The Gorman-Rupp Company (GRC) 10-Q 29 Apr 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 15, 2015
Entity Registrant Name	GORMAN RUPP CO
Entity Central Index Key	42682
Current Fiscal Year End Date	-19
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		26,260,543
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net sales	$99,233	$110,064
Cost of products sold	75,318	82,510
Gross profit	23,915	27,554
Selling, general and administrative expenses	13,312	12,861
Operating income	10,603	14,693
Other income	331	173
Other expense	-21	-34
Income before income taxes	10,913	14,832
Income taxes	3,638	4,878
Net income	$7,275	$9,954
Earnings Per Share (in dollars per share)	$0.28	$0.38
Cash Dividends per Share (in dollars per share)	$0.10	$0.09
Average Shares Outstanding (in shares)	26,260,543	26,253,043

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net income	$7,275	$9,954
Cumulative translation adjustments	-2,836	-356
Pension and postretirement medical liability adjustments, net of tax	226	174
Other comprehensive loss	-2,610	-182
Total Comprehensive income	$4,665	$9,772

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current Assets
Cash and cash equivalents	$27,301	$24,491
Accounts receivable – net	71,593	70,734
Inventories	97,202	94,760
Deferred income taxes and other current assets	9,111	10,724
Total Current Assets	205,207	200,709
Property, plant and equipment	267,184	266,660
Less accumulated depreciation	135,177	132,696
Property, plant and equipment – net	132,007	133,964
Deferred income taxes and other	6,152	6,313
Goodwill and other intangible assets – net	39,448	39,918
Total assets	382,814	380,904
Accounts payable	20,361	17,908
Short-term debt	9,000	12,000
Payroll and related liabilities	9,958	11,355
Commissions payable	10,472	9,448
Deferred revenue	3,390	4,166
Accrued expenses	10,556	9,469
Total current liabilities	63,737	64,346
Pension benefits	4,871	4,496
Postretirement benefits	21,414	21,297
Deferred and other income taxes	8,786	8,798
Total liabilities	98,808	98,937
Shareholders' equity
Outstanding common shares: 26,260,543 at March 31, 2015 and December 31, 2014 (net of 788,253 treasury shares, respectively), at stated capital amounts	5,133	5,133
Additional paid-in capital	3,059	3,059
Retained earnings	295,750	291,101
Accumulated other comprehensive loss	-19,936	-17,326
Total shareholders' equity	284,006	281,967
Total liabilities and shareholders' equity	$382,814	$380,904

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Common Stock Authorized (in shares)	35,000,000	35,000,000
Common Stock Par Value (in dollars per share)	$0	$0
Common Stock Outstanding (in shares)	26,260,543	26,260,543
Treasury Shares (in shares)	788,253	788,253

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$7,275	$9,954
Adjustments to reconcile net income attributable to net cash provided by (used for) operating activities:
Depreciation and amortization	3,752	3,462
Pension expense	913	696
Contributions to pension plan		-1,200
Changes in operating assets and liabilities:
Accounts receivable - net	-860	-12,528
Inventories - net	-2,442	1,014
Accounts payable	2,453	-920
Commissions payable	1,024	103
Deferred revenue	-777	-599
Accrued expenses	-322	169
Benefit obligations and other	-2,053	-1,514
Net cash provided by (used for) by operating activities	8,963	-1,363
Cash flows used in investing activities, Capital additions - net:	-1,397	-1,591
Cash flows used in financing activities:
Cash dividends	-2,626	-2,692
Payments to bank for borrowings	-3,000	-3,837
Net cash used in financing activities	-5,626	-6,529
Effect of exchange rate changes on cash	870	110
Net increase (decrease) in cash and cash equivalents	2,810	-9,373
Beginning of period	24,491	31,123
End of period	$27,301	$21,750

Note_A_Basis_of_Presentation_o

Note A - Basis of Presentation of Financial Statements	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Basis of Accounting [Text Block]	NOTE A - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and, accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements include the accounts of The Gorman-Rupp Company (the “Company” or “Gorman-Rupp”) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended
	31-Mar-15
	are not necessarily indicative of results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, from which related information herein has been derived.

Note_B_Recently_Issued_Account

Note B - Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE B - RECENTLY ISSUED ACCOUNTING STANDARDS
	In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, “
	Revenue from Contracts with Customers
	,” which supersedes most current revenue recognition guidance, including industry-specific guidance, and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company currently does not expect the adoption of ASU 2014-09 to have a material impact on its consolidated financial statements.

Note_C_Inventories

Note C - Inventories	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE
	C
	- INVENTORIES
	Inventories are stated at the lower of cost or market. The costs for approximately 75% of inventories at March 31, 2015 and December 31, 2014 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out (FIFO) method applied on a consistent basis. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimate of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation.
	The major components of inventories are as follows (net of LIFO reserves of $58.8 million and $57.9 million at,
	March 31, 2015 and December 31, 2014, respectively):
		March 31,	December 31,
	(Dollars in thousands)	2015	2014
	Raw materials and in-process	$14,870	$16,217
	Finished parts	40,253	42,414
	Finished products	42,079	36,129
	Total inventories	$97,202	$94,760

Note_D_Product_Warranties

Note D - Product Warranties	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	NOTE
	D
	- PRODUCT WARRANTIES
	A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures. The Company expenses warranty costs directly to cost of products sold. Changes in the Company’s product warranty liability are:
		March 31,
	(Dollars in thousands)	2015		2014
	Balance at beginning of year	$1,166		$1,170
	Provision	185		488
	Claims	(280	)	(486	)
	Balance at end of period	$1,071		$1,172

Note_E_Pension_and_Other_Postr

Note E - Pension and Other Postretirement Benefits	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE
	E
	- PENSION AND OTHER POSTRETIREMENT BENEFITS
	The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008. Employees hired after this date, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits. Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees.
	The Company also sponsors a non-contributory defined benefit health care plan that provides health benefits to certain domestic and Canadian retirees and their spouses. The Company funds the cost of these benefits as incurred.
	The following tables present the components of net periodic benefit cost:
		Pension benefit				Post Retirement Benefit
		Three Months Ended				Three Months Ended
		March 31,				March 31,
		2015		2014		2015		2014
	(Dollars in thousands)
	Service Cost	$784		$726		$299		$227
	Interest Cost	659		720		198		212
	Expected return on plan assets	(1,067	)	(1,208	)	-		-
	Recognized actuarial loss (gain)	537		458		(163	)	(197	)
	Net Periodic Benefic Cost	$913		$696		$334		$242

Note_F_Accumulated_Other_Compr

Note F - Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Accumulated Other Comprehensive Loss [Text Block]	NOTE
	F
	– ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
	The reclassifications out of accumulated other comprehensive loss as reported in the Consolidated Statements of Income are:
			Three Months Ended March 31,
	(Dollars in thousands)		2015		2014
	Pension and other postretirement benefit:
	Recognized actuarial loss (a)		$355		$261
	Income Tax		(129	)	(87	)
	Net of Income Tax		$226		$174
	(a)	The recognized actuarial loss is included in the computation of net periodic benefit cost. See Note D for additional details.
	PART I – CONTINUED
	ITEM 1.	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – CONTINUED
	NOTE
	F
	– ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
	- CONTINUED
	The components of accumulated other comprehensive loss as reported in the Consolidated Balance Sheets are:
			Currency Translation		Pension and Other		Accumulated Other
			Adjustments		Postretirement		Comprehensive
					Benefit		Income (loss)
	(Dollars in thousands)
	Balance at January 1, 2015		$(4,338	)	$(12,988	)	$(17,326	)
	Reclassifications adjustments		-		355		355
	Current period credit (charge)		(2,836	)	-		(2,836	)
	Income tax expense		-		(129	)	(129	)
	Balance at March 31, 2015		$(7,174	)	$ (12,762	)	$ (19,936	)
			Currency Translation		Pension and Other		Accumulated Other
			Adjustments		Postretirement		Comprehensive
					Benefit		Income (loss)
	(Dollars in thousands)
	Balance at January 1, 2014		$(1,062	)	$(7,399	)	$(8,461	)
	Reclassification adjustments		-		120		120
	Current period credit (charge)		(356	)	141		(215	)
	Income tax expense		-		(87	)	(87	)
	Balance at March 31, 2014		$(1,418	)	$(7,225	)	$(8,643	)

Note_C_Inventories_Tables

Note C - Inventories (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]		March 31,	December 31,
	(Dollars in thousands)	2015	2014
	Raw materials and in-process	$14,870	$16,217
	Finished parts	40,253	42,414
	Finished products	42,079	36,129
	Total inventories	$97,202	$94,760

Note_D_Product_Warranties_Tabl

Note D - Product Warranties (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]		March 31,
	(Dollars in thousands)	2015		2014
	Balance at beginning of year	$1,166		$1,170
	Provision	185		488
	Claims	(280	)	(486	)
	Balance at end of period	$1,071		$1,172

Note_E_Pension_and_Other_Postr1

Note E - Pension and Other Postretirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Costs of Retirement Plans [Table Text Block]		Pension benefit				Post Retirement Benefit
		Three Months Ended				Three Months Ended
		March 31,				March 31,
		2015		2014		2015		2014
	(Dollars in thousands)
	Service Cost	$784		$726		$299		$227
	Interest Cost	659		720		198		212
	Expected return on plan assets	(1,067	)	(1,208	)	-		-
	Recognized actuarial loss (gain)	537		458		(163	)	(197	)
	Net Periodic Benefic Cost	$913		$696		$334		$242

Note_F_Accumulated_Other_Compr1

Note F - Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]		Three Months Ended March 31,
	(Dollars in thousands)	2015		2014
	Pension and other postretirement benefit:
	Recognized actuarial loss (a)	$355		$261
	Income Tax	(129	)	(87	)
	Net of Income Tax	$226		$174
Comprehensive Income (Loss) [Table Text Block]		Currency Translation		Pension and Other		Accumulated Other
		Adjustments		Postretirement		Comprehensive
				Benefit		Income (loss)
	(Dollars in thousands)
	Balance at January 1, 2015	$(4,338	)	$(12,988	)	$(17,326	)
	Reclassifications adjustments	-		355		355
	Current period credit (charge)	(2,836	)	-		(2,836	)
	Income tax expense	-		(129	)	(129	)
	Balance at March 31, 2015	$(7,174	)	$ (12,762	)	$ (19,936	)
		Currency Translation		Pension and Other		Accumulated Other
		Adjustments		Postretirement		Comprehensive
				Benefit		Income (loss)
	(Dollars in thousands)
	Balance at January 1, 2014	$(1,062	)	$(7,399	)	$(8,461	)
	Reclassification adjustments	-		120		120
	Current period credit (charge)	(356	)	141		(215	)
	Income tax expense	-		(87	)	(87	)
	Balance at March 31, 2014	$(1,418	)	$(7,225	)	$(8,643	)

Note_C_Inventories_Details_Tex

Note C - Inventories (Details Textual) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Millions, unless otherwise specified
Percentage of LIFO Inventory		75.00%
Inventory, LIFO Reserve	$58.80	$57.90

Note_C_Inventories_Details

Note C - Inventories (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Raw materials and in-process	$14,870	$16,217
Finished parts	40,253	42,414
Finished products	42,079	36,129
Total inventories	$97,202	$94,760

Note_D_Summary_of_Product_Warr

Note D - Summary of Product Warranties (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Balance at beginning of year	$1,166	$1,170
Provision	185	488
Claims	-280	-486
Balance at end of period	$1,071	$1,172

Note_E_Summary_of_Components_o

Note E - Summary of Components of Net Periodic Benefit Cost (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Pension Plan [Member]
Service Cost	$784	$726
Interest Cost	659	720
Expected return on plan assets	-1,067	-1,208
Recognized actuarial loss (gain)	537	458
Net Periodic Benefic Cost	913	696
Postretirement Benefits [Member]
Service Cost	299	227
Interest Cost	198	212
Recognized actuarial loss (gain)	-163	-197
Net Periodic Benefic Cost	$334	$242

Note_F_Reclassification_out_of

Note F - Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Pension and other postretirement benefit:
Income Tax	($3,638)	($4,878)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Pension and other postretirement benefit:
Recognized actuarial loss (a)	355	261
Income Tax	-129	-87
Net of Income Tax	$226	$174

Note_F_Components_of_Accumulat

Note F - Components of Accumulated Other Comprehensive Income (Loss) as Reported in the Consolidated Balance Sheets (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Balance	($19,936)
Accumulated Other Comprehensive Income Loss [Member]
Balance	-17,326	-8,461
Reclassifications adjustments	355	120
Current period credit (charge)	-2,835	-215
Income tax expense	-129	-87
Balance	-19,936	-8,643
Currency Translation Adjustments [Member]
Balance	-4,338	-1,062
Current period credit (charge)	-2,836	-356
Balance	-7,173	-1,418
Pension And O P E B Adjustments [Member]
Balance	-12,988	-7,399
Reclassifications adjustments	355	120
Current period credit (charge)		141
Income tax expense	-129	-87
Balance	($12,762)	($7,225)