Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | ALLIED MOTION TECHNOLOGIES INC | |
Entity Central Index Key | 46,129 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,452,969 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 17,600 | $ 15,483 |
Trade receivables, net of allowance for doubtful accounts of $379 and $362 at September 30, 2017 and December 31, 2016, respectively | 34,493 | 26,104 |
Inventories | 32,779 | 31,098 |
Prepaid expenses and other assets | 3,096 | 3,120 |
Total current assets | 87,968 | 75,805 |
Property, plant and equipment, net | 38,157 | 37,474 |
Deferred income taxes | 492 | 923 |
Intangible assets, net | 32,776 | 34,252 |
Goodwill | 29,305 | 27,522 |
Other long term assets | 4,343 | 3,943 |
Total assets | 193,041 | 179,919 |
Current liabilities: | ||
Debt obligations | 526 | 936 |
Accounts payable | 17,156 | 13,204 |
Accrued liabilities | 13,742 | 10,678 |
Total current liabilities | 31,424 | 24,818 |
Long-term debt | 61,995 | 70,483 |
Deferred income taxes | 3,129 | 3,266 |
Pension and post-retirement obligations | 4,403 | 4,381 |
Other long term liabilities | 5,386 | 4,685 |
Total liabilities | 106,337 | 107,633 |
Stockholders' Equity: | ||
Common stock, no par value, authorized 50,000 shares; 9,453 and 9,374 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 31,244 | 29,503 |
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding | ||
Retained earnings | 62,033 | 54,786 |
Accumulated other comprehensive loss | (6,573) | (12,003) |
Total stockholders' equity | 86,704 | 72,286 |
Total Liabilities and Stockholders' Equity | $ 193,041 | $ 179,919 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Trade receivables, allowance for doubtful accounts (in dollars) | $ 379 | $ 362 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 50,000 | 50,000 |
Common stock, shares issued | 9,453 | 9,374 |
Common stock, shares outstanding | 9,453 | 9,374 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized shares | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Revenues | $ 64,968 | $ 61,040 | $ 186,657 | $ 190,550 |
Cost of goods sold | 45,422 | 43,133 | 131,529 | 134,274 |
Gross profit | 19,546 | 17,907 | 55,128 | 56,276 |
Operating costs and expenses: | ||||
Selling | 2,822 | 2,431 | 8,135 | 7,490 |
General and administrative | 6,255 | 5,264 | 17,985 | 17,551 |
Engineering and development | 4,389 | 3,961 | 12,984 | 12,185 |
Business development | 123 | 341 | ||
Amortization of intangible assets | 813 | 802 | 2,405 | 2,409 |
Total operating costs and expenses | 14,279 | 12,581 | 41,509 | 39,976 |
Operating income | 5,267 | 5,326 | 13,619 | 16,300 |
Other expense (income): | ||||
Interest expense | 633 | 1,504 | 1,797 | 4,626 |
Other expense, net | 65 | (75) | 135 | (190) |
Total other expense, net | 698 | 1,429 | 1,932 | 4,436 |
Income before income taxes | 4,569 | 3,897 | 11,687 | 11,864 |
Provision for income taxes | (1,512) | (1,076) | (3,746) | (3,495) |
Net income | $ 3,057 | $ 2,821 | $ 7,941 | $ 8,369 |
Basic earnings per share: | ||||
Earnings per share (in dollars per share) | $ 0.33 | $ 0.30 | $ 0.87 | $ 0.90 |
Basic weighted average common shares (in shares) | 9,173 | 9,350 | 9,137 | 9,325 |
Diluted earnings per share: | ||||
Earnings per share (in dollars per share) | $ 0.33 | $ 0.30 | $ 0.86 | $ 0.90 |
Diluted weighted average common shares (in shares) | 9,294 | 9,350 | 9,265 | 9,325 |
Net income | $ 3,057 | $ 2,821 | $ 7,941 | $ 8,369 |
Foreign currency translation adjustment | 1,829 | 383 | 5,608 | 1,346 |
Change in accumulated (loss) income on derivatives | 45 | 66 | (178) | (56) |
Comprehensive income (loss) | $ 4,931 | $ 3,270 | $ 13,371 | $ 9,659 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities: | ||
Net income | $ 7,941 | $ 8,369 |
Adjustments to reconcile net income to net cash provided by operating activities (net of working capital acquired in 2016): | ||
Depreciation and amortization | 7,590 | 7,309 |
Deferred income taxes | (99) | 1,345 |
Stock compensation expense | 1,473 | 1,370 |
Debt issue cost amortization recorded in interest expense | 113 | |
Other | (26) | (455) |
Changes in operating assets and liabilities: | ||
Trade receivables | (6,887) | (5,739) |
Inventories | (379) | 613 |
Prepaid expenses and other assets | 17 | 1,252 |
Accounts payable | 3,106 | (525) |
Accrued liabilities | 2,464 | (3,574) |
Net cash provided by operating activities | 15,313 | 9,965 |
Cash Flows From Investing Activities: | ||
Purchase of property and equipment | (4,220) | (3,694) |
Consideration paid for acquisition, net of cash acquired ($2,329) | (16,049) | |
Net cash used in investing activities | (4,220) | (19,743) |
Cash Flows From Financing Activities: | ||
Borrowings on lines-of-credit, net | (441) | 6,802 |
Principal payments of long-term debt | (9,114) | (5,625) |
Dividends paid to stockholders | (709) | (700) |
Stock transactions under employee benefit stock plans | 355 | 268 |
Net cash (used in) provided by financing activities | (9,909) | 745 |
Effect of foreign exchange rate changes on cash | 933 | 297 |
Net increase (decrease) in cash and cash equivalents | 2,117 | (8,736) |
Cash and cash equivalents at beginning of period | 15,483 | 21,278 |
Cash and cash equivalents at end of period | $ 17,600 | $ 12,542 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Cash acquired from acquisition | $ 2,329 |
BASIS OF PREPARATION AND PRESEN
BASIS OF PREPARATION AND PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
BASIS OF PREPARATION AND PRESENTATION | |
BASIS OF PREPARATION AND PRESENTATION | 1. BASIS OF PREPARATION AND PRESENTATION Allied Motion Technologies Inc. (Allied Motion or the Company) is engaged in the business of designing, manufacturing and selling motion control solutions, which include integrated system solutions as well as individual motion control products, to a broad spectrum of customers throughout the world primarily for the commercial motor, industrial motion, automotive control, medical, and aerospace and defense markets. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars using end of period exchange rates. Changes in reported amounts of assets and liabilities of foreign subsidiaries that occur as a result of changes in exchange rates between foreign subsidiaries’ functional currencies and the U.S. dollar are included in foreign currency translation adjustment. Foreign currency translation adjustment is included in accumulated other comprehensive income, a component of stockholders’ equity in the accompanying condensed consolidated balance sheets. Revenue and expense transactions use an average rate prevailing during the month of the related transaction. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of each Technology Unit (“TU”) are included in the results of operations as incurred. The condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and include all adjustments which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures herein are adequate to make the information presented not misleading. The financial data for the interim periods may not necessarily be indicative of results to be expected for the year. The preparation of financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. It is suggested that the accompanying condensed consolidated financial statements be read in conjunction with the Consolidated Financial Statements and related Notes to such statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 that was previously filed by the Company. Error Correction The Company’s quarterly financial statements for each of the quarters included in its Form 10-Qs for the year ended December 31, 2016 contained an error related to the elimination of intercompany cost of sales. The error was corrected as of December 31, 2016, but since the adjustment was not material to any of the quarters the Form 10-Qs will not be amended. Management has determined the effects to be neither quantitatively or qualitatively material to the financial statements included in any of the Form 10-Qs filed during 2016. The following table illustrates the correction of the error as shown in the statement of operations in Form 10-Q: Year 2016 First Second Third Net income as reported $ $ $ Effect on cost of goods sold ) ) ) Net income as revised $ $ $ The following table illustrates the correction of the error as recorded in the Company’s financial statements during the fourth quarter 2016: Year 2016 Fourth Net income as recorded $ Effect on cost of goods sold Net income as revised $ The third quarter and year to date 2016 financial statements presented have been revised to reflect the error correction. The impact of the correction on basic and fully diluted earnings per share for the third quarter and year to date 2016 was an increase of $0.03 and $0.09, respectively. Reclassifications Certain items in the prior year’s consolidated financial statements and notes to consolidated financial statements have been reclassified to conform to the 2017 presentation. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2017 | |
INVENTORIES | |
INVENTORIES | 2. INVENTORIES Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or net realizable value, as follows (in thousands): September 30, December 31, Parts and raw materials $ $ Work-in-progress Finished goods Less reserves ) ) Inventories $ $ |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 3. STOCK-BASED COMPENSATION Stock Incentive Plans The Company’s Stock Incentive Plans provide for the granting of stock awards, including restricted stock, stock options and stock appreciation rights, to employees and non-employees, including directors of the Company. Restricted Stock For the nine months ended September 30, 2017, 105,785 shares of unvested restricted stock were awarded at a weighted average market value of $22.56. Of the restricted shares granted, 28,025 shares have performance based vesting conditions. The value of the shares is amortized to compensation expense over the related service period, which is normally three years, or over the estimated performance period. Shares of unvested restricted stock are generally forfeited if a recipient leaves the Company before the vesting date. Shares that are forfeited become available for future awards. The following is a summary of restricted stock activity for the nine months ended September 30, 2017: Number of Outstanding at beginning of period Awarded Vested ) Forfeited ) Outstanding at end of period Stock based compensation expense, net of forfeitures of $518 and $395 was recorded for the quarter ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, stock compensation expense, net of forfeitures, of $1,473 and $1,370 was recorded, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2017 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | 4. ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): September 30, December 31, Compensation and fringe benefits $ $ Warranty reserve Income taxes payable Other accrued expenses $ $ |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2017 | |
DEBT OBLIGATIONS | |
DEBT OBLIGATIONS | 5. DEBT OBLIGATIONS Debt obligations consisted of the following (in thousands): September 30, December 31, Current Borrowings China Credit Facility (5.0% at September 30, 2017) $ $ Current borrowings $ $ Long-term Debt Revolving Credit Facility, long term (1) $ $ Unamortized debt issuance costs ) ) Long-term debt $ $ (1) The effective rate of the Revolver is 3.37% at September 30, 2017. Credit Agreement On October 28, 2016, the Company entered into a Credit Agreement (the “Credit Agreement”) for a $125,000 revolving credit facility (the “Revolving Credit Facility”). The Revolving Facility includes a $50,000 accordion amount and has an initial term of five years. HSBC Bank USA, National Association is the administrative agent, HSBC Securities (USA) Inc. is the sole lead arranger, and KeyBank National Association and Wells Fargo Bank, National Association are co-syndication agents. Borrowings under the Revolving Credit Facility are subject to terms defined in the Credit Agreement. Borrowings bear interest at the LIBOR Rate plus a margin of 1.00% to 2.25% or the Prime Rate plus a margin of 0% to 1.25%, in each case depending on the Company’s ratio of total funded indebtedness to Consolidated EBITDA (the “Total Leverage Ratio”). At September 30, 2017, the applicable margin for LIBOR Rate borrowings was 1.75% and the applicable margin for Prime Rate borrowings was 0.75%. In addition, the Company is required to pay a commitment fee of between 0.10% and 0.25% quarterly (currently 0.175%) on the unused portion of the Revolving Credit Facility, also based on the Company’s Total Leverage Ratio. The Credit Agreement contains certain financial covenants related to minimum interest coverage and total leverage ratio at the end of each quarter. The Credit Agreement also includes other covenants and restrictions, including limits on the amount of additional indebtedness, and restrictions on the Company’s ability to merge, consolidate or sell all or substantially all of its assets. The Company was in compliance with all covenants at September 30, 2017. Other The China Facility provides credit of approximately $1,503 (Chinese Renminbi (“RMB”) 10,000). The China Facility is used for working capital and capital equipment needs at the Company’s China operations. The average balance for 2017 was $907 (RMB 6,167). At September 30, 2017, there was approximately $977 (RMB 6,500) available under the facility. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 6. DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During October 2013, the Company entered into two identical interest rate swaps with a combined notional of $25,000 that amortize quarterly to a notional of $6,673 at the September 2018 maturity. One of these interest rate swaps is currently active. The Company terminated the other interest rate swap during October 2016 as part of its debt refinancing. In February 2017, the Company entered into three interest rate swaps with a combined notional of $40,000 that matures in February 2022. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. There was no hedge ineffectiveness recorded in the Company’s earnings during the quarters ended September 30, 2017 and 2016. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company estimates that an additional $211 will be reclassified as an increase to interest expense over the next year. Additionally, the Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 (in thousands): Fair Value Derivative Instruments Balance Sheet Classification September 30, 2017 December 31, 2016 Interest Rate Swaps Other Liabilities $ $ The effect of the Company’s derivative financial instruments on the condensed consolidated statement of income and comprehensive income is as follows (in thousands): Net deferral in OCI of derivatives (effective portion) For the quarter ended For the nine months ended September 30, September 30, Derivative Instruments 2017 2016 2017 2016 Interest Rate Swaps $ ) $ $ ) $ ) Net reclassification from AOCI into income (effective portion) For the quarter ended For the nine months ended Statement of earnings September 30, September 30, classification 2017 2016 2017 2016 Interest expense $ $ $ $ |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
INCOME TAXES | |
INCOME TAXES | 7. INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, settlements with taxing authorities and foreign currency fluctuations. The Company has net operating loss carryforwards in an international jurisdiction expiring in 2017. The Company evaluates the future realizability of the tax loss and credit carryforwards considering the anticipated future earnings and tax planning strategies in the international jurisdictions. The effective income tax rate as a percentage of income before income taxes was 33.1% and 27.6% in the third quarter 2017 and 2016, respectively and 32.1% and 29.5% for the nine months ended September 30, 2017 and 2016, respectively. The 2016 effective tax rates are revised from 29.9% to 27.6% for the third quarter 2016 and from 31.5% to 29.5% for the nine months ended September 30, 2016 to reflect the revised income resulting from the error correction described in Note 1. The effective tax rates include a discrete tax (benefit) provision related to the recognition of the tax effect of share-based payment awards as follows: for the third quarter of 2017 a net discrete tax benefit of (0.2%) and for the third quarter of 2016 a net discrete tax provision 0.2%. For the nine months ended September 30, 2017 and 2016, a net discrete tax benefit of (1.2%) in each period. The effective rate before discrete items varies from the statutory rate due to permanent differences in state taxes and the difference in US and foreign tax rates and the mix of foreign and domestic income. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 8. ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated Other Comprehensive Income for the quarter ended September 30, 2017 and 2016 is comprised of the following (in thousands): Defined Benefit Cash Flow Foreign Currency Total At June 30, 2017 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2017 $ ) $ ) $ ) $ ) Defined Benefit Cash Flow Foreign Currency Total At June 30, 2016 $ ) $ ) $ ) ) Unrealized loss on cash flow hedges — — Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2016 $ ) $ ) $ ) $ ) Accumulated Other Comprehensive Income for the nine months ended September 30, 2017 and 2016 is comprised of the following (in thousands): Defined Cash Flow Foreign Currency Total At December 31, 2016 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2017 $ ) $ ) $ ) $ ) Defined Benefit Cash Flow Foreign Currency Total At December 31, 2015 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2016 $ ) $ ) $ ) $ ) The realized gains relating to the Company’s interest rate swap hedges were reclassified from accumulated other comprehensive income and included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income. |
DIVIDENDS PER SHARE
DIVIDENDS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
DIVIDENDS PER SHARE | |
DIVIDENDS PER SHARE | 9. DIVIDENDS PER SHARE The Company declared a quarterly dividend of $0.025 per share in each of the three quarters of 2017 and 2016. Total year to date dividends declared in 2017 and 2016 were $709 and $708, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE Basic and diluted weighted-average shares outstanding are as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Basic weighted average shares outstanding Dilutive effect of equity awards — — Diluted weighted average shares outstanding For the three and nine months ended September 30, 2017 there were 2,412 and 6,157 common shares, respectively, subject to equity-based awards excluded from the calculation of diluted earnings per share as they would be anti-dilutive. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 11. SEGMENT INFORMATION ASC Topic “Segment Reporting” requires disclosure of operating segments, which as defined, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in one segment for the manufacture and marketing of motion control products for original equipment manufacturers and end user applications. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying condensed consolidated financial statements and within this note. The Company’s wholly owned foreign subsidiaries, located in The Netherlands, Sweden, Germany, Portugal, China and Mexico are included in the accompanying condensed consolidated financial statements. Financial information related to the foreign subsidiaries is summarized below (in thousands): For the three months ended For the nine months ended September 30, September 30, 2017 2016 2017 2016 Revenues derived from foreign subsidiaries $ $ $ $ Identifiable foreign assets were $83,502 and $73,378 as of September 30, 2017 and December 31, 2016, respectively. Revenues derived from foreign subsidiaries and identifiable assets outside of the United States are primarily attributable to Europe. Sales to customers outside of the United States by all subsidiaries were $30,409 and $26,670 during the quarters ended September 30, 2017 and 2016, respectively; and $86,130 and $84,904 for the nine months ended September 30, 2017 and 2016, respectively. For third quarter 2017 and 2016, one customer accounted for 18% and 24% of revenues, respectively; and for the year to date 2017 and 2016 for 19% and 20% of revenues, respectively. As of September 30, 2017 this customer represented 19% of trade receivables. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2017 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 12. RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting pronouncements In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory .” The standard applies to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of the standard at the lower of cost 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. The amendments in ASU 2015-11 more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The standard is effective for fiscal years beginning after December 15, 2016. The Company adopted ASU 2015-11 effective January 1, 2017 and it had no impact on its consolidated financial statements. Recently issued accounting pronouncements In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” . The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. All transition requirements and elections should be applied to hedging relationships existing (that is, hedging relationships in which the hedging instrument has not expired, been sold, terminated, or exercised or the entity has not removed the designation of the hedging relationship) on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” . The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business”. The amendments affect all companies that must determine whether they have acquired or sold a business. The amendments are intended to help companies and evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. The new standard is effective for the Company beginning on January 1, 2018. The Company does not expect the adoption of this ASU to have a material impact on its condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The objective of ASU 2016-15 is to reduce existing diversity in practice by addressing eight specific cash flow issues related to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. If early adopted, an entity must adopt all the amendments in the same period. The Company is currently evaluating the impact of the adoption of ASU 2016-15 on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, which amends the FASB Accounting Standards Codification and creates Topic 842, “ Leases .” The new topic supersedes Topic 840, “ Leases ,” and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosures of key information about leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers” which is a comprehensive new revenue recognition model. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU 2014-09 is effective for our interim and annual reporting periods beginning January 1, 2018, and is to be adopted using either a full retrospective or modified retrospective transition method. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We do not plan to early adopt the guidance. We plan to adopt ASU 2014-09 and its amendments on a modified retrospective basis and are continuing to assess all future impacts of the guidance by reviewing our current contracts with customers to identify potential differences that could result from applying the new guidance. Based on our initial review, we expect that the adoption of ASU 2014-09 will not have a material impact on our consolidated financial statements. A significant majority of our revenue is recorded when we invoice customers and is largely aligned with the meeting of identified performance obligations under ASU 2014-09. Although at this time we don’t expect a material change in our revenue recognition, in the remainder of 2017 we expect to continue to evaluate the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. As we complete our overall assessment, we are evaluating our accounting policies and practices, business processes, systems and controls to determine if changes are necessary to support the new revenue recognition and disclosure requirements. Our assessment will be completed during the year ending December 31, 2017. |
BASIS OF PREPARATION AND PRES19
BASIS OF PREPARATION AND PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
BASIS OF PREPARATION AND PRESENTATION | |
Error Correction | Error Correction The Company’s quarterly financial statements for each of the quarters included in its Form 10-Qs for the year ended December 31, 2016 contained an error related to the elimination of intercompany cost of sales. The error was corrected as of December 31, 2016, but since the adjustment was not material to any of the quarters the Form 10-Qs will not be amended. Management has determined the effects to be neither quantitatively or qualitatively material to the financial statements included in any of the Form 10-Qs filed during 2016. The following table illustrates the correction of the error as shown in the statement of operations in Form 10-Q: Year 2016 First Second Third Net income as reported $ $ $ Effect on cost of goods sold ) ) ) Net income as revised $ $ $ The following table illustrates the correction of the error as recorded in the Company’s financial statements during the fourth quarter 2016: Year 2016 Fourth Net income as recorded $ Effect on cost of goods sold Net income as revised $ The third quarter and year to date 2016 financial statements presented have been revised to reflect the error correction. The impact of the correction on basic and fully diluted earnings per share for the third quarter and year to date 2016 was an increase of $0.03 and $0.09, respectively. |
Reclassifications | Reclassifications Certain items in the prior year’s consolidated financial statements and notes to consolidated financial statements have been reclassified to conform to the 2017 presentation. |
BASIS OF PREPARATION AND PRES20
BASIS OF PREPARATION AND PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
BASIS OF PREPARATION AND PRESENTATION | |
Schedule of correction of the error | The following table illustrates the correction of the error as shown in the statement of operations in Form 10-Q: Year 2016 First Second Third Net income as reported $ $ $ Effect on cost of goods sold ) ) ) Net income as revised $ $ $ The following table illustrates the correction of the error as recorded in the Company’s financial statements during the fourth quarter 2016: Year 2016 Fourth Net income as recorded $ Effect on cost of goods sold Net income as revised $ |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
INVENTORIES | |
Schedule of inventories including costs of materials, direct labor and manufacturing overhead, and stated at the lower of cost (first-in, first-out basis) or net realizable value | Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or net realizable value, as follows (in thousands): September 30, December 31, Parts and raw materials $ $ Work-in-progress Finished goods Less reserves ) ) Inventories $ $ |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
STOCK-BASED COMPENSATION | |
Summary of restricted stock activity | The following is a summary of restricted stock activity for the nine months ended September 30, 2017: Number of Outstanding at beginning of period Awarded Vested ) Forfeited ) Outstanding at end of period |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
ACCRUED LIABILITIES | |
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands): September 30, December 31, Compensation and fringe benefits $ $ Warranty reserve Income taxes payable Other accrued expenses $ $ |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DEBT OBLIGATIONS | |
Schedule of debt obligations | Debt obligations consisted of the following (in thousands): September 30, December 31, Current Borrowings China Credit Facility (5.0% at September 30, 2017) $ $ Current borrowings $ $ Long-term Debt Revolving Credit Facility, long term (1) $ $ Unamortized debt issuance costs ) ) Long-term debt $ $ (1) The effective rate of the Revolver is 3.37% at September 30, 2017. |
DERIVATIVE FINANCIAL INSTRUME25
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets | The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 (in thousands): Fair Value Derivative Instruments Balance Sheet Classification September 30, 2017 December 31, 2016 Interest Rate Swaps Other Liabilities $ $ |
Schedule of effect of the Company's derivative financial instruments on the condensed consolidated statement of income and comprehensive income | The effect of the Company’s derivative financial instruments on the condensed consolidated statement of income and comprehensive income is as follows (in thousands): Net deferral in OCI of derivatives (effective portion) For the quarter ended For the nine months ended September 30, September 30, Derivative Instruments 2017 2016 2017 2016 Interest Rate Swaps $ ) $ $ ) $ ) Net reclassification from AOCI into income (effective portion) For the quarter ended For the nine months ended Statement of earnings September 30, September 30, classification 2017 2016 2017 2016 Interest expense $ $ $ $ |
ACCUMULATED OTHER COMPREHENSI26
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
Schedule of accumulated other comprehensive income | Accumulated Other Comprehensive Income for the quarter ended September 30, 2017 and 2016 is comprised of the following (in thousands): Defined Benefit Cash Flow Foreign Currency Total At June 30, 2017 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2017 $ ) $ ) $ ) $ ) Defined Benefit Cash Flow Foreign Currency Total At June 30, 2016 $ ) $ ) $ ) ) Unrealized loss on cash flow hedges — — Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2016 $ ) $ ) $ ) $ ) Accumulated Other Comprehensive Income for the nine months ended September 30, 2017 and 2016 is comprised of the following (in thousands): Defined Cash Flow Foreign Currency Total At December 31, 2016 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2017 $ ) $ ) $ ) $ ) Defined Benefit Cash Flow Foreign Currency Total At December 31, 2015 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At September 30, 2016 $ ) $ ) $ ) $ ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted weighted-average shares outstanding | Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Basic weighted average shares outstanding Dilutive effect of equity awards — — Diluted weighted average shares outstanding |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
SEGMENT INFORMATION | |
Schedule of financial information related to the foreign subsidiaries | Financial information related to the foreign subsidiaries is summarized below (in thousands): For the three months ended For the nine months ended September 30, September 30, 2017 2016 2017 2016 Revenues derived from foreign subsidiaries $ $ $ $ |
BASIS OF PREPARATION AND PRES29
BASIS OF PREPARATION AND PRESENTATION - ERROR CORRECTION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error corrections and prior period adjustments restatement | |||||||
Net income | $ 3,057 | $ 709 | $ 2,821 | $ 3,193 | $ 2,355 | $ 7,941 | $ 8,369 |
Effect on cost of goods sold | $ 45,422 | 43,133 | $ 131,529 | $ 134,274 | |||
Previously reported | |||||||
Error corrections and prior period adjustments restatement | |||||||
Net income | 1,489 | 2,520 | 2,942 | 2,127 | |||
Effect of adjustment | |||||||
Error corrections and prior period adjustments restatement | |||||||
Effect on cost of goods sold | $ 780 | $ (301) | $ (251) | $ (228) | |||
Increase in earnings per share | $ 0.03 | $ 0.09 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
INVENTORIES | ||
Parts and raw materials | $ 23,914 | $ 23,978 |
Work-in-process | 7,948 | 6,628 |
Finished goods | 5,380 | 4,928 |
Inventory, gross | 37,242 | 35,534 |
Less reserves | (4,463) | (4,436) |
Inventories | $ 32,779 | $ 31,098 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Additional disclosures | ||||
Compensation expense, net of forfeitures | $ 1,473 | $ 1,370 | ||
Restricted Stock | ||||
STOCK-BASED COMPENSATION | ||||
Weighted average market value (in dollars per share) | $ 22.56 | |||
Service period over which value of the shares is amortized to compensation expense | 3 years | |||
Number of Shares | ||||
Outstanding at beginning of period (in shares) | 308,542 | |||
Awarded (in shares) | 105,785 | |||
Vested (in shares) | (123,716) | |||
Forfeited (in shares) | (16,403) | |||
Outstanding at end of period (in shares) | 274,208 | 274,208 | ||
Additional disclosures | ||||
Compensation expense, net of forfeitures | $ 518 | $ 395 | $ 1,473 | $ 1,370 |
Restricted Stock | Performance based vesting | ||||
Number of Shares | ||||
Awarded (in shares) | 28,025 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ACCRUED LIABILITIES | ||
Compensation and fringe benefits | $ 6,471 | $ 7,379 |
Warranty reserve | 924 | 830 |
Income taxes payable | 2,470 | 183 |
Other accrued expenses | 3,877 | 2,286 |
Accrued liabilities | $ 13,742 | $ 10,678 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) ¥ in Thousands, $ in Thousands | Oct. 28, 2016USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Obligations | |||||
Current borrowings | $ 526 | $ 936 | |||
Long-term debt | 61,995 | 70,483 | |||
Unamortized debt issuance costs | (609) | (720) | |||
Revolving Credit Facility | |||||
Debt Obligations | |||||
Long-term debt | $ 62,604 | 71,203 | |||
Maximum borrowing capacity | $ 125,000 | ||||
Commitment fees on unused portion of the Revolving credit facility ( as a percent) | 0.175% | 0.175% | |||
Revolving Credit Facility | Minimum | |||||
Debt Obligations | |||||
Commitment fees on unused portion of the Revolving credit facility ( as a percent) | 0.10% | 0.10% | |||
Revolving Credit Facility | Maximum | |||||
Debt Obligations | |||||
Commitment fees on unused portion of the Revolving credit facility ( as a percent) | 0.25% | 0.25% | |||
Revolving Credit Facility | LIBOR | |||||
Debt Obligations | |||||
Applicable margin (as a percent) | 1.75% | 1.75% | |||
Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Obligations | |||||
Applicable margin (as a percent) | 1.00% | ||||
Revolving Credit Facility | LIBOR | Maximum | |||||
Debt Obligations | |||||
Applicable margin (as a percent) | 2.25% | ||||
Revolving Credit Facility | Prime Rate | |||||
Debt Obligations | |||||
Applicable margin (as a percent) | 0.75% | 0.75% | |||
Revolving Credit Facility | Prime Rate | Minimum | |||||
Debt Obligations | |||||
Applicable margin (as a percent) | 0.00% | ||||
Revolving Credit Facility | Prime Rate | Maximum | |||||
Debt Obligations | |||||
Applicable margin (as a percent) | 1.25% | ||||
Term Loan | |||||
Debt Obligations | |||||
Effective rate (as a percent) | 3.37% | 3.37% | |||
Maximum borrowing capacity | $ 50,000 | ||||
Debt instrument term | 5 years | ||||
China Credit Facility | |||||
Debt Obligations | |||||
Current borrowings | $ 526 | $ 936 | |||
Interest rate at period end (as a percent) | 5.00% | 5.00% | |||
Maximum borrowing capacity | ¥ 10,000 | $ 1,503 | |||
Average outstanding borrowings | 6,167 | $ 907 | |||
Available borrowing capacity | ¥ 6,500 | $ 977 |
DERIVATIVE FINANCIAL INSTRUME34
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Interest Rate Swaps $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Feb. 28, 2017USD ($)derivative | Dec. 31, 2016USD ($) | Oct. 31, 2013USD ($)derivative | |
Derivative financial instruments | |||||||
Number of derivative instruments | derivative | 3 | 2 | |||||
Notional amount of interest rate swap derivatives | $ 25,000 | ||||||
Notional amount of interest rate swap derivatives at maturity | $ 40,000 | $ 6,673 | |||||
Hedge ineffectiveness recorded in earnings | $ 0 | $ 0 | |||||
Estimated amount to be reclassified as an increase to interest expense | $ (211) | ||||||
Effect of derivative financial instruments on the condensed consolidated statement of income and comprehensive income | |||||||
Net deferral in OCI of derivatives (effective portion) | (34) | 39 | (417) | $ (145) | |||
Interest expense | |||||||
Effect of derivative financial instruments on the condensed consolidated statement of income and comprehensive income | |||||||
Net reclassification from AOCI into income (effective portion) | 79 | $ 27 | 239 | $ 89 | |||
Other Liabilities | |||||||
Derivative financial instruments | |||||||
Fair value of derivative liability | $ 208 | $ 208 | $ 30 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective income tax rate | ||||
Effective income tax rate (as a percent) | 33.10% | 27.60% | 32.10% | 29.50% |
Excess discreate tax (benefit) provision on share-based payment awards (as a percent) | (0.20%) | 0.20% | (1.20%) | (1.20%) |
Previously reported | ||||
Effective income tax rate | ||||
Effective income tax rate (as a percent) | 29.90% | 31.50% |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income | ||||
Balances | $ 72,286 | |||
Balances | $ 86,704 | 86,704 | ||
Total | ||||
Accumulated Other Comprehensive Income | ||||
Balances | (8,447) | $ (9,036) | (12,003) | $ (9,877) |
Unrealized loss on cash flow hedges | (34) | 39 | (417) | (145) |
Amounts reclassified from AOCI | 79 | 27 | 239 | 89 |
Foreign currency translation gain | 1,829 | 383 | 5,608 | 1,346 |
Balances | (6,573) | (8,587) | (6,573) | (8,587) |
Defined Benefit Plan Liability | ||||
Accumulated Other Comprehensive Income | ||||
Balances | (822) | (688) | (822) | (688) |
Balances | (822) | (688) | (822) | (688) |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income | ||||
Balances | (253) | (149) | (30) | (27) |
Unrealized loss on cash flow hedges | (34) | 39 | (417) | (145) |
Amounts reclassified from AOCI | 79 | 27 | 239 | 89 |
Balances | (208) | (83) | (208) | (83) |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income | ||||
Balances | (7,372) | (8,199) | (11,151) | (9,162) |
Foreign currency translation gain | 1,829 | 383 | 5,608 | 1,346 |
Balances | $ (5,543) | $ (7,816) | $ (5,543) | $ (7,816) |
DIVIDENDS PER SHARE (Details)
DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
DIVIDENDS PER SHARE | ||||||||
Dividends declared (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | ||
Total dividends declared | $ 709 | $ 708 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average number of shares outstanding reconciliation | ||||
Basic weighted average shares outstanding (in shares) | 9,173 | 9,350 | 9,137 | 9,325 |
Dilutive effect of equity awards (in shares) | 121 | 128 | ||
Diluted weighted average shares outstanding (in shares) | 9,294 | 9,350 | 9,265 | 9,325 |
Equity awards excluded from the calculation of diluted earnings per share (in shares) | 2,412 | 6,157 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment information | |||||
Number of operating segments | segment | 1 | ||||
Revenues derived from foreign subsidiaries | $ 64,968 | $ 61,040 | $ 186,657 | $ 190,550 | |
Identifiable assets | $ 193,041 | $ 193,041 | $ 179,919 | ||
Revenues | |||||
Segment information | |||||
Percentage of concentration risk | 18.00% | 24.00% | 19.00% | 20.00% | |
Trade receivables | |||||
Segment information | |||||
Percentage of concentration risk | 19.00% | ||||
Outside the United States | |||||
Segment information | |||||
Revenues derived from foreign subsidiaries | $ 30,409 | $ 26,670 | $ 86,130 | $ 84,904 | |
Wholly owned foreign subsidiaries | |||||
Segment information | |||||
Revenues derived from foreign subsidiaries | 27,265 | $ 23,218 | 77,360 | $ 75,138 | |
Identifiable assets | $ 83,502 | $ 83,502 | $ 73,378 |