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) |