Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 07, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-04041 | |
Entity Registrant Name | ALLIENT INC | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0518115 | |
Entity Address, Address Line One | 495 Commerce Drive | |
Entity Address, City or Town | Amherst | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14228 | |
City Area Code | 716 | |
Local Phone Number | 242-8634 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | ALNT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,844,133 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000046129 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 31,292 | $ 31,901 |
Trade receivables, net of provision for credit losses of $1,121 and $1,240 at June 30, 2024 and December 31, 2023, respectively | 82,400 | 85,127 |
Inventories | 121,653 | 117,686 |
Prepaid expenses and other assets | 14,087 | 13,437 |
Total current assets | 249,432 | 248,151 |
Property, plant, and equipment, net | 69,598 | 67,463 |
Deferred income taxes | 7,205 | 7,760 |
Intangible assets, net | 107,093 | 111,373 |
Goodwill | 132,914 | 131,338 |
Operating lease assets | 21,798 | 24,032 |
Other long-term assets | 7,726 | 7,425 |
Total Assets | 595,766 | 597,542 |
Current liabilities: | ||
Accounts payable | 32,883 | 39,129 |
Accrued liabilities | 31,125 | 56,488 |
Total current liabilities | 64,008 | 95,617 |
Long-term debt | 236,908 | 218,402 |
Deferred income taxes | 4,462 | 4,337 |
Pension and post-retirement obligations | 2,752 | 2,679 |
Operating lease liabilities | 17,457 | 19,532 |
Other long-term liabilities | 4,464 | 5,400 |
Total liabilities | 330,051 | 345,967 |
Stockholders' Equity: | ||
Common stock, no par value, authorized 50,000 shares; 16,841 and 16,308 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 109,203 | 95,937 |
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding | ||
Retained earnings | 172,862 | 165,813 |
Accumulated other comprehensive loss | (16,350) | (10,175) |
Total stockholders' equity | 265,715 | 251,575 |
Total Liabilities and Stockholders' Equity | $ 595,766 | $ 597,542 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Trade receivables, net of provision for credit losses | $ 1,121 | $ 1,240 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 50,000 | 50,000 |
Common stock, shares issued | 16,841 | 16,308 |
Common stock, shares outstanding | 16,841 | 16,308 |
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 INCOME AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME | ||||
Revenues | $ 136,032 | $ 146,769 | $ 282,745 | $ 292,318 |
Cost of goods sold | 95,356 | 100,792 | 194,692 | 200,507 |
Gross profit | 40,676 | 45,977 | 88,053 | 91,811 |
Operating costs and expenses: | ||||
Selling | 6,662 | 6,301 | 12,960 | 12,333 |
General and administrative | 14,142 | 14,162 | 28,582 | 28,982 |
Engineering and development | 10,293 | 9,952 | 21,360 | 20,339 |
Business development | 1,569 | 400 | 1,926 | 597 |
Amortization of intangible assets | 3,131 | 3,142 | 6,246 | 6,151 |
Total operating costs and expenses | 35,797 | 33,957 | 71,074 | 68,402 |
Operating income | 4,879 | 12,020 | 16,979 | 23,409 |
Other expense, net: | ||||
Interest expense | 3,384 | 3,162 | 6,772 | 6,145 |
Other expense (income), net | 46 | (42) | (63) | 145 |
Total other expense, net | 3,430 | 3,120 | 6,709 | 6,290 |
Income before income taxes | 1,449 | 8,900 | 10,270 | 17,119 |
Income tax provision | (299) | (2,131) | (2,218) | (4,035) |
Net income | $ 1,150 | $ 6,769 | $ 8,052 | $ 13,084 |
Basic earnings per share: | ||||
Earnings per share | $ 0.07 | $ 0.42 | $ 0.49 | $ 0.82 |
Basic weighted average common shares | 16,567 | 15,969 | 16,480 | 15,921 |
Diluted earnings per share: | ||||
Earnings per share | $ 0.07 | $ 0.42 | $ 0.49 | $ 0.81 |
Diluted weighted average common shares | 16,583 | 16,219 | 16,540 | 16,178 |
Net income | $ 1,150 | $ 6,769 | $ 8,052 | $ 13,084 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (1,178) | (426) | (5,586) | 928 |
(Loss) gain on derivatives, net of tax | (511) | 707 | (589) | (426) |
Comprehensive (loss) income | $ (539) | $ 7,050 | $ 1,877 | $ 13,586 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Retained Earnings | Foreign Currency Translation Adjustments | Accumulated income (loss) on derivatives | Pension adjustments | Total |
Balance at the beginning at Dec. 31, 2022 | $ 83,852 | $ 143,576 | $ (16,925) | $ 5,556 | $ (594) | $ 215,465 |
Balance at the beginning (in shares) at Dec. 31, 2022 | 15,978 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock transactions under employee benefit stock plans | $ 1,246 | 1,246 | ||||
Stock transactions under employee benefit stock plans (in shares) | 31 | |||||
Issuance of restricted stock, net of forfeitures | $ (34) | (34) | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 103 | |||||
Share issuance in connection with acquisitions | $ 6,250 | 6,250 | ||||
Share issuance in connection with acquisitions (in shares) | 185 | |||||
Stock-based compensation expense | $ 1,267 | 1,267 | ||||
Shares withheld for payment of employee payroll taxes | $ (146) | (146) | ||||
Shares withheld for payment of employee payroll taxes (in shares) | (4) | |||||
Comprehensive loss | 1,354 | (1,565) | (211) | |||
Tax effect of derivative transactions | 432 | 432 | ||||
Net income | 6,315 | 6,315 | ||||
Dividends to stockholders | (403) | (403) | ||||
Balance at the ending at Mar. 31, 2023 | $ 92,435 | 149,488 | (15,571) | 4,423 | (594) | 230,181 |
Balance at the ending (in shares) at Mar. 31, 2023 | 16,293 | |||||
Balance at the beginning at Dec. 31, 2022 | $ 83,852 | 143,576 | (16,925) | 5,556 | (594) | 215,465 |
Balance at the beginning (in shares) at Dec. 31, 2022 | 15,978 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 13,084 | |||||
Balance at the ending at Jun. 30, 2023 | $ 92,483 | 155,772 | (15,997) | 5,130 | (594) | 236,794 |
Balance at the ending (in shares) at Jun. 30, 2023 | 16,268 | |||||
Balance at the beginning at Mar. 31, 2023 | $ 92,435 | 149,488 | (15,571) | 4,423 | (594) | 230,181 |
Balance at the beginning (in shares) at Mar. 31, 2023 | 16,293 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of restricted stock, net of forfeitures | $ 11 | 11 | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 14 | |||||
Stock-based compensation expense | $ 1,544 | 1,544 | ||||
Shares withheld for payment of employee payroll taxes | $ (1,507) | (1,507) | ||||
Shares withheld for payment of employee payroll taxes (in shares) | (39) | |||||
Comprehensive loss | (426) | 930 | 504 | |||
Tax effect of derivative transactions | (223) | (223) | ||||
Net income | 6,769 | 6,769 | ||||
Dividends to stockholders | (485) | (485) | ||||
Balance at the ending at Jun. 30, 2023 | $ 92,483 | 155,772 | (15,997) | 5,130 | (594) | 236,794 |
Balance at the ending (in shares) at Jun. 30, 2023 | 16,268 | |||||
Balance at the beginning at Dec. 31, 2023 | $ 95,937 | 165,813 | (13,256) | 3,425 | (344) | $ 251,575 |
Balance at the beginning (in shares) at Dec. 31, 2023 | 16,308 | 16,308 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock transactions under employee benefit stock plans | $ 1,564 | $ 1,564 | ||||
Stock transactions under employee benefit stock plans (in shares) | 58 | |||||
Issuance of restricted stock, net of forfeitures | $ (139) | (139) | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 167 | |||||
Share issuance in connection with acquisitions | $ 6,250 | 6,250 | ||||
Share issuance in connection with acquisitions (in shares) | 203 | |||||
Share issuance to settle contingent consideration | $ 4,874 | 4,874 | ||||
Share issuance to settle contingent consideration (in shares) | 174 | |||||
Stock-based compensation expense | $ 1,211 | 1,211 | ||||
Shares withheld for payment of employee payroll taxes | $ (121) | (121) | ||||
Shares withheld for payment of employee payroll taxes (in shares) | (4) | |||||
Comprehensive loss | (4,408) | (102) | (4,510) | |||
Tax effect of derivative transactions | 24 | 24 | ||||
Net income | 6,902 | 6,902 | ||||
Dividends to stockholders | (500) | (500) | ||||
Balance at the ending at Mar. 31, 2024 | $ 109,576 | 172,215 | (17,664) | 3,347 | (344) | 267,130 |
Balance at the ending (in shares) at Mar. 31, 2024 | 16,906 | |||||
Balance at the beginning at Dec. 31, 2023 | $ 95,937 | 165,813 | (13,256) | 3,425 | (344) | $ 251,575 |
Balance at the beginning (in shares) at Dec. 31, 2023 | 16,308 | 16,308 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 8,052 | |||||
Balance at the ending at Jun. 30, 2024 | $ 109,203 | 172,862 | (18,842) | 2,836 | (344) | $ 265,715 |
Balance at the ending (in shares) at Jun. 30, 2024 | 16,841 | 16,841 | ||||
Balance at the beginning at Mar. 31, 2024 | $ 109,576 | 172,215 | (17,664) | 3,347 | (344) | $ 267,130 |
Balance at the beginning (in shares) at Mar. 31, 2024 | 16,906 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of restricted stock, net of forfeitures (in shares) | (23) | |||||
Stock-based compensation expense | $ 1,073 | 1,073 | ||||
Shares withheld for payment of employee payroll taxes | $ (1,446) | (1,446) | ||||
Shares withheld for payment of employee payroll taxes (in shares) | (42) | |||||
Comprehensive loss | (1,178) | (673) | (1,851) | |||
Tax effect of derivative transactions | 162 | 162 | ||||
Net income | 1,150 | 1,150 | ||||
Dividends to stockholders | (503) | (503) | ||||
Balance at the ending at Jun. 30, 2024 | $ 109,203 | $ 172,862 | $ (18,842) | $ 2,836 | $ (344) | $ 265,715 |
Balance at the ending (in shares) at Jun. 30, 2024 | 16,841 | 16,841 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||
Dividends to stockholders (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.025 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities: | ||
Net income | $ 8,052 | $ 13,084 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 12,801 | 12,535 |
Deferred income taxes | 18 | (14) |
Stock-based compensation expense | 2,284 | 2,811 |
Debt issue cost amortization recorded in interest expense | 261 | 150 |
Other | 2,368 | 685 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Trade receivables | 5,137 | (11,151) |
Inventories | 941 | 832 |
Prepaid expenses and other assets | (461) | 287 |
Accounts payable | (7,884) | 2,822 |
Accrued liabilities | (6,140) | (4,768) |
Net cash provided by operating activities | 17,377 | 17,273 |
Cash Flows From Investing Activities: | ||
Consideration paid for acquisitions, net of cash acquired | (25,231) | (6,250) |
Purchase of property and equipment | (5,328) | (6,118) |
Net cash used in investing activities | (30,559) | (12,368) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of long-term debt | 76,898 | 4,000 |
Principal payments of long-term debt and finance lease obligations | (56,230) | (12,567) |
Payment of contingent consideration | (2,450) | |
Payment of debt issuance costs | (2,329) | |
Dividends paid to stockholders | (1,008) | (872) |
Tax withholdings related to net share settlements of restricted stock | (1,567) | (1,653) |
Net cash provided by (used in) financing activities | 13,314 | (11,092) |
Effect of foreign exchange rate changes on cash | (741) | (307) |
Net decrease in cash and cash equivalents | (609) | (6,494) |
Cash and cash equivalents at beginning of period | 31,901 | 30,614 |
Cash and cash equivalents at end of period | 31,292 | 24,120 |
Supplemental disclosure of cash flow information: | ||
Stock issued for acquisitions | 6,250 | 6,250 |
Stock issued to settle contingent consideration | 4,874 | |
Property, plant and equipment purchases in accounts payable or accrued expenses | 941 | $ 660 |
Debt issuance costs in accounts payable or accrued expenses | $ 164 |
BASIS OF PREPARATION AND PRESEN
BASIS OF PREPARATION AND PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
BASIS OF PREPARATION AND PRESENTATION | |
BASIS OF PREPARATION AND PRESENTATION | 1. BASIS OF PREPARATION AND PRESENTATION Allient Inc. (“Allient”) or (“The Company”) is engaged in the business of designing, manufacturing, and selling precision motion, control, power and structural composites to provide integrated system solutions as well as individual products, to a broad spectrum of customers throughout the world primarily for the industrial, vehicle, 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 intercompany 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 the 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 loss, a component of stockholders’ equity in the accompanying condensed consolidated statements of stockholders’ equity. 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 of the foreign subsidiaries are included in the results of operations as incurred in other expense, net. 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 (“SEC”) 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 materially 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, 2023 that was previously filed by the Company. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
ACQUISITIONS | |
ACQUISITIONS | 2. ACQUISITIONS On January 11, 2024, the Company acquired 100% of the outstanding shares of SNC Manufacturing Co., Inc. (a Wisconsin corporation) and Acutran de Mexico, S.A. de C.V. (a Mexican corporation), (collectively “SNC”), a premier designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation and energy, including electric utilities and renewable energy. The initial purchase price consisted of $20.0 million in cash paid at closing, subject to customary post-closing working capital adjustments. The purchase price allocation is subject to adjustments based on a final determination of certain tax matters. Measurement period adjustments to the initial purchase price allocation were made during the second quarter of 2024 that resulted in a decrease of the purchase price of . An adjustment was also made to reduce inventory by The Company incurred $300 of transaction costs related to the acquisition during the six months ended June 30, 2024, which are included in business development on the condensed consolidated statements of income and comprehensive (loss) income. The operating results of the acquisition are included in the condensed consolidated financial statements beginning on the date of the acquisition. Revenue of SNC included within the condensed consolidated statements of income and comprehensive (loss) income for the three months ended June 30, 2024 was Cash and cash equivalents $ 881 Trade receivables 3,467 Inventories 9,100 Prepaid expenses and other assets 496 Property, plant, and equipment 4,258 Operating lease assets 378 Intangible assets 2,900 Goodwill 2,685 Other current liabilities (3,188) Deferred revenue (55) Operating lease liabilities (378) Net deferred income tax liabilities (702) Other noncurrent liabilities (118) Net purchase price $ 19,724 The preliminary fair values of the assets acquired were determined using one of three valuation approaches: market, income or cost. The selection of a particular method for a given asset depended on the reliability of available data and the nature of the asset, among other considerations. The market approach estimates the value for a subject asset based on available market pricing for comparable assets. The income approach estimates the value for a subject asset based on the present value of cash flows projected to be generated by the asset. The projected cash flows were discounted at a required rate of return that reflects the relative risk of the asset and the time value of money. The projected cash flows for each asset considered multiple factors from the perspective of a marketplace participant including revenue projections from existing customers, attrition trends, technology life-cycle assumptions, marginal tax rates and expected profit margins considering historical and expected margins. The cost approach estimates the value for a subject asset based on the cost to replace the asset and reflects the estimated reproduction or replacement cost for the asset, less an allowance for loss in value due to depreciation or obsolescence, with specific consideration given to economic obsolescence if indicated. These fair value measurement approaches are based on significant unobservable inputs, including management estimates and assumptions. The intangible assets acquired consist of $1,500 of customers lists, $600 of trade name, and $800 of technology, which are being amortized over 12, 10, and 10 years , respectively. Goodwill generated is related to the assembled workforce, synergies between Allient’s other operations and SNC that are expected to occur as a result of the combined engineering knowledge, the ability of each of the operations to integrate each other’s products into more fully integrated system solutions, and Allient’s ability to utilize SNC’s management knowledge in providing complementary product offerings to the Company’s customers. The goodwill resulting from the acquisition is not tax deductible. On September 22, 2023, the Company acquired 100% of the ownership interest in Sierramotion Inc. (“Sierramotion”), a company headquartered in California, that specializes in designing and engineering turn-key motion components and mechatronic solutions for robotic, medical, industrial, defense, semiconductor, and other precision applications. The preliminary purchase price for Sierramotion of million included contingent consideration payable which was paid in the first quarter of 2024 (see Note 12 for breakout of payment) and at closing consisted of a combination of cash and Company stock. The intangible assets and goodwill are expected to be deductible for tax purposes. The preliminary purchase price allocation is subject to adjustments based on a determination of certain tax matters. Transaction costs for the acquisition were not material. The operating results of this acquisition are included in the condensed consolidated financial statements beginning on the acquisition date and the revenue and earnings in the current year periods presented are not material. On January 3, 2024, the final deferred acquisition payment for Spectrum of $12,500 (comprised of 50% cash and 50% Company stock) was paid. The following pro forma financial information presents the combined resulted of operations if the SNC acquisition had occurred as of January 1, 2023 and the Sierramotion acquisition had occurred as of January 1, 2022: Three months ended Six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Revenues $ 136,032 $ 156,872 $ 284,039 $ 312,605 Income before income taxes $ 1,599 $ 9,115 $ 10,989 $ 17,934 The pro forma information includes certain adjustments, including depreciation and amortization expense, interest expense, and certain other adjustments, together with related income tax effects. The pro forma amounts do not reflect adjustments for anticipated operating efficiencies that the Company expected to or has subsequently achieved as a result of these acquisitions. The pro forma financial information is for informational purposes only and does not purport to present what the Company’s results would have been had these transactions occurred on the date presented or to project the combined company’s results of operations or financial position for future periods. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | 3. REVENUE RECOGNITION Performance Obligations The Company considers control of most products to transfer at a single point in time when control is transferred to the customer, generally when the products are shipped in accordance with an agreement and/or purchase order. Control is defined as the ability to direct the use of and obtain substantially all of the remaining benefits of the product. The Company satisfies its performance obligations under a contract with a customer by transferring goods and services in exchange for monetary consideration from the customer. The Company considers the customer’s purchase order, and the Company’s corresponding sales order acknowledgment as the contract with the customer. For some customers, control, and a sale, is transferred at a point in time when the product is delivered to a customer. For a limited number of contracts, for which revenue derived is not material in the periods presented, the Company recognizes revenue over time in proportion to costs incurred. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Nature of Goods and Services The Company designs, manufactures, and sells precision motion, control, power, and structural components to provide integrated system solutions as well as individual products to end customers and original equipment manufacturers (“OEM’s”) through the Company’s own direct sales force and authorized manufacturers’ representatives and distributors. The Company’s products include brushed and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, incremental and absolute optical encoders, active and passive filters for power quality and harmonic issues, transformers, and other controlled motion-related products. The Company’s target markets include Industrial, Vehicle, Medical, and Aerospace & Defense Determining the Transaction Price The majority of the Company’s contracts have an original duration of less than one year. For these contracts, the Company applies the practical expedient and therefore does not consider the effects of the time value of money. For multiyear contracts, the Company uses judgment to determine whether there is a significant financing component. These contracts are generally those in which the customer has made an up-front payment. Contracts that management determines to include a significant financing component are discounted at the Company’s incremental borrowing rate. The Company incurs interest expense and accrues a contract liability. As the Company satisfies performance obligations and recognizes revenue from these contracts, interest expense is recognized simultaneously. Management does not have any contracts that include a significant financing component as of June 30, 2024 and December 31, 2023. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into geographical regions and target markets. The Company determines that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted below in Note 18, Segment Information A disaggregation of revenue by target market and geography is provided below: Three months ended Six months ended June 30, June 30, Target Market 2024 2023 2024 2023 Industrial $ 63,484 $ 65,588 $ 133,078 $ 128,845 Vehicle 28,662 34,739 63,316 65,570 Medical 19,235 20,887 38,321 44,562 Aerospace & Defense 18,477 18,979 35,295 40,266 Distribution and Other 6,174 6,576 12,735 13,075 Total $ 136,032 $ 146,769 $ 282,745 $ 292,318 Three months ended Six months ended June 30, June 30, Geography 2024 2023 2024 2023 North America (primarily U.S.) $ 91,920 $ 100,965 $ 191,623 $ 198,332 Europe 37,145 38,326 77,805 78,223 Asia-Pacific 6,967 7,478 13,317 15,763 Total $ 136,032 $ 146,769 $ 282,745 $ 292,318 Contract Balances When the timing of the Company’s delivery of product is different from the timing of the payments made by customers, the Company recognizes either a contract asset (performance precedes customer payment) or a contract liability (customer payment precedes performance). Typically, contracts are paid in arrears and are recognized as receivables after the Company considers whether a significant financing component exists. The opening and closing balances of the Company’s contract liabilities are as follows: June 30, December 31, 2024 2023 Contract liabilities in accrued liabilities $ 2,467 $ 2,137 Contract liabilities in other long-term liabilities 2 8 $ 2,469 $ 2,145 The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Significant Payment Terms The Company’s contracts with its customers state the final terms of the sale, including the description, quantity, and price of each product or service purchased. Payments are typically due in full within 30-60 days of delivery. Since the customer agrees to a stated rate and price in the contract that do not vary over the contract, the majority of contracts do not contain variable consideration. Returns, Refunds, and Warranties In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The Company establishes provisions for estimated returns and warranties. All contracts include a standard warranty clause to guarantee that the product complies with agreed specifications. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES | |
INVENTORIES | 4. 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: June 30, December 31, 2024 2023 Parts and raw materials $ 89,463 $ 87,381 Work-in-process 11,212 11,456 Finished goods 20,978 18,849 $ 121,653 $ 117,686 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2024 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 5. PROPERTY, PLANT AND EQUIPMENT Property, plant, and equipment is classified as follows: June 30, December 31, Useful lives 2024 2023 Land $ 1,776 $ 973 Building and improvements 5 - 39 years 28,870 26,201 Machinery, equipment, tools and dies 3 - 15 years 104,174 99,711 Construction in progress 8,210 9,300 Furniture, fixtures and other 3 - 10 years 24,767 24,439 167,797 160,624 Less accumulated depreciation (98,199) (93,161) Property, plant, and equipment, net $ 69,598 $ 67,463 Depreciation expense was $3,185 and $3,248 for the three months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024 and 2023, depreciation expense was approximately $6,355 and $6,384, respectively. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2024 | |
GOODWILL | |
GOODWILL | 6. GOODWILL The change in the carrying amount of goodwill for the six months ended June 30, 2024 is as follows: June 30, 2024 Beginning balance $ 131,338 Goodwill acquired 2,752 Impact of measurement period adjustments of acquisitions (Note 2) (67) Effect of foreign currency translation (1,109) Ending balance $ 132,914 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 7. INTANGIBLE ASSETS Intangible assets on the Company’s condensed consolidated balance sheets consist of the following: Weighted Average June 30, 2024 December 31, 2023 Amortization Gross Accumulated Net Book Gross Accumulated Net Book Period Amount Amortization Value Amount Amortization Value Customer lists 14.3 years $ 117,489 $ (46,308) $ 71,181 $ 116,831 $ (42,421) $ 74,410 Trade name 13.9 years 16,054 (8,246) 7,808 15,572 (7,916) 7,656 Design and technologies 10.6 years 41,883 (13,779) 28,104 41,480 (12,173) 29,307 Total $ 175,426 $ (68,333) $ 107,093 $ 173,883 $ (62,510) $ 111,373 Amortization expense for intangible assets was $3,131 and $3,142 for the three months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024 and 2023, amortization expense was Estimated future intangible asset amortization expense as of June 30, 2024 is as follows: Year ending December 31, Total Estimated Amortization Expense Remainder of 2024 $ 6,273 2025 12,494 2026 12,397 2027 11,954 2028 11,220 Thereafter 52,755 Total estimated amortization expense $ 107,093 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 8. 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 six months ended June 30, 2024, 179,246 shares of unvested restricted stock were awarded at a weighted average market value of $30.05 . Of the restricted shares granted, shares have performance-based vesting conditions. The value of the shares expected to vest is amortized to compensation expense over the related service period, which is normally , 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 six months ended June 30, 2024: Number of shares Outstanding at beginning of period 254,110 Awarded 179,246 Vested (115,982) Forfeited (28,664) Outstanding at end of period 288,710 Stock-based compensation expense, net of forfeitures, of $1,073 and $1,544 was recorded for the three months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024 and 2023, stock based compensation expense, net of forfeitures, of $2,284 and $2,811 was recorded, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | 9 . ACCRUED LIABILITIES Accrued liabilities consist of the following: June 30, December 31, 2024 2023 Compensation and fringe benefits $ 11,714 $ 17,251 Accrued business acquisition consideration — 12,638 Warranty reserve 1,966 2,139 Income taxes payable 396 2,483 Operating lease liabilities – current 5,026 5,142 Finance lease obligations – current 429 412 Contract liabilities 2,467 2,137 Contingent consideration – current 270 7,720 Restructuring related accruals 1,437 — Other accrued expenses 7,420 6,566 $ 31,125 $ 56,488 In June 2024, the Company began the first phase of the Simplify to Accelerate NOW plan. This phase included initiatives to realign the Company’s manufacturing footprint and streamline the organization to enhance operational efficiency and drive profitability. The expected annual savings from the first phase are approximately million and are expected to begin being realized in the second half of 2024. The restructuring related accruals as of June 30, 2024 are expected to be substantially paid out by the end of 2024 and primarily relate to employee severance related expenses. Restructuring and business realignment |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2024 | |
DEBT OBLIGATIONS | |
DEBT OBLIGATIONS | 10. DEBT OBLIGATIONS Debt obligations consisted of the following: June 30, December 31, 2024 2023 Long-term Debt Revolving Credit Facility, long-term (1) $ 180,962 $ 210,120 Note Payable 50,000 — Unamortized debt issuance costs (2,440) (325) Finance lease obligations – noncurrent 8,386 8,607 Long-term debt $ 236,908 $ 218,402 (1) The effective interest rate on long-term debt obligations is 5.17% at June 30, 2024. On March 1, 2024, the Company entered into a Third Amended and Restated Credit Agreement (the “2024 Amended Credit Agreement”) for a $280 million revolving credit facility (the “Revolving Facility”). The changes made to the Company’s previous credit facility by the 2024 Amended Credit Agreement include: i) providing for a $50 million accordion amount and ii) extending the term from February 12, 2025 to March 1, 2029. Additionally, the Company has entered into a $150 million fixed-rate private shelf facility (the “2024 Note Payable Agreement”) under which $50.0 million of borrowings occurred on March 21, 2024. These agreements, collectively, are referred to as the “2024 Credit and Note Payable Agreements”. Pursuant to the 2024 Note Payable Agreement, the Company may from time to time issue and sell, and the borrower may consider in its sole discretion the purchase of, in one or a series of transactions, senior notes of the Company in an aggregate principal amount of up to $150 million (“Shelf Notes”). The Shelf Notes will have a maturity date of no more than 10.5 years after the date of original issuance and may be issued through March 1, 2027, unless either party terminates such issuance right. Debt issuance costs of Borrowings under the Revolving Facility bear interest at the Term SOFR Rate (as defined in the 2024 Amended Credit Agreement) plus a margin of 1.25% to 2.50% or the Alternative Base Rate (as defined in the Amended Credit Agreement) plus a margin of 0.25% to 1.50%, in each case depending Financial covenants under the 2024 Credit and Note Payable Agreements require the Company to maintain a minimum interest coverage ratio of at least 3.0:1.0 at the end of each fiscal quarter. In addition, the Company’s Leverage Ratio at the end of any fiscal quarter shall not be greater than 4.25:1.0 through December 31, 2024 or greater than 3.75 to 1.0 as of the end of any fiscal quarter thereafter; provided that the Company may elect to temporarily increase the Leverage Ratio to by 0.5 :1.0 following a material acquisition under the 2024 Credit and Note Payable Agreements. The 2024 Credit and Note Payable Agreements also include covenants and restrictions that limit the Company’s ability to incur additional indebtedness, merge, consolidate or sell all or substantially all of its assets and enter into transactions with an affiliate of the Company on other than an arms’ length transaction. These covenants, which are described more fully in the 2024 Credit and Note Payable Agreements, to which reference is made for a complete statement of the covenants, are subject to certain exceptions. The Company was in compliance with all covenants as of June 30, 2024. The 2024 Credit and Note Payable Agreements also include customary events of default, including failure to pay principal, interest or fees when due, failure to comply with covenants, if any representation or warranty made by the Company is false or misleading in any material respect, default under certain other indebtedness, certain insolvency or receivership events affecting the Company and its subsidiaries, the occurrence of certain material judgments, the occurrence of certain ERISA events, the invalidity of the loan documents or a change in control of the Company. The amounts outstanding under the Revolving Facility may be accelerated upon certain events of default. The obligations under the 2024 Credit and Note Payable Agreements are secured by substantially all of the Company’s non-realty assets and are fully and unconditionally guaranteed by certain of the Company’s subsidiaries. On March 21, 2024, the Company issued and sold $50.0 million in aggregate principal amount of the Series A Senior Notes due March 21, 2031 (the “Series A Notes”). The Series A Notes were issued pursuant to the 2024 Note Payable Agreement. The Series A Notes represent senior promissory notes of the Company and will bear interest at 5.96% and will mature on March 21, 2031. Interest on the Series A Notes will be payable quarterly on the 21st day of March, June, September and December in each year, commencing on June 21, 2024. Interest is computed on the basis of a 360-day year composed of twelve 30-day months. There are no separate covenants relating to the Series A Notes. All additional borrowings are subject to the leverage ratio compliance. of the principal amount to be prepaid plus accrued interest plus the defined “Make-Whole Amount,” if any. The Make-Whole Amount is an amount equal to the excess, if any, of the discounted value of the remaining schedule payments with respect to principal on the Series A Notes being prepaid over the amount of the prepaid principal. As of June 30, 2024, the unused Revolving Facility was $99,038 . The amount available to borrow under the 2024 Credit and Note Payable Agreements may be limited by the Company’s debt and EBITDA levels, which impacts its covenant calculations . There is |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 11. DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks 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, and foreign exchange risk primarily through the use of derivative financial instruments. The Company enters into foreign currency contracts with 30-day 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 on its variable-rate debt. 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. In March 2020, the Company entered into that matures in December 2026. In March 2023, the Company executed amendments to the existing swaps to amend the index on the interest rate derivatives from LIBOR to SOFR. These amendments had no material financial impact to the Company’s operations or financial position. The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2024 and 2023, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. As of June 30, 2024, the Company estimates that $2,515 will be reclassified as a decrease to interest expense over the next twelve months related to its interest rate derivatives. The Company does not use derivatives for trading or speculative purposes. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023: Asset Derivatives Fair value as of: Derivatives designated as Balance Sheet June 30, December 31, hedging instruments Location 2024 2023 Foreign currency contracts Prepaid expenses and other assets $ 2 $ 54 Interest rate swaps Prepaid expenses and other assets 1,298 2,254 Interest rate swaps Other long-term assets 2,411 2,177 $ 3,711 $ 4,485 Liability Derivatives Fair value as of: Derivatives designated as Balance Sheet June 30, December 31, hedging instruments Location 2024 2023 Foreign currency contracts Accrued liabilities $ 52 $ — $ 52 $ — The tables below present the effect of cash flow hedge accounting on other comprehensive income (loss) (“OCI”) for the three and six months ended June 30, 2024 and 2023: Amount of pre-tax gain (loss) recognized Amount of pre-tax gain (loss) recognized in OCI on derivatives in OCI on derivatives Derivatives in cash flow hedging relationships Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Interest rate swaps $ 360 $ 1,877 $ 1,295 $ 1,131 Amount of pre-tax gain reclassified Amount of pre-tax gain reclassified from accumulated OCI into income from accumulated OCI into income Location of gain reclassified Three months ended June 30, Six months ended June 30, from accumulated OCI into income 2024 2023 2024 2023 Interest expense $ 1,033 $ 947 $ 2,069 $ 1,766 The table below presents the line items that reflect the effect of the Company’s derivative financial instruments on the condensed consolidated statements of income and comprehensive (loss) income for the three and six months ended June 30, 2024 and 2023: Total amounts of income and expense Total amounts of income and expense line items presented that reflect the line items presented that reflect the effects of cash flow hedges recorded effects of cash flow hedges recorded Three months ended June 30, Six months ended June 30, Derivatives designated as hedging instruments Income Statement Location 2024 2023 2024 2023 Interest rate swaps Interest Expense $ 3,384 $ 3,162 $ 6,772 $ 6,145 The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2024 and December 31, 2023. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented in the condensed consolidated balance sheets: Derivative assets: Net amounts Gross amounts of assets Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets June 30, of recognized consolidated consolidated Financial Cash collateral 2024 assets balance sheets balance sheets instruments received Net amount Derivatives $ 3,711 $ — $ 3,711 $ — $ — $ 3,711 Net amounts Gross amounts of assets Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets December 31, of recognized consolidated consolidated Financial Cash collateral 2023 assets balance sheets balance sheets instruments received Net amount Derivatives $ 4,485 $ — $ 4,485 $ — $ — $ 4,485 Derivative liabilities: Net amounts Gross amounts of liabilities Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets June 30, of recognized consolidated consolidated Financial Cash collateral 2024 liabilities balance sheets balance sheets instruments received Net amount Derivatives $ 52 $ — $ 52 $ — $ — $ 52 Net amounts Gross amounts of liabilities Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets December 31, of recognized consolidated consolidated Financial Cash collateral 2023 liabilities balance sheets balance sheets instruments received Net amount Derivatives $ — $ — $ — $ — $ — $ — The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE | |
FAIR VALUE | 12. FAIR VALUE Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a framework for measuring fair value which utilizes observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Preference is given to observable inputs. These two types of inputs create the following three – level fair value hierarchy: Level 1: Quoted prices for identical assets or liabilities in active markets. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model – derived valuations whose inputs or significant value drivers are observable. Level 3: Significant inputs to the valuation model that are unobservable. The Company’s financial assets and liabilities include cash and cash equivalents, accounts receivable, debt obligations, accounts payable, and accrued liabilities. The carrying amounts reported in the condensed consolidated balance sheets for these assets and liabilities approximate their fair value because of the immediate or short-term maturities of these financial instruments. The following tables presents the Company’s financial assets that are accounted for at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, respectively, by level within the fair value hierarchy: June 30, 2024 Level 1 Level 2 Level 3 Assets (liabilities) Pension plan assets $ 6,120 $ — $ — Deferred compensation plan assets 4,416 — — Foreign currency hedge contracts, net — (50) — Interest rate swaps, net — 3,709 — Contingent consideration — — (270) December 31, 2023 Level 1 Level 2 Level 3 Assets (liabilities) Pension plan assets $ 5,859 $ — $ — Deferred compensation plan assets 4,305 — — Foreign currency hedge contracts, net — 54 — Interest rate swaps, net — 4,431 — Contingent consideration — — (7,990) The contingent consideration fair value measurement represents amounts in connection with the acquisitions of Sierramotion, which had a maximum amount of $2,000 and ALIO Industries (“ALIO”), which does not have a maximum amount. The measurements are based on significant inputs not observable in the market and therefore constitute Level 3 inputs within the fair value hierarchy. The Company determines the initial fair value of contingent consideration liabilities using a Monte Carlo valuation model, which involves a simulation of future earnings generated during the earn-out period using management’s best estimates, or a probability-weighted discounted cash flow analysis. was earned and settled in the first quarter of 2024. The contingent consideration of ALIO is settled |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
INCOME TAXES | 13. 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 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, settlements with taxing authorities and foreign currency fluctuations. The effective income tax rate was 20.6% and 23.9% for the three months ended June 30, 2024 and 2023, respectively. The effective tax rate was lower due primarily to an increase in the net discrete tax cost/benefit, primarily related to share based awards. For the six months ended June 30, 2024 and 2023, the effective income tax rate was 21.6% and 23.6%, respectively. The effective tax rate was lower due primarily to an increase in the net discrete tax cost/benefit, primarily related to share based awards and the reversal in prior years of uncertain tax positions. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
LEASES | |
LEASES | 14. LEASES The Company has operating leases for office space, manufacturing facilities and equipment, computer equipment and automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for a long-term period, and some leases include options to terminate the leases within 30 days. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes. Supplemental cash flow information related to the Company’s operating and finance leases for the six months ended June 30, 2024 and 2023 was as follows: June 30, 2024 2023 Cash paid for operating leases $ 3,185 $ 2,796 Cash paid for interest on finance lease obligations $ 205 $ 214 Assets acquired under operating leases $ 858 $ 1,888 Operating lease assets obtained in acquisitions $ 378 $ — The Company’s finance lease obligations relate to a manufacturing facility. Finance lease assets of , net. As of June 30, 2024, finance lease obligations of accrued liabilities long-term debt on the condensed consolidated balance sheet. As of December 31, 2023, finance lease obligations of accrued liabilities long-term debt The following table presents the maturity of the Company’s operating and finance lease liabilities as of June 30, 2024: Operating Leases Finance Leases Remainder of 2024 $ 3,033 $ 407 2025 5,151 831 2026 4,516 847 2027 3,798 867 2028 2,871 886 Thereafter 5,757 7,884 Total undiscounted cash flows $ 25,126 $ 11,722 Less: present value discount (2,643) (2,907) Total lease liabilities $ 22,483 $ 8,815 As of June 30, 2024, the Company has entered into leases for building renewal and expansion, with future minimum lease payments of $3,510 that have not yet commenced. The Company has operating leases for certain facilities from companies for which a member of management is a part owner. In connection with such leases, the Company made fixed minimum lease payments to the lessor of $237 and $473 during the three and six months ended June 30, 2024 and $220 and $441 during the three and six months ended June 30, 2023, respectively, and is obligated to make payments of $433 during the remainder of 2024. Future fixed minimum lease payments under these leases as of June 30, 2024 are $ |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 6 Months Ended |
Jun. 30, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 15. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated Other Comprehensive (Loss) Income (“AOCI”) for the three months ended June 30, 2024 and 2023 is comprised of the following: Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At March 31, 2024 $ (344) $ 4,329 $ (982) $ (17,664) $ (14,661) Unrealized gain (loss) on cash flow hedges — 360 (86) — 274 Amounts reclassified from AOCI — (1,033) 248 — (785) Foreign currency translation loss — — — (1,178) (1,178) At June 30, 2024 $ (344) $ 3,656 $ (820) $ (18,842) $ (16,350) Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At March 31, 2023 $ (594) $ 5,745 $ (1,322) $ (15,571) $ (11,742) Unrealized gain (loss) on cash flow hedges — 1,877 (450) — 1,427 Amounts reclassified from AOCI — (947) 227 — (720) Foreign currency translation loss — — — (426) (426) At June 30, 2023 $ (594) $ 6,675 $ (1,545) $ (15,997) $ (11,461) AOCI for the six months ended June 30, 2024 and 2023 is comprised of the following: Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At December 31, 2023 $ (344) $ 4,431 $ (1,006) $ (13,256) $ (10,175) Unrealized gain (loss) on cash flow hedges — 1,295 (311) — 984 Amounts reclassified from AOCI — (2,070) 497 — (1,573) Foreign currency translation loss — — — (5,586) (5,586) At June 30, 2024 $ (344) $ 3,656 $ (820) $ (18,842) $ (16,350) Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At December 31, 2022 $ (594) $ 7,310 $ (1,754) $ (16,925) $ (11,963) Unrealized gain (loss) on cash flow hedges — 1,131 (248) — 883 Amounts reclassified from AOCI — (1,766) 457 — (1,309) Foreign currency translation gain — — — 928 928 At June 30, 2023 $ (594) $ 6,675 $ (1,545) $ (15,997) $ (11,461) The realized gains and losses relating to the Company’s interest rate swap hedges were reclassified from AOCI and included in interest expense in the condensed consolidated statements of income and comprehensive (loss) income. |
DIVIDENDS PER SHARE
DIVIDENDS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
DIVIDENDS PER SHARE | |
DIVIDENDS PER SHARE | 16. DIVIDENDS PER SHARE The Company declared a quarterly dividend of $0.03 per share in the first and second quarters of 2024 as well as in the second quarter of 2023 and $0.025 in the first quarter of 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 17. EARNINGS PER SHARE Basic and diluted weighted-average shares outstanding are as follows: Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Basic weighted average shares outstanding 16,567 15,969 16,480 15,921 Dilutive effect of potential common shares 16 250 60 257 Diluted weighted average shares outstanding 16,583 16,219 16,540 16,178 For the three and six months ended June 30, 2024, the anti-dilutive common shares excluded from the calculation of diluted earnings per share were 21,000 and 67,000 , respectively. For the three and six months ended June 30, 2023, the anti-dilutive common shares excluded from the calculation of diluted earnings per share were immaterial. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 18. SEGMENT INFORMATION The Company operates in one segment for the manufacture and marketing of specialty-controlled motion products and solutions for end user and OEM applications. The Company’s chief operating decision maker is the Chief Executive Officer, 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 in which the entity holds material assets and reports revenue. Revenue for the three months ended June 30, 2024 and 2023 was comprised of 52% and 58% , respectively, shipped to U.S. customers. For the six months ended June 30, 2024 and 2023, revenues was comprised of Identifiable foreign fixed assets were $33,935 and $35,751 as of June 30, 2024 and December 31, 2023, respectively. Identifiable assets outside of the U.S. are attributable to Europe, China, Mexico, and Asia-Pacific. For the three months ended June 30, 2023, one customer accounted for 12% of revenues. For each of the six months ended June 30, 2024 and 2023, this customer accounted for |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACQUISITIONS | |
Schedule of purchase price allocation and estimated fair value of the assets acquired | Cash and cash equivalents $ 881 Trade receivables 3,467 Inventories 9,100 Prepaid expenses and other assets 496 Property, plant, and equipment 4,258 Operating lease assets 378 Intangible assets 2,900 Goodwill 2,685 Other current liabilities (3,188) Deferred revenue (55) Operating lease liabilities (378) Net deferred income tax liabilities (702) Other noncurrent liabilities (118) Net purchase price $ 19,724 |
Schedule of unaudited pro forma financial information | Three months ended Six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Revenues $ 136,032 $ 156,872 $ 284,039 $ 312,605 Income before income taxes $ 1,599 $ 9,115 $ 10,989 $ 17,934 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE RECOGNITION | |
Schedule of reconciliation of disaggregated revenue by target market and geography | Three months ended Six months ended June 30, June 30, Target Market 2024 2023 2024 2023 Industrial $ 63,484 $ 65,588 $ 133,078 $ 128,845 Vehicle 28,662 34,739 63,316 65,570 Medical 19,235 20,887 38,321 44,562 Aerospace & Defense 18,477 18,979 35,295 40,266 Distribution and Other 6,174 6,576 12,735 13,075 Total $ 136,032 $ 146,769 $ 282,745 $ 292,318 Three months ended Six months ended June 30, June 30, Geography 2024 2023 2024 2023 North America (primarily U.S.) $ 91,920 $ 100,965 $ 191,623 $ 198,332 Europe 37,145 38,326 77,805 78,223 Asia-Pacific 6,967 7,478 13,317 15,763 Total $ 136,032 $ 146,769 $ 282,745 $ 292,318 |
Schedule of opening and closing balances of the Company's receivables, contract asset, and contract liability | June 30, December 31, 2024 2023 Contract liabilities in accrued liabilities $ 2,467 $ 2,137 Contract liabilities in other long-term liabilities 2 8 $ 2,469 $ 2,145 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES | |
Schedule of 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 | June 30, December 31, 2024 2023 Parts and raw materials $ 89,463 $ 87,381 Work-in-process 11,212 11,456 Finished goods 20,978 18,849 $ 121,653 $ 117,686 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of classification of property, plant and equipment | June 30, December 31, Useful lives 2024 2023 Land $ 1,776 $ 973 Building and improvements 5 - 39 years 28,870 26,201 Machinery, equipment, tools and dies 3 - 15 years 104,174 99,711 Construction in progress 8,210 9,300 Furniture, fixtures and other 3 - 10 years 24,767 24,439 167,797 160,624 Less accumulated depreciation (98,199) (93,161) Property, plant, and equipment, net $ 69,598 $ 67,463 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
GOODWILL | |
Schedule of change in the carrying amount of goodwill | June 30, 2024 Beginning balance $ 131,338 Goodwill acquired 2,752 Impact of measurement period adjustments of acquisitions (Note 2) (67) Effect of foreign currency translation (1,109) Ending balance $ 132,914 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Weighted Average June 30, 2024 December 31, 2023 Amortization Gross Accumulated Net Book Gross Accumulated Net Book Period Amount Amortization Value Amount Amortization Value Customer lists 14.3 years $ 117,489 $ (46,308) $ 71,181 $ 116,831 $ (42,421) $ 74,410 Trade name 13.9 years 16,054 (8,246) 7,808 15,572 (7,916) 7,656 Design and technologies 10.6 years 41,883 (13,779) 28,104 41,480 (12,173) 29,307 Total $ 175,426 $ (68,333) $ 107,093 $ 173,883 $ (62,510) $ 111,373 |
Schedule of estimated amortization expense for intangible assets | Year ending December 31, Total Estimated Amortization Expense Remainder of 2024 $ 6,273 2025 12,494 2026 12,397 2027 11,954 2028 11,220 Thereafter 52,755 Total estimated amortization expense $ 107,093 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
STOCK-BASED COMPENSATION | |
Summary of restricted stock activity | The following is a summary of restricted stock activity for the six months ended June 30, 2024: Number of shares Outstanding at beginning of period 254,110 Awarded 179,246 Vested (115,982) Forfeited (28,664) Outstanding at end of period 288,710 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCRUED LIABILITIES | |
Schedule of accrued liabilities | June 30, December 31, 2024 2023 Compensation and fringe benefits $ 11,714 $ 17,251 Accrued business acquisition consideration — 12,638 Warranty reserve 1,966 2,139 Income taxes payable 396 2,483 Operating lease liabilities – current 5,026 5,142 Finance lease obligations – current 429 412 Contract liabilities 2,467 2,137 Contingent consideration – current 270 7,720 Restructuring related accruals 1,437 — Other accrued expenses 7,420 6,566 $ 31,125 $ 56,488 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
DEBT OBLIGATIONS | |
Schedule of debt obligations | June 30, December 31, 2024 2023 Long-term Debt Revolving Credit Facility, long-term (1) $ 180,962 $ 210,120 Note Payable 50,000 — Unamortized debt issuance costs (2,440) (325) Finance lease obligations – noncurrent 8,386 8,607 Long-term debt $ 236,908 $ 218,402 (1) The effective interest rate on long-term debt obligations is 5.17% at June 30, 2024. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of fair value of the Company's derivative financial instruments as well as classification on the condensed consolidated balance sheets | Asset Derivatives Fair value as of: Derivatives designated as Balance Sheet June 30, December 31, hedging instruments Location 2024 2023 Foreign currency contracts Prepaid expenses and other assets $ 2 $ 54 Interest rate swaps Prepaid expenses and other assets 1,298 2,254 Interest rate swaps Other long-term assets 2,411 2,177 $ 3,711 $ 4,485 Liability Derivatives Fair value as of: Derivatives designated as Balance Sheet June 30, December 31, hedging instruments Location 2024 2023 Foreign currency contracts Accrued liabilities $ 52 $ — $ 52 $ — |
Schedule of effect of cash flow hedge accounting on other comprehensive income (loss) (OCI) | Amount of pre-tax gain (loss) recognized Amount of pre-tax gain (loss) recognized in OCI on derivatives in OCI on derivatives Derivatives in cash flow hedging relationships Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Interest rate swaps $ 360 $ 1,877 $ 1,295 $ 1,131 Amount of pre-tax gain reclassified Amount of pre-tax gain reclassified from accumulated OCI into income from accumulated OCI into income Location of gain reclassified Three months ended June 30, Six months ended June 30, from accumulated OCI into income 2024 2023 2024 2023 Interest expense $ 1,033 $ 947 $ 2,069 $ 1,766 |
Schedule of effect of the Company's derivative financial instruments on the condensed consolidated statements of income and comprehensive (loss) income | Total amounts of income and expense Total amounts of income and expense line items presented that reflect the line items presented that reflect the effects of cash flow hedges recorded effects of cash flow hedges recorded Three months ended June 30, Six months ended June 30, Derivatives designated as hedging instruments Income Statement Location 2024 2023 2024 2023 Interest rate swaps Interest Expense $ 3,384 $ 3,162 $ 6,772 $ 6,145 |
Schedule of fair value provides the location that derivative assets and liabilities | Derivative assets: Net amounts Gross amounts of assets Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets June 30, of recognized consolidated consolidated Financial Cash collateral 2024 assets balance sheets balance sheets instruments received Net amount Derivatives $ 3,711 $ — $ 3,711 $ — $ — $ 3,711 Net amounts Gross amounts of assets Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets December 31, of recognized consolidated consolidated Financial Cash collateral 2023 assets balance sheets balance sheets instruments received Net amount Derivatives $ 4,485 $ — $ 4,485 $ — $ — $ 4,485 Derivative liabilities: Net amounts Gross amounts of liabilities Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets June 30, of recognized consolidated consolidated Financial Cash collateral 2024 liabilities balance sheets balance sheets instruments received Net amount Derivatives $ 52 $ — $ 52 $ — $ — $ 52 Net amounts Gross amounts of liabilities Gross amounts not offset in the consolidated As of Gross amounts offset in the presented in the balance sheets December 31, of recognized consolidated consolidated Financial Cash collateral 2023 liabilities balance sheets balance sheets instruments received Net amount Derivatives $ — $ — $ — $ — $ — $ — |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE | |
Schedule of financial assets that are accounted for at fair value on a recurring basis | June 30, 2024 Level 1 Level 2 Level 3 Assets (liabilities) Pension plan assets $ 6,120 $ — $ — Deferred compensation plan assets 4,416 — — Foreign currency hedge contracts, net — (50) — Interest rate swaps, net — 3,709 — Contingent consideration — — (270) December 31, 2023 Level 1 Level 2 Level 3 Assets (liabilities) Pension plan assets $ 5,859 $ — $ — Deferred compensation plan assets 4,305 — — Foreign currency hedge contracts, net — 54 — Interest rate swaps, net — 4,431 — Contingent consideration — — (7,990) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LEASES | |
Schedule of supplemental cash flow information related to the operating leases | June 30, 2024 2023 Cash paid for operating leases $ 3,185 $ 2,796 Cash paid for interest on finance lease obligations $ 205 $ 214 Assets acquired under operating leases $ 858 $ 1,888 Operating lease assets obtained in acquisitions $ 378 $ — |
Schedule of maturity of the operating lease liabilities | The following table presents the maturity of the Company’s operating and finance lease liabilities as of June 30, 2024: Operating Leases Finance Leases Remainder of 2024 $ 3,033 $ 407 2025 5,151 831 2026 4,516 847 2027 3,798 867 2028 2,871 886 Thereafter 5,757 7,884 Total undiscounted cash flows $ 25,126 $ 11,722 Less: present value discount (2,643) (2,907) Total lease liabilities $ 22,483 $ 8,815 |
Schedule of maturity of the financing lease liabilities | The following table presents the maturity of the Company’s operating and finance lease liabilities as of June 30, 2024: Operating Leases Finance Leases Remainder of 2024 $ 3,033 $ 407 2025 5,151 831 2026 4,516 847 2027 3,798 867 2028 2,871 886 Thereafter 5,757 7,884 Total undiscounted cash flows $ 25,126 $ 11,722 Less: present value discount (2,643) (2,907) Total lease liabilities $ 22,483 $ 8,815 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
Schedule of accumulated other comprehensive (Loss) income ("AOCI") | Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At March 31, 2024 $ (344) $ 4,329 $ (982) $ (17,664) $ (14,661) Unrealized gain (loss) on cash flow hedges — 360 (86) — 274 Amounts reclassified from AOCI — (1,033) 248 — (785) Foreign currency translation loss — — — (1,178) (1,178) At June 30, 2024 $ (344) $ 3,656 $ (820) $ (18,842) $ (16,350) Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At March 31, 2023 $ (594) $ 5,745 $ (1,322) $ (15,571) $ (11,742) Unrealized gain (loss) on cash flow hedges — 1,877 (450) — 1,427 Amounts reclassified from AOCI — (947) 227 — (720) Foreign currency translation loss — — — (426) (426) At June 30, 2023 $ (594) $ 6,675 $ (1,545) $ (15,997) $ (11,461) Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At December 31, 2023 $ (344) $ 4,431 $ (1,006) $ (13,256) $ (10,175) Unrealized gain (loss) on cash flow hedges — 1,295 (311) — 984 Amounts reclassified from AOCI — (2,070) 497 — (1,573) Foreign currency translation loss — — — (5,586) (5,586) At June 30, 2024 $ (344) $ 3,656 $ (820) $ (18,842) $ (16,350) Foreign Currency Defined Benefit Tax Effect of Translation Plan Liability Cash Flow Hedges Cash Flow Hedges Adjustment Total At December 31, 2022 $ (594) $ 7,310 $ (1,754) $ (16,925) $ (11,963) Unrealized gain (loss) on cash flow hedges — 1,131 (248) — 883 Amounts reclassified from AOCI — (1,766) 457 — (1,309) Foreign currency translation gain — — — 928 928 At June 30, 2023 $ (594) $ 6,675 $ (1,545) $ (15,997) $ (11,461) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted weighted-average shares outstanding | Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Basic weighted average shares outstanding 16,567 15,969 16,480 15,921 Dilutive effect of potential common shares 16 250 60 257 Diluted weighted average shares outstanding 16,583 16,219 16,540 16,178 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jan. 11, 2024 | Jan. 03, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Sep. 22, 2023 | |
ACQUISITIONS | ||||||||||
Cash paid for acquisition | $ 25,231 | $ 6,250 | ||||||||
Increase (decrease) in goodwill | 67 | |||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Earnings | $ 1,150 | $ 6,902 | $ 6,769 | $ 6,315 | 8,052 | 13,084 | ||||
Revenues | 136,032 | 146,769 | 282,745 | 292,318 | ||||||
Amortization of intangible assets | 3,131 | 3,142 | 6,246 | 6,151 | ||||||
Goodwill | 132,914 | 132,914 | $ 131,338 | |||||||
Pro forma Condensed Combined Financial Information | ||||||||||
Revenues | 136,032 | 156,872 | 284,039 | 312,605 | ||||||
Income before income taxes | $ 1,599 | $ 9,115 | $ 10,989 | $ 17,934 | ||||||
Customer lists | ||||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Estimated Life | 14 years 3 months 18 days | 14 years 3 months 18 days | ||||||||
Trade name | ||||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Estimated Life | 13 years 10 months 24 days | 13 years 10 months 24 days | ||||||||
Spectrum Controls | ||||||||||
ACQUISITIONS | ||||||||||
Amount payable at each payment | $ 12,500 | |||||||||
Percentage of remaining consideration in cash | 50% | |||||||||
Percentage of remaining consideration in stock | 50% | |||||||||
Sierramotion Inc | ||||||||||
ACQUISITIONS | ||||||||||
Business acquisition percentage of voting interests acquired | 100% | |||||||||
Purchase price | $ 8,400 | |||||||||
SNC | ||||||||||
ACQUISITIONS | ||||||||||
Business acquisition percentage of voting interests acquired | 100% | |||||||||
Purchase price | $ 20,000 | |||||||||
Decrease to inventories | $ 100 | |||||||||
Increase to purchase price | 67 | |||||||||
Adjustment in intangible asset | 100 | |||||||||
Transaction costs related to acquisition | $ 300 | |||||||||
Increase (decrease) in goodwill | 67 | |||||||||
Revenue of SNC | 9,961 | 18,470 | ||||||||
Net income | 1,100 | 1,891 | ||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Cash and cash equivalents | 881 | 881 | ||||||||
Trade receivables | 3,467 | 3,467 | ||||||||
Inventories | 9,100 | 9,100 | ||||||||
Prepaid expenses and other assets | 496 | 496 | ||||||||
Property, plant, and equipment | 4,258 | 4,258 | ||||||||
Operating lease assets | 378 | 378 | ||||||||
Intangible assets | 2,900 | 2,900 | ||||||||
Goodwill | 2,685 | 2,685 | ||||||||
Other current liabilities | (3,188) | (3,188) | ||||||||
Deferred revenue | (55) | (55) | ||||||||
Operating lease liabilities | (378) | (378) | ||||||||
Net deferred income tax liabilities | (702) | (702) | ||||||||
Other noncurrent liabilities | (118) | (118) | ||||||||
Net purchase price | 19,724 | 19,724 | ||||||||
SNC | Technology | ||||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Intangible assets | $ 800 | $ 800 | ||||||||
Estimated Life | 10 years | 10 years | ||||||||
SNC | Customer lists | ||||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Intangible assets | $ 1,500 | $ 1,500 | ||||||||
Estimated Life | 12 years | 12 years | ||||||||
SNC | Trade name | ||||||||||
Assets Acquired and Liabilities Assumed | ||||||||||
Intangible assets | $ 600 | $ 600 | ||||||||
Estimated Life | 10 years | 10 years |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Number of reportable segment | segment | 1 | |||
Revenues | $ 136,032 | $ 146,769 | $ 282,745 | $ 292,318 |
Industrial | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 63,484 | 65,588 | 133,078 | 128,845 |
Vehicle | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 28,662 | 34,739 | 63,316 | 65,570 |
Medical | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 19,235 | 20,887 | 38,321 | 44,562 |
Aerospace & Defense | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 18,477 | 18,979 | 35,295 | 40,266 |
Distribution and Other | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 6,174 | 6,576 | 12,735 | 13,075 |
North America (primarily U.S.) | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 91,920 | 100,965 | 191,623 | 198,332 |
Europe | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | 37,145 | 38,326 | 77,805 | 78,223 |
Asia-Pacific | ||||
Reconciliation of disaggregated revenue to segment revenue as well as revenue by geographical regions | ||||
Revenues | $ 6,967 | $ 7,478 | $ 13,317 | $ 15,763 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
REVENUE RECOGNITION | |||
Contract liabilities in accrued liabilities | $ 2,467 | $ 2,137 | |
Contract liabilities in other long-term liabilities | 2 | 8 | |
Contract liabilities | 2,469 | $ 2,145 | |
Revenue recognized | $ 822 | $ 3,414 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Parts and raw materials | $ 89,463 | $ 87,381 |
Work-in-process | 11,212 | 11,456 |
Finished goods | 20,978 | 18,849 |
Inventories | $ 121,653 | $ 117,686 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 167,797 | $ 167,797 | $ 160,624 | ||
Less accumulated depreciation | (98,199) | (98,199) | (93,161) | ||
Property, plant and equipment, net | 69,598 | 69,598 | 67,463 | ||
Depreciation expense | 3,185 | $ 3,248 | 6,355 | $ 6,384 | |
Land | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 1,776 | 1,776 | 973 | ||
Building and improvements | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 28,870 | $ 28,870 | 26,201 | ||
Building and improvements | Minimum | |||||
Property, plant and equipment | |||||
Useful lives | 5 years | 5 years | |||
Building and improvements | Maximum | |||||
Property, plant and equipment | |||||
Useful lives | 39 years | 39 years | |||
Machinery, equipment, tools and dies | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 104,174 | $ 104,174 | 99,711 | ||
Machinery, equipment, tools and dies | Minimum | |||||
Property, plant and equipment | |||||
Useful lives | 3 years | 3 years | |||
Machinery, equipment, tools and dies | Maximum | |||||
Property, plant and equipment | |||||
Useful lives | 15 years | 15 years | |||
Construction in progress | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 8,210 | $ 8,210 | 9,300 | ||
Furniture, fixtures and other | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 24,767 | $ 24,767 | $ 24,439 | ||
Furniture, fixtures and other | Minimum | |||||
Property, plant and equipment | |||||
Useful lives | 3 years | 3 years | |||
Furniture, fixtures and other | Maximum | |||||
Property, plant and equipment | |||||
Useful lives | 10 years | 10 years |
GOODWILL - Change in the carryi
GOODWILL - Change in the carrying amount of goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Change in goodwill | |
Beginning balance | $ 131,338 |
Goodwill acquired | 2,752 |
Impact of measurement period adjustments of acquisitions (Note 2) | (67) |
Effect of foreign currency translation | (1,109) |
Ending balance | $ 132,914 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Intangible assets subject to amortization | |||||
Gross Amount | $ 175,426 | $ 175,426 | $ 173,883 | ||
Accumulated Amortization | (68,333) | (68,333) | (62,510) | ||
Total estimated amortization expense | 107,093 | 107,093 | 111,373 | ||
Amortization expense for intangible assets | 3,131 | $ 3,142 | 6,246 | $ 6,151 | |
Estimated amortization expense | |||||
Remainder of 2024 | 6,273 | 6,273 | |||
2025 | 12,494 | 12,494 | |||
2026 | 12,397 | 12,397 | |||
2027 | 11,954 | 11,954 | |||
2028 | 11,220 | 11,220 | |||
Thereafter | 52,755 | 52,755 | |||
Total estimated amortization expense | $ 107,093 | $ 107,093 | 111,373 | ||
Customer lists | |||||
Intangible assets subject to amortization | |||||
Estimated Life | 14 years 3 months 18 days | 14 years 3 months 18 days | |||
Gross Amount | $ 117,489 | $ 117,489 | 116,831 | ||
Accumulated Amortization | (46,308) | (46,308) | (42,421) | ||
Total estimated amortization expense | 71,181 | 71,181 | 74,410 | ||
Estimated amortization expense | |||||
Total estimated amortization expense | $ 71,181 | $ 71,181 | 74,410 | ||
Trade name | |||||
Intangible assets subject to amortization | |||||
Estimated Life | 13 years 10 months 24 days | 13 years 10 months 24 days | |||
Gross Amount | $ 16,054 | $ 16,054 | 15,572 | ||
Accumulated Amortization | (8,246) | (8,246) | (7,916) | ||
Total estimated amortization expense | 7,808 | 7,808 | 7,656 | ||
Estimated amortization expense | |||||
Total estimated amortization expense | $ 7,808 | $ 7,808 | 7,656 | ||
Design and technologies | |||||
Intangible assets subject to amortization | |||||
Estimated Life | 10 years 7 months 6 days | 10 years 7 months 6 days | |||
Gross Amount | $ 41,883 | $ 41,883 | 41,480 | ||
Accumulated Amortization | (13,779) | (13,779) | (12,173) | ||
Total estimated amortization expense | 28,104 | 28,104 | 29,307 | ||
Estimated amortization expense | |||||
Total estimated amortization expense | $ 28,104 | $ 28,104 | $ 29,307 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Additional disclosures | ||||
Stock based compensation expense, net of forfeitures | $ 2,284 | $ 2,811 | ||
Restricted Stock | ||||
STOCK-BASED COMPENSATION | ||||
Restricted stock grants | 179,246 | |||
Weighted average grant date fair value (in dollars per share) | $ 30.05 | |||
Service period over which value of the shares is amortized to compensation expense | 3 years | |||
Number of Non-vested Restricted Shares | ||||
Outstanding at beginning of period (in shares) | 254,110 | |||
Awarded (in shares) | 179,246 | |||
Vested (in shares) | (115,982) | |||
Forfeited (in shares) | (28,664) | |||
Outstanding at end of period (in shares) | 288,710 | 288,710 | ||
Additional disclosures | ||||
Stock based compensation expense, net of forfeitures | $ 1,073 | $ 1,544 | $ 2,284 | $ 2,811 |
Restricted Stock | Performance based vesting | ||||
STOCK-BASED COMPENSATION | ||||
Restricted stock grants | 107,377 | |||
Number of Non-vested Restricted Shares | ||||
Awarded (in shares) | 107,377 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ACCRUED LIABILITIES | ||
Compensation and fringe benefits | $ 11,714 | $ 17,251 |
Accrued business acquisition consideration | 12,638 | |
Warranty reserve | 1,966 | 2,139 |
Income taxes payable | 396 | 2,483 |
Operating lease liabilities - current | $ 5,026 | $ 5,142 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Finance lease obligations - current | $ 429 | $ 412 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Contract liabilities | $ 2,467 | $ 2,137 |
Contingent consideration - current | 270 | 7,720 |
Restructuring related accruals | 1,437 | |
Other accrued expenses | 7,420 | 6,566 |
Accrued liabilities | $ 31,125 | $ 56,488 |
ACCRUED LIABILITIES - Additiona
ACCRUED LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
ACCRUED LIABILITIES | ||
Expected annual savings from simplify to accelerate NOW plan | $ 5 | |
Restructuring and business realignment costs | $ 1.5 | $ 1.5 |
Restructuring charges, statement of income or comprehensive income extensible enumeration | Business development | Business development |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Mar. 01, 2024 | Jun. 30, 2024 | Mar. 21, 2024 | Dec. 31, 2023 | |
DEBT OBLIGATIONS | ||||
Unamortized debt issuance costs | $ (2,440) | $ (325) | ||
Finance lease obligations - noncurrent | 8,386 | 8,607 | ||
Long-term debt | 236,908 | 218,402 | ||
Percentage of principal amount of debt to be repaid | 100% | |||
Revolving Credit Facility | ||||
DEBT OBLIGATIONS | ||||
Revolving Credit Facility, long-term | $ 180,962 | $ 210,120 | ||
Effective rate (as a percent) | 5.17% | |||
Deferred financing fees | $ 164 | |||
Revolving Credit Facility | Minimum | ||||
DEBT OBLIGATIONS | ||||
Commitment fees on unused portion of the Amended Revolving Facility ( as a percent) | 0.15% | |||
Revolving Credit Facility | Maximum | ||||
DEBT OBLIGATIONS | ||||
Commitment fees on unused portion of the Amended Revolving Facility ( as a percent) | 0.325% | |||
Amended Revolving Facility | ||||
DEBT OBLIGATIONS | ||||
Maximum borrowing capacity | $ 280,000 | |||
Available borrowing capacity | 50,000 | |||
Amended Revolving Facility | Minimum | ||||
DEBT OBLIGATIONS | ||||
Applicable margin (as a percent) | 0.25% | |||
Investment, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Amended Revolving Facility | Maximum | ||||
DEBT OBLIGATIONS | ||||
Applicable margin (as a percent) | 1.50% | |||
Investment, Variable Interest Rate, Type [Extensible Enumeration] | us-gaap:SecuredOvernightFinancingRateSofrMember | |||
Note Payable | ||||
DEBT OBLIGATIONS | ||||
Revolving Credit Facility, long-term | $ 50,000 | |||
2024 Note Payable Agreement | ||||
DEBT OBLIGATIONS | ||||
Unamortized debt issuance costs | (2,400) | |||
Borrowings | 50,000 | |||
Maximum borrowing capacity | $ 150,000 | |||
2024 Credit and Note Payable Agreements | ||||
DEBT OBLIGATIONS | ||||
Minimum interest coverage ratio | 3% | |||
Leverage ratio | 4.25% | |||
Increase in leverage ratio | 0.50% | |||
Unused amount of credit facility | $ 99,038 | |||
2024 Credit and Note Payable Agreements | For quarter ending on or after december 31, 2024 | ||||
DEBT OBLIGATIONS | ||||
Leverage ratio | 3.75% | |||
2024 Amended Credit Agreement | Minimum | ||||
DEBT OBLIGATIONS | ||||
Applicable margin (as a percent) | 1.25% | |||
2024 Amended Credit Agreement | Maximum | ||||
DEBT OBLIGATIONS | ||||
Applicable margin (as a percent) | 2.50% | |||
Shelf Notes | Maximum | ||||
DEBT OBLIGATIONS | ||||
Debt instrument term | 10 years 6 months | |||
Principal amount of debt borrowed | $ 150,000 | |||
Series A Notes | ||||
DEBT OBLIGATIONS | ||||
Interest rate (as a percent) | 5.96% | |||
Principal amount of debt borrowed | $ 50,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2020 USD ($) derivative | |
Derivative financial instruments | |||||||
Term of contract | 30 days | ||||||
Other (income) expense | |||||||
Derivative financial instruments | |||||||
Gain (loss) on foreign currency contracts | $ 31 | $ (90) | $ (81) | $ (96) | |||
Interest Rate Swaps | |||||||
Derivative financial instruments | |||||||
Notional amount | $ 40,000 | ||||||
Number of derivative instruments | derivative | 2 | ||||||
Notional amount of interest rate swap derivatives | $ 60,000 | $ 20,000 | |||||
Estimated amount to be reclassified as an decrease to interest expense | 2,515 | ||||||
Foreign currency contracts | |||||||
Derivative financial instruments | |||||||
Notional amount | 17,089 | 17,089 | $ 22,193 | ||||
Derivatives in cash flow hedging relationships | Interest Rate Swaps | |||||||
Effect of derivative financial instruments on the condensed consolidated statement of income and comprehensive income | |||||||
Amount of pre-tax (loss) gain recognized in OCI on derivatives | 360 | 1,877 | 1,295 | 1,131 | |||
Derivatives in cash flow hedging relationships | Interest Rate Swaps | Interest expense | |||||||
Effect of derivative financial instruments on the condensed consolidated statement of income and comprehensive income | |||||||
Amount of pre-tax gain (loss) reclassified from accumulated OCI into income | 1,033 | 947 | 2,069 | 1,766 | |||
Derivatives designated as hedging instruments | |||||||
Derivative financial instruments | |||||||
Fair value of derivative assets | 3,711 | 3,711 | 4,485 | ||||
Fair value of derivative liability | 52 | 52 | |||||
Derivatives designated as hedging instruments | Interest Rate Swaps | Interest expense | |||||||
Effect of derivative financial instruments on the condensed consolidated statement of income and comprehensive income | |||||||
Total amounts of income and expense line items presented that reflect the effects of cash flow hedges recorded | 3,384 | $ 3,162 | 6,772 | $ 6,145 | |||
Derivatives designated as hedging instruments | Interest Rate Swaps | Prepaid expenses and other assets | |||||||
Derivative financial instruments | |||||||
Fair value of derivative assets | 1,298 | 1,298 | 2,254 | ||||
Derivatives designated as hedging instruments | Interest Rate Swaps | Other long-term assets | |||||||
Derivative financial instruments | |||||||
Fair value of derivative assets | 2,411 | 2,411 | 2,177 | ||||
Derivatives designated as hedging instruments | Foreign currency contracts | Prepaid expenses and other assets | |||||||
Derivative financial instruments | |||||||
Fair value of derivative assets | 2 | 2 | $ 54 | ||||
Derivatives designated as hedging instruments | Foreign currency contracts | Accrued liabilities. | |||||||
Derivative financial instruments | |||||||
Fair value of derivative liability | $ 52 | $ 52 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Effects of offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative assets: | ||
Gross amounts of recognized assets | $ 3,711 | $ 4,485 |
Net amounts of assets presented in the consolidated balance sheets | 3,711 | 4,485 |
Gross amounts not offset in the consolidated balance sheets: Net amount | 3,711 | $ 4,485 |
Derivative liabilities: | ||
Gross amounts of recognized liabilities | 52 | |
Net amounts of liabilities presented in the consolidated balance sheets | 52 | |
Gross amounts not offset in the consolidated balance sheets: Net amount | $ 52 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets (liabilities) | |||
Contingent consideration earned | $ 5,747 | ||
Contingent consideration settled in shares | 2,874 | ||
Contingent consideration settled in cash | $ 2,873 | ||
Payment of contingent consideration | $ 2,450 | ||
Accrued liabilities. | |||
Assets (liabilities) | |||
Contingent consideration | $ 7,720 | ||
Other long-term liabilities | |||
Assets (liabilities) | |||
Contingent consideration | 270 | ||
ALIO | |||
Assets (liabilities) | |||
Contingent consideration settled in company stock (as percentage) | 50% | ||
Contingent consideration settled in cash (as percentage) | 50% | ||
Sierramotion Inc | |||
Assets (liabilities) | |||
Contingent consideration fair value measurement, acquisition | $ 2,000 | 2,000 | |
Recurring basis | Level 1 | |||
Assets (liabilities) | |||
Pension plan assets | 6,120 | 5,859 | |
Deferred compensation plan assets | 4,416 | 4,305 | |
Recurring basis | Level 2 | |||
Assets (liabilities) | |||
Foreign currency hedge contract assets, net | 54 | ||
Foreign currency hedge contract liabilities, net | (50) | ||
Interest rate swaps, net | 3,709 | 4,431 | |
Recurring basis | Level 3 | |||
Assets (liabilities) | |||
Contingent consideration | $ (270) | $ (7,990) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effective income tax rate | ||||
Effective income tax rate (as a percent) | 20.60% | 23.90% | 21.60% | 23.60% |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
LEASES | |||
Options to terminate the leases | true | ||
Operating lease option to terminate period | 30 days | ||
Future minimum lease payments of lease not yet commenced | $ 3,510 | ||
Supplemental cash flow information related to the operating leases | |||
Cash paid for operating leases | 3,185 | $ 2,796 | |
Cash paid for interest on finance lease obligations | 205 | 214 | |
Assets acquired under operating leases | 858 | $ 1,888 | |
Operating lease assets obtained in acquisitions | 378 | ||
Lease assets and liabilities | |||
Finance lease assets | $ 7,892 | $ 8,208 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | |
Finance lease obligations, current | $ 429 | $ 412 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | |
Finance lease obligations - noncurrent | $ 8,386 | $ 8,607 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities | |
Maturity of the operating lease liabilities | |||
Remainder of 2024 | $ 3,033 | ||
2025 | 5,151 | ||
2026 | 4,516 | ||
2027 | 3,798 | ||
2028 | 2,871 | ||
Thereafter | 5,757 | ||
Total undiscounted cash flows | 25,126 | ||
Less: present value discount | (2,643) | ||
Total lease liabilities | 22,483 | ||
Maturity of the financing lease liabilities | |||
Remainder of 2024 | 407 | ||
2025 | 831 | ||
2026 | 847 | ||
2027 | 867 | ||
2028 | 886 | ||
Thereafter | 7,884 | ||
Total undiscounted cash flows | 11,722 | ||
Less: present value discount | (2,907) | ||
Total lease liabilities | $ 8,815 |
LEASES - Related party (Details
LEASES - Related party (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Lease payments | $ 3,185 | $ 2,796 | ||
Remainder of 2024 | $ 3,033 | 3,033 | ||
Future minimum lease payments | 22,483 | 22,483 | ||
Executive Officer | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease payments | 237 | $ 220 | 473 | $ 441 |
Remainder of 2024 | 433 | 433 | ||
Future minimum lease payments | $ 5,828 | $ 5,828 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Balance at the beginning | $ 267,130 | $ 230,181 | $ 251,575 | $ 215,465 |
Balance at the ending | 265,715 | 236,794 | 265,715 | 236,794 |
Accumulated Other Comprehensive Income | ||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Balance at the beginning | (14,661) | (11,742) | (10,175) | (11,963) |
Unrealized gain (loss) on cash flow hedges | 274 | 1,427 | 984 | 883 |
Amounts reclassified from AOCI | (785) | (720) | (1,573) | (1,309) |
Foreign currency translation gain (loss) | (1,178) | (426) | (5,586) | 928 |
Balance at the ending | (16,350) | (11,461) | (16,350) | (11,461) |
Defined Benefit Plan Liability | ||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Balance at the beginning | (344) | (594) | (344) | (594) |
Balance at the ending | (344) | (594) | (344) | (594) |
Cash Flow Hedges | ||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Balance at the beginning | 4,329 | 5,745 | 4,431 | 7,310 |
Unrealized gain (loss) on cash flow hedges | 360 | 1,877 | 1,295 | 1,131 |
Amounts reclassified from AOCI | (1,033) | (947) | (2,070) | (1,766) |
Balance at the ending | 3,656 | 6,675 | 3,656 | 6,675 |
Tax effect of Cash Flow Hedges | ||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Balance at the beginning | (982) | (1,322) | (1,006) | (1,754) |
Unrealized gain (loss) on cash flow hedges, Tax effect | (86) | (450) | (311) | (248) |
Amounts reclassified from AOCI, Tax effect | 248 | 227 | 497 | 457 |
Balance at the ending | (820) | (1,545) | (820) | (1,545) |
Foreign Currency Translation Adjustments | ||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Balance at the beginning | (17,664) | (15,571) | (13,256) | (16,925) |
Foreign currency translation gain (loss) | (1,178) | (426) | (5,586) | 928 |
Balance at the ending | $ (18,842) | $ (15,997) | $ (18,842) | $ (15,997) |
DIVIDENDS PER SHARE (Details)
DIVIDENDS PER SHARE (Details) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
DIVIDENDS PER SHARE | ||||
Dividends declared (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.025 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic and diluted weighted-average shares outstanding | ||||
Basic weighted average shares outstanding | 16,567 | 15,969 | 16,480 | 15,921 |
Dilutive effect of potential common shares | 16 | 250 | 60 | 257 |
Diluted weighted average shares outstanding | 16,583 | 16,219 | 16,540 | 16,178 |
Stock awards excluded from the calculation of diluted income per share (in shares) | 21,000 | 67,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 customer | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 | Dec. 31, 2023 USD ($) | |
SEGMENT INFORMATION | |||||
Number of operating segments | segment | 1 | ||||
Identifiable assets | $ 595,766 | $ 595,766 | $ 597,542 | ||
Total revenues | Customer one | |||||
SEGMENT INFORMATION | |||||
Number of customers | customer | 1 | ||||
Total revenues | Customer Concentration Risk | Customer one | |||||
SEGMENT INFORMATION | |||||
Percentage of concentration risk | 12% | 10% | 10% | ||
Trade receivables | Customer Concentration Risk | Customer one | |||||
SEGMENT INFORMATION | |||||
Percentage of concentration risk | 15% | ||||
Europe, China, Mexico, and Asia-Pacific | |||||
SEGMENT INFORMATION | |||||
Identifiable assets | $ 33,935 | $ 33,935 | $ 35,751 | ||
United States | Total revenues | Geographic Concentration Risk | |||||
SEGMENT INFORMATION | |||||
Percentage of concentration risk | 52% | 58% | 55% | 57% |