Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Myers Industries, Inc. | |
Entity Central Index Key | 0000069488 | |
Trading Symbol | MYE | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 35,825,079 | |
Entity File Number | 1-8524 | |
Entity Tax Identification Number | 34-0778636 | |
Entity Address, Address Line One | 1293 South Main Street | |
Entity Address, City or Town | Akron | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44301 | |
City Area Code | 330 | |
Local Phone Number | 253-5592 | |
Entity Incorporation, State or Country Code | OH | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, without par value | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 132,258 | $ 125,480 | $ 372,902 | $ 398,880 |
Cost of sales | 85,191 | 85,894 | 240,779 | 266,799 |
Gross profit | 47,067 | 39,586 | 132,123 | 132,081 |
Selling, general and administrative expenses | 33,927 | 31,515 | 95,360 | 102,792 |
(Gain) loss on disposal of fixed assets | 0 | 11 | (7) | (87) |
Impairment charges | 0 | 0 | 0 | 916 |
Gain on sale of notes receivable | 0 | 0 | (11,924) | 0 |
Operating income | 13,140 | 8,060 | 48,694 | 28,460 |
Interest expense, net | 1,204 | 993 | 3,467 | 3,059 |
Income from continuing operations before income taxes | 11,936 | 7,067 | 45,227 | 25,401 |
Income tax expense | 3,251 | 1,848 | 11,448 | 6,933 |
Income from continuing operations | 8,685 | 5,219 | 33,779 | 18,468 |
Income from discontinued operations, net of income tax | 0 | 0 | 0 | 127 |
Net income | $ 8,685 | $ 5,219 | $ 33,779 | $ 18,595 |
Income per common share from continuing operations: | ||||
Basic | $ 0.24 | $ 0.15 | $ 0.94 | $ 0.52 |
Diluted | 0.24 | 0.15 | 0.94 | 0.52 |
Income (loss) per common share from discontinued operations: | ||||
Basic | 0 | 0 | 0 | 0 |
Diluted | 0 | 0 | 0 | 0 |
Net income per common share: | ||||
Basic | 0.24 | 0.15 | 0.94 | 0.52 |
Diluted | $ 0.24 | $ 0.15 | $ 0.94 | $ 0.52 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 8,685 | $ 5,219 | $ 33,779 | $ 18,595 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 611 | (466) | (924) | 1,069 |
Total other comprehensive income (loss) | 611 | (466) | (924) | 1,069 |
Comprehensive income | $ 9,296 | $ 4,753 | $ 32,855 | $ 19,664 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash | $ 83,746 | $ 75,527 |
Accounts receivable, less allowances of $2,954 and $1,945, respectively | 75,539 | 62,279 |
Income tax receivable | 0 | 142 |
Inventories, net | 48,137 | 44,260 |
Prepaid expenses and other current assets | 4,553 | 2,834 |
Total Current Assets | 211,975 | 185,042 |
Property, plant, and equipment, net | 53,945 | 54,964 |
Right of use asset - operating leases | 4,935 | 5,901 |
Goodwill | 66,420 | 66,774 |
Intangible assets, net | 25,477 | 30,754 |
Deferred income taxes | 178 | 5,807 |
Other | 3,453 | 3,897 |
Total Assets | 366,383 | 353,139 |
Current Liabilities | ||
Accounts payable | 47,562 | 46,867 |
Accrued employee compensation | 13,348 | 12,488 |
Income taxes payable | 3,391 | 0 |
Accrued taxes payable, other than income taxes | 1,505 | 1,104 |
Accrued interest | 965 | 1,785 |
Other current liabilities | 16,454 | 18,324 |
Operating lease liability - short-term | 1,786 | 2,057 |
Long-term debt - current portion | 39,975 | 0 |
Total Current Liabilities | 124,986 | 82,625 |
Long-term debt | 37,501 | 77,176 |
Operating lease liability - long-term | 3,365 | 4,074 |
Other liabilities | 12,933 | 22,582 |
Shareholders’ Equity | ||
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding) | 0 | 0 |
Common Shares, without par value (authorized 60,000,000 shares; outstanding 35,802,092 and 35,710,934; net of treasury shares of 6,750,365 and 6,841,523, respectively) | 21,858 | 21,785 |
Additional paid-in capital | 299,003 | 296,363 |
Accumulated other comprehensive loss | (17,273) | (16,349) |
Retained deficit | (115,990) | (135,117) |
Total Shareholders’ Equity | 187,598 | 166,682 |
Total Liabilities and Shareholders’ Equity | $ 366,383 | $ 353,139 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Allowance for Doubtful Accounts Receivable, Current | $ 2,954 | $ 1,945 |
Shareholders’ Equity | ||
Preferred Shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Shares, shares issued (in shares) | 0 | 0 |
Preferred Shares, shares outstanding (in shares) | 0 | 0 |
Common Shares, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common Shares, shares outstanding (in shares) | 35,802,092 | 35,710,934 |
Common shares, treasury (in shares) | 6,750,365 | 6,841,523 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment [Member] | Common Shares [Member] | Common Shares [Member]Cumulative Effect Period of Adoption Adjustment [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Cumulative Effect Period of Adoption Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect Period of Adoption Adjustment [Member] | Retained Deficit [Member] | Retained Deficit [Member]Cumulative Effect Period of Adoption Adjustment [Member] |
Beginning balance at Dec. 31, 2018 | $ 154,638 | $ 905 | $ 21,547 | $ 0 | $ 292,558 | $ 0 | $ (18,280) | $ 0 | $ (141,187) | $ 905 |
Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 18,595 | 0 | 0 | 0 | 18,595 | |||||
Beginning balance at Dec. 31, 2018 | 154,638 | $ 905 | 21,547 | $ 0 | 292,558 | $ 0 | (18,280) | $ 0 | (141,187) | $ 905 |
Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | ||||||||
Foreign currency translation adjustment | 1,069 | 0 | 0 | 1,069 | 0 | |||||
Shares issued under incentive plans, net of shares withheld for tax | (230) | 116 | (346) | 0 | 0 | |||||
Stock compensation expense | 3,348 | 0 | 3,348 | 0 | 0 | |||||
Declared dividends | (14,505) | 0 | 0 | 0 | (14,505) | |||||
Ending balance at Sep. 30, 2019 | 163,820 | 21,663 | 295,560 | (17,211) | (136,192) | |||||
Beginning balance at Jun. 30, 2019 | 162,410 | 21,646 | 294,066 | (16,745) | (136,557) | |||||
Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 5,219 | 0 | 0 | 0 | 5,219 | |||||
Beginning balance at Jun. 30, 2019 | 162,410 | 21,646 | 294,066 | (16,745) | (136,557) | |||||
Stockholders' Equity [Roll Forward] | ||||||||||
Foreign currency translation adjustment | (466) | 0 | 0 | (466) | 0 | |||||
Shares issued under incentive plans, net of shares withheld for tax | 383 | 17 | 366 | 0 | 0 | |||||
Stock compensation expense | 1,128 | 0 | 1,128 | 0 | 0 | |||||
Declared dividends | (4,854) | 0 | 0 | 0 | (4,854) | |||||
Ending balance at Sep. 30, 2019 | 163,820 | 21,663 | 295,560 | (17,211) | (136,192) | |||||
Beginning balance at Dec. 31, 2019 | 166,682 | 21,785 | 296,363 | (16,349) | (135,117) | |||||
Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 33,779 | 0 | 0 | 0 | 33,779 | |||||
Beginning balance at Dec. 31, 2019 | 166,682 | 21,785 | 296,363 | (16,349) | (135,117) | |||||
Stockholders' Equity [Roll Forward] | ||||||||||
Foreign currency translation adjustment | (924) | 0 | 0 | (924) | 0 | |||||
Shares issued under incentive plans, net of shares withheld for tax | (50) | 73 | (123) | 0 | 0 | |||||
Stock compensation expense | 2,763 | 0 | 2,763 | 0 | 0 | |||||
Declared dividends | (14,652) | 0 | 0 | 0 | (14,652) | |||||
Ending balance at Sep. 30, 2020 | 187,598 | 21,858 | 299,003 | (17,273) | (115,990) | |||||
Beginning balance at Jun. 30, 2020 | 181,695 | 21,845 | 297,522 | (17,884) | (119,788) | |||||
Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 8,685 | 0 | 0 | 0 | 8,685 | |||||
Beginning balance at Jun. 30, 2020 | 181,695 | 21,845 | 297,522 | (17,884) | (119,788) | |||||
Stockholders' Equity [Roll Forward] | ||||||||||
Foreign currency translation adjustment | 611 | 0 | 0 | 611 | 0 | |||||
Shares issued under incentive plans, net of shares withheld for tax | 77 | 13 | 64 | 0 | 0 | |||||
Stock compensation expense | 1,417 | 0 | 1,417 | 0 | 0 | |||||
Declared dividends | (4,887) | 0 | 0 | 0 | (4,887) | |||||
Ending balance at Sep. 30, 2020 | $ 187,598 | $ 21,858 | $ 299,003 | $ (17,273) | $ (115,990) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Retained Deficit [Member] | ||||
Dividends declared per share | $ 0.135 | $ 0.135 | $ 0.405 | $ 0.405 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 33,779 | $ 18,595 |
Income (loss) from discontinued operations, net of income taxes | 0 | 127 |
Income (loss) from continuing operations | 33,779 | 18,468 |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities | ||
Depreciation | 10,400 | 11,505 |
Amortization | 5,507 | 6,183 |
Non-cash stock-based compensation expense | 2,763 | 3,348 |
Gain on disposal of fixed assets | (7) | (87) |
Gain on sale of notes receivable | (11,924) | 0 |
Impairment charges | 0 | 916 |
Other | 844 | 441 |
Payments on long-term performance based compensation | 0 | (413) |
Other long-term liabilities | 1,538 | 3,388 |
Cash flows provided by (used for) working capital | ||
Accounts receivable | (14,266) | 9,775 |
Inventories | (3,939) | 2,386 |
Prepaid expenses and other current assets | (1,728) | (877) |
Accounts payable and accrued expenses | 8,367 | (15,541) |
Net cash provided by (used for) operating activities - continuing operations | 31,334 | 39,492 |
Net cash provided by (used for) operating activities - discontinued operations | 0 | 7,297 |
Net cash provided by (used for) operating activities | 31,334 | 46,789 |
Cash Flows From Investing Activities | ||
Capital expenditures | (8,955) | (5,669) |
Acquisition of business | (716) | (18,000) |
Proceeds from sale of property, plant and equipment | 0 | 7,514 |
Proceeds on sale of notes receivable | 1,200 | 0 |
Net cash provided by (used for) investing activities - continuing operations | (8,471) | (16,155) |
Net cash provided by (used for) investing activities - discontinued operations | 0 | 0 |
Net cash provided by (used for) investing activities | (8,471) | (16,155) |
Cash Flows From Financing Activities | ||
Cash dividends paid | (14,570) | (14,524) |
Proceeds from issuance of common stock | 367 | 755 |
Shares withheld for employee taxes on equity awards | (416) | (985) |
Net cash provided by (used for) financing activities - continuing operations | (14,619) | (14,754) |
Net cash provided by (used for) financing activities - discontinued operations | 0 | 0 |
Net cash provided by (used for) financing activities | (14,619) | (14,754) |
Foreign exchange rate effect on cash | (25) | 40 |
Net increase in cash | 8,219 | 15,920 |
Cash at January 1 | 75,527 | 58,894 |
Cash at September 30 | $ 83,746 | $ 74,814 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. Results from our former Brazil Business, which was sold in 2017, are presented as discontinued operations. Net cash flows provided by discontinued operations in 2019 resulted from the remaining receipt of the tax benefit from a worthless stock deduction, which was recognized as part of the sale. Net income from discontinued operations for the nine months ended September 30, 2019 related to interest income net of tax recognized on the receipt of the tax benefit in the first quarter of 2019. There was no discontinued operations activity for the quarter and nine months ended September 30, 2020. In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and nine months ended September 30, 2020 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2020. Accounting Standards Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In January 2017 , the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The Company adopted this standard effective January 1, 2020 and the adoption of this standard did not have a material impact on its condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Fair Value Measurement The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly. Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions. The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximates carrying value due to the nature and relative short maturity of these assets and liabilities. The fair value of debt under the Company’s Loan Agreement, as defined in Note 13, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At September 30, 2020 and December 31, 2019, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $80.3 million and $79.0 million, respectively. The purchase price allocation associated with the August 26, 2019 acquisition of Tuffy Manufacturing Industries, Inc., as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) are as follows: Foreign Currency Defined Benefit Pension Plans Total Balance at July 1, 2020 $ (16,137 ) $ (1,747 ) $ (17,884 ) Other comprehensive income (loss) before reclassifications 611 — 611 Net current-period other comprehensive income (loss) 611 — 611 Balance at September 30, 2020 $ (15,526 ) $ (1,747 ) $ (17,273 ) Foreign Currency Defined Benefit Pension Plans Total Balance at July 1, 2019 $ (14,716 ) $ (2,029 ) $ (16,745 ) Other comprehensive income (loss) before reclassifications (466 ) — (466 ) Net current-period other comprehensive income (loss) (466 ) — (466 ) Balance at September 30, 2019 $ (15,182 ) $ (2,029 ) $ (17,211 ) Foreign Currency Defined Benefit Pension Plans Total Balance at January 1, 2020 $ (14,602 ) $ (1,747 ) $ (16,349 ) Other comprehensive income (loss) before reclassifications (924 ) — (924 ) Net current-period other comprehensive income (loss) (924 ) — (924 ) Balance at September 30, 2020 $ (15,526 ) $ (1,747 ) $ (17,273 ) Foreign Currency Defined Benefit Pension Plans Total Balance at January 1, 2019 $ (16,251 ) $ (2,029 ) $ (18,280 ) Other comprehensive income (loss) before reclassifications 1,069 — 1,069 Net current-period other comprehensive income (loss) 1,069 — 1,069 Balance at September 30, 2019 $ (15,182 ) $ (2,029 ) $ (17,211 ) Allowance for Credit Losses Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected. The change in the allowance for credit losses for the nine months ended September 30, 2020 2020 Balance at January 1 $ 1,356 Provision for expected credit loss, net of recoveries 879 Write-offs and other (324 ) Balance at September 30 $ 1,911 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition The Company’s revenue by major market is as follows: For the Quarter Ended September 30, 2020 Material Handling Distribution Inter-company Consolidated Consumer $ 26,865 $ — $ — $ 26,865 Vehicle 19,715 — — 19,715 Food and beverage 11,882 — — 11,882 Industrial 28,307 — (28 ) 28,279 Auto aftermarket — 45,517 — 45,517 Total net sales $ 86,769 $ 45,517 $ (28 ) $ 132,258 For the Quarter Ended September 30, 2019 Material Handling Distribution Inter-company Consolidated Consumer $ 19,205 $ — $ — $ 19,205 Vehicle 21,951 — — 21,951 Food and beverage 13,010 — — 13,010 Industrial 29,944 — (18 ) 29,926 Auto aftermarket — 41,388 — 41,388 Total net sales $ 84,110 $ 41,388 $ (18 ) $ 125,480 For the Nine Months Ended September 30, 2020 Material Handling Distribution Inter-company Consolidated Consumer $ 78,363 $ — $ — $ 78,363 Vehicle 49,840 — — 49,840 Food and beverage 38,373 — — 38,373 Industrial 85,124 — (51 ) 85,073 Auto aftermarket — 121,253 — 121,253 Total net sales $ 251,700 $ 121,253 $ (51 ) $ 372,902 For the Nine Months Ended September 30, 2019 Material Handling Distribution Inter-company Consolidated Consumer $ 59,505 $ — $ — $ 59,505 Vehicle 66,433 — — 66,433 Food and beverage 54,977 — — 54,977 Industrial 102,048 — (40 ) 102,008 Auto aftermarket — 115,957 — 115,957 Total net sales $ 282,963 $ 115,957 $ (40 ) $ 398,880 Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product. Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include: September 30, December 31, Statement of Financial Position 2020 2019 Classification Returns, discounts and other allowances $ (1,043 ) $ (589 ) Accounts receivable Right of return asset 379 312 Inventories, net Customer deposits (142 ) (269 ) Other current liabilities Accrued rebates (2,620 ) (2,349 ) Other current liabilities Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer and is classified as Selling, General and Administrative Cost of Sales Selling, General and Administrative Cost of Sales Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | 3. Acquisition On August 26, 2019, the Company acquired the assets of Tuffy Manufacturing Industries, Inc. (“Tuffy”), a warehouse distributor of tire repair equipment and supplies, which is included in the Distribution Segment. The Tuffy acquisition aligns with the Company’s strategy to grow in key niche markets and focus on strategic account customers. The purchase price for the acquisition was $18.7 million, which includes a working capital adjustment of $0.7 million that was paid in 2020. The Company funded the acquisition using available cash. The acquisition of Tuffy was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. Assets acquired: Accounts receivable $ 2,105 Inventories 2,719 Prepaid expenses 43 Property, plant and equipment 124 Right of use asset - operating leases 229 Intangible assets 8,400 Goodwill 7,143 Assets acquired $ 20,763 Liabilities assumed: Accounts payable $ 1,675 Accrued expenses 143 Operating lease liability - short term 112 Operating lease liability - long term 117 Total liabilities assumed 2,047 Net acquisition cost $ 18,716 The goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized and is deductible for tax purposes. The intangible assets included above consist of the following: Fair Value Weighted Average Estimated Useful Life Customer relationships $ 7,300 7.3 years Trade name 500 5.0 years Non-competition agreements 600 5.0 years Total amortizable intangible assets $ 8,400 |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract] | |
Assets Held for Sale | 4. Assets Held for Sale As of September 30, 2020 and December 31, 2019, a building with a carrying value of $1.9 million was classified as held for sale and is included in Other Assets When a facility meets held for sale classification criteria, it is also evaluated for impairment by comparing its carrying value to its estimated fair value less estimated costs to sell. Estimated fair value of these buildings was based on third party offers, which are Level 2 inputs. No impairment related to assets held for sale was recognized in the quarters ended September 30, 2020 or 2019 or for the nine months ended September 30, 2020. An impairment charge of $0.9 million was recorded during the nine months ended September 30, 2019 in connection with a building meeting the held for sale criteria. |
Settlement of Note Receivable a
Settlement of Note Receivable and Lease Guarantee | 9 Months Ended |
Sep. 30, 2020 | |
Settlement Of Note Receivable And Lease Guarantee [Abstract] | |
Settlement of Note Receivable and Lease Guarantee | 5. Settlement of Note Receivable and Lease Guarantee In 2015, the Company sold its Lawn and Garden business to an entity controlled by Wingate Partners V, L.P. (“L&G Buyer”), which later became HC Companies, Inc. (“HC”). The terms of the sale included promissory notes from HC. Due to uncertainty of collection, a provision for expected loss of $23.0 million was recorded within continuing operations during the third quarter of 2018 to fully impair the notes and corresponding interest receivable. The Company also ceased recognizing interest income following recognition of the provision. Also, in connection with the sale of the Lawn and Garden business, the Company became a guarantor for any remaining rent payments under one of HC’s facility leases expiring in September 2025. Annual rent for the facility is approximately $2 million. Due to the financial risk associated with HC, the Company assessed its range of potential obligations under the lease guarantee, and recorded a liability and related pre-tax charge of $10.3 million during the third quarter of 2018. The carrying value of the lease contingency as of December 31, 2019 was $10.7 million, which represented the initial liability recorded plus accretion and was included in Other Liabilities In January 2020, the Company sold to HC the fully-reserved promissory notes and related accrued interest receivable in exchange for $1.2 million and the release from the lease guarantee resulting in an $11.9 million pre-tax gain. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 6. Restructuring In March 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”) that operates within the Material Handling Segment. The Company plans to consolidate manufacturing operations currently conducted at Ameri-Kart’s Cassopolis, Michigan and Bristol, Indiana facilities with expanded operations in a new facility in Bristol, Indiana (the “Ameri-Kart Plan”). In December 2019, the Company entered into an agreement where a new manufacturing and distribution facility in Bristol, Indiana will be constructed, and when substantially complete, the Company will lease that new facility and sell its existing facility in Bristol, Indiana. In December 2019, the Company also provided one year advance termination notice on the lease of its Cassopolis, Michigan facility. The Ameri-Kart Plan is expected to be substantially completed in the first quarter of 2021 and total restructuring costs expected to be incurred are approximately $1.1 million, primarily related to equipment relocation and facility shut down costs. In March 2019, the Company committed to implementing transformation initiatives within the Distribution Segment (the “Distribution Transformation Plan”) that are intended to increase sales force effectiveness, reduce costs and improve contribution margins. The Company realigned its Distribution Segment’s commercial sales structure, which included the elimination of certain sales and administrative positions, and put into place plans to expand its e-commerce platform. All actions under the Distribution Transformation Plan were substantially completed by the end of 2019. No restructuring charges were incurred during the quarter ended September 30, 2020 and no significant amounts were recognized during the quarter ended September 30, 2019. Charges for the above restructuring plans for the nine months ended September 30, 2020 and 2019 are as follows: For the Nine Months Ended September 30, 2020 2019 Segment Cost of Sales SG&A Total Cost of Sales SG&A Total Distribution $ — $ — $ — $ — $ 865 $ 865 Material Handling — — — — — — Total $ — $ — $ — $ — $ 865 $ 865 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 50 percent of inventories are valued using the LIFO method of determining cost. All other inventories are valued using the FIFO method of determining cost. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. Based on management’s projections of inventory levels and costs, no adjustment to the LIFO reserve was recorded for the quarter or nine months ended September 30, 2020 or for the quarter ended September 30, 2019. During 2019, one inventory pool had a reduction in inventory quantities that was expected to remain through year-end, and therefore, a LIFO liquidation adjustment of $0.3 million was recorded to decrease cost of sales in the nine months ended September 30, 2019. Inventories consisted of the following: September 30, December 31, 2020 2019 Finished and in-process products $ 34,035 $ 32,537 Raw materials and supplies 14,102 11,723 $ 48,137 $ 44,260 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 8. Other Liabilities The balance in Other Current Liabilities September 30, December 31, 2020 2019 Customer deposits and accrued rebates $ 2,762 $ 2,618 Dividends payable 5,196 5,114 Accrued litigation, claims and professional fees 609 479 Current portion of environmental reserves 1,453 1,533 Accrued product replacement costs 477 1,835 Other accrued expenses 5,957 6,745 $ 16,454 $ 18,324 In August 2019, a manufacturing defect was identified for certain boxes produced within the Material Handling segment in May and June 2019. Certain of the affected boxes require replacement. The total range of cost to replace these boxes is estimated to be $3.5 million to $4.0 million. In the quarter ended September 30, 2019, approximately $3.5 million of estimated costs were recorded related to this matter, of which approximately $0.5 million remains accrued as of September 30, 2020 and is included within Other Current Liabilities The balance in Other Liabilities September 30, December 31, 2020 2019 Lease guarantee contingency $ — $ 10,724 Environmental reserves 6,760 6,658 Supplemental executive retirement plan liability 1,542 1,776 Pension liability 875 956 Other long-term liabilities 3,756 2,468 $ 12,933 $ 22,582 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets The change in goodwill for the nine months ended September 30, 2020 Distribution Material Handling Total January 1, 2020 $ 7,716 $ 59,058 $ 66,774 Purchase accounting adjustment (68 ) — (68 ) Foreign currency translation — (286 ) (286 ) September 30, 2020 $ 7,648 $ 58,772 $ 66,420 Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, non-competition agreements and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated useful lives. I ndefinite-lived trade names had a carrying value of $ 9.8 million at both September 30, 2020 and December 31, 2019 . Refer to Note 3 for the intangible assets acquired through the Tuffy acquisition during the quarter ended September 30, 2019. |
Net Income per Common Share
Net Income per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | 10. Net Income per Common Share Net income per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average common shares outstanding basic 35,796,247 35,495,157 35,764,822 35,451,980 Dilutive effect of stock options and restricted stock 146,882 263,875 173,364 371,251 Weighted average common shares outstanding diluted 35,943,129 35,759,032 35,938,186 35,823,231 Options to purchase 607,123 and 435,998 shares of common stock that were outstanding for the quarter and nine months ended for the quarter and nine months ended were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of common shares, and were therefore anti-dilutive. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | 11. Stock Compensation The Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”) authorizes the Compensation Committee of the Board of Directors to issue up to 5,126,950 shares of various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant. Stock compensation expense was approximately $1.4 million and $1.1 million for the quarters ended September 30, 2020 and 2019, respectively, and $2.8 million and $3.3 million for the nine months ended September 30, 2020 and 2019, respectively. Stock compensation expense in quarter ended September 30, 2020 included $0.6 million from award acceleration related to executive severances. These expenses are included in Selling, General and Administrative |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 12. Contingencies The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods. New Idria Mercury Mine In September 2015, the U.S. Environmental Protection Agency (“EPA”) informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”). New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries, Inc. in 1987. As a result of the EPA Notice Letter, Buckhorn and the Company engaged in negotiations with the EPA with respect to a draft Administrative Order of Consent (“AOC”) proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives. During the fourth quarter of 2018, the Company and the EPA finalized the AOC and related Statement of Work (“SOW”) with regards to the New Idria Mine. The AOC is effective as of November 27, 2018, the date that it was executed by the EPA. The AOC and accompanying SOW document the terms, conditions and procedures for the Company’s performance of the RI/FS. In addition, the AOC requires the Company to provide $2 million of financial assurance to the EPA to secure its performance during the estimated life of the RI/FS. In January 2019, the Company provided this assurance as a letter of credit. The AOC also includes provisions for payment by the Company of the EPA’s costs of oversight of the RI/FS, including a prepayment in the amount of approximately $0.2 million, which was paid in January 2019. A draft work plan for the RI/FS, in accordance with the AOC and related SOW, was submitted to the EPA for review and approval in July 2019. Upon preparation of the draft work plan for the RI/FS, the Company received preliminary estimates from its consultants for the cost of the execution of the work plan. Based on these preliminary estimates, the Company recognized additional expense of $4.0 million during the second quarter of 2019. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur in early 2021. The Company believes it has insurance coverage that applies to the New Idria Mine and thus may be able to recover a portion of the estimated costs; however, as of September 30, 2020, the Company has not recognized potential recovery in its condensed consolidated financial statements. Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, the Company has recognized $9.9 million of costs, of which approximately $3.2 million has been paid to date. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible insurance resources and other PRPs, EPA oversight fees, past cost claims made by the EPA (who, as of April 2020, is represented by the U.S. Department of Justice), periodic monitoring, and responses to unilateral administrative orders issued by the EPA. No expenses were recorded related to the New Idria Mine in the quarter and nine months ended September 30, 2020 and in the quarter ended September 30, 2019. Expenses of $4.0 million were recorded in the nine months ended September 30, 2019. As of September 30, 2020, the Company has a total reserve of $6.7 million related to the New Idria Mine, of which $1.1 million is classified in Other Current Liabilities Other Liabilities It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of the Company’s liability are based on current facts, laws, regulations and technology. Estimates of the Company’s environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation. At this time, we have not accrued for remediation costs in connection with this site as we are unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined. New Almaden Mine A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area. Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project, originally estimated to be approximately $1.6 million. As a result, in 2005, the Company recognized expense of $0.8 million $0.5 $3.3 million and $4.4 million. $1.2 $1.5 Other Current Liabilities Other Liabilities The project has not yet been implemented though significant work on design and planning has been performed. The Company is currently awaiting notice from Santa Clara County on the expected timing of fieldwork to commence. As work on the project occurs, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. Patent Infringement On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC and Scepter Corporation in the United States District Court for the District of Kansas asserting infringement of two patents, breach of contract, and trade dress claims in relation to plastic gasoline containers Scepter manufactures and sells in the United States. Scepter Canada, Inc. was later added in a second amended complaint. On November 15, 2019 the court dismissed Scepter Corporation from the action. A full schedule in the case has not yet issued. The Scepter companies intend to defend themselves vigorously in this matter. On December 28, 2019, Scepter Canada, Inc. filed petitions for inter partes matter. |
Long-Term Debt and Loan Agreeme
Long-Term Debt and Loan Agreements | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Loan Agreements | 13. Long-Term Debt and Loan Agreements Long-term debt consisted of the following: September 30, December 31, 2020 2019 Loan Agreement $ — $ — 4.67% Senior Unsecured Notes due January 15, 2021 40,000 40,000 5.25% Senior Unsecured Notes due January 15, 2024 11,000 11,000 5.30% Senior Unsecured Notes due January 15, 2024 15,000 15,000 5.45% Senior Unsecured Notes due January 15, 2026 12,000 12,000 78,000 78,000 Less unamortized deferred financing costs 524 824 77,476 77,176 Less current portion long-term debt 39,975 — Long-term debt $ 37,501 $ 77,176 In March 2017, the Company entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement”). The Loan Agreement amended the pre-existing senior revolving credit facility’s borrowing limit to $200 million, inclusive of letters of credit, and extended the maturity date from December 2018 to March 2022. As of September 30, 2020, the Company had $194.2 million available under the Loan Agreement. The Company had $5.8 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business, including the $2 million provided to the EPA as discussed in Note 12. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement. The Company also holds Senior Unsecured Notes (“Notes”), which range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45%, payable semiannually, and maturing between January 2021 and January 2026. At September 30, 2020, $78.0 million of the Notes were outstanding. The weighted average interest rate on borrowings under the Company’s long-term debt was 6.28% for each of the quarters ended September 30, 2020 and 2019, and 6.27% and 6.26% for the nine months ended September 30, 2020 and 2019, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs. As of September 30, 2020, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 14. Retirement Plans The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02 Net periodic pension cost is as follows: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Interest cost $ 48 $ 60 $ 144 $ 180 Expected return on assets (51 ) (46 ) (153 ) (138 ) Amortization of net loss 20 24 60 72 Net periodic pension cost $ 17 $ 38 $ 51 $ 114 The Company expects to make contributions to the plan totaling $150 in 2020 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company’s effective tax rate was 27.2% and 25.3% for the quarter and nine months ended September 30, 2020, respectively, compared to 26.2% and 27.3% for the quarter and nine months ended September 30, 2019, respectively. The effective income tax rate for both periods was different than the Company’s statutory rate, primarily due to state taxes and non-deductible expenses. The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $1.1 million at September 30, 2020 and December 31, 2019. The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of September 30, 2020, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015. The Company’s 2017 U.S. Federal tax return is currently under audit by the Internal Revenue Service (“IRS”). The Company is subject to state and local examinations for tax years of 2015 through 2018. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2015 through 2019. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. While the Company expects to realize certain benefits under the CARES Act and is continuing to evaluate its impacts, it does not believe the CARES Act will materially affect its condensed consolidated financial statements. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 16. Leases The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to seven years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in right of use asset – operating leases operating lease liability – short term operating lease liability – long term The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include: September 30, December 31, 2020 2019 Right of use asset - operating leases $ 4,935 $ 5,901 Operating lease liability - short-term $ 1,786 $ 2,057 Operating lease liability - long-term 3,365 4,074 Total operating lease liabilities $ 5,151 $ 6,131 The components of lease expense include: For the Quarter Ended September 30, For the Nine Months Ended September 30, Lease Cost Classification 2020 2019 2020 2019 Operating lease cost (1) Cost of sales $ 392 $ 453 $ 1,226 $ 1,310 Operating lease cost (1) Selling, general and administrative expenses 396 441 1,264 1,338 Total lease cost $ 788 $ 894 $ 2,490 $ 2,648 (1) Includes short-term leases and variable lease costs, which are immaterial Supplemental cash flow information related to leases was as follows: For the Nine Months Ended September 30, Supplemental Cash Flow Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,877 $ 1,808 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 701 $ 2,029 Lease Term and Discount Rate September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years): Operating leases 3.81 4.23 Weighted-average discount rate: Operating leases 5.0 % 5.0 % Maturity of Lease Liabilities - As of September 30, 2020 Operating Leases 2020 (1) $ 568 2021 1,782 2022 1,312 2023 1,038 2024 339 After 2024 621 Total lease payments 5,660 Less: Interest (509 ) Present value of lease liabilities $ 5,151 (1) Represents amounts due in 2020 after September 30, 2020 In December 2019, the Company entered into an agreement where a new manufacturing and distribution facility in Bristol, Indiana will be constructed, and when it is substantially complete, the Company will lease that new facility and sell its existing facility in Bristol, Indiana. As described in Note 6, this agreement was in connection with the Ameri-Kart Plan, which includes facility consolidation for this business within the Material Handling Segment. This lease is not included in the tables disclosed above because it has not yet commenced; it commences when the facility is substantially complete, which is expected during the first quarter of 2021. Upon commencement, the lease has an initial term of fifteen years with base annual rent of approximately $0.8 million during the first year. Inclusive of scheduled increases the total expected future minimum lease payments during the initial term of the lease is approximately $13.5 million, but may vary depending on the actual cost of certain construction activities. At commencement of this lease, the Company expects assets and liabilities within the Condensed Consolidated Statement of Financial Position to each increase by approximately $9 million. |
Industry Segments
Industry Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Industry Segments | 17. Industry Segments The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker (“CODM”) evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, among others. Products are sold both directly to end-users and through distributors. The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and five regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire retreaders, and government agencies. The acquisition of Tuffy, described in Note 3, is included within the Distribution Segment. Total sales from foreign business units were approximately $9.8 million and $8.6 million for the quarters ended September 30, 2020 and 2019, respectively, and $28.0 million and $32.8 million for the nine months ended September 30, 2020 and 2019. Summarized segment detail for the quarters and nine months ended September 30, 2020 and 2019 are presented in the following table: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Net Sales Material Handling $ 86,769 $ 84,110 $ 251,700 $ 282,963 Distribution 45,517 41,388 121,253 115,957 Inter-company sales (28 ) (18 ) (51 ) (40 ) Total net sales $ 132,258 $ 125,480 $ 372,902 $ 398,880 Operating income Material Handling (1) $ 15,593 $ 10,385 $ 46,556 $ 44,181 Distribution 5,091 3,382 8,577 6,923 Corporate (1) (2) (3) (7,544 ) (5,707 ) (6,439 ) (22,644 ) Total operating income 13,140 8,060 48,694 28,460 Interest expense, net (1,204 ) (993 ) (3,467 ) (3,059 ) Income from continuing operations before income taxes $ 11,936 $ 7,067 $ 45,227 $ 25,401 (1) In the quarter and nine months ended September 30, 2020, the Company incurred $2.4 million of executive severance charges, of which $1.5 million is included in Corporate and $0.9 million is included in Material Handling. This executive severance cost includes $1.8 million of severance and benefits and $0.6 million of charges for acceleration of stock compensaton. (2) In the nine months ended September 30, 2020, the Company recognized in Corporate a $11.9 million gain on the sale of notes receivable as described in Note 5. (3) In the nine months ended September 30, 2019, the Company recognized in Corporate a $4.0 million environmental charge as described in Note 12. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. Results from our former Brazil Business, which was sold in 2017, are presented as discontinued operations. Net cash flows provided by discontinued operations in 2019 resulted from the remaining receipt of the tax benefit from a worthless stock deduction, which was recognized as part of the sale. Net income from discontinued operations for the nine months ended September 30, 2019 related to interest income net of tax recognized on the receipt of the tax benefit in the first quarter of 2019. There was no discontinued operations activity for the quarter and nine months ended September 30, 2020. In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and nine months ended September 30, 2020 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2020. |
Accounting Standards Adopted and Not Yet Adopted | Accounting Standards Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In January 2017 , the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The Company adopted this standard effective January 1, 2020 and the adoption of this standard did not have a material impact on its condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Fair Value Measurement | Fair Value Measurement The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly. Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions. The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximates carrying value due to the nature and relative short maturity of these assets and liabilities. The fair value of debt under the Company’s Loan Agreement, as defined in Note 13, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At September 30, 2020 and December 31, 2019, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated to be $80.3 million and $79.0 million, respectively. The purchase price allocation associated with the August 26, 2019 acquisition of Tuffy Manufacturing Industries, Inc., as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) are as follows: Foreign Currency Defined Benefit Pension Plans Total Balance at July 1, 2020 $ (16,137 ) $ (1,747 ) $ (17,884 ) Other comprehensive income (loss) before reclassifications 611 — 611 Net current-period other comprehensive income (loss) 611 — 611 Balance at September 30, 2020 $ (15,526 ) $ (1,747 ) $ (17,273 ) Foreign Currency Defined Benefit Pension Plans Total Balance at July 1, 2019 $ (14,716 ) $ (2,029 ) $ (16,745 ) Other comprehensive income (loss) before reclassifications (466 ) — (466 ) Net current-period other comprehensive income (loss) (466 ) — (466 ) Balance at September 30, 2019 $ (15,182 ) $ (2,029 ) $ (17,211 ) Foreign Currency Defined Benefit Pension Plans Total Balance at January 1, 2020 $ (14,602 ) $ (1,747 ) $ (16,349 ) Other comprehensive income (loss) before reclassifications (924 ) — (924 ) Net current-period other comprehensive income (loss) (924 ) — (924 ) Balance at September 30, 2020 $ (15,526 ) $ (1,747 ) $ (17,273 ) Foreign Currency Defined Benefit Pension Plans Total Balance at January 1, 2019 $ (16,251 ) $ (2,029 ) $ (18,280 ) Other comprehensive income (loss) before reclassifications 1,069 — 1,069 Net current-period other comprehensive income (loss) 1,069 — 1,069 Balance at September 30, 2019 $ (15,182 ) $ (2,029 ) $ (17,211 ) |
Allowance for Credit Losses | Allowance for Credit Losses Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected. The change in the allowance for credit losses for the nine months ended September 30, 2020 2020 Balance at January 1 $ 1,356 Provision for expected credit loss, net of recoveries 879 Write-offs and other (324 ) Balance at September 30 $ 1,911 |
Revenue Recognition | Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into any long-term contracts with customers greater than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90-day time frame mentioned above. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product. |
Leases | The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to seven years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in right of use asset – operating leases operating lease liability – short term operating lease liability – long term The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The balances in the Company's Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) are as follows: Foreign Currency Defined Benefit Pension Plans Total Balance at July 1, 2020 $ (16,137 ) $ (1,747 ) $ (17,884 ) Other comprehensive income (loss) before reclassifications 611 — 611 Net current-period other comprehensive income (loss) 611 — 611 Balance at September 30, 2020 $ (15,526 ) $ (1,747 ) $ (17,273 ) Foreign Currency Defined Benefit Pension Plans Total Balance at July 1, 2019 $ (14,716 ) $ (2,029 ) $ (16,745 ) Other comprehensive income (loss) before reclassifications (466 ) — (466 ) Net current-period other comprehensive income (loss) (466 ) — (466 ) Balance at September 30, 2019 $ (15,182 ) $ (2,029 ) $ (17,211 ) Foreign Currency Defined Benefit Pension Plans Total Balance at January 1, 2020 $ (14,602 ) $ (1,747 ) $ (16,349 ) Other comprehensive income (loss) before reclassifications (924 ) — (924 ) Net current-period other comprehensive income (loss) (924 ) — (924 ) Balance at September 30, 2020 $ (15,526 ) $ (1,747 ) $ (17,273 ) Foreign Currency Defined Benefit Pension Plans Total Balance at January 1, 2019 $ (16,251 ) $ (2,029 ) $ (18,280 ) Other comprehensive income (loss) before reclassifications 1,069 — 1,069 Net current-period other comprehensive income (loss) 1,069 — 1,069 Balance at September 30, 2019 $ (15,182 ) $ (2,029 ) $ (17,211 ) |
Summary of Change in Allowance for Credit Losses | The change in the allowance for credit losses for the nine months ended September 30, 2020 2020 Balance at January 1 $ 1,356 Provision for expected credit loss, net of recoveries 879 Write-offs and other (324 ) Balance at September 30 $ 1,911 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of Revenue by Major Market | The Company’s revenue by major market is as follows: For the Quarter Ended September 30, 2020 Material Handling Distribution Inter-company Consolidated Consumer $ 26,865 $ — $ — $ 26,865 Vehicle 19,715 — — 19,715 Food and beverage 11,882 — — 11,882 Industrial 28,307 — (28 ) 28,279 Auto aftermarket — 45,517 — 45,517 Total net sales $ 86,769 $ 45,517 $ (28 ) $ 132,258 For the Quarter Ended September 30, 2019 Material Handling Distribution Inter-company Consolidated Consumer $ 19,205 $ — $ — $ 19,205 Vehicle 21,951 — — 21,951 Food and beverage 13,010 — — 13,010 Industrial 29,944 — (18 ) 29,926 Auto aftermarket — 41,388 — 41,388 Total net sales $ 84,110 $ 41,388 $ (18 ) $ 125,480 For the Nine Months Ended September 30, 2020 Material Handling Distribution Inter-company Consolidated Consumer $ 78,363 $ — $ — $ 78,363 Vehicle 49,840 — — 49,840 Food and beverage 38,373 — — 38,373 Industrial 85,124 — (51 ) 85,073 Auto aftermarket — 121,253 — 121,253 Total net sales $ 251,700 $ 121,253 $ (51 ) $ 372,902 For the Nine Months Ended September 30, 2019 Material Handling Distribution Inter-company Consolidated Consumer $ 59,505 $ — $ — $ 59,505 Vehicle 66,433 — — 66,433 Food and beverage 54,977 — — 54,977 Industrial 102,048 — (40 ) 102,008 Auto aftermarket — 115,957 — 115,957 Total net sales $ 282,963 $ 115,957 $ (40 ) $ 398,880 |
Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition | Amounts included in the Condensed Consolidated Statements of Financial Position (Unaudited) related to revenue recognition include: September 30, December 31, Statement of Financial Position 2020 2019 Classification Returns, discounts and other allowances $ (1,043 ) $ (589 ) Accounts receivable Right of return asset 379 312 Inventories, net Customer deposits (142 ) (269 ) Other current liabilities Accrued rebates (2,620 ) (2,349 ) Other current liabilities |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price based on the estimated fair value of assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. Assets acquired: Accounts receivable $ 2,105 Inventories 2,719 Prepaid expenses 43 Property, plant and equipment 124 Right of use asset - operating leases 229 Intangible assets 8,400 Goodwill 7,143 Assets acquired $ 20,763 Liabilities assumed: Accounts payable $ 1,675 Accrued expenses 143 Operating lease liability - short term 112 Operating lease liability - long term 117 Total liabilities assumed 2,047 Net acquisition cost $ 18,716 |
Summary of Intangible Assets | The intangible assets included above consist of the following: Fair Value Weighted Average Estimated Useful Life Customer relationships $ 7,300 7.3 years Trade name 500 5.0 years Non-competition agreements 600 5.0 years Total amortizable intangible assets $ 8,400 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Summary of Charges for Restructuring Plans | Charges for the above restructuring plans for the nine months ended September 30, 2020 and 2019 are as follows: For the Nine Months Ended September 30, 2020 2019 Segment Cost of Sales SG&A Total Cost of Sales SG&A Total Distribution $ — $ — $ — $ — $ 865 $ 865 Material Handling — — — — — — Total $ — $ — $ — $ — $ 865 $ 865 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Determination Cost of Inventories | Inventories consisted of the following: September 30, December 31, 2020 2019 Finished and in-process products $ 34,035 $ 32,537 Raw materials and supplies 14,102 11,723 $ 48,137 $ 44,260 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | The balance in Other Current Liabilities September 30, December 31, 2020 2019 Customer deposits and accrued rebates $ 2,762 $ 2,618 Dividends payable 5,196 5,114 Accrued litigation, claims and professional fees 609 479 Current portion of environmental reserves 1,453 1,533 Accrued product replacement costs 477 1,835 Other accrued expenses 5,957 6,745 $ 16,454 $ 18,324 |
Schedule of Other Liabilities (Long-term) | The balance in Other Liabilities September 30, December 31, 2020 2019 Lease guarantee contingency $ — $ 10,724 Environmental reserves 6,760 6,658 Supplemental executive retirement plan liability 1,542 1,776 Pension liability 875 956 Other long-term liabilities 3,756 2,468 $ 12,933 $ 22,582 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
The change in goodwill | The change in goodwill for the nine months ended September 30, 2020 Distribution Material Handling Total January 1, 2020 $ 7,716 $ 59,058 $ 66,774 Purchase accounting adjustment (68 ) — (68 ) Foreign currency translation — (286 ) (286 ) September 30, 2020 $ 7,648 $ 58,772 $ 66,420 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Weighted average number of common shares outstanding during the period | Net income per common share, as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average common shares outstanding basic 35,796,247 35,495,157 35,764,822 35,451,980 Dilutive effect of stock options and restricted stock 146,882 263,875 173,364 371,251 Weighted average common shares outstanding diluted 35,943,129 35,759,032 35,938,186 35,823,231 |
Long-Term Debt and Loan Agree_2
Long-Term Debt and Loan Agreements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt consisted of the following: September 30, December 31, 2020 2019 Loan Agreement $ — $ — 4.67% Senior Unsecured Notes due January 15, 2021 40,000 40,000 5.25% Senior Unsecured Notes due January 15, 2024 11,000 11,000 5.30% Senior Unsecured Notes due January 15, 2024 15,000 15,000 5.45% Senior Unsecured Notes due January 15, 2026 12,000 12,000 78,000 78,000 Less unamortized deferred financing costs 524 824 77,476 77,176 Less current portion long-term debt 39,975 — Long-term debt $ 37,501 $ 77,176 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Net periodic pension cost | Net periodic pension cost is as follows: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Interest cost $ 48 $ 60 $ 144 $ 180 Expected return on assets (51 ) (46 ) (153 ) (138 ) Amortization of net loss 20 24 60 72 Net periodic pension cost $ 17 $ 38 $ 51 $ 114 |
Leases (Table)
Leases (Table) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Balances Included in Condensed Consolidated Statement of Financial Position (Unaudited) Related to Leases | Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include: September 30, December 31, 2020 2019 Right of use asset - operating leases $ 4,935 $ 5,901 Operating lease liability - short-term $ 1,786 $ 2,057 Operating lease liability - long-term 3,365 4,074 Total operating lease liabilities $ 5,151 $ 6,131 |
Schedule of Lease Expense | The components of lease expense include: For the Quarter Ended September 30, For the Nine Months Ended September 30, Lease Cost Classification 2020 2019 2020 2019 Operating lease cost (1) Cost of sales $ 392 $ 453 $ 1,226 $ 1,310 Operating lease cost (1) Selling, general and administrative expenses 396 441 1,264 1,338 Total lease cost $ 788 $ 894 $ 2,490 $ 2,648 (1) Includes short-term leases and variable lease costs, which are immaterial |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: For the Nine Months Ended September 30, Supplemental Cash Flow Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,877 $ 1,808 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 701 $ 2,029 Lease Term and Discount Rate September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years): Operating leases 3.81 4.23 Weighted-average discount rate: Operating leases 5.0 % 5.0 % |
Maturity of Operating Lease Lease Liabilities | Maturity of Lease Liabilities - As of September 30, 2020 Operating Leases 2020 (1) $ 568 2021 1,782 2022 1,312 2023 1,038 2024 339 After 2024 621 Total lease payments 5,660 Less: Interest (509 ) Present value of lease liabilities $ 5,151 (1) Represents amounts due in 2020 after September 30, 2020 |
Industry Segments (Tables)
Industry Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reporting Information by Segment | Summarized segment detail for the quarters and nine months ended September 30, 2020 and 2019 are presented in the following table: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Net Sales Material Handling $ 86,769 $ 84,110 $ 251,700 $ 282,963 Distribution 45,517 41,388 121,253 115,957 Inter-company sales (28 ) (18 ) (51 ) (40 ) Total net sales $ 132,258 $ 125,480 $ 372,902 $ 398,880 Operating income Material Handling (1) $ 15,593 $ 10,385 $ 46,556 $ 44,181 Distribution 5,091 3,382 8,577 6,923 Corporate (1) (2) (3) (7,544 ) (5,707 ) (6,439 ) (22,644 ) Total operating income 13,140 8,060 48,694 28,460 Interest expense, net (1,204 ) (993 ) (3,467 ) (3,059 ) Income from continuing operations before income taxes $ 11,936 $ 7,067 $ 45,227 $ 25,401 (1) In the quarter and nine months ended September 30, 2020, the Company incurred $2.4 million of executive severance charges, of which $1.5 million is included in Corporate and $0.9 million is included in Material Handling. This executive severance cost includes $1.8 million of severance and benefits and $0.6 million of charges for acceleration of stock compensaton. (2) In the nine months ended September 30, 2020, the Company recognized in Corporate a $11.9 million gain on the sale of notes receivable as described in Note 5. (3) In the nine months ended September 30, 2019, the Company recognized in Corporate a $4.0 million environmental charge as described in Note 12. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020USD ($)DiscontinuedOperation | Sep. 30, 2020USD ($)DiscontinuedOperation | Dec. 31, 2019USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of discontinued operations | DiscontinuedOperation | 0 | 0 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Less unamortized deferred financing fees [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Notes payable, fair value disclosure | $ | $ 80.3 | $ 80.3 | $ 79 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 181,695 | $ 162,410 | $ 166,682 | $ 154,638 |
Total other comprehensive income (loss) | 611 | (466) | (924) | 1,069 |
Ending balance | 187,598 | 163,820 | 187,598 | 163,820 |
Foreign Currency [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (16,137) | (14,716) | (14,602) | (16,251) |
Other comprehensive income (loss) before reclassifications | 611 | (466) | (924) | 1,069 |
Total other comprehensive income (loss) | 611 | (466) | (924) | 1,069 |
Ending balance | (15,526) | (15,182) | (15,526) | (15,182) |
Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,747) | (2,029) | (1,747) | (2,029) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending balance | (1,747) | (2,029) | (1,747) | (2,029) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (17,884) | (16,745) | (16,349) | (18,280) |
Other comprehensive income (loss) before reclassifications | 611 | (466) | (924) | 1,069 |
Total other comprehensive income (loss) | 611 | (466) | (924) | 1,069 |
Ending balance | $ (17,273) | $ (17,211) | $ (17,273) | $ (17,211) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Change in Allowance for Credit Losses (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounts Receivable Net [Abstract] | |
Balance at January 1 | $ 1,356 |
Provision for expected credit loss, net of recoveries | 879 |
Write-offs and other | (324) |
Balance at September 30 | $ 1,911 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Major Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 132,258 | $ 125,480 | $ 372,902 | $ 398,880 |
Consumer [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 26,865 | 19,205 | 78,363 | 59,505 |
Vehicle [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 19,715 | 21,951 | 49,840 | 66,433 |
Food and Beverage [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 11,882 | 13,010 | 38,373 | 54,977 |
Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 28,279 | 29,926 | 85,073 | 102,008 |
Auto Aftermarket [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 45,517 | 41,388 | 121,253 | 115,957 |
Operating Segments [Member] | Material Handling [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 86,769 | 84,110 | 251,700 | 282,963 |
Operating Segments [Member] | Material Handling [Member] | Consumer [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 26,865 | 19,205 | 78,363 | 59,505 |
Operating Segments [Member] | Material Handling [Member] | Vehicle [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 19,715 | 21,951 | 49,840 | 66,433 |
Operating Segments [Member] | Material Handling [Member] | Food and Beverage [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 11,882 | 13,010 | 38,373 | 54,977 |
Operating Segments [Member] | Material Handling [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 28,307 | 29,944 | 85,124 | 102,048 |
Operating Segments [Member] | Distribution [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 45,517 | 41,388 | 121,253 | 115,957 |
Operating Segments [Member] | Distribution [Member] | Auto Aftermarket [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 45,517 | 41,388 | 121,253 | 115,957 |
Inter-company [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | (28) | (18) | (51) | (40) |
Inter-company [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ (28) | $ (18) | $ (51) | $ (40) |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Balances included in Condensed Consolidated Statements of Financial Position (Unaudited) Related to Revenue Recognition (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Receivable [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Returns, discounts and other allowances | $ (1,043) | $ (589) |
Inventories, net [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Right of return asset | 379 | 312 |
Other Current Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Customer deposits | (142) | (269) |
Accrued rebates | $ (2,620) | $ (2,349) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Type of Cost, Good or Service [Extensible List] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Cost of sales | $ 85,191 | $ 85,894 | $ 240,779 | $ 266,799 |
Selling, General and Administrative Expenses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Cost of sales | 2,200 | 2,000 | 5,500 | 6,200 |
Cost of Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Cost of sales | $ 1,700 | $ 1,300 | $ 4,600 | $ 4,300 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - Tuffy Manufacturing Industries, Inc. [Member] $ in Millions | Aug. 26, 2019USD ($) |
Business Acquisition [Line Items] | |
Purchase price of acquisition | $ 18.7 |
Estimated working capital adjustment | $ 0.7 |
Acquisition - Summary of Alloca
Acquisition - Summary of Allocation of Purchase Price Based on Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Aug. 26, 2019 |
Assets acquired: | |||
Goodwill | $ 66,420 | $ 66,774 | |
Tuffy Manufacturing Industries, Inc. [Member] | |||
Assets acquired: | |||
Accounts receivable | $ 2,105 | ||
Inventories | 2,719 | ||
Prepaid expenses | 43 | ||
Property, plant and equipment | 124 | ||
Right of use asset - operating leases | 229 | ||
Intangible assets | 8,400 | ||
Goodwill | 7,143 | ||
Assets acquired | 20,763 | ||
Liabilities assumed: | |||
Accounts payable | 1,675 | ||
Accrued expenses | 143 | ||
Operating lease liability - short term | 112 | ||
Operating lease liability - long term | 117 | ||
Total liabilities assumed | 2,047 | ||
Net acquisition cost | $ 18,716 |
Acquisition - Summary of Intang
Acquisition - Summary of Intangible Assets (Details) - Tuffy Manufacturing Industries, Inc. [Member] $ in Thousands | Aug. 26, 2019USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Total amortizable intangible assets, Fair value | $ 8,400 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Total amortizable intangible assets, Fair value | $ 7,300 |
Weighted Average Estimated Useful Life | 7 years 3 months 18 days |
Trade Name [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Total amortizable intangible assets, Fair value | $ 500 |
Weighted Average Estimated Useful Life | 5 years |
Non-competition Agreements [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Total amortizable intangible assets, Fair value | $ 600 |
Weighted Average Estimated Useful Life | 5 years |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Long Lived Assets Held For Sale [Line Items] | ||||||
Net proceeds from sale of building | $ 7,400,000 | |||||
Impairment charges | $ 0 | $ 0 | $ 0 | $ 916,000 | ||
Level 2 [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Impairment charges | 0 | $ 0 | 0 | $ 900,000 | ||
Other Assets [Member] | ||||||
Long Lived Assets Held For Sale [Line Items] | ||||||
Building classified as held for sale | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 |
Settlement of Note Receivable_2
Settlement of Note Receivable and Lease Guarantee - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jan. 31, 2020 | Sep. 30, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | |
Settlement Of Note Receivable And Lease Guarantee [Line Items] | ||||
Provision for loss on note receivable | $ 879 | |||
Lease guarantee contingency | $ 10,724 | |||
Lawn and Garden Indemnification Claim [Member] | Guarantee Obligation [Member] | ||||
Settlement Of Note Receivable And Lease Guarantee [Line Items] | ||||
Lease expiring period | September 2025 | |||
Annual rent | $ 2,000 | |||
Liabilities and related pre tax charges | $ 10,300 | |||
Lease guarantee contingency | $ 10,700 | |||
Sale of fully reserved promissory notes and related accrued interest receivable | $ 1,200 | |||
Pre-tax gain on sale of notes receivable | $ 11,900 | |||
Lawn and Garden Business [Member] | ||||
Settlement Of Note Receivable And Lease Guarantee [Line Items] | ||||
Provision for loss on note receivable | $ 23,000 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 865,000 | |
Ameri-Kart [Member] | Scenario Forecast [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Expected restructuring charges | $ 1,100,000 |
Restructuring - Summary of Char
Restructuring - Summary of Charges for Restructuring Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 865,000 |
Cost of Sales [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
SG&A [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 865,000 | ||
Distribution [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 865,000 | ||
Distribution [Member] | Cost of Sales [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
Distribution [Member] | SG&A [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 865,000 | ||
Material Handling [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
Material Handling [Member] | Cost of Sales [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | ||
Material Handling [Member] | SG&A [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 0 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Inventories | ||||
Percentage of LIFO Inventory | 50.00% | 50.00% | ||
LIFO inventories, change in cost of sales | $ 0 | $ 0 | $ 0 | $ (300,000) |
Inventories - Summary of Determ
Inventories - Summary of Determination Cost of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished and in-process products | $ 34,035 | $ 32,537 |
Raw materials and supplies | 14,102 | 11,723 |
Inventory net | $ 48,137 | $ 44,260 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Customer deposits and accrued rebates | $ 2,762 | $ 2,618 |
Dividends payable | 5,196 | 5,114 |
Accrued litigation, claims and professional fees | 609 | 479 |
Current portion of environmental reserves | 1,453 | 1,533 |
Accrued product replacement costs | 477 | 1,835 |
Other accrued expenses | 5,957 | 6,745 |
Other current liabilities, Total | $ 16,454 | $ 18,324 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Other Liabilities Disclosure [Line Items] | |||
Accrued product replacement costs | $ 477 | $ 1,835 | |
Material Handling [Member] | |||
Other Liabilities Disclosure [Line Items] | |||
Product replacement costs | $ 3,500 | ||
Accrued product replacement costs | 500 | ||
Minimum [Member] | Material Handling [Member] | |||
Other Liabilities Disclosure [Line Items] | |||
Product replacement costs | 3,500 | ||
Maximum [Member] | Material Handling [Member] | |||
Other Liabilities Disclosure [Line Items] | |||
Product replacement costs | $ 4,000 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Other Liabilities (Long-term) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Lease guarantee contingency | $ 10,724 | |
Environmental reserves | $ 6,760 | 6,658 |
Supplemental executive retirement plan liability | 1,542 | 1,776 |
Pension liability | 875 | 956 |
Other long-term liabilities | 3,756 | 2,468 |
Other liabilities (long-term), Total | $ 12,933 | $ 22,582 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Change in Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 66,774 |
Purchase accounting adjustment | (68) |
Foreign currency translation | (286) |
Ending balance | 66,420 |
Distribution [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 7,716 |
Purchase accounting adjustment | (68) |
Foreign currency translation | 0 |
Ending balance | 7,648 |
Material Handling [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 59,058 |
Purchase accounting adjustment | 0 |
Foreign currency translation | (286) |
Ending balance | $ 58,772 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Trade Names [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Carrying value of indefinite-lived intangible assets | $ 9.8 | $ 9.8 |
Net Income per Common Share (De
Net Income per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding basic | 35,796,247 | 35,495,157 | 35,764,822 | 35,451,980 |
Dilutive effect of stock options and restricted stock (in shares) | 146,882 | 263,875 | 173,364 | 371,251 |
Weighted average common shares outstanding diluted (in shares) | 35,943,129 | 35,759,032 | 35,938,186 | 35,823,231 |
Net Income per Common Share - A
Net Income per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from computation of net earnings or loss per common share | 607,123 | 638,073 | 435,998 | 631,300 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 1.4 | $ 1.1 | $ 2.8 | $ 3.3 |
Total unrecognized compensation cost related to non-vested share based compensation arrangements | 4.8 | $ 4.8 | ||
Unrecognized compensation cost period for recognition | 3 years | |||
Executive Severances [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, award accelerated cost | $ 0.6 | $ 0.6 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of expiration, term | 10 years | |||
2017 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for grant under plan (in shares) | 5,126,950 | 5,126,950 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 108 Months Ended | |||||||
Jan. 31, 2019 | Apr. 30, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2005 | Sep. 30, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, Loss in period | $ 4,000,000 | |||||||||||
Other current liabilities | $ 16,454,000 | $ 16,454,000 | $ 16,454,000 | $ 18,324,000 | ||||||||
Other liabilities | 12,933,000 | 12,933,000 | 12,933,000 | $ 22,582,000 | ||||||||
New Idria Mercury Mine [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Financial assurance required to be provided to EPA to secure performance | $ 2,000,000 | |||||||||||
Prepayment amount | $ 200,000 | |||||||||||
Loss contingency, Loss in period | $ 0 | |||||||||||
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member] | Natural Resource Damage Claim [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Total reserve | 1,500,000 | 1,500,000 | 1,500,000 | |||||||||
Other current liabilities | 300,000 | 300,000 | 300,000 | |||||||||
Other liabilities | 1,200,000 | 1,200,000 | 1,200,000 | |||||||||
Expense recognized | 0 | $ 0 | 0 | 0 | $ 1,200,000 | $ 800,000 | ||||||
Accrued balance | 500,000 | |||||||||||
Original estimated project costs | $ 1,600,000 | |||||||||||
Revised estimated project costs, Low Estimate | 3,300,000 | |||||||||||
Revised estimated project costs, High Estimate | $ 4,400,000 | |||||||||||
Pending Litigation [Member] | New Idria Mercury Mine [Member] | EPA Notice Letter [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingencies, payments | 3,200,000 | |||||||||||
Loss contingency, Loss in period | 0 | $ 4,000,000 | 0 | $ 4,000,000 | 9,900,000 | |||||||
Total reserve | 6,700,000 | 6,700,000 | 6,700,000 | |||||||||
Other current liabilities | 1,100,000 | 1,100,000 | 1,100,000 | |||||||||
Other liabilities | $ 5,600,000 | $ 5,600,000 | $ 5,600,000 |
Long-Term Debt and Loan Agree_3
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 78,000 | $ 78,000 |
Less unamortized deferred financing fees | 524 | 824 |
Long-term Debt, net of deferred financing costs | 77,476 | 77,176 |
Less current portion long-term debt | 39,975 | 0 |
Long-term debt | 37,501 | 77,176 |
4.67% Senior Unsecured Notes due January 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 40,000 | 40,000 |
5.25% Senior Unsecured Notes due January 15, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 11,000 | 11,000 |
5.30% Senior Unsecured Notes due January 15, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 15,000 | 15,000 |
5.45% Senior Unsecured Notes due January 15, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 12,000 | $ 12,000 |
Long-Term Debt and Loan Agree_4
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2020 | |
4.67% Senior Unsecured Notes due January 15, 2021 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 4.67% |
Debt instrument maturity date | Jan. 15, 2021 |
5.25% Senior Unsecured Notes due January 15, 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 5.25% |
Debt instrument maturity date | Jan. 15, 2024 |
5.30% Senior Unsecured Notes due January 15, 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 5.30% |
Debt instrument maturity date | Jan. 15, 2024 |
5.45% Senior Unsecured Notes due January 15, 2026 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 5.45% |
Debt instrument maturity date | Jan. 15, 2026 |
Long-Term Debt and Loan Agree_5
Long-Term Debt and Loan Agreements - Additional Information (Details) - USD ($) | May 30, 2014 | Mar. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 78,000,000 | $ 78,000,000 | $ 78,000,000 | ||||
Long-term Debt | $ 37,501,000 | $ 37,501,000 | $ 77,176,000 | ||||
Weighted average interest rate during period | 6.28% | 6.28% | 6.27% | 6.26% | |||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 11,000,000 | $ 11,000,000 | |||||
Interest rate | 4.67% | 4.67% | |||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 40,000,000 | $ 40,000,000 | |||||
Interest rate | 5.45% | 5.45% | |||||
Senior Unsecured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 78,000,000 | $ 78,000,000 | |||||
Loan Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity on line of credit | $ 200,000,000 | ||||||
Loan maturity period | 2018-12 | 2022-03 | |||||
Remaining amount available under the line of credit | 194,200,000 | 194,200,000 | |||||
Letters of credit | $ 5,800,000 | 5,800,000 | |||||
Loan Agreement [Member] | EPA [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Financial assurance required to be provided | $ 2,000,000 |
Retirement Plans - Net Periodic
Retirement Plans - Net Periodic Pension Cost (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 48 | $ 60 | $ 144 | $ 180 |
Expected return on assets | (51) | (46) | (153) | (138) |
Amortization of net loss | 20 | 24 | 60 | 72 |
Net periodic pension cost | $ 17 | $ 38 | $ 51 | $ 114 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Contributions to plan | $ 150 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||||
Effective tax rate for the year | 27.20% | 26.20% | 25.30% | 27.30% | |
Unrecognized tax benefits that would impact effective tax rate | $ 1.1 | $ 1.1 | $ 1.1 | ||
Income tax examination, description | The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of September 30, 2020, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015. | ||||
State and Local [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax examination for tax years | 2015 2016 2017 2018 | ||||
Non-U.S [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax examination for tax years | 2015 2016 2017 2018 2019 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Sep. 30, 2020 | |
Lessee Lease Description [Line Items] | ||
Operating lease, existence of option to extend | true | |
Operating lease, option to extend | Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. | |
Lessee, operating lease, renewal term | 5 years | |
Operating lease, existence of option to terminate | true | |
Operating lease, option to terminate | Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. | |
Total expected future minimum lease payments | $ 1,782 | |
Indiana [Member] | Manufacturing and Distribution [Member] | ||
Lessee Lease Description [Line Items] | ||
Facility lease period | 15 years | |
Base annual rent, first year | $ 800 | |
Total expected future minimum lease payments | 13,500 | |
Increase in assets and liabilities | $ 9,000 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Facility lease period | 1 year | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Facility lease period | 7 years |
Leases - Summary of Amounts Inc
Leases - Summary of Amounts Included in the Condensed Consolidated Statement of Financial Position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets And Liabilities Lessee [Abstract] | ||
Right of use asset - operating leases | $ 4,935 | $ 5,901 |
Operating lease liability - short-term | 1,786 | 2,057 |
Operating lease liability - long-term | 3,365 | 4,074 |
Total operating lease liabilities | $ 5,151 | $ 6,131 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee Lease Description [Line Items] | ||||
Total lease cost | $ 788 | $ 894 | $ 2,490 | $ 2,648 |
Cost of Sales [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Total lease cost | 392 | 453 | 1,226 | 1,310 |
SG&A [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Total lease cost | $ 396 | $ 441 | $ 1,264 | $ 1,338 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,877 | $ 1,808 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 701 | $ 2,029 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term (years), operating leases | 3 years 9 months 21 days | 4 years 2 months 23 days |
Weighted-average discount rate, operating leases | 5.00% | 5.00% |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2020 | $ 568 | |
2021 | 1,782 | |
2022 | 1,312 | |
2023 | 1,038 | |
2024 | 339 | |
After 2024 | 621 | |
Total lease payments | 5,660 | |
Less: Interest | (509) | |
Present value of lease liabilities | $ 5,151 | $ 6,131 |
Industry Segments - Additional
Industry Segments - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Net sales | $ 132,258 | $ 125,480 | $ 372,902 | $ 398,880 |
Foreign Countries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 9,800 | $ 8,600 | $ 28,000 | $ 32,800 |
Industry Segments - Schedule of
Industry Segments - Schedule of reporting information by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 132,258 | $ 125,480 | $ 372,902 | $ 398,880 |
Total operating income | 13,140 | 8,060 | 48,694 | 28,460 |
Interest expense, net | (1,204) | (993) | (3,467) | (3,059) |
Income from continuing operations before income taxes | 11,936 | 7,067 | 45,227 | 25,401 |
Operating Segments [Member] | Material Handling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 86,769 | 84,110 | 251,700 | 282,963 |
Total operating income | 15,593 | 10,385 | 46,556 | 44,181 |
Operating Segments [Member] | Distribution [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,517 | 41,388 | 121,253 | 115,957 |
Total operating income | 5,091 | 3,382 | 8,577 | 6,923 |
Inter-company sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (28) | (18) | (51) | (40) |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income | $ (7,544) | $ (5,707) | $ (6,439) | $ (22,644) |
Industry Segments - Schedule _2
Industry Segments - Schedule of reporting information by segment (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Executive severance charges | $ 2,400 | $ 2,400 | ||
Gain on sale of notes receivable | 0 | $ 0 | 11,924 | $ 0 |
Environmental charge | $ 4,000 | |||
Executive Severances [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Severance and benefit | 1,800 | 1,800 | ||
Share-based payment arrangement, award accelerated cost | 600 | 600 | ||
Material Handling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Executive severance charges | 900 | 900 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Executive severance charges | $ 1,500 | $ 1,500 |