 3,825 | ||
Capital lease, accumulated depreciation | 1,732 | 1,732 | $ 1,245 | ||
Capital lease, depreciation recognized | $ 163 | $ 161 | $ 487 | $ 483 |
Capital lease obligation - Sche
Capital lease obligation - Schedule of Future Minimum Lease Payments Required Under The Lease (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remainder) | $ 184 | |
2022 | 734 | |
2023 | 734 | |
2024 | 514 | |
2025 | 226 | |
Total | 2,392 | |
Less payment amount allocated to interest | 172 | |
Present value of capital lease obligation | 2,220 | |
Current portion of capital lease obligation | 648 | $ 626 |
Long-term portion of capital lease obligation | 1,572 | $ 2,061 |
Total capital lease obligation | $ 2,220 |
Operating lease obligation - Fu
Operating lease obligation - Future Minimum Lease Payments Under Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 (remainder) | $ 1,542 |
2022 | 5,849 |
2023 | 5,849 |
2024 | 5,121 |
2025 | 4,623 |
Thereafter | 22,976 |
Total | $ 45,960 |
Operating lease obligation - Ad
Operating lease obligation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee Disclosure [Abstract] | ||||
Operating lease expiration period | 2031-08 | |||
Rent expense | $ 1,392 | $ 1,128 | $ 3,557 | $ 3,283 |
Employee stock ownership plan -
Employee stock ownership plan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Employee stock ownership plan (ESOP), (income) expense | $ 124 | $ 825 | |||
Shares in ESOP | 7,292,392 | 7,292,392 | 8,253,533 | ||
Employee Stock Option [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Employee stock ownership plan (ESOP), (income) expense | $ 124 | $ 0 | $ 825 | $ 0 |
Retirement plans - Additional I
Retirement plans - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Percentage of employee contribution of eligible compensation plan | 50.00% |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 63,000 | $ 733,000 | $ 2,059,000 | $ (1,101,000) | |
Effective income tax rate | 18.64% | (199.82%) | 25.20% | 12.17% | |
Penalties or interest recorded | $ 0 | $ 0 | |||
Tax expense for interest and penalties | 0 | ||||
Unrecognized tax benefits that would impact effective tax rate | $ 301,000 | $ 301,000 | $ 208,000 |
Deferred compensation - Additio
Deferred compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||
Description of deferred compensation arrangements | The Mayville Engineering Deferred Compensation Plan is available for certain employees designated to be eligible to participate by the Company and approved by the Board of Directors. | ||||
Deferred compensation plan (Income) expense | $ 1,939 | $ 2,288 | $ 8,013 | $ 4,807 | |
Deferred compensation cash-based arrangements liability | 25,373 | 25,373 | $ 25,631 | ||
Deferred Profit Sharing [Member] | |||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||
Deferred compensation plan (Income) expense | (89) | 310 | 316 | 289 | |
Employees [Member] | |||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||
Deferred compensation plan (Income) expense | $ 0 | $ 10 | $ 0 | $ 51 | |
Maximum [Member] | |||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||
Annual short term cash incentive | 100.00% | ||||
Deferred compensation arrangements | 50.00% |
Self-Funded insurance - Additio
Self-Funded insurance - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Insurance [Abstract] | |||||
Estimated accrued liability | $ 1,420 | $ 1,420 | $ 1,721 | ||
Reinsured limit of aggregate expense | $ 5,513 | $ 4,757 | $ 12,524 | $ 16,072 |
Segments - Additional Informati
Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Fair value of financial instr_3
Fair value of financial instruments - Schedule of Financial Assets and Liabilities Accounted for at Fair Value by Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | $ 25,373 | $ 25,631 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 22,385 | 4,865 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 2,988 | 20,766 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Deferred Compensation Liability [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 25,373 | 25,631 |
Deferred Compensation Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 22,385 | 4,865 |
Deferred Compensation Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 2,988 | 20,766 |
Deferred Compensation Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | $ 0 | $ 0 |
Earnings per share - Schedule o
Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 300,510 | 300,510 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Changes in Contract Assets and Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract asset, beginning balance | $ 3,126 |
Net Activity | 309 |
Contract asset, ending balance | 3,435 |
Contract liability, beginning balance | 1,060 |
Net Activity | 1,412 |
Contract liability, ending balance | $ 2,472 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Disaggregation of Revenue by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 109,018 | $ 91,075 | $ 341,851 | $ 262,262 |
Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 112,330 | 94,187 | 347,964 | 267,714 |
Intercompany Sales Elimination | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | (3,312) | (3,112) | (6,113) | (5,452) |
Outdoor Sports | Reportable Legal Entities | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 2,230 | 1,898 | 7,907 | 5,260 |
Fabrication | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 74,512 | 56,658 | 222,201 | 169,674 |
Performance structures | Reportable Legal Entities | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 15,632 | 18,543 | 54,840 | 42,334 |
Tube | Reportable Legal Entities | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 14,392 | 12,772 | 45,039 | 37,047 |
Tank | Reportable Legal Entities | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 5,564 | $ 4,316 | $ 17,977 | $ 13,399 |
Concentration of major custom_3
Concentration of major customers - Schedules of Major Customer Concentrations (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Customer A [Member] | Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 18.00% | 13.30% | 16.80% | 15.60% | |
Customer A [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15.30% | 11.30% | |||
Customer B [Member] | Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.50% | 10.60% | 10.10% | ||
Concentration risk percentage | <10% | ||||
Customer B [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | <10% | <10% | |||
Customer C [Member] | Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15.70% | 10.00% | 11.70% | ||
Concentration risk percentage | <10% | ||||
Customer C [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 12.20% | ||||
Concentration risk percentage | <10% | ||||
Customer D [Member] | Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13.60% | 13.30% | 14.10% | 11.30% | |
Customer D [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | <10% | <10% | |||
Customer E [Member] | Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.80% | ||||
Concentration risk percentage | <10% | <10% | <10% | ||
Customer E [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13.90% | ||||
Concentration risk percentage | <10% |
Stock based compensation - Addi
Stock based compensation - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 20, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options, outstanding number | 1,121,683 | ||
Weighted average exercise price | $ 11.11 | ||
Weighted average contractual life remaining | 8 years 7 months 17 days | ||
Unrecognized stock-based compensation recognition period | Feb. 28, 2023 | ||
Non-Employee Director [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options awarded, value | $ 0 | ||
2019 Omnibus Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payments based on the value of its common stock | 2,000,000 | ||
Number of shares authorized | 2,500,000 | ||
Restricted Stock Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of units, vested | 314,902 | ||
Employee Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of units, vested | 484,661 | 125,414 | |
Weighted average strike price | $ 9.68 |
Stock based compensation - Summ
Stock based compensation - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense, net of tax | $ 1,182 | $ 978 | $ 3,771 | $ 3,719 |
One-Time IPO Unit Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense, net of tax | 1,029 | |||
Unit Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense, net of tax | 714 | 586 | 2,282 | 1,670 |
Option Award [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense, net of tax | $ 468 | $ 392 | $ 1,489 | $ 1,020 |
Stock based compensation - Sche
Stock based compensation - Schedule of Unrecognized Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance | $ 5,712 | $ 6,390 | $ 2,977 |
Grants | 892 | 4,694 | |
Forfeitures | (125) | (182) | (81) |
Expense | (1,182) | (1,388) | (1,200) |
Ending Balance | 4,405 | 5,712 | 6,390 |
Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance | 3,239 | 3,309 | 1,545 |
Grants | 892 | 2,564 | |
Forfeitures | (125) | (113) | (81) |
Expense | (714) | (849) | (719) |
Ending Balance | 2,400 | 3,239 | 3,309 |
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance | 2,473 | 3,081 | 1,432 |
Grants | 2,130 | ||
Forfeitures | (69) | ||
Expense | (468) | (539) | (481) |
Ending Balance | $ 2,005 | $ 2,473 | $ 3,081 |
Greenwood Facility Closure, R_2
Greenwood Facility Closure, Restructuring, and Sale - Additional Information (Detail) $ in Thousands | Aug. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)Facility | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Restructuring Cost And Reserve [Line Items] | |||||||
Loss on disposal of property, plant and equipment | $ (1,311) | $ 688 | |||||
Greenwood Facility [Member] | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Date of announcement of closing facility | May 6, 2020 | ||||||
Proceeds from sale of business before commission and fees | $ 5,300 | $ 5,300 | |||||
Gain on the sale of the asset | 1,374 | 1,374 | |||||
Total costs incurred for facility closure and restructuring | $ 0 | $ 687 | $ 0 | 2,524 | |||
Loss on disposal of property, plant and equipment | 88 | 931 | |||||
Severance and retention bonus | 51 | 282 | |||||
Buyout of operating leases | 78 | 78 | |||||
Disposition of inventory | 622 | ||||||
Assets disposed, net book value | $ 2,475 | $ 2,475 | |||||
Assets disposed remaining useful life | 3 years | ||||||
Assets disposed depreciation expense | $ 825 | ||||||
Estimated fair value of facility | $ 3,552 | ||||||
Assets disposed remaining weighted average useful life | 27 years | ||||||
Annual depreciation expense | $ 133 | ||||||
Disposal group annual facility maintenance costs | 800 | ||||||
Disposal group assets personnel costs | $ 2,250 | ||||||
Disposal group assets annual personnel expenses | $ 9,000 | ||||||
Disposal group assets annual personnel expenses to be transitioned to other facilities | Facility | 5 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Oct. 19, 2021USD ($) |
Subsequent Events [Member] | Common Stock [Member] | |
Subsequent Event [Line Items] | |
Share repurchase program, authorized amount | $ 25,000,000 |